Another Texas vs. California roundup:
— Red State Women (@RedStateWomen) July 23, 2014
Another Texas vs. California roundup:
— Red State Women (@RedStateWomen) July 23, 2014
This has not been Wendy Davis’ week.
First Greg Abbott’s campaign announces that he has more than $35 million cash on hand. Since Abbott was already the prohibitive favorite, hearing that he’s shattered Texas gubernatorial fundraising records wasn’t exactly a ray of sunshine for Team Wendy.
Second, a Dallas Morning News headline proclaims that “Hollywood luminaries, labor and trial lawyers fuel Wendy Davis campaign.” Thus reminding everyone yet again that Davis is a liberal media darling whose fundraising occurs out of state because she’s far more popular in Hollywood than in Texas.
Now even the Democrat-friendly Texas Tribune is debunking her fund-raising numbers:
Instead of $13.1 million in cash on hand as claimed, the reports Davis and her allies filed show there was actually $12.8 million in the bank at the end of June, a difference of about $300,000.
Meanwhile, the $11.2 million Davis claims she raised over the latest period — an amount she said was larger than the $11.1 million Abbott raised — contains over half a million dollars in non-cash “in-kind” donations and counts contributions that could benefit other Democratic candidates.
One of the biggest sources of non-cash donations: a $250,000 in-kind contribution from country singing legend Willie Nelson. That’s how much the red-headed stranger told the campaign he would have charged for a free concert he gave at the senator’s Houston fundraiser, the campaign said.
The lower-than-advertised cash figure and non-traditional accounting methods raise questions about how much money can be accurately attributed to Davis for the latest period.
It was the cash-on-hand figure from Battleground Texas that came in lower than advertised. In the press release, the Davis campaign said Battleground would report $1.1 million in the bank. But Battleground told the Ethics Commission it only had $806,000 in the bank.
That’s a double-dose of good news: The hopeless Davis campaign is sucking up money that might go to competitive races nationwide, and the well is running dry on Battleground Texas, which might conceivably be able to swing a few down-ballot races with better funding.
And the general election is four months away…
Some other stuff bubbling up, so here’s a Texas vs. California update to tide you over for a while:
More news from inside the handbasket, including the dust-up in Gaza and the illegal alien surge at the border:
— Dan McLaughlin (@baseballcrank) July 10, 2014
— YCT-UT (@YCT_UT) July 10, 2014
Here’s a LinkSwarm to kick your week off with:
Lots of news on the Texas vs. California front. An audit turns up $31 billion in California budget mistakes, Democrats hike the minimum wage there, Jerry Brown tries to do something about the growing CalSTARS pension deficit, and people and businesses continue to depart the “Golden State” for Texas…
The California Bureau of State Audits set off a scandal on June 1st by disclosing that the State Controller’s Office made accounting misstatements amounting to $31.65 billion. The timing of the announcement may be devastating to the Democrats who expected to use their super-majority to pass billions of dollars in increased spending, but may now find the net effects of the accounting restatements are a $7 billion General Fund deficit.
As the former Treasurer of Orange County, California it is my preliminary judgment that under state law the negative $7.847 billion impact from overstating general fund assets and revenues and overstating deferred tax revenues may create an “on-budget” deficit to the state’s $96.3 billion “General Fund Budget.”
Union-dominated states are sinking further into economic stagnation as Democratic politicians increasingly dominate the local political climate. In 2012, California Democrats won a supermajority in both houses of the legislature and proceeded to accelerate a tax and spending spree that has been ongoing for two decades. For example, California now has the nation’s top state income-tax rate, at 13.3 percent.
Those kind of policies have consequences. The Manhattan Institute released a report in 2012 that found that since 1990, California had lost nearly 3.4 million residents to other states with lower tax rates.
The U.S. is swiftly becoming a tale of two nations. States that are following the Reagan model of low taxes and incentives are booming while states that are opting for the Obama model of wealth redistribution and European welfare-state economics are stagnating.
As a growing number of Americans choose to call Texas home, it is critical that policymakers not lose sight of the reasons why: low taxes, limited government, and personal responsibility. Liberty is popular. That’s a message that needs reinforcement, particularly at the local level where some of the macro level trends involving taxes, spending, and debt are moving in the wrong direction. We can keep Texas and our cities beacons of prosperity and flourishing — but to do that, we must understand the principles that got us here, and defend them in policy and the public square.
Time for another Texas vs. California roundup:
“Texas is the best state for business and I don’t see anything to slow TX down. The education and quality of eligible employees is excellent right now. Business is booming and growing quicker and more rapidly in 2014 than any other year. It’s an exciting time in Texas.”
“California goes out of its way to be anti-business and particularly where one might put manufacturing and/or distribution operations.”
“California continues to lead in disincentives for growth businesses to stay.”
“California’s attitude toward business makes you question why anyone would build a business there.”
“California could hardly do more to discourage business if that was the goal. The regulatory, tax and political environment are crushing.”
California v. Texas in One Chart: More Housing Starts in Houston from 2011-2014 than the Entire State of California pic.twitter.com/hO5RetaTae
— Mark J. Perry (@Mark_J_Perry) May 10, 2014
Then factors that appear to explain from 13 percent to 30 percent of the differences in trust among the states: rate of union membership,with more trust in states with lower union membership; state’s level of soft tyranny, a measure of the power of state government over its people; percentage of state and local taxes as a share of income, with lower taxes leading to more trust; the right to keep and bear arms, with citizens trusting a government that trusts them to defend themselves; a business-friendly lawsuit climate; the days the legislature is in session, with less trust as the legislature approaches full-time; and the average commute time, with less time spent in traffic leading to more trust.
Lastly, a combination of from two to four of the previous factors correlates to 34 to 41 percent of the trust in each state with a mix of four: taxes, gun rights, lawsuit reform and commute time, showing the highest link to trust. Comparatively speaking, Texas lawmakers have done well in these four areas of public policy.
When building trust in state government, enacting liberty-minded legislation is a good place to start.
Big news, as one of the world’s largest car makers decides to abandon tax-and-spend California for the Lone Star State:
California has become infamous with business executives and owners there not only for high tax rates and complex taxing schemes but also for overzealous regulations and regulators that have managed to stifle the entrepreneurial energy of thousands of companies.
Today sucks if you still have to finish your taxes. It sucks more in California than Texas, since you have to pay state income taxes as well. That includes a marginal tax rate of 9.3% for all those millionaires making more than $49,774 a year. As opposed to Texas’ marginal rate of 0.0% for all…
Texas and Washington offer low corporate income tax and no personal income tax, while providing a stable business climate and skilled work force. Many high-profile corporations have relocated their operations to new states. Recent examples include Northrop Grumman, which moved its headquarters to Northern Virginia; Raytheon Space and Airborne Systems, which moved its headquarters to McKinney, Texas; and Boeing, which moved two aircraft modernization programs, for the C-130 Hercules military transport aircraft and the B-1 bomber, from Long Beach to Oklahoma City.
The state teacher pension fund, CalSTRS, needs an extra $4.5 billion each year for 30 years to pay off its unfunded liabilities. CalPERS’ local government members will see costs increase by 50 percent during the next six years. And the state needs to contribute $1 billion more per year for retiree health care benefits.
These obligations for benefits already earned must be paid, and over the next decade, they will continue to drain funding from essential services such as education, public safety, transportation and health care.
Yet, powerful interests remain all too eager to kick the can down the road and push our pension problems onto future generations.
In California, I would say that March Madness is ignoring the looming pension crisis, except that madness extends to every other month as well…
Perhaps no place is inequality more evident than in the rural reaches of California, the nation’s richest agricultural state. The Golden State is now home to 111 billionaires, by far the most of any state; California billionaires personally hold assets worth $485 billion, more than the entire GDP of all but 24 countries in the world. Yet the state also suffers the highest poverty rate in the country (adjusted for housing costs), above 23%, and a leviathan welfare state. As of 2012, with roughly 12% of the population, California accounted for roughly one-third of the nation’s welfare recipients.
With the farm economy increasingly mechanized and industrial growth stifled largely by regulation, many rural Californians particularly Latinos, are downwardly mobile, and doing worse than their parents; native-born Latinos actually have shorter lifespans than their parents, according to a 2011 report. Although unemployment remains high in many of the state’s largest urban counties, the highest unemployment is concentrated in the rural counties of the interior. Fresno was found in one study to have the least well-off Congressional district.
The vast expanse of economic decline in the midst of unprecedented, but very narrow urban luxury has been characterized as “liberal apartheid.” The well-heeled, largely white and Asian coastal denizens live in an economically inaccessible bubble insulated from the largely poor, working-class, heavily Latino communities in the eastern interior of the state.
California also has the nation’s highest poverty rate and the most food stamp recipients, and policymakers have done little to address profligate spending, unfunded pensions, and ever-growing retiree health-care obligations.”
Inland California, from Imperial in the south to Modoc in the north, remains one of the poorest regions in the nation. Though the state unemployment rate fell in February to 8.1 percent, inland unemployment ranges from 9.5 percent in Riverside to 25.9 percent in Colusa. Of the 20 counties in the United States with the largest unemployment rates, 11 are in California.