GRANTS - The local school employees' union, Cibola County Federation of United School Employees, has joined the state union in launching a petition drive to reverse recent state legislation requiring state employees and teachers to contribute 1.5 percent more to their pension fund.

The law went into effect July 1, the beginning of the state fiscal year.

Mark Clark, vice-chair of the political action committee of CCFUSE, said he considers the increased contribution a “wage tax” because the state will no longer be making its contribution to the fund.

“This will impact all district employees, including Superintendent Kilino Marquez and the economic ripple effects will influence all of Cibola County,” Clark predicted. “The Grants/Cibola County School District is the largest employer in the county, so the reduced spending power of employees will harm businesses and retailers in the whole area.”

Clark asserted that the reduced paychecks will have an economic multiplier effect of five. “The reduced spending power of the employees will amount to $84 million over a two-year period and the state economy will lose $420 million,” he said.

The union leader recognized the fiscal problems facing the state and said that the union had offered alternative ideas to the state to make up the shortfall.

“We suggested that the tax cut for corporations and the wealthy, passed in 2003, be repealed. That would raise $1billion from those who are not paying their fair share of taxes,” he explained.

The inequitable tax structure is often caused by out-of-state corporate reporting, the practice of companies establishing their main corporate offices in states with lower corporate tax rates.

The union also points out the number of exempt employees serving at the pleasure of the governor. Members approached the administration to “downsize” the number of exempt employees in order to save funds and avoid the increase in state employee contributions.

Also cited by the union is the practice of “double dipping,” which allows former retired state and local government employees to return to work for a public sector organization and continue to receive full benefits. There are about 2,000 retired employees currently engaged in this practice, costing the state retirement funds more in benefits.

Clark also charged mismanagement of pension funds by the state. “Our fund has lost $300 million when some of it was invested with Bernard Madoff and large third party finder's fees were paid to financial advisors,” he asserted. “The union wants fiscal soundness for our pension fund.”

Earlier this week Clark reported that Rep. Ken Martinez had agreed to support the education workers in a bill in the House of Representatives. “He agrees that he'd like to support the repeal of the law as long as nobody loses a job as a result. I told him that as a union, we also want to avoid anyone losing a job,” he said.

The pension proposal had apparently been rolled into House Bill 2, which is the general budget bill, according to Clark.

Clark related that the petition drive began in Albuquerque last Monday and had garnered 3,000 signatures as of Wednesday. The local is planning a meeting for July 22 at 5 p.m. at the headquarters at 1004 High St., behind Napa Auto Parts, to launch the Cibola County efforts. “We'll be distributing petitions around town and anyone of voting age is qualified to sign it,” Clark commented. He added that already 40 petitions have been returned among more than 200 already circulated.

“Everyone in the school district, including administration at district office, is excited about this effort,” Clark concluded.

For more information, call Mark Clark at 287-9773 or ccfuse_mark_clark@yahoo.com.