Posts Tagged ‘unions’

Texas vs. California Update for September 14, 2016

Wednesday, September 14th, 2016

Time for another Texas vs. California update:

  • Vance Ginn makes the case that Texas is still kicking California’s ass:

    After descending into a deep valley during the recession, California’s economy has recently grown at a faster rate than in Texas, where the drop in oil prices and higher value of the dollar have negatively affected the mining and manufacturing sectors. However, during the last decade, the productive, real private sector growth has increased by 13.6 percent in California compared with a robust 29.1 percent in Texas.

    This growth translates into output per person in Texas increasing almost four times more than in California in that period, meaning economic output has far outpaced population growth.

    Although contemporary economic growth in California has led to a higher annual job creation rate than in Texas since April 2015, this only tells part of the story.

    Since December 2007 when the last national recession started, total civilian employment increased in California by 1.2 million while it increased by 1.7 million in Texas, with a labor force two-thirds the size of California’s. This increase in employment in Texas constitutes about one-third of all jobs created nationwide — truly remarkable given recent headwinds!

    This phenomenal job creation contributed to Texas’ unemployment rate (4.6 percent) being at or below California’s rate (5.5 percent) for 121 straight months, or since July 2006. But the official unemployment rate only accounts for those actually looking for work, a better gauge of labor force health would be the share of the population employed, which has been higher in Texas than in California since at least 2000.

    More economic output and job creation over time in Texas has contributed to less poverty. The Bureau of Labor Statistics’ supplemental poverty measure, which accounts for the local cost of living, shows that Texas’ rate matches the national average while California has the nation’s highest poverty rate

    Income inequality has also been higher in California than in Texas for years. For example, the average of total income held by the top 10 percent of income earners from 2000 to 2012 was 49.9 percent in California compared with 48.8 percent in Texas.

    The results are pretty clear that California’s progressive policies of having the highest marginal personal income tax rate, cumbersome regulations, huge unfunded pension obligations, an out of control lawsuit environment, and other policies reduce economic opportunity.

    (Hat tip: Pension Tsunami.)

  • High earners are leaving blue states like California for red states like Texas:

    For generations, the Golden State developed a reputation as the ultimate destination of choice for millions of Americans. No longer. Since 2000 the state has lost 1.75 million net domestic migrants, according to Census Bureau estimates. And even amid an economic recovery, the pattern of outmigration continued in 2014, with a loss of 57,900 people and an attraction ratio of 88.5, placing the Golden State 13th from the bottom, well behind longtime people exporters Ohio, Indiana, Kentucky and Louisiana. California was a net loser of domestic migrants in all age categories.

    Snip.

    Much of the discussion about millennial migration tends to focus on high-cost, dense urban regions such as those that dominate New York, Massachusetts and, of course, California. Yet the IRS data tells us a very different story about migrants aged 26 to 34. Here it’s Texas in the lead, and by a wide margin, followed by Oregon, Colorado, Washington, Nevada, North Dakota, South Carolina, Maine, Florida and New Hampshire. Once again New York and Illinois stand out as the biggest losers in this age category.

    Perhaps more important for the immediate future may be the migration of people at the peak of their careers, those aged 35 to 54. These are also the age cohorts most likely to be raising children. The top four are the same in both cohorts. Among the 35 to 44 age group, it’s Texas, followed by Florida, South Carolina and North Dakota. Among the 45 to 54 cohort, Texas, followed by South Carolina, Florida and North Dakota.

  • California just raised your food costs.
  • And agricultural producers are not happy:

    The Governor signed this ag overtime bill in the same year that minimum wage legislation was also passed that will take California to the highest minimum wage as well as legislation forcing California to adopt additional greenhouse gas regulations for businesses in California.

    California is the only state in the country subject to such regulations. Today’s signing occurred despite numerous requests by the agricultural industry to meet with the Governor to discuss our concerns. The message is clear. California simply doesn’t care.

  • Ca;ifornia companies have a hard time attracting workers:
  • More than two-thirds (70 percent) of organizations in California indicated that they have had difficulty recruiting for full-time regular positions in the last 12 months, similar to 68 percent nationally.

  • California organizations were more likely than organizations nationally to report competition from other employers (56 percent), qualified candidates rejecting compensation packages (28 percent), qualified candidates not being able to move to their local area (21 percent), or a relocation or a relocation package not being competitive or not being offered (12 percent) as top reasons for hiring difficulty.
  • Why California can’t build more housing. “Labor unions—which ostensibly stand for working class interests—will not stand for new construction unless it is accompanied by carve-outs and cronyist regulations that artificially boost their compensation.” (Hat tip: Instapundit.)
  • Stop me if you’ve heard this one before: “California’s unfunded pension debts may be larger than acknowledged.” (Hat tip: Pension Tsunami.)
  • “The biggest problem faced by the State of California is not ‘climate change’ or ‘poverty it is the overreaching power of California government itself, namely the California Legislature and Administration, and the threats that this Democrat establishment poses to California’s future, particularly with regard to the economy and individual liberty. California Democrats are celebrating the passage of new climate change legislation that provides California government with broad, sweeping new powers to drastically curb greenhouse gas reductions without regard to economic impact or the basic rights of businesses and individuals.” (Hat tip: Pension Tsunami.)
  • Palo Alto decides that they hate, hate, hate that golden goose.
  • Maybe that’s why some observers are telling people “If You Own A Home In Palo Alto, CA; Sell It Now.” As the median price of homes has actually started dropping, though from admittedly already insane heights…
  • “Case Study: How Politicians Motivate Companies to Leave California.”
  • Orange County clerk took bribes to make charges disappear.
  • Corrupt Oakland police sentenced. There are all sorts of real winners in this story…
  • LAX Police Assistant Chief Resigns Amid Corruption Allegations.”
  • University of California hires India-based IT outsourcer, lays off tech workers. “The layoffs will happen at the end of February, but before the final day arrives the IT employees expect to train foreign replacements from India-based IT services firm HCL. The firm is working under a university contract valued at $50 million over five years.” This might be a good time to throw in a “How’s that $15 minimum wage working out for you, San Francisco,” but there’s another factor at work: “Joe Bengfort, the CIO for the UCSF campus, said the campus is facing ‘difficult circumstances’ because of declining reimbursement and the impact of the Affordable Healthcare Act, which has increased the volume of patients but limits reimbursement to around 55 cents on the dollar, he said.” So San Franciscans IT workers are losing their jobs thanks to ObamaCare.
  • “Texas has proven it’s possible to have both much lower crime and a lower rate of imprisonment. Indeed, Texas’ FBI index crime rate, which accounts for both violent crime and property crime, has fallen more sharply than it has nationally, posting a 29 percent drop from 2005 to 2014, the latest full year for which official data is available.”
  • “It turns out that the average property tax bill required to support BART’s proposed $3.5 billion bond measure on the November ballot could be as much as four times what the transit agency claimed…That’s because legal language in Measure RR allows BART to issue bonds at up to the state limit of 12 percent interest.” 12%? With 30 year U.S. Treasuries running under 2%? The fact they think they may have to go that high to attract investors suggests how worried bond traders are about the future of California’s economy…
  • Some are less than enthused about BART’s bond proposal:

    BART officials want voters to trust them with another $3.5 billion of taxpayer money. But they’ve done nothing to earn that trust.

    Instead, they have recklessly spent what they have, grossly understated how much their ballot proposal would raise property tax bills and devised plans to use money from the measure, intended for capital projects, to indirectly cover inflated labor costs.

    Voters in Alameda County, Contra Costa and San Francisco should say no — hell no. They should reject Measure RR on the Nov. 8 ballot.

    Despite the problems facing the transit agency, it makes no sense to approve five decades of extra taxes when Measure RR lacks a logical budget, a timeline for service improvements and provisions ensuring taxpayers and riders get what they’re promised.

    The measure would authorize the district to borrow $3.5 billion through bond sales as part of a larger plan to upgrade BART’s infrastructure. The ballot wording conveniently omits that the district would tax property owners for 48 years to pay off the debt.

    (Hat tip: Pension Tsunami.)

  • Speaking of California bonds: Proposition 53 explained.
  • California’s legislature passes extension of sexual assault statue of limitations mainly over Bill Cosby. Combine this with the trend of colleges redefining rape to “any sex a woman later regrets,” and suddenly the state has the ability to prosecute anyone who ever had sex in California…
  • Leprosy Scare in California Elementary School. “There are approximately 6,500 cases of leprosy in the United States, and 90 percent of the cases are immigrants from countries where leprosy is endemic.With the increase in illegal immigrants and refugees in recent years, diseases thought to be eradicated in this country — like tuberculosis, polio, measles and leprosy — have unfortunately reemerged in the United States.” (Hat tip: Ed Driscoll at Instapundit.)
  • Image Comics to move from Berkeley to Portland.
  • Cow Fart Regulations Approved By California’s Legislature.” No, not an Onion piece.
  • Follow-up: Pacific Sunwear exits bankruptcy.
  • Houston Jury Smacks SEIU With $5.3 Million Award

    Wednesday, September 7th, 2016

    Here’s a rare thing: A union actually being held accountable for breaking the law:

    A Harris County jury on Tuesday awarded a Houston commercial cleaning firm $5.3 million in damages, finding that a labor union’s aggressive organizing campaign went too far when it maligned the reputation of the company. It opens the door for more employers to sue unions over hardball tactics often used in membership drives and contract disputes.

    The jury, by a 10-2 vote, found for Professional Janitorial Service in a suit the company brought nine years ago against the Service Employees International Union, which targeted the company as part of its “Justice for Janitors” organizing campaign and wrongly claimed Professional Janitorial Service had violated wage, overtime and other labor laws.

    The case was the first time that a jury has found against a union in a business defamation or disparagement case, according to a search of legal records by the company’s law firm, AZA of Houston.

    “The jury found what PJS and its employees have known for more than a decade,” Brent Southwell, the company’s chief executive, said in a statement. “The SEIU is a corrupt organization that is rotten to its core.”

    Snip.

    The trial, which lasted four weeks, represented the first time the SEIU, which has nearly 2 million members nationwide, has had to defend its tactics in front to a jury. Other cases, including a federal racketeering lawsuit filed by the international food, maintenance and cleaning company Sodexo in 2011, were settled before they ever got before a jury.

    Empower Texans has more background on SEIU tactics:

    One of the tactics many unions use to access potential members is “salting,” and the SEIU is no exception. Salting is the tactic of sending a union-affiliate to a targeted employer to apply for, and then accept a position working for the company. Since unions are often prohibited from contacting employees at work, salts do it for them.

    Two of the salts used against PJS were Adriana Menchu and Eleanor Parada; both have been reoccurring figures during the SEIU trial.

    The union used Menchu’s name in various campaigns, lawsuits, and fliers. In one flier she was quoted saying, “They don’t give us gloves or masks to clean. I know a woman who brings her own cleaning supplies from home just so she can protect her health.” Which PJS refuted with their longstanding policy prohibiting the use of any outside cleaning agents unless supplied by the company.

    SEIU fliers claimed that PJS failed to pay Menchu for hours worked, but internal union emails contradicted that statement saying that PJS was trying to “buy” Menchu off by giving her a raise. More evidence that they knew the information they were releasing was false.

    One press release read, “Mostly immigrant janitors were instructed to work ‘off-the-clock’ and had pay withheld by the city’s largest locally-based cleaning company, Professional Janitorial Service (PJS), according to a new lawsuit filed today.”

    Never revealing that SEIU was the party behind the lawsuit, or that the union planted the “janitors” they were referring to.

    Parada was another salt frequently used in lawsuits, and was quoted in an SEIU press release about the unfair labor practice suit they filed saying, “We work hard, but PJS thinks they can treat us however they want…That’s why PJS janitors are taking a stand today – so we can have some basic protections.”

    It’s worth noting that until the SEIU came to Houston to unionize janitors PJS had never faced labor violation allegations, had not been investigated by the Department of Labor or National Labor Relations Board, and had not had unfair labor practice lawsuits filed against them. Also, out of the 20 ULPs the union filed against PJS, 19 were dismissed with the last being rectified by simply having the employer post safety signs in the workplace.

    Texas vs. California Update for August 30, 2016

    Tuesday, August 30th, 2016
  • A new ranking of Freedom in the 50 states is out. Texas ranked 28th (too low, IMHO) while California ranked 49th:
    • Texas:

      Texas’s fiscal policy is very good. It is a fiscally decentralized state, with local taxes at about 4.5 percent of personal income, above the national average, and state taxes at about 3.6 percent of income, well below the national average. However, Texans don’t have much choice of local government, with only 0.36 jurisdictions per 100 square miles. State and local debt is above average (with the biggest problem being local debt burdens), at 23.1 percent of income, but it has come down slightly since FY 2011. Government subsidies are below average. Public employment has fallen significantly below average, at 11.8 percent of private employment.

      Texas’s land-use freedom keeps housing prices down. It also has a regulatory taking compensation law, but it only applies to state government. The renewable portfolio standard has not been raised in years. Texas is our top state for labor-market freedom. Workers’ compensation coverage is optional for employers; most employees are covered, but not all. The state has a right-to-work law, no minimum wage, and a federally consistent anti-discrimination law. Cable and telecommunications have been liberalized. However, health insurance mandates were quite high as of 2010, the last available date. The extent of occupational licensing is high, but the state recently enacted a sunrise review requirement for new licensure proposals. Time will tell whether it is at all effective. Nurse practitioners enjoy no freedom of independent practice at all. Texas has few cronyist entry and price regulations, but it does have a price-gouging law, and Tesla’s direct sales model is still illegal. The civil liability system used to be terrible, but now it is merely below average. The state abolished joint and several liability in 2003, but it could do more to cap punitive damages and end parties’ role in judicial elections.

    • California:

      Although it has long been significantly freer on personal issues than the national average, California has also long been one of the lowest-scoring states on economic freedom.

      Despite Proposition 13, California is one of the highest-taxed states in the country. Excluding severance and motor fuel taxes, California’s combined state and local tax collections were 10.8 percent of personal income. Moreover, because of the infamous Serrano decision on school funding, California is a fiscally centralized state. Local taxes are about average nationally, while state taxes are well above average. Government debt is high, at 22.8 percent of personal income. The state subsidizes business at a high rate (0.16 percent of the state economy). However, government employment is lower than the national average.

      Regulatory policy is even more of a problem for the state than fiscal policy. California is one of the worst states on land-use freedom. Some cities have rent control, new housing supply is tightly restricted in the coastal areas, and eminent domain reform has been nugatory. Labor law is anti-employment, with no right-to-work law, high minimum wages, strict workers’ comp mandates, mandated short-term disability insurance, and a stricter-than-federal anti-discrimination law. Occupational licensing is extensive and strict, especially in construction trades. It is tied for worst in nursing practice freedom. The state’s mandatory cancer labeling law (Proposition 65) has significant economic costs. It is one of the worst states for consumer freedom of choice in homeowner’s and automobile insurance.

    (Hat tip: Pension Tsunami.)

  • Texas tops yet another list as the best place to work and live.
  • “This notion of California as a land of outsiders is being turned on its head, our state’s dream repackaged – often with the approval of its ruling hegemons – as something more like a medieval city, expelling the poor and the young, while keeping the state’s blessings to the well-educated, well-heeled and generally older population”:

    California has been bleeding people to other states for more than two decades. Even after the state’s “comeback,” net domestic out-migration since 2010 has exceeded 250,000. Moreover, the latest Internal Revenue Service migration data, for 2013-2014, does not support the view that those who leave are so dominated by the flight of younger and poorer people.

    Of course, younger people tend to move more than older people, and people seeking better job opportunities are more likely to move than those who have made it. But, according to the IRS, nearly 60,000 more Californians left the state than moved in between 2013 and 2014. In each of the seven income categories and each of the five age categories, the IRS found that California lost net domestic migrants.

    Nor, viewed over the long term, is California getting smarter than its rivals. Since 2000, California’s cache of 25- to 34-year-olds with college, postgraduate and professional degrees grew by 36 percent, below the national average of 42 percent, and Texas’ 47 percent. If we look at metropolitan regions, the growth of 25- to 34-year-olds with college degrees since 2000 has been more than 1.5 to nearly 3 times as fast in Houston and Austin as in Silicon Valley, Los Angeles, or San Francisco. Even New York, with its high costs, is doing better.

    (Hat tip: Instapundit, who also notes “I remember talking to the Investor’s Business Daily folks a few years ago — they were headquartered in Marina Del Rey, a lovely place but one where they were constantly visited by inspectors, tax people, etc., all posing problems. When they opened an office in Texas, the state and local government people were all ‘tell us if we can help you.’ Very different experience.”)

  • “IRS Data: More Americans are relocating to Texas.” Though why an article datelined El Paso, and quoting only El Paso experts, uses a photo of Austin’s skyline to illustrate the story is a mystery…
  • The California Teacher’s Association: the worst union in America:

    Seen as a national leader in the classroom during the 1950s and 1960s, the country’s largest state is today a laggard, competing with the likes of Mississippi and Washington, D.C., at the bottom of national rankings. The Golden State’s education tailspin has been blamed on everything from class sizes to the property-tax restrictions enforced by Proposition 13 to an influx of Spanish-speaking students. But no portrait of the system’s downfall would be complete without a depiction of the CTA, a political behemoth that blocks meaningful education reform, protects failing and even criminal educators, and inflates teacher pay and benefits to unsustainable levels.

    Also this:

    According to figures from the California Fair Political Practices Commission (a public institution) in 2010, the CTA had spent more than $210 million over the previous decade on political campaigning—more than any other donor in the state. In fact, the CTA outspent the pharmaceutical industry, the oil industry, and the tobacco industry combined.

  • California state appeals court rules unanimously that, yes, public employee pension benefits can indeed be reduced. (Hat tip: Pension Tsunami.)
  • The court giveth, the court taketh away, as the Vergara lawsuit ends with a whimper, meaning teachers unions can screw poor kids in California for the immediate future.
  • Meanwhile, California’s Democrat-controlled legislature passes a bill to get their fingers on private retirement funds create a plan to create a pension for private employee who don’t have one. (Hat tip: Pension Tsunami.)
  • No, it’s just to create more opportunities for graft through taxation. (Hat tip: Pension Tsunami.)
  • California’s cap-and-trade program is a colossal failure, and it may take the high speed rail boondoggle down with it:

    California concluded its most recent cap-and-trade program auction last week. Out of 44,268,323 metric tons of carbon dioxide credits offered for sale by the state Air Resources Board, only 660,560 were sold, 1.5 percent of the total, raising a paltry $8.4 million out of a hoped-for $620 million. Last May’s auction was almost as bad, raising $10 million out of an anticipated $500 million.

    California’s carbon dioxide cap-and-trade auction program was expected to bring in more than $2 billion in the current fiscal year that ends June 30, 2017, a quarter of which is earmarked for the high-speed rail project narrowly approved by voters in a 2008 ballot initiative. As a hedge against uncertainty, a $500 million reserve was built into the cap-and-trade budget. But, with the August auction falling 98.5 percent short, the entire reserve was consumed in the first of four auctions for the fiscal year.

    It gets better:

    In the meantime, the High-Speed Rail project, currently promised to cost “only” $68 billion to run from the Bay Area some 400 miles south to Los Angeles may be looking at $50 billion in overruns. To fund the costly train, which was sold to voters as not costing a dime in new taxes, the expected revenue stream from cap-and-trade has been securitized, putting the state on the hook to Wall Street for billions in construction money advanced on the promise of future cap-and-trade revenue.

  • California spends $1.5 billion for Chinook salmon.
  • The corrupt city of Maywood, California hired an engineering firm whose employees were so hard-working they put in 27 hour days.
  • The collapse of high-end California wine merchant Premier Cru, a $45 million wine Ponzi scheme.
  • Three skilled nursing facilities in Humboldt County, California to close because they can’t find enough nurses. Humboldt County is up on the Northern California coast.
  • The Inland Empire in Southern California, still reeling from its foreclosure crisis, saw the biggest jump in income inequality in the state at more than 40 percent. (Hat tip: Instapundit.)
  • Toastmasters International to move from Orange County, California to Colorado.
  • And least you think Texas is complete immune from pension worries, the Employees Retirement System of Texas is set to run out of money as well…in 2063. (Hat tip: Pension Tsunami.)
  • If California farmland overvalued?
  • California judge faces recall over being being too lenient to a sex offender. If the recall succeeds, liberals may very well regret setting this precedent…
  • California Governor Jerry Brown may push “green” initiatives, but he’s more than happy to take money for doing regulatory favors for Chevron and Occidental Petroleum. (Hat tip: Director Blue.)
  • From 2010: California’s abandoned wind farms.
  • LinkSwarm for August 12, 2016

    Friday, August 12th, 2016

    Welcome to another Friday LinkSwarm! Here in Texas it’s been hitting 104°F during the day. That’s bad enough, but worse is trying to walk your dog at night when it’s still 93° with no wind.

  • Hillary’s lead over Trump isn’t quite as wide as Dukkakis’ lead over Bush.
  • Trump raised $80 million in July.
  • DNC email hack a whole lot bigger than previously thought.
  • ObamaCare premiums set to explode again in 2017.
  • Ace of Spades HQ contends we’re in this mess because the GOP establishment is secretly all-in on illegal alien amnesty and think the base is racist for opposing their Olympian insight, but has steadfastly refused to tell voters what they actually think:

    The Establishment and establishment-aligned commentators are guilty of the Yeah Yeah Evasion I spoke of above with respect to amnesty.

    Oh, sure, in 2014, they’ll run on a super-border-hawk national platform, and vow to oppose, unto their dying breath, Obama’s executive amnesties.

    And sure, they’ll trot out a field of 17 candidates, fifteen of whom who have been coached to give the corporate/donor class evasive answer on the border.

    Snip.

    Now, the Trumpkins come along — I’ll use the Establishment’s slur for them — and the Trumpkins believe that it is standard GOP doctrine that we should have a border wall and be tough on border security, up to and including deportations.

    They think there’s broad support for this in the party. They don’t think this position is controversial — they think it’s just a base plank of the platform.

    Gee — I wonder where they could have gotten that idea, Establishment, huh?

    I guess those stupid Trumpkins did something crazy — the believed the lies pouring out of your mouths every election eve.

    So once again we have a political calamity brewing– the Establishment types, the college educated set who has no fear of being displaced by a cheaper foreign worker, misled the white working class into thinking they agreed with them on immigration, while secretly — silently — holding the opinion that anything short of open borders was kinda-sorta (or definitely) racist.

  • Rahm Emmanuel steals from the poor (Chicago utility users) to give to the rich (union pension funds). (Hat tip: Director Blue.)
  • New Jersey teacher’s union wants to write its pension gravy train into the state constitution, vows revenge on Democrat who blocked it.
  • Rotherham is still a center for Muslim child rape gangs. (Hat tip: Ace of Spades HQ.)
  • Alumni have started to decide that if college administrators insist on preemptively surrendering to Social Justice Warriors, then their donations can go elsewhere. (Hat tip: Hot Air.)
  • “State Sen. Judith Zaffirini and her associates have agreed to pay roughly $38 million to settle a lawsuit in which they were accused of seizing control of a massive real estate inheritance for their own enrichment. The Laredo Democrat still has a chance to get richer. She and her crew will walk away owning 444 acres of prime Laredo real estate that nobody bequeathed to them. They’ll need to continue developing the land to come up with the $38 million, but everything they clear above that will be profit. That’s not including, of course, the millions that the Zaffirini crew has already paid itself in legal and management fees out of the inheritance, including roughly $1.5 million paid to Carlos Zaffirini’s law firm.”
  • My friend Karl Rehn’s study on just what the best aiming system (red dot vs. laser vs. iron sights) gets a nice writeup by Massad Ayoob. (Hat tip: Stuff from Hsoi.)
  • Title IX is killing men’s teams at historically black colleges and universities.
  • British MPs facing a booze ban due to having to move to a Muslim-owned building while Westminster is refurbished (Hat tip: Ace of Spades HQ.)
  • Hungary says no to more “Syrian refugees.” EU to shove more of them down Hungary’s throat, because joining the EU means signing your national sovereignty away
  • Wal-Mart acquires Jet.com (which is an online retailer, not an airline).
  • Facebook to users using Adblock: “Shut up and eat some ads.
  • “Fisking the Latest Diversity in Sci-Fi Freak Out.”
  • Buy your own Sherman Tank. (Hat tip: Dwight.)
  • “It’s ridiculous for anyone to worry that the new Ghostbusters will ruin their childhoods retroactively. We should worry about this piece of shit ruining childhoods in real time.”‘
  • Heh. The Ghostbusters reboot to gross “almost exactly $.78 for every $1 the first one earned.”
  • In another sign of 2016’s impending apocalypse, corpse flowers are blooming across America.
  • Crime scene dioramas. Or, as the creator calls them, “dieoramas.” (More here.)
  • Cat-like typing detected.
  • Texas vs. California Update for August 10, 2016

    Wednesday, August 10th, 2016

    Time for another Texas vs. California roundup:

  • How California screwed itself:

    Then-Gov. Gray Davis and the Legislature had quietly, virtually without notice, decreed a massive, retroactive increase in state employee pension benefits, which was quickly emulated by hundreds of local governments.

    At the time, CalPERS was ringing up big earnings from the 1990s’ bullish stock market — so big that it had reduced contributions from member governments to near zero. Public employee unions hankered for a share of the bounty and pressed for a benefit increase.

    The CalPERS board, dominated by public employees and union-friendly politicians, sponsored the increase, Senate Bill 400, with assurances that it would cost taxpayers nothing. A state Senate analysis of the bill said CalPERS “believes they will be able to mitigate this cost increase through continued excess returns of the CalPERS trust.”

    Years later, it emerged that the assurances reflected the most optimistic of several scenarios developed by the CalPERS staff. More pessimistic scenarios were kept secret — but they were the ones that came true. By the time Seeling delivered his dark appraisal in 2009, the state was being hammered by an ultra-severe recession, and the CalPERS trust fund was losing what turned out to be nearly $100 billion in value.

    Seven years later, CalPERS and other pension funds still haven’t fully recovered, and they’re sharply raising mandatory “contributions” from state and local governments to cover the gaps left by meager investment earnings.

    (Hat tip: Pension Tsunami.)

  • California is deluding itself if it thinks it’s “turned to corner” and is on the path for sustainable growth:

    Between 2000 and 2015, Austin has increased its jobs by 50 percent, while Raleigh, Houston, San Antonio, Dallas, Nashville, Orlando, Charlotte, Phoenix and Salt Lake City – all in lower-tax, regulation-light states – have seen job growth of 24 percent or above. In contrast, since 2000, Los Angeles and San Francisco expanded jobs by barely 10 percent. San Jose, the home of Silicon Valley, has seen only a 6 percent expansion over that period.

    Obviously this runs counter to the notion of California being business friendly, since the ratio of jobs to workers is lower here than in Texas and the rest of the United States, and sometimes a lot lower.

    Snip.

    Gov. Brown has achieved bragging rights by suggestions of a vaunted return to fiscal health. True, California’s short-term budgetary issues have been somewhat relieved, largely due to soaring capital gains from the tech and high-end real estate booms. But the state inevitably will face a soaring deficit as those booms slow down. Brown is already forecasting budget deficits as high as $4 billion by the time he leaves office in 2019. As a recent Mercatus Center study notes, California is among the states most deeply dependent on debt.

    The state’s current budget surplus is entirely due to a temporary tax and booming asset markets. The top 1 percent of earners generates almost half of California’s income tax revenue, and accounts for 41 percent of the state’s general fund budget. These affluent people have incomes that are much more closely correlated to asset prices than economic activity, and asset prices are more volatile than economic activity generally. Brown’s own Department of Finance predicts that a recession of “average magnitude” would cut revenue by $55 billion.

    More critically, the state continues to increase spending, particularly on pensions. Outlays have grown dramatically since the 2011-2012 fiscal year, averaging 7.8 percent growth per year through FY 2015-2016. Seeing the writing on the wall, the state’s labor leaders now want to extend the “temporary” income tax, imposed in 2012, until 2030. This might not do much to spark growth, particularly in a weaker economy.

    During this recovery, California has made minimal effort to eliminate the state’s budget fragility. To use a recently popular term, this is gross negligence. It is, thus, no surprise that credit ratings agency Moody’s Investors Service ranked California second from the bottom in being able to withstand the next recession. Someday the bills will come due.

  • More on California’s business climate vs. Texas:

    Note that across the entire decade the unemployment rate in California was consistently greater than that in the United States, averaging 1.5 percentage points greater overall and maxing out at 2.9 percentage points in January and February of 2011. Except for the first six months of 2006, the same story holds true for California and Texas, although the differences here are more pronounced: an average of 2.5 percentage points greater and a maximum difference of 4.2 percentage points at various points in 2009 and 2010. Also note how long double-digit unemployment persisted in California (43 months) during this decade compared to the United States (1 month) and Texas (0 months).

    Also: “Texas outperformed California in 9 of the 10 years. And Texas had a CAGR of 3.1 percent, meaning its economy grew at more than twice the pace of California’s each year.” (Hat tip: Pension Tsunami.)

  • Texas’ economic, labor Market, and fiscal situation. “The Texas model leads comparable states and U.S> averages in most measures.”
  • “CalPERS has not met its expected 7.5% rate of return for the last 20 years.” (Hat tip: Ace of Spades HQ.)
  • Things in Texas are very different than they were in the 1980s:

    This is what Krugman and others really get wrong about the Texas miracle.

    The state had its last major recession from 1986 to 1987, after oil prices collapsed and the real estate and financial sectors crashed. Back then, the mining sector, dominated by oil and gas activity, was directly related to about 21 percent of the real private economy and roughly 5 percent of the labor force. Today, mining is 15 percent of the real private economy and less than half of the labor force share. As a result, the combination of more economic diversification and pro-growth policies has produced a much more resilient economy. Texas in 2016 looks a lot different than Texas in 1987.

  • “A major impediment to economic growth and a factor chasing people and businesses away from California is the state’s high tax rates and poorly structured tax code. California levies the highest top marginal income tax rate in the nation at 13.3% and has the country’s 6th highest overall tax burden. Such a hostile tax climate has consequences. During the last decade, from 2000 to 2010, California had a net outmigration of over 1.2 million residents move to other states. Those former Californians took over $29 billion in income with them.”

    Residents of San Diego, Newport Beach, Los Angeles, San Francisco, and many other cities and towns across California enjoy beautiful scenery and enviably pleasant weather year round; while folks in Dallas, San Antonio, Austin, and Houston ride out their hot and humid summers by staying indoors as much as possible. Yet Texas has been the number one recipient of California refugees. While the physical climates found in states that are the top recipients of California refugees don’t hold a candle to the Golden State’s, the business tax climates are far more hospitable.

    California imposes the nation’s highest income tax, while Texas is one of nine states with no income tax. While Texas has the 10th best business tax climate in the nation, according to the non-partisan Tax Foundation, California has the country’s third worst. During the last decade, over 225,000 people moved from California to Texas, bringing over $4.4 billion in income with them to the Lone Star State. After Texas, Nevada is the number two recipient of ex-Californians. Like Texas, Nevada can’t compete with California’s natural beauty and climate, but the Silver State makes up for it by having no state income tax and the nation’s 5th best business tax climate.

    (Hat tip: Pension Tsunami.)

  • The deregulated energy market is still working to lower costs for Texans.
  • California’s Democrat-dominated local governments are riddled with nepotism in their hiring practices. In San Diego, “Investigators uncovered an employee vetting process they allege was ‘abused’ — so that in a third of the cases reviewed, ‘friends and family members’ of city staff were hired ‘to the detriment of public job applicants.’” (Hat tip: Pension Tsunami.)
  • Liberal complains about how San Francisco’s progressive policies killed affordable housing. “Instead of forming a pro-growth coalition with business and labor, most of the San Francisco Left made an enduring alliance with home-owning NIMBYs. It became one of the peculiar features of San Francisco that exclusionary housing politics got labeled “progressive.” Do note this piece is from a year ago. (Hat tip: Instapundit.)
  • Speaking of San Francisco, three of the city’s supervisors have decided that he would like to take the goose that laid the golden egg (i.e., the city’s high tech employers), smother it with locally source rosemary, thyme and organic butter, and broil it at 450° in the form of a payroll tax for those companies that earn $1 million or more in gross receipts.
  • “In 2014 there were 142,417 housing starts in the city of Tokyo (population 13.3m, no empty land), more than the 83,657 housing permits issued in the state of California (population 38.7m).” (Hat tip: Instapundit.)
  • “California To Proclaim August “Muslim Appreciation And Awareness Month.” So when do we get Christian Appreciation Month?
  • “Relocation of Highway 99 in Fresno, a key part of the bullet train project, is over budget, behind schedule and will cost millions of dollars more to complete.” (Hat tip: Cal Watchdog.)
  • DAE Systems is relocating its headquarters to Catawba County and intends to create 46 new jobs and invest $6.8 million during the next three years, Gov. Pat McCrory’s office announced Monday. The California-based company, which is moving to Claremont, will receive a grant of up to $110,000 from the One North Carolina Fund that is dependent on the company meeting job-creation goals.”
  • Nothing says “adult oversight” quite like playing strip poker with teenage camp counselors. Take a bow, Stockton Mayor Anthony Silva! (Hat tip: Dwight, who also notes that Silva is a member of the criminal-ridden “Mayors Against illegal Guns.”)
  • Noted for the record: Mayor Silva comes up twice at the very top of Stockton real estate developer Dan Cort’s Facebook page. (Previously.)
  • 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.)
  • LinkSwarm for July 15, 2016

    Friday, July 15th, 2016

    Enjoy a Friday LinkSwarm, including some recent big stories:

  • Truck plows into Bastille Day celebration in Nice, France, killing at least 84, including a father and his 10 year old son from Lakeway.
  • The murder is evidently a Muslim from Tunisia. And his name is evidently Mohamed Lahouaiej Bouhlel. Try to contain your shock.
  • The Permanent Court of Arbitration in The Hague rules against China in the South China Seas dispute. Whether China heeds the ruling is another question…
  • Another day, another Democratic congresscritter indicted. “Corrine Brown, the House rep from the 5th District of Florida, was indicted (along with Ronnie Simmons, her chief of staff) on federal charges of mail and wire fraud.”
  • Donald Trump and Hillary Clinton are neck and neck in swing states.
  • “The U.S. State Department funneled tax dollars to a group that worked to oust Israeli Prime Minister Benjamin Netanyahu, according to a Senate report released Tuesday.”
  • Another ObamaCare exchange shuts down, this time in Illinois.
  • And six of the seven remaining exchanges are in trouble.
  • Philadelphia airport workers to go on strike during the Democratic National Convention.
  • Houston City Councilman calls for segregation in police shifts. Next up: Their own drinking fountains… (Hat tip: Director Blue.)
  • Previously deported illegal alien sentenced to life in prison for murder in Laredo.
  • Following in the footsteps of Annise Parker, Austin City Council wants to silence opponents who speak out on politics.
  • The left’s war on police. (Hat tip: Ed Driscoll at Instapundit.)
  • El Paso police chief Greg Allen calls Black Lives Matter “a radical hate group.”
  • University of Texas to return athletic ticket sales to a group previously proven to be corrupt.
  • Ghostbusters reboot toys already on clearance before the movie’s opening.
  • Strippers, arson and a potato. (Hat tip: Dwight.)
  • Understatement of the Year Award:

    An inspection of the truck’s cargo revealed 169 bundles of marijuana with an estimated weight of 3,996 lbs. were on board.

    The estimated street value of the marijuana is between $1.6 million and $1.9 million. Perez was charged with Trafficking Marijuana in the Superior Court of DeKalb County, Georgia.

    Doraville Police say they are “pretty confident this would exceed personal use.”

    (Hat tip: Ace of Spades HQ.

  • How Hillary Loses to Donald Trump

    Tuesday, May 31st, 2016

    For those still on the “Oh God, Hillary is going to slaughter Trump” express, now might be a good time to start making your way to the exits.

    David S. Bernstein lays out four ways Hillary can lose. Fortunately for Trump, she seems to be managing them all:

  • “Step 1: Take Hispanic enthusiasm for granted.” Trump needs only for Hispanic voting to return to 2008 levels to win in Florida.
  • “Step 2: Alienate the young.” You can’t assume all those young Bernie Sanders voters who are seeing Clinton shamelessly cheat her way to the nomination are going to magically put aside their bitterness and vote for Granny Crooked McCankles.
  • “Step 3: Let establishment Republicans find another place to go.” Not sure about this one, as I see #NeverTrump as more an online/insider issue than one that could deliver significant numbers of disgruntled Republican voters to Hillary.
  • “Step 4: Fumble on trade.” Never mind that protectionism is loser economics, Hillary’s been on every side of just about every trade agreement, and her vital union allies are more than a little tired of it.

    It’s not hard to see how quickly this could start costing her Electoral College votes in the Rust Belt, where Trump hopes to improve on past Republican performance. (And where, you may remember, Clinton had to apologize for threatening to put coal companies out of business.) In Ohio, for example, 22 percent of 2012 voters came from union households, and 60 percent of them voted for Obama. In Wisconsin, a similar share of the electorate voted 2-to-1 for Obama over Romney. In 2016, both states went for Sanders over Clinton in their primaries. In Pennsylvania, where Trump is planning a major effort, union households provided Obama more than half his net margin.

  • Read the whole thing.

    Missing from the analysis: The dead certainty that Hillary will not do as well among black voters as Obama did. But that’s an analysis for another day…

    (Hat tip: Stephen Green at Instapundit.)

    LinkSwarm for April 22, 2016

    Friday, April 22nd, 2016

    As today is a made-up celebration called “Earth Day,” be sure to have beef for dinner…

  • Reminder: “Officials at VA’s Phoenix hospital manipulated wait-time data to make it appear they were connecting doctors and veterans seeking appointments much faster than they actually were. This was done so VA managers at the Arizona facility could keep getting generous performance bonuses. They got their bonuses but dozens of waiting veterans died.” So how did the VA address the problem? They hired someone accused of doing the exact same thing at another hospital.
  • Huge ObamaCare premium hikes are coming down the pike in 2017. (Hat tip: Ace of Spades HQ.)
  • “The largest health insurer in the U.S. has started pulling out of select Obamacare exchanges.” (Hat tip: Instapundit.)
  • Eight more ObamaCare co-ops are about to bite the dust.
  • Meanwhile, ObamaCare is helping enourage opioid addiction.
  • Thanks to Obama’s supergenius management, the Taliban are now winning in Afghanistan.
  • “The National Labor Relations Board suspended a top-ranking Philadelphia official after receiving complaints that he helped raise money from unions for his pro-union charity.” (Hat tip: Ace of Spades HQ.)
  • Following a congressional subpoena over Benghazi, Hillary’s state department staff hid requested files in another department. (Hat tip: Ace of Spades HQ.)
  • Is Rhode Island closing 66% of polling places for next week’s presidential primaries? Something smells.
  • How Ted Cruz could beat Hillary Clinton. “Clin­ton is en­ter­ing the gen­er­al elec­tion with glar­ing vul­ner­ab­il­it­ies of her own. Her im­age is tox­ic to Re­pub­lic­ans and in­de­pend­ents, and her pop­ular­ity among Demo­crats is now at an all-time low as a pres­id­en­tial can­did­ate, ac­cord­ing to Gal­lup’s polling. It won’t take a top-tier Re­pub­lic­an can­did­ate to win.” Also: “Cruz con­sist­ently runs far more com­pet­it­ively against Clin­ton than Trump does.”
  • “It’s not just Wall Street banks. Most companies and groups that paid Democratic presidential candidate Hillary Clinton to speak between 2013 and 2015 have lobbied federal agencies in recent years, and more than one-third are government contractors, an Associated Press review has found. Their interests are sprawling and would follow Clinton to the White House should she win election this fall.”
  • Donald Trump jumps on the social justice warrior tranny bathroom bandwagon.
  • Evidently accused pedophile Terry Bean is the one whose organizations are pushing tranny bathroom bills down America’s throats. (Hat tip: Director Blue.)
  • Trump convention manager Paul Manafort engages in the time-honored traditional rhetorical device know as “lying your ass off.”
  • Thomas Sowell on campaign lies and dodgy statistics.
  • “Although our panel’s original estimates had Trump finishing with 1,175 pledged delegates, my revised deterministic projections have him at 1,155, and the probabilistic version has him at 1,159.”
  • Ted Cruz has done heavy organizing in California.
  • Man indicted for selling school supplies to Detroit schools he didn’t actually deliver…with the connivance of several principles receiving kickbacks. Now, remind me: Which party has controlled Detroit for half a century?
  • Venezuela instituting four hours of blackouts a day, in addition to the previously mentioned three day weekends. That socialist paradise just keeps
  • Brazil impeaches their President.
  • Won’t someone please think of poor, penniless Boeing?
  • When low-fat dogma trumped science: hamburger study data showed exacpt opposite of study’s conclusions.
  • Navy chief starving Marine air corps.
  • What Women Really Want Is The Patriarchy.”
  • ‘White Privilege’ Is a Racial Slur.”
  • Walden is less a cornerstone work of environmental literature than the original cabin porn: a fantasy about rustic life divorced from the reality of living in the woods, and, especially, a fantasy about escaping the entanglements and responsibilities of living among other people.”
  • Mexico’s Popocatepetl volcano erupts. Popocatepetl is less than 50 miles from Mexico City…
  • Goldman Sachs pays $5 billion fine to “settle claims that it misled mortgage bond investors during the financial crisis.” (Hat tip: Ace of Spades HQ.)
  • Pratt & Whitney pushing a B-52 engine upgrade.
  • The woman who can’t remember her own past. (Hat tip: Bill Crider.)
  • Lileks: “Who wouldn’t want to lounge around in a set from a 1970s failed Gene Roddenberry pilot?” (Hat tip: Ed Driscoll at Instapundit.)
  • Son, that’s no way to treat steaks. (Hat tip: Ace of Spades HQ.)
  • 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…