County inept with control of its budget

http://www.contracostatimes.com/mld/cctimes/news/editorial/letters/13819415.htm

The inability of Contra Costa County to control pension costs requires drastic action. In 2001-02, county pension expenses were $53.8 million (Times, July 9). The county "will pay $200 million next year" (Times, Jan. 26).

To get fiscal control of pensions, the county must push hard on three fronts.

First, the county must lobby California to change state pension laws, which currently prohibit counties and cities from switching to cheaper retirement plans.

Second, the county must forcefully tell its labor unions that it will declare bankruptcy if it does not get needed cost concessions. Bankruptcy will allow the county to void existing labor contracts.

Third, the county must immediately prepare a 2006-07 budget that is balanced and does not raise taxes. This kind of budget is likely to eliminate hundreds of jobs and slash services.

To make up for lost services, the county should contract with private-sector firms. These firms are better at raising capital, computerizing and terminating inept workers.

Also, private employers use market conditions to set wages. Governments often use other criteria to set pay, and the result is excessive compensation.

Privatization means getting more work done at a lower price.

Richard S. Colman

Orinda