We hear from City Attorney Jan Goldsmith about the bankruptcy option and other reform ideas for a financially troubled San Diego.
Transcript
This is a rush transcript created by a contractor for KPBS to improve accessibility for the deaf and hard-of-hearing. Please refer to the media file as the formal record of this interview. Opinions expressed by guests during interviews reflect the guest’s individual views and do not necessarily represent those of KPBS staff, members or its sponsors.
SAN DIEGO'S PROTECTED DEFICIT IS MORE THAN $70 MILLION FOR NEXT YEAR. THE COST OF PAYING CITY WORKER PENSIONS THIS YEAR IS EXPECTED TO BE $255 MILLION. THE TOTAL CITY PENSION'S LIABILITY IS OVER $2 BILLION. VOTERS DECIDED THIS MONTH AGAINST A HALF CENT SALES TAX TO HELP THE BUDGET. FORMER CITY ATTORNEY RAISES BANKRUPTCY AGAIN. WE INVITED CURRENT CITY ATTORNEY JAN GOLD SMITH TO REFLECT ON THE IDEA AND OTHER SUGGESTS REFORMS. WELCOME.
PLEASURE TO BE HERE.
NOW THE VOTERS TURNED DOWN PROPOSITION D CAN WE STILL PROVIDE ESSENTIAL SERVICES TO THE PUBLIC?
YES. THE CITY HAS PLENTY OF OPTIONS. AND PLENTY OF POWER TO IMPLEMENT THOSE OPTIONS.
WE ARE NOT GOING TO HAVE TO CUT DOWN ON FIREFIGHTERS? AND POLICE? AND THREATEN CITY PUBLIC SAFETY?
ULTIMATE DECISION IS MADE BY THE POLICY MAKERS. THE ANSWER IS NO. WE ARE NOT GOING TO HAVE TO DO THAT. WE NEED A REASONABLE PLAN. WE NEED GOOD FAITH AND HONEST NEGOTIATIONS. ULTIMATELY THE WILL BY THE CITY TO IMPLEMENT. TOUGH DEFICITS. THERE ARE PLENTY OF OPTIONS SHORT OF DENYING THE CITY ESSENTIAL SERVICES.
WHAT I WANT DO IS GO THROUGH THE MAIN POINTS. HE BELIEVES THAT THE CITY NEED ASCII TEST FOR CHAPTER 9 REORGANIZATION FOR MUNICIPALITIES WHICH IS INSOLVENCY.
MICHAEL HAS NEVER BEEN KNOWN FOR ACCURACY AND LEGAL EVALUATION. WE SPENT CONSIDERABLE TIME ON DOING THINGS AND DOING THEM RIGHT. WE ARE WING LAWSUITS ON PENSIONS BECAUSE WE FOCUS ON THE LAW. THIS IDEA OF BANKRUPTCY TALK IS NONSENSE. NUMBER ONE THE CITY IS NOT CLOSE TO INSOLVENT. IT IS NOT QUALIFIED TO FILE. ORANGE COUNTY FILED BANKRUPTCY 16 YEARS AGO WHEN RATES WERE LESS. IT COST THE COUNTY OF ORANGE OVER A MILLION DOLLARS.
IS THAT WHY IT IS A BAD IDEA?
IT IS NOT EGREGIOUS. THEY DIDN'T CHANGE PENSIONS. THE THIRD IS WHAT MIKE AND OTHERS ARE PUSHING, THAT IS WE CAN FILE BANKRUPTCY AND QUICKLY THE PENSIONS GO AWAY. THAT'S NEVER HAPPENED THE HISTORY OF OUR COUNTRY. THERE HAS NEVER BEEN A REPORTED CASE. AS A MATTER OF FACT BEST INTENTIONS ARE PROTECTED ON THE CALIFORNIA CONSTITUTION. AND THE BANKRUPTCY LAW CHAPTER 9 SAYS THAT YOU ARE SUPPOSED TO RESPECT THE LAW AND RESPECT STATE'S RIGHTS. IT GETS US INTO A PROBLEM SPENDING YEARS IN THE SUPREME COURT.
YOU MENTIONED KARL, HE BROUGHT FORTH A SERIES OF REFORMS. I WOULD LIKE TO CHECK WHAT YOUR LEGAL REACTION IS TO A FEW OF THEM. ELIMINATING TAXPAYER FUNDED RETIREE HEALTHCARE FOR CURRENT CITY WORKERS?
THAT IS NOT A VESTED PENSION BENEFIT. WE WON A CASE LAST YEAR IN THE FEDERAL COURT OF APPEAL THAT SAID THE SAME THING. WE STAND BEHIND THAT. WE HAVE TO BATTLE IN STATE COURT BUT WE BELIEVE HE'S CORRECT.
CUTTING PAY FOR MOST CITY WORKERS.
THE CITY RETAINS THE POWER TO CHANGE PAY LIKE ANYONE ELSE. WE ARE REQUIRED BY STATE LAW TO NEGOTIATE IN GOOD FAITH. WHICH WE OUGHT TO DO. TOO MUCH OF THE HISTORY OF THIS CITY IS NEGOTIATION OF YEARS AND YEARS. THE CITY HAS THE POWER TO BREAK NEGOTIATION AND MAKE A DECISION.
WHAT ABOUT MONEY OWED TO THE CITY ABOUT CITY DEVELOPMENT CORPORATION?
WE ARE LOOKING AT THAT. WE HAVE FOUND A PROCESS THAT HASN'T BEEN RAISED BEFORE FOR A REIMBURSEMENT AGREEMENT. WE'LL LAY THAT OUT NEXT WEEK IN AN OPTION TO SAVE THE CITY AND GET REIMBURSED $9 MILLION A YEAR.
THANK YOU VERY MUCH.
PLEASURE TO BE WITH YOU.
