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Skepticism abounds over pension reform special session

Jeremy Duda//June 13, 2014//[read_meter]

Skepticism abounds over pension reform special session

Jeremy Duda//June 13, 2014//[read_meter]

 

Gov. Jan Brewer (Photo by Evan Wyloge/Arizona Capitol Times)
Gov. Jan Brewer (Photo by Evan Wyloge/Arizona Capitol Times)

Some of the main players who would be involved in a proposed special session to refer a pension reform measure to the November ballot are growing more skeptical that anything will happen this year.

Key lawmakers and Gov. Jan Brewer’s office say they haven’t seen many details of proposal to reform the underfunded Public Safety Personnel Retirement System (PSPRS), which covers police and firefighters. Legislative leaders say they’ve seen little enthusiasm among their colleagues to come back to the Capitol this summer. And the Governor’s Office has received no indication from the Legislature that anyone is ready to move on the issue.

But the fight isn’t over. The Professional Fire Fighters of Arizona (PFFA), which drafted the proposal that would increase pension payments by employees and reduce cost-of-living benefits for retirees, continues to meet with lawmakers and Brewer’s staff. House Speaker Andy Tobin said there is still time to round up support for the measure and refer to the ballot this fall.

Lawmakers would have to refer the issue to the ballot by early July to satisfy county election officials, though printing deadlines have proven to be flexible in the past.

Brewer spokesman Andrew Wilder said the governor is open the possibility of a special session this summer. But a push for one would have to come from the Legislature, and Brewer would need to see there is enough support among lawmakers before she would issue a special session call, he said.

Legislative leaders have not come to Brewer with a proposal and have not indicated to the governor that any proposal has enough support in the Legislature to pass, Wilder said.

“The governor would want to see that the Legislature has a proposal that they support … before she would consider a call for special session,” Wilder said. “There still is time. But the clock is ticking.”

Senate President Andy Biggs, R-Gilbert, said there isn’t much enthusiasm among lawmakers to come back for a special session.

Some feel like the issue is being rushed through, Biggs said. He said there are also concerns about the long-term ramifications of the measure.

And many lawmakers don’t have enough information yet about the complex proposal, Biggs said. He noted that the recent special session to create the Department of Child Safety took about seven months of intensive preparation.

“I don’t know if it’s getting any legs or traction,” Biggs said of the proposed special session. “I think the reception has been tepid.”

The proposal was crafted in response to a March ruling by the Arizona Supreme Court that struck down 2011 pension reform legislation. The court ruled that pension benefits are protected by a provision in the Arizona Constitution.

The firefighters’ proposal would require an amendment to the Arizona Constitution, which can only be approved by the voters.

Some lawmakers have different ideas than the firefighters about what should be included in a pension reform measure. In a June 4 email, Rep. Phil Lovas, R-Peoria, told Brewer aides Michael Hunter and Lorna Romero that would include anti-pension spiking language, caps on pensions and other reforms.

“I appreciate that they are looking at solutions to bring down the employer costs but if we are sending something to the ballot then I think we need to look at a much more comprehensive pension reform package,” said Lovas, who chairs the House Insurance and Retirement Committee. “However, those provisions would never be agreed to by a broad consensus. In lieu of that agreement, I think inaction would be preferable at this time.”

Rep. John Kavanagh, chair of the House Appropriations Committee, said the firefighters’ proposal may still be struck down for violating the contract clause in the U.S. Constitution, even if voters amend problematic provisions in the state Constitution.

Kavanagh, R-Fountain Hills, also expressed concern over the lack of a concrete proposal. Though the PRPRS board of trustees officially urged Brewer to call a special session and voted to support reform that would fund the system through reductions in cost-of-living adjustments, it shied away from endorsing the firefighters’ specific plan, which Kavanagh said was not a good sign.

“I guess the problem is when key players in this field, like PSPRS, basically say, ‘Don’t stand there, do something,’ but don’t suggest what, it’s certainly not a big endorsement or encouragement,” he said.

Others are holding out hope. House Speaker Andy Tobin, whose brother is a former PFFA president who now chairs the PSPRS board, said there wasn’t a lot of support in the Legislature in the past. But that was before firefighter and police unions were on board with the plan, he said.

Now that police and firefighters are pushing the plan, Tobin, R-Paulden, said that should encourage lawmakers to support it. He said he believes there’s still enough time to call a special session and refer the measure to the ballot in time for this year’s election.

“I really have to shop it to my members,” Tobin said. “I’m not hearing any real pushback.”

Tobin acknowledged that there may still be problems with the contract clauses in the state or federal constitutions. But with PSPRS underfunded by about $400 million, he said the state should push forward with the reforms, and if the courts later strike them down, lawmakers can try a new path.

“It’s worth taking a shot in my view,” he said.

David Leibowitz, a spokesman for the firefighters’ union, said meetings with lawmakers are continuing. He said he believes the support will be there and there’s still enough time to get things done in time for November.

Leibowitz acknowledged that there’s some skepticism among lawmakers. But he said they’ve become more receptive as they learn more about the firefighters’ plan, and he’s optimistic that lawmakers and Brewer will support it.

“I think there is definitely a shot. Governor Brewer has always been a terrific supporter of public safety, of the firefighters, of police. And we’re hopeful that when she hears all of the facts and (we) put together a pretty outstanding coalition … that she’ll see the need, the necessity to have this special session,” Leibowitz said.

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