On The Money: Pay Cut Protest

By Mike Luery

SACRAMENTO (CBS13) -- California is $28 billion in debt, but that hasn't stopped one State lawmaker from filing a claim for millions of dollars in back pay.

California lawmakers took an 18% hit to their wallets a year ago, thanks to a ruling by the California Citizens Compensation Commission. Now, one legislator is claiming that pay cut is illegal – even though it was triggered by an independent commission, approved by the voters in 1990.

If he's successful, Assemblyman Gilbert Cedillo, a Democrat from Los Angeles, could cost taxpayers an estimated $2.5 million in back pay. CBS13 asked Assemblyman Cedillo why he is pursuing this claim now, with California so deep in debt.

Cedillo told me, "It's very important as we make these important decisions that we're not leveraged, we're not bullied, we're not blackmailed."

But is it really blackmail for politicians to take a cut in compensation, especially when so many people in the private sector are out of work or taking home much smaller paychecks? Consider that legislators now make $95,000 a year.

Long distance lawmakers also get another $141 a day in espenses – that adds up to another $29,000 a year, tax-free. And California is the only state that provides automobiles to all lawmakers for unlimited use at subsidized rates, plus a gas card – another $5 million perk. So the protest over the pay cut doesn't sit well with government watchdog groups like Common Cause.

"It strikes me as pretty tone deaf," said Derek Cressman, the Regional Director of State Operations for Common Cause.

"People in California are hurting. We've got one of the highest unemployment rates in the country," Cressman told CBS 13.

CBS13 asked Assemblyman Gilbert Cedillo to respond.

"Some people would say that fighting pay cuts at this time when California has record unemployment, shows some sort of a political tone deaf for the legislature?" I asked.

"This is focused on the families of our district," Cedillo said. "We want to make decisions unencumbered. That's why we don't let lobbyists come to the floor."

Cedillo filed his claim against the California Citizens Compensation Commission, a panel that voters approved 18 years ago, so politicians couldn't set their own salaries.

"And so you're going forward even though this is an independent commission that was voted in by the voters?" I asked Cedillo.

"Yes," he said. "Precisely because we want them to comply with the will of the voters."

But 80% of California voters disapprove of the Legislature's performance, according to the latest Field Poll.

Visitors we spoke with at the Capitol told us Cedillo's claim for back wages probably won't help.

"They're trying to get it restored?" asked Martha DiPietro.

"I think not," she added. "I think that they already make enough."

For some lawmakers, the protest over back pay is an unnecessary distraction.

"An independent commission sets it," said Senator Mark Leno, the new Senate Budget Chair.

The San Francisco Democrat added, "They made the decision a year ago that we would have our salary and health care benefits cut by 18%. I think we should live with that."

The pay cut protest goes to the Victim Compensation and Government Claims Board for a hearing on January 20th, 2011.

If you see examples of questionable government spending, send us an e-mail to onthemoney@kovr.com. You can also follow On The Money stories in progress at
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