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Judges Strikes Down 3% State Pension Overhaul
March 7, 2012
In a stinging rebuke to Gov. Rick Scott and legislative Republicans, a state judge struck down a key portion of last year’s pension overhaul, a decision that could eventually force the state to return hundreds of millions of dollars to its employees.
The ruling from Circuit Court Judge Jackie Fulford bars the state from requiring employees hired before July 1, 2011, to contribute 3 percent of their income to their retirement plans. It also struck down a portion of the law that would reduce the cost-of-living increase for those employees.
Gov. Rick Scott said the state would appeal the decision, likely resulting in a stay that would allow the law to remain in place for now. Opponents of the law said they expect the state to continue withholding the 3 percent until the Florida Supreme Court rules on the issue.
The provisions struck down by Fulford’s decision were expected to save the state $861 million a year — money that would eventually have to be paid back if the appeal fails. It would cost counties around $600 million a year to have the changes reversed, likely leading to service cuts at the local level.
Scott and the lawmakers who pushed the provisions in last year’s session said the changes were needed to bring public workers’ pension plans in line with the private sector and help patch a multibillion-dollar hole in the state budget. But Fulford said that was not a good enough reason to ignore a law that essentially casts the pension plan as a contract between the state and its workers.
“The Court cannot set aside its constitutional obligations because a budget crisis exists in the State of Florida,” Fulford wrote. She added that ruling for the state “would mean that a contract with our state government has no meaning, and that the citizens of our state can place no trust in the work of our Legislature.”
Employees and unions who had taken the fight to court were elated by the ruling and said Scott and lawmakers should move quickly to reimburse state workers.
“They gambled taxpayers’ money that they could balance the budget on the backs of the hard-working public employees of this state,” said attorney Ron Meyer, who represented the plaintiffs in the case. “They lost that bet today.”
Instead, state Republicans and their allies seemed to dig in — painting Fulford, who has ruled against them before, as an activist judge and vowing to push ahead with an appeal.
Scott told reporters that Fulford’s ruling “doesn’t make any sense to me” and said she had overstepped her bounds.
“This is writing the laws of the land,” Scott said. “That is wrong. And I’m very comfortable this will be held to be constitutional.”
House Speaker Dean Cannon, R-Winter Park, said lawmakers wouldn’t immediately try to find the funds to reimburse employees.
“A first opinion by a single trial court judge is a long, long way from final,” Cannon said. He said the decision “validates the wisdom of always having a billion dollars in reserve,” a House budget policy in recent years.
Senate President Mike Haridopolos, R-Merritt Island, also said the Legislature would not re-open the budget, which is already printed and ready for a final vote Friday.
“I do not expect to open the budget, I expect to win the court case,” he said.
But Fulford’s ruling still touched off a round of speculation about how lawmakers could find the money if it came to that. Groups who have pushed for the state to consider closing tax loopholes or otherwise finding new revenues renewed their calls, which have run into resistance among Republicans who find tax increases unpalatable.
Meyer said that the state should tap its reserves to repay employees. But supporters of the law were already suggesting ideas that would hit the same workers who sued the state.
“While investing in our economy and our teachers is a priority of many, it would be ironic if the union lawsuit that brought forward this activist judge’s ruling actually reduced the salaries of government workers and the union members they represent by three percent,” Florida Chamber of Commerce President and CEO Mark Wilson said in a statement issued Tuesday.
Meyer acknowledged that possibility.
“If the Legislature and the governor want to punish workers, I’m sure they’ll find ways of doing it,” he said. “But they’re not going to do it by imposing this tax upon their salaries.”
By The News Service of Florida
Comments
12 Responses to “Judges Strikes Down 3% State Pension Overhaul”
Why dont the funds/money from an undeserved salary, kick-back’s, insurance scam’s, medical scam’s, and other rip-off schemes, so greedily collected by our thief / crook / rip-off artist “governor”, ( for his own personal bank-roll). . . be used for our states budget woes. Scotts rip-off account’s, hidden world-wide, would not hardly be affected, nor his stolen wealth. The crook keeps getting richer screwing honest working people !
WOW, Governor Scott, I think Back I Voted for YOU. NOT AGAIN. THANKS, Judge Fulford.
County worker you obviously were overpaid for ten years, No for the rest of you, I’m tired of all the handouts especially in the school system.
Activist judge=one who makes a ruling I don’t agree with. That judge didn’t overstep her bounds, Gov. Scott, you did. Again.
I sure wish that William would let me say what I think Gov. Scott and that Hairdopelopis(Or however you spell his name) is. I have to be nice, so let’s just say I would love to put some boxing gloves on with either of these clowns for just 10 seconds each, that’s all I would need. On the other hand, I am Glad that we have Judges that keep tyrants from doing as they please without reguard to the law.
REGARDING:
“I would love to get the 3% back, but not at the expense of more cuts. I would rather pay the 3% than lose jobs.”
That is a very noble decision regarding what you want to do with your own money. Now if all people who had their contractual obligations gutted by the action decide to do the same thing, it won’t matter. Of course, that doesn’t guarantee folks will or won’t lose jobs.
In the absence of full agreement by all who were affected, we have the situation in which the state promised to pay its workers a certain amount and then decided to pay 97% of what was agreed. Individually, it’s only stealing three cents per dollar of what was agreed. Collectively, it’s stealing $861,000,000 per year. Not bad if you’re not worried about laws and morals — which I guess they aren’t since they still plan on appealing as long as possible.
Look at it this way: either result will show people the government’s word is unreliable and uncertain. Interesting that they would call judges “activists” who call on them to obey the law. I guess it seems like a strange concept to them.
David for lawful actions
by law makers and law enforcers
But Fulford’s ruling still touched off a round of speculation about how lawmakers could find the money if it came to that. How can this be if the money is to sure up the Retirement system? Just proves it is a tax on public employees!!!!!!
You got the short end of the stick when you el;ected the fools you elected. A contract is a contract, and even fla republicans have to abide the contracts they sign. FLA GOP gods faila again!!
As a county worker, I wish people would quit calling us ignorant, stupid, lazy, and greedy. I have a bachelors degree, just like teachers do. I have not received a cost of living raise or any other kind of raise since 2009. I topped the pay range for my job over ten years ago. However, the cost of living goes up each year. Minimum wage has increased by what $2 dollars or more an hour? That’s $80 a 40 hour work week. And in Florida, minimum wage goes up each year. County, State, and Teachers do not have that benefit. We see the cost of our insurance go up, the cost of our copays go up, the cost of our housing insurance, and the cost of the gas to get to work. And the public cries everychance they get we make to much money. If we aren’t here, who will teach your kids? Who will come when you have fallen and can’t get up? If your in a wreck, who is going to take the call and send lifeflight? Who is going to keep up with who owns what property? If you want to deed property to your kids, who will record those deeds for you? Those overpaid, underappreciated, county, state, and teachers who you think are ruining Florida.
I would love to get the 3% back, but not at the expence of more cuts. I would rather pay the 3% than lose jobs.
Taxpayers get the short end of the stick again.
Excellent news! Thanks to Ron Meyer ,and Judge Fulford