California’s Budget “Surplus” Ignores Crushing Debt Burden
California’s Budget “Surplus” Ignores Crushing Debt Burden
California’s new governor, Gavin Newsom, delivered an inaugural address earlier this week that accurately reflected the mentality of his supporters. Triumphalist, defiant, and filled with grand plans. But are these plans grand, or grandiose? Will Governor Newsom try to deliver everything he promised during his campaign, and if so, can California’s state government really deliver...
By Edward Ring
Newsom’s big-spending, pro-union course will run into a fiscal iceberg
Newsom’s big-spending, pro-union course will run into a fiscal iceberg
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...
By Steven Greenhut
Universal pre-k is not okay
Universal pre-k is not okay
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...
By Larry Sand
California’s State and Local Liabilities Total $1.5 Trillion
California’s State and Local Liabilities Total $1.5 Trillion
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...
By Marc Joffe
California Fair Political Practices Commission Cracks Down on Illegal Political Expenditures
California Fair Political Practices Commission Cracks Down on Illegal Political Expenditures
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...
By Jon Coupal
Pension Funds, Meet the “Super Bubble”
Pension Funds, Meet the “Super Bubble”
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...
By Edward Ring
New study confirms business flight from California accelerating
New study confirms business flight from California accelerating
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...
By Jon Coupal
Early Christmas for LAUSD teacher: a refund of his UTLA union dues – and an end to future deductions
Early Christmas for LAUSD teacher: a refund of his UTLA union dues – and an end to future deductions
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...
By Will Swaim
Stock Market, Housing, Economy Signal State and Local Budget Woes in 2019-20
Stock Market, Housing, Economy Signal State and Local Budget Woes in 2019-20
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...
By Lanny Ebenstein
The Financial Context of the Imminent California Supreme Court Decision on the “California Rule”
The Financial Context of the Imminent California Supreme Court Decision on the “California Rule”
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...
By Edward Ring
State Audit Exposes High Speed Rail’s Epic Waste of Time and Money
State Audit Exposes High Speed Rail’s Epic Waste of Time and Money
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...
By Jon Coupal
Looming Decision on “California Rule” Will Dramatically Affect Pension Reform Efforts
Looming Decision on “California Rule” Will Dramatically Affect Pension Reform Efforts
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...
By Jon Coupal
Surplus masks deep fiscal problems, especially in school districts
Surplus masks deep fiscal problems, especially in school districts
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...
By Steven Greenhut
How Local Governments Can Reform Pensions IF the “California Rule” is Overturned
How Local Governments Can Reform Pensions IF the “California Rule” is Overturned
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...
By Ken Churchill