The specter of California’s cities and counties becoming insolvent is nothing new. Three major California cities have already declared bankruptcy, Vallejo in 2008, Stockton and San Bernardino in 2012. In October 2019, the California State Auditor’s Office reported on the fiscal health of 471 California cities. On what the California State Auditor’s office describes as a “Local Government...

Governor Newsom has unveiled his budget proposal for the fiscal year 2020-21, and it comes in at a whopping $222 billion. That’s up from $209 billion last year, and sharply up from a few years ago. Backing up a decade, the 2010-11 budget totaled $130 billion. What on earth could justify a 70 percent increase...

In the early 2000s, along with many other cities, state agencies and counties in California, Sonoma County enhanced their employee pension benefits. As of 6/30/2018, Sonoma County’s pension system had $2.7 billion of invested assets, but nearly $3.1 billion in actuarial accrued liabilities. To what extent is its $400 million unfunded liability attributable to the...