Coping With the Pension Albatross
Coping With the Pension Albatross
Instead of the cross, the albatross About my neck was hung. – Samuel Taylor Coleridge, The Rime of the Ancient Mariner, 1798 In Coleridge’s famous poem, a sailor who killed an albatross has it hung around his neck as punishment. Since then, the albatross, which sailors used to consider good luck, has come to symbolize an oppressive...
By Edward Ring
Marin County Discloses Debt Balances on Property Tax Bills
Marin County Discloses Debt Balances on Property Tax Bills
How would you like it if every time you received a property tax bill from your county assessor, you also received a notice that disclosed the amount of the county’s total debt, annual operating expenses, total unfunded liability for pensions, and total unfunded liability for retirement healthcare? You might not like it, but you’d have...
By Edward Ring
How Fraudulently Low “Normal Contributions” Wreak Havoc on Civic Finances
How Fraudulently Low “Normal Contributions” Wreak Havoc on Civic Finances
Back in 2013 the City of Irvine had an unfunded pension liability of $91 million and cash reserves of $61 million. The unfunded pension liability was being paid off over 30 years with interest charged on the unpaid balance at a rate of 7.5% per year. Irvine’s cash reserves were conservatively invested and earned interest...
By Edward Ring
How Placer County Privatized Inmate Food Services
How Placer County Privatized Inmate Food Services
Introducing competition to the public sector is an essential part of delivering cost-effective services to taxpayers. What happened earlier this year in Placer County is just one example of how millions of savings can be realized by privatizing a public service. By replacing county employees with a private firm to provide inmate food services to...
By Edward Ring
Pension Reform – The San Jose Model
Pension Reform – The San Jose Model
Pension reform in San Jose began in June 2012 when voters, by a margin of 69% to 31%, approved Measure B. Despite overwhelming support from voters, however, this vote triggered a cascade of union funded lawsuits which by 2015 had overturned several of the key provisions of the reform measure. Finally, in August 2015, the...
By Edward Ring
Reforming Binding Arbitration
Reforming Binding Arbitration
The City of San Jose was a pioneer in reforming their rules governing binding arbitration, rules that may seem obscure and complex to the uninitiated, but which have profound consequences. Until the San Jose city council put arbitration reform on the ballot in 2010, unelected arbitrators could end labor negotiations with decisions that were devastating...
By Edward Ring
Pension Reform – The San Diego Model
Pension Reform – The San Diego Model
Beginning around 2009 it became clear to civic leaders and councilmembers that the City of San Diego faced serious financial challenges. A San Diego County Grand Jury in that year released a report that recommended the city file for bankruptcy. The report cited the underfunded City’s pension system as the primary underlying cause of their...
By Edward Ring
Tips for Negotiating with Public Sector Unions
Tips for Negotiating with Public Sector Unions
You’ve just been elected to the city council. You’re 34 years old and you’ve been attending your city council meetings for almost a decade. You’ve served on some civic improvement commissions. You’ve been a concerned activist for most of your life. But the firefighters union contract is being renegotiated this year, and you’re about to...
By Edward Ring
It’s time for your community to create a municipal audit
It’s time for your community to create a municipal audit
The San Diego District Attorney last week charged John Collins with misuse of hundreds of thousands of dollars over several years as superintendent of Poway Unified School District. The allegations would be shocking if they weren’t so common. In Placentia, Bell, Compton, Pasadena, Beaumont, and elsewhere, California cities have needlessly lost millions, and for a time, nobody knew....
By Edward Ring
In Search of Heroes
In Search of Heroes
California is not just any “blue state.” By many measures, California is a blue nation. It boasts the world’s sixth largest economy, isolated from the rest of the nation by mountains and deserts that were virtually impassable before modern times. It is blessed with diverse industries, abundant natural resources, and the most attractive weather in...
By Edward Ring
What if California’s Government Never Unionized?
What if California’s Government Never Unionized?
A story that still makes the rounds in Sacramento is that Governor Jerry Brown, speaking off-the-record to a group of business leaders back around 2009, admitted that the worst political decision of his life was signing legislation to permit public employees to form unions and engage in collective bargaining. Whether or not Governor Brown actually...
By Edward Ring
What Californians Could Build Using the $64 Billion Bullet Train Budget
What Californians Could Build Using the $64 Billion Bullet Train Budget
California’s High-Speed Rail project fails to justify itself according to any set of rational criteria. Its ridership projections are absurdly inflated, its environmental benefits are overstated if not actually net detriments, and its cost, its staggering cost, $64 billion by the latest estimate, overwhelms anyone with even a remote sense of financial proportions. To make...
By Edward Ring