Last spring, when I wrote “The Rise of Zombie Cities,” I thought that, by now, some of my statements would have been proven prophetic. In the article, I discussed the results of the California State Auditor’s 2022 report on the “Fiscal Health of Cities.” I also noted several negative trends affecting city finances, such as...
The City of San Francisco is reeling from rampant crime and facing a commercial real estate crash. Arguably, City policies have created both problems – the former, a result of lax law enforcement, and the latter, a consequence of the first, coupled with unfriendly business policies. Meanwhile, the City is facing a $489 million budget...
Governor Newsom’s FY 2023-24 budget update included a larger projected deficit and more balancing measures than his January budget. But, despite pressure from Senator Scott Wiener (D-San Francisco) and transit agencies, the May Revise excluded emergency funding for local bus and rail systems around the state. The agencies’ proposed transit bailout was at best premature,...
When the California State Auditor’s Office released its annual report on the “Fiscal Health of California Cities” in fall 2022, most city officials and journalists focused on the blunt financial risk rating results and the relative position of their city organization amongst the 431 cities analyzed. But there is more that we can learn from...
Leaders in Sacramento are grappling with the state budget this month as California faces a budget deficit of nearly $32 billion. Senate leaders claim they can address the deficit without cutting spending on state programs, but the reality is that a fiscal reckoning is long overdue. According to a survey released by the Public Policy...
Boasting of his state’s robust economic growth, California Gov. Gavin Newsom recently declared that “California’s values and entrepreneurial spirit have powered this ascent to becoming the 4th biggest economy in the world.” Not so fast. California elected officials frequently cite the Golden State’s position in global economic rankings, comparing the size of the state’s economy...
California’s state government is spending twice as much as it did a decade ago, and by every metric that matters to ordinary Californians, things have only gotten worse. Even without further analysis, this is an incredible fact. California’s state government, in constant dollars, is spending nearly twice as much per resident as it did a...
Virtually everyone in local government claims to champion transparency and accountability, but few attempt to define either of these terms or identify what conditions support and maintain them. Too often, municipal leaders rely on gimmicks and process to demonstrate that their government organization is meeting these laudable goals, rather than focus on building the culture...
As with transparency, accountability is championed in government settings. Government officials and employees must be accountable to the public for the decisions they make and the money they spend, but what is really meant by accountability, and how should we think about it in a local government context? The best description of accountability that I...
About 20 years ago, I read an ad in a local Sacramento newspaper that said “Get a government job and become an instant millionaire.” The ad went on to describe how public bureaucrats in California enjoyed benefits private sector employees can only dream of, including a guaranteed retirement pension worth the equivalent of millions of...
Most U.S. cities are experiencing an administrative and financial crisis. This appears to be at odds with the confident tone of recent budget hearings where most of the attention was placed on how to spend remaining 2021 federal relief funds and so called “discretionary funds.” Cities have been able to adopt viable budgets this year...
The California State Legislature has just released the “Floor Report of the 2022-2023 Budget,” and it’s a doozy. Representing an agreement between the budget committees of the Assembly and the Senate, and building on Governor Newsom’s proposal, this $300 billion monstrosity has moved one step closer to becoming final. To fully appreciate how out of...