Research Studies | California Policy Center

Alameda County Water District Rate Increase Driven by Labor Costs, Not Drought

With California facing a significant drought, many water districts are raising rates on customers who have been asked to significantly reduce water use. Water districts cite the lack of rainfall, the rising cost of imported water, and reduced demand as reasons why customers must pay more. However, many districts fail to explain the role labor...

By Eric Tsai

California City Pension Burdens

SUMMARY: This study estimates the burden of pension costs on 459 California municipalities. The primary measure we consider is the ratio of required pension contributions to estimated total revenue for each city. We also look at contribution rates per employee and at pension funding levels. We find a wide variation in the impact of pension...

By Marc Joffe

California Healthcare Districts in Crisis

INTRODUCTION While financial conditions in California cities have improved markedly since 2012, many of the state’s 78 healthcare districts are struggling. Last April, Palm Drive Healthcare District in Sebastopol filed for protection under Chapter 9 of the federal bankruptcy law. In December, the West Contra Costa Healthcare District, which operates San Pablo-based Doctors Medical Center...

By Marc Joffe

Analysis of the Reasons for San Diego Police Department Employee Departures

Summary: The San Diego Police Officers Association and, to some degree, the San Diego media has long held that low pay was a significant factor in the department’s attrition rate that required pay increases to solve. A recent City-commission study that found the SDPD’s compensation (base pay range + cost of benefits) was near the...

By Robert Fellner

Average CalPERS Pension Up To 5 Times Greater Than Comparable Social Security Payouts

CalPERS officials are fond of saying that their average pension benefit is only about $31,500 – suggesting that CalPERS members’ benefits are at Social Security-type levels. On this basis, they argue it’s a “myth” that public pension benefits are excessive. But is that really true? What happens when something like Social Security’s benefit assumptions –...

By Robert Fellner

California's Most Financially Stressed Cities and Counties

Introduction: Due to the healthy response generated by this study, and justifiable expressions of concern by many whose cities we found to be financially stressed, we would like to state that the rankings developed herein are based on information contained in 2013 financial statements, that is, financial statements for the fiscal year ended June 30,...

By Marc Joffe

Estimating America's Total Unfunded State and Local Government Pension Liability

Summary: The total state and local government pensions in the United States at the end of 2013 had an estimated $3.6 trillion in assets. They were 74% funded, with liabilities totaling an estimated $4.86 trillion, and an unfunded liability of $1.26 trillion. These funds, in aggregate, project annual returns of 7.75%. If you apply a...

By Edward Ring

The Case for Adjustable Defined Benefits

Notwithstanding the fact that “adjustable defined benefits” might constitute an oxymoron, as a concept it represents the only way that defined benefit plans can be sustained. Rather than throwing new employees into individual 401K plans, while they effectively subsidize legacy defined benefits for veteran employees and retirees, why not adjust defined benefits down to a...

By Edward Ring

Evaluating Total Unfunded Public Employee Retirement Liabilities in 20 California Counties

Summary: Using officially reported figures from the most recent financial statements available, this report calculates the total unfunded employee retirement liabilities for the 20 California counties with their own independent retirement systems. This study is the first of its kind to compile for these counties not only reported pension fund assets and liabilities, but also retirement...

By Bill Monet

Evaluating Public Safety Pensions in California

Summary: To accurately assess how much pension obligations for current workers are going to cost, it is necessary to calculate average pensions for retirees who retired after 1999 when pension benefits were enhanced. Because public safety employees represent about 15% of California’s total state and local government workforce , but an estimated 25% of the...

By Robert Fellner

The Benefits and Costs of Oil and Gas Development in California

Summary: California is the nation’s third largest producer of crude oil and has considerable potential to expand production. This report assesses this potential by quantifying scenarios for crude oil and natural gas production both onshore and offshore and the associated economic and environmental impacts. The oil production possibilities of the Monterey Shale recently have attracted considerable...

By Tim Considine

Is the Stock Market Over-Stimulated and Overpriced?

At the end of 2013 Wall Street appeared to be convinced that the markets were enjoying the best of all possible worlds. In an interview with CNBC on Dec. 31 famed finance professor Jeremy Siegel stated that stocks would build on the great gains of 2013 with an additional 27% increase this year. So far 2014...

By Neera Chaudhary

How Much Do CalSTRS Retirees Really Make?

Summary: The California State Teacher’s Retirement System (CalSTRS) is California’s 2nd largest public employee pension fund, serving roughly 2% of California’s population. At present, its unfunded liability is officially estimated at $71 billion. While much of the discussion over pension reform focuses on projected rates of investment returns, which greatly affects the required annual contributions...

By Robert Fellner

Comparing CalSTRS Pensions to Social Security Retirement Benefits

Summary: This study compares Social Security retirement benefits to CalSTRS pension benefits and finds a significant disparity between the plans, despite the employee contributions being relatively similar. For example, the average CalSTRS participant retires at age 62, which is the current earliest age one may collect Social Security retirement benefits. At age 62, the average...

By Edward Ring