ASSEMBLYMAN TRAVIS ALLEN
April 23, 2014
Democrats Vote Down Assemblyman Travis Allen’s Common Sense Bill to Address California’s Mounting Debt Crisis
AB 1681 would have initiated the conversation to determine the best way to pay for our employees’ health care benefits after retirement.
SACRAMENTO – Today, Assemblyman Travis Allen’s (R-Huntington Beach) Assembly Bill 1681, whichrequired that all future contract negotiations between a public employer and its employees would include a strategy for funding retiree health benefits, was voted down by the Assembly Committee on Public Employees, Retirement and Social Security (PERSS).
When presented with concerns over California’s unpaid healthcare debt the Democrat Members of the Committee chose labor unions over the best interests of California’s workers and voted no on AB 1681. The labor organizations in attendance spoke in opposition of the measure, even though their members would ultimately benefit the most from securing their promised future healthcare benefits.
“Simply put, the Democrats in the Legislature are currently unwilling to ensure that the state can pay for California’s retirees,” said Assemblyman Travis Allen. “This outcome illustrates that Sacramento special interests continue to resist any attempts to pursue real progress toward tackling the colossal debt amassed over the decades of inaction by Democrat politicians.”
Currently, California’s state worker retiree healthcare unfunded liability stands over $63 billion over the next 30 years, according to state Controller John Chiang.
AB 1681 required that beginning January 1, 2015, any new memorandums of understanding between a public employer and its employees that provides postemployment healthcare benefits must provide a strategy for permanently prefunding those benefits.
“As a Certified Financial Planner and the Vice Chair of the Committee on Public Employees, Retirement and Social Security (PERSS), I am committed to working on innovative and practical solutions to address the major unfunded healthcare and pension liabilities in California. It’s time that we take the necessary steps toward achieving long-term financial stability for the benefit of our state and our hardworking state employees,” said Assemblyman Travis Allen.
Stephanie B. Freedman
Asm. Travis Allen (CA-72)
5126 State Capitol
Sacramento, CA 95814
P: (916) 319-2072
Please go to Assemblyman Allen’s webpage for more information on issues pertaining to the 72nd District, and follow him on twitter and facebook. http://arc.asm.ca.gov/member/AD72/