The World Around You

Matt Drudge notes a Wall Street Journal report that Roy Disney has resigned and is calling for Michael Eisner to step down,

Disney, nephew to the late Walt Disney, sent Eisner a three-page letter severely criticizing his leadership during the past seven years:

‘It is my sincere belief that it is you who should be leaving and not me,… Accordingly, I once again call for your resignation or retirement.’

WSJ reporter Bruce Orwall writes that in his letter Disney said that Eisner deserved credit for a successful first decade after taking the helm at Disney in 1984. But he then detailed seven areas in which he said Mr. Eisner has failed the company in the past seven years.

The list of complaints included everything from the performance of the struggling ABC broadcast networks and Disney theme parks to Mr. Eisner’s reputation for “micro-management of everyone around you.”

The resignation comes in advance of a Disney board meeting this week. Mr. Disney’s letter seems to indicate that the Disney board’s nominating committee had decided to leave his name off the slate of directors to be elected for the coming year. Mr. Disney also indicated that he would also resign from his position as chairman of Disney feature animation.

A Disney spokeswoman initially declined to comment.

A shake-up is overdue, but I would question whether Eisner will step aside. He still views himself as a player and does not yet want to relinquish the throne.

Kevin has announced the 2003 Weblog Awards. Look for the nomination post on Monday December 1st.

Can the legislature stand up to Paul Hubbert and the Alabama Educational Association? Can they stand up to Mac Macarthur and the Alabama State Employees’ Association? Their main source of power is political influence and if some of the ideas published in today’s Birmingham Newsever come to fruition, it could mean the end of that political influence has come as well.

Alabama could raise $130 million a year if it taxed all pensions, according to the Legislative Fiscal Office.

Most states with income taxes do tax public employees’ pensions, partially or fully, according to a 2000 survey by the Wisconsin Legislative Council.

The state could save $204 million a year by stopping payment of cost-of-living pension increases given over the years to teachers and other state retirees. Such increases are not guaranteed by law.

Alabama cannot lower the pension amount promised a person upon retirement, but legally it could stop paying cost-of-living pension increases awarded since that person retired.

Alabama could save $52.64 million a year by requiring public employees to contribute 1 percent more of their salaries toward retirement.

Most of Alabama’s teachers and state agency employees contribute 5 percent of their pay, which is in line with other public pension plans, according to a survey by the National Association of State Retirement Administrators.

The state could save from $45.6 million to $79.2 million a year by adopting rules some states use for when people can qualify for a normal pension.

Before the mid-1970s, a teacher or state worker in Alabama had to be at least 60 to get a normal pension, with no penalty for early retirement. Lawmakers in 1975 changed the requirement to 30 years’ service, regardless of age. They changed it to 25 years’ service, regardless of age, in 1988.

Members of Riley’s commission asked Reynolds to figure the savings if Alabama switched to a rule-of-80 or rule-of-90 system.

Under such systems, a person can qualify for a normal pension if his or her age plus years of service equals a target number; 80 and 85 are common.

Mind you, none of these are proposals, they are simply ideas that were presented to a commission appointed by the Governor to come up with cost-saving ideas.

My family would be hurt doubly if any of these changes went into effect, but I am the first to acknowledge that everything should be on the table. What the Governor’s Commission needs to remember as well is that many cost-of-living increases were deferred in exchange for keeping benefits where they are. If salaries are brought into line with the regional or national average, then I have no problem with bringing every thing else into line as well. This would not save as much money in the short term, but would put the state on much firmer financial ground for the long haul.

I had a wonderful Thanksgiving weekend, but I have had serious blogging withdrawl. Back to the grind on Monday morning. I hope you had a wonderful holiday as well.