Posts Tagged ‘San Jose’

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 October 19, 2016

    Wednesday, October 19th, 2016

    Time for another Texas vs. California update! Included here are several links from City Journal’s special “Texas Rising” issue.

  • Texas cities continue to kick ass economically:

    Texas’s spectacular growth is largely a story of its cities—especially of Austin, Dallas–Fort Worth, Houston, and San Antonio. These Big Four metropolitan areas, arranged in a layout known as the “Texas Triangle,” contain two-thirds of the state’s population and an even higher share of its jobs. Nationally, the four metros, which combined make up less than 6 percent of the American population, posted job growth equivalent to 30 percent of the United States’ total since the financial crash in 2007. Within Texas, they’ve accounted for almost 80 percent of the state’s population growth since 2000 and over 75 percent of its job growth. Meantime, a third of Texas counties, mostly rural, have actually been losing population.

    Texas is sometimes described as the new California, an apt parallel in terms of the states’ respective urban geographies. Neither state is dominated by a single large city; each has four urban areas of more than 1 million people, with two of these among the largest regions in the United States. In both states, these major regions are demographically and economically distinct.

    But unlike California, whose cities have refocused on elite priorities at the expense of middle-class occupations, Texas offers a complete spectrum of economic activities in its metros. Another key difference is that Texas cities have mostly embraced pro-development policies that have kept them affordable by allowing housing supply to expand with population, while California’s housing prices blasted into the stratosphere due to severe development restrictions. Texas cities also benefit from favorable state policies, such as the absence of a state income tax and a reasonable regulatory and litigation environment. These factors make Texas cities today what California’s used to be: places to go in search of the American dream.

  • More on how Texas cities are growing:

    Though some east/west coastal cities—notably, San Francisco—have enjoyed vigorous growth of late, none has been nearly as proficient in creating jobs in the new millennium as Texas’s four leading metros. Overall, Dallas–Fort Worth and Houston have emerged as the nation’s fastest-expanding big-city economies. Between 2000 and 2015, Dallas–Fort Worth boosted its net job numbers by 22.7 percent, and Houston expanded them by an even better 31.2 percent. Smaller Austin (38.2 percent job-base increase) and once-sleepy San Antonio (31.4 percent) have done just as well. New York, by way of comparison, increased its number of jobs in those years by just 10 percent, Los Angeles by 6.5 percent, and San Francisco by 5.2 percent, while Chicago actually lost net employment. And the Texas jobs are not just low-wage employment. Middle-class positions—those paying between 80 percent and 200 percent of the national median wage—have expanded 39 percent in Austin, 26 percent in Houston, and 21 percent in Dallas since 2001. These percentages far outpace the rate of middle-class job creation in San Francisco (6 percent), New York and Los Angeles (little progress), and Chicago (down 3 percent) over the same period.

    Snip.

    Among 52 American metropolitan areas with more than 1 million residents, San Antonio had the largest gain in its share of middle- and upper-income households—that is, the percentage of households in the lower-income category in the city actually dropped—from 2000 to 2014. Houston ranked sixth, Austin 13th, and Dallas–Fort Worth 25th in the Pew survey.

    Snip.

    In 2015, unemployment among Texas’s Hispanic population reached just 4.9 percent, the lowest for Latinos in the country—California’s rate tops 7 percent—and below the national average of 5.3 percent.

    Texas Latinos show an entrepreneurial streak. In a recent survey of the 150 best cities for Latino business owners, Texas accounted for 17 of the top 50 locations; Boston, New York, L.A., and San Francisco were all in the bottom third of the ranking. In a census measurement, San Antonio and Houston boasted far larger shares of Latino-owned firms than did heavily Hispanic L.A.

    In Texas, Hispanics are becoming homeowners, a traditional means of entering the middle class. In New York, barely a quarter of Latino households own their own homes, while in Los Angeles, 38 percent do. In Houston, by contrast, 52 percent of Hispanic households own homes, and in San Antonio, it’s 57 percent—matching the Latino homeownership rate for Texas as a whole. That’s well above the 46 percent national rate for Hispanics—and above the rate for all California households. (The same encouraging pattern exists for Texas’s African-Americans.)

    California and Texas, the nation’s most populous states, are often compared. Both have large Latino populations, for instance, but make no mistake: Texas’s, especially in large urban areas, is doing much better, and not just economically. Texas public schools could certainly be improved, but according to the 2015 National Assessment of Educational Progress—a high-quality assessment—Texas fourth- and eighth-graders scored equal to or better than California kids, including Hispanics, in math and reading. In Texas, the educational gap between Hispanics and white non-Hispanics was equal to or lower than it was in California in all cases.

    Though California, with 12 percent of the American population, has more than 35 percent of the nation’s Temporary Assistance for Needy Families welfare caseload—with Latinos constituting nearly half the adult rolls in the state—Texas, with under 9 percent of the country’s population, has less than 1 percent of the national welfare caseload. Further, according to the 2014 American Community Survey, Texas Hispanics had a significantly lower rate of out-of-wedlock births and a higher marriage rate than California Hispanics.

    In California, Latino politics increasingly revolves around ethnic identity and lobbying for government subsidies and benefits. In Texas, the goal is upward mobility through work. “There is more of an accommodationist spirit here,” says Rodrigo Saenz, an expert on Latino demographics and politics at the University of Texas at San Antonio, where the student body is 50 percent Hispanic. It’s obvious which model best encourages economic opportunity.

  • Chuck DeVore explains how SB1234, a bill that establishes the California Secure Choice Retirement Savings Trust, a state-run retirement fund for 7.5 million Californians, is actually a mechanism for forcing taxpayers to bail out public pensions:

    Per section 100004 (c) of the new law: Moneys in the program fund may be invested or reinvested by the treasurer or may be invested in whole or in part under contract with the Board of Administration of the Public Employees’ Retirement System or private money managers, or both, as determined by the board. What is the California Public Employees’ Retirement System or CalPERS for short? It’s America’s largest public pension fund with some 1.8 million current and retired government employees.

    But, as with many public retirement systems around the nation, CalPERS is grossly underfunded. Including the California teacher retirement system and smaller local government systems, the unfunded liability for future retirement payouts is about $991 billion, according to the Stanford Institute for Economic Policy Research’s Pension Tracker run by Joe Nation, Ph.D., a former Democratic member of the California State Assembly.

    Since cash is amazingly fungible in government hands, dragooning some 7.5 million Californians into a retirement system that supports 1.8 million state government workers by levying what amounts to a 3 percent payroll tax is going to go a long way towards ensuring CalPERS’ short-term solvency while, perhaps more importantly, building public support for bailing out CalPERS’ looming trillion-dollar shortfall.

    7.5 million Californians will be made to care about CalPERS fiscal health.

    (Hat tip: Pension Tsunami.)

  • California wants to offer ObamaCare to illegal aliens. (Hat tip: Director Blue.)
  • Governor Bush’s education reforms were a lot more successful than President Bush’s. “Educational outcomes overall have continued to improve in Texas.” A long article that points out the need for more reform.
  • Meanwhile, California’s teacher’s unions are trying to destroy charter schools.
  • “The Redding Police Department’s net personnel costs in fiscal 2007-08 were $21 million for 173 employees; in fiscal 2015-16 the costs were $22 million for 131 total employees. In fiscal 2015-16, the Redding Police Department is paying $47,500 per employee more than in fiscal 2007-08. The increase is to pay its unfunded pension liability.” (Hat tip: Pension Tsunami.)
  • San Jose voters to vote on compromise pension reform that rolls back real pension reform passed four years ago. (Hat tip: Pension Tsunami.)
  • “Former [Orange County] Public Works administrator and convicted felon Carlos Bustamante, who served jail time this year for his sex crimes against county workers, lost a chunk of his pension benefits Monday after he was stripped of credit for the years he worked while committing the crimes.” But he’ll still get a pension. Also: “The board’s decision also means Bustamante is owed the nearly $56,000 he paid into the system during the 2 1/2 years he was committing crimes – meaning he’ll be refunded nearly $32,000 but will collect lower pension payments moving forward.” (Hat tip: Pension Tsunami.)
  • Los Angeles is suffering from a housing shortage. So naturally there’s a ballot initiative to make housing construction more expensive through requiring union kickbacks.
  • Here’s a long piece in City Journal by Watchdog.org’s Jon Cassidy. It’s a very balanced assessment of both the strengths and weaknesses of Texas’ governmental structure.

    The good news is that the benefits of the Texas model, overseen by its part-time legislature, are impossible to ignore. From 2000 to 2014, Texas created some 2.5 million nonfarm jobs, more than a quarter of the U.S. total for the period. In 2015, amid free-falling oil prices, Texas still managed to finish third among states in job growth, thanks to booming health care, education, professional services, manufacturing, hospitality, warehousing, and light industrial sectors. Construction is doing well, too. Wondrously cheap housing and pro-growth land-use policies draw people and business to the state. None of this diversification was centrally planned. It’s the product of an economy that’s wide open to foreign trade and immigration. Immigration has boosted native Texans’ income by an aggregate $3.4 billion to $6.6 billion a year. Income inequality is up, too—but that’s just another way of saying that high-paying jobs are growing fastest.

    To a large degree, the Texas model has worked because the Austin governing establishment is penned in, limited in the damage that it can inflict by a state constitution that not only keeps lawmakers from enacting new laws for one out of every two years but also severely restricts taxation and imposes budget caps. Texas has no state income tax, and instituting one would require voter approval. The legislature makes do with a sales tax, a handful of excise taxes, and an onerous gross-receipts tax that penalizes high-volume businesses. The Texas state government simply never has the money for bold new expansions of government. So it stays small, just as the original Texans wanted it. It’s not perfect and never will be, but the state is flourishing.

    (Hat tip: Pension Tsunami.)

  • Texas state government has done a good job controlling debt. Local governments? Not so much. (Hat tip: Pension Tsunami.)
  • Police are under fire in Sacramento and Los Angeles.
  • The high speed rail project is uniting Californians! In opposition to it:

    The rest of the story is the astonishingly widespread political opposition to the train by California voters these days, even though 53 percent of them approved the idea when it was on the state ballot in the November 2008 election. The opposition spans ideological left and right and demographic rich, poor, and middle-class: from wealthy Silicon Valley technocrats horrified that the ultra-fast rail lines, with overpasses only every 10 miles or so, would wreck their leafy, bicycle-friendly upscale-suburban neighborhoods, to Latino-majority working-class towns in Southern California’s San Fernando Valley that would be split in half by the train corridors, to equestrians in the San Gabriel Mountain foothills who would see their horse trails destroyed and environmentalists concerned about wetlands destruction in Northern California and threats to wildlife and endangered plant species in Southern California’s Angeles National Forest, through which several of the proposed train routes would plow.

  • Hat tip for the above to Amy Alkon, who also notes:

    The analyzed per mile rate would make a one-way SF to LA ticket cost about $190.5 Therefore, if the CHSRA’s assumed private operator must charge enough to break even, four tickets for a LA/SF round trip would cost at least $1,520. Conclusions: California’s 2009 median household income was $42,548.6. For a middle class household to ride the train LA-SF once would cost them about 4% of their annual pre-tax income.

  • San Francisco to city of Brisbane: “Build housing in your city so San Franciscans can enjoy it…or else!”
  • CalPERS tries to stick 700 person town of Loyalton with a $1.6 million bill as punishment for dropping out of the system…for four retirees. (Hat tip: Pension Tsunami.)
  • The Bay Area Air Quality Management District needs more money so employees can enjoy more expensive junkets to New Orleans.
  • Want to sell signed books in California? A newly passed law requires you to issue a certificate of authenticity for any item over $5, including your name and address, even if it came from the publisher pre-signed. No COA? “You can be liable for TEN TIMES damages, plus attorneys fees. Call it a cool half mill, because you didn’t know you were supposed to issue a COA.” Word is they’re planning to change this idiocy, but that doesn’t excuse passing it in the first place.
  • Another California idiot law: A man can’t display historical Civil War paintings at the state fair because they have confederate flags in them. More here.
  • Did California just legalize child prostitution? Snopes says no, but I’ve seen California impose more tendentious readings on other laws. (Hat tip: Director Blue.)
  • “Jerry Brown Just Signed a Tough-on-Rape Bill That’s So Bad, Even Feminists Hate It.” (Hat tip: Instapundit.)
  • Voters in Apple Valley, California push for initiative to force voter approval on debt spending. Naturally the City Council puts their own initiative on the ballot to continue “eminent domain acquisition efforts unencumbered by another election.” Plus they illegally spent taxpayer money advertising in favor of their own initiative. (Hat tip: Pension Tsunami.)
  • Harrison County in east Texas has been enjoying industrial gains.
  • Dallas has become a big hub for philanthropy. (Hat tip: Pension Tsunami.)
  • California passes a hide an actor’s age upon request law. I sincerely doubt this will pass constitutional muster on first amendment and equal protection clause grounds. Plus, IMDB’s servers are in Washington state…
  • Verengo Inc, the largest installer of residential solar systems in southern California, filed for Chapter 11 bankruptcy protection on Friday as it seeks to sell itself after defaulting on a bank loan.”
  • “The San Diego-based Garden Fresh Restaurant Corp., which owns the Souplantation chain, has filed for chapter 11 bankruptcy protection…Court papers show that Garden Fresh pins its troubles on declining sales, higher minimum wages, and higher employee benefit costs.”
  • DentalOne is relocating its headquarters from Ohio to Plano.
  • Texas vs. California Update for November 12, 2015

    Thursday, November 12th, 2015

    Time for another Texas vs. California roundup:

  • Is the Los Angeles Unified School District headed for bankruptcy?
  • If it does, pensions are one of the main culprits. (Hat tip: Pension Tsunami.)
  • A tale of two pension plans. Atlanta successfully reformed theirs. San Jose didn’t. (Hat tip: Pension Tsunami.)
  • All five of the most expensive housing markets in the U.S. are in California.
  • California ranks among the bottom five in standardized school tests.
  • Part four of a long, detailed piece on the fall of Pacific Grove, and why it matters. (Hat tip: Pension Tsunami.)
  • Spending $15 billion for a tunnel for fish in the midst of a drought isn’t going over well with California voters.
  • Who is the water-wasting Wet Prince of Bel Aire?
  • The fight over California mining company Molycorp’s bankruptcy.
  • Roses are Red/Violets are Blue/The State of California has/Blood samples from you.
  • The WNBA’s Tulsa (formerly Detroit) Shock relocate to Dallas. In other news, the WNBA is evidently still in business.
  • TPPF’s Dr. Vance Ginn on why the Texas model works.
  • 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: Cali Goes Batshit Insane Edition

    Tuesday, August 25th, 2015

    California has long had a tenuous grasp of what the rest of us regard as consensus reality. But two new pieces of legislation suggest they’ve gone off the deep end into full Victimhood Identity Politics land:

  • First, they decided that police shootings wouldn’t be subject to the grand jury process, because what’s a little things like two centuries of due process and the fifth amendment to the Constitution when there are policemen to be railroaded to satisfy black protesters?
  • They also decided to purge the words “illegal alien” from state statutes, because what’s mere law when there’s political correctness to be pandered to?
  • Of course, that’s not all that’s new on the Texas vs. California front:

  • “California taxpayers paid out big bucks to state workers in 2014. How much? More than the Gross Domestic Product of 100 countries, according to new data published by the State Controller’s office. In 2014, more than 650,000 state employees earned a total of $32 billion in wages and benefits.” It gets better: “Nine hundred sixty-nine state employees earned more than the President of the United States.” Added irony:

    The lowest paid average workers represented agencies focused on the environment, women and people with disabilities. According to the state’s 2014 payroll data, the average salary for the 11 state employees at the California Commission on Disability Access was just $15,213 per year, slightly more than the $14,494 average salary paid to the four employees at the Commission on the Status of Women.

  • There is no California. Only Zuul…
  • Texas unemployment rate: 4.2%. California unemployment rate: 6.2%. (Hat tip: WILLism’s Twitter feed.)
  • Los Angeles’ new minimum wage has wrecked hotel employment. Or maybe just non-illegal alien employment… (Hat tip: Moe Lane.)
  • Why Public Services in California Decline Even As Revenues Rise. “Until California’s leaders address the three elephants – retirement, healthcare and corrections costs — that are crowding out public services and causing unproductive tax and fee increases, citizens will continue to suffer and inequality will continue to grow.” (Hat tip: Pension Tsunami.)
  • Chuck Devore on what makes Texas friendly to business: less red tape and lower taxes.
  • Voters to San Jose City Council: We want pension reform! San Jose City Council to voters: Get stuffed! (Hat tip: Pension Tsunami.)
  • TV’s CHiPS never seemed to be involved in ethics scandals the way the current administration is, including no-bid contracts to European companies. (Bonus: it’s also suitable for Dwight’s Art Acevedo watch.)
  • California’s “Green Jobs Initiative” spent $297 million to create 1,700 jobs.
  • More on the same theme, and Tom Steyer wasting $29.6 million of his own money pushing it, from City Journal.
  • California’s SFX: from billion dollar company to bankruptcy.
  • Texas vs. California Roundup for October 9, 2014

    Thursday, October 9th, 2014

    Another Texas vs. California roundup:

  • If Stockton bankruptcy judge’s ruling is upheld, a lot of California cities could actually start working for citizens again, rather than public employee unions.
  • There are plenty of lessons to be learned from Stockton’s bankruptcy. Too bad Stockton’s officials seem unwilling to learn them:

    Pension contributions for public-safety workers now amount to 41 percent of payroll. That would put the total cost of salary, health benefits, and pensions at about $120,000 annually for a fifth-year officer…The long saga of Stockton’s decline dramatizes the inefficiency and illogic of union-dominated, monopolistic, government-labor markets.

  • But letting cities escape their crushing public sector union pension burdens doesn’t sit well with California’s looter class. Solution: propose eliminating Chapter 9 bankruptcy. (Hat tip: Pension Tsunami.)
  • According to the September labor report, California did manage to add 313,900 jobs between August 2013 and August 2014. But Texas added 395,200. (Hat tip: WILLisms Twitter feed.)
  • California legislature decides that students don’t need any of that stinking due process.
  • Hey, remember those “temporary” tax hikes Jerry Brown got voters to approve? Guess what?
  • California’s roads are among the worst in the country.
  • Someone should tell that to the city of Stanton, California, which reached for tax hikes rather than cutting the pay of unionized workers.
  • How San Jose reformed their finances using transparency. (Hat tip: Pension Tsunami.)
  • How California browbeat Toyota over closing a money-losing plant.
  • The California-based manufacturing facility of Colorado-based Boulder Electric Vehicle shuts down after receiving a $3 million grant from the California Energy Commission.
  • How California’s for-profit Thomas Jefferson Law School got itself into serious financial trouble through excessive dependence on loans (both the student type and the tax-exempt bond type).
  • Americans don’t want their state to secede so much as they want to kick California out of the union. (Hat tip: Karl Rehn of KRTraining.)
  • A look at PSAT participation rates in Texas. (Also via WILLisms.)
  • Californian Trip Hawkins, of EA, Apple and 3DO fame, filed for bankruptcy in 2011. This year, the 9th circuit ruled that a profligate life style (for certain values of “profligate”), does not, in fact, constitute a “willful” attempt to avoid bankruptcy. Mr. Hawkins seemed to be living well, but not necessarily living large
  • California owner of Akron, Ohio mall abandoned since 2008 declares bankruptcy. And since it’s the Halloween season, and abandoned malls are wonderfully creepy places, here’s a pic:

  • Red State, Blue State

    Sunday, October 16th, 2011

    Tax revenues in Texas rose 11.8% in September compared to September a year ago.

    Meanwhile, California took in 4 percent less than anticipated in September, falling $300 million short in September alone and $700 million short for the year.

    These numbers offer me a chance to offer up my long-in-gestation comparison between Texas and California.

    Both Texas and California share a number of similarities: They are the two most populous states in the Union, both are southern states with warm climates, both have long coastlines and important ports handling international trade, both share a border with Mexico, both have diverse populations and diversified economies, including extensive portions of the agriculture, energy, and high tech sectors.

    The biggest difference between the two is their respective governments. Texas, of course, is the paragon of the red state model (low tax, low spending, limited government, non-union) whereas California is the classic example of the blue state model (high tax, high spending, expansive welfare state, closed shop). Texas kept government small, tightened its belt and lived within its means. California spent like there was no tomorrow, jacked tax rates into the stratosphere, and gave generous contracts to public employee unions. Now Texas is doing well and California is going broke.

    Jay Ambrose asks:

    So what example should America follow, that of deficit-slaughtering, budget-cutting, seriously limited government in Texas, which has added 730,000 jobs in the past decade, or that of regulation-happy, spend-mercilessly, owe-everything, flee-this-place-quickly California, which has lost 600,000 jobs during the same period?

    Texas has some of the best cities for jobs in the country. California? It “boasted zero regions in the top 150.”

    Chief Executive ranks Texas as the best state for business, and California as the worst.

    High tech companies are fleeing California for low tax states. In fact, high earners inevitably flee high tax states for low tax states:

    Examining IRS tax return data by state, E.J. McMahon, a fiscal expert at the Manhattan Institute, measured the impact of large income-tax rate increases on the rich ($200,000 income or more) in Connecticut, which raised its tax rate in 2003 to 5% from 4.5%; in New Jersey, which raised its rate in 2004 to 8.97% from 6.35%; and in New York, which raised its tax rate in 2003 to 7.7% from 6.85%. Over the period 2002-2005, in each of these states the “soak the rich” tax hike was followed by a significant reduction in the number of rich people paying taxes in these states relative to the national average. Amazingly, these three states ranked 46th, 49th and 50th among all states in the percentage increase in wealthy tax filers in the years after they tried to soak the rich.

    Here’s a comparison between California and Texas that explains, in great detail, how and why Texas is kicking California’s ass. Remember those job creation numbers, so ably depicted by WILLisms?

    Now compare Texas to California via this chart from Mark J. Perry’s Carpe Diem blog:

    Another reason Texas is thriving is that it doesn’t have overpaid, all-powerful public sector unions.

    High tech employees are fleeing California for Texas, because they can keep more of what they make, the government isn’t going bankrupt, and the roads and schools are now better in Texas. Despite all the money California spends on a a bloated public sector, the actual core services delivered are worse in California than they are in Texas:

    “Today, you go to Texas, the roads are no worse, the public schools are not great but are better than or equal to ours, and their universities are good. The bargain between California’s government and the middle class is constantly being renegotiated to the disadvantage of the middle class.”

    Just how broke California is became apparent in a recent Michael Lewis piece in Vanity Fair. It illustrates who irretrievably broken California’s politics and finances are, and just how little a dent Gov. Arnold Schwarzenegger made in fixing the problem:

    David Crane, the former economic adviser—at that moment rapidly receding into the distance—could itemize the result: a long list of depressing government financial statistics. The pensions of state employees ate up twice as much of the budget when Schwarzenegger left office as they had when he arrived, for instance. The officially recognized gap between what the state would owe its workers and what it had on hand to pay them was roughly $105 billion, but that, thanks to accounting gimmicks, was probably only about half the real number. “This year the state will directly spend $32 billion on employee pay and benefits, up 65 percent over the past 10 years,” says Crane later. “Compare that to state spending on higher education [down 5 percent], health and human services [up just 5 percent], and parks and recreation [flat], all crowded out in large part by fast-rising employment costs.” Crane is a lifelong Democrat with no particular hostility to government. But the more he looked into the details, the more shocking he found them to be. In 2010, for instance, the state spent $6 billion on fewer than 30,000 guards and other prison-system employees. A prison guard who started his career at the age of 45 could retire after five years with a pension that very nearly equaled his former salary. The head parole psychiatrist for the California prison system was the state’s highest-paid public employee; in 2010 he’d made $838,706. The same fiscal year that the state spent $6 billion on prisons, it had invested just $4.7 billion in its higher education—that is, 33 campuses with 670,000 students. Over the past 30 years the state’s share of the budget for the University of California has fallen from 30 percent to 11 percent, and it is about to fall a lot more. In 1980 a Cal student paid $776 a year in tuition; in 2011 he pays $13,218. Everywhere you turn, the long-term future of the state is being sacrificed.

    It’s even worse at the local level, where cities are going broke do to outrageous union pensions, such as in San Jose:

    It shows that the city’s pension costs when he first became interested in the subject were projected to run $73 million a year. This year they would be $245 million: pension and health-care costs of retired workers now are more than half the budget. In three years’ time pension costs alone would come to $400 million, though “if you were to adjust for real life expectancy it is more like $650 million.” Legally obliged to meet these costs, the city can respond only by cutting elsewhere. As a result, San Jose, once run by 7,450 city workers, was now being run by 5,400 city workers.

    What do the citizens of California get for some of the highest public sector wages in the country? Police and firefighters that stand around watching a man drown.

    San Jose is far from the worst:

    Back in 2008, unable to come to terms with its many creditors, Vallejo declared bankruptcy. Eighty percent of the city’s budget—and the lion’s share of the claims that had thrown it into bankruptcy—were wrapped up in the pay and benefits of public-safety workers.

    California has some of the highest taxes in the country, and it can’t make ends meet because it’s welfare state and public employee unions suck up every available dollar and more.

    You cannot tax your way to prosperity.

    You cannot spend your way to prosperity.

    Government can only create the conditions that allow the free market to create jobs.

    The red state model works.

    The blue state model doesn’t.