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San Jose Mercury NewsA Wisconsin senator and state labor leader today joined local unions in San Jose to denounce a proposal by Mayor Chuck Reed and other council members to declare a fiscal state of emergency and seek a ballot measure to trim retirement benefits for current and future city workers.
Reed, whose proposal has drawn nationwide attention, said the declaration is needed as San Jose confronts a $115 million budget deficit, its 10th straight shortfall, half of which is driven by runaway pension costs. Closing the budget gap will require hundreds of job cuts for a second straight year, and deficits are projected into the future as retirement costs continue to soar.
But labor leaders argued today that Reed and other city officials are attempting to bypass employee unions and refusing to seriously negotiate with them about retirement benefits.
"It pushes the nuclear option," said Wisconsin state Sen. Spencer Coggs, who was among a number of Democratic senators who fled the state in an effort to stop Gov. Scott Walker from pushing a proposal to strip government unions of collective bargaining rights.
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