Local elected officials from communities across California have signed a coalition letter opposing AB 1383 (McKinnor). The signatories — from city council members to school board trustees — have direct experience overseeing local budgets and understand the long-term fiscal challenges that rising pension costs can create for cities, counties, school districts, and other local agencies. In...
As the United States celebrates the semiquincentennial of its founding in 1776, it is worth reflecting on a remarkable historical coincidence: the birth of our nation occurred the same year Adam Smith published An Inquiry into the Nature and Causes of the Wealth of Nations. Smith’s seminal work articulated the concept of the invisible hand,...
The California Public Employees’ Retirement System (CalPERS) continues to demonstrate a stunning disconnect between its investment performance and the compensation it awards its top administrators. A 255-page forensic investigation conducted by former SEC lawyer Edward Siedle and pension analyst Chris Tobe, commissioned by the Retired Public Employees’ Association of California, details a culture of secrecy...
Taxpayers have a fundamental right to know how their money is being managed. Three conditions define a best-practice state regime for local government financial reporting. First, the state should require all local governments above a meaningful revenue threshold to produce independently audited financial statements annually. Second, the state should enforce a prompt filing deadline with...
A bill quietly moving through the Legislature would gut California’s 2013 pension reforms and plunge the state back toward the kind of fiscal crisis that forced lawmakers to enact the Public Employees’ Pension Reform Act (PEPRA) in an effort to stabilize a system that was spiraling out of control. AB 1383 (McKinnor) would expand the...
Last week, KCRA 3 in Sacramento reported that the Newsom administration’s January budget contained a roughly $2 billion accounting error tied to CalPERS pension contributions. The nonpartisan Legislative Analyst’s Office flagged the problem in February. Legislative leaders knew. The public didn’t find out until April. The story is genuinely newsworthy, but not for the reason...
San Francisco and Portland are the only two US cities that tax companies if the pay ratio between the CEO and other employees is “too high.”. After agreeing to lower this tax in 2024 via Proposition M, the Service Employees International Union (SEIU) and its organized labor allies are pushing a ballot measure to raise...
California voters will decide this year whether the state will remain the global center of technology innovation or begin a steady decline. Their choice for governor and on a key ballot initiative will make the difference. The top three Democratic gubernatorial candidates enjoy strong backing from organized labor, including the state’s all-powerful public-employee unions. If...
The California High-Speed Rail Authority released its 2026 Draft Business Plan on February 28, two years after the prior plan and in a radically different environment than when that last plan was written. While quite detailed, the new plan raises serious questions that the Authority has not fully answered: about costs that keep growing, about...
The municipal financial crisis is more urgent than ever. It has been four years since my book, The Municipal Financial Crisis, was published by Palgrave Macmillan. I wrote the book to bring to light the root causes of why our local governments are failing to manage administratively, operationally, and financially. Looking back today, I find...
California’s high-speed rail project has never lacked for drama, but the challenges converging on the California High-Speed Rail Authority in early 2026 represent something qualitatively different from the delays, cost overruns, and political skirmishes that have defined the project for the better part of two decades. The Authority now faces a reckoning that is simultaneously...
California’s hospitals recorded $11.3 billion in total net income in 2024 — 10% above pre-pandemic levels. The average hospital CEO in the state earns roughly $920,000 a year. And the largest union representing healthcare workers collected $114.5 million in dues in 2024 alone, according to its federal LM-2 filing — spending just 16 cents of...