California’s Government Worker Pay Raises Greatly Exceed Private Sector
California’s Government Worker Pay Raises Greatly Exceed Private Sector
Workers for the city of Stockton who attended the unveiling Wednesday night of a new report detailing trends in public-employee compensation in California complained about cuts in their compensation packages that are causing hardship for them and their city. But the report, prepared on behalf of the Howard Jarvis Taxpayers Foundation and released at a...
By Steven Greenhut
The Exempt Class: Unionized Government Workers
The Exempt Class: Unionized Government Workers
“All animals are equal, but some animals are more equal than others” George Orwell, Animal Farm Public sector unions, who have now raised over $50 million to defeat California’s Prop. 32, have called it the “Special Exemptions Act,” because it supposedly was deliberately written to exempt billionaires and certain business interests from its provisions. The...
By Editor
Another Union Giveaway Almost Becomes Law
Another Union Giveaway Almost Becomes Law
If California voters grant the state government the billions in higher taxes in Proposition 30 that Gov. Jerry Brown and legislative Democrats have been demanding, those same officials might be expected to squander the money by shoveling even more benefits to already well-compensated government workers. Evidence for such an expectation is a scheme to enrich...
By Steven Greenhut
Costa Mesa City Employees Average $146,863 Annual Compensation
Costa Mesa City Employees Average $146,863 Annual Compensation
A recently released study by the California Public Policy Center (CPPC) entitled “Costa Mesa, California – City Employee Compensation Analysis,” using actual payroll data provided by the city, has calculated the average total annual compensation for an employee of that city to be $146,863 during 2011. Anyone wishing to review their calculations can download the...
By Editor
Atwater, California Faces Bankruptcy
Atwater, California Faces Bankruptcy
The California hit parade keeps on rolling as yet Another California city scrambles to avoid bankruptcy. Atwater, a city of roughly 28,000 in California’s Central Valley, may declare a fiscal emergency as soon as next week, but it is trying to avoid becoming the fourth California city to file for municipal bankruptcy this year, its...
By Mike Shedlock
California State Budget Deficit for 2012-13 is Increasing vs. Projections
California State Budget Deficit for 2012-13 is Increasing vs. Projections
A summary of California State Finances for August 2012 looks like this: Except for corporate income taxes (down a whopping 71.5% vs. projections), the state is doing better in August than budgeted. However, compared to a year ago, revenues are down, sales taxes are down, and corporate taxes are down, all by significant amounts. Moreover,...
By Mike Shedlock
Average Total Compensation for Anaheim City Worker is ALSO $175,000 Per Year
Average Total Compensation for Anaheim City Worker is ALSO $175,000 Per Year
Yes, this is an incredible statistic. But only one assumption is necessary to generate this shocking result – just assume that pension funds will only earn 4.5% per year instead of 7.5% per year. If you wish to cling to the utterly absurd belief that over the long-term, decade after decade, pension funds can achieve...
By Editor
San Jose Mercury Editorial Calls State Ballot Prop. 32 a “Scam”
San Jose Mercury Editorial Calls State Ballot Prop. 32 a “Scam”
On August 31st the San Jose Mercury’s editorial board saw fit to denounce Prop. 32, a California citizen’s initiative that will appear on the state ballot in November, as a “scam,” because the initiative would ban payroll deductions for political contributions (ref. “Deceptive Prop. 32 would worsen campaign finance mess“). The editors reason that since...
By Editor
How Union Power Corrupts Police Departments
How Union Power Corrupts Police Departments
City officials across California typically spare police officers from even modest reductions in the pay and pension packages that are a leading cause of municipal budget problems, even when the alternatives are reduced public services or even municipal bankruptcy. The common explanation is that politicians are afraid of the cop unions’ political muscle. That is...
By Steven Greenhut
Bankruptcy Won’t Help Cities Unless Courts Permit Reduced Pension Benefits
Bankruptcy Won’t Help Cities Unless Courts Permit Reduced Pension Benefits
Municipal bonds have long been among the safest investments, but a coming wave of municipal bankruptcies in California – and the disturbing way one of those cities is stiffing its bondholders – could change perceptions about the wisdom of lending money to cities. The struggling port city of Stockton has declared bankruptcy after a spending...
By Steven Greenhut
Syracuse New York Headed for Bankruptcy
Syracuse New York Headed for Bankruptcy
Without a doubt Syracuse, New York is headed for bankruptcy. Not only is there an “official denial” but the mayor of Syracuse is seeking legal guidance on municipal bankruptcy. Once again, public union wages and benefits, especially police and firefighters’ pensions are smack in the midst of it. Please consider this news headline which I...
By Mike Shedlock
Average Total Compensation for San Jose City Worker is $175,000 Per Year
Average Total Compensation for San Jose City Worker is $175,000 Per Year
Does this seem incredible? Well it isn’t. It is based on actual payroll records obtained from the city of San Jose for 2011, with just one assumption added – that pension funds will no longer earn 7.5% per year, but instead earn a more realistic 4.5% per year. If you want to stick with 7.5%,...
By Editor
Zombified Cities – The Consequences of Extreme Labor Costs
Zombified Cities – The Consequences of Extreme Labor Costs
Space does not permit a complete discussion of zombified cities. Such a list would be in the many hundreds. Rather this post is about four cities in recent news that are among the walking dead. One is even a dumping ground for the dead. <strong>Fourth Financial Urgency in Miami in Four years</strong> The <em>Huffington Post</em>...
By Mike Shedlock
San Bernardino Files Bankruptcy Petition
San Bernardino Files Bankruptcy Petition
Fearing action by creditors, San Bernardino, California, Files Chapter 9 Bankruptcy Petition San Bernardino, California, after disclosing a $46 million shortfall in the city’s budget, filed for municipal bankruptcy. San Bernardino listed assets and debt of more than $1 billion in a filing yesterday with the U.S. Bankruptcy Court in Riverside, California. It’s the third...
By Mike Shedlock