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Mayoral Race Heats Up As Election Draws Near

The week started off with Republican City Councilman Carl DeMaio slamming his opponent, Democratic Congressman Bob Filner, for saying the city should take out bonds to pay off the pension debt.

"Taking out another credit card to stretch out payments on the city's pension debt and racking up hundreds of millions in additional interest is exactly the kind of risky move that got City Hall into the pension mess to begin with,'' DeMaio said.

In response, Filner said he had dropped his pension bond plan already.

The idea is no longer necessary, thanks to savings from a five-year freeze on the type of pay city workers can use to later calculate their pension payouts, Filner said. That's one of the provisions -- called "pensionable pay'' -- in Proposition B that has yet to be implemented.

"These people apparently haven't been following the campaign,'' Filner said. "Two months ago I committed to implementing the five-year pensionable pay freeze -- a provision only I can implement through collective bargaining -- which will reduce the city's unfunded pension liability by nearly $1 billion, and which eliminated the need to consider pension obligation bonds.''

Additionally, Filner said DeMaio backed the bond idea in 2004 in a newspaper commentary on how to fix the city’s finances.

DeMaio has also hit Filner for accepting more than $38,000 in free trips to places such as Paris, Istanbul and Vietnam during his time in Congress. In a statement, DeMaio said he would not take such trips.

“From day one in office I have self-imposed a voluntary gift ban on myself and my City Council staff,” said DeMaio. “Bob Filner is in the pocket of special interests that have provided him with free travel junkets across the globe. I have not, and as mayor, I will not accept gift travel from special interests.”

But Filner defends the trips. In a statement, he said many were related to his position as chairman of the House Veterans Affairs committee.

“So, I plead guilty to doing my job as a congressman, informing myself about world issues, building relationships with world leaders and fighting for human rights. All of which strengthens my ability to be mayor,” he said. “It's ironic that at the very time DeMaio was holding his press conference criticizing me for addressing global issues, I was with the president of Mexico, Felipe Calderon, at an important international conference in Tijuana.”

In the meantime, Filner has launched a television ad linking DeMaio to developer and U-T San Diego owner Doug Manchester.

Filner and DeMaio will get plenty of chances to level their charges at one another. They have at least a dozen debates scheduled through the end of October.

Comments

Avatar for user 'laplayaheritage'

laplayaheritage | October 12, 2012 at 7:05 p.m. ― 1 year, 11 months ago

http://www.sandiegopolitico.com/2012/10/carl-demaio-changes-his-position-on.html

CARL DEMAIO CHANGES HIS POSITION ON PENSION OBLIGATION BONDS
DEMAIO WAS FOR THEM BEFORE HE WAS AGAINST THEM
This week, Carl DeMaio attacked Bob Filner for supporting pension obligation bonds to reduce the City’s unfunded pension liability, despite the fact that Filner has repeatedly stated that such bonds are no longer necessary because of nearly $1 billion in reduced pension obligations as a result of a 5-year freeze on pensionable pay which he has committed to implement.

Today, it was revealed that DeMaio himself endorsed the use of pension obligation bonds to reduce the City’s unfunded liability.

In a news conference on Monday, DeMaio denounced pension obligation bonds: “Taking out another credit card to stretch out payments on the City’s pension debt and racking up hundreds of millions in additional interest is exactly the kind of risky move that got City Hall into the pension mess to begin with.” - Carl DeMaio
Source: DeMaio news conference, KPBS, October 8, 2012

But in a 2004 Union-Tribune commentary authored by DeMaio, he expressed support for pension obligation bonds as one measure to address the City's unfunded pension liability:

"After creating an independent Pension Reform Committee to provide advice on reforms, city leaders have severely watered down the panel's recommendations…
Combined with the anticipated sale of pension obligation bonds, these reforms would put the pension fund back on firm footing."

Source: San Diego Union-Tribune, August 13, 2004

In a 2004 report from DeMaio's Performance Instititute (funded by U-T San Diego publisher Doug Manchester), DeMaio offered a blanket endorsement of the reforms proposed by the City's Pension Reform Committee, which included issuance of $600 million in pension obligation bonds to address the City's unfunded pension liabilities:

"The City's Pension Reform Committee has been meeting and deliberating over a series of reforms to the Pension System. Based on the minutes and votes from the meetings of the Committee, the San Diego Citizens' Budget Plan offers a blanket endorsement of their reforms - likely to be presented before the City Council on June 29, 2004…

“…The Pension Reform Committee will likely propose that the City use Pension Obligation Bonds (POBs) to address the current liability in the Pension Fund. The current proposal is to issue a $200 million POB this year, and instruct the City Manager to find an additional $200 million in FY 2006 and $200 million in FY 2007." (pg. 21)

Source: San Diego Citizens' Budget Plan, The Performance Institute, 2004

“This is just one example of the overwhelming hypocrisy and dishonesty with which DeMaio approaches this election,” said Filner. "DeMaio himself supported these bonds when he was fronting for Doug Manchester, but now he’s attacking me for previously supporting them. Apparently, DeMaio has no shame and no memory.”

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