Finance | California Policy Center

San Francisco Political Establishment Fights Pension Reform

To outsiders, liberal San Francisco may seem preoccupied with leftist protesters occupying prime real estate in the Financial District or with debating proper restaurant etiquette for the city’s small but flagrant nudist population, or until recently, with arguing whether male circumcision should be outlawed. But the prospect of bankruptcy focuses the mind, even in a city so obsessed with leftist causes celebres....

By Steven Greenhut

California’s Public Safety Compensation Trends, 2000-2010

Today’s Wall Street Journal published an article by Phil Izzo entitled “Bleak News for Americans’ Income,” where, citing U.S. Census Data, it was reported that U.S. median household income – adjusted for inflation – fell by 7% over the past ten years. In constant 2010 dollars, the average household in the U.S. saw their income...

By Edward Ring

Hollywood Florida Residents Vote to Cut Government Worker Pensions

Residents of Hollywood Florida have had enough of exorbitant police, fire and city workers. In a referendum pitting a 23% tax increase against public union benefits, voters made the smart choice. The turnout was small, but that should have favored the unions because every one of them probably voted to keep the gravy pain and...

By Mike Shedlock

Central Falls Rhode Island Bankruptcy Proposal

Central Falls, Rhode Island set to file bankruptcy exit plan delayed by Irene Central Falls filed for bankruptcy Aug. 1, and receiver Robert Flanders said then that he wanted to submit an exit plan to U.S. Bankruptcy Court Judge Frank Bailey within 30 days. But Tropical Storm Irene forced Flanders to push back the self-imposed...

By Mike Shedlock

Harrisburg Pennsylvania Facing Bankruptcy

Harrisburg, Pennsylvania is bankrupt and has been for years. Instead of recognizing that simple fact, the mayor and most of the city council have been looking for miracles. There are no miracles and there will be no miracles. Fortunately, and at long-last, the city council rejected Mayor Linda Thompson’s scheme of selling city assets to...

By Mike Shedlock

What CalPERS REALLY Thinks They’ll Earn – 3.8%

When the taxpayer is backing up the entire liability for the pensions received by members of the California Public Employees Retirement System, then CalPERS officials are exuberant about the stock market. They insist that a predicted rate of return of 7.75 percent is perfectly realistic. When their own funds are on the line, however, CalPERS...

By Steven Greenhut

Texas Reformers Target Government Pensions

In a prelude for what will eventually happen in every state, a Battle brews over Texas public pensions. Texas could be gearing up for its own Wisconsin-style grudge match over public employee benefits. A group of high-powered Houston business leaders is starting a statewide campaign to overhaul retirement for future teachers, firefighters, police officers, judges...

By Mike Shedlock

Miami Gives Unions Two Weeks to Agree to Cuts

The “good news” keeps right on rolling. As such, I keep wondering which major US city will be the first to declare bankruptcy. Please consider candidate Miami. Miami Declares Financial State of Emergency Bloomberg reports Miami Declares ‘Financial Urgency’ as It Moves to Cut Worker Pay, Benefits Miami, facing a $61 million fiscal 2012 deficit,...

By Mike Shedlock

Growing Gloom for States and Cities; What About Solutions?

A New York Times article accurately describes a set of fiscal realities in Sunday’s editorial A Growing Gloom for States and Cities. The New York Times wildly misses the mark as to who is to blame for this crisis. NYT: Washington should have been trying to find a way to help states avoid the layoffs...

By Mike Shedlock

Why Government Unions are Collection Agents for Wall Street

Whenever CalPERS, or any government worker pension fund, suggests that a long-term projected rate of return of 7.75% is realistic and prudent, one needs to consider the following: Across every major stock index in the U.S., and on most indexes in the rest of the world, publicly traded stocks have been down for the last...

By Editor

Rhode Island City Voids Union Contracts in Bankruptcy

As expected, but sooner than expected (less than a day), we have this: Central Falls Collective Bargaining Contracts Voided In Bankruptcy. The state-appointed receiver overseeing cash-strapped Central Falls filed for bankruptcy Monday morning on the city’s behalf in an effort to help it get back on its financial feet. Receiver Robert G. Flanders announced the...

By Mike Shedlock

Union Perks vs. Public Safety

Last year, one of my reporters and her adult son were walking in downtown Sacramento when a couple of young toughs tried grabbing her purse. She pulled back her purse, and the robbers lunged at the two of them, leaving the son’s face covered in blood. Despite a frantic call to 911, the Sacramento police...

By Steven Greenhut

Rhode Island City Offers Choice – 50% Pension Cut or Bankruptcy

In a scene that is going to play out in scores of cities across the nation, unions are going to come to grips with the fact that pensions are not sacrosanct. Please consider Rhode Island city asks retirees to cut their pensions As cities across the United States struggle to keep their finances afloat, Central...

By Mike Shedlock

Debt Ceiling Used to Cover Gift Giving to Big Labor

President Obama is back to his old sleight of hand (See blog In Egypt’s Shadow.). This time, however, it is to cover for The Department of Labor’s Latest Attempt to promulgate regulations aiding big labor’s corporate campaign initiatives and the National Labor Relations Board’s attempt to shorten election time periods and achieve “card check” through regulatory...

By Dave Bego