Just as Detroit is coming out of bankruptcy, the entire county is about to go under. This will be especially aggravating because Detroit pensioners are already extremely upset with the pension haircuts they received. In the “too late to complain now” category, Wayne County now seeks to overturn the Detroit bankruptcy settlement. Lawyers will have...
Public sector labor leaders in California would rather that the public remain relatively ignorant about how well their members are compensated. But they are fighting a losing battle. Because of California’s massive unfunded pension liability and other scandals, the public is demanding answers. Interests as diverse as taxpayer groups, business organizations, the media and some...
Let’s be honest. When politicians and pundits discuss the state budget, very little is about the impact on homeowners. Notwithstanding the fact that a person’s home is their most important asset, this lack of perspective is understandable. When people think about political issues impacting their status as homeowners, they are far more likely to focus...
Whenever there is a shortage of police personnel in a California city, a common reason cited is inadequate pay. When officers at a particular agency are paid less than their counterparts at some other agency, so the theory goes, they quit in order to start working where they can make more. This seems to be...
On January 14th the Orange County Board of Education will meet to consider, among other things, approving a 2% increase for the Orange County superintendent’s salary. Using data provided by the Orange County Dept. of Education to Transparent California, it can be seen that in 2013 the superintendent, Al Mijares, earned a base salary of...
The city of Scranton hiked property taxes 57% and garbage collection fees 69% to shore up a police and fire pension funds that will run out of money anyway, in 5 years and 2.5 years respectively. Amusingly (to outsiders) but certainly not to Scranton taxpayers, Scranton Pensions Increased as Much as 80 Percent as a result of...
No matter how high taxes are increased, it’s never enough for public officials and bureaucrats who live off taxpayer funded paychecks. According to these people, there is always one more dollar that is needed to make government “whole.” And being made “whole” in California means maintaining the highest paid government employees in all 50 states....
On its website the Marin Professional Firefighters Association has a page called, “The Truth About Firefighter Retirement Benefits.” The truth of their truth deserves scrutiny. “Firefighters do not receive social security.” This may or may not be true. The governor’s Public Employee Pension Reform Act of 2012 (PEPRA) includes language specifically for those firemen who...
“The ‘recovery’ is largely an illusion created by the effects of zero percent interest rates, quantitative easing, and deficit spending. The asset bubbles that have been created as a result of these policies have primarily benefited the owners of stocks, bonds, and real estate (the rich), while simultaneously deterring the savings and capital investment that...
The 2014 mid-term elections will be remembered for many things – pioneering use of information technology to comprehensively profile and micro-target voters, escalating use of polarizing rhetoric, historically low levels of voter turnout, and historic records in total spending. In California, in spite of all this money and technology – or perhaps because of it...
On November 4th, voters in Stanton, California, will be asked to vote on a 1.0% sales tax increase, which if approved will raise their sales tax to 9.0% – the highest in Orange County. Nestled in the heart of Orange County, tiny Stanton, a city of barely three square miles in size with a population...
Exceptionally good news from California today: A federal judge ruled Calpers claim of “Sanctity of Pensions” is invalid. Today’s ruling went even further than the bankrupt city of Stockton originally sought in court. For details, please consider the New York Times article In Ruling on California Town’s Bankruptcy, Judge Challenges Sanctity of Pensions. A federal bankruptcy...
CalPERS financial struggles are draining state taxpayers. The ever-increasing contribution rates it demands from state and local governments have already bankrupted several cities. Even for more financially stable agencies, increased CalPERS contributions have crowded out other spending priorities or tax relief. While discussions about unfunded liabilities and projected rates of return are necessary and important,...
Humorist Will Rogers observed, “This country has come to feel the same when Congress is in session as when the baby gets hold of a hammer.” If Rogers were a Californian today, he would say the same thing about the state Legislature. Fortunately, for average citizens, the Legislature adjourned a few weeks ago so its...