The actions of the state’s third largest city will undoubtedly gain statewide, if not national, news. So when San Jose proposes major pension reform on the June ballot, the state will be watching.

The vote, which will impact the pensions of all city employees, is controversial. However, it will serve as a potentially pivotal moment for how the state views pension reform. In 2010, pension reform went ten for 11 on ballots, with only San Francisco rejecting changes to their employee benefits. But more could be at stake than just a one-time adjustment to pensions.

Divisive issues drive up voter turnout. With five seats on the city council also on the June ballot, the makeup of the council and thereby the approach that the city takes to problem solving, could be dramatically altered for the next four years.

From NBC Los Angeles:

Among the hundreds of races and issues on the June 5 ballot will be a proposal in San Jose to modify the city’s pension system.

“Pension reform,” as proponents call it, has taken on a life of its own in the past few years as an element of employee compensation.

In 2010 alone, eleven local governments asked voters either to reduce employee pension formulas or secure future voter approval for additional pension benefits.

Read the full article here.