About 20 years ago, I read an ad in a local Sacramento newspaper that said “Get a government job and become an instant millionaire.” The ad went on to describe how public bureaucrats in California enjoyed benefits private sector employees can only dream of, including a guaranteed retirement pension worth the equivalent of millions of...
If ever there were a case of Chicken Little, it’s the endless squawking over the imminent implosion of public employee pension funds. In California, ever since pension benefits were enhanced, retroactively, starting in 1999, critics have been claiming a pension apocalypse was imminent. But so far, no matter what happens, pension funds muddle through. The...
In a little-known and influential institution, a group of experts at the Governmental Accounting Standards Board (GASB) regularly update best practices and standards for government financial practices and procedures. They are best recognized for their generally accepted accounting principles. As described in their website, “GASB develops and issues accounting standards through a transparent and inclusive...
California’s ballot initiative process allows citizen activists to bypass politicians who are controlled by special interests. The ability for citizens today to connect and organize using online resources means it has never been easier for a determined group of individuals, without access to big donors, to nonetheless successfully qualify reform measures for the ballot and...
The California Policy Center, established in 2013, exists to expose and undermine the destructive power of government unions. Most Californians still don’t understand the threat these unions represent to the integrity of our democracy, the agenda of our politicians, and the solvency of our public institutions. Government unions, sometimes also referred to as public sector...
Californians pay the highest overall taxes in the United States, with more to come. The Democratic supermajority in the state legislature is considering AB 1253 that would raise the top income tax rate to 16.8 percent, and AB 2088 that would impose an annual 0.4 percent tax on any California resident’s net worth in excess of $30 million. On...
Of all the public agencies facing financial challenges as a result of the COVID-19 pandemic, public transit has taken the biggest initial hit. The reasons for this are obvious: when there’s a lockdown and businesses are closed, commuters stay home. And of those still fortunate enough to have places to go, few want to board...
With the economic shutdown devastating private sector employment in California, with small family-owned businesses the worst hit, how are California’s public employees doing? A recent report by NPR paints a grim picture, “Cities Have Never Seen A Downturn Like This, And Things Will Only Get Worse.” From the San Francisco Chronicle, “California cities warn of widespread...
The pandemic shutdown is about to enter its third month, and economic repercussions have just begun. Too much has been shut down for too long. In California, the initial reopen is not going to include huge business sectors – theaters, concerts, conventions, sports, travel, hotels – and other sectors such as restaurants and retail establishments are going...
Willfully blind to the reality of the fiscal impact of Covid-19, the teachers union is demanding billions from the already beleaguered American taxpayer. Long after the coronavirus fades into history, there will be many lingering effects. And high on that list very well may be the toll on public employee pensions and the beleaguered taxpayers...
Nobody needs reminding that California’s cities, like every other going concern in America, are heading for tough economic times. As recently as two months ago, robust collections of sales taxes, utility taxes, transient occupancy taxes, property taxes and other sources of taxes and fees were pouring money into municipal coffers. Now, with the economy abruptly...
Editor’s Note: The following was originally published on Reason. In terms of providing quality information that researchers, hospitals, public health officials, and taxpayers would find the most useful, the best portals are offered by San Diego, Santa Clara, San Mateo and Marin counties. County governments across California are providing an array of public coronavirus data...
The city of Lindsay, in Tulare County, is California’s fourth highest risk city according to the California state auditor. And that was before the COVID-19 pandemic. Its fiscal condition will likely deteriorate further as residents shelter at home, raising the specter of sharp service cuts or even Chapter 9 bankruptcy for the city. The mistakes...
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...