Posts Tagged ‘Toyota’

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 July 25, 2016

    Monday, July 25th, 2016

    Enjoy another Texas vs. California roundup:

  • June marked the 114th month that Texas was at or below the national unemployment average. Texas also created 246,600 jobs in the service sector.
  • Once again Texas ranks as the best state for business, and California ranks worst. (Hat tip: Fox and Hounds via Pension Tsunami.)
  • Elites watch while California crumbles:

    The basket of California state taxes — sales, income, and gasoline — rates among the highest in the U.S. Yet California roads and K-12 education rank near the bottom.

    California depends on a tiny elite class for about half of its income-tax revenue. Yet many of these wealthy taxpayers are fleeing the 40-million-person state, angry over paying 12 percent of their income for lousy public services.

    Excessive state regulations and expanding government, massive illegal immigration from impoverished nations, and the rise of unimaginable wealth in the tech industry and coastal retirement communities created two antithetical Californias.

    One is an elite, out-of-touch caste along the fashionable Pacific Ocean corridor that runs the state and has the money to escape the real-life consequences of its own unworkable agendas.

    The other is a huge underclass in central, rural, and foothill California that cannot flee to the coast and suffers the bulk of the fallout from Byzantine state regulations, poor schools, and the failure to assimilate recent immigrants from some of the poorest areas in the world.

    The result is Connecticut and Alabama combined in one state. A house in Menlo Park may sell for more than $1,000 a square foot. In Madera, three hours away, the cost is about one-tenth of that.

  • CalPERS suffers $30.8 billion annual loss. “CalPERS has notoriously minimized the annual pension contribution for its 3,007 government entities by fantasizing that its superior investments expertise will allow its investments to compound every year without loss for the next three decades at an annual rate of 7.5 percent.” (Hat tip: Pension Tsunami.)
  • CalSTRS isn’t doing much better: “The California State Teachers’ Retirement System [earned] 1.4% for the fiscal year ended June 30.” (Hat tip: Instapundit.)
  • Record tax revenues, yet somehow California is still broke:

    California taxpayers are getting taken to the cleaners, but most of them are completely in the dark about how and why.

    I will pose a quick question: Does it seem strange that California has recorded record revenue increases, yet we also see a record number of tax increases and bond issuances on the ballot?

    In other words, the state’s tax system is collecting massive amounts of revenues, record amounts, yet politicians are still asking for a record number of new tax increases. For taxpayer advocates, it just doesn’t seem fair and seems very strange at first glance as to how this can even occur.

    The truth of the matter is that California’s system of public finance is a complete train wreck and is set up such that no amount of tax revenues collected will ever be enough to satisfy “spending needs.” The so-called baseline expenditure increases are on autopilot and deficit projections are generated despite record revenue increases, a trend projected in the Governor’s May Revise.

    (Hat tip: Pension Tsunami.)

  • “As we roll toward the November ballot, I’m reminded of H.L. Mencken’s quip that “Democracy is the theory that the common people know what they want, and deserve to get it good and hard.” We always get it “good and hard” in California given the ever-expanding one-party rule. The worse it gets, the more voters from the GOP high-tail it to Nevada and Texas — and the worse it gets as political competition evaporates. It’s the political equivalent of a death spiral.” (Hat tip: Pension Tsunami.)
  • Lots of tax hikes are on the California ballot this November, for a variety of different ostensible reasons, but actually for a single reason: Pensions. (Hat tip: Pension Tsunami.)
  • Beaumont, California: “Seven former officials were arrested and charged with stealing nearly $43 million during the city’s development boom. Now, residents are learning that the town’s problems go much deeper than the criminal case.” (Hat tip: Gregory Benford’s Facebook page.)
  • “California’s high-speed rail project increasingly looks like an expensive social science experiment to test just how long interest groups can keep money flowing to a doomed endeavor before elected officials finally decide to cancel it.” $68 billion and rising. (Hat tip: Ace of Spades HQ.)
  • Teachers union writes a $10-million check for income tax ballot measure.”
  • “Oakland police officer Malcolm Miller more than quadrupled his $107,627 salary to $489,662 with overtime, benefits and other specialty pays last year — making him Oakland’s highest paid employee for the third year in a row.” (Hat tip: Pension Tsunami.)
  • “C.C. Myers Inc., one of California’s highest-profile freeway builders, has filed for bankruptcy.”
  • Also filing for bankruptcy: California-based developer Criswell-Radovan, which owns the Tahoe Cal Neva casino Frank Sinatra used to own.
  • One tiny bit of dubious good news for the Bankruptcy Court for the Central District of California: Now they’re only the second in bankruptcy filings in the nation at 45,000, having been overtaken by the Bankruptcy Court for the Northern District of Illinois at 47,535 filings.
  • Nissan and Toyota battle over Texas. “Both automakers are zeroing in on Texas as a key growth opportunity.”
  • California’s Democratic State Controller Betty Yee fined $2,082 for violations during her 2014 campaign.
  • Rent a security robot for $7 an hour. How many human security guards will be left at California’s $15 an hour?
  • Old and Busted: Participation trophies. The New Hotness: California’s Democratic officials giving awards to their own family members.
  • “Judge throws out ex-L.A. County Sheriff Lee Baca’s plea deal, saying six months in prison not enough.” (Hat tip: Dwight.)
  • Texas vs. California Update for June 2, 2016

    Thursday, June 2nd, 2016

    Time for another Texas vs. California update:

  • Once again, Texas is ranked as the best state for business by CEO Magazine, while California is ranked the worst. (Hat tip: Rider Rants via Pension Tsunami.)
  • This OC Register piece offers an good restatement of the general problem:

    California has earned quite a reputation for being openly hostile to business, as confirmed by numerous studies and surveys. Its plethora of taxes and regulations are driving away legions of entrepreneurs and workers, but they are doing wonders for one segment of the economy: the moving industry. It is almost as though that industry is secretly lobbying the state Legislature for its anti-business policies.

    Joe Vranich, as president of Spectrum Location Solutions, an Irvine business relocation consulting firm, knows all about what drives businesses’ decisions to give up and leave for greener pastures. According to his research, in just the past seven years, approximately 9,000 businesses have decided to leave California or expand their operations out of state. Companies leaving California typically save between 20 percent and 35 percent of operating costs, he concluded.

    Texas has been the biggest beneficiary of California’s business exodus.

    Snip.

    California’s litigious climate has become a common complaint of business owners. No wonder the American Tort Reform Foundation once again named California the No. 1 “Judicial Hellhole” in the nation last year, based on the state’s excessive laws and regulations and a flood of disability access, asbestos and food advertising and labeling lawsuits, frequently more opportunistic attempts at extortion than legitimate attempts to seek justice for victims who have been truly harmed.

    California has proven to be a particularly harsh climate for manufacturing businesses. “Even if California were to eliminate the state income taxes tomorrow, that still would not be enough,” CellPoint Corp. CEO Ehsan Gharatappeh told the Dallas Business Journal of the Costa Mesa company’s move to Forth Worth.

    General Magnaplate Corp., which has made reinforced parts for the aerospace, transportation, medical, oil and other industries for 36 years, decided to shut down its California facility in Ventura altogether. “This is a very sad day for our employees and for my family, who have a long history of job creation in this area, but the simple fact is that the state of California does not provide a business-friendly environment,” CEO Candida Aversenti said in a press release. “Increases in workers’ compensation costs and government regulations, combined with predatory citizens groups and law firms that make their living entirely by preying on small businesses, have left us with no other choice but to shut down our California facility. This is in stark contrast to our New Jersey and Texas facilities, which are flourishing in small business-friendly environments created by the respective local governments and environmental agencies.”

  • Tech layoffs double in the Bay area:

    Yahoo’s 279 workers let go this year contributed to the 3,135 tech jobs lost in the four-county region of Santa Clara, San Mateo, Alameda and San Francisco counties from January through April, as did the 50 workers axed at Toshiba America in Livermore and the 71 at Autodesk in San Francisco. In the first four months of last year, just 1,515 Bay Area tech workers were laid off, according to mandatory filings under California’s WARN Act. For that period in 2014, the region’s tech layoffs numbered 1,330.

  • How did the California city of Irwindale rack up the largest per household market pension debt in the state, at $134,907 per household?
  • Low and negative interest rates means that CalPERS must make risky investments to even come close to hitting their yield targets:

    The nation’s largest public pension fund, the California Public Employees’ Retirement System, has one-fifth of its assets in bonds and is down 1.3% since July 1, according to public documents. The system, known by its abbreviation Calpers, also has 53.1% of its assets in stocks, 9% in real estate and 9.4% in private equity. In 2015, Calpers posted a return of 2.4%, below its target rate of 7.5%.

    Nor is CalSTARS doing much better:

    The nation’s second-largest public pension plan, the California State Teachers’ Retirement System, has shifted a significant amount of money away from some stocks and bonds to protect against a downturn. It moved assets into U.S. Treasurys and so-called liquid-alternative funds, which mimic hedge-fund strategies. Calstrs, as the pension is called, reported gains of 1.5% during a choppy 2015, with returns on its fixed-income investments up just 0.6%.

    (Note: WSJ link, so you may need to do the Google thing.)

  • News: Former CalPERS chief executive Fred Buenrostro convicted of bribery. California: Buenrostro will continue to receive his CalPERS pension while in prison. (Hat tip: Pension Tsunami.)
  • Overview of the Texas budget.
  • UnitedHealth exits California’s Obamacare exchanges.
  • Despite that, California wants to offer ObamaCare subsidies to illegal aliens.
  • California also wants to spend more money to send illegal aliens to college.
  • And those illegal aliens with California driver’s licenses still aren’t purchasing liability insurance.
  • Hate California traffic? Tough:

    The newest outrage comes from the Governor’s Office of Planning and Research in the form of a proposed “road diet.” This would essentially halt attempts to expand or improve our roads, even when improvements have been approved by voters. This strategy can only make life worse for most Californians, since nearly 85 percent of us use a car to get to work. This in a state that already has among the worst-maintained roads in the country, with two-thirds of them in poor or mediocre condition.

    Snip.

    In essence, the notion animating the “road diet” is to make congestion so terrible that people will be forced out of their cars and onto transit. It’s not planning for how to make the ways people live today more sustainable. It has, in fact, more in common with Soviet-style social engineering, which was based similarly on a particular notion of “science” and progressive values.

    (Hat tip: Instapundit.)

  • Toyota’s Plano headquarters takes shape.
  • The UAW is making a big push to unionize Tesla’s Fremont plant.
  • Speaking of Tesla, they’re approaching the grand opening of their giant battery factory…in Nevada.
  • McDonald’s CEO says a $15 minimum wage will make his restaurants shift to using robots. But what would McDonald’s know about minimum wage workers?
  • In the same vein, it’s no wonder that Whole Foods opened it’s first semi-automated Whole Foods 365 store in Los Angeles. “Promoted as a ‘chain for millennials,’ the new ‘365’ stores use about one-third less square footage than the company’s traditional 41,000-square-foot Whole Foods stores, but they also slash almost two-thirds of workers with robots and computerized kiosks.” (Hat tip: Director Blue.)
  • Schedule for California high speed rail boondoggle pushed back four more years. Latest obstacle: wealthy equestrians. “Hey, this study says horses won’t mind a super-fast, super loud train zipping along right next to them.” “You mean the study from the institute that two bullet train authority members sit on? Get stuffed!”
  • “The State Assembly Subcommittee on Education voted Tuesday to delay funding to the UC system because of concerns with the UC Retirement Plan, proposed by UC President Janet Napolitano in March, which would cause the university to incur significant costs. The delay was announced after an actuarial report was released earlier that day by Pension Trustees Advisors, or PTA, which showed that the retirement plan would cost the university $500 million in savings, or $34 million a year, over the next 15 years.” (Hat tip: Pension Tsunami.)
  • Maywood, California (which had previously outsourced services to the corrupt city of Bell) is on the brink of bankruptcy. (Hat tip: Dwight.)
  • “Two L.A. sheriff’s deputies convicted of beating mentally ill inmate.”
  • San Francisco liberals versus the city’s police union
  • “Another aviation company has decided to move its corporate headquarters to Fort Worth to take advantage of the Lone Star state’s business friendly environment and the city’s longtime history in the aerospace industry. The move is historic for Burbank, California-based C&S Propeller — an FAA and EASA certified repair station for propeller and airplane maintenance — which has been in California for nearly five decades.”
  • This one’s a wash: XCOR lays off employees in both California and Texas.
  • 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 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.
  • 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:

  • Texas vs. California Watch: U-Haul Index Update

    Friday, May 2nd, 2014

    Here’s another data point for the Texas vs. California debate: U-Haul rates from California to Texas are still over double those from Texas to California:

    Torrance, CA to Plano, TX: $2,626
    Plano, TX to Torrance, CA: $1,264

    Los Angeles, CA to Dallas, TX: $2,558
    Dallas TX to Los Angeles: $1,232

    Torrence to Plano, of course, being Toyota’s move from their old to their new U.S. corporate headquarters

    Texas vs. California Update for April 29, 2014

    Tuesday, April 29th, 2014

    Big news, as one of the world’s largest car makers decides to abandon tax-and-spend California for the Lone Star State:

  • Toyota is moving U.S. sales and marketing operations from Torrence, California to Plano, Texas.

    California has become infamous with business executives and owners there not only for high tax rates and complex taxing schemes but also for overzealous regulations and regulators that have managed to stifle the entrepreneurial energy of thousands of companies.

  • “Criminal activity is the extreme manifestation of California’s institutionalized progressive hypocrisy.”
  • ZeroHedge (quoting a certain gun-grabbers business news service) offers up the most and least taxing states in America. Once again, California tops the list for most taxing. Plus a handy visual representation:

  • “California doesn’t just have the highest state income tax in the nation. It leads the rest of the country in almost every category of taxation: the highest state sales tax, the highest taxes on gasoline at the pump, and the highest corporate tax west of the Mississippi. And the taxes aren’t doing much for the people of the state, rich or poor. For the first time in history, the Census Bureau reports that California is also the poorest state in the nation, with 23.8% of the population living in poverty, in large part because of California’s high cost of living (which is not helped by all the sky-high consumption taxes the Democrats have enacted and the poor must pay to survive.)”
  • If that weren’t bad enough, a new bill (SB 1372) threatens to levy a class-war tax on CEO salaries. “Their bill would change the state’s fixed tax rate on publicly traded corporations to a sliding levy that’s pegged to the earnings gap between the top-paid executive and the median worker.” Evidently Democrats want all publicly traded corporations in California to move their headquarters to Texas…
  • The Pension Tsunami is going to wreck California sooner rather than later. “State and local governments in the Golden State have underfunded their golden-parachute pension promises by a terrifying half a trillion dollars. Twenty thousand public employees now collect yearly pensions of $100,000 or more.”
  • Some of the money those “public servants” are raking in is pretty staggering: “In 2012, more than 100 individuals took home more than $500,000 in total compensation; 8,248 raked in more than $250,000; 28,844 cashed in to the tune of $200,000 or more.”
  • Superintendent in a California school district who oversees 6,600 students pulled down a cool $674,559 last year. (Hat tip: Dwight.)
  • Evidently CalPERS and San Bernardino are still negotiating.
  • If you think CalPERS is going broke now, just wait to California’s bankrupt cities start writing down debts owed.
  • Everyone knows San Francisco is as liberal as liberal can be. Yet even there voters have voted down green energy mandates.
  • California hot sauce maker Sriracha is still mulling relocation offers. Texas is still a possibility.
  • California’s tax bureaucracy will continue suing you after 20 years, even if they’ve lost in court.
  • Poll of residents shows that Texas is one of the five most popular states to live in. “Texans rank high on standard of living and trust in their state government, and they are less negative than others are about the state taxes they pay.”
  • Texas isn’t immune from California’s troubles when big city officials start spending like California Democrats. Big-spending Texas cities should learn from bankrupt Detroit’s example.