Posts Tagged ‘Kern County (CA)’

Texas vs. California Update for July 11, 2017

Tuesday, July 11th, 2017

Long time no Texas vs. California update. I’ve been busy.

  • California’s descent into socialism:

    In the end, we are witnessing the continuation of an evolving class war, pitting the oligarchs and their political allies against the state’s diminished middle and working classes. It might work politically, as the California electorate itself becomes more dependent on government largesse, but it’s hard to see how the state makes ends meet in the longer run without confiscating the billions now held by the ruling tech oligarchs.

  • Lots of comparisons between California and the rest of the nation. Like: “California has a nasty anti-small business $800 minimum corporate income tax, even if no profit is earned, and even for many nonprofits.” And “CA public school teachers the 3rd highest paid in the nation. CA students rank 48th in math achievement, 49th in reading.”
  • All across California, higher pensions equal fewer government services:

    Across California, many local governments have raised taxes while cutting services. Local officials desperate for union support have made irresponsible deals with public employee unions, creating staggering employee costs. Taxpayer money meant to provide essential services to the least well-off instead goes directly to higher salaries and benefits.

    In Santa Barbara County, the 2017-2018 budget calls for laying off nearly 70 employees while dipping into reserve funds. The biggest cuts are to the Department of Social Services, which works to aid low-income families and senior citizens. Meanwhile, $546 million of needed infrastructure improvements go unfunded as Santa Barbara County struggles to pay off $700 million in unfunded pension liabilities. County officials estimate that increasing pension costs may cause hundreds of future layoffs.

    Unfortunately, Santa Barbara County is far from alone. Tuolumne County is issuing layoffs in the face of rising labor and pension costs from previous agreements. In Kern County, a budget shortfall spurred by increased pension costs has led to public safety layoffs, teacher shortages, budget cuts, and the elimination of the Parks and Recreation department, even as Kern County’s unfunded pension liability surpasses $2 billion. In the Santa Ana Unified School District, nearly 300 teachers have been laid off after years of receiving pay raises that made them unaffordable, including a 10% raise in 2015.

    In Riverside County, non-union county employees took the blow for the county’s irresponsible pension deals, as all but one of the 32 employees the county laid off this June were non-union members. This came after contract negotiations granted union employees hundreds of millions of dollars in raises. The Riverside County DA said these raises caused public safety cuts. In addition, Riverside County imposed an extra 1% sales tax to pay for these benefits. Across California, citizens suffer as local governments give away their money while cutting their services.

    (Hat tip: Pension Tsunami.)

  • That Awkward Moment When Saudi Arabia Is More Pro-American Than California:

    Don’t think I’m going soft on the Saudis. I’ve just not seen a recent image from California where there were this many American flags and none of them were on fire.

    But let’s not forget that we are dealing with a corrupt, degenerate, autocratic state where there is no free speech, where universities are run by fanatics who indoctrinate students with radical ideology; where street thugs aligned with the ruling party freely commit acts of violence against opposing views, and whose ruling elite routinely violates the basic rights of Christians and other minorities. Also, Saudi Arabia is pretty bad too.

  • A piece on California banning public employees from traveling to Texas over various social justice warrior causes. I haven’t met anyone in Texas who doesn’t count that as a win/win situation.
  • The whole thing is an example of California’s Democrat-controlled government favoring virtue signaling over actual governance.

    Whether you agree or disagree with [religious liberty] laws, they don’t seem like any of our state’s business. California passes its share of laws that might offend any number of Nebraskans or North Carolinians, but we don’t see travel bans on official visits to Los Angeles or San Francisco. Federalism is a wonderful thing. Each state gets to pass laws that reflect the values of its voters.

    (Hat tip: Pension Tsunami.)

  • There was a big, biased piece in New Yorker about Texas politics. Instead of linking to it, I’m going to link to Cahnman’s takedown of it.
  • California pension funds are going broke because math is hard:

    Unlike water deficits, pension deficits compound. As a result, years of healthy investment earnings cannot close pension deficits. Ironically, Walker herself supplies the proof with these two sentences from her op-ed:

    • “[CalPERS’s] investment returns over the last 20 years have averaged 6.7 percent.”
    • “[CalPERS’s] funded ratio [today] is at about 63 percent.”

    Yet CalPERS’s funded ratio 20 years ago was 111 percent! Ie, despite averaging a wonderful 6.7 percent annual return for 20 years, CalPERS’s funded ratio fell 48 percentage points. That’s because pension liabilities compound at high rates.

    (Hat tip: Pension Tsunami.)

  • “Illinois at the brink: Parallel should give Californians pause….As in Illinois, the Democrats who control California politics use their power first and foremost to protect the interests of public employee unions — not the poor and powerless. This has created an entrenched pension-protection complex.”
  • Helping Californians move to Texas isn’t just an idea, it’s a business model:

    Paul Chabot was a hard working candidate for Congress in the Redlands area. He lost twice and decided that California was no longer a decent place to raise his family—so he moved to Texas. Now he is organizing conservatives and family people to move to Texas. There is an effort to re-populate that State of New Hampshire—indeed former San Diego Assemblyman Howard Kaloogian moved to the Granite State, along with thousands of other Americas.

    “So Chabot has found a new pursuit. Last week, he launched the website Conservative Move. It’s a business aimed at helping people leave blue states like California and move places where they might be a little more comfortable — like North Texas, where Chabot and his family moved in January.

    “The purpose of this organization is to help other families create an opportunity where we didn’t have much guidance,” Chabot says.

    After the election, Chabot searched for a community that appeared to uphold the values that he and his family held dear, like safe streets and good schools. Eventually, they decided on McKinney, Texas, a city about 40 miles north of Dallas with a population around 150,000.”

    (Hat tip: Pension Tsunami.)

  • Missed this for the last Texas vs. California update:

    On Tuesday, May 6th, Nick Melvoin and Kelly Gonez, who are more concerned with the needs of parents, kids and taxpayers than stoking the bureaucracy and complying with teacher union diktats, were elected to the Los Angeles Unified School District board. Reformers are now the majority of the seven member governing body in America’s second largest city.

    Melvoin, especially, was vocal in his campaign that the school district needs a major shake-up, including a call for more charter schools. He also stressed the need for fiscal reform, which includes a reworking of the district’s out-of-control pension and healthcare obligations. In December, LAUSD Chief Financial Officer Megan Reilly told the school board that the district may not be able to meet its financial obligations in the future because it faces a cumulative deficit of $1.46 billion through the 2018-2019 school year. While that dollar amount has been disputed in some quarters, there’s no doubt that the district is facing a budgetary crisis. It’s also no secret that an abysmal graduation rate (pumped up with the help of fake “credit recovery” classes) and shrinking enrollment have taken a serious toll on LAUSD. Also, in 2015, only one in five 4th-grade students in Los Angeles performed at or above “proficient” in math and reading on the National Assessment of Educational Progress.

    Needless to say, anything that bodes well for parents and taxpayers will rankle the teachers unions, and the LA school board race was certainly no exception. Not only did the young Turks (Melvoin is 31 and Gonez 28.), defeat the unions’ candidates, they raised more money – in Melvoin’s case far more – than their opponents. This was a rare occurrence, because historically teachers unions have greatly outspent their opponents to get their candidates elected, especially in high-profile elections. But this time the unions could not compete with the likes of philanthropist Eli Broad who donated $450,000 to the campaign and former LA Mayor Richard Riordan who contributed over $2 million. Additionally, Netflix CEO Reed Hastings donated nearly $7 million since last September to CCSA Advocates (the political wing of the California Charter School Association), which spent almost $3 million on the board election.

    On the union side the United Teachers Los Angeles was the big spender, pitching in about $4.13 million, according to city filings. But much of this money came from the UTLA’s national partners. The American Federation of Teachers gave UTLA $1.2 million and National Education Association, $700,000.

  • More on the same subject. “Melvoin, especially, was vocal in his campaign that the school district needed a major shakeup, calling for more charter schools. He also stressed the need for fiscal reform, including a reworking of the district’s out-of-control pension and health-care obligations.”
  • California teacher who was laid off shortly after winning her school’s Teacher of the Year award takes her union to court:

    Bhavini Bhakta never intended to become an activist, but after being laid off six times in the first eight years of her career as an elementary school teacher in the Pasadena suburbs, she decided to get involved in the education reform movement. She focused first on challenging seniority-based layoffs, which in turn led her into conflict with the California Teachers Association. Now she is a plaintiff in Bain v. CTA, a case which challenges the dues structure of unions as a violation of the First Amendment. The suit seeks to restore voting rights on union matters to agency fee payers, who pay full dues for representational activities but opt out of paying for lobbying and political activities.

    “The state union forcibly takes our money and uses it to misrepresent us. They’re not serving the teachers on the ground,” she said in an interview with the Washington Free Beacon. “They’re using my money for their own purposes.”

  • Tenure reform is the only big education reform under debate in California this year.
  • Back in May: ICE Nabs 188 In LA During 5-Day Operation. (Hat tip: Director Blue.)
  • “Soros-Linked Groups Behind California Ban on Detaining Illegal Immigrants.” (Hat tip: Director Blue.)
  • California uses one credit card to pay off another. (Hat tip: Pension Tsunami.)
  • “Amid Funding Shortfall, Santa Ana Raises Median Police Compensation Above $213,000.” (Hat tip: Pension Tsunami.)
  • California Democrats receive death threats for daring to point out that single-payer socialized medicine bill is pie-in-the-sky malarkey without a funding mechanism.
  • Let California try single payer…and deal with the consequences.
  • So how’s that minimum wage hike working out? At least 60 restaurants around the Bay Area had closed since September.
  • San Francisco has a staggering $5.8 billion pension liability, and a series of retroactive benefit increases approved by voters over a dozen years is largely to blame.” (Hat tip: Pension Tsunami.)
  • California farmer facing a $2.8 million fine for plowing his own field. (Hat tip: Ed Driscoll at Instapundit.)
  • California voters pass legislative transparency measure. California’s Democratic legislators ignore it. (Hat tip: Ace of Spades HQ.)
  • Committing felonies on the job is no reason to give up your cushy pension:

    Mark Peterson, the Contra Costa district attorney forced to resign as part of a felony perjury conviction, cut a sweet plea deal with state prosecutors allowing him to keep most of his pension.

    The deal will probably let him walk away with starting annual retirement payments of about $128,000 in addition to Social Security benefits. That’s because he pleaded no contest to only the most recent of 13 felony counts stemming from his illegal tapping of campaign funds for personal use.

    (Hat tip: Pension Tsunami.)

  • “California Democrats Want Data on Lobbyists’ Race, Sexual Orientation.” Social justice Warriors wanting to milk the graft cash cow? Get the popcorn!
  • San Francisco to pay illegal alien $190,000 for violating their own sanctuary city policy. (Hat tip: Gabriel Malor’s Twitter feed.)
  • Just how big is Houston? Take a look at these overlay maps.
  • Texas Governor Greg Abbott celebrates the opening of Toyota’s American headquarters in Plano:

    Today we celebrate another milestone marking the incredible momentum of Texas’ continuing economic expansion. Toyota Motor North America joins Hulu, Jacobs Engineering, Mitsubishi Heavy Industries, Kubota, Jamba Juice, Sabre and many other innovative industry leaders who have decided to go big in Texas.

    Our greatest natural resource in the Lone Star State is the hardworking people of Texas. And that work ethic draws global leaders like Toyota to Texas every day. With the second-largest workforce in the nation at more than 13 million strong, Texas continues to be a national leader in job creation. In fact, more Texans have jobs today than ever before, even as more people are moving here every year from states that overtax and overregulate.

  • Why Texas is so attractive for business relocation:

    During his latter years in office as Texas governor, Rick Perry made it a priority to lure businesses to the state, particularly from California. Two-and-a-half years into the term of Gov. Greg Abbott, the successor to Perry, the pace of corporate relocations to the Lone Star State shows no signs of slowing down.

    Much has been written about the state’s business-friendly environment. Most businesses in Texas that aren’t sole proprietorships or partnerships pay a 1 percent or lower “franchise tax,” in lieu of a traditional corporate income tax. In addition, the state’s governing bodies tend to favor minimal regulations and sponsor research and development initiatives.

    The state’s economy is healthy, evident by strong employment growth. The Texas Workforce Commission reports a net gain of 210,000 jobs across the state in 2016, and employers are projected to add another 225,000 jobs in 2017.

    Equally important to strong job growth is the quality of life that employees are promised upon relocating.

    According to Robert Allen, president of the Texas Economic Development Corp., the lifestyle element is perhaps the most common incentive for moving to Texas among executives and employees alike.

    “When we ask executives why they’re moving to Texas, what we hear is that providing a high quality of life for their workforces is number one on their lists,” says Allen.

    “Employees back that claim up. They’re able to buy larger houses, keep more of their incomes, send their kids to good schools and live in safe neighborhoods. This makes it easier for employees to take a leap of faith,” he adds.

    Texas has no personal income tax. Its education system currently ranks 21st based on a state-by-state study by wallethub.com, a credit scoring and reporting site. The study considers factors such as average SAT/ACT score, dropout rates, student-teacher ratios, graduation rate for low-income students and remote-learning opportunities within online public schools. The Huffington Post also notes that Texas has the fourth-highest graduation rate in the country, despite its ever-growing population and high percentage of non-native-English-speaking students.

    And according to a recent study from the NYU School of Law, while violent crime rates are rising in urban areas throughout the country, they’re holding steady in Texas. The state’s murder rate falls in the middle of the pack despite it being a national leader in population growth.

  • And Californians are still flocking to Texas.
  • Los Angeles, San Francisco homeless woes worsen despite funding boosts.”
  • “Federal judge blocks California ban on high-capacity magazines.” Note that’s not just a sale ban: “The law would have barred people from possessing magazines containing more than 10 bullets.” (Hat tip: Director Blue.)
  • “A former Diablo Valley College professor was arrested Wednesday in connection with the use of a bike lock in the beating of three people during a rally for President Donald Trump last month, police said Thursday.” I guess that’s the “high road” liberals keep talking about… (Hat tip: Instapundit.)
  • Bonus: He was tracked down by 4Chan, who are supposedly working on a face database of Antifa members.
  • Student Agreed to Orgy, But Later Called It Sexual Assault, Lawsuit Claims. Judge says that University of California, Santa Barbara, may have denied accused male student due process.”
  • “San Francisco supervisor Norman Yee recently proposed legislation that would prohibit autonomous delivery robots – which includes those with a remote human operator – on public streets in the city.” (Hat tip: Ed Driscoll at Instapundit.)
  • Texas vs. California Update for January 12, 2017

    Thursday, January 12th, 2017

    It’s been a long time since I compiled one of these, so this is going to be monstrously large. Also, just as I was finishing this up, the San Diego Chargers announced they were moving to Los Angeles. Hell, LA has proven in the past it’s incapable of adequately supporting one NFL franchise, much less two…

  • When you look at the full recession records, not just the last few years, Texas is still kicking California’s ass. “Over that time frame, Texas has grown more than THREE TIMES FASTER than California. Actually 3.4 times faster (Texas grew at a 4.1% annual rate vs. 1.2% for California).” (Hat tip: Pension Tsunami.)
  • “A just released study calculates the total state and local government debt in California as of June 30, 2015, at over $1.3 trillion.” (Hat tip: Pension Tsunami.)
  • California faces its first budget deficit since 2012. Or at least it’s first official deficit since then. (Hat tip: Pension Tsunami.)
  • A second judge, this one on the California First District Court of Appeal, rules that public pensions may be modified.
  • The California Democratic Party has gone hard left, and it’s taking the rest of the state with it:

    Increasingly, inside the party, it’s been the furthest Left candidates that win. In the Democrat-only Sanchez vs. Harris race for the U.S. Senate, the more progressive candidate triumphed easily, with a more moderate Latina from Southern California decimated by the better funded lock-step, glamorous tool of the San Francisco gentry Left.

    Gradually, the key swing group — the “business Democrats” — are being decimated, hounded by ultra-green San Francisco billionaire Tom Steyer and his minions. No restraint is being imposed on Gov. Brown’s increasingly obsessive climate change agenda, or on the public employee unions, whose pensions could sink the state’s finances, particularly in a downturn.

    The interior parts of California already rank near the bottom, along with Los Angeles, in terms of standard of living — by incomes, as opposed to costs — in the nation. Compared to the Bay Area, which now rules the state, the more blue-collar, Latino and African American interior, as well as much of Los Angeles, account for six of the 15 worst areas in terms of living standard out of 106 metropolitan areas, according to a recent report by Center for Opportunity Urbanism demographer Wendell Cox.

    Given the political trends here, it’s hard to see how things could get much better. The fact that most new jobs in Southern California are in lower-paying occupations is hardly promising. In contrast, generally better-paying jobs in manufacturing, home-building and warehousing face ever-growing regulatory strangulation.

    Sadly, the ascendant Latino political leadership seems determined to accelerate this process. In both Riverside and San Bernardino, pro-business candidates, including San Bernardino Democrat Cheryl Brown, lost to green-backed Latino progressives.

    For whatever reason, Latino voters and their elected officials fail to recognize that the increasingly harsh climate change agenda represents a mortal threat to their own prospects for upward mobility. Before this week’s election, California policy makers could look forward to Washington imposing such policies on the rest of the country; now our competitor regions — including Utah, Arizona, Nevada and Texas — can double down on growth. Expect to see more migration of ambitious Californians, particularly Latinos, to these areas.

    California is on the road to a bifurcated, almost feudal, society, divided by geography, race and class. As is clear from the most recent Internal Revenue Service data, it’s not just the poor and ill-educated, as Brown apologists suggest, but, rather, primarily young families and the middle-aged, who are leaving. What will be left is a state dominated by a growing, but relatively small, upper class, many of them boomers; young singles and a massive, growing, increasingly marginalized “precariat” of low wage, often occasional, workers.

  • Sanctuary cities might drive California into bankruptcy:

    California is about to face the music as Donald Trump becomes 45th President of the United States. Their Sanctuary Cities violate federal law and after Jeff Sessions is confirmed as Attorney General (and he will be), they are going to either have to knock that off or have funding to their law enforcement and their government stripped away. Sessions can’t wait and I have to say, I will enjoy watching this showdown. Los Angeles Mayor Eric Garcetti said that Trump pulling 37% of federal funding for their governments would cause chaos and upheaval. Yes, it will… it will also cause California to go absolutely toes up bankrupt.

    It’s simple. They can either follow the rule of law, or the free flow of money from DC gets cut off. In 2015, that amounted to about $93.6 billion. That’s a lot of money to turn away because you insist on not following the law. Let’s see how long that lasts. I love the thought of this. It’s about time Sanctuary Cities were stopped and this is an excellent way to do it. New York, Chicago and DC will all face the same choice by the way. Imagine the meltdown. Good times.

  • “California paid LESS to the feds per capita than Texas. California got MORE back per capita from the feds than Texas.” Freeloaders love the Blue State model… (Hat tip: Pension Tsunami.)
  • Another way of looking at California’s economy:

    California has 39 million people — 43% larger than the 2nd largest state (Texas). Such GDP comparisons don’t tell us much in terms of the PROSPERITY of a nation. Or a state.

    The proper comparison is PER CAPITA GDP. Using that more meaningful figure, CA is the 10th most prosperous state.

    But an even MORE accurate comparison is to take the per capital GDP and adjust it for COL. Because of California’s high taxes, crazy utility laws, stifling regulations (paid by consumers) and sky-high housing costs, CA in 2014 ranked WAY down in 37th place. Only 13 states were worse.

    (Hat tip: Pension Tsunami.)

  • Same as it ever was:

    Governor Jerry Brown announced today that the budget was $1.4 billion in deficit. At the end of last year, the state announced that it was giving state employees a raise which would cost taxpayers over $2 billion over the next four years. Do you think there is a connection?

    A story ran locally in Southern California saying that over 105 employees in Santa Monica, a medium sized city, earn over $300,000 a year. The Governor of the state of California earns $174,000 per year. If you do the research, you will find that there are over 200 state employees that earn more than that

    When I was deciding what I wanted to do in my younger years, my mother told me I should go to work for the government, good benefits she said. I knew I would be bored and would die young if I became a government drone. My little sister listened to her. Today, my little sister is retired on a great government pension, I still fight to pay my taxes. Given the pay that even the lowest government official receives, my mother was right.

    Our government pension system is over $500 billion upside down. Retired state employee health benefits add an additional $300 billion or more to that deficit. The system is out of control. Pay and benefits to government employees at state and local levels is incomprehensible, and the government leaders still come to you and I and ask us to foot the bill for their indulgences.

    What is even more evil about the system is that government unions, led by thugs who force people to pay union dues for the privilege of having a government job, take the money from the government employees and put it into the political system to pay for the campaigns of the Governor, statewide elected officials, legislators and city councils with whom these unions then negotiate for the out-of-control pay and benefits. If anyone tries to limit them, as I once tried by tying everybody’s salaries to the Governor’s salary, they are marked for political defeat. And the system perpetuates itself, taxes to employees to unions to politicians, as it did in the Soviet Union, until the whole system collapses.

    (Hat tip: Pension Tsunami.)

  • California has stopped growing:

    Driven by rising out-migration and falling birth rates, California’s population growth has stalled, leading analysts to consider a possible forecast of a so-called “no-growth” period in the future.

    Although Americans nationwide have been flooding south and west for years, the Golden State has become an exception. Nearly 62 percent of Americans lived in the two regions, Justin Fox observed from Census figures. “That’s up from 60.4 percent in the 2010 census, 58.1 percent in 2000, 55.6 percent in 1990 — and 44 percent in 1950. The big anomaly is California, which is very much in the West, yet has lost an estimated 383,344 residents to other states since 2010.”

    “The state’s birth rate declined to 12.42 births per 1,000 population in 2016 — the lowest in California history,” the San Jose Mercury News noted, citing a state Department of Finance report. “In 2010, the last time figures were compiled, the birth rate was 13.69 per 1,000 population.”

  • California Democrats legalize child prostitution.” (Hat tip: Ed Driscoll at Instapundit.)
  • Some are objecting to the term “legalization”.
  • California Democrats vote to line Eric Holder’s pockets:

    Last week California’s progressive lawmakers announced that they’ve put former Attorney General Eric Holder, now a Covington & Burling partner, on retainer as the state’s outside counsel. “This is potentially the legal fight of a generation, and with Eric Holder we’ve added a world-class lawyer,’’ said Senate majority leader Kevin de León.

    This is odd. Typically states hire outside counsel for help with specific cases, but the legislature is paying Mr. Holder $25,000 a month for three months under the initial contract, apparently for 40 hours a month and the privilege of his attention if something comes up.

  • At least one California assemblyman thinks that the Holder deal is illegal. “California courts have interpreted the civil service mandate of article VII of forbidding private contracting for services that are of a kind that persons selected through civil service could perform ‘adequately and competently.'”
  • In California, robots are replacing people in warehouse work. The minimum wage is mentioned, but only in passing.
  • California is the state third most likely to enter a death spiral in a recession. (Hat tip: Director Blue.)
  • “San Diego County Board of Supervisors voted Tuesday to increase their own salaries by more than $19,000 a year, despite public comment from dozens of opponents.”
  • “California state firefighters will receive substantial raises of up to 13.8 percent this year, according to newly released details from a proposed contract that their union negotiated just before Christmas.” Just the thing a state with a budget deficit needs…
  • “The evidence is clear that standards of living are substantially higher in Texas than in California, which has a model of excessive government.” More: “During the last decade, economic growth in the real private sector has increased by 29 percent in Texas compared with only 14 percent in California. Job creation increased by 1.2 million in California compared with 1.7 million in Texas, which has a labor force two-thirds of that in California. Remarkably, Texas’ job creation was roughly one-third of total civilian employment increases nationwide.”
  • Texas ranked third nationally in economic freedom for the sixth consecutive year. California ranked 49th, just ahead of New York.
  • California Democrats vow to go all-out to keep illegal aliens from being deported. (Hat tip: Instapundit.)
  • CalPERs plans to sell $15 billion worth of equities over the next two years. Also: “CalPERS’ current portfolio is pegged to a 7.5% return and a 13% volatility rate” even though the most recent returns were “a 0.6% return for the fiscal year ended June 30 and a 2.4% return in fiscal 2015.”
  • But the shift from Fantasyland to Reality has been a slow and painful one for CalPERS:

    Overseers of the nation’s largest pension trust fund, the California Public Employees Retirement System (CalPERS), last month reduced – albeit reluctantly – its projection of future earnings by a half-percentage point.

    With earnings on investments the last two years barely exceeding zero, CalPERS has been compelled to sell assets to make its pension payments – which far outstrip contributions from state and local governments and their employees.

    Reducing the “discount rate” to 7 percent will force employers, and perhaps employees, to kick billions of more dollars into the system to slow the growth of CalPERS’ “unfunded liabilities,” as the $150-plus billion debt is termed.

    However, the extra contributions generated by lowering the discount rate will not erase that debt, which is likely to keep growing if CalPERS’ investment earnings continue to fall short, as many economists expect. In fact, CalPERS’ own advisers see a prolonged period of relatively low earnings, and say the system shouldn’t count on more than 6.2 percent.

    Rationally, the discount rate should have been lowered by at least another full percentage point. But CalPERS has already increased its mandatory contributions by 50 percent to make up for investment losses during the Great Recession and other factors, and cutting the discount rate to 6 percent would probably mean bankruptcy for a number of local governments, especially some cities.

    (Hat tip: Pension Tsunami.)

  • And CalPERs needs to do a lot more:

    This is why the CalPERS board must do far more — starting with, on a large scale, finally embracing pension reforms and, on a smaller scale, shuttering an over-the-top corner of the CalPERS website that says it’s a myth that pension costs are crowding out “government services like police and libraries.”

    It’s no myth. The Los Angeles Times reported last month that pensions and retirement health benefits now consume 20 percent of revenue in Los Angeles and Oakland and a stunning 28 percent in San Jose. While the state government is in better shape than most local governments, it’s beginning to feel the strain as well. On Wednesday, Bloomberg reported that beginning in April, the state will increase vehicle registration fees from $46 to $56 to help cover the soaring cost of pensions for California Highway Patrol officers. In 2000, the state had to pay about one-eighth of annual CHP pension costs. Now it must pay about half.

  • “Home values in San Francisco have doubled in a matter of four years. Since 2012 the typical San Francisco home went from $600,000 to $1,200,000. The Bay Area is under a tech based hypnotic spell and foreign money just can’t get enough of million dollar crap shacks in San Francisco. As we all know trees do not grow to the sky with unlimited potential and at a certain point the laws of reality have to hit. Only 11 percent of households in San Francisco can actually afford to purchase the typical $1.2 million crap shack.”
  • San Francisco welcomes immigrants…unless they threaten to move next door. (Hat tip: Ace of Spades HQ.)
  • “New housing data show foreclosure activity in California dropped to an 11-year low in 2016. But the state is still working through a backlog of homes purchased with bad loans during the last housing bubble.”
  • How America’s restaurant bubble is about to burst. Actually, the piece focuses mainly on the impossibility of running a profitable fine dining restaurant in San Francisco and other similarly expensive locales. (Hat tip: Zero Hedge.)
  • “How the University of California exploited a visa loophole to move tech jobs to India.”
  • The Census bureau says that Texas continued to grow in 2016. “Another big gainer was Texas, whose addition of about 433,000 people accounted for 19% of the country’s growth. The state, with 27.9 million people, grew from a relatively strong flow of immigrants and people relocating there from other states.”
  • Texas was second relocation destination choice in 2015:

    Texas experienced a net gain of out-of-state residents in 2015, with 107,689 more people moving to Texas than Texas residents moving out of state. This is a 4 percent increase in the net gain of Texas residents from 2014 (103,465 residents).

    The total number of residents moving to Texas from out of state in 2015 increased 2.8 percent year-over-year to 553,032 incoming residents. The highest number of new Texans came from California (65,546), followed by Florida (33,670), Louisiana (31,044), New York (26,287) and Oklahoma (25,555).

    Texas once again ranked third in the nation for number of residents moving out of state (445,343) in 2015. The most popular out-of-state relocation destinations for Texans were California (41,713), Florida (29,706), Oklahoma (28,642), Colorado (25,268), and Louisiana (19,863).

  • Arizona and Florida managed to dethrone Texas for the relocation top spot for the first time in a dozen years.
  • Why is Austin housing more expensive comapred to other Texas cities? “The reasons vary, but boil down to Austin’s relative unwillingness–thanks to NIMBYism and regulations–to build more housing.”
  • It doesn’t help that Austin is experiencing a net influx of 3,000 Californians a year. Seems like more…
  • California ban on modern sporting rifles went into effect January 1. (Hat tip: Director Blue.)
  • “Police in Kern County, California, have killed more people per capita than in any other American county in 2015.” Caveat the first: The Guardian. Caveat the second: Thanks ever so much for that full-frame background video designed to bring by computer to a screeching halt, Guardian
  • How Marfa, Texas turned itself into an art colony.
  • Students at California law schools are doing horribly on the bar exam. “Law schools are admitting less and less qualified students in an effort to bolster their bottom lines. And why do their bottom lines need to be bolstered? Because they have too many faculty relative to student demand for the schools, and are either reluctant or unable to reduce the size of the faculty to “right size” the law school relative to present demand for the JD.” (Hat tip: Instapundit.)
  • Maybe they should start calling it “North American Apparel“:

    Canadian apparel maker Gildan Activewear Inc. has won a bankruptcy auction for U.S. fashion retailer American Apparel LLC (curxq) after raising its offer to around $88 million, a person familiar with the matter said Monday.

    Gildan’s takeover marks the end of an era for the iconic Los Angeles-based company, which was founded in 1998 by an eccentric Canadian university drop-out and grew to become a part of U.S. popular culture thanks to its racy advertising.

    Gildan will not take any of American Apparel’s 110 stores, but will own its brand and assume some of its manufacturing operations, the source said. The deal is subject to a bankruptcy judge approving it on Thursday.

  • State of California: You can’t mention actresses ages, because Reasons. IMDB: Free speech. Bite me.
  • And if you hadn’t seen them already, two previous BattleSwarm stories that touch on the Texas vs. California issue:

  • Interview with TPPF’s James Quintero on the Texas Municipal Pension Debt Crisis
  • The Texas 85th legislative session opens with budget tightening on the agenda.
  • Texas vs. California Update for January 29, 2014

    Thursday, January 29th, 2015

    To a certain extent, this Texas vs. California roundup is incomplete, since we’re hot and heavy into the new legislative session and I haven’t had a chance to fully digest the proposed budget numbers yet. By the Legislative Budget Boards numbers, they’re only projecting a 1.5% increase in the 2016-2017 biennium budget over 2014-2015. But see the first link…

  • Setting the story straight on the Texas budget. TPPF uses a different baseline…
  • California’s public employee unions would prefer that you not know how well they’re compensated.
  • How California’s public employees use sick leave to spike their pensions.
  • Supreme Court may take on California union mandatory dues case.
  • Though not nearly as bad as California, Texas state and local public employee pensions are also in need of reform.
  • California’s Kern County declares a fiscal emergency over dropping oil prices. “Collapsing crude prices are squeezing the finances of Kern County, home to three-fourths of California’s oil production.” Thankfully, oil and gas extraction is a lot more widespread in Texas.
  • The City of Sacramento’s unfunded liabilities have reached $2.3 billion. (Hat tip: Pension Tsunami.)
  • “Fresno? No one goes to Fresno anymore!” Except for job growth percentage, that is, where Fresno outpaced Silicon Valley.
  • Remember the Newport Beach police department firing a whistler-blower? Via Dwight comes a followup: “A husband and wife who sued Newport Beach and its police department for alleged retaliation and wrongful termination have settled their lawsuits for $500,000, according to city officials.”
  • “Physician-assisted suicide has returned to California’s political agenda.” Well, why not? California’s ruling Democrats have been attempting fiscal suicide for well over a decade now…
  • Toyota breaks ground on its new Texas headquarters.
  • A public school in California is having a Hijab Day.