Re “San Diego reins in road repairs, expects ‘significant declines’ in street conditions” (May 1): To help balance the San Diego budget and allocate more funds for critical road repairs, the city should consider two key policy changes.
First, eliminate prevailing wage laws. These laws require that workers on city-funded projects receive wages based on union rates, driving up labor costs for public projects. Research by the Mackinac Center found that these laws can drive up construction expenses by 9%-15%, creating an unnecessary financial burden for taxpayers.
Second, restructure public employee pensions for new hires. The city could negotiate with labor unions a plan like the state of Utah, which offers a hybrid retirement plan that includes both a pension component and a 401(k)-style defined contribution plan. This change wouldn’t reduce retirement security but would start the city on a path of long-term fiscal sustainability.
By adopting these measures, San Diego can reduce its budget shortfall and redirect funds toward much-needed infrastructure improvements.
— Steven Bakalis, Scripps Ranch
