Feds to CA: Reform Pensions and WE Cut Your Transportation $$

The Federal government has regulations in re: pensions that could close down government transportation systems. At first blush, this is terrible. Actually this is a real opportunity for lower taxes, better services and transportations systems based on needs, not unions or special interests.

“In all, the feds are blocking $1 billion or more promised to state transit agencies.

At the heart of the dispute is a 1964 law that says, in essence, transit workers can’t be subject to state pension reform because it violates their collective bargaining rights. California enacted pension reform in 2012, and the lawsuit began.

A San Francisco Chronicle editorial explains: a federal judge ruled U.S. Labor Secretary Tom Perez was “arbitrary and capricious” in trying to use that ‘64 law to block transit funds – transit workers are the only ones covered by this particular federal law – but the labor department announced in February it would appeal that ruling, and here we are.”

So, if we reform the pension systems, to keep the doors open and checks continue to flow, the Feds refuse to give money for wasteful, union controlled government transportation. This is actually good news for all citizens—pensions need to be protected and transportation needs to be based on individuals, not special interests.

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An insane federal stance on pension reform threatens to screw MST riders.

by Mary Duan, Monterey County Weekly, 4/23/15

For years now – so many, she says, she doesn’t even remember how many – Salinas resident Adeline Coch has stepped onto the Line 41 Monterey-Salinas Transit bus every workday at 5:30am. She transfers to the 21 to Pebble Beach, then to the 24 to Carmel Valley to reach her job at the Crossroads by 7:30am.

“It’s the only transportation I have,” she says. “I don’t have any other means.”

And if the federal government doesn’t get its act together and release its death grip on funding for MST and other state transit agencies, Coch and thousands of riders like her are going to be out of luck. And possibly out of work, because if you can’t get to your job, it probably won’t be long until you no longer have a job.

Ironic when you consider the problem lays at the feet of the U.S. Department of Labor. What MST and its riders face isn’t an unmitigated disaster yet, but if something doesn’t happen by May 16, it will be.

Due to a pension dispute that’s pitted the state of California against the Department of Labor, MST may be forced to eliminate some bus lines altogether, reduce service on many others and lay off up to 70 employees – including drivers, mechanics and bus cleaners – because they’ve run out of cash.

The money is there, in the feds’ hands. But they’re holding on to it. MST is owed $4.5 million so far (for expenditures that have accrued since July 1, 2014), with another $2.3 million that’s supposed to be coming. Together, the $6.8 million amounts to 20 percent of the agency’s budget. MST has been dipping into its capital reserve to bridge the cash flow gap, but there’s only about $2 million left in that reserve.

In all, the feds are blocking $1 billion or more promised to state transit agencies.

At the heart of the dispute is a 1964 law that says, in essence, transit workers can’t be subject to state pension reform because it violates their collective bargaining rights. California enacted pension reform in 2012, and the lawsuit began.

A San Francisco Chronicle editorial explains: a federal judge ruled U.S. Labor Secretary Tom Perez was “arbitrary and capricious” in trying to use that ‘64 law to block transit funds – transit workers are the only ones covered by this particular federal law – but the labor department announced in February it would appeal that ruling, and here we are.

It’s not MST’s fault. It’s not your bus driver’s fault. MST Executive Director Carl Sedoryk tells me he believes special interests are pressuring officials at the federal level with the fear that pension reform is going to spread throughout the East Coast.

MST held the first of four public meetings April 20 to explain the possible cuts. They include getting rid of service from the Peninsula to Big Sur, axing line 11 from Carmel to Sand City and stopping evening service on lines 20 and 21 past 7:40pm. Other lines will go to hourly service during the day. (For a complete outline of what’s what, visit www.mst.org.)

Lines funded by Measure Q, the sales tax measure voters passed in 2014 to ensure service for military veterans, senior citizens and the disabled, ostensibly won’t be impacted. But speaker Sara Jen pointed out at the April 20 meeting that many riders of the East Alisal line 41 live in group homes and use the bus to get to jobs obtained through Hope Services. Line 41, which currently runs every 15 minutes, will go to hourly frequency if the cuts happen.

The Salinas meeting wasn’t terribly well-attended. About a half-dozen people who use public transit were there, along with Salinas Councilman Tony Barrera, vice chair of the MST Board, and William “Bob” Parks, the MST driver who picks Coch up every morning at 5:30.

Parks is also head of the local Amalgamated Transit Workers union. He says he thinks some sort of truce will be reached in the next two weeks. But there’s not much time: The MST board meets next May 11. It’s then they’ll be forced to pull the trigger on cuts and layoffs effective May 16.

In all, about 6,000 riders will be impacted if the cuts happen.

“We have 4.5 million passenger boardings a year, and this is half the service,” Sedoryk says. “About 70 percent do not have a car or driver’s license. It’s impacting some of the most vulnerable members of our community.”

 

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

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