San Jose, Other Cities Can Look Toward “Service Insolvency”
San Jose, Other Cities Can Look Toward “Service Insolvency”
San Jose is only 117 miles from Sacramento, yet the ongoing plight of this beacon of Silicon Valley falls on deaf ears at the state Capitol. The city’s Democratic mayor certainly isn’t getting any aid from legislators. Fortunately, a recent article in the Washington Post shows that the message might be getting out any way. “Here in...
By Steven Greenhut
Desperate Hot Springs – Another California city teeters on the edge of bankruptcy
Desperate Hot Springs – Another California city teeters on the edge of bankruptcy
In what may be the most embarrassing California-related headline to appear in a while, Reuters announced last month: Tony resort city mulls bankruptcy, blaming wages, pensions. That supposedly “tony” city is Desert Hot Springs, on the northern edge of the Coachella Valley near Palm Springs. Though it’s certainly true that Palm Springs and many of its...
By Steven Greenhut
California’s Public Sector Union Pension Secrecy Lobby
California’s Public Sector Union Pension Secrecy Lobby
Last month, the California Public Employees’ Retirement System (CalPERS) announced that it would post the names and pension amounts of its retirees. But after the Retired Public Employees Association of California (RPEA) objected, CalPERS quickly pulled back from this pledge. RPEA leaders made what amounted to a novel and troubling argument about why vital public...
By Steven Greenhut
Union Friendly National Security Bureaucrat Picked to Head University of California
Union Friendly National Security Bureaucrat Picked to Head University of California
With its 10 campuses, nearly 200,000 staff, and $20 billion annual budget, the University of California system is emblematic of the state government that pays a portion of its bills – enormous, unruly, overly expensive, steeped in politics, dominated by unions and other special-interest groups, and plagued with controversy. California voters in 2010 turned the...
By Steven Greenhut
California Pension Reformers Plan New State Ballot Initiative
California Pension Reformers Plan New State Ballot Initiative
A statewide constitutional initiative planned for 2014 would tackle the biggest obstacle to meaningful pension reform: vested benefits. Right now, with certain exceptions, California municipalities may not reduce pension benefits for current employees—unlike in the private sector, where employers can change the terms of employees’ current pension plans, making them less generous. The courts have...
By Steven Greenhut
The Bipartisan Potential of Civil Libertarians
The Bipartisan Potential of Civil Libertarians
The Obama administration has gotten itself into a fix between its contradictory stories about the Benghazi incident, reports of the IRS targeting conservative groups, and the Justice Department’s grabbing of phone records from AP reporters. There are few things more fun to watch than arrogant political leaders — folks who spend their lives bossing everyone...
By Steven Greenhut
To the Public Sector Unions, California is now the model for America
To the Public Sector Unions, California is now the model for America
Ever since California’s voters approved the Prop. 30 sales-and income-tax increase on the November ballot, liberal commentators have been gloating about the resurgence of the Golden State after many years of predicted doom and gloom. Their evidence: Higher taxes seem to have cleared up the state’s budget deficits. As New York Times columnist Paul Krugman wrote recently,...
By Steven Greenhut
Union Greed Drives California to Bankruptcy
Union Greed Drives California to Bankruptcy
Few non-local people pay much attention to the goings-on in Stockton, a hard-pressed Gold-Rush-era industrial city of 300,000 that sits in the agriculturally rich San Joaquin Valley at the eastern edge of the California Delta. But bondholders, taxpayers and government officials throughout the country will be listening to U.S. Bankruptcy Judge Christopher Klein’s expected ruling...
By Steven Greenhut
Politicians Prefer Scare Tactics to Genuine Reform
Politicians Prefer Scare Tactics to Genuine Reform
Not many of my friends or neighbors are sitting on pins and needles, worrying that the world as we know it will end as the federal government “slashes” spending as part of the automatic sequester cuts mandated by a previous budget bill. And not many people have been thinking, “Geesh, there’s nothing we need more...
By Steven Greenhut
California A Model For Other States?
California A Model For Other States?
California’s modern-day progressive Democrats keep crowing about the huge success they’ve had in taming the state’s budget deficit, thanks to Proposition 30’s tax increases and other “reforms,” and now are championing the Jerry Brown model as a blueprint for the nation. Is that realistic? It’s one thing that other states have to deal with our...
By Steven Greenhut
Public Borrowing for Union Benefits: Brown Still Not Scaling Wall of Debt
Public Borrowing for Union Benefits: Brown Still Not Scaling Wall of Debt
Gov. Jerry Brown continues to pose as an iconoclast who is willing to make the tough choices necessary to keep California afloat, but his new budget is more evidence that he remains the cat’s-paw for the state’s public-sector unions. “I want to advance the progressive agenda,” Brown said at the news conference unveiling his supposedly...
By Steven Greenhut
Californians Hand Their PIN Numbers Over to Unionized Government
Californians Hand Their PIN Numbers Over to Unionized Government
After the election results came in, I started searching for two things: a stiff drink and a good out-of-state real estate agent. The national election sends troubling signs about the direction of the country, but nothing much will change from the past four years, so we know what to expect, even if it isn’t particularly...
By Steven Greenhut