Posts Tagged ‘Jerry Brown’

Texas vs. California Update for May 22, 2017

Monday, May 22nd, 2017

We’re in the home stretch of hammering out the Texas biannual state budget, which has to be completed by May 29. Until then, enjoy another Texas vs. California roundup:

  • Stop me if you’ve heard this before: Texas is once again ranked the best state for business, while California is ranked the worst. (Hat tip: Will Franklin’s Twitter feed.)
  • California’s big-government model eats its young:

    In this era of anti-Trump resistance, many progressives see California as a model of enlightenment. The Golden State’s post-2010 recovery has won plaudits in the progressive press from the New York Times’s Paul Krugman, among others. Yet if one looks at the effects of the state’s policies on key Democratic constituencies— millennials, minorities, and the poor—the picture is dismal. A recent United Way study found that close to one-third of state residents can barely pay their bills, largely due to housing costs. When adjusted for these costs, California leads all states—even historically poor Mississippi—in the percentage of its people living in poverty.

    California is home to 77 of the country’s 297 most “economically challenged” cities, based on poverty and unemployment levels. The population of these cities totals more than 12 million. In his new book on the nation’s urban crisis, author Richard Florida ranks three California metropolitan areas—Los Angeles, San Francisco, and San Diego— among the five most unequal in the nation. California, with housing prices 230 percent above the national average, is home to many of the nation’s most unaffordable urban areas, including not only the predictably expensive large metros but also smaller cities such as Santa Cruz, Santa Barbara, and San Luis Obispo. Unsurprisingly, the state’s middle class is disappearing the fastest of any state.

    California’s young population is particularly challenged. As we spell out in our new report from Chapman University and the California Association of Realtors, California has the third-lowest percentage of people aged 25 to 34 who own their own homes—only New York and Hawaii’s are lower. In San Francisco, Los Angeles, and San Diego, the 25-to-34 homeownership rates range from 19.6 percent to 22.6 percent—40 percent or more below the national average.

  • California continues to slouch toward socialized medicine. “California’s current system relies in large part on employer-sponsored insurance, which is still the source of health care coverage for tens of millions of people. That coverage would disappear under SB 562. Instead of receiving coverage financed by their employers, working Californians would see a tax increase of well over $10,000 per year for many middle-income families.” (Hat tip: Legal Insurrection.)
  • “If you live in California, have a job and pay taxes Governor Jerry Brown would like you to know that you’re a freeloader and he’s tired of your complaining.”
  • “Congratulations, California. You keep electing these same Democrats over and over again. and then you act surprised when they make you one of the most heavily taxed populations in the country. And when you finally raise your voices to protest the out of control taxation and spending, the state party’s titular leader is brazen enough to come straight out and tell you what he really thinks of you.”
  • Has the Democrats latest gas tax hike created an actual tax revolt in California? (Hat tip: Ace of Spades HQ.)
  • One lawmaker is the target of a recall petition over the tax hike: “Perceived as the most vulnerable of the legislative Democrats who passed Gov. Jerry Brown’s gas and vehicle tax package by a razor-thin margin, freshman state Sen. Josh Newman, D-Fullerton, faced an intensifying campaign to turn him out of office, potentially depriving his party of the two-thirds majority that allowed them to pass Brown’s infrastructure bill in the first place.”
  • Vance Ginn’s monthly summary of Texas economic data. Lot’s of data, including the fact that all major Texas cities created jobs in 2016 except Houston, which was down just a smidge.
  • San Bernardino could go bankrupt again.
  • Buying a house in Southern California is insane. (Hat tip: Stephen Green at Instapundit.)
  • California starts selling bonds for the doomed “high speed rail.”
  • 40-60 “youth” flash mob robs passengers on Oakland BART train. The complete absence of descriptions or pictures cues the astute modern American reader in to the ethnic makeup of the mob. (Hat tip: Ace of Spades HQ.)
  • “Gov. Jerry Brown and state Treasurer John Chiang have a plan to help cover the state’s soaring pension payments: Borrow money at low interest rates and invest it to make a profit. What could go wrong?” I can see it now: “Come on seven! Baby needs a new High Speed Rail!” Also this: “The problem was exacerbated because Brown’s so-called pension “reform” of 2012 failed to significantly rein in retirement costs. Statewide pension debt has increased 36 percent since his changes took effect.” (Hat tip: Pension Tsunami.)
  • “Riverside utilities dispatcher triples salary to nearly $400,000 with state’s 10th largest overtime payout.” (Hat tip: Pension Tsunami.)
  • And speaking of California public employees working overtime:

    The time cards Oakland city worker Kenny Lau turned in last year paint a stunning, if not improbable, picture of one man’s work ethic.

    Lau, a civil engineer, often started his days at 10 a.m. and clocked out at 4 a.m., only to get back to work at 10 a.m. for another marathon day. He never took a sick day. He worked every weekend and took no vacation days.

    He worked every holiday, including the most popular ones that shut down much of the nation’s businesses: 12 hours on Thanksgiving and eight hours on Christmas.

    In fact, his time cards show he worked all 366 days of the leap year, at times putting in 90-plus-hour workweeks. He worked so much that he quadrupled his salary. His regular compensation and overtime pay — including benefits, $485,275 — made him the city’s highest-paid worker and the fourth-highest overtime earner of California public employees in 2016.

    (Hat tip: Pension Tsunami.)

  • The Los Angeles Unified School District has decided it can break federal immigration laws at will. “No immigration officers will be allowed on campus without clearance from the superintendent of schools, who will consult with district lawyers. Until that happens, they won’t be let in, even if they arrive with a legally valid subpoena.” There’s no way such a genius decision could possibly backfire on them… (Hat tip: Director Blue.)
  • How California hurts the poor by jacking up traffic fines. (Hat tip: Pension Tsunami.)
  • “San Diego using loophole to hand out large raises during pay freeze.” It’s a blatant attempt to evade Proposition B.
  • An auditor funds the University of California President’s office of Janet Napolitano had a secret slush fund:
    • The Office of the President has accumulated more than $175 million in undisclosed restricted and discretionary reserves;
      as of fiscal year 2015–16, it had $83 million in its restricted reserve and $92 million in its discretionary reserve.

    • More than one-third of its discretionary reserve, or $32 million, came from unspent funds from the campus assessment—an annual charge that the Office of the President levies on campuses to fund the majority of its discretionary operations.
    • In certain years, the Office of the President requested and received approval from the Board of Regents (regents) to
      increase the campus assessment even though it had not spent all of the funds it received from campuses in prior years.

    • The Office of the President did not disclose the reserves it had accumulated, nor did it inform the regents of the annual undisclosed budget that it created to spend some of those funds. The undisclosed budget ranged from $77 million to
      $114 million during the four years we reviewed.

    • The Office of the President was unable to provide a complete listing of the systemwide initiatives, their costs, or an assessment of their continued benefit to the university.
    • While it appears that the Office of the President’s administrative spending increased by 28 percent, or $80 million, from fiscal years 2012–13 through 2015–16, the Office of the President continues to lack consistent definitions of and methods for tracking the university’s administrative expenses.

    An Ex-Obama Administration official with a secret slush fund? What are the odds?

  • Texas continues to attract net in-migration from every region.
  • California wants to tax rockets launched from California into orbit, based on miles traveled away from California. I’m sure many of Texas own spaceflight companies will welcome any business California drives out…
  • Speaking of spaceflight, Elon Musk’s Space X, just like Telsa, is more emblematic of subsidies and special favors than the free market:

    Tesla survives on the back of hefty subsidies paid for by hard-working Americans just barely getting by so that a select few can drive flashy, expensive electric sports cars. These subsidies were originally scheduled to expire later this year, and Tesla is lobbying hard to make sure that taxpayers continue to pay $7,500 per car or more to fund their business model. Tesla even tried to force taxpayers to pay for charging stations that would primarily benefit their business. That is not what Musk’s high priced image managers will tell you, but it’s the truth.

    SpaceX is even worse — its business model isn’t to invest its money developing competing space products that meet the same safety and reliability standards as the rest of the industry. Instead, its business model is to get billions in taxpayer money and push, bend, and demand regulatory special favors. Then, it produces a rocket that is more known for failed launches, long delays, and consistently missed deadlines.

  • How California’s air emission rules went to far.
  • “California may end ban on communists in government jobs.” (Hat tip: Ace of Spades HQ.)
  • Bachrach Clothing Stores File for Bankruptcy Protection in Los Angeles.”
  • “California solar installer HelioPower filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Nevada.”
  • Hudson Products relocating from Tulsa to Rosenberg, Texas.
  • “Bay Area bookseller Bill Petrocelli is filing a lawsuit against the state of California, hoping to force a repeal of the state’s controversial ‘Autograph Law.’ The law, booksellers claim, threatens to bury bookstore author signings under red tape and potential liabilities. Petrocelli, co-owner of Book Passage, filed Passage v. Becerra in U.S. District Court for the North District of California, pitting the bookstore against California State Attorney General Xavier Becerra.” As a bookseller on the side, I can tell you that California’s law is particularly asinine and is completely ignorant of the signed book trade.
  • Texas vs. California Update for February 15, 2017

    Wednesday, February 15th, 2017

    Welcome to another Texas vs. California Roundup!

  • California Governor Jerry Brown wants to hike gas taxes by 42% to bail out CalPERS.
  • Brown’s pension reforms have failed:

    Since 2012 passage of his much-heralded changes to state retirement laws for public employee, the pension debt foisted on California taxpayers has only grown larger.

    The shortfall for California’s three statewide retirement systems has increased about 36 percent. Add in local pension systems and the total debt has reached at least $374 billion. That works out to about $29,000 per household.

    It’s actually much worse than that. Those numbers are calculated using the pension systems’ overly optimistic assumptions about future investment earnings.

    Using more conservative assumptions, the debt could be more than $1 trillion.

  • And speaking of Brown: Math is hard.
  • Why California can’t repair its infrastructure: “California’s government, like the federal government and most other state and local governments, spends its money on salaries, benefits, pensions, and other forms of employee compensation. The numbers are contentious — for obvious political reasons — but it is estimated that something between half and 80 percent of California’s state and local spending ultimately goes to employee compensation.”
  • Put another way: “Governor Moonbeam and the other leftist kooks in charge are flushing a staggering $10 billion down an unneeded high-speed rail project, on top of the still more staggering $25.3 billion per year they spend on the illegal aliens they have gone out of their way to welcome.” (Hat tip: Director Blue.)
  • California can’t afford green energy:

    California has the highest taxes overall in the nation, worst roads, underperforming schools, and the recent budget has at least a $1.6 billion shortfall.

    Moreover, depending on how the numbers are analyzed California has either a $1.3 or a $2.8 trillion outstanding debt. This is before counting the maintenance work needed for infrastructure, particularly roads, bridges and water systems. Yet tax increases aren’t covering these obligations.

  • Three of the ten least affordable cities in the World are in California: Los Angeles, San Francisco and San Jose.
  • Austin named best city to live in the U.S. But wait! San Jose ranks third! I can only assume that “affordability” was not a significant criteria. Dallas/Ft. Worth ranks 15th (one ahead of San Francisco), Houston 20th, San Antonio 23rd (one behind San Diego).
  • “A sizzling residential real estate market fueled by incoming Californians, low supply, high demand, flat salaries, and local property taxes are pricing people out of homeownership in Austin.” More: “The Texas A&M Real Estate Center examined the Austin local market area (LMA) over five years. In January 2011, the Austin-Georgetown-Round Rock area median home prices were $199,700. By January 2015, that median hovered at $287,000. At the end of 2016, university real estate analysts found the home mid-price point at $332,000.” Of course, in my neck of the woods, $332,000 will buy you a 2,500 square foot house, while in San Francisco, you’d be lucky to find a 500 square foot condo…
  • “An IGS-UC Berkeley poll shows that 74 percent of Californians want sanctuary cities ended; 65 percent of Hispanics, 70 percent of independents, 73 percent of Democrats and 82 percent of Republicans.”
  • Of the top 20 cities for illegal aliens, five (Los Angeles, San Francisco, San Jose, San Diego and Riverside) are in California, while three (Houston, Austin and Dallas/Ft. Worth) are in Texas. I’m actually a bit surprised to see that San Antonio isn’t on that list, while Seattle and Boston are. “American citizens who paid into the system don’t receive benefits like long-term medical care because — in part — we’re all subsidizing aliens.”
  • California pays $25.3 billion in illegal alien benefits, or $2,370 per household. (Hat tip: Director Blue.)
  • By contrast, Texas pays $12.1 billion in illegal alien benefits, or $1,187 per household. (IBID)
  • “In testimony provided before the California Senate’s Public Safety Committee, Senate President Pro Tem Kevin De Leon (D-Los Angeles) decided to admit that “half of his family” is residing in the United States illegally and with the possession of falsified Social Security Cards and green cards.”
  • “California spent on high-speed rail and illegal immigrants, but ignored Oroville Dam.”
  • Pensions are breaking budgets across San Diego. (Hat tip: Pension Tsunami.)
  • “Despite California having some of the best recreation spots in the world, we have systematically reduced our business in California by 50%, and I have a moratorium in place on accepting new business (I won’t even look at RFP’s and proposals to avoid being tempted.)”
  • That same blogger on why his company pulled out of Ventura, California. Like this:

    It took years in Ventura County to make even the simplest modifications to the campground we ran. For example, it took 7 separate permits from the County (each requiring a substantial payment) just to remove a wooden deck that the County inspector had condemned. In order to allow us to temporarily park a small concession trailer in the parking lot, we had to (among other steps) take a soil sample of the dirt under the asphalt of the parking lot. It took 3 years to permit a simple 500 gallon fuel tank with CARB and the County equivalent. The entire campground desperately needed a major renovation but the smallest change would have triggered millions of dollars of new facility requirements from the County that we simply could not afford.

    And this:

    A local attorney held regular evening meetings with my employees to brainstorm new ways the could sue our company under arcane California law. For example, we went through three iterations of rules and procedures trying to comply with California break law and changing “safe” harbors supposedly provided by California court decisions. We only successfully stopped the suits by implementing a fingerprint timekeeping system and making it an automatic termination offense to work through lunch. This operation has about 25 employees vs. 400 for the rest of the company. 100% of our lawsuits from employees over our entire 10-year history came from this one site. At first we thought it was a manager issue, so we kept sending in our best managers from around the country to run the place, but the suits just continued.

  • California has some of the highest taxes in the nation, but can’t pay for road maintenance:

    Texas has no state income tax, yet excellent highways and schools that perform above average, way above California’s bottom-dwellers. Yet both states have similar demographics. For example, in the 2010 U.S. Census, Texas was 37% Hispanic, California 37.6%.

    Texas is a First World state with no state income tax that enjoys great roads and schools. California is a Third World state restrained from getting worse only by its umbilical-cord attachment to the other 49 states, a cord the Calexit movement wants to cut, but won’t get to.

    California is Venezuela on the Pacific, a Third World state and wannabe Third World country; a place with great natural beauty, talented people, natural resources – and a government run by oligarchs and functionaries who treat the rest of us as peons.

    (Hat tip: Pension Tsunami.)

  • “Texas Ends 2016 with 210,200 Jobs Added Over the Year.”
  • All Houston does economically is win.

    The Houston metropolitan area’s population now stands at 6.6 million with the city itself a shade under 2.3 million. At its current rate of growth, Houston could replace Chicago as the nation’s third-largest city by 2030.

    Why would anyone move to Houston? Start with the economic record.

    Since 2000, no major metro region in America except for archrival Dallas-Fort Worth has created more jobs and attracted more people. Houston’s job base has expanded 36.5%; in comparison, New York employment is up 16.6%, the Bay Area 11.8%, and Chicago a measly 5.1%. Since 2010 alone, a half million jobs have been added.

    Some like Paul Krugman have dismissed Texas’ economic expansion, much of it concentrated in its largest cities, as primarily involving low-wage jobs, but employment in the Houston area’s professional and service sector, the largest source of high-wage jobs, has grown 48% since 2000, a rate almost twice that of the San Francisco region, two and half times that of New York or Chicago, and more than four times Los Angeles. In terms of STEM jobs the Bay Area has done slightly better, but Houston, with 22% job growth in STEM fields since 2001, has easily surpassed New York (2%), Los Angeles (flat) and Chicago (-3%).

    More important still, Houston, like other Texas cities, has done well in creating middle-class jobs, those paying between 80% and 200% of the median wage. Since 2001 Houston has boosted its middle-class employment by 26% compared to a 6% expansion nationally, according to the forecasting firm EMSI. This easily surpasses the record for all the cities preferred by our media and financial hegemons, including Washington (11%) and San Francisco (6%), and it’s far ahead of Los Angeles (4%), New York (3%) and Chicago, which lost 3% of its middle-class employment.

    (Hat tip: Pension Tsunami.)

  • Texas conservative budget overview vs. the 2018-2019 proposed budget.
  • On the same subject: how to reduce the footprint of Texas government.
  • “Berkeley funds the Division of Equity and Inclusion with a cool $20 million annually and staffs it with 150 full-time functionaries: it takes that much money and personnel to drum into students’ heads how horribly Berkeley treats its “othered” students.”
  • New LA housing initiative to undo previous housing initiative. Frankly all of them sound like market-distorting initiatives guaranteed to backfire…
  • “California’s bullet train could cost taxpayers 50% more than estimated — as much as $3.6 billion more. And that’s just for the first 118 miles through the Central Valley, which was supposed to be the easiest part of the route between Los Angeles and San Francisco.”
  • “For the past five months, BART has been staffing its yet-to-open Warm Springs Station full time with five $73,609-a-year station agents and an $89,806-a-year train dispatch supervisor — even though no trains will be running there for at least another two months.” (Hat tip: Pension Tsunami.)
  • “After studying “tens of thousands of restaurants in the San Francisco area,” researchers Michael Luca of Harvard Business School and Dara Lee Luca of Mathematica Policy Research found that many lower rated restaurants have a unique way of dealing with minimum wage hikes: they simply go out of business.”
  • Meet Gordon, the robot barista. How’s that $15 an hour minimum wage working out for you, San Francisco?
  • “Nestle USA announced today that it is moving 300 technical, production and supply chain jobs to the Solon [Ohio] plant as part of the company’s plan to relocate its headquarters to Arlington, Virginia, from Glendale, California.”
  • Auto dealer AutoAlert is moving it’s headquarters from Irvine, California to Kansas City.
  • Peter Thiel to run for governor of California?
  • The Oakland Raiders may not be moving to Las Vegas after all, because billionaire Sheldon Adelson backed out of the stadium deal, accusing Raider owner Mark Davis of trying to screw him.
  • Now there’s talk the Raiders may rexamine moving to San Antonio.
  • Or even Dan Diego.
  • Lawsuits are flying over the Dallas Police and Fire pension fund debacle. (Hat tip: Pension Tsunami.)
  • Texas vs. California Update for April 18, 2016

    Monday, April 18th, 2016

    Time for another Texas vs. California roundup, with the top news being California’s hastening their economic demise with a suicidal minimum wage hike:

  • Jerry Brown admits the minimum wage hike doesn’t make economic sense, then signs it anyway. (Hat tip: Ed Driscoll at Instapundit.)
  • Who is really behind the minimum wage hike? The SEIU:

    California’s drive to hike the minimum wage has little to do with average workers and everything to do with the Golden State’s all-powerful government employee unions.

    Nationally, the Service Employees International Union (SEIU) is known for representing lower skilled workers. But, of the SEIU’s 2.1 million dues-paying members, half work for the government. In California, that translates to clout with much of the $50 million SEIU spent in the U.S. on political activities and lobbying spent in California. In fact, out of the 12 “yes” votes for the minimum wage bill in the Assembly Committee on Appropriations on March 30, the SEIU had contributed almost $100,000 out of the three-quarters of a million contributed by public employee unions—yielding a far higher return on investment than anything Wall Street could produce.

    Unions represent about 59 percent of all government workers in California. Many union contracts are tied to the minimum wage — boost the minimum wage and government union workers reap a huge windfall, courtesy of the overworked California taxpayer.

  • “The impacts of the increase in minimum wage on workers at the very bottom of the pay scales might be just the tip of the iceberg in terms of the ramifications of the minimum wage increase.” (Hat tip: Pension Tsunami.)
  • Indeed, that hike will push government employee wages up all up the ladder.
  • “California minimum wage hike hits L.A. apparel industry: ‘The exodus has begun.'” (Hat tip: Director Blue.)
  • “Texas’ job creation has helped keep the unemployment rate low at 4.3 percent, which has now been at or below the U.S. average rate for a remarkable 111 straight months.”
  • “Number of Californians Moving to Texas Hits Highest Level in Nearly a Decade”:

    “California’s taxes and regulations are crushing businesses, and there are more opportunities in Texas for people to start new companies, get good jobs, and create better lives for their families,” said Nathan Nascimento, the director of state initiatives at Freedom Partners. “When tax and regulatory climates are bad, people will move to better economic environments—this phenomenon isn’t a mystery, it’s how marketplaces work. Not only should other state governments take note of this, but so should the federal government.”

    According to Tom Gray of the Manhattan Institute, people may be leaving California for the employment opportunities, tax breaks, or less crowded living arrangements that other states offer.

    “States with low unemployment rates, such as Texas, are drawing people from California, whose rate is above the national average,” Gray wrote. “Taxation also appears to be a factor, especially as it contributes to the business climate and, in turn, jobs.”

    “Most of the destination states favored by Californians have lower taxes,” Gray wrote. “States that have gained the most at California’s expense are rated as having better business climates. The data suggest that may cost drivers—taxes, regulations, the high price of housing and commercial real estate, costly electricity, union power, and high labor costs—are prompting businesses to locate outside California, thus helping to drive the exodus.”

    (Hat tip: Pension Tsunami.)

  • More on the same theme. (Hat tip: Pension Tsunami.)
  • It’s not just pensions: “The state paid $458 million in 2001 (0.6 percent of the general fund) for state worker retiree health care and is expected to pay $2 billion (1.7 percent of the general fund) next fiscal year — up 80 percent in just the last decade.” (Hat tip: Pension Tsunami.)
  • Texas border control succeeds where the Obama Administration fails. (Hat tip: Ace of Spades HQ.)
  • California and New York still lead Texas in billionaires. But for how long?
  • “The housing bubble may have collapsed, but the public-employee pension fund managers are still with us. If anything they’re bigger than ever, still insatiably seeking high returns just over the horizon line of another economic bubble.” (Hat tip: Pension Tsunami.)
  • How to fix San Francisco’s dysfunctional housing market. “Failed public policy and political leadership has resulted in a massive imbalance between how much the city’s population has grown this century versus how much housing has been built. The last thirteen years worth of new housing units built is approximately equal to the population growth of the last two years.” Also: “The city is forcing people out. Only the rich can live here because of the policies created by so-called progressives and so-called housing advocates.” (Hat tip: Ed Driscoll at Instapundit.)
  • UC Berkley to cut 500 jobs over two years.
  • What does BART do faced with a $400 million projected deficit over the next decade? Dig deeper. (Hat tip: Pension Tsunami.)
  • Stanton, California, is the latest California municipality facing bankruptcy. “One of the main reasons the city can’t pay its bills without the sales tax is that it gives outlandish salaries and benefits to its government workers.” (Hat tip: Pension Tsunami.)
  • Yesterday was Tax Freedom Day in Texas.
  • Politically correct investing has already cost CalPERS $3 billion. (Hat tip: Pension Tsunami.)
  • “A federal jury on Wednesday convicted former Los Angeles County Undersheriff Paul Tanaka of deliberately impeding an FBI investigation, capping a jail abuse and obstruction scandal that reached to the top echelons of the Sheriff’s Department.” (Hat tip: Dwight.)
  • Top California Democratic assemblyman Roger Hernandez accused of domestic violence.
  • Calls for UC Davis Chancellor Linda P.B. Katehi to resign, she of the supergenius “pay $175,000 to scrub the Internet of negative postings about the pepper-spraying of students in 2011” plan.
  • California beachwear retailer Pacific Sunwear files for Chapter 11 bankruptcy.
  • California retailer Sport Chalet is also shutting down.
  • 75% of current Toyota employees are willing to move to Texas to work at Toyota’s new U.S. headquarters.
  • California isn’t the only place delusional politicians are pushing a “railroad to nowhere.” The Lone Star Rail District wants to keep getting and spending money despite the fact that Union Pacific said they couldn’t use their freight lines for a commuter train between Austin and San Antonio. The tiny little problem being that the Union Pacific line was the only one under consideration…
  • Texas vs. California Update for January 19, 2016

    Tuesday, January 19th, 2016

    Been a while since I did a Texas vs. California update, due to Reasons, so here’s one:

  • Texas ranks as the third freest state in the union, behind New Hampshire and South Dakota. California ranks second to last, just ahead of Massachusetts.
  • Texas added 16,300 Jobs in November.
  • How’s this for heavy-handed symbolism? California’s legislature plans to close one of its doors to the public, but continue to allow access to lobbyists. Because you’ve always got to see your real boss when he comes around…
  • California’s unfunded liabilities for CalPERS and CalSTARS spiked by $24 billion is fiscal 2014/2015. (Hat tip: Pension Tsunami.)
  • The much ballyhooed pension reform plan won’t make it on the ballot this year. Supporters are now aiming for 2018. Who knows how broke California will be by then… (Hat tip: Pension Tsunami.)
  • That’s probably because the game is rigged against pension reform. (Hat tip: Pension Tsunami.)
  • Jerry Brown unveils a budget in California. The budget increases are relatively modest, by California standards, but $2 billion into the rainy day fund isn’t even remotely going to cover California’s huge unfunded pension gap, and most of the structural bloat in the budget remains.
  • More on the same theme:

    While all the numbers are constantly in flux, in 2014-15, the California Public Employees’ Retirement System saw its status fall from 76.3 percent funded to 73.3 percent, likely due to the fact that investment returns fell far below expectations. The long-neglected California State Teachers’ Retirement System, as of June 30, 2014, was 69 percent funded. Combined, the systems report unfunded pension promises of more than $160 billion.

    The current budget shows steep and consistent increases in state funding to the two systems. Whereas CalPERS is set to receive $4.3 billion in state contributions in the 2015-16 fiscal year, which ends June 30, it could receive $4.8 billion the following year. CalSTRS is to receive $1.9 billion this year and about $2.47 billion next year.

    In comparison, CalPERS and CalSTRS received $3.1 billion and $1.26 billion, respectively, in 2011-2012.

    While it is perfectly reasonable for costs to rise over time, the rate that costs have risen for the two giant pension funds is mainly a consequence of California trying to play catch-up for years of inadequate forecasting and planning, aggravated by investment losses. But because the pension systems are run for public employees – CalPERS’ board is full of former public employee union leaders – the necessary changes and adjustments have been made far too late to avoid calamity.

    (Hat tip: Pension Tsunami.)

  • On the actual mechanics of pension reform, and the impossibility implementing them at the state level in California. (Hat tip: Pension Tsunami.)
  • Part 2, examining the possibility of reform at the local level. (Ditto.)
  • “California government, however, serves one purpose. It always reminds America what not to do.” Also:

    California has given us three new truths about government.

    One, the higher that taxes rise, the worse state services become.

    Two, the worse a natural disaster hits, the more the state contributes to its havoc.

    And three, the more existential the problem, the more the state ignores it.

    California somehow has managed to have the fourth-highest gas taxes in the nation, yet its roads are rated 44th among the 50 states. Nearly 70 percent of California roads are considered to be in poor or mediocre condition by the state senate. In response, the state legislature naturally wants to raise gas taxes, with one proposal calling for an increase of 12 cents per gallon, which would give California the highest gas taxes in the nation.

  • Federal judge rejects San Bernardino’s bankruptcy proposal, saying it doesn’t contain enough information.
  • Sacramento continues to ignore the needs of rural residents. (Hat tip: Ed Driscoll at Instapundit.)
  • Half of California’s driver’s licenses are issued to illegal aliens.
  • After years at the top of the relocation list, Texas was only the 9th biggest relocation destination in 2015.
  • On the other hand, Texas was still the top destination according to Allied Van Lines.
  • But businesses continue to flee California:

    In California, costs to run a business are higher than in other states and nations largely due to the states tax and regulatory policies and the business climate shows little chance of improving. It is understandable that from 2008 through 2015, at least 1,687 California disinvestment events occurred, a count that reflects only those that became public knowledge. Experts in site selection generally agree that at least five events fail to become public knowledge for every one that does. Thus it is reasonable to conclude that a minimum of 10,000 California disinvestment events have occurred during that period….For about 40 years California has been viewed as a state in which it is difficult to do business. Gov. Jerry Brown’s Administration’s less than candid approach regarding the business climate has misled the Legislature, the news media and the public about the flight of capital, facilities and jobs to other states and nations.

    The study also shows that Texas had the most new facilities opening up in the nation in 2014, with 689. California, despite being the most populous state, tied for 12th with 170.

  • 85% of Marin County’s special district workers collected over $100,000.” Bonus: Their pensions are underfunded too. (Hat tip: Pension Tsunami.)
  • Troubled California Wine Retailer Files for Bankruptcy. Premier Cru owes customers almost $70 million for wines it never delivered.”
  • This county-by-county breakdown of recession recovery is full of (very slow loading) data, and I haven’t come close to digesting it yet.
  • Texas vs. California Update for October 1, 2015:

    Thursday, October 1st, 2015

    Ah, that October chill…is not evident yet here in Austin. It’s supposed to hit 94° today.

    Time for another Texas vs. California roundup:

  • The joys of working in Los Angeles: a $30,000 tax bill on $500 worth of freelance income.
  • California nears passage of another trial lawyer full employment act.
  • Texas had five of the ten fastest growing metropolitan areas in 2014. Austin isn’t on this list, but Midland and San Angelo are numbers one and two. (San Jose, California’s lone entry, checks in at eight.)
  • 72% of Californians polled thinks the state has a pension crisis. Too bad this thinking doesn’t seem to influence their voting patterns yet… (Hat tip: Pension Tsunami.)
  • And yet a new bill would exempt some new hires from paying their fair share of pension costs. (Hat tip: Pension Tsunami.)
  • New pension accounting rules are about to show that a lot more California municipalities are insolvent.
  • “Instead of building freeways, expanding ports, restoring bridges and aqueducts, and constructing dams, desalination plants, and power stations, California’s taxpayers are pouring tens of billions each year into public sector pension funds.” (Hat tip: Pension Tsunami.)
  • Stockton’s bankruptcy didn’t solve it’s pension crisis.
  • Texas had a net gain of 103,465 people in 2014, the largest number of which came from California.
  • San Francisco wants to keep housing affordable…by restricting supply. Looks like somebody failed Economics 101…
  • Pension reform initiative to be refiled?
  • Unions are trying to undo San Diego’s voter-approved pension reforms. Because of course they are.
  • Texas is like Australia with the handbrake off. There is no individual income tax and no corporate income tax, which explains the state’s rapid economic and population growth. A recent downturn has sparked some concern, however. Apparently Texas will only create another 150,000 jobs during 2015 – about the same number as Australia, from a population only a few million larger. In a good year, that number of jobs is easily generated by a single Texan city.” Also: IowaHawk’s illegal human organ trafficking!
  • Texas ranks 13th in budget transparency. California? Dead last.
  • Even some California Democrats balked at increasing the state’s already high gas prices.
  • As part of the bankruptcy of northwest supermarket chain Haggen (which bought a bunch of Albertson’s stores just six months ago), they’ll be closing all their California stores. And if you guessed that Haggen is unionized, you would be correct.
  • Jerry Brown revives the state’s redevelopment agency…and its potential for eminent domain abuse.
  • Reminder: Texas is enormous.
  • A scourge spreads out upon California. Crack gangs? Illegal aliens? Try “short term rentals.”
  • Historical note: 105 years ago today, three union guys bombed the Los Angeles Times, killing 21 people.
  • Texas vs. California Roundup for April 30, 2015

    Thursday, April 30th, 2015

    Time for another Texas vs. California roundup, albeit a somewhat smallish one:

  • UC-Berkley misused nearly $2 million in National Science Foundation funds on staff salaries, travel expenses, and booze.
  • How California teacher’s unions indoctrinate children with left-wing propaganda.
  • Thanks to overly generous pension rules, Vallejo may be headed for a second bankruptcy. (Hat tip: Pension Tsunami.)
  • Eureka, California will be laying off police to pay for pensions. (Hat tip: Pension Tsunami.)
  • Farmer Brothers coffee roasters is moving from California to Denton. (Previously.)
  • Jerry Brown has ordered a radical cut in California’s greenhouse gases. Evidently he wants all of California’s manufacturing to move out of state…
  • Though Texas does a vastly better job than California managing statewide finances, local debt is close to California’s:

    Among the top ten most populous states in the nation, local debt in the Lone Star State was the second highest overall, at $219.7 billion. Only California’s local governments had amassed more, at $269.2 billion.

    On a per capita basis, local debt in Texas ranked as the second highest ($8,431 owed per person), with only New York in tougher shape ($10,204 owed per person). The average local debt burden among all mega-states was $5,956 owed per person.

  • So California may use drought bond money to pay for water not for people, but for the Delta Smelt?
  • West Coast truckers strike over alleged millions in wage theft. You may have gathered that I’m not exactly a pro-union guy, but from what a relative has told me about the trucking industry, I wouldn’t be at all surprised if the strikers were fully justified in this instance…
  • Texas vs. California Update for March 12, 2015

    Thursday, March 12th, 2015

    Time for another Texas vs. California update:

  • In a worst-case scenario, CalSTARS and CalPERS might need an additional $50 billion a year between them to stay solvent.
  • If you haven’t taken a look at my piece on Stockton’s latest boondoggle, you probably should.
  • A new ballot initiative to cut California public employee pensions is due out in May, lead by former San Jose Mayor Chuck Reed, a Democrat.
  • Even Jerry Brown’s timid pension reforms are evidently too much for the Obama Administration, which is holding up funds over them.
  • A rare bit of good municipal news out of California, as Rancho Mirage declares that they’re debt free. (Hat tip: Pension Tunami.)
  • Prime Health Care pulls out of Daughters of Charity hospital acquisition. California Attorney general Kamala Harris may have just insured those hospitals will close instead.
  • Texas population to explode. (Hat tip: Push Junction.)
  • Land acquisition for California’s high speed rail boondoggle isn’t going swimmingly.
  • Malibu Golf Club files for Chapter 11. “An attorney for Malibu Associates said the company closed the golf club after defaulting on a $47-million loan from U.S. Bank, which has begun foreclosure proceedings.”
  • “In February, the Berkeley Health Center, a clinic that provided medical services to low-income patients, closed down in the wake of serious financial troubles, including allegations that it had mismanaged public funds.” They also left behind sensitive patient records…
  • Calfornia hikes water rates. Millions for the delta smelt, not one blue drop for you to drink…
  • Monolith Semiconductor relocates from Ithaca, New York to Round Rock.
  • Texas vs. California Update for September 17, 2014

    Wednesday, September 17th, 2014

    Time for another Texas vs. California roundup:

  • The Texas economy continues to hum along:

    During the second quarter, Texas employers added 148,200 net nonfarm jobs—an average of 49,400 per month. This amounts to an 18 percent share of all jobs created nationwide over this period in a state with only 8 percent of the country’s population and about 10 percent of total economic output. Over the last year, the addition of 382,200 net jobs in Texas was more new jobs than any other state. These employment gains increased the annual job growth rate to 3.4 percent, which is higher than those of the national average and other highly populated states.

  • The city of Los Angeles is at an impasse over police raises: the police union (naturally) wants raises, while the city says they can’t afford them. So what happens next? The issue goes before the Employee Relations Board, which just happens to be packed with union-approved appointees. In one-party Democratic cities and states, it’s always government together with unions against taxpayers. (Hat tip: Pension Tsunami.)
  • “The ugly reality is that so long as the boards of CalPERS and CalSTRS are controlled by public employee union loyalists, pension reforms enacted by state lawmakers and signed by governors will never live up to their billing.”
  • Jerry Brown lies about pension spiking.
  • Why San Antonio’s public-private partnerships are better at dealing with drought than Los Angeles.
  • A FAQ on Costa Mesa’s pension situation. Including answers to such questions as “How could the $228 million in unfunded pension liabilities affect the city budget?”
  • Watsonville, California passes a sales tax hike solely to pay for additional union pension payments.
  • A judge rules that bankrupt San Bernardino can cut firefighter pension benefits in order to exit bankruptcy.
  • A union-sponsored bill tries to increase liabilities for companies that hire contractors.
  • California is evidently cooking up a whole new batch of unconstitutional gun laws.
  • A look at phony baloney jobs numbers for California’s high speed rail boondoggle.
  • Firefly Space Systems is relocating from California to Burnet County, Texas. “King said Firefly was attracted to Texas partly because of its business and regulatory climate.” It doesn’t take a rocket scientist to figure out California offers a lousy climate for business. Or to put it another way: My days of underestimating California’s ability to improve its business climate are certainly coming to a middle…
  • Drone-maker Ashima is relocating to Reno, Nevada from California.
  • If you hadn’t heard, Tesla is building its battery factory in Nevada, not California.
  • An actual good law out of California: A law that prevents companies from suing customers for negative reviews.
  • North Carolina offered twice as much incentive money to Toyota but still lost out to Texas for relocating their HQ.
  • Your dedicated BART employee in action:

  • Texas vs. California Update for August 25, 2014

    Monday, August 25th, 2014

    Another look at how Texas stacks up to the no-longer-so-Golden state:

  • Problem: Those lousy taxpayers get pension reform passed. Solution: CalPERS uses “99 categories of ‘special pay'” to go on a pension spiking orgy.
  • What are some of those 99 categories? “Clerks who type well. Cops who shoot straight. Librarians who are “assigned to provide direction or resources to library patrons.” I’m too scared to check if “Teachers who don’t rape their students” is an actual category or not…
  • Governor Jerry Brown is sending mixed signals on the pension spiking issue.
  • Who actually owns the CalPERS gap between actual funding and what they’ll need to pay out? “CalPERS can be risky (and it has been) with no consequences. The taxpayers have all the responsibility, but none of the control.”
  • So how much payroll and pension did Stockton trim in their bankruptcy? Zero.
  • There is no California comeback. “Personal income-tax revenues fell by 11 percent in the first quarter of this year and more than 6 percent through June.”
  • California cities are among the slowest to recover from the recession.
  • The only way California can get pensions under control is through a constitutional amendment.
  • Los Angeles Department of Water and Power is asking for more money. They’re also asking Angelinos to overlook their high salaries and lack of accountability.

    City leaders are battling with DWP’s union, the International Brotherhood of Electrical Workers Local 18, to release financial records of a nonprofit trust, run jointly by labor- and management-appointed trustees, that has run through $40 million in ratepayer money. Brian D’Arcy, IBEW Local 18’s business manager, has refused to turn over the trust’s financial records, and DWP executives have said they don’t know how the money was spent.

  • California voters get to weigh in on a 7.5 billion water bill in November, which seems to have considerably less pork than a previously delayed $11 billion bill.
  • So how does bankrupt San Bernardino plan to climb into the black? Cutting back on outrageous pensions? Ha, you must be high! “Help us, weed, you’re our only hope!”
  • I know this is a shock, but California’s High Speed Rail Authority is behind schedule on buying land for it’s doomed boondoggle.
  • Los Angeles City Councilman Paul Koretz opposes ride share programs like Uber and Lyft. Strangely enough, he’s also received $11,000 in campaign contributions from the taxi industry. Quid pro, meet quo.
  • YTexas helps companies relocating to Texas connect with local businesses.
  • Texas vs. California Update for May 14, 2014

    Wednesday, May 14th, 2014

    Time for another Texas vs. California roundup:

  • Chief Executive ranks the states for business friendliness. Once again, Texas is ranked the best state for doing business in. And once again, California is ranked the worst.

    “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 Governor Jerry Brown unveils a budget that takes baby steps toward actual pension and budget reform. Naturally Brown’s fellow Democrats in the state legislature are fighting him every step of the way.
  • Texas vs. California? Try Houston vs. California:

  • California state rep thinks the minimum wage in the state should be $26 an hour. I agree, especially if they call it the “Let’s Drive All Remaining Business to Texas Act”…
  • When he was a San Diego City Councilman, California Democrat Congressman Scott Peters not only underfunded the city’s pension plan while hiking benefits, he indemnified the pension board for doing so.
  • More on Peters, via an attack ad:

  • “A new analysis of California’s independent public retirement systems suggests they are more woefully underfunded than they appear, and that Los Angeles County is among the worst of all.”
  • Bankrupt Stockton’s last remaining big creditor refuses to take 1¢ on the dollar for debts the city owes. (Remember: State pension fund CalPERS didn’t take any haircut at all.)
  • In bankrupt San Bernardino, talks between the city and CalPERS are making the federal judge overseeing the case impatient.
  • Chuck DeVore on why Texans trust their state government more than most:

    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.

  • But it isn’t all sunshine in Texas Local debt continues to rise, though Eanes School District voters finally decide that they’ve had enough and defeat a bond proposal.