April 7, 2005

Governor Drops Pension Reform… For Now

It's doubtful that the governor's "Kitchen Cabinet" event today with citizens in Santa Rosa will get much media attention, given the bomb he dropped at the Capitol this morning: he's abandoning pension reform for 2005, both in the Legislature and on the ballot.

Before the event, it was clear from the steady stream of law enforcement officers making their way to the dais that something significant had changed. And while Governor Schwarzenegger was his usual ebullient self, there was a clear sense that criticism of his plan's impact on death and disability benefits for police and firefighters had sunk in.

There also seemed to be a hint of unhappiness with a new poll (find it here) that shows Schwarzenegger's job approval dipping below 50%... and it came in a question I asked him about why he was changing his mind on pensions.

"Let me just tell you, that what I do with my agenda, the protesters or poll numbers have absolutely no impact on what I do, because I'm very focused and I shoot for what needs to be fixed."

Nonetheless, he says he will wait until 2006 to "fix" the pension system-- either through negotiations with the Legislature, or by placing a reworked initiative on the June 2006 ballot.

A couple of other observations from today's big news events:

* The spin on who had won, or lost, this particular battle was intense. Ignoring the substance of what he had just said, the governor wrapped up his news conference by saying, "I declare victory on this, a victory for California." A short while later, Assembly Speaker Fabian Nunez was quick to reply, "We welcome his retreat on the initiative."

* It seems clear that the last three days were the final straw. Both Schwarzenegger and families of fallen law enforcement officers pointed to a long and emotional meeting in the governor's office on Monday. "These were powerful arguments, " said Schwarzenegger, although he also said he still believes the fears of denying these benefits were a "misconception."

* So what happens in regards to the governor's other proposals (budget cuts, redistricting, teacher pay)? Democrats likened the situation to one bullet being taken out of a gun, but the gun "still has three bullets in it", according to Nunez. And even the governor seemed unwilling to demand specifics in his so-called reform agenda, saying that he only insists on "the outcome."