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08.22.12

$650M San Jose Pension Projection "Unsupported"

The State Auditor released an evaluation August 21, 2012 reporting that San Jose leaders embellished future employee pension costs.

In March of this year, on a bipartisan vote, the members of the state Joint Legislative Audit Committee approved a requested state audit of the city of San Jose’s pension obligations. The audit looked into the $650 million pension cost figure the Mayor and City Manager used to build voter support for pension reform and Measure B.

“The mayor's political strategy of over-inflating costs proved to be the largest barrier in negotiating legal pension reform with San Jose's employees," said John Mukhar, president of Local 21’s AEA.

See the 47-page audit here. Also, below are links to the NBC Bay Area and Mercury News articles covering the report. The audit request was submitted by a coalition of legislators – Assemblymembers Jim Beall, Luis Alejo, Paul Fong, Rich Gordon, Bob Wieckowski, and Sens. Elaine Alquist, Ellen Corbett.

http://www.nbcbayarea.com/investigations/State-Audit-Says-SJ-Mayors-650M-Pension-Projection-Unsupported-166905176.html

http://www.mercurynews.com/pensions/ci_21363345/state-auditor-calls-san-jose-pension-estimates-unsupported

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