PENSION WAR'S FIRST CASUALTY WILL BE TRUTH PUBLIC EMPLOYEES' UNIONS WILL USE MISINFORMATION TO DEFEND GAINS.

Byline: Jon Coupal and Richard Rider

AFTER years of having their way in the political arena, public employee union leaders are now on the defensive, victims of their own success.

Since given collective bargaining rights in the late 1970s, these union bosses have become accustomed to dictating the labor agenda through their use of union dues to elect lawmakers and local officials who would toe the union line. Because of scant opposition to their efforts to guarantee their members ``millionaire'' pensions at taxpayers' expense, there was little publicity and voters have been slow to catch on.

However, the labor bosses overreached. Recent revelations have exposed that some government entities are approaching the abyss of bankruptcy because of their inability to fund their pension obligations. These horror stories have awakened Californians to the threat to taxpayers and to public services.

When Gov. Arnold Schwarzenegger announced in his State of the State address that he would fight the unions on this issue, union headquarters around the state went to DefCon 3. It took the unions but a matter of hours to launch their massive disinformation campaign.

Here are some of the old canards about public pensions that have been trotted out by those defending the status quo:

Fallacy No. 1: Government employees are driven by some higher calling to serve the public. Their self-sacrifice should be rewarded.

The Truth: Most public employees go into government work because it pays quite well, has great job security and offers a host of generous benefits. James Buchanan won the Nobel Prize in Economics in 1986 for his research demonstrating that public employees and politicians, rather than working for ``the public good,'' work in their own self-interest - just like everyone else.

Fallacy No. 2: Since government employees are paid far less than their counterparts in private business, they are entitled to additional compensation in the form of medical and retirement benefits that will provide security in their golden years.

The Truth: Several decades ago, public employees generally were paid less than their private-sector counterparts. No longer. Today, government employees in the vast majority of job classifications earn considerably more than those in the private sector doing similar work.

Fallacy No. 3: Generous pension benefits are essential for government to recruit and retain quality workers.

The Truth: Since historically few public employees quit government positions after a few years on the payroll, and most ``public servant'' occupations have far too many qualified applicants per job opening, it is clear that taxpayers are paying government workers who are already strongly motivated to hold onto their jobs.

Fallacy No. 4: Generous benefits have helped to eliminate much of the need for public servants to solicit and receive bribes and partake in graft.

The Truth: In the United States, widespread bribery and graft were not a problem when pay and pensions were modest, and it is not a problem today with our opulent compensation payouts. Some politicians and employees still take bribes and graft - and always will. Most did not, do not and will not.

Fallacy No. 5: Most public employees retire on modest pensions.

The Truth: Some public employees live on modest pensions, particularly those who retired several years ago. But increasingly, due to union-backed changes in the law over the last seven years, public employees are retiring on lavish pensions.

Fallacy No. 6: By all means, let's discuss ways to improve our government, but let's not pretend that we can cut government spending - or cut the demand on future budgets - without getting less in return.

The Truth: Taxpayers can cut future government spending, or at least the rate of growth, and government would still be able to provide good quality essential services. While state and local government revenue in California is growing at a rate far in excess of inflation, government spending is growing even faster.

In the coming months, those with a vested interested in the status quo will use their substantial financial resources to spread disinformation about pension reform and to instill fear in the hearts of current retirees and employees. But those of us who are concerned about the future of California can take heart. The truth is on our side.