COVID-19 Worsens Fiscal Distress for Lindsay California
COVID-19 Worsens Fiscal Distress for Lindsay California
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...
By Marc Joffe
Crisis shows why El Cerrito needs to heed State Auditor’s warning
Crisis shows why El Cerrito needs to heed State Auditor’s warning
The economic crisis arising from the public health crisis we now face shows why the state auditor was correct in calling out El Cerrito and several other California cities for their perilous financial positions during a decade of economic growth. While El Cerrito may have been able to “get away” with uncontrolled spending during good...
By Marc Joffe
Elizabeth Warren’s Private Equity Plan May Harm Public Employees
Elizabeth Warren’s Private Equity Plan May Harm Public Employees
Last week, Sen. Elizabeth Warren (D-MA), a 2020 presidential candidate, proposed a plan to rein in private equity funds that engage in leveraged buyouts—acquiring companies with large amounts of borrowed money. Although the idea of cracking down on financial engineering is attractive to many, it could have the unintended consequence of lowering asset returns for public...
By Marc Joffe
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
To Reduce Wildfire Dangers, Focus on What Matters
To Reduce Wildfire Dangers, Focus on What Matters
Political leaders and pundits have been quick to link this month’s horrific wildfires to climate change, leading to the conclusion that California should continue and even double down on its carbon reduction policies. But the evidence suggests that these policies will make little difference in the frequency and severity of these disasters, and our scarce...
By Marc Joffe
Rapidly growing hyperloop industry offers alternative to California high-speed rail
Rapidly growing hyperloop industry offers alternative to California high-speed rail
Since Elon Musk introduced hyperloop in 2012, several startups have been formed to commercialize the technology. Hyperloop is a 21st century approach to intercity travel in which pods fly through sealed, low pressure tubes at speeds of up to 760mph. Although a large amount of hyperloop research is occurring in California, our state government is...
By Marc Joffe
In West Contra Costa County, bureaucrats splurge on taxpayer money
In West Contra Costa County, bureaucrats splurge on taxpayer money
Despite living in the affluent Bay Area, residents of western Contra Costa County have been plagued by a rash of government fiscal crises. The region’s healthcare district filed for bankruptcy twice and is now no longer providing services despite collecting $5.5 million in annual parcel taxes. West County’s largest city, Richmond, carries a junk bond...
By Marc Joffe
Out of the pension thicket
Out of the pension thicket
How Can Local Elected Officials Control Employee Retirement Costs Employee retirement costs are a growing burden for California governments. As CalPERS and other multi-employer systems reduce their expected rates of return, required employer pension contributions are rising rapidly, usually outpacing revenue growth. As a result, retirement expenditures are crowding out other spending priorities, and, in...
By Marc Joffe
Republican Senate healthcare plan is a better Rx than California single-payer
Republican Senate healthcare plan is a better Rx than California single-payer
Mainstream media are taking a short break from their 24/7 Trump-Russia conspiracy theorizing to bash the Senate Republican healthcare proposal. Viewers are being told that the proposal would gut Medicaid and kill thousands. Like any piece of complex legislation, the Senate bill is far from perfect, but it is an important step in the right direction...
By Marc Joffe
Single Payer and Progressive Economic Illiteracy
Single Payer and Progressive Economic Illiteracy
California State Senate passage of an especially bad single payer health care bill earlier this month is testimony to the economic and fiscal illiteracy of RoseAnn DeMoro, the California Nurses Association leader who is pushing this bill through the legislature. DeMoro makes over $350,000 per year ostensibly to protect nurse’s salaries and benefits, but she...
By Marc Joffe
Liberating neighborhood schools through school district separation
Liberating neighborhood schools through school district separation
Large school districts are often less responsive to the needs of students and the hopes of parents than smaller districts. Public educational behemoths – such as Los Angeles Unified – are more likely to fall under the influence of well-organized interest groups such as teachers’ unions. By breaking up large districts into smaller ones, parents...
By Marc Joffe
Single-payer bill could bankrupt California
Single-payer bill could bankrupt California
The state Senate’s vote to pass Ricardo Lara’s single-payer healthcare bill last week was a singular act of fiscal malpractice. By failing to control costs and access to the program – and by leaving unanswered how or whether federal funds could be leveraged – Lara’s Healthy California Act amounts to a blank check for hospitals,...
By Marc Joffe
Borrowing to fund pensions could make California the next Puerto Rico
Borrowing to fund pensions could make California the next Puerto Rico
Governor Brown's proposal to borrow money to fund CalPERS is similar to a move by Puerto Rico in 2008. That step backfired and now Puerto Rico is bankrupt.
By Marc Joffe
Former LAUSD Superintendent draws $238k pension
Former LAUSD Superintendent draws $238k pension
Retired LA schools chief Ramon Cortines received pension benefits totaling a remarkable $238,383.67 last year, possibly through a controversial pension-spiking practice known as “air time” – the purchase of credit for time not worked.
By Marc Joffe