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City Workers Rally For Pension Funds

Mayor, Council Members Blamed For Deficit

POSTED: 4:10 pm PDT September 21, 2004
UPDATED: 4:33 pm PDT September 21, 2004

In an effort to fight for their retirement benefits, members of San Diego's Municipal Employees Association rallied Tuesday outside city hall, 10News reported.

"I will not take for one minute that this city cannot afford to pay our retirement. We bargained it. They owe it (to us). It is your vested right as a city employee. They can figure out a way to pay it," said Judie Italiano, the president of San Diego's Municipal Employees Association.

The city's pension and health benefit deficit now stands at almost $2 billion. The debt is at the center of investigations by the FBI, the U.S. Attorney's Office and the Securities and Exchange Commission.

A commission appointed to look into the problem blames the extremely generous benefits package and the city's annual raids on the pension fund to balance its books. The Performance Institute, a San Diego non-profit think tank, said city officials played a shell game with retiree benefits and promised too much.

Performance Institute President Carl Demaio said, "Why did you not make your full payment to pay these people's benefits to secure their retirement? Why did you not do that? The answer is you did not have a structurally sound budget. You were robbing Peter to pay Paul."

Sixth District council member Donna Frye told city workers their pension plan is only part of the problem. She said it goes back to 1996 when promises were made to build a new ballpark, and developers were given subsidies while they increased the demand on services, with no increases in revenue to the city general fund.

Several San Diegans blame Mayor Dick Murphy and the council members, with the exception of Frye, for the city's financial downfall.

San Diegan Phil Hart said, "I'm sad to say it, but I believe I have to say it. As a group you have been fiscally irresponsible."

To view the San Diego's Pension Reform Committee's final report, visit www.sandiego.gov/pensionreform/pdf/finalreport.pdf.

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