John Moorlach: The predictably harmful consequences of Assembly Bill 218
John Moorlach: The predictably harmful consequences of Assembly Bill 218
California’s school districts, counties and cities are fiscally strapped. And the public employee unions just cut their noses off to spite their faces, adding to the consternation. As a member of the California Assembly, Lorena Gonzalez-Fletcher felt that organizations and school districts should be held financially responsible for the bad acts of their employees who...
By John Moorlach
High-speed rail CEO’s new plan is an improvement, but probably is not legal
High-speed rail CEO’s new plan is an improvement, but probably is not legal
Ian Choudri, the California High-Speed Rail Authority’s relatively new CEO has rolled out a new proposal for the bullet train’s future. His newly released supplemental project update report offers more realistic projections and some worthwhile ideas, but they are not consistent with current law. If Choudri wants to reimagine the high-speed rail program, the Authority...
By Marc Joffe
John Moorlach: Don’t let Sacramento hide the truth about new taxes
John Moorlach: Don’t let Sacramento hide the truth about new taxes
Imagine you’re looking at your ballot and you see a measure titled something like: “Better Roads and Schools – See Voter Guide for Details.” Would you take a few minutes to dig into the fine print? Or would you just vote “yes,” assuming it sounds like a good idea? Most people would expect the ballot to say...
By John Moorlach
Is California’s Economy Really Larger Than Japan’s?
Is California’s Economy Really Larger Than Japan’s?
In 2024, California’s Gross Domestic Product surpassed that of Japan. The Golden State’s GDP is now higher than those of all but three countries: the United States, China, and Germany. Governor Newsom’s office was quick to trumpet the statistical development, declaring California “the 4th largest economy in the world.” But is this true in any...
By Marc Joffe
Iowa Senator Slams Wasteful California Rail Transportation Projects
Iowa Senator Slams Wasteful California Rail Transportation Projects
Senator Joni Ernst (R-IA) has issued a report identifying wasteful federally funded construction projects, and California’s rail projects are prominently featured. In addition to High-Speed Rail, Ernst’s “Off the Rails” report correctly singles out three transit projects in Northern California. While Californians may discount criticisms from a Red State Senator, Ernst’s report might ultimately benefit...
By Marc Joffe
California May Never Get High-Speed Rail as Brightline Also Struggles
California May Never Get High-Speed Rail as Brightline Also Struggles
Although Governor Newsom and Rail Authority management are in denial, President Trump’s decision to claw back $4 billion in California high-speed rail funding is likely the coup de grace for the state project. But the state’s other high-speed rail project, Brightline West’s effort to connect Rancho Cucamonga with Las Vegas, also faces headwinds and may...
By Marc Joffe
California Might Stop Making Necessary Debt Payments for 2 Years
California Might Stop Making Necessary Debt Payments for 2 Years
It’s July. The California State Legislature has successfully met the budget submission deadline of June 15, and it was signed by the governor. There was one small fly in the ointment: how to cut $12 billion in spending? All while trying to provide $750 million in tax credits annually to one specific industry: Hollywood. Go...
By John Moorlach
1 in 5 Los Angeles County School Districts Had Major Accounting Moves in 2020
1 in 5 Los Angeles County School Districts Had Major Accounting Moves in 2020
The fiscal year of July 1, 2019, to June 30, 2020, was one of the more memorable for California’s school districts. The COVID-19 pandemic would dramatically impact students in March of 2020. The Golden State had not seen anything like it since the Spanish Flu epidemic in 1918, more than a century prior. This unique...
By John Moorlach
Illegal Alien Medi-Cal and the Big Beautiful Bill
Illegal Alien Medi-Cal and the Big Beautiful Bill
Thanks to the Senate Parliamentarian, California will be spared the largest fiscal impact of the Big Beautiful Bill’s Medicaid reforms, but the state’s ability to shift the cost of undocumented immigrant Medi-Cal coverage onto federal taxpayers will nonetheless face limits. Between 2016 and 2024, the California legislature added groups of illegal aliens to the Medi-Cal...
By Marc Joffe
Budget Resources are Limited—Even in California
Budget Resources are Limited—Even in California
Compared to their counterparts in other states, California political and thought leaders seem much less concerned about wasteful government spending. While there are explanations, these aren’t excuses: California state and local governments need to adjust to the reality of resource limitations. Supermajority control by the party less concerned with fiscal discipline is an obvious driver,...
By Marc Joffe
Orange County’s School Districts Improve Fiscally Overall
Orange County’s School Districts Improve Fiscally Overall
Waiting for Orange County’s 28 school districts to post their annual audited financial statements for the year ending June 30, 2024, was an exercise in patience. All but one completed their audits before Dec. 31, which is extremely commendable. But five districts didn’t post their accountability requirements until mid-year 2025. Two were as late as...
By John Moorlach
High-Speed Rail Authority’s Rebuttal to Trump Administration is Well Argued but Makes Questionable Claims
High-Speed Rail Authority’s Rebuttal to Trump Administration is Well Argued but Makes Questionable Claims
On June 12, the California High-Speed Rail Authority (CHRSA) released a 14-page letter rebutting the Federal Railroad Administration’s (FRA’s) case for rescinding $4 billion in grant funding. The Authority plans to provide a more detailed response in July, but the initial letter contains a lot to chew on. Some of CHSRA’s claims are not unreasonable....
By Marc Joffe
Bay Area Transportation and Housing Policies Cannot Stop Climate Change
Bay Area Transportation and Housing Policies Cannot Stop Climate Change
A false solution to a true problem Bay Area transportation and housing initiatives are often portrayed as solutions to the climate catastrophe we are facing due to excessive greenhouse gas emissions from human activity. The thinking is that if we could get everyone to live in apartments near stations on electrified transit systems, thereby removing...
By Marc Joffe
Newsom forced to roll back unwise Medi-Cal expansions
Newsom forced to roll back unwise Medi-Cal expansions
After the state unwisely expanding Medi-Cal in recent years, the program has descended into a fiscal crisis. Now Gov. Gavin Newsom proposes to roll back some of the expansions, but it may be too little too late given pending actions at the federal level. Covering more than one-third of Californians, the Medi-Cal program’s costs are projected to...
By Marc Joffe