A Schwarzenegger appointee to the California State Teachers Retirement System (CalSTRS) board was rejected today by Senate Democrats... as the battle over the governor's plan to privatize public employee pensions continues.

The Senate Rules Committee rejected nominee Kathleen Smalley, who was the last remaining Schwarzenegger appointee to the CalSTRS board. On February 3rd, a majority of the board voted to oppose the governor's pension proposal. The following week, the governor withdrew four of his nominees who voted with the majority-- Jim Gray, Gloria Hom, Mark Battey, and Miguel Pulido. But Smalley's nomination remained, apparently because she voted to support the governor's proposal.

For those who need a quick primer: the governor's plan would turn the pension system for state employees into something more like the private sector's 401(k) plan for employees hired after July 2007.

Today, Democrats said if the governor could use an appointee's position on the pension plan as a litmus test, then they could, too. Senate President Pro Tem Don Perata said that Smalley's vote in favor of the governor's plan "put her at odds with her duty to protect teachers and the retirement funds on which they depend."

The decision seems to be yet another sign that compromise on the governor's self-proclaimed reform agenda is still a long ways away.