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November 5th, 2013 Municipal Election Endorsements
By Gary Delagnes, POA Political Advisor
Proposition “A” is of extreme importance to every San Francisco city employee. This legislation, introduced by Supervisor Mark Farrell, will secure the Retiree Health Care Trust Fund for future generations and will do so without unfair and unaffordable increases in future health care rates.
San Francisco currently has a $4.4 billion unfunded liability for retiree health care and doesn’t have the money to pay for the health care needs of our future city retirees. This is as troubling as it is real because San Francisco’s unfunded liability is the third highest in the nation. Similar in scope to the pension problem that was addressed in Proposition “C” two years ago, this is an issue that is not to be swept under the rug. It needs to be proactively addressed.
Borrowing from the strategic success of the Prop C campaign, the POA has once again joined a coalition of San Francisco business, labor, and civic leaders to develop a forward-looking consensus plan designed retire the debt over the next 30 years. Joining the coalition has significantly broadened our base of influence and will demonstrate our willingness to work cooperatively with all concerned parties to reach an equitable solution to a looming catastrophic problem. The plan would be implemented with the passage of Prop A this November.
Supervisor Farrell’s amendment will effectively switch San Francisco from a pay-as-you-go system to a fully pre-funded system that will be funded into perpetuity in the next 30 years. It will cap San Francisco’s payroll expenses for healthcare costs at 10% of payroll so that city government can have a greater certainty in their budgeting process.
The legislation will also protect the Retiree Health Care Trust Fund (RHCTF) from the possibility of being “raided,” and will ensure that the RHCTF will do exactly what is was intended to do – pay for city employee retiree health care costs.
San Francisco has once again demonstrated vision and creativity in addressing the pension and health care issues that confront us. Supervisor Farrell has shown great leadership as we continue make the structural changes necessary to ensure the economic health and vitality of San Francisco for many years to come. Tell your family, friends, and neighbors to vote YES ON A!
