White House insider calls SEIU in California 'budget terrorists'

 According to the LA Times (http://www.latimes.com/features/health/la-me-cal-healthcare11-2009may11,0,6166232.story),    the California SEIU, the most powerful public employee union in the State of California, demonstrated by their $33 million contribution to Obama’s Presidential campaign,  are getting an unprecedented seat at the  highly sensitive talks regarding how federal “stimulus” dollars will be used in California. The union is currently blocking attempts by the White House and State officials to cut  some healthcare related union wages by 20% as a pre requisite to federal stimulus funds totally $6.8 billion  to  be given to the fiscally broken State.  The SEIU is standing firm that their members' receive all of the wages and benefits under their current contract. 

 

To have actual stakeholders (such as union leaders) who may be impacted by the discussions, and then threaten action if they don’t get their way, brought one White House insider to comment, “the SEIU are budget terrorists.”     The White House is looking for ways to bring change to California, however, due to the historical relationship between the federal and state governments, getting the State (which the SEIU now has unprecedented influence to via their White House influence) to sign off on goals and objectives prior to federal sign off has proven difficult.   To date, the talks are at a standstill.

 

“What about us?” is the rallying call from seniors, schools, taxpayers as well as other impacted government service recipients and non profit agencies dependent upon budget outlays to serve their constituents and seeing their budgets cut while outlays for lifetime pension payments soar.  According to a recently released audit in the wealthy County of Marin, submitted over two years late, the County cut close to 20% of service focused budgets, totally $60 million, while current payments for the politically powerful public employee union pensions ballooned over 70%.   

 

Within Counties and Sacramento, the public employee unions across the State continue to hijack budgets discussions with their largess in political contributions and an aggressive, well financed lobbying program  teamed with paid full time union leaders, and supplemented with high priced lobbyists and lawyers in being part of the legislative and budgeting process at every turn. The unfunded pension liability alone owed state public employees to date is estimated to be over $65 billion…almost one half the entire State budget.  The current State budget gap has already grown an estimated $25 billion, just two months after a lengthy partisan budget battle between the Governor's office, Democrat and Republican legislators. 

 

Meanwhile taxpayers and non profits continue to struggle in trying to get their voices heard.   Unlike the public employees feeding their union leadership mandatory dues, other entities, like the Easter Seals of Northern California,  are forced to raise monies from individuals check by check.    Thousands of public employee retirees are retiring with $100k plus a year for life pensions…further damaging a near bankrupt State in fiscal disarray and leaving non profits and government service coffers empty.     The highest lifetime pension announced by CalPERS was over $499k a year for a treasure and adminstrator in Vernon, California.

 

Union officials claim they are merely insisting that existing contracts between the unions and the State and/or Counties are followed. The SEIU and other state and county public employee unions have used their member’s mandatory dues, paid for by taxpayers, to donate millions to key legislative and initiative races around the State. The Los Angeles Times also reported the powerful SEIU set aside $1 million to support two statewide union backed 1A and 1F initiatives, both are lagging in recent polls.  (http://www.latimes.com/news/local/la-me-election22-2009apr22,0,5391191.story ).