Last spring, when I wrote “The Rise of Zombie Cities,” I thought that, by now, some of my statements would have been proven prophetic. In the article, I discussed the results of the California State Auditor’s 2022 report on the “Fiscal Health of Cities.” I also noted several negative trends affecting city finances, such as...

As international tensions threaten US and global energy supplies, the California State Senate is considering legislation that would compel public pension funds to divest from fossil fuel companies, potentially starving these firms of capital. The Senate bill is the latest in a series of initiatives designed to replace traditional portfolio management with a set of...

On July 1, 2020, the City of Placentia formally terminated its contract with the Orange County Fire Authority, where the average operations employee in 2018 collected pay and benefits in excess of $241,000. Seeking to create a new model that reduced these unaffordable levels of pay and benefits, as well as made more efficient use of...

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...

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...

It’s been a long time since California’s pension systems were responsibly managed. Back then, they made conservative investments, paid modest but fair benefits to retirees, and did not place an unreasonable financial burden on taxpayers. But a series of decisions and circumstances over the past thirty years put these pension systems on a collision course...

Now that financial markets around the world are experiencing a long-overdue correction, the best we can hope for is that we hit bottom before a deflationary cascade causes a worldwide depression. Those economists who believe in the long-term debt cycle may claim that this time the end has arrived, and they may be right. COVID-19, oil price...

With 2020 upon us, it appears likely that two unions representing Santa Clara County employees will be going on strike. Unless agreements can be reached, 3,000 members of the Registered Nurses Professional Association will strike, along with over 11,000 members of the SEIU. When one considers the political leanings of the Santa Clara County Board of Supervisors,...