Governor Vetoes AB 1383 

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Your letters made a difference in defeating this irresponsible measure.

Thanks in part to 598 letters of opposition from members of the GFC (Govern for California) Network and the Coalition of Sensible Taxpayers, last week Governor Newsom vetoed AB 1383. The bill would have significantly increased state and local government spending on public employee pensions and exposed taxpayers to the risk of additional unfunded pension liabilities.  

AB 1383 would have boosted pension promises without setting aside sufficient funds to meet those promises. That is the same lethal combination that is already costing California state and local taxpayers more than $36 billion per year. Other features of the bill included lowering the normal retirement age for public safety members and allowing unions to negotiate higher benefit accrual rates.

The Governor’s veto cited conflicts with the Public Employees’ Pension Reform Act (PEPRA) of 2013. He stated that the increased benefits would drive up costs for state and local governments and introduce fiscal risks to California’s retirement systems.

It remains uncertain if lawmakers will attempt an override.

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