Politics

Florida TaxWatch: State Leaders Did Right; We'll Back Them in Court in Employees' Pension Battle

By: Jim Turner | Posted: July 14, 2012 3:55 AM
Dominic Calabro

Florida TaxWatch President and CEO Dominic Calabro | Sunshine State News Archives

Florida TaxWatch has formally backed the state effort to require public workers to chip into their taxpayer-supported pension as that case goes before the state Supreme Court.

The Tallahassee-based fiscal watchdog group has filed an amicus brief that joins the effort by Gov. Rick Scott, Attorney General Pam Bondi and Chief Financial Officer Jeff Atwater in seeking to overturn a circuit court judge’s ruling that the 2011 requirement was unconstitutional.

“We think the state acted very responsibly, it didn’t abrogate the existing contracts,” said Dominic Calabro, Florida TaxWatch president and CEO. The move to require employees to contribute just 3 percent of their pay toward their pension was a 2011 recommendation of TaxWatch.

“This is a big impact, this is a multibillion-dollar impact over a number of years,” Calabro said.

In March, Leon County Circuit Court Judge Jackie Fulford ruled against the less-than-year-old law to require state employees to contribute 3 percent of their pay toward the pension program.

Fulford, who had previously ruled against the state’s prison privatization plan, sided with public employees who argued the legislative plan to requirie pension contributions violated the right of employees hired before July 1, 2011.

Fulford, noting a 1974 law shift that didn’t require employees to contribute to the pension fund, declared that “to find otherwise would mean that a contract with our state government has no meaning and that the citizens of our state can place no trust in the work of our Legislature.”

The state has argued that nobody lost benefits already earned or the right to collectively bargain when it required the 700,000 state, county and municipal workers to contribute to the $121 billion Florida Retirement System. The change was made as legislators sought to patch a $3.8 billion budget shortfall.

State officials, behind former Supreme Court Justice Raoul Cantero, have argued in their appeal that Fulford’s ruling “would handcuff the Legislature's response to changing financial circumstances."

Calabro noted that prior to 1974, employees had contributed to their retirement accounts.

“We think the state acted responsibly, in a good fiduciary manner,” Calabro said. “It’s looking out for both the employees and their families, but they have to look out for the citizens and taxpayers of Florida.”



Reach Jim Turner at jturner@sunshinestatenews.com or at (772) 215-9889.

Comments (9)

carlos mandrell
6:19AM AUG 31ST 2012
If there is no promise or contract for state employees with the Legislature, by our Unions, then absolute power will corrupt the already corrupt Legislature absolutely. The MO of a rough is to take what they can , when they can( steal, kill @ destroy.) If the Supreme court does not uphold Judge Fulford decision then our so called legal system has been hijacked by the oppessors to mandkind,our Government. But let it be known, this case will also come before the High Court of Heaven and the KING that reigns SUPREME will melt out true justice once @ for all. So for those of you who are in power now will not be in power then. I thank my GOD.
HLander
7:38AM JUL 24TH 2012
In a bad economy, a really bad economy, sometimes workers have to face pay cuts. This is a fact of life and so I understand Florida Tax Watches support of the 3% cross the board cut. But if this were a private business, and you had a contract with the union, you could not unilaterally declare that you were changing the contract. State workers, unlike their private sector counter parts, have no right to strike, but until now, they had a right to collectively bargain and enter into a contract. Why did the state not "renegotiate" the contract? Answer, without the right to strike, the state knew that it would get all the cuts they wanted. The legislature decided to skip the formalities of honoring the collective bargaining process. Will the Supreme Court - filled as it is with nit-picking lawyers - see this skipped step as a mere formality, or will they hold the state to the constitution and the contract?
Florida Tax Watch believes the ends justify the means. Don't you?
Steve
8:49PM JUL 18TH 2012
I agree with Christina. I for one haven't seen a raise in 4 years plus spent a year and a half having furloughs 1 day a month which futher cut into my take home pay. Meanwhile, hundreds of millions of dollars are given out to companies that move to Florida and "create" jobs which has been proven doesn't work since no one seems to know where the money went let alone what jobs were created. But what can you expect from someone that spent $78 million to buy his job...
Jose M. Rodriguez
4:36PM JUL 17TH 2012
Rivera, stop the egg bill Please.
Christina
10:55AM JUL 16TH 2012
It's a double edged sword. We get the 3% reduction in pay and we also pay taxes just like all the other tax payers in the state of FL. We also haven't had a raise in 4 years. Pay attention to this next sentence very clearly. "I don't mind paying 3% for a contribution into the Pension fund." What I don't like is the tactics with which they are taking the money that was stated to be "for the pension fund" and using it pay for a budget shortfall within the state. Essentially robbing Peter to pay Paul. I've had to do that very thing with my own personal finances and eventually you can't rob Peter to pay Paul because Peter will eventually go broke. And then for a period of time hopefully only until pay day your left with nothing, nada, zilch, zero. No money is no money is no money. If I am being told that it's better to be fiscally responsible with finances then our government should have to be as well. Another food for thought. Lets change the pension funds name to "The Money Corner" I wonder if the government has some crazy interest rate to pay us back like 469% interest that some money stores charge to borrow money.
Knows Better
10:24AM JUL 16TH 2012
See you in September! The Rick Scott "Public Employee Income Tax" (exactly 3% of gross salary) will become nothing more than a bad memory after the Supreme Court declares it unlawful. You can bet on it! How many millions has the State spent on litigating this trash legislation? What a great way to spend the limited resources we have to work with! Oh well, it will be that much less to give away to the friendly corporate interests in the name of "job development". Yeah, right...
Bryan Bouton
11:50AM JUL 15TH 2012
Yes, prior to 1974, public employees did contribute to their retirement...and when they left the state, they DRAINED MILLIONS FROM THE RETIREMENT FUND in huge blocks...there's a reason the law was changed people, open your eyes and see what government is doing: a promise was made and is now being broken...and that, in a nutshell, is our legislature
Oooo
1:31AM JUL 15TH 2012
Tax watch ,more Koch bros republican garbage,,,,here go more public dollars to defend their thievery
blouton
10:06AM JUL 14TH 2012
where is all the money you and your buddies support taking from state workers going? somebody has some happy wallets

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