COSTA MESA — At last night’s special budget study session Councilmembers and the public learned that the outsourcing scam that Councilmen Jim Righeimer, Stephen Mensinger, Gary Monahan, and Eric Bever have been promoting with bulldozer accuracy would cost the city more than it could save. What the Outsourcing Bozo’s forgot to add to their calculation was that if they drop hundreds of employees out of the pension system, they will have to pay off the unfunded liabilities over a ten year period. The Register reports that the cost of that maneuver for the City could be as much as $31.5 million a year for 10 years.
Not for nothing but I think this is what Councilwoman Wendy Leece might have been talking about when she told you that you were rushing things forward without thinking them through.
One thing that needs to be added to the discussion here is that the pension contribution percentages that Righeimer had been throwing around as accurate were in fact grossly overstated, in some cases by more than 50%. Since I was unable to make it to last nights meeting in person, I spent some time trying to drill down the projections made in February by city staff (with Righeimer’s obvious manipulation) and the projections that came out on Monday from CalPERS. The differences are striking. The costs for the first two years were accurate so I am only comparing in the graphs below the costs for fiscal years 2013-14, 2014-15, and 2015-16.
So in addition to the information learned at last nights meeting, which we will report in more detail later, the residents of Costa Mesa can be sure of one thing. Jim Righeimer, Stephen Mensinger, Eric Bever, and Gary Monahan hyped up their numbers embarrassingly high in February when they decided they wanted to layoff virtually all staff other than police and contract out the jobs. They failed to investigate the costs of their proposal and rushed to judgment without the most basic of information. In short, they had a political mission to pursue, and they weren’t willing to consider any facts along the way.