Just as President Bush is trying to reform Social Security by giving workers control and ownership over their own private accounts, Governor Schwarzenegger of California is trying to achieve similar changes for the pensions of California’s state government workers. Unbelievably, he’s being blocked by two elected officials from New York. That’s right, New York. Apparently, the New York state comptroller, Alan Hevesi, and New York City comptroller, William Thompson, aren’t busy enough investing New York pension funds and watch dogging the New York city and state finances. They’ve decided to stick their noses into a fight all the way on the other side of the country, trying to prevent Mr. Schwarzenegger from getting the Golden State’s fiscal house in order.

“The risk to the American economy is not from reform-minded public pension funds. It is from corrupt corporate managers,” Mr. Hevesi said in a quote provided in a press release Wednesday from the office of the California state treasurer, Phil Angelides. But with $300 billion under management, the California state pension funds are a powerful source of political interference in private enterprise. The California Public Employees Retirement System, Calpers, is such a bully that aides to Hevesi privately use it as a bogeyman, arguing it is better for Mr. Hevesi to be suing New York companies than Calpers. The Angelides press release also mentions Mr. Thompson as an opponent of the Schwarzenegger plan. What could possibly account for these New Yorkers getting involved in this West Coast fight? Maybe they are worried that Mr. Schwarzenegger’s ideas could spread to New York, giving workers here some more control over their own retirement funds – and eroding the power of the politicians.