CalPERS: the pension fund that ate California. A tale filled with lies, waste, and outright corruption that’s even worse than I thought (and I thought it plenty bad).
Via the indispensable Will Franklin comes this eye-opening comparison of welfare in California vs. Texas. “As you can see, California is practically in a quadrant unto itself, indicating a lot of people receiving a lot each in welfare benefits. Meanwhile, Texas is situated precisely in the opposite corner of the graphic, indicating that a low percentage of Texas’ residents are receiving welfare, and among those who are receiving welfare, they’re receiving smaller benefits than those living essentially anywhere else in the country.” Read the whole thing. And get a gander at the chart.
Jerry Brown gets voters to approve a measure that cuts California public employee union pensions a tiny, weensie bit. The result? “California Public Employees’ Retirement System is essentially going to defy the order that pensions will be calculated based on base pay by declaring enhancements and bonuses are part of base pay.” And some unions are suing to opt out. And Brown isn’t even willing to defend the reforms in court.
“The highest-paid 10 percent of Southern California Edison employees earned at least $418.8 million in combined total compensation during 2011, and charged at least $11.8 million to their expense accounts, according to a report the public utility filed with the state. SCE’s most recent annual report showed 19 executives and other SCE employees received more than $1 million in total compensation during 2011, and at least 130 others received $300,000 or more in total compensation.”
BATF tries to run a sting operation. The result? A lost machine gun, lost confidential information, $35,000 in stolen merchandise, and $15,000 unpaid bills.
“Gee, wouldn’t it be nice if the world had exactly zero guns in it? Then your daughter could fistfight her rapist.”
For Black History Month, here are Frederick Douglass quotes Including: “I am a Republican, a black, dyed in the wool Republican, and I never intend to belong to any other party than the party of freedom and progress.”
Best Twitter quote this week comes, strangely enough, from game show host Chuck Woolery: “The Constitution is not outdated, it is just an inconvenience to progressives. They hate it. I love it. You should too.”
Six California counties with their own pensions (instead of paying into the Golden State’s Public Employees’ Retirement System) would actually have to pay down $10 billion in pension deficits, versus the $4 billion they currently report bad on inflated rates of return. As a result, these counties would be expected by bondholders to pay out $1.4 billion a year just to pay down their pension deficits, more than double the $640 million they currently pay. For Contra Costa County near San Francisco, the percentage of property tax dollars devoted to pension deficit pay down would increase from 33 percent to 54 percent, crowding out funding for basic municipal activities. In short, these governments would be considered technically insolvent under Moody’s model.
That recalculation and other reforms should make California’s pension debt crises even more apparent.
CalPERS has a lot of ‘splain’ to do. Their rate of return and assets under management simply don’t add up.
John Stossel: “It’s good that we have places like Texas and New Hampshire to which fed-up citizens can escape. In Europe, you’d have to leave your country to escape its worst laws.” And one of the states they’re escaping is California, “the Greece of America.”
Judging from the Fiscal Cliff votes, the United States appears to be eager to follow in the footsteps of Greece and California, rushing to unsustainable spending, crushing debt loads and inevitable bankruptcy, rather than following the lead of Texas and the Red State model of debt-free limited government and free enterprise. So let’s see where the two states are, shall we?
Via Reason comes a link to the website Pension Tsunami, which contains much of interest for those charting California’s decline.
One method California cities are using to continue funding their heroin outrageous pension spending habit is issuing Pension Obligation Bonds, where they sell bonds to pay for pension obligations and then invest them. Indeed, some that got burned by the tactic in the 1990s (like Oakland) are trying again. “Bonds issued in 1997 were, on average, underwater in 2007, even before the stock market crash…’That’s like a compulsive gambler telling you that he has to bet it all on red to make up for his past losses.’”
“Bankruptcy is the best bet most cities have for getting out of their crushing health and retirement obligations to public workers….Government employee compensation, mostly for health and retirement, is at the heart of nearly all the current and looming municipal bankruptcies across the country.”
Over at TPPF, Chuck Devore wonders why Californians don’t stage a tax revolt. “In the meantime, Texas will be more than happy to receive into its welcoming arms people who want to work hard, invest, and create jobs.”
Ever notice how after every killing spree, liberals are quick to proclaim that no one needs an “assault rifle” for self defense? Well, this guy did, facing three armed assailants breaking in, and is still alive because of it.
There are a number of spree killers who have racked up high death tolls without using a gun. Or using a gun obtained illegally in a country where they’re banned.
Dear Senior Citizens: union jobs are more sacred than your very lives. Signed, a Democratic Judge.
Despite union threats to throw twice as big a hissy fit as Wisconsin liberals, Michigan Gov. Rick Snyder signed right-to-work legislation today, breaking the union stranglehold on jobs in the state. As in Wisconsin, expect union members to start keeping their own money in droves rather than give it to union bosses and the Democratic party.
In related news, peaceful union protestors stood aghast as aggressive Steve Crowder repeatedly drove his menacing face into an innocent Michigan union member’s Fist of Happiness:
Krauthammer: Republicans would be insane to take the “taxes now with a promise to consider cuts later” non-deal Obama is offering.
Especially since Obama’s tax hike “would have reduced the 2012 deficit from $1.10 trillion to $1.02 trillion.”
The national election was disappointing, but here in Texas Republicans continues to make gains. “Overall we have 796 more Republican elected officials in the State of Texas today than we did in 2008.”
Former Texas Democratic congressman Jack brooks has died.
And in case it got lost in the election night news, Steve Stockman, the Republican who retired Brooks in the 1994 election, is returning to congress representing the 36th district.
Displaying a willingness to perceive reality heretofore unguessed at, the Michigan senate passes right-to work legislation. Tomorrow: David Letterman’s Cold Day in Hell Special.
School goes into lockdown because a student brought…a thermometer.
Save the life of a fellow employee at AutoZone? That’s a firing. (Hat tip (last two): Alphecca.)
Once you find out that PSY once sang “Kill those f*cking Yankees who have been torturing Iraqi captives/Kill those f*cking Yankees who ordered them to torture/Kill their daughters, mothers, daughters-in-law and fathers/Kill them all slowly and painfully,” suddenly “Gangnam Style” doesn’t seem quite so amusing.
Lots of larger pieces in various stage of construction, but rather than put them up when everyone is getting ready for Thanksgiving, here’s a quick LinkSwarm:
Former Sen. Warren Rudman dead at age 82. Gramm-Rudman-Hollings really worked at controlling the deficit. That’s why Democrats had to kill it.
Israel and Hamas agree to a ceasefire. Pretty much ensuring that we’ll go through this whole charade again a year or two down the road.
The Bakery, Confectionery, Tobacco and Grain Millers Union, having been given a second chance by a federal judge, decided that the first hole in their foot just wasn’t big enough and decided to shoot again. Hostess is still dead.
Two weeks after wining reelection, and facing an FBI probe for corruption, Jesse Jackson, Jr. resigns. Like father like son.
Another quick update on the respective fates of our nation’s two biggest states:
In case you didn’t notice, California Democrats now have a super-majority in the legislature, which means they can raise taxes to their heart’s content. That should only heighten the difference between California’s Blue State model and Texas’ Red State model.
California spends far more money on its welfare state that Texas, but has greater income inequality.
