Sacramento Gavin Newsom was inaugurated as California’s 40th governor on Monday, taking over a general-fund budget that is flush with cash, and a state government that is in remarkably good shape – at least superficially – from a fiscal perspective. For all his flaws, outgoing Gov. Jerry Brown left Newsom with a large surplus and...
New governor of the People’s Republic of California wants to expand a dubious universal preschool plan. California’s new Governor Gavin Newsom envisions a future where the state will be involved in your children’s lives from conception to adulthood. Newsom told EdSource in September, “Our role begins when babies are still in the womb and it...
We estimate that California’s total state and local government debt as of June 30, 2017 totaled just over $1.5 trillion. That total includes all outstanding bonds, loans, and other long-term liabilities, along with the officially reported unfunded liability for other post-employment benefits (primarily retiree healthcare), as well as unfunded pension liabilities. This represents a rise...
Over the last several years, this column has exposed multiple instances of government entities using taxpayer dollars for political advocacy, a practice that is illegal under both state and federal law. Because progress in stopping these violations has been difficult, taxpayers will be pleased to hear that on December 20th, California’s campaign watchdog agency, the...
Earlier this month, outgoing California Governor Jerry Brown predicted “fiscal oblivion” if California’s state and local agencies are not granted more flexibility to modify pension benefits. As if to help Governor Brown make his point, U.S. stock indexes took an obliging plunge. The Dow Jones average cratered in December, dropping nearly 16 percent in three...
The evidence is more than anecdotal. According to a recent study, business flight out of California has accelerated to an unprecedented level. In 2016, the year for which the most recent data is available, 1,800 businesses moved out or “disinvested” from California. This is the highest one-year total in the nine-year history of tracking by...
Few: “Teachers shouldn’t have to make a federal case out of this.” This article first appeared on FlashReport.org. Just in time for Christmas, the Los Angeles teachers union gave Thomas Few some good news: a refund of $433.31 dues he paid and the union’s promise to stop taking $80 per month from his paycheck. Few...
The typical analysis of state and local government finances is that they are primarily a function of the economy. When the economy is growing well, and especially when it is growing faster than expected, local and state government finances prosper. When the economy grows, more people are employed and employees have larger paychecks. State income...
Any day now, the California Supreme Court will rule on what may be one of the most significant cases affecting pension reform in California history. The case, CalFire Local 2881 vs. CalPERS, challenges one of the provisions of PEPRA (Public Employee Pension Reform Act) Governor Brown’s 2013 pension reform legislation. The plaintiffs argue that PEPRA’s abolition...
Although the midterm election was held on November 6th, the news media was absorbed for several weeks with undecided close races and the strength of the “blue wave,” especially here in California. Perhaps that is why a report from the Auditor of the State of California on the High Speed Rail Project issued the following...
On its surface, the case heard last Wednesday by the California Supreme Court in CalFire Local 2881 vs. CalPERS doesn’t seem that important. At issue is the so-called “California Rule,” an obscure legal doctrine relating to public employee pensions. But for California’s beleaguered taxpayers, the case is one of extraordinary importance because its outcome will...
Sacramento As Gov. Jerry Brown heads into the sunset, he leaves California’s general-fund budget in remarkably sound shape, according to an analysis last month from the nonpartisan Legislative Analyst’s Office. “It is difficult to overstate how good the budget’s condition is today,” the LAO reported, pointing to a $14.5 billion reserve by the end of next...
In December of 2018, the California Supreme Court will hear arguments in what is generally referred to as the Cal Fire pension case. The ruling could potentially overturn what is commonly referred to as the “California Rule.” The current interpretation of the rule is that pension benefits, once increased, cannot be reduced for existing employees...
In October 2016, in a coordinated act of terrorism that received fleeting attention from the press, environmentalist activists broke into remote flow stations and turned off the valves on pipelines carrying crude oil from Canada into the United States. Working simultaneously in Washington, Montana, Minnesota, and North Dakota, the eco-terrorists disrupted pipelines that together transport 2.8 million...