The Oregon Supreme Court issued a ruling on Thursday harkening back to a basic playground rule: If you make a promise, you can’t take it back.
In a decision that will affect every public agency budget in the state, the court ruled that it wasn’t fair to go back on promises the state made years ago to its workers. The ruling reverses two controversial changes lawmakers made to the Public Employees Retirement System two years ago.
In 2013, lawmakers aimed to stop what they saw as a drain on the state’s budget by reworking the contracts of 100,000 retirees. The change cut annual cost-of-living increases promised as part of the workers’ pension benefits.
That change, along with a few others, was set to save the state about $1 billion in the 2015-17 budget. Today’s ruling means a big hole has opened up that agencies and local governments across the state will have to fill. …
Gary and Rudnick argued that the reforms were legal. They lost – although presumably they succeeded bringing in a lot of billable hours for HLGR, paid for with taxpayer money. The winning side was represented by longtime labor lawyer Greg Hartman, among others. Full decision here: