Brown and BART

Governor Jerry Brown issued an order on Monday which would stipulate a 7-day investigation period to allow for continuing the running of the BART (Bay Area Rapid Transit) system while negotiations are ongoing. In June, the system was shut down for several days after the existing contract ran out. Obviously, this affected hundreds of thousands of riders each day during the strike.

After the investigation is completed, if an agreement isn't arrived at by then, the Governor, it is hoped, would call for a 60-day cooling off period, in order to allow for reasonable discussions between the union and the system, and to provide for an agreement amenable to all.

This problem is not unique to the Bay Area or to California. It is a problem for many municipalities and states as the cost to employ workers grows more and more prohibitive each day.

San Bernardino, Stockton, and Mammoth Lakes in California, and now Detroit, Michigan have had to declare chapter nine bankruptcy protection because the costs to honor salary agreements and especially, pension, medical and other non-salary benefits continue to climb, while revenues shrink. And there are other cities in California and across the nation which have explored or are exploring bankruptcy as an option to deal with the massive debt that has accrued over time.

Until now, these agreements were considered sacrosanct by the employees of the municipalities. The problem is that as the baby boomers began m to retire, the ability to fund these pensions and other contracted benefits became more difficult as the work force decreased. And these monies, which were supposed to be earmarked for specific purposes are not there because the funds may have been used elsewhere.

Governor Brown needs to be mindful that this will be an ongoing issue in years to come. When he served as Governor from 1975 to 1983, he was considered a fiscal conservative, even more so than his predecessor, Ronald Reagan. As he works through this issue with BART and the unions, he must insist on fiscal restraint by all parties.

Otherwise, it will be his fault that San Francisco and Oakland collapse. And he doesn't want that as his legacy.