Board adopts response to civil grand jury 'Pension Tsunami' report after amendment; 8-2 vote

The San Francisco Board of Supervisors voted to adopt a resolution responding to the Feb. 2010 civil grand jury report titled "Pension Tsunami, the billion dollar bubble." The board amended its formal response to state that it "agrees with recommendation D1 and also acknowledges that it would require analysis before implementation," a change moved by Supervisor Chu and seconded by Supervisor Maxwell. The amended resolution passed on roll call, 8-2.

Supervisor Els(s)berg (recorded as Ellsburn in the hearing) said he would not support the resolution because he believes the mayor's office and the board are not adequately acknowledging the fiscal risks described in the grand jury report. "San Francisco's defined benefit plan retirement benefits are financially unsustainable without significant cutbacks in jobs and city services," he said, calling that first finding "incontrovertible." Ellsburn warned that rising pension contributions would outstrip other city spending and that without cuts, taxes or structural changes the city would face difficult choices.

Supervisor Chu clarified that the board's committee had left responses blank for further work and that during committee deliberations members agreed with certain recommendations while acknowledging the need for additional analysis. Chu moved an amendment to explicitly state agreement with recommendation D1 while recognizing it requires further analysis; the board adopted the amendment without objection and then approved the resolution as amended on roll call, 8 ayes and 2 noes.

The debate centered on the characterization of the grand jury's findings and whether the city's written response properly acknowledged short- and medium-term fiscal pressure from pension liabilities. The resolution as amended records the board's responses to the grand jury's recommendations and signals further work to analyze proposed pension changes before implementation.