DiCiccio spearheaded pension ballot measure
Initiative would address Phoenix’s pension debt
Ballot initiative would change how Phoenix calculates its pension debt and require excess general fund revenue to go toward paying down the debt.
In August, Phoenix voters will weigh in on a plan that supporters say will help alleviate the city’s growing multi billion-dollar pension debt.
A group dubbed Responsible Budgets — backed by Councilman Sal DiCiccio — submitted almost 50,000 signatures in January supporting a citizens’ initiative that would change how Phoenix calculates its pension debt and require the city to spend almost all excess general fund revenue to pay down the debt.
On March 6, Phoenix City Clerk Denise Archibald confirmed that the group submitted at least 20,510 valid signatures, enough to send the initiative to voters for the Aug. 27 election.
The initiative will appear on the ballot with another citizen’s initiative that would cancel all future light rail spending if passed.
What would the initiative do?
Phoenix has racked up more than $4 billion in pension debt — money it will someday owe to its retirees.
Phoenix has tried some creative and some controversial methods to manage the debt in the past, but the city still spends hundreds of millions of dollars each year paying down its debt.
Last year, the city spent $376 million. This year, it plans to spend $426 million.
Some say that’s not enough — they want the city to forgo what they deem unnecessary spending and catch up on its debt sooner.
That’s what this initiative would accomplish, according to proponents.
The initiative has four main elements:
❚ Requires annual assessments of pension debt based on a 10-year average rate of return on investments of pension systems.
❚ If the city has not funded at least 90 percent of its pension liability, it can only increase its budget to compensate for population growth or inflation. In other words, if there’s still pension debt, there can be no new city spending. Only public safety services are exempt from this limitation.
❚ Requires the city to spend any additional funding on pension debt.
❚ Ends pensions for City Council members.
Who’s behind Responsible Budgets?
Tim Mooney is the chairman of Responsible Budgets, according to city filings. He lists his employer as California-based political consulting firm Silver Bullet Group.
The treasurer of the group is Chuck Warren, the managing director of Wyoming-based public affairs firm September Group. DiCiccio’s Chief of Staff Sam Stone previously worked for September Group, according to Warren.
In an interview, Warren said that although his company is incorporated in Wyoming, he’s a parttime Arizona resident. He said Mooney is also an Arizona resident.
Warren said he’s watched pension debt pile up in cities and states across the country and came up with the idea to address the issue via ballot initiative a few years ago.
“I don’t know if this thing can win or lose, but it needs to be talked about,” he said. “I’m petrified of this (debt). I’m leaving a time bomb to my kids.”
Warren said he teamed up with DiCiccio, who crafted the ballot language and ushered it through the initiative process.
“This is really Sal’s initiative,” he said. According to campaign finance reports, Responsible Budgets raised $158,095 from two companies with Arizona addresses: Pass the Balanced Budget Amendment, Inc. and Morning in America.
Warren said Pass the Balanced Budget Amendment, Inc. is a nonprofit political organization and Morning in America is Mooney’s company. He said all of the money for signature gathering came from him, Mooney and DiCiccio.
The group so far has spent all of its money on signature gathering, according to campaign reports.
DiCiccio and Mooney did not return requests for comment.
Last year, the city spent $376 million. This year, it plans to spend $426 million. Some say that’s not enough.