Senator Moorlach (R-Costa Mesa) issued the following statement in response to Governor Brown signing Senate Bill 1234, which creates a bureaucratically run, government mandated, savings plan:
“As a trained Certified Public Accountant and Certified Financial Planner, I believe that encouraging people to save for their future is critical. But having a state bureaucracy intervene by requiring certain employers to withdraw funds from employee wages is not a core mission of government. Additionally, there are no safeguards prohibiting SB 1234 from drifting from its intended purpose in the future.
"You can anticipate that this ‘secure’ investment has the potential to morph into a massive boondoggle and may become more expensive in meeting investor expectations during the inevitable next economic downturn. SB 1234 has no provision from using taxpayer funds to go towards a bail out.
“The LAO recently stated that, ‘the fiscal impact of SB 1234 is subject to considerable uncertainty.’ Not to mention, the cost to start this program is very high. It’s critical that Californians prepare for the future and retire with dignity, but SB 1234 is not the avenue to accomplish that.
"This bill puts too much pressure on the state’s tax-paying businesses with owners that have already been shocked by the raise in the minimum wage this year. And thanks to SB 1234, employees will soon feel the same shock to their personal budgets.
“It’s irresponsible to push an onerous, overbearing, and intrusive ‘do good and feel good’ social program when California is in an admitted pension crisis, has some of the poorest road conditions in the nation, and is funding a costly high-speed rail project. I urged a no vote on Senate Bill 1234 twice on the Senate Floor. And, today, I shake my head at the burdensome mandate that is Senate Bill 1234.”