Editor’s Note: If you want links to core data on Social Security finance, this post by UnionWatch contributor Mike Shedlock is a good place to start. Shedlock correctly notes that during the most recent 12 months the Social Security program ran a deficit for the first time in history. The 2013 resumption of full 6.25%...
Often during talk radio interviews I am asked, “Who is The Devil at Our Doorstep, is it the SEIU?” I love the question, because it provides the opportunity to explain that the “devil” in my book is actually a coalition of groups from the liberal left. This includes groups such as Media Matters, liberal Democrats,...
Everyone remembers how thousands of bankers and millions of homeowners were caught by surprise when the real estate bubble collapsed in late 2008. One of the major reasons this prodigious bubble was allowed to inflate in the first place was because credit rating agencies did not properly evaluate the financial risks inherent in collateralized mortgage...
When a house is burning down, firefighters rush to save the occupants and put out the fire, often incurring personal risk in the process. Sometimes firefighters even die in the act of saving us. It’s a risk they accept when they take the job. That’s why we call them heroes. So why would firefighters participate...
California revenue is up from a year ago. Unfortunately, California revenue is not up as much as expected, while spending is up way more than expected. Please consider California Finances in November 2012 by state controller John Chiang. November’s tax receipts fell 10.8% short of expectations contained in the 2012-2013 State Budget, although they were...
Among pension reformers there is a spirited ongoing debate regarding what might constitute a financially sustainable yet equitable solution. On one side there is a call to do away with defined benefits entirely, replacing them with defined contribution plans. The argument is compelling; with defined contribution plans, when the participant retires, they survive on the...
One would think that Californians would know by now that bonds are nothing more than taxes plus interest. After all, when people were borrowing against their home equity to pay off bills and buy things, didn’t they learn the hard way that the money had to be paid back with interest? Borrowing IS spending. Bonds...
Since reporting on the State Controller’s government employee pay tracker last month (ref. California State Controller’s Employee Pay Tracker Grossly Understates Actual Compensation), the State Controller’s Office has responded to one of our concerns, writing: “…it is possible in certain situations to have the data from the Controller’s GCC database sorted by city or county. ...
Earlier this week the Los Angeles Times ran an article entitled “Signature gatherers duel over Riordan pension initiative.” In the article’s introduction, the Times reporter quoted a voter opposed to the initiative, writing “The Tarzana grandmother thinks younger generations shouldn’t have to worry about a retirement tied to the ups and downs of the stock...
On Tuesday voters in California went the wrong way on three propositions. Voters approved Proposition 30 “temporarily” increasing the state sales tax and income tax on individuals making over $250,000. They voted against Proposition 31 that would allow the governor to cut the budget in fiscal emergencies. They voted against Proposition 32 that would prevent...
California state controller John Chiang has unveiled a website that tracks public employee pay. Unfortunately, the website provides grossly misleading information. The data compiled and summarized on this website report average wages that are literally one half to one-third the amount of total compensation actually earned by California’s state and local public servants. The impact...
Campaign Funding IBEW Union Boss Brian d’Arcy, the imperious business manager of the Department of Water and Power’s politically powerful and domineering union, is not a happy camper with Mayor Riordan’s proposed plan to reform the DWP’s very generous and seriously unfunded pension plan. How dare Riordan try to circumvent him? After all, DWP is...
Editor’s Note: Apart from pensions, the most financially significant “OPEB,” or “other post employment benefit,” typically awarded a government employee is retirement health care. This benefit is designed to fill the health coverage gap during the years between when someone retires and when they become eligible for Medicare, and in many cases, they are also...
I just finished slogging through a 69 page PDF by the State Budget Crisis Task Force outlining the dire state of affairs in Illinois. I knew in advance that pension funding is the biggest issue facing Illinois. The task force shows exactly that. Here is a summary. Pension Funding Levels Teachers Retirement System (TRS) –...