San Diegans Overwhelmingly Favor Pension Reform Measure

Updated 12:14 a.m. Wednesday.

San Diego voters Tuesday night were favoring a pair of labor-related ballot measures that drew intense opposition from area unions, according to early election results released by the Registrar of Voters Office.

According to a tally of early ballots, Proposition A, which would bar the city from requiring Project Labor Agreements on municipal construction contracts, was leading with 58.69 percent of the vote, with 66.2 percent of precincts reporting.

Proposition B, which would close the city's debt-ridden pension system to most new employees, was being backed by 67.15 percent of voters.

Supporters of Proposition A said they believe PLAs squeeze out nonunion contractors and force up prices on big projects.

The state Legislature in the past year enacted a pair of laws that forbid the state from financing capital improvements in jurisdictions where PLAs are banned. Because of that, opponents said San Diego could lose out on millions of dollars if the measure passes.

According to a legal analysis by the City Attorney's Office, the ballot measure includes exceptions that allow PLAs if required by the state or federal governments, or if needed to receive state or federal funding -- making the impact of its passage uncertain.

If Proposition B passes, new city employees other than police officers would be given 401(k)-type retirement plans instead of being enrolled in the pension system. Also, only base salary over the next five years would be calculated into a worker's eventual retirement pay.

Supporters, including Mayor Jerry Sanders, Councilman and mayoral candidate Carl DeMaio and the San Diego County Taxpayers Association, and critics have squabbled over the financial impact on the city.

Backers said it could save somewhere close to $1 billion over the next 30 years because it slows down the growth of pension payouts.

Those against the measure said it discriminates against city workers and would cost the city more money in the short run. Opponents said its provisions will get tied up in court for years, so even if it passes, it will be a long time before it is implemented.

Legal challenges have already been mounted against Proposition B, but multiple judges have ruled the voters should weigh in before the substantive issues are litigated. A hearing on legal action brought by the state Public Employment Relations Board is scheduled for June 22.