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August 13, 2012 Senate President Pro Tempore Darrell Steinberg State Capitol Building, Room 205 Sacramento, CA 95814 Assembly Speaker John Perez State Capitol Building, Room 3160 Sacramento, CA 95814 Dear Senator Steinberg and Speaker Prez: We, the undersigned members of the Regional Economic Association Leaders (R.E.A.L.) Coalition, have been greatly encouraged by your recent words of support for meaningful pension reform in California. Our statewide coalition which is composed of 20 of Californias most influential regional business associations, representing more than 11,000 employers that provide more than 3 million jobs strongly supports Governor Browns 12-point plan for reform as an important first step toward returning our pension obligations to a state of fiscal sustainability. Across our state, local officials are facing crippling budget shortfalls and are being forced to decide between growing pension obligations and libraries, growing pension obligations and parks, growing pension obligations and public safety. At the same time, our public employees are relying for their retirement on money that simply isnt there. Systemic pension reform is the only remedy. We do not believe the Governors plan to be a panacea. The Department of Finance estimates the impact of the 12-point plan, if fully implemented, to be between $4 billion and $11 billion over 30 years, while our major pension funds estimate their liabilities at over $300 billion. Nevertheless, the Governors proposal does represent an important course correction again, an important first step. Voters in three of Californias largest cities San Jose, San Diego and San Francisco have already overwhelmingly approved reform measures that included many of the same provisions that appear in the Governors 12-point plan. These were important steps that should not be preempted by state action, but more needs to be done. Our pension problems cannot be fixed city by city, special district by special district in a patchwork manner. It is up to our elected leaders in Sacramento to enact statewide reform if we are to avoid continued devastating cuts to local services, more municipal bankruptcies, and a collapse of the retirement system on which our public employees rely. We look forward to seeing the reforms currently being drafted in conference, and trust that their impact on our long-term pension liabilities will be at least equal to the $4B$11B impact of the Governors proposal. We also appreciate your commitment that
RON ADDINGTON
Business Council of San Joaquin County
BILL ALLEN
Los Angeles County Economic Development Corporation
RUBEN BARRALES
San Diego Chamber of Commerce
LINDA BEST
Contra Costa Council
MARK CAFFERTY
San Diego Regional Economic Development Corporation
KAREN ENGEL
East Bay Economic Development Alliance
STEVE FALK
San Francisco Chamber of Commerce
RANDY GORDON
Long Beach Area Chamber of Commerce
PAUL GRANILLO
Inland Empire Economic Partnership
BILLIE GREER
Southern California Leadership Council
JOE HARABURDA
Oakland Metropolitan Chamber of Commerce
CYNTHIA KURTZ
San Gabriel Valley Economic Partnership
MATTHEW MAHOOD
San Jose Silicon Valley Chamber of Commerce
CYNTHIA MURRAY
North Bay Leadership Council
ROGER NIELLO
Sacramento Metro Chamber of Commerce
AL SMITH
Greater Fresno Area Chamber of Commerce
GARY TOEBBEN
Los Angeles Area Chamber of Commerce
JIM WUNDERMAN
Bay Area Council
this proposal will be produced in a timely manner so that it can be appropriately vetted and deliberated before being put to a vote. Thank you for your continued leadership and service. Sincerely,
Ruben Barrales President & CEO San Diego Regional Chamber of Commerce
Randy Gordon President & CEO Long Beach Area Chamber of Commerce
Cynthia Kurtz President & CEO San Gabriel Valley Economic Partnership
Matthew Mahood President & CEO San Jose Silicon Valley Chamber of Commerce
Gary Toebben President & CEO Los Angeles Area Chamber of Commerce
The views expressed in this correspondence are supported by the signatories above. R.E.A.L. Coalition partners not included as signatories are not necessarily party to the views expressed herein.