News Summary: 2 Calif. cities embrace pension cuts

AP News
Posted: Jun 06, 2012 4:18 PM

PENSIONS CUTS: Voters in two major California cities overwhelmingly approved cuts to retirement benefits for city workers in what supporters said was a mandate that may lead to similar ballot initiatives in other states and cities buried under mounting pension obligations.

THE PITCH: Public employee unions that aggressively fought the measures weren't able to overcome the simple message supporters used to attract voters in San Diego and San Jose: Pensions for city workers are unaffordable and more generous than many private companies offer, leading to reduced public services.

CONTEXT: Shrinking tax revenues are also responsible for service cuts.