Government Insolvency | California Policy Center

Post-Coronapocalypse pension reform checklist for California

In a perfect world, California’s state and local public employees would receive exactly the same retirement benefits as federal employees. They would receive a modest defined benefit, a contributory 401K, and they would participate in Social Security. Unfortunately, in California, while some state and local public employees are offered 401Ks, and many participate in Social Security, all of...

By Edward Ring

Crisis shows why El Cerrito needs to heed State Auditor’s warning

The economic crisis arising from the public health crisis we now face shows why the state auditor was correct in calling out El Cerrito and several other California cities for their perilous financial positions during a decade of economic growth. While El Cerrito may have been able to “get away” with uncontrolled spending during good...

By Marc Joffe

California Cities in Critical Condition

The specter of California’s cities and counties becoming insolvent is nothing new. Three major California cities have already declared bankruptcy, Vallejo in 2008, Stockton and San Bernardino in 2012. In October 2019, the California State Auditor’s Office reported on the fiscal health of 471 California cities. On what the California State Auditor’s office describes as a “Local Government...

By Edward Ring

Government Pensions Are Dividing Americans and Damaging the Economy

Now that financial markets around the world are experiencing a long-overdue correction, the best we can hope for is that we hit bottom before a deflationary cascade causes a worldwide depression. Those economists who believe in the long-term debt cycle may claim that this time the end has arrived, and they may be right. COVID-19, oil price...

By Edward Ring

Gathered for the feast at the Hotel California

Welcome to the Hotel California, such a lovely place… Plenty of room at the Hotel California, any time of year, you can find it here… – “Hotel California,” by the Eagles, 1977 For decades California’s aristocracy has engaged in unsustainable feasting, as they consume the leviathan carcasses of what were for a time the world’s the...

By Edward Ring

Californians reject new taxes and borrowing

The preliminary election returns reported on March 4th indicate that California’s voters delivered a stunning rejection of new taxes and borrowing. It’s about time. At the state level, Prop.13 which would have authorized $15 billion in general obligation bonds for schools and colleges, required a simple majority for approval. But as of March 9th the...

By Edward Ring

The Wondrous, Magnificent Cities of the 21st Century

The American Conservative recently laid an egg. They published a misanthropic, pessimistically aggressive Malthusian screed, written by James Howard Kunstler. Kunstler’s “Why America’s Urban Dreams Went Wrong” attacks pretty much every urban amenity Americans have built since the invention of the automobile. And his reasoning, all of it, reflects a dismal lack of faith in human...

By Edward Ring

The Premises of California’s Dysfunction

Anyone unfamiliar with what is really going on in California would have listened to Governor Newsom’s State of the State address on February 12 and gotten the impression that things have never been better. Newsom’s opening set the tone for the rest of his 4,400 word monologue: “By every traditional measure, the state of our state is...

By Edward Ring

California’s K-12 spending exceeds $20,000 per pupil

“It’s not enough. We’re still 41st in the nation in per pupil funding. Something needs to change. We need to have an honest conversation about how we fund our schools at a state and local level,” – California Governor Gavin Newsom, State of the State Address, February 12, 2020 It should come as no surprise that Governor...

By Edward Ring

Why Jerry Brown bears considerable blame for PG&E’s deadly incompetence

When Gov. Jerry Brown left office in January 2019, most of the reviews of his second eight-year stint as leader of the nation’s richest, most populous state were effusive. Citing his restoration of fiscal stability after the Capitol chaos seen in the last three years of the Schwarzenegger administration, Brown biographer Narda Zacchino declared he...

By Chris Reed

Public Safety Compensation and Public Safety

Public sector unions are by far the most powerful special interest in California. And they are united in their goal to pay themselves as much or more than public agencies can afford, which shields unionized public servants from the worst effects of the laws (which they almost always support) that have made California’s cost-of-living the...

By Edward Ring

Seven reasons to question a state utility takeover

On Feb. 3, state Sen. Scott Wiener, D-San Francisco, introduced a bill that would transfer to California taxpayers responsibility for the state’s largest and most troubled utility, Pacific Gas & Electric. The bill would give a new government agency, the California Consumer Energy and Conservation Financing Authority, the power to buy the assets and pay...

By Mark Lisheron

California’s Progressive War on Suburbia

For three years in a row, California’s progressive lawmakers have attempted to legislate high density housing by taking away the ability of cities and counties to enforce local zoning laws. And for the third year in a row, the proposed law, Senate Bill 50, was narrowly defeated. But eventually something like SB 50 is going to...

By Edward Ring

Leveling with Louie on education funding

A recent chat with my cousin illuminates the chasm between fact and fantasy. After a recent post in which I detailed California’s abuse of taxpayers, I got a call from my cousin Louie, an aging Hollywood screenwriter. Known as the “red sheep” of the family, he firmly believes that pouring more money into government schools...

By Larry Sand