Posts Tagged ‘California’
Tuesday, June 3rd, 2014
Lots of news on the Texas vs. California front. An audit turns up $31 billion in California budget mistakes, Democrats hike the minimum wage there, Jerry Brown tries to do something about the growing CalSTARS pension deficit, and people and businesses continue to depart the “Golden State” for Texas…
You know how Democrats were crowing that California had a budget surplus? Forget about it:
The California Bureau of State Audits set off a scandal on June 1st by disclosing that the State Controller’s Office made accounting misstatements amounting to $31.65 billion. The timing of the announcement may be devastating to the Democrats who expected to use their super-majority to pass billions of dollars in increased spending, but may now find the net effects of the accounting restatements are a $7 billion General Fund deficit.
Snip.
As the former Treasurer of Orange County, California it is my preliminary judgment that under state law the negative $7.847 billion impact from overstating general fund assets and revenues and overstating deferred tax revenues may create an “on-budget” deficit to the state’s $96.3 billion “General Fund Budget.”
From the same audit: “There was a deferred tax-revenue figure posted as $6.2 billion when it was actually $6.2 million.”
California Senate votes to hike minimum wage to $13 an hour. It’s like they want to export ALL their jobs to Texas.
Wealth continues to move from high tax states to low tax states. “The nine states without a personal income tax gained $146 billion in new wealth while the nine states with the highest income tax rates lost $107 billion.”
Union-dominated states are sinking further into economic stagnation as Democratic politicians increasingly dominate the local political climate. In 2012, California Democrats won a supermajority in both houses of the legislature and proceeded to accelerate a tax and spending spree that has been ongoing for two decades. For example, California now has the nation’s top state income-tax rate, at 13.3 percent.
Those kind of policies have consequences. The Manhattan Institute released a report in 2012 that found that since 1990, California had lost nearly 3.4 million residents to other states with lower tax rates.
Snip.
The U.S. is swiftly becoming a tale of two nations. States that are following the Reagan model of low taxes and incentives are booming while states that are opting for the Obama model of wealth redistribution and European welfare-state economics are stagnating.
Texas’ unemployment rate “has now been equal to or below the national average since January 2007 and below California’s rate—4th highest in the nation—for 93 consecutive months.”
A look at how many more billions per year California taxpayers will be coughing up for the inevitable CalSTARS bailout.
“Alameda Unified’s pension costs could nearly triple and those of its teachers could rise by 25 percent under Governor Jerry Brown’s proposal to reform the California State Teachers Retirement System.”
But even though its a step in the right direction, Brown’s proposals stretch out installments so far that they’re still not fiscally responsible. “Even with the higher rates, the debt would continue to grow until 2026. That’s because the amortization over 32 years means the payments would essentially not even cover the interest costs for the first 12.”
And the assumptions behind the repayment schedule sound like fantasy: “The state still faces a huge unfunded liability in the teachers’ pension fund—the governor’s proposal would increase employee’s contributions by 3 percent and increase school district’s by nearly 2 ½ times and it would still take 30 years to close the gap with a generously estimated 7.5 percent annual return.”
Judge rules CalPERS can be sued for mishandling a long-term insurance program.
Thanks to various legal rulings, there will be more felons on California streets. “Release on parole continues a steady climb in California. In just the past five years, over twice as many convicts serving life sentences have been paroled than in the last two decades combined.”
Cargo aviation firm Ameriflight is relocating from Burbank to Dallas/Ft. Worth.
Sony Pictures Imageworks visual effects house is relocating to Canada.
Tesla narrows down list of possible factory locations to Arizona, Nevada, New Mexico and Texas. Not on the list: His home state of California. “The winning state will need to have all the necessary permits approved by the time Tesla plans to break ground next month. With the onerous requirements of the California Environmental Protection Act (CEQA) and other environmental regulations, Tesla would be lucky to break ground by 2017 – when its battery factory is scheduled to open.”
New effort to bring California’s underfunded health liabilities onto the books. “Legislation in the early 1990s created an investment fund for California state worker retiree health care, but lawmakers never put money in the fund.”
Remember the FBI agent who shot and killed a suspect connected with the Boston marathon bombing? Turns out he receives $50,000 a year in disability pay from the Oakland Police Department. And he’s been getting that since 2004, when he retired at age 31. “59% of Oakland Police Department retirees have received disability retirements.” (Hat tip: Pension Tsunami.)
Why people are moving to Texas:
As a growing number of Americans choose to call Texas home, it is critical that policymakers not lose sight of the reasons why: low taxes, limited government, and personal responsibility. Liberty is popular. That’s a message that needs reinforcement, particularly at the local level where some of the macro level trends involving taxes, spending, and debt are moving in the wrong direction. We can keep Texas and our cities beacons of prosperity and flourishing — but to do that, we must understand the principles that got us here, and defend them in policy and the public square.
Some California cities have hidden taxes just to fund government worker pensions. (Hat tip: Pension Tsunami.)
Lawsuit over California teacher’s union seniority rules to go to trial.
Jerry Brown may let California commit more Kelo-like eminent domain abuses.
Sriracha followup: The Irwindale City Council voted Wednesday night to drop its declaration that the hot sauce plant was a public nuisance.
Just so I’m not accused of glossing over the occasional bit of bad Texas economic news, Motorola Mobility (which is owned by Google) is closing their Texas smartphone assembly plant. But I think this says more about Motorola Mobility’s viability in a smart phone market dominated by Apple and Samsung than about Texas’ economy…
Tags:Ameriflight, Budget, California, CalPERs, CalSTARS, Crime, Democrats, Economics, pension crisis, Sony Pictures Imageworks, Sriracha, Tesla Motors, Texas, unions
Posted in Budget, Crime, Democrats, Economics, Texas, unions, Welfare State | 1 Comment »
Wednesday, May 14th, 2014
Time for another Texas vs. California roundup:
Chief Executive ranks the states for business friendliness. Once again, Texas is ranked the best state for doing business in. And once again, California is ranked the worst.
“Texas is the best state for business and I don’t see anything to slow TX down. The education and quality of eligible employees is excellent right now. Business is booming and growing quicker and more rapidly in 2014 than any other year. It’s an exciting time in Texas.”
“California goes out of its way to be anti-business and particularly where one might put manufacturing and/or distribution operations.”
“California continues to lead in disincentives for growth businesses to stay.”
“California’s attitude toward business makes you question why anyone would build a business there.”
“California could hardly do more to discourage business if that was the goal. The regulatory, tax and political environment are crushing.”
California Governor Jerry Brown unveils a budget that takes baby steps toward actual pension and budget reform. Naturally Brown’s fellow Democrats in the state legislature are fighting him every step of the way.
Texas vs. California? Try Houston vs. California:
California state rep thinks the minimum wage in the state should be $26 an hour. I agree, especially if they call it the “Let’s Drive All Remaining Business to Texas Act”…
When he was a San Diego City Councilman, California Democrat Congressman Scott Peters not only underfunded the city’s pension plan while hiking benefits, he indemnified the pension board for doing so.
More on Peters, via an attack ad:
“A new analysis of California’s independent public retirement systems suggests they are more woefully underfunded than they appear, and that Los Angeles County is among the worst of all.”
Bankrupt Stockton’s last remaining big creditor refuses to take 1¢ on the dollar for debts the city owes. (Remember: State pension fund CalPERS didn’t take any haircut at all.)
In bankrupt San Bernardino, talks between the city and CalPERS are making the federal judge overseeing the case impatient.
Chuck DeVore on why Texans trust their state government more than most:
Then factors that appear to explain from 13 percent to 30 percent of the differences in trust among the states: rate of union membership,with more trust in states with lower union membership; state’s level of soft tyranny, a measure of the power of state government over its people; percentage of state and local taxes as a share of income, with lower taxes leading to more trust; the right to keep and bear arms, with citizens trusting a government that trusts them to defend themselves; a business-friendly lawsuit climate; the days the legislature is in session, with less trust as the legislature approaches full-time; and the average commute time, with less time spent in traffic leading to more trust.
Lastly, a combination of from two to four of the previous factors correlates to 34 to 41 percent of the trust in each state with a mix of four: taxes, gun rights, lawsuit reform and commute time, showing the highest link to trust. Comparatively speaking, Texas lawmakers have done well in these four areas of public policy.
When building trust in state government, enacting liberty-minded legislation is a good place to start.
But it isn’t all sunshine in Texas Local debt continues to rise, though Eanes School District voters finally decide that they’ve had enough and defeat a bond proposal.
Tags:Budget, California, CalPERs, Chuck DeVore, Democrats, Jerry Brown, pension crisis, Regulation, San Bernardino, Scott Peters, Stockton, Texas, unions, video
Posted in Budget, Democrats, Regulation, Texas, unions, video, Waste and Fraud | No Comments »
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…
Tags:California, Texas, Toyota, U-Haul
Posted in Texas | No Comments »
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.
Tags:California, CalPERs, San Bernardino, San Francisco, Sriracha, Texas, Toyota, unions, Welfare State
Posted in Budget, Democrats, Texas, unions, Waste and Fraud, Welfare State | 1 Comment »
Monday, April 21st, 2014
More details and repercussions from the indictment of California State Senator Leland Yee and his criminal associates on gun-trafficking and other charges:
Feds plan to add racketeering charges to the Yee indictment.
Prominent Democrat Willie Brown (former Speaker of the California House and Mayor of San Francisco) wonders what the big deal is with the Yee indictment:
Give the guy a break. When all is said and done, his alleged crimes come down to taking campaign contributions in return for issuing proclamations, using campaign funds to set up a meeting and taking campaign funds for writing a letter.
Never did he sell his vote, steal public money or actually put money in his own pocket, as far as I can tell.
None of Yee’s decisions affected the public.
I’ve gone over the FBI’s criminal complaint and, from what I can see, the biggest crime he was accused of was trying hustle some undercover FBI agents who were out to get alleged Chinatown gang leader Raymond “Shrimp Boy” Chow.
First, I don’t think Brown has read that indictment carefully enough. Second, notice how prominent Democrats seem to think that some felonies are just no big deal…
“Leland Yee symbolizes the pay-to-play virus that has infected our entire body politic.”
But don’t worry, Californians! Your Democratic Party-controlled government has the solution to all this slime and corruption: “intensive ethics training for senators and staffers.” Because ordinarily people just wouldn’t know that engaging in illegal arms trafficking to Islamic rebels was wrong. “Was that wrong? Should I not have done that?”
Alleged money laundering co-conspirators Leslie Yun and James Pau granted bail. They’re also accused of stolen stolen cigarette smuggling, marijuana distribution, and owning “a massage parlor that provides sexual services for its customers.”
Back when Yee was a mere school board President, someone once sent him a message in the form of a pig’s head with a clever embedded in its skull.
Yee’s defense team accuses FBI of entrapment.
Chow’s lawyers also accuse the FBI of entrapment, saying that the FBI threw millions of dollars at him. His lawyer also says that “the $58,000 Chow received from undercover agents were legal gratuities, not kickbacks for illegal activity.” Yeah, good luck pushing that theory…
Tags:California, Crime, Democrats, FBI, Guns, James Pau, Leland Yee, Leslie Yun, prostitution, Raymond "Shrimp Boy" Chow, San Francisco, Willie Brown
Posted in Crime, Democrats, Guns | No Comments »
Wednesday, April 16th, 2014
The Bundy Ranch story is part of the Second Amendment story (and the Tenth Amendment story), but is too big and sprawling to unpack here. So here are some of the other things that have been happening:
Gun grabber Michael Bloomberg has pledged $50 million to defeat the NRA. Since every time Bloomberg opens has wallet, it seems like more Republicans win, we’ll see how long that commitment lasts…
But Bloomberg is sure that his Big Gulp and gun banning antics have earned him entry into the kingdom of heaven. “It’s not even close,” says he. Well, when you’re so exalted that you know the mind of God, why bother with the opinions of puny mortals?
“We gun owners have been utterly unreasonable and lacking in common sense for roughly 20 years. And by golly, look where it’s got us! We’ve whomped the enemies of gun rights into quivering submission.” (Hat tip: Borepatch, who offers further thoughts.)
Fast and Furious helped supply arms to gun trafficking rings in the U.S.
Connecticut: Massive non-compliance with new gun registration rules.
East Texas citizen terminates meth freak with gun.
Eric Holder wants to waste more money on smart guns.
A Harvard Law roundup on recent gun cases I haven’t had time to read yet. (Hat tip: Shall Not Be Questioned.)
Beaver County, PA Sheriff has around 700 guns seized from his home for violating a court order. Guess what party he’s from? Hint: The media decline to name the party when reporting the story. (Hat tip: Ditto.)
Two men rape and murder four women in California while wearing GPS tracking bracelets.
Detroit homeowners kill seven intruders in seven weeks.
Dumbass in Tuscaloosa finds out once again that gun beats machete.
Four pro gun bills (including a preemption bill) make their way through the Arizona legislature. (Hat tip: Alphecca.)
Tags:Arizona, California, Crime, Fast and Furious, Guns, Michael Bloomberg, NRA, Second Amendment, Texas
Posted in Crime, Democrats, Guns, Media Watch | No Comments »
Tuesday, April 15th, 2014
Today sucks if you still have to finish your taxes. It sucks more in California than Texas, since you have to pay state income taxes as well. That includes a marginal tax rate of 9.3% for all those millionaires making more than $49,774 a year. As opposed to Texas’ marginal rate of 0.0% for all…
Rich Californians don’t seem to mind that their green fantasies are screwing the poor.
California Democrats are trying to write racial quotas into the state Constitution. Oddly enough, Asian Americans are actually objecting to their children getting screwed out of college admissions. (Hat tip: Instapundit.)
“A combination of unfriendly tax policies, military budget cuts and cutthroat competition is wreaking havoc on California’s storied aerospace industry, a new study cautions.” More here, which notes that:
Texas and Washington offer low corporate income tax and no personal income tax, while providing a stable business climate and skilled work force. Many high-profile corporations have relocated their operations to new states. Recent examples include Northrop Grumman, which moved its headquarters to Northern Virginia; Raytheon Space and Airborne Systems, which moved its headquarters to McKinney, Texas; and Boeing, which moved two aircraft modernization programs, for the C-130 Hercules military transport aircraft and the B-1 bomber, from Long Beach to Oklahoma City.
CalPERS latest report proves conclusively that the fund spontaneously generates unicorns, rainbows and jobs. The Wall Street Journal examines the claims, wipes the vaguely yellow liquid off their legs and concludes “This political report offers one more reason why taxpayers and public workers shouldn’t trust Calpers with their money and would be better served by defined-contribution retirement plans that employees own and control.”
The California State Teachers’ Retirement System announced it faces $73.7 billion in long-term liabilities. “CalSTRS has a $71 billion unfunded pension liability.”
Both CalPERS and CalSTARS are desperately in need of reform.
The state teacher pension fund, CalSTRS, needs an extra $4.5 billion each year for 30 years to pay off its unfunded liabilities. CalPERS’ local government members will see costs increase by 50 percent during the next six years. And the state needs to contribute $1 billion more per year for retiree health care benefits.
These obligations for benefits already earned must be paid, and over the next decade, they will continue to drain funding from essential services such as education, public safety, transportation and health care.
Yet, powerful interests remain all too eager to kick the can down the road and push our pension problems onto future generations.
Why California has an affordable housing crisis.
Is there a way out of Taxifornia? As such a solution would require liberals to stop acting like liberals, the answer is: probably not.
Bell’s corrupt officials agree to plea bargain deal. Bonus: Robert “Ratso” Rizzo gets 33 months on federal tax evasion charges. (Hat tip: Dwight, who has been all over the Bell story.)
At least 60 companies have relocated from California to Texas. But Elk Grove, California is striking back, trying to lure Texas companies to California. “The slogan: ‘Don’t wait for high taxes and stifling regulation to come to you, end the suspense and move to California’ just doesn’t seem too appealing to me.”
Continuing troubles with California’s high speed rail boondoggle.
Sports equipment maker MonkeySports is relocating from Corona, California to Allen, Texas, adding up to some 225 Texas jobs over two years.
A closer look at relocations to the Austin area.
Tags:Bell, Budget, California, Crime, Economics, fraud, Taxes, Texas, unions, Welfare State
Posted in Budget, Economics, Regulation, Texas, unions, Waste and Fraud, Welfare State | No Comments »
Monday, April 7th, 2014
Here are some updates to the story of California Democratic State Senator Leland Yee and Raymond “Shrimp Boy” Chow’s federal weapons trafficking charges, via Dwight and Instapundit (among others):
“State Sen. Leland Yee spent campaign donations in recent years to travel to the Philippines, the country from which federal authorities accuse him of arranging to smuggle hundreds of thousands of dollars worth of military-style weapons.” (Hat tip: Dwight.)
How did Yee escape terrorism charges? The Moro Islamic Liberation Front (MILF) is not among the “56 foreign terrorist organizations designated by the U.S. State Department.”
Both Yee and Chow hire new lawyers.
Problem: California Democratic State Senator is illegally trafficking arms to international terrorist groups. Solution: California Democrats ask Obama to ban the import of “assault weapons.” It’s like Al Capone’s fellow mobsters making an impassioned plea for stricter laws on bootlegging. (Hat tip: Instapundit.)
Yee wasn’t just a gun control fanatic, he was an anti-corruption crusader as well. (Insta again.)
It took more than a week for MSNBC’s Rachel Maddow to finally mention that Yee was indicted for arms trafficking…and she still failed to mention he was a staunch advocate for gun control.
The guns of the Leland Yee scandal. I’d like to fire a Tavor Assault Rifle, but they seem to garner a hefty premium over AR-pattern rifles. (Hat tip: Dwight.)
Last time I checked, CNN still hasn’t covered the Leland Yee gun trafficking story. But thank God they covered his opposition to banning shark fin soup!
And speaking of CNN, maybe it’s not a coincidence that their ratings are near an all-time low.
San Francisco journalist spends a thousand or so words not explaining why San Francisco’s numerous professional journalists didn’t even catch a whiff of the the scandal. Hey, I think my tweet above just may have a clue…
Though he wasn’t in custody during the initial arraignment, sports agent co-conspirator Marlon Sullivan was taken into custody in Princeton, New Jersey.
Tags:California, CNN, Crime, Democrats, Guns, Leland Yee, Marlon Sullivan, Media Watch, MSNBC, Rachel Maddow, Raymond "Shrimp Boy" Chow, Tavor Assault Rifle
Posted in Crime, Democrats, Guns, Media Watch | No Comments »
Tuesday, April 1st, 2014
Lucky Gunner is offering Shrimp Boy Tactical Statesman Ammunition.
Lucky Gunner is proud to announce that we now have in stock a special batch of 9mm Statesman Ammunition™. Originally made as a special production run for a California state official, the ammo will not reach its intended customer due to pending legal proceedings and is now being offered for sale to the public at a deep discount!
Featuring the Triad-Tech™ bullet from Shrimp Boy Tactical for enhanced accuracy, each round is meticulously made to ensure reliable ignition and all rounds are incredibly corrosive. Don’t get caught feeling stung, elect to buy some Statesman 9mm ammo today!
I don’t currently own a 9mm, so I’ll have to pass. But you have to admire the rapid reaction speed of the American entrepreneur…
Tags:ammo, California, Democrats, Guns, Leland Yee, Raymond "Shrimp Boy" Chow
Posted in Democrats, Guns | 1 Comment »
Friday, March 28th, 2014
Will Franklin has a detailed piece up correlating homelessness with Democratic Party rule.
“It turns out that when it comes to mitigating homelessness, the blue state model is just as deeply flawed as the failed blue state model for job creation and economic growth.”
Substance abuse, broken families, or mental illness– tragedies all– often drive people to homelessness, but long-term unemployment and a general lack of economic vitality play a critical role in pushing people out of their homes (and keeping them out). Indeed, when it comes to reducing homelessness caused by economic hardship, we can chalk up another win for Texas and the red state model.
Snip.
California, with just under 12% of the nation’s population, has 22.43% of the nation’s homeless population, giving it a homelessness quotient of 0.88. Quite high, in other words. Almost double the number of homeless people one would predict, given its population.
Texas, which has roughly 8.2% of the nation’s population, only has 4.85% of the nation’s homeless population (meaning: Texas has a quite low homelessness quotient of -0.41).
Read the whole thing.
Tags:Blue State, California, economy, homeless, Red State, Texas, WILLisms
Posted in Economics, Texas | No Comments »