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Taxpayer dollars for electioneering?

October 11, 2011 By Leave a Comment

FOR IMMEDIATE RELEASE: October 11, 2011
CONTACT: Daniel Scarpinato

Are taxpayers subsidizing campaign work for Greg Stanton? 

PHOENIX – Do you need a clearer sign of wasted and misused taxpayer money?

With a proliferation of street signs paid for by public-employee unions popping-up all over Phoenix and $3.7 million of Phoenix taxpayer dollars going to pay city employees to work exclusively for labor unions, the question remains: How much of Phoenix taxpayers dollars are subsidizing Greg Stanton’s campaign for Mayor?

A recent report by the Goldwater Institute found that Phoenix taxpayers are paying an average of $3.7 million for public employees to do union work. These contracts were supported by Stanton during his nine years on the Phoenix City Council. Union members are being released for more than 73,000 hours of time to conduct union business on the taxpayers’ dime – and those same unions are apparently using taxpayer supplemented funds to support and campaign for Greg Stanton.

In recent days, union signs supporting Stanton have gone up all over town. Additionally, there are reports that union members are walking door-to-door campaigning for Stanton.

1) Are they being paid by taxpayers to knock on doors for Greg Stanton?

2) Are union members getting paid by taxpayers to put up signs for Greg Stanton?

3) Are taxpayer dollars subsidizing union functions to free up money for Stanton’s signs?

No wonder the union supported candidates have been elected Mayor time and again.

No one has asked these tough questions. But it’s time for some answers.

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Filed Under: Campaigns & Elections, City Government, Taxation Tagged With: , , , ,

Stanton: Punish Private Property Owners

October 7, 2011 By 4 Comments

FOR IMMEDIATE RELEASE: Oct. 7, 2011
CONTACT: Daniel Scarpinato

More tax-and-spend proposals from the status quo candidate

PHOENIX – Career-politician Greg Stanton wants to institute a penalty on Phoenix private property owners who cannot afford to develop their land in a down economy – land they are already paying taxes on.

“Having those empty lots really hurts the quality of life. Those property owners should pay a penalty for that … It shouldn’t be free,” Stanton said at Wednesday’s night debate.

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Actually, it’s not free. Property owners are already paying a 16 percent assessment ratio on vacant land. And that’s not including various other property taxes that are levied by other jurisdictions the land resides in.

Additionally, Phoenix is struggling through one of the deepest economic recessions in the country. We’ve lost more than 250,000 jobs and the housing and commercial real estate markets have collapsed, making it difficult – if not impossible – for property owners and private developers to move forward with plans they had prior to the downturn.

Office vacancy in Phoenix has reached a high of nearly 30 percent.

Stanton’s fine would make matters worse.

“Maybe Greg missed a few things after he quit his job on the City Council, but in 2008, the real estate market collapsed and has yet to recover,” said Gullett spokesman Daniel Scarpinato. “This is just one more example of how Greg Stanton wants to grow government and increase its control over business, even at the expense of private property rights. There’s a clear distinction between Greg’s growing government approach and Wes Gullett’s plan to cut taxes and reform City Hall.”

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Filed Under: Campaigns & Elections, City Government, Press Release Tagged With: , , , ,

Sheriff Babeu endorses Wes Gullett for Mayor

October 7, 2011 By Leave a Comment

FOR IMMEDIATE RELEASE: Oct. 7, 2011
CONTACT: Daniel Scarpinato

“Wes Gullett understands that the most sacred responsibility of city government is public safety.” 

PHOENIX – Pinal County Sheriff Paul Babeu, the national “Sheriff of the Year,” has endorsed Wes Gullett for Mayor, saying he’s the only candidate who will fight illegal immigration and enforce the rule of law.

“Wes Gullett understands that the most sacred responsibility of city government is public safety. He’ll work with us, not against us, to enforce the rule of law and fight illegal immigration, especially the organized crime that is fostered by human smuggling and the drug cartels,” Sheriff Babeu said.

“I’m honored to have the support of Sheriff Babeu. Pinal County is the leading pass-through for drug gangs and human smugglers into Phoenix. I look forward to partnering with him and other law enforcement officials to enforce our laws and keep Phoenix safe,” Gullett said.

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Filed Under: Campaigns & Elections, Elected Officials, Endorsements, Press Release Tagged With: , , , ,

Stanton on his unethical behavior: “A few slips”

October 6, 2011 By 1 Comment

FOR IMMEDIATE RELEASE: October 6, 2011
CONTACT: Daniel Scarpinato

If elected Mayor, will Greg Stanton continue his practice of profiting from clients with business before the city? 

PHOENIX – How does Greg Stanton explain the fact that he used his position on the Phoenix City Council to benefit a client that was subsidizing his personal income?

“A few slips,” he said as a flippant excuse at last night’s mayoral debate.

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Really? A few slips?

Not according to the Arizona Republic:

  • The newspaper reported that Stanton was paid $80,000 by Maricopa Community Colleges from 2003 until at least 2007, while at the same time “supporting college interests on the council.” [Arizona Republic, "Pair Deny Impropriety in City, College Jobs," June 7, 2007]
  • “Stanton also used city email, newsletters and meetings to talk up partnerships among Phoenix, the Maricopa colleges and Arizona universities,” the Republic reported.
  • While getting paid by his client, Stanton made sure to put himself in positions where he could have influence over pet college causes. He chaired the council’s education committee and sat on the panel advising GateWay Community College.
  • Stanton wasn’t shy about the association, even if it ran afoul with state ethics laws. Incredibly, Stanton actually used his “City Hall office to conduct or solicit college work.” “State law prohibits elected officials from promoting the interests of outside employers and using their position to seek private gain,” according to the Republic.
  • A representative of the colleges admitted “there are advantages in having a policymaker” as their paid consultant.
  • It’s not clear whether Stanton ever stopped these practices before quitting his job on the Council. Once caught, Stanton actually defended the unethical practices, despite an outside expert telling the Republic, he was “not acting impartially.”

“Greg Stanton admits he let his ethics ‘slip’ through the cracks for at least four years. What else will he let slip through the cracks and into his pockets if he’s elected mayor?” said Gullett spokesman Daniel Scarpinato.

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Filed Under: Campaigns & Elections, City Government, Media, Press Release Tagged With: , , , ,

The Reformer vs. The Status Quo

October 5, 2011 By 11 Comments

FOR IMMEDIATE RELEASE: October 5, 2011
CONTACT: Daniel Scarpinato

Gullett offers a reform agenda; Stanton offers more big government

PHOENIX – Wes Gullett continued to demonstrate at tonight’s debate – hosted by Valley Leadership, the Arizona Republic, Channel 12, Cox Communications and SCF Arizona – that he’s the only candidate for Mayor committed to reforming city government and protecting taxpayers.

Career-politician Greg Stanton, on the other hand, once again confirmed his commitment to big government, protecting the status quo and dodging the tough questions.

“Wes Gullett will fundamentally change the way Phoenix does business. He’ll have a laser focus on jobs. He’ll cut red tape,” said Gullett spokesman Daniel Scarpinato. “Greg Stanton? He made clear he wants to continue to advance the big government, big spending, business-as-usual agenda that defined his nine years on the City Council.”

The differences between the candidates are stark:

  • Wes Gullett has a Seven Point Jobs Plan that will create jobs and grow the economy; Greg Stanton is offering a job-killing agenda of more government and higher taxes.
  • Wes Gullett will immediately repeal the food tax and pay for it; Greg Stanton wants the $50 million tax to stay in place and continued to make excuses for taxing Phoenix families who are struggling.
  • Wes Gullett will cut the union contracts that are giving $3.7 million of taxpayer money to fund political and lobbying work; Greg Stanton supported those contracts while on the City Council and after a blockbuster report from the Goldwater Institute, Stanton took weeks to even acknowledge that problem exists – only commenting after Gullett called on him to do so.
  • Wes Gullett will stop the automatic water rate increases; Greg Stanton voted for water rate increases before quitting his job on the city council and has promised to continue raising them.
  • Wes Gullett has released a comprehensive pension reform package that would transition city employees to a 401K resulting in substantial long-term savings; Greg Stanton has trashed the idea and wants to bury his head in the sand while government employees continue receiving better benefits than the taxpayers who fund those benefits receive.
  • Wes Gullett has released a comprehensive Government Reform Plan that would cut taxes, fees and red tape; Greg Stanton has proposed dozens of ways to grow the size of government and has offered no way to pay for them.

“Wes Gullett wants a government we can afford; Greg Stanton wants a government we can never afford, unless we smother Phoenix families under soaring taxes and fees,” said Scarpinato. “Phoenix voters have a clear choice between the reformer and the status quo.”

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Filed Under: Campaigns & Elections, City Government, Government Reform, Press Release, Spending, Taxation Tagged With: , , , ,

Phoenix Mayoral Candidate, Greg Stanton: The conflict of interest expert

October 5, 2011 By 4 Comments

FOR IMMEDIATE RELEASE: October 5, 2011
CONTACT: Daniel Scarpinato

Stanton used his elected office and taxpayer resources to benefit client 

PHOENIX – Career-politician Greg Stanton likes to talk about conflicts of interest.

It’s no wonder. He’s an expert at them.

As a city councilman, Stanton voted and used the resources and power of his elected office to benefit a client he was getting paid by – and for nearly half of the time he was on the City Council.

For at least four years, Stanton was paid $80,000 by Maricopa Community Colleges for a no-bid contract while supporting issues that benefited his employer, according to a 2007 story in the Arizona Republic.

“Stanton also used city email, newsletters and meetings to talk up partnerships among Phoenix, the Maricopa colleges and Arizona universities,” the Republic reported. In addition, Stanton used his City Hall office to conduct or solicit college work. “State law prohibits elected officials from promoting the interests of outside employers and using their position to seek private gain,” the Republic reported.

And Stanton actually defended the questionable practices, despite an outside expert telling the Republic, he was “not acting impartially.”

“Greg Stanton has a record of using his position on the City Council to benefit his client and line his own pockets,” said Gullett spokesman Daniel Scarpinato. “How do Phoenix voters know that Greg Stanton won’t abuse his power again if he’s elected Mayor?”

Stanton has a record of being a certified hypocrite. He resigned his job on the City Council to take a top-paying job as a taxpayer-funded lobbyist. He’s taken more than $100,000 in campaign contributions from lobbyists. And in his last year of office alone, he voted to appoint at least 10 lobbyists to city boards and commissions, despite now saying he’s against the practice.

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Filed Under: Campaigns & Elections, City Government, Press Release Tagged With: , , , ,

Wes Gullett: Map hurts Phoenix

October 3, 2011 By 26 Comments

FOR IMMEDIATE RELEASE: October 3, 2011
CONTACT: Daniel Scarpinato

PHOENIX – Mayoral candidate Wes Gullett released the following statement today in regards to the proposed map up for consideration by the Arizona Independent Redistricting Commission:

“When Arizona voters created the Independent Redistricting Commission they charged that the Commission consider ‘communities of interest’ as one of the top priorities in drawing new Congressional and Legislative lines. If Phoenix, the largest city in the state and the sixth largest city in the country, is not a community of interest, I don’t know what is. The draft map released by the Commission takes Phoenix and slices and dices its residents into a cadre of proposed congressional districts. This map uses Phoenix residents as filler for other communities in an attempt to gerrymander the statewide map for political benefit. Phoenix residents deserve representation in Congress and a voice in elections as much as any other community in the state. The proposed approach robs them of that opportunity and would greatly weaken the involvement of Phoenix voters. I urge you to reject this proposal and adopt one that takes into account the City of Phoenix as an important ‘community of interest.’”

Filed Under: Campaigns & Elections, City Government, Political Parties, Political Science, Press Release, State Government Tagged With: , , , ,

New Jersey Governor Chris Christie endorses Wes Gullett for Phoenix Mayor

September 28, 2011 By 7 Comments

FOR IMMEDIATE RELEASE: September 28, 2011
CONTACT: Daniel Scarpinato

Nation’s leading government reformer says “Reform does not come easy” 

PHOENIX – In his quest to reform city government and fundamentally change the way business is done at City Hall, Wes Gullett has won the endorsement of the nation’s leading reformer – New Jersey Gov. Chris Christie.

“I have been working to reform New Jersey. I know that Wes Gullett has a reform plan for Phoenix that will bring important changes to city government to jump start economic growth,” Governor Christie said. “Reform does not come easy. Entrenched interests will fight hard against reform. I hope that you will stand tall for Wes. Cast your vote for him and tell your friends and neighbors that now is the time to make a difference.”

“I am truly honored to have the endorsement of a true reformer like Governor Christie,” Gullett said. “Governor Christie’s straight-talk and unwavering quest to change the status quo in his state is a model for how I would approach governing here in Phoenix. We can’t afford to keep doing things the way we’ve been doing them.”

Watch the endorsement video:

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Gullett and Christie met in Phoenix late last year at a Goldwater Institute event where Christie spoke about his reform agenda in New Jersey. Gullett shared with Christie his reform ideas for Phoenix.

Since that time, Gullett has released comprehensive plans to reform Phoenix city government and save money, including cutting red tape, reforming public pensions and a Seven Point Jobs Plan.

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Filed Under: Campaigns & Elections, City Government, Elected Officials, Endorsements, Press Release Tagged With: , , , ,

Gullett to Stanton: Stop supporting union abuse

September 27, 2011 By 2 Comments

FOR IMMEDIATE RELEASE: September 27, 2011
CONTACT: Daniel Scarpinato

PHOENIX – Mayoral candidate Wes Gullett is calling on career-politician Greg Stanton to stand up to the entrenched interests at City Hall and join him in pledging to end the abusive union contracts that are wasting $3.7 million a year by letting city employees do union, lobbying and political work instead of their jobs – contracts Stanton has supported.

A blockbuster report released last week by the Goldwater Institute found that Phoenix taxpayers are shelling out roughly $3.7 million a year for city employees to conduct union business instead of doing their jobs. In total, city employees are being released for more than 73,000 hours to conduct union and political business – not the peoples’ business. The same public-employee unions benefitting from those contracts have endorsed Stanton.

“Phoenix’s next mayor should be accountable to the taxpayers – not to public-employee unions,” Gullett said. “As a councilman, Greg Stanton voted to raise water rates, raise parking meter rates and raise fees, all while wasting millions of dollars on contracts for union organizing, lobbying and political activities. Instead, I urge Greg to pledge to stop wasting millions a year by letting unions abuse the public’s trust. Greg should do the right thing and stand up for Phoenix taxpayers, not the entrenched interests at City Hall who are supporting his campaign.”

According to the Goldwater report, “collective bargaining agreements with seven labor organizations require the city to pay union officers and provide members with thousands of additional hours to conduct union business instead of doing their government jobs.” The report finds that “public-employee unions still wield outsized influence on elected officials – and they are using that power to feather their own nests.”

To read the statement Gullett released the day the report was released, click here.

Stanton has been silent and was silent during his nine years on the City Council.

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Filed Under: Campaigns & Elections, City Government, Jobs/Labor, Press Release Tagged With: , , , , ,

Hypocrisy Alert! Stanton was for lobbyists before he was against them

September 26, 2011 By Leave a Comment

FOR IMMEDIATE RELEASE: September 26, 2011
CONTACT: Daniel Scarpinato

PHOENIX – Career-politician Greg Stanton has made banning lobbyists from city boards and commissions the central issue of his campaign for Mayor of Phoenix.

But Stanton – himself a former taxpayer-funded lobbyist – didn’t seem to mind the practice during his nine years on the City Council, when he regularly voted to appoint lobbyists to boards and commissions.

On his Web site, Stanton says: “City boards and commissions should be made up of concerned citizens whose only interest is the wellbeing of our city, rather than private gains and profit.” [Source: greg2011.com]

Interesting, because for nearly a decade, Stanton voted to do exactly what he is now condemning – and then quit his job on the council to take a job as a lobbyist.

In Stanton’s last year of office alone, at least 10 registered lobbyists were unanimously appointed by the council to boards and commissions [Source: Formal city council meeting minutes, 2008]. Stanton never raised the issue once.

What’s more, as of the prior reporting period, Stanton has taken more than $100,000 in campaign contributions from registered lobbyists and has several serving as top figures in his campaign.

“Not only was Greg Stanton himself a registered lobbyist, but he’s also clearly a certified hypocrite,” said Gullett spokesman Daniel Scarpinato. “Because of his shaky record and weak positions, Greg Stanton is in desperate need of a sound bite. But his faux outrage on this issue is just the latest example of Greg Stanton’s record not matching his rhetoric.”

Stanton has made this issue the center point of his campaign. Just how a big of a “problem” is this? Currently, there are less than 30 registered city lobbyists on boards and commissions, representing 3 percent of the nearly 800 people volunteering for such positions.

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Filed Under: Campaigns & Elections, City Government, Elected Officials Tagged With: , , , ,

Jon Kyl endorses Wes Gullett for Mayor

September 23, 2011 By 2 Comments

Says Gullett is committed to job creation 

PHOENIX – Wes Gullett is proud to announce the endorsement of Arizona Sen. Jon Kyl, the latest addition to a broad, bipartisan coalition aimed at cleaning-up Phoenix City Hall.

“Cities can do a lot to provide a climate in which businesses can create jobs and put people back to work,” Kyl said. “Wes Gullett is committed to that goal and that’s why I support him for Mayor.”

“Jon Kyl is a statesman who has committed his career to making Arizona a better place and America a safer and more prosperous place,” Gullett said. “I’m truly honored to have his support in our effort to create jobs and clean-up City Hall.”

Gullett has won the support of a leaders including: U.S. Senator John McCain; Arizona Governor Jan Brewer; former Republican Congressman John Shadegg; Phoenix City Councilman Sal DiCiccio; Phoenix City Councilman Tom Simplot; Tempe Mayor Hugh Hallman; businessman and former Democratic gubernatorial nominee Eddie Basha; businessman, former Phoenix mayor and former Democratic gubernatorial nominee Paul Johnson; former Republican Governor Fife Symington; Republican Corporation Commissioner Bob Stump; attorney and former Mayoral candidate Jennifer Wright; and many others.

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Filed Under: Campaigns & Elections, City Government, Elected Officials, Endorsements, Press Release Tagged With: , , , ,

Wes Gullett releases plan to cut red tape

September 22, 2011 By 5 Comments

FOR IMMEDIATE RELEASE: September 22, 2011
CONTACT: Daniel Scarpinato

PHOENIX – Wes Gullett released his “Less Red Tape Means More Jobs” plan this morning, the centerpiece of which is a plan for same-day permitting.

Under Gullett’s plan (attached), a qualified customer can walk into the city and, meeting the requirements, walk away with a permit on the same day. The plan was unveiled at Copper Star Coffee, a local business that has faced significant challenges in obtaining permits in a timely fashion under the city’s current process.

The plan is supported by four current council members: City Councilmen Sal DiCiccio, Tom Simplot, Bill Gates and Jim Waring, who all appeared with Gullett at today’s press conference to support his plan.

“The City of Phoenix must be ready to move with agility to help our business and community partners get back to work – not stand in their way,” said Gullett. “Streamlining government, reforming the permitting process and updating city regulations and procedures to move plans through the pipeline will dramatically reduce the time and cost of doing business in Phoenix.”

In addition to same-day permitting, the Gullett plan calls for all city departments to engage in a top to bottom review of all regulations and delete those that are unnecessary; a comment period and sunset review on all regulations; consolidating the Planning and Development Services Departments with the Economic Development Department to allow for more direct and immediate support for small businesses; expanding online services for permitting and business services; establishing a single point of contact for major development projects; updating zoning ordinances; and reducing permitting fees.

“The importance of this plan and what it means for jobs, productivity and business could not be clearer,” Gullett said. “We must lead on these issues and build a foundation on rock – not sand. Otherwise, Phoenix will find itself continuously falling behind other cities that are making reforms to ensure economic development. We cannot afford the status quo.”

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Filed Under: Campaigns & Elections, City Government, Entitlements, Government Reform, Press Release, Regulations Tagged With: , , , , , , ,

No-Show Stanton!

September 21, 2011 By 1 Comment

FOR IMMEDIATE RELEASE: September 21, 2011
CONTACT: Daniel Scarpinato

Career-politician evades questions, cancels afternoon radio debate

PHOENIX – Last night, career-politician Greg Stanton continued his perpetual habit of evading tough questions and running from his record, namely raising water rates and favoring higher taxes.

Today, he’s ducking out of a pre-scheduled debate.

Both Stanton and Wes Gullett agreed to a live hour-long radio debate on KFNX 1100 AM, scheduled for this afternoon at 4 p.m. But Stanton has now backed out. Gullett still plans to attend and answer questions on-air.

“What is Greg Stanton afraid of? That voters will actually judge him on his record of raising water rates and growing the size of government?” said Gullett campaign spokesman Daniel Scarpinato. “Wes Gullett has put forward specific plans for how he will reform city government and get Phoenix working again. Greg Stanton is just another career-politician who won’t even answer questions.”

Stanton’s no-show follows his inability to answer simple questions directly at last night’s debate.

Stanton danced around the issue of whether he would repeal the food tax, eventually admitting he would not do so immediately, as Gullett has pledged.

But Stanton’s evasiveness was on greatest display in answer to a question on water rate increases (http://www.youtube.com/watch?v=aWRCwfoCicU), which Stanton supported while on the City Council for nine years. After filibustering and providing a non-answer, Gullett asked Stanton directly: “I guess that means you were for it?”

Stanton sat silent for several seconds, looking down at the table, before looking up and only saying: “I have a record.”

Gullett is against further water-rate increases.

“Greg Stanton can’t run from his record,” Scarpinato said. “He might not want to show up for debates, but voters are learning more and more about Greg Stanton’s job-killing plans to raise taxes and increase the size of government.”

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Filed Under: City Government, Debates, Press Release Tagged With: , , , ,

UNION INVESTIGATION: Wes Gullett calls for an end to taxpayer subsidies for labor activity

September 21, 2011 By 1 Comment

FOR IMMEDIATE RELEASE: September 21, 2011
CONTACT: Daniel Scarpinato

Career-politician Greg Stanton is beholden to every major public-employee union 

PHOENIX – On the heels of an investigation released by the Goldwater Institute today, Mayoral candidate Wes Gullett says if elected, he will end the practice of using taxpayer dollars to subsidize union activities. And he’s calling for greater transparency and oversight to stop these abuses from happening again.

“This is just more evidence of why we need top to bottom reform in city government,” Gullett said. “The status quo isn’t working because of career-politicians like Greg Stanton. I’ll stand up for the taxpayers and end this kind of abuse. Greg Stanton is the poster child of the influence public-employee unions wield on elected officials and politicians. Greg Stanton has been endorsed by every one of the unions who are negotiating these outrageous contracts because he supported these abuses during his nine years on the city council and he’ll continue to support these abuses.”

According to the Goldwater report, “collective bargaining agreements with seven labor organizations require the city to pay union officers and provide members with thousands of additional hours to conduct union business instead of doing their government jobs.” The report finds that “public-employee unions still wield outsized influence on elected officials – and they are using that power to feather their own nests.”

The practice is costing Phoenix taxpayers roughly $3.7 million a year, and city employees are being released for more than 73,000 hours to conduct unions business – not the peoples’ business.

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Filed Under: City Government, Entitlements, Government Reform, Press Release Tagged With: , , , ,

Wes Gullett: ‘Status Quo Stanton’

September 20, 2011 By 3 Comments

FOR IMMEDIATE RELEASE: September 20, 2011
CONTACT: Daniel Scarpinato

Career-politician resists real pension reform

PHOENIX – Career-politician Greg Stanton continues to advocate for the status quo.

In a press release today, Stanton actually admits to opposing the idea of beginning to transition the city’s public pension system to a 401K in line with what workers receive in the private sector – part of a comprehensive pension reform package unveiled by Wes Gullett yesterday and a long-term solution to the growing public pension burden. And Stanton does so even as a city official he himself quotes says that long-term saving would be “substantial.”

In his nine years on the council, Stanton did nothing to reform the vulnerable pension system before quitting his job to become a taxpayer-funded lobbyist. And unlike Gullett, he has failed to put forward specific plans – other than recommending dozens of ways to grow government on his Web site.

“Greg Stanton actually thinks that Phoenix taxpayers should pay for top administrators at City Hall to get better benefits than they themselves could ever dream of receiving,” said Gullett spokesman Daniel Scarpinato. “While Wes Gullett is looking out for taxpayers and the long-term stability of the pension system, Stanton is clearly looking out for the entrenched interests at City Hall who are backing his campaign.”

In his editing of a quote in the Arizona Guardian from Deputy City Manager Rick Naimark, Stanton also fails to mention that Naimark says over the long-term that moving to a 401K-style system would result in “substantial” savings.

“Greg Stanton wants to kick the can down the road and resist real pension reform,” said Daniel Scarpinato. “Wes Gullett knows we need to have the courage to make real reform now if we are ever going to see long-term savings.”

The Gullett plan also eliminates egregious abuses like “double dipping” and so-called “pension spiking.” It raises the retirement age and increases employee contributions. Included in the Gullett plan is the elimination of a deferred compensation plan, commonly known as a second pension, which costs taxpayers $40 million a year.

Phoenix’s public pension system has become an unsustainable and growing burden on taxpayers. Taxpayers spend nearly $100 million a year to cover the unfunded liability of the employee pension program – a price tag that is growing.

A report released in April by the Goldwater Institute, titled “Defusing the Pension Bomb,” recommended that “new government employees should be place in a defined contribution (401K) plan” and outlines long-term savings.

“The only way to permanently end the egregious and very costly abuses so common to pension systems is to transition to a defined contribution (401k) system where employees own their own retirements and inside players can’t game the system,” said Byron Schlomach, the author of that report. “Claims that moving new employees to 401ks will cost the city ‘for 22 years’ are as true as the assumptions made to arrive at such a specific number. The fact is, defined contribution systems already save corporations millions and protect employees’ retirements at the same time; the same can be true for the City of Phoenix if fear doesn’t get in the way.”

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Filed Under: Campaigns & Elections, City Government, Entitlements, Government Reform, Press Release Tagged With: , , ,

Wes Gullett unveils needed pension reforms

September 19, 2011 By 3 Comments

FOR IMMEDIATE RELEASE: September 19, 2011
CONTACT: Daniel Scarpinato

Calls for moving to 401K, ending double-dipping

PHOENIX – Mayoral Candidate Wes Gullett unveiled a bold set of needed reforms to Phoenix’s public pension system today, including a call to begin transitioning city employees to a 401K-style retirement plan in line with the private sector.

The Gullett plan also eliminates egregious abuses like “double dipping” and so-called “pension spiking.”

Phoenix’s public pension system has become an unsustainable and growing burden on taxpayers. Taxpayers spend nearly $100 million a year to cover the unfunded liability of the employee pension program – a price tag that is growing.

Included in the Gullett plan is the elimination of a deferred compensation plan, commonly known as a second pension, which costs taxpayers $40 million a year – almost enough to cover the cost of repealing the city’s food tax. Gullett has called for the repeal of that tax.

Gullett pledged to make pension reform a top priority if elected, stressing that the reforms are necessary to save taxpayers from ever increasing unfunded liabilities and to ensure city employees have a sound retirement plan.

“Our leaders should be accountable to us – not to special interest groups,” Gullett said. “Our pension system is broken, unsustainable and filled with abuses. In order to protect taxpayers – and to live up to the promises we’ve made – we must have the courage to confront this issue.”

The Gullett plan is two-tiered, protecting the pension of current retirees, while making future changes that limit the unfunded liabilities taxpayers will otherwise have to pay for.

The reforms include:

  • Beginning to transition the city from a defined benefit plan to a defined contribution 401K-style plan
  • Raising the retirement age by two years
  • Increasing employee contributions to be more in line with other cities
  • Ending “pension spiking”
  • Eliminating “double-dipping”

“None of these initiatives will be easy, but doing nothing is not an option,” Gullett said. “This plan forward will most definitely prompt the same scare-tactics and fear-mongering we always hear from those who would rather see our pension system go bankrupt. But I promise to have the courage as Mayor to fight for these reforms and make sure they happen. Taxpayers can’t afford the alternative.”

The Arizona Republic has reported heavily on the problems with the public pension system. The newspaper reported in an 8-part series last year: “Even as local governments and the state are slashing budgets, Arizonans are propping up public-pension systems that allow civil servants to retire in their 50s, receive annuities that can exceed $100,000 a year, and collect pensions while staying on the same job.”

A copy of the plan is available here.

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Filed Under: Campaigns & Elections, City Government, Government Reform, Pledges, Press Release, Spending Tagged With: , ,

Support for food tax earns Greg Stanton the status quo stamp of approval

September 16, 2011 By 4 Comments

FOR IMMEDIATE RELEASE: September 16, 2011
CONTACT: Daniel Scarpinato

PHOENIX – It’s official! Career-politician Greg Stanton has been endorsed by nearly every big union group in the state – a distinction he’s earned thanks to his support for higher taxes, more spending and continuing the status quo.

The latest: The Arizona Guardian is reporting that Stanton is being endorsed by the firefighters union, who cite Stanton’s support for continuing the food tax as the reason.

“Greg Stanton is clearly beholden to big labor. His support for continuing the food tax when unemployment is at record levels is just more evidence that if elected Mayor, Stanton will go along to get along,” said Daniel Scarpinato, spokesman for the Gullett campaign. “Wes Gullett is firmly committed to repealing the food tax, and has a plan to reform city government and cut spending, while protecting public safety.”

A former city councilman, Stanton helped create the problems Phoenix is now dealing with. Then he quit his job on the council for a top-paying job as a taxpayer-funded lobbyist, leaving a mess behind for Phoenix residents.

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Filed Under: Campaigns & Elections, City Government, Elected Officials, Taxation Tagged With: , , , ,
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