California’s state and local government pension and health costs for retirees are a hot political issue that should be a concern for small businesses around the state. As public pensions continue to take more and more from government budgets, services will be cut. Small businesses will face the threat of losing services or facing higher taxes to pay for the pension and health care costs.
In a keynote presentation on Oct. 15 at the 40th annual Ventura County Economic Development Association business outlook conference, Fox said reforms take place in waves that can take decades to enact. Fox, the former head of the Howard Jarvis Taxpayers Association, said property tax issues surfaced for decades before Proposition 13 passed in 1978.
The Small Business Action Committee sponsored a study showing that California public sector employers have been among the biggest beneficiaries of the workers compensation reforms passed in 2004. The study was released in September 2007.