Illinois Financial Apocalypse – $163 Billion Accumulated Liabilities
Illinois Financial Apocalypse – $163 Billion Accumulated Liabilities
Editor’s Note: If you think what’s happening in Illinois can’t happen here, think again. For starters, read these two studies by the California Policy Center, (1) “Calculating California’s Total State and Local Government Debt,” and (2) “Comprehensive Review of California School Bonds.” While experts disagree over what is a reasonable rate-of-return projection for pension fund...
By Mike Shedlock
California's Pensions Are An Economic Burden, Not Benefit
California's Pensions Are An Economic Burden, Not Benefit
Last month an article entitled “Pensions as Economic Stimulus” was posted to Fox & Hounds Daily. The author, Charles Beckwith, is a former CalPERS senior financial manager. Beckwith’s article, while thoughtful, invites a response. Because California’s pension systems may stimulate the economy in some ways, but equally significant ways, they are killing the economy. Beckwith’s primary...
By Edward Ring
Is California a Low Property Tax State?
Is California a Low Property Tax State?
Editor’s Note: When asking whether or not California is a low property tax state – it’s not, as taxpayer advocate Jon Coupal explains in this article – the parallel question is WHY, if property taxes are already high enough in California, are legislators trying to raise property taxes? Here is a list, courtesy of the Howard...
By Jon Coupal
Median Total Compensation for Redwood City Firefighters – At Least $226,365
Median Total Compensation for Redwood City Firefighters – At Least $226,365
Back in February 2014 the California Policy Center publicly announced the Transparent California website, developed in partnership with the Nevada Policy Research Institute. An article covering this announcement was posted on the Forbes Magazine website, entitled “Hundreds Of California Government Employees Are Paid Over $400,000 A Year,” which a review of 2013 Transparent California data...
By Edward Ring
Aggregate U.S. Pension Data Shows Grim Outlook
Aggregate U.S. Pension Data Shows Grim Outlook
Editor’s Note: This analysis by economics blogger Mike Shedlock clearly shows why government employee pensions are taking an awful risk by continuing to forecast annual investment returns of 7.0% or more per year. In his first chart Shedlock points out how between 2008 and 2014 the aggregate value of state and local government worker pension...
By Mike Shedlock
CalSTRS CEO Jack Ehnes Recommends 50% Increase to CalSTRS Retirement Income
CalSTRS CEO Jack Ehnes Recommends 50% Increase to CalSTRS Retirement Income
Author’s Note: The original title of this post was “CalSTRS CEO Jack Ehnes Recommends 50% Increase to CalSTRS Pension Benefits.” That was inaccurate. What Ehne’s specifically recommended per the quote immediately below this note was “income replacement of 80 percent to 90 percent to maintain a similar lifestyle in retirement,” in reference to his assertion that...
By Edward Ring
Caltrans Union Spokesman Understates Engineers' Cost by $71M
Caltrans Union Spokesman Understates Engineers' Cost by $71M
In a hearing on Senator Moorlach’s SBX1-9 (Responsible Contacting for Caltrans) bill, Ted Toppin of the Professional Engineers in California Government (PECG) made a series of demonstrably false claims regarding the cost of Caltrans engineers. Toppin claimed that the cost of a fully-loaded engineer – including all wages, benefits and even the cost of their office and service truck –...
By Robert Fellner
Government Union Assault on Taxpayers Continues in California
Government Union Assault on Taxpayers Continues in California
Editor’s Note: This article discusses multiple proposals to raise taxes that are making the rounds in California’s government union controlled state legislature. Two in particular are mentioned, Senate Constitutional Amendment 5 that takes Prop 13 protections away from business owners, and Assembly Constitutional Amendment 4 that lowers the two-thirds vote requirement for local tax increases. On top...
By Jon Coupal
Tough Education Reform, not More Borrowing and Spending, is What Students Need
Tough Education Reform, not More Borrowing and Spending, is What Students Need
Last week the California Policy Center published a major new study that compiled, in exhaustive detail, both the amount that Californians have borrowed to finance public school construction and upgrades, as well as documented the abuses that have diminished the return on these substantial investments. Californians simply don’t realize how much borrowing is going on....
By Edward Ring
What Happens When Public Unions Control Everything for Decades?
What Happens When Public Unions Control Everything for Decades?
Editor’s Note: California and Illinois have a lot in common. Both have diverse, resilient economies, both are large states with most of the population concentrated in urban areas, and both have been controlled for decades by public sector unions. The crucial difference, of course, is that at least in Illinois, there is a reform minded...
By Mike Shedlock
City of Stanton Faces Taxpayer Revolt
City of Stanton Faces Taxpayer Revolt
Back in November 2014, in a 54% to 46% decision, less than 20% of Stanton’s registered voters approved “Measure GG,” which increased their sales tax rate from 8.0% to 9.0%. Needless to say, this measure will not encourage retail businesses to relocate to Stanton, nor will it encourage residents to shop there. But like local tax...
By Edward Ring
San Ramon Fire Protection District Pay and Governance Exemplifies Union Power
San Ramon Fire Protection District Pay and Governance Exemplifies Union Power
In a democracy, the assumption is that civilians exercise the ultimate authority over their government. The citizens elect representatives who will act in the public interest. But what happens when government agencies are disbursed over thousands of jurisdictions, and the people who run these local agencies are virtually unknown? Even citizens who follow politics and vote diligently...
By Edward Ring
California's Union Controlled Legislature to Consider Raising Taxes in Special Session
California's Union Controlled Legislature to Consider Raising Taxes in Special Session
Jerry Brown, who as a candidate for governor in 2010 repeatedly pledged he wouldn’t raise taxes without a popular vote, has called for a special session of the Legislature for the purpose of raising taxes. This despite the fact that general fund revenues have outstripped estimates by almost $6 billion. So now we have the...
By Jon Coupal
University of California Hikes Tuition to Fund Soaring Pensions of up to $350,000 a Year
University of California Hikes Tuition to Fund Soaring Pensions of up to $350,000 a Year
The University of California (UC) is implementing major changes to their retirement system to address its $12.1 billion unfunded liability, which has been cited as the driving factor behind recent tuition hikes. The proposed changes include a cap on pension benefits and the possibility of offering a 401(k) defined contribution plan to new hires. Looking...
By Robert Fellner