Wednesday, July 9, 2008 | While the pension fund needs attention and the City needs to find freed-up funds, in cutting pension benefits to future workers, the City is in the genesis of another (future) crisis that will self-perpetuate. The current white-collar salaries at the City are two-thirds of the pay of the private sector. The recruiting tools for the City are the benefits and security of government. But in the future, benefits will go and so will the recruiting edge. White- collar workers will go the way of the current police, if able to recruit at all. The employees will stay long enough to have the experience to move onto other entities that offer more in compensation. The City will have a high turnover, low “corporate history” memory and the quality of the work will deplete with each new generation of newbie employees.

The solution is to raise taxes. San Diego pays some of the lowest taxes per capita in the country. San Diego is famous for this in the circles of competent government managers, and used as the example of what not to do. It’s the citizenry that can solve the pension, police and infrastructure problems. Don’t shoot yourself in the foot by encouraging an atmosphere of less competent employees, and get rid of the current incompetents.

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