Schwarzenegger takes reform agenda on the road to San Diego

By: SETH HETTENA - Associated Press Writer | Monday, April 11, 2005 9:04 PM PDT ∞

SAN DIEGO -- Seeking to regain momentum, Gov. Arnold Schwarzenegger took his reform agenda on the road Monday, leaving any mention of last week's retreat on his plan to fix the state's pension system behind in the capital.

His remarks in San Diego contrasted with Thursday's announcement from Schwarzenegger that he would delay his proposed ballot initiative to privatize much of California's public pension system from November until June 2006. The governor said "misconceptions" by firefighters and police officers that they could lose death and disability benefits had overwhelmed the issue.

On Monday, Schwarzenegger spoke before 400 employees at a San Diego defense contractor and signaled that he would not back down from his effort to reshape the public employee pension system.

"It's on a track to disaster," Schwarzenegger said as a large electronic display behind him showed the state's contributions to public employee retirements soared from $160 million in 2000 to $2.6 billion this year. "We have bring stability to the system."

Asked to clarify the governor's remarks, a spokeswoman said Schwarzenegger had listened to the concerns of "key stakeholders and interested parties" and decided to use the Legislature as a vehicle to accomplish pension reform. "He wants to be aggressive in pursuing it legislatively," spokeswoman Margita Thompson said.

In San Diego, Schwarzenegger spoke for 45 minutes at Science Applications International Corp., which contributed more than $21,000 to his election in 2003, according to campaign finance records. He fielded questions from four people picked by local Republican Party officials in the first "Ask Arnold" session since last fall.

Teresa Espinosa, a nurse practitioner in San Diego County, asked how the governor could justify holding a costly special election in November given the state's budget crunch.

Schwarzenegger conceded that the special election in November will cost about $50 million, but called it the best investment the state could make.

"We're going to save, I guarantee you, $5 billion for the state because of this election we're going to hold," the governor said, later asking for SAIC employees to sign his initiative petitions. He did not explain how the money would be saved.

The governor continued to rail against the "special interests" who are spending millions of dollars on TV ads to fight his reform agenda.

"You see the commercials on television, how they make it sound that if these reforms go through there will be a huge tidal wave coming that will wipe out the whole state of California," Schwarzenegger said. "That I'm unplugging old women from the life support system. And the kids will be thrown out of the schools."

Labor groups fear the system of forced individual investment accounts might dilute the power of the $182.9 billion California Public Employees Retirement Fund, the nation's largest with 1.4 million members.

Union protesters continued to dog the governor Monday. As they gathered on the sidewalk outside SAIC's headquarters, some said their protests were having an impact.

Schwarzenegger's approval ratings have tumbled as organized labor has battled him on his pension plan. A poll released Thursday from San Jose State University found the governor's job approval rating dipped below 50 percent for the first time since he took office.

"People are seeing Arnold for what he is," said Teferi Gebre, regional political director for the California Labor Federation AFL-CIO.

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