by Joe Haraburda, President, Oakland Chamber of Commerce
Oakland’s current budget crisis leaves two choices: (1) Cut police department staff OR (2) Cut city staff compensation level. Neither is desirable or even palatable, and yet one or the other will need to happen in the near term in order for the city to balance it’s budget – which it is required to do by law.
The Oakland Metropolitan Chamber of Commerce says NO to cutting cops. This is just not an option. We have fought for so long to get police staffing levels where they are. We are just now seeing the fruit of our efforts.
But how can the city afford to keep them when it is looking at a $43 million budget gap this year and another gap of $78 million next year?
It’s time for rolling back compensation (and some programming) levels to where they were in 2004. Rising pension, healthcare, and other benefit costs have helped drive this. It’s time to pare back these benefits that the city can no longer afford.
- Roll back compensation levels (and programs where possible) to 2004 levels (averting more layoffs and cuts to essential services);
- Implement a two-tiered pension system by which new employees do not receive defined benefits, but rather more typical 401(K)s;
- Raise the minimum retirement age to 65;
- Modify retiree benefits including possibly disallowing health benefits for new retirees;
- Ensure city employees pay their fair share into their own retirement contributions. Police personnel should be asked to contribute to their own retirement just like other city personnel do;
- Develop a strategy for dealing with the city’s unfounded pension liabilities without pushing the problem off into the future.
Will this require our city’s leadership to collaborate with our public sector unions on a solution? Yes. But we know that keeping folks on the job and keeping kids and families safe are priorities the city, labor unions, and all of us share.
It’s time for the tough choices to be made. Call or email your elected leaders to let them know what you think!