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SQUAREOFF.
SQUAREOFF. HOW DO YOU SAY LET'S TALK ABOUT
PENGS.
PENGS.
PENGS. HOW'S THAT FOR TEASE OR TALK
ABOUT THE TAX EACH OF US
CONTRIBUTE TOWARD PENSIONS FOR
POLICE OFFICERS, FIREFIGHTERS
AND OTHER CITY EMPLOYEES IN
PHOENIX.
PHOENIX.
PHOENIX. PENSIONS HAVE BECOME A HUGE
BURDEN ON THE CITY BUDGET.
THE PUBLIC SAFETY PENSIONS IN
PARTICULAR.
PARTICULAR. PROP 106 ON THE AUGUST 27th
PHOENIX BALLOT IS THE LATEST
PLAN TO DEAL WITH PHOENIX'S $4
BILLION IN UNFUNDED PENSION
DEBT.
DEBT.
DEBT. THAT IS HOW MUCH PHOENIX WILL
OWE RETIREES AND HASN'T COVERED
YET.
YET.
YET. TEN%
YET. TEN% OF THE CITY'S ANNUAL
BUDGET IS SPENT ON PENSIONS TO
PAY DOWN THAT DEBT.
PROP 106 WOULD PAY DOWN THE
DEBT MUCH FASTER BY CAPPING
CITY SPENDING ON MOST SERVICES,
PARKS, LIBRARIES AND ALMOST
EVERYTHING BUT PUBLIC SAFETY.
THE EXCESS CASH WOULD PAY FOR
POLICE AND FIREFIGHTER PENGS.
THE LARGEST CHUNK OF PHOENIX'S
PENSION DEBT KIND OF TOUGH LOVE
TO PAY FOR PENSIONS.
THE ARIZONA REPUBLIC'S JESSICA
BANE JOINS US WITH WHAT VOTERS
NEED TO KNOW ABOUT PROP 106 AND
AS USUAL, MY FULL DISCLOSURE.
MY WIFE IS A CITY OF PHOENIX
EMPLOYEE AND 7 ROLLED IN THE
CITY'S PENSION SYSTEM.
SO, WELCOME.
SO, WELCOME. >> THANK YOU.
>> WHO PUT THIS INITIATIVE ON
THE BALLOT?
THE BALLOT? >> SO, THIS INITIATIVE IS KIND
OF A PET PROJECT OF COUNSELMAN
SAL DACICIO, AND OTHERS WITH
HIS VIEWPOINT.
HIS VIEWPOINT. SEVERAL WHO ARE NOT FROM
ARIZONA.
ARIZONA.
ARIZONA. THERE ARE A FEW UTAH
POLITICIANS INVOLVED IN THIS.
THE IDEA IS IF IT WORKS HERE,
THEY TAKE IT NATIONALLY.
>> WE'RE KIND OF THE TEST LAB.
>> I GUESS YOU COULD SAY THAT.
>> FOR HIS BALLOT PROP.
PENSION DEBT, AS I SAID HAS
BEEN A PROBLEM FOR YEARS.
WHAT IS THE STRONGEST ARGUMENT
FOR PROP 106.
>> WELL, THE PEOPLE WHO BROUGHT
THIS PROPOSITION FORWARD, THEY
SAY THAT WE HAVE A TICKING TIME
BOMB WHEN IT COMES TO OUR
PENSIONS.
PENSIONS.
PENSIONS. $4.5BILLION IS NOT A SMALL
NUMBER BY ANY MAINS.
AND THEY, ANY MEANS AND THEY
BELIEVE IF WE DON'T START
TAKING A BIGGER BITE OUT OF
THAT NOW, WE WILL LEAVE A
REALLY BAD SITUATION TO THE
NEXT GENERATION.
NEXT GENERATION. THOUGH IT'S IMPORTANT TO NOTE
THAT WHEN I SAY $4.5 BILLION
DEBT, THAT IS NOT NECESSARILY
MONEY THAT THE CITY OWES TODAY.
IT'S OVER TIME, WHAT THEY WILL
OWE TO THEIR RETIREES.
I MEAN LIKE YOU SAID, THE CITY
PAID MORE THAN $400 MILLION
THIS YEAR TOWARDS THAT DEBT.
>> AND IT'S FOR THE FUTURE.
I HAD A QUESTION, READING THE
INITIATIVE.
INITIATIVE. I DIDN'T SEE IT ANSWERED, DO
THE SUPPORTERS PROJECT HOW LONG
IT WOULD TAKE USING THE PLAN TO
MEET THEIR GOAL OF COVERING 90%
OF THE PUBLIC SAFETY PENSION
DEBT BEFORE THE CAP ON OTHER
SERVICES COMES OFF?
>> YEAH, I HAVEN'T HEARD THAT
SPECIFICALLY, HOW LONG IT WOULD
TAKE, AND THAT WOULD BE HARD TO
PROJECT.
PROJECT.
PROJECT. YOU CAN'T PROJECT EXCESS
REVENUES THAT FAR IN THE
FUTURE, ESPECIALLY IF WE HAVE A
RECESSION I AM HEARING SO MUCH
ABOUT.
ABOUT.
ABOUT. IT
ABOUT. IT WILL DEPENDED ON HOW MUCH
MONEY IT WILL TAKE, THOUGH, AND
RIGHT NOW, I THINK THE PUBLIC
SAFETY PENSION FUNDS ARE FUNDED
AT 42, 43% AND SO IT WOULD NOT
BE UNREALISTIC TO ASSUME THIS
COULD TAKE YEARS AND DECADES.
>> AND I READ UNDER THE CURRENT
SYSTEM WE HAVE, IT WOULD TAKE
29 YEARS TO CATCH UP.
>> THAT WOULD NOT SURPRISE ME.
>> WHAT ARE OPPONENTS SAYING
ABOUT PROP 106.
>> O POPES SAY IF YOU CAP
SPENDING, WE HAVE TO MAKE TOUGH
CUTS IN OTHER AREAS, PARKS,
LIBRARIES, ET CETERA AND, YOU
KNOW, DURING THE RECESSION, THE
CITY CUT SERVICES PRETTY
DRASTICALLY.
DRASTICALLY. THEY HAVE NOT FULLY RESTORED
SERVICES.
SERVICES.
SERVICES. BASICALLY, THE ARGUMENT IS IF
WE DO THIS, WE NEVER WILL.
>> AND THE CAP LANGUAGE, WHICH
IS VERY AMBIGUOUS, I WOULD
POINT OUT, SAID AMBIGUOUSLY
SERVICES GROWTH AND SERVICES
WOULD BE CAPPED AT THE RATE OF
POPULATION GROWTH OR THE RATE
OF INFLATION.
OF INFLATION. >> EXACTLY.
>> EXACTLY. >> AND MAYBE 1%, 2%.
>> RIGHT.
>> RIGHT.
>> RIGHT. THAT WOULD BE VERY SMALL.
WE'RE TALKING WE'RE MAINTAINING
WHAT WE HAVE NOW.
>> OKAY, I FOUND IT
INTERESTING.
INTERESTING. THE PHOENIX POLICE UNION AND
PHOENIX FIREFIGHTER UNION
OPPOSE THIS MEASURE, EVEN
THOUGH THEY MAY HAVE THE
BIGGEST STAKE IN IT.
WHAT IS GOING ON THERE.
>> THAT IS TRUE AND IT'S
IRONIC.
IRONIC.
IRONIC. A
IRONIC. A LOT OF THE SIGNAGE AND
LITERATURE SAID WE'RE TRYING TO
PROTECT POLICE AND FIRE AND
POLICE AND FIRE ARE SAYING WE
DON'T WANT THIS.
I THINK THAT THEY BELIEVE THE
CITY HAS A CURRENT PLAN, WHICH
IS, YOU KNOW, KIND OF LIKE
PAYING OFF YOUR HOUSE IF YOU
HAVE A MORTGAGE.
YOU MAKE ANNUAL PAYMENTS.
THAT IS WHAT IT'S DOING NOW AND
THEY BELIEVE THAT WILL WORK AND
THEY DON'T NEED TO CHANGE THE
SYSTEM AND POTENTIALLY CAP V.
>> OKAY.
>> OKAY.
>> OKAY. TALK UNINTENDED CONSEQUENCES.
WHAT MIGHT HAPPEN THAT WE'RE
NOT THINKING ABOUT.
>> I THINK PROBABLY ONE OF THE
BIGGEST ONES YOU MENTIONED, THE
LANGUAGE OF THE BALLOT IS
TRICKY TO UNDERSTAND.
IT WOULD NOT SURPRISE ME AT ALL
IF THIS PASSES THAT IT ENDS UP
IN COURT SOMEHOW AND WITH
PEOP CHALLENGING WHAT IT
MEANS AND DOES.
OF COURSE, THE COURTS NEVER
CHEAT.
CHEAT.
CHEAT. >>
CHEAT. >> NO, ALL RIGHT AGAIN, THE
SPRITE IS AUGUST 27th, EARLY
BALLOTS ARE IN THE MAILBOXES
AND MOST OF THE VOTING IS BY
EARLY MAIL.
EARLY MAIL. JESSICA, THANK YOU FOR JOINING
JUICE.
JUICE.
JUICE. THANK YOU.
THANK YOU. >> AND WHEN WE COME BACK, THE
PEOPLE BEHIND THE 2020
INITIATIVE TO LEGALIZE MARCHS
THEY GOT IT RIGHT THIS TIME
AFTER DEFEATING 2016.