Commentary

CalPERS takes aim at contracting out

From Daniel Weintraub: CalPERS is close to adopting a policy that would restrict the state pension fund’s investments in companies that contract with public agencies to provide services, the Bee reports … Such contracts are viewed as a threat to public employee jobs. But using the power of the pension fund to punish law-abiding companies for saving the taxpayers’ money would be a new level of arrogance for CalPERS. Especially since most of the money in the fund comes from taxpayers to begin with. At some point these people have to realize they are courting a public backlash. Shame on Controller Steve Westly, who ran for office as a “new Democrat” but now condemns the private provision of public services in terms as vehement as any union boss. Among the elected officials on the board, only Treasurer Phil Angelides is quoted raising any objection.