California Supreme Court makes privatization harder for local governments

Score another win for California's public-sector unions. Last year, the Orange County city of Costa Mesa moved to privatize a large swath of public services in order to reduce a deficit estimated at $15 million (largely because of pension and salary costs) for the upcoming fiscal year. When the city's employees association filed suit, the courts sided with labor, holding that Costa Mesa didn't have the authority to contract out for the work without following "the proper procedures" (which remained remarkably undefined).

In an effort to circumvent the courts, privatization advocates placed Measure V on this month's ballot -- a proposal that would have converted Costa Mesa into a charter city and freed it from the restraints on its employment decisions. Even in this relatively conservative corner of Southern California, the proposal was decisively defeated at the polls. Now, based on a new ruling out of California's Supreme Court, it looks like privatization efforts could become non-starters statewide.

From the Orange County Register:

The state Supreme Court declined Wednesday to hear an appeal by the city of Costa Mesa in a case against an employee union.

Also, the court denied a related request to strike an appeals court decision from case law.

That denial could have widespread effects in other California cities. As they seek to privatize services such as street sweeping to save costs, some municipalities may be blocked by this appeals court ruling, some legal experts have said. The appellate decision essentially prohibits the majority of cities from privatizing except for certain "specialized services" such as legal or financial functions.

This has the effect of "strengthening outsourcing protections for public workers across the State of California," a news release from the Orange County Employees Association said.

And weakening budget reform efforts statewide. The Golden State's death spiral continues apace.

California Supreme Court makes privatization harder for local governments

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