Attorney General Questions Legality Of San Jose's Pension Plan
SAN JOSE (KCBS) -- The California Attorney General thinks a plan by Mayor Chuck Reed to lower pensions costs in San Jose by declaring a fiscal state of emergency may be on shaky legal footing.
The office of Attorney General Kamala Harris said that the mayor's plan for a ballot measure to rein in pension cost raises serious legal concerns. Harris' senior counsel wrote a letter to lawmakers saying that "Financial problems faced by government must be resolved lawfully."
At issue is whether the city can declare a fiscal state of emergency to change benefits for current city employees.
KCBS' Matt Bigler Reports:
Reed defended his plan.
"We're acting under our powers of the city, under the Constitution," he said.
The San Jose City Council is faced with closing a $115 million budget deficit.
Reed has warned that drastic action was needed, given San Jose's ongoing budget gaps.
City officials have postponed discussion about the emergency declaration until the fall.
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