Everybody knows about the 36,000 homeless on the streets of LA, over 60,000 in the county, replete with human feces and syringes littering the sidewalks, along with rats, typhus and even rumors of bubonic plague.
And those figures are what we’re told. No one, if you can trust the comments sections in the LA Times or the Next Door app for my old Hollywood neighborhood, remotely believes them. They could be three or four times the number. And how do you take a census of the homeless anyway? They are inherently nomadic. But everyone knows they are everywhere, along those sidewalks, under the freeway underpasses, even in the brush up by Mulholland Drive. Maybe they should add homeless encampments to the Disneyland Mulholland ride.
But why has this happened in a place that is so rich it is the fifth biggest economy in the world by itself, ahead of the United Kingdom and just behind Germany? Can’t they just throw money at the homeless and make them go away?
Not so easy. It’s been tried, at least to some extent. Shelters, some of them well built, have been constructed all over the city but the homeless don’t want to stay in them. The reason is these shelters are drug-free zones and the homeless of LA (and San Francisco and Seattle) are anything but drug-free. Most are addicts. They prefer to live in tents where they can smoke what they want, shoot what they want, pop what they want.
So homeless encampments keep growing and sprout up everywhere as the syringes pile up.
Here’s a 10 minute drive through of Skid Row that gives you some idea of the size of the problem:
Here we see what the video producers want us to see as a “respectable” homeless person, the “mayor” of the block he pitches his tent on, and how he tells the “rules” to other homeless people camping there, but we also see that once a week city crews have to clean and hose off the block because it’s become a trash heap.
Notice that everyone in the video frames the problem as government needs to do more. Even the homeless guy realizes the promises are empty. There’s no discussion of eliminating California and Los Angeles’ onerous restrictions on building new housing.
Building costs in California are far above those in other states. A recent report indicates that a home that costs $300,000 to build in Texas would cost about $800,000 to build in California. The report cites factors that increase California costs, including the fact that approval of a major development in California is uncertain and that, once approved, construction can take up to 15 years. Another report shows that building “affordable housing” costs about $425,000 per unit in a multi-family development.
Take a moment and consider how many households can afford an “affordable housing” unit that costs $425,000 to build. Assuming a down payment of 10 percent, a household must earn roughly $100,000 to qualify for a conventional mortgage to purchase that home. Unless building costs fall significantly, this means some form of government subsidy—either to the builder or to the buyer—will often be required for these units to be built and occupied. And these subsidies will ultimately be paid for by taxpayers.
Regulations are a major factor behind outrageous California construction costs, and this includes the California Environmental Quality Act (CEQA). This legislation, which was passed by governor Ronald Reagan in 1970, requires that environmental review and protection be part of every state and local government decision-making process. But CEQA needs to be reformed. What was intended as a tool for protecting the state’s environment is now used by political organizations, businesses, labor unions, community organizers—you name it—for their own agendas that often have virtually nothing to do with environmental protection.
A key problem with CEQA is that it allows lawsuits brought by private parties, and a parade of CEQA lawsuits can add many years and millions of dollars in costs to projects. Roughly half of CEQA lawsuits are decided in favor of the plaintiff, which in turn promotes more CEQA-based lawsuits. CEQA serves as a litigant’s tool of last resort, because virtually anyone can easily disguise almost any lawsuit as one that is based on environmental concerns. If it involves building on a plot of land, then the environment is affected, no?
It is interesting to note that relatively few CEQA-type environmental lawsuits are brought in New York, which also has strict state environmental laws. But these types of lawsuits are rarely decided in favor of the plaintiff by New York judges, which in turn discourages parties from bringing these lawsuits in the first place.
Project opposition often emerges after years of planning and community outreach and at times is nothing more than a money grab. Imagine that you are a California developer. You must confront not only outrageously high construction costs but also the uncertainty of how long approval will take and the possibility that it won’t be approved unless you pay off a litany of extortive outside interests. Is it any wonder there is not enough new construction in California? This is certainly not what Governor Reagan or the state legislature imagined would happen when the law was passed in 1970, and this is why CEQA must be reformed.
Several attempts to reform CEQA have failed, blocked not only by environmental groups but also by labor. It is not that labor groups put the environment front and center in their agenda but rather that CEQA gives labor an extremely powerful tool in bargaining with developers.
You know who’s right at home in Los Angeles? Rats, who east scraps and human feces left by the homeless people defecating in the street (just like in San Francisco):
And that, in turn, has brought back the medieval scourge of typhus:
The problem is driving longtime businesses out:
Both California and Los Angeles have become one-party Democratic fiefdoms, where progressive policy preferences have been put into action. Tolerance of homeless drug addicts has meant an increase in homeless drug addicts, just like in Seattle.
Many liberals complain about the unfairness of broken windows policing. But when people elect hard-left Democrats to office they put an end to broken windows policing, and when you stop prosecuting lifestyle crimes, you get homeless drug addicts living on the street, which begets piles of garbage, which begets rats, which begets typhus and other infectious diseases. Sure as clockwork.
And that after this is accomplished, and the brave new world begins
When all men are paid for existing and no man must pay for his sins,
As surely as Water will wet us, as surely as Fire will burn,
The Gods of the Copybook Headings with terror and slaughter return!
Hickenlooper is In, Inslee is more officially In, and the B team (Biden, Bloomberg and Beto) are still Hamleting. It’s your Democratic Presidential Clown Car Update!
The Washington Post plays the answer top Google questions about the candidates game. Got a chuckle out of this on Pete Buttigieg: “Not only would he be the youngest person ever elected president, he would also be both the first gay president and the first president who liked University of Notre Dame athletics.”
538 polls which candidate early primary state Democratic activists are considering backing. Finally, a poll Kamala Harris comes out on top of! She’s followed by Booker, Brown, Warren, Klobuchar, Biden and Sanders. Biggest drop between November and February? O’Rourke, whose support halved.
Colorado Senator Michael Bennet: Leaning Toward In. He says people are tired of “rage Olympics,” applauded President Donald Trump’s “America will never be a socialist country” line and says Medicare for all is a pipe-dream. It will be interesting to see if that message gets any traction in a crowed field…
Ohio Senator Sherrod Brown: Likely In. “U.S. Senator Sherrod Brown (D-Ohio) is starting the final leg of his tour of the early presidential primary and caucus states. As he visits South Carolina, Brown says he’s learned a lot as he gets closer to making a decision on a possible presidential run.” Decision? If you’re touring Iowa, New Hampshire and South Carolina, you’ve already decided to get in…
South Bend, Indiana Mayor Pete Buttigieg: In. Twitter. Facebook. With all the attention on Iowa, New hampshire and Couth Carolina, Buttigieg is campaigning at…Scripps College in Claremont, California. I actually had to look that up. It’s part of the Los Angeles sprawl, just west of Rancho Cucamonga…
Former San Antonio Mayor and Obama HUD Secretary Julian Castro: In. Twitter. Facebook. Said he’s going to run on education, including pre-K funding. (Tiny problem: It doesn’t work. But don’t expect any of Castro’s rivals to voice that heretical thought…)
Former First Lady, New York Senator, Secretary of State and losing 2016 presidential candidate Hillary Clinton: Probably not. But check out this ABC news headline: “Hillary Clinton, Bernie Sanders and other 2020 hopefuls honor march on Selma”
You go to Dewitt, Tipton, Glenwood, Denison, Alba, Knoxville, Perry, Grimes and nine other places this year alone—emphasizing the small Iowa towns that seldom see a presidential candidate. You take out an ad during the Super Bowl two years before the Iowa caucuses — an unheard-of extravagance that no one dared try before. You open six campaign offices in Iowa — before your better-known rivals have opened even one. You win the endorsement of four county central Democratic committees in Iowa — long before the top-tier candidates have lassoed any.
And you make 24 campaign trips to Iowa and another 14 to New Hampshire, the sites of the first two political tests of the 2020 campaign, states that pride themselves on being the political equivalent of the Cheers bar — places where, the civic folklore says, everyone knows your name.
Everyone in the political world knows your name, unless, of course, your name is John Delaney.
Former Tallahassee Mayor and failed Florida Senate candidate Andrew Gillum: Out.
California Senator Kamala Harris: In. Twitter. Facebook. Harris wants all the California Benjamins. Politico says she’s she’s just too awesome at connecting emotionally with voters to offer actual details or plans. “She’s been noncommittal or vague on a range of issues.” One plan floated: legalizing prostitution. My libertarian half both agrees and points out that it’s a state level issue, and thus nothing the President can or should affect. That WaPo Google answer bit above offers this tidbit: “Her sister is Maya Harris, a former adviser to the 2016 campaign of Hillary Clinton who now acts as a political analyst for MSNBC.” It’s incest all the way down…
Former Colorado Governor John Hickenlooper: In. Website. Twitter. Announced this morning. His kickoff rally is in Denver March 7. Upgrade over leaning toward in.
Former Texas Representative and failed Senatorial candidate Robert Francis “Beto” O’Rourke: Maybe. He’s made up his mind! But he’s not telling us. Yet. More from The Dallas Morning News, if you can get past the beg blocker.
New York Representative Alexandria Ocasio-Cortez: Constitutionally ineligible to run in 2020.
Can @CNN and @BernieSanders explain why these democratic employees are planted in the audience and presented to us as anything but what their actual jobs are? pic.twitter.com/QJyht7B5nv
California Representative Eric Swalwell: Leaning Toward In. He’s in New Hampshire. Evidently what Swalwell learned from the 2016 Presidential election is that the path to the White House is tweeting crazy shit.
There’s a much criticized spending bill with a lot of poison pill provisions and a tiny bit of border wall funding President Trump is expected to sign, and then declare a national emergency to get the wall built.
While that’s up in the air, enjoy a Friday LinkSwarm:
Democrats don’t want to detain or deport violent felons. If that’s the hill they want to die on, bring on the shutdown. (Hat tip: Director Blue.)
“National Border Patrol Council president Brandon Judd told Breitbart News Tonight on Wednesday that Congress had ignored the advice of experts when reaching a deal to provide less than $1.4 billion for border fencing.”
The ludicrous nature of the Democrats’ “Green New Deal” continues to haunt them, leading to a lot of walking back economically insane socialist goals. NPR has the original text of the proposal.
These people think that they can adequately plan and run — for all time — an economic system from Washington that would guarantee: “a job with a family-sustaining wage, adequate family and medical leave, paid vacations, and retirement security to all people of the United States” as well as “access to nature.”
But they can’t even plan the roll out of a non-binding resolution and some press-release materials? And, when confronted by their own words, their immediate response was to accuse their enemies of sabotaging them? Gosh, by all means, let’s give them control of the entire economy. That couldn’t work out badly. I mean “Mistakes happen when doing time launches like this coordinating multiple groups and collaborators,” when uploading FAQs, not when doing anything as simple as commandeering the bulk of the U.S. economy.
Amazon cancels it’s New York City HQ2 expansion plans. Government shouldn’t be throwing subsidies at targeted corporations (nor picking winners and losers). The decision is also rich, zesty schadenfreude for Rep. Alexandria Ocasio-Cortez screwing over New York Governor Andrew Cuomo and New York City Mayor Bill de Blasio, who both pushed hard for the Amazon deal.
This story should be absolutely infuriating to everyone on all sides of the political spectrum: rather than preserving or processing DNA rape kits, Oklahoma destroyed them.
How do Democrats expect to get socialism to work nationwide when they can’t even get it to work at one Panera Bread location?
Twitter bias is real. “Of 22 prominent, politically active individuals who are known to have been suspended since 2005 and who expressed a preference in the 2016 U.S. presidential election, 21 supported Donald Trump.” (Hat tip: Director Blue.)
Those pesky peasants are threatening the EU by daring to vote for parties of which the EU elite disapproved.
Brexit update:
Today I asked my successor as Brexit Secretary @SteveBarclay to confirm that, if the EU are not willing to agree a deal by 29 March, we will be leaving without a deal. He confirmed this is the case. pic.twitter.com/BGqecyUti5
New frontiers in unconstitutional legislation: “The Los Angeles City Council voted yesterday to require companies who want to contract with the city to disclose their relationships with the National Rifle Association.” (Hat tip: Ace of Spades HQ.)
Disgraced former Democratic state senator Carlos Uresti sentenced to five years for bribery. Unfortunately it will run concurrently with his fraud conviction, and therefore result in no additional time in prison. (Hat tip: Dwight.)
“Millennials Have Discovered ‘Going Out’ Sucks.” And they only discovered this after cities pushed densification policies to hurd them all downtown where the clubs and bars are… (Hat tip: Millennial Conservative.)
Sometimes law enforcement officers use poor judgement. This week’s examples:
Buying cocaine for the prostitute you’re having rough sex with may be a career-limiting move. Especially if you’re an Austin police officer.
From New York, an officer that failed to heed Jeff Cooper’s rules. If he had, he wouldn’t have had to fire 27 shots, including those that hit two bystanders. (Hat tip: Dwight, for both.)
Right at the top of the department’s struggles were the racketeering convictions of eight members of its once-elite Gun Trace Task Force. Two sergeants and eight detectives robbed citizens under protection of their badges and claimed massive amounts of overtime for hours they did not work. In November, a ninth officer, former Baltimore and Philadelphia cop Eric Snell, pleaded guilty to charges that he conspired to sell drugs with the GTTF members.
Also this: “The city surpassed 300 homicides for the fourth year in a row. It has earned the grim designation of having the worst homicide rate among the nation’s 50 largest cities last year, according to FBI data released in September.”
The Los Angeles Police Department, on the other hand, is dealing with a revenge porn scandal:
A Los Angeles Police Department employee is accusing her co-worker of releasing revenge porn.
According to KABC, Ysabel Villegas is a detective with the LAPD’s Robbery-Homicide Division. Villegas filed a temporary restraining order against LAPD senior lead officer Danny Reedy.
Villegas is also married to former LAPD Assistant Chief Jorge Villegas. Eyewitness News has learned he suddenly retired earlier this year after a sex scandal involving a subordinate officer.
According to the restraining order, Ysabel Villegas claims she had a romantic relationship with Officer Danny Reedy for five years.
She alleges in the restraining order that after their relationship ended, Reedy distributed explicit photos of her, without her consent.
They all sound like such wonderful people.
Caveat: Lisa Bloom is Ysabel Villegas’ attorney, so don’t assume she’s telling the truth…
Job interviews and book-related work have taken up the majority of my waking hours this week. Also, The Burning Time has fully arrived here in central Texas. It’s supposed to hit 108° on Monday…
There are plenty of risks with President Donald Trump’s trade strategy in China, but China faces risks of its own:
The smartest short-term decision Beijing can make is simply to absorb the next round of blows and hold its punches. For instance, if Washington moves ahead to impose 25% tariffs on $16 billion of Chinese imports, Beijing would withhold fire, in the hope of enticing Washington into a ceasefire, which in turn could create an opportunity to negotiate a face-saving way to avoid further and much more costly escalations.
The most compelling rationale behind this strategy of quick capitulation is to protect China’s centrality in the global manufacturing supply chain. About 43% of Chinese merchandise trade in 2017 (totaling $4.3 trillion) is, according to the Chinese Ministry of Commerce, “processing trade” (which involves importing intermediate goods and assembling the products in China). What China gains from processing trade is the utilization of its low-cost labor force, factories, and some technological spillover. Processing trade generates low value-added and profitability. For example, Foxconn, the Taiwanese company that assembles iPhones in China, had an operating margin of only 5.8% last year.
One of the greatest risks China faces in a prolonged trade war with the U.S. is the loss of its processing trade. Even a modest increase in American tariffs can make it uneconomical to base processing in China. Should the U.S.-China trade war escalate, many foreign companies manufacturing in China would be forced to relocate their supply chains. China could face the loss of millions of jobs, tens of thousands of shuttered factories, and a key driver of growth.
However, capitulating to a “trade bully,” as the Chinese media calls Trump, is hard for Xi, a strongman in his own right. Worse still, it is unclear what Trump wants or how China can appease him. The terms his negotiators presented to Beijing in early May were so harsh that it is inconceivable that Xi could accept them without being seen as selling out China.
Even if the trade war with the U.S. could be de-escalated with Chinese concessions, Beijing faces another painful decision. The trade war in general, and in particular the forced shutdown of the Chinese telecom equipment maker ZTE after Washington banned the company from using American-made parts have highlighted China’s strategic vulnerability from its economic interdependence with the U.S. Before the two countries became geopolitical adversaries, economic interdependence was a valuable asset for China. It could take advantage of this relationship to build up its strength while the mutual economic benefits cushioned their geopolitical conflict.
But with the overall U.S.-China relationship turning adversarial, economic interdependence is not only hard to sustain (as shown by the trade war), but also is rapidly becoming a serious strategic liability. As the economically-weaker party, China is particularly affected. In the technological arena, China now finds itself at the mercy of Washington in terms of access to vital parts (such as semiconductors) and critical technologies (operating systems such as Android and Windows). Should the U.S. decide to cut off Chinese access for whatever reason, a wide swathe of Chinese economy could face disruption.
China’s somewhat vulnerable on semiconductors, but it’s severely vulnerable on semiconductor equipment.
Democratic U.S. House candidate and socialist darling Alexandria Ocasio Cortez: “We need to occupy every airport.” Yeah. I can’t possibly see that backfiring. Sayeth Powerline’s John Hindraker:
Yes, please! Please go straight to LaGuardia and shut it down. But don’t stop there! “Every airport” needs to be occupied and shut down by Democrats. Between now and the midterm elections, Democrats should do all they can to make air travel inconvenient, and preferably impossible.
This actually happened not too long ago, in the fall of 2001. Ocasio-Cortez may be too young to remember it clearly, but all of America’s airports were closed for a few days as a result of al Qaeda’s terrorist attacks. Ocasio-Cortez is more ambitious, of course. She doesn’t just want to shut down “every airport” for a few days, she wants to make it long-term. Terrific, I say! Led by Ocasio-Cortez, the Democratic Party could be as popular as al Qaeda by November.
Congress breaks record confirming trump picks. Also, check out this from Sen. Dianna Feinstein (D-CA): Oldham’s record “could not be more extreme and overtly political.” Really? Did he order kittens to be slaughtered in his chamber so he could bath in their blood while invoking Satan? No? In that case, I’d say he his a lot of headroom on the “more extreme” front… (Hat tip: Instapundit.)
The most difficult times I faced during my years with the LAPD were during the years Bernard Parks served as its chief. Parks, in an overreaction to the Rampart scandal (which, though a genuine scandal, was confined to a handful of officers at a single police station), had disbanded the LAPD’s gang units and instituted a disciplinary system that placed a penalty on proactive police work. It was under Chief Parks that I attended a supervisors’ meeting after a week in which my patrol division had seen four murders and a wave of lesser crimes. Despite these grim statistics, not a single word at this meeting touched on the subject of crime. What did we talk about? Citizen complaints. And even at that we didn’t discuss them in terms of the corrosive effect they were having on officer morale. Instead, we talked about the processing of the paperwork and the minutia of formatting the reports. Fighting crime, it seemed, had taken a back seat to dealing with citizen complaints, even the most frivolous of which required hours and hours of a supervisor’s time to investigate and complete the required reports.
As one might have expected, officers reacted to these disincentives by practicing “drive-and-wave” policing. Yes, they responded to radio calls as ever, but it became all but impossible to coax them out of their cars to investigate suspicious activity when they came upon it. As one might also have expected, the crime numbers reflected this change in police attitudes. Violent crime, which had been falling for seven years, began to increase and continued to increase until Bernard Parks was let go and replaced by William Bratton.
Which brings us back to Baltimore, where, USA Today informs us, 342 people were murdered in 2017, bringing its murder rate to an all-time high and making it the deadliest large city in America. (Baltimore’s population last year was about 611,000. In Los Angeles, by comparison, with a population of about 3.8 million, there were 293 murders last year.)
The Baltimore crime wave can be traced, almost to the very day in April 2015, that Freddie Gray, a small-time drug dealer and petty criminal, died in police custody. When Baltimore State’s Attorney Marilyn Mosby made the ill-considered decision to charge six officers in Gray’s death, she sent a clear message to the rest of the city’s police officers: concerns about crime and disorder will be subordinated to the quest for social justice.
As was the case in Los Angeles years ago, the result was entirely predictable. Officers disengaged from proactive police work, minimizing their risk of being the next cop to be seated in the defendant’s chair in some Marilyn Mosby show trial. The prevailing thought among Baltimore’s cops was something like this: They can make me come to work, they can make me handle my calls and take my reports, but they can’t make me chase the next hoodlum with a gun I come across, because if I chase him I might catch him, and if I catch him I might have to hit him or, heaven forbid, shoot him. And if that happens and Marilyn Mosby comes to the opinion that I transgressed in any way . . . well, forget it. Let the bodies fall where they may, and I’ll be happy to put up the crime-scene tape and wait for the detectives and the coroner to show up.
Andrew Cuomo fundraising tidbits. Cuomo has $31.1 million cash on hand and spent more on TV advertising ($1.5 million) than Cynthia Nixon has raised in total. Bonuses: Low-level shenanigans (one guy gave 69 donations totally $77) and Winklevoss twins!
Defeated Republican state representative Jason Villalba calls for President Trump’s impeachment. Thanks for reminding Republican primary voters, yet again, why they dumped you for Lisa Luby Ryan.
“Kicking, screaming, biting Kansas councilwoman finally taken down with Taser, arrested.” Bonus 1: She later bite a deputy’s thumb so hard she broke a bone. Bonus 2: She was elected to the Huron (population: 73) city council with a grand total of 2 votes.
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.”
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.
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.
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.
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.
“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.”
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.”
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.
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.
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.
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.
“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.)
We’re in the home stretch of hammering out the Texas biannual state budget, which has to be completed by May 29. Until then, enjoy another Texas vs. California roundup:
In this era of anti-Trump resistance, many progressives see California as a model of enlightenment. The Golden State’s post-2010 recovery has won plaudits in the progressive press from the New York Times’s Paul Krugman, among others. Yet if one looks at the effects of the state’s policies on key Democratic constituencies— millennials, minorities, and the poor—the picture is dismal. A recent United Way study found that close to one-third of state residents can barely pay their bills, largely due to housing costs. When adjusted for these costs, California leads all states—even historically poor Mississippi—in the percentage of its people living in poverty.
California is home to 77 of the country’s 297 most “economically challenged” cities, based on poverty and unemployment levels. The population of these cities totals more than 12 million. In his new book on the nation’s urban crisis, author Richard Florida ranks three California metropolitan areas—Los Angeles, San Francisco, and San Diego— among the five most unequal in the nation. California, with housing prices 230 percent above the national average, is home to many of the nation’s most unaffordable urban areas, including not only the predictably expensive large metros but also smaller cities such as Santa Cruz, Santa Barbara, and San Luis Obispo. Unsurprisingly, the state’s middle class is disappearing the fastest of any state.
California’s young population is particularly challenged. As we spell out in our new report from Chapman University and the California Association of Realtors, California has the third-lowest percentage of people aged 25 to 34 who own their own homes—only New York and Hawaii’s are lower. In San Francisco, Los Angeles, and San Diego, the 25-to-34 homeownership rates range from 19.6 percent to 22.6 percent—40 percent or more below the national average.
California continues to slouch toward socialized medicine. “California’s current system relies in large part on employer-sponsored insurance, which is still the source of health care coverage for tens of millions of people. That coverage would disappear under SB 562. Instead of receiving coverage financed by their employers, working Californians would see a tax increase of well over $10,000 per year for many middle-income families.” (Hat tip: Legal Insurrection.)
“Congratulations, California. You keep electing these same Democrats over and over again. and then you act surprised when they make you one of the most heavily taxed populations in the country. And when you finally raise your voices to protest the out of control taxation and spending, the state party’s titular leader is brazen enough to come straight out and tell you what he really thinks of you.”
One lawmaker is the target of a recall petition over the tax hike: “Perceived as the most vulnerable of the legislative Democrats who passed Gov. Jerry Brown’s gas and vehicle tax package by a razor-thin margin, freshman state Sen. Josh Newman, D-Fullerton, faced an intensifying campaign to turn him out of office, potentially depriving his party of the two-thirds majority that allowed them to pass Brown’s infrastructure bill in the first place.”
Vance Ginn’s monthly summary of Texas economic data. Lot’s of data, including the fact that all major Texas cities created jobs in 2016 except Houston, which was down just a smidge.
40-60 “youth” flash mob robs passengers on Oakland BART train. The complete absence of descriptions or pictures cues the astute modern American reader in to the ethnic makeup of the mob. (Hat tip: Ace of Spades HQ.)
“Gov. Jerry Brown and state Treasurer John Chiang have a plan to help cover the state’s soaring pension payments: Borrow money at low interest rates and invest it to make a profit. What could go wrong?” I can see it now: “Come on seven! Baby needs a new High Speed Rail!” Also this: “The problem was exacerbated because Brown’s so-called pension “reform” of 2012 failed to significantly rein in retirement costs. Statewide pension debt has increased 36 percent since his changes took effect.” (Hat tip: Pension Tsunami.)
“Riverside utilities dispatcher triples salary to nearly $400,000 with state’s 10th largest overtime payout.” (Hat tip: Pension Tsunami.)
The time cards Oakland city worker Kenny Lau turned in last year paint a stunning, if not improbable, picture of one man’s work ethic.
Lau, a civil engineer, often started his days at 10 a.m. and clocked out at 4 a.m., only to get back to work at 10 a.m. for another marathon day. He never took a sick day. He worked every weekend and took no vacation days.
He worked every holiday, including the most popular ones that shut down much of the nation’s businesses: 12 hours on Thanksgiving and eight hours on Christmas.
In fact, his time cards show he worked all 366 days of the leap year, at times putting in 90-plus-hour workweeks. He worked so much that he quadrupled his salary. His regular compensation and overtime pay — including benefits, $485,275 — made him the city’s highest-paid worker and the fourth-highest overtime earner of California public employees in 2016.
The Los Angeles Unified School District has decided it can break federal immigration laws at will. “No immigration officers will be allowed on campus without clearance from the superintendent of schools, who will consult with district lawyers. Until that happens, they won’t be let in, even if they arrive with a legally valid subpoena.” There’s no way such a genius decision could possibly backfire on them… (Hat tip: Director Blue.)
An auditor funds the University of California President’s office of Janet Napolitano had a secret slush fund:
The Office of the President has accumulated more than $175 million in undisclosed restricted and discretionary reserves;
as of fiscal year 2015–16, it had $83 million in its restricted reserve and $92 million in its discretionary reserve.
More than one-third of its discretionary reserve, or $32 million, came from unspent funds from the campus assessment—an annual charge that the Office of the President levies on campuses to fund the majority of its discretionary operations.
In certain years, the Office of the President requested and received approval from the Board of Regents (regents) to
increase the campus assessment even though it had not spent all of the funds it received from campuses in prior years.
The Office of the President did not disclose the reserves it had accumulated, nor did it inform the regents of the annual undisclosed budget that it created to spend some of those funds. The undisclosed budget ranged from $77 million to
$114 million during the four years we reviewed.
The Office of the President was unable to provide a complete listing of the systemwide initiatives, their costs, or an assessment of their continued benefit to the university.
While it appears that the Office of the President’s administrative spending increased by 28 percent, or $80 million, from fiscal years 2012–13 through 2015–16, the Office of the President continues to lack consistent definitions of and methods for tracking the university’s administrative expenses.
An Ex-Obama Administration official with a secret slush fund? What are the odds?
Tesla survives on the back of hefty subsidies paid for by hard-working Americans just barely getting by so that a select few can drive flashy, expensive electric sports cars. These subsidies were originally scheduled to expire later this year, and Tesla is lobbying hard to make sure that taxpayers continue to pay $7,500 per car or more to fund their business model. Tesla even tried to force taxpayers to pay for charging stations that would primarily benefit their business. That is not what Musk’s high priced image managers will tell you, but it’s the truth.
SpaceX is even worse — its business model isn’t to invest its money developing competing space products that meet the same safety and reliability standards as the rest of the industry. Instead, its business model is to get billions in taxpayer money and push, bend, and demand regulatory special favors. Then, it produces a rocket that is more known for failed launches, long delays, and consistently missed deadlines.
“Bay Area bookseller Bill Petrocelli is filing a lawsuit against the state of California, hoping to force a repeal of the state’s controversial ‘Autograph Law.’ The law, booksellers claim, threatens to bury bookstore author signings under red tape and potential liabilities. Petrocelli, co-owner of Book Passage, filed Passage v. Becerra in U.S. District Court for the North District of California, pitting the bookstore against California State Attorney General Xavier Becerra.” As a bookseller on the side, I can tell you that California’s law is particularly asinine and is completely ignorant of the signed book trade.
Another eventful week, and not just for the special-prosecutor and impeachment talk freakout Democrats are having. (Looks like they failed to learn the lesson of “Fitzmas.”)
Now the LinkSwarm:
“Almost every promise made eight years ago about Obamacare turned out to be a falsehood.”
No, you couldn’t keep your insurance plan, doctor or provider in many cases. No, it didn’t save $2,500 per family (more like cost $2,500 more per family). No, it didn’t lead to expanded patient choice. And yes, the tax increases and insurance mandates damaged the economy and cost jobs. We are now left with insurance markets that have entered a death spiral. The entire health insurance market will financially implode unless it’s changed.
“Several raids by federal and local authorities across Los Angeles on Wednesday led to the arrests of 44 MS-13 gang members, including murderers, CNN reported. The series of 50 raids occurred before dawn and were led by ATF agents and 1,000 other officers who have been working on the case for around three years. More than half of the 44 gang members arrested were undocumented immigrants, while three members are currently on the run.” (Hat tip: Director Blue.)
Boston prosecutors go out of their way not to deport a foreign national for bank robbery. Result? Two American citizens murdered.
Anthony Weiner pleads guilty. “Prosecutors said they would ask for 21 months to 27 months in prison for Weiner once his plea is entered. He will also be required to register as a sex offender.” That would put him safely past the 2018 midterm elections, but not the 2020 election…
In it are the self-proclaimed elites of government and media. The residents of the zeroth bubble reside in coastal enclaves and surrounded by elaborate systems that protect them from those who live in the first, second and third bubbles.
The residents of the zeroth bubble often secure permanent employment in the form of government sinecure or job-hopping between government, media, academia, lobbying, and public relations.
Their personal security is assured by heavily-armed forces that offer many of them around-the-clock protection.
There is little crossover from the zeroth bubble to the first. And certainly less still between the zeroth and the second.
It’s also safe to say that the device has yet to be invented that can measure the empathy that the elites feel for the residents of the third bubble.
Which helps explain why illegal immigration — from human- and drug-smuggling to MS-13 — is of no concern to the Chamber of Commerce, or your typical Senator, or Thomas Friedman of The New York Times.
The zeroth bubble people wouldn’t ever see the results of the open borders policies they espouse and support, nor can they even countenance them.
In fact, they’re sufficiently disconnected from the residents of the first bubble that they missed the entire Trump phenomenon.
President Donald Trump reversed another eleventh-hour Obama administration regulation, rolling back Democrats’ effort to push private sector workers into state government retirement plans.
Trump signed House Resolution 66 on Wednesday, undoing a regulation adopted by the Department of Labor on October 31, 2016. The department’s rule would have allowed state and local governments to create IRA accounts for private sector workers and automatically deduct contributions from their paychecks without the protections savers enjoy under the Employee Retirement Income Security Act.
Draining the swamp: Half of EPA advisory board dismissed. Also: “The Interior Department has also frozen the work of more than 200 advisory boards, committees and subcommittees last week.” Just think of all the damage they won’t be able to do to the American economy for a while…
I see increasing numbers of so-called liberals cheering censorship and defending violence as a response to speech. I see seemingly reasonable people wishing death on others and laughing at escalating suicide and addiction rates of the white working class. I see liberal think pieces written in opposition to expressing empathy or civility in interactions with those with whom we disagree. I see 63 million Trump voters written off as “nazis” who are okay to target with physical violence. I see concepts like equality and justice being used as a mask for resentful, murderous rage.
The most pernicious aspect of this evolution of the left, is how it seems to be changing people, and how rapidly since the election. I have been dwelling on this Nietzsche quote for almost six months now, “He who fights with monsters, should be careful lest he thereby become a monster. And if thou gaze long into an abyss, the abyss will also gaze into thee.” How easy is it for ordinary humans to commit atrocious acts? History teaches us it’s pretty damn easy when you are blinded to your own hypocrisy. When you believe you are morally superior, when you have dehumanized those you disagree with, you can justify almost anything. In a particularly vocal part of the left, justification for dehumanizing and committing violence against those on the right has already begun.
Signs of cognitive dissonance that show you’re winning the debate: “If you have been well-behaved in a debate, and you trigger an oversized personal attack, it means you won.”
One bitter December day in 2011, Jen was driving the children along a winding road near their home. Samantha had just turned 6. Suddenly Jen heard screaming from the back seat, and when she looked in the mirror, she saw Samantha with her hands around the throat of her 2-year-old sister, who was trapped in her car seat. Jen separated them, and once they were home, she pulled Samantha aside.
“What were you doing?,” Jen asked.
“I was trying to choke her,” Samantha said.
“You realize that would have killed her? She would not have been able to breathe. She would have died.”
“Rear Adm. Robert Gilbeau, the first admiral ever convicted of a federal crime while on active duty, was sentenced on Wednesday to 18 months in prison for lying to investigators about his involvement in a bribery scandal that has ensnared numerous Navy officers.” That would be for the Fat Leonard scandal. (Hat tip: Dwight.)
Senate Conservative Fund-backed Ralph Norman wins primary for South Carolina’s Fifth Congressional seat by 203 votes.
it becomes clear that what you’re seeing is the strange death of Labour Wales – one that goes back further and deeper than June 2016.
In its heartlands, Labour was always a working-class party, and what’s changed is that the working class has been smashed up. The physical traces of that are evident all over south Wales. The mines are now museum pieces. The Sony factory in Bridgend has long since gone, while the town’s Ford plant is reportedly preparing to shed over half its workers. What’s replaced those careers? A scan of the windows of the recruitment agencies tells you: fork-lift drivers, warehouse staff, “recycling operatives”. All at around minimum wage, and hardly any full-time.
For decades, Labour took this area and its other heartlands for granted – while it flirted with Mondeo Man and Worcester Woman. It parachuted in its plastic professional politicians – just think of the way Tristram Hunt was airlifted into Stoke – and ignored the need to nurture local talent. Now in Wales and elsewhere, it is paying the price of decades of ingrained arrogance.
“German Chancellor Angela Merkel has threatened the British government with ‘consequences’ if it were to restrict immigration from the EU member states after the country formally breaks away from the union.” This brings up a number of questions, foremost among them why does she care? First, why should the leader of one country care how another country sets its immigration policy? Second, this suggests that Frau Merkel thinks she’s President of the EU rather than Germany (to be fair, so does most of the world). Third, why would the EU fight to make it easier for their own citizens to leave the EU? Why it’s almost as if Merkel is more loyal to the interests of open borders elites than the German people. Or else the EU wants to dump more Islamic “refugees” on the UK…
Texas House Speaker Joe Straus seems to have finally met his match in Lt. Governor Dan Patrick:
Joe Straus looked like a speaker unquestionably in charge. Then things started falling apart.
The problems for the speaker have been caused by a small group of Republican legislators known as the Freedom Caucus. The core group is nine lawmakers out of the 150-member House, and sometimes they can get their vote up to nineteen. Even some conservative Republicans complain that the Freedom Caucus is not truly Republican, but rather a group of libertarians more bent on causing chaos in the House than anything else. Some of the most prominent members are Matt Schaefer of Tyler, Jeff Leach of Plano, and Matt Rinaldi of Irving. Their titular leader is Bedford Representative Jonathan Stickland, who uses parliamentary rules to kill other members’ bills and then strongly objects when his own legislation suffers a similar fate. The Freedom Caucus opposes Straus but have generally been an ineffective annoyance.
That changed on April 27, when the House endured sixteen hours of debate on an anti-immigration bill to address so-called sanctuary cities. In the course of the debate, Schaefer offered an amendment to prevent police chiefs from restricting their officers from asking people who have been detained about their immigration status. In a moment of conciliation, Schaefer offered to pull down his amendment if Democrats would stop offering their own amendments designed to make Republicans look heartless and cruel. Some Democrats wanted to take the deal, but Representatives Armando Walle of Houston, Cesar Blanco of El Paso and Roland Gutierrez of San Antonio argued against it. By refusing to compromise, the three guaranteed that the so-called “show me your papers” amendment would become part of the bill that Abbott eventually signed into law.
But undeniably, Straus had an opportunity to affect the outcome of that bill. He could have kept it bottled up as he was doing with the bathroom bill, though he had allowed a similar sanctuary cities bill to go through the House in 2011. Straus also could have demanded discipline out of his chairs to vote against Schaefer. The amendment went on the bill by a vote of 81-64, with fourteen of Straus’s committee chairs voting for the Schaefer amendment, while three other members of his leadership team were away at a conference committee on the budget. Straus needed to switch only a dozen votes to keep the most controversial language out of the bill.
The Freedom Caucus was empowered, at least in perception.
In the days that followed, caucus members got an amendment on a foster care bill to prevent the vaccination of children who have been removed from their homes until a court ordered the child’s permanent removal. And last week they used maneuvers to slow down the House calendar so that a “safety net” bill failed to pass to keep agencies subject to the sunset review process alive even if their reauthorization legislation failed. And finally, they won passage of an amendment to a State Bar of Texas bill to make it an affirmative defense for a lawyer under disciplinary review to claim he or she acted because of a sincerely held religious belief—an amendment that Democrats viewed as giving lawyers the ability to discriminate against the LGBT community.
After the religious beliefs amendment passed on a vote of 85-59, Representative Rafael Anchia of Dallas blurted out, “Last session these guys couldn’t pass gas. Now they’re running the floor.”
Several senior Republican members of the Straus leadership team have told me they don’t feel like anyone is in charge in the House. One called it a rudderless ship. None said they are ready to abandon Straus or revolt against him, though the frustration is rising.
With the Freedom Caucus suddenly finding some success in the House, Patrick no doubt saw an opportunity to reassert control of the session. The death of the House version of the “safety net” bill was important. It’s called a safety net bill because it allows agencies under sunset review to continue operating. It has to pass. With the demise of the House’s bill, the only option left is the Senate’s version. And Patrick made clear he intends to hold that bill hostage.
In his press conference Wednesday, flanked by the flags of Texas and the United States, Patrick noted that he had control of the Senate version of the safety net bill. Then he demanded the House surrender on using the state’s rainy day fund to pay for a revenue shortfall in the budget; that the House accept both a private school voucher program in a substantially reduced school funding plan, and a controversial property tax reform for cities and counties; and that some form of his bathroom bill receive House approval. Otherwise, Patrick would force a special session to get what he wants.
Ignore the analysis of the Freedom Caucus. What’s really going on here is that Patrick has emboldened House Republicans who previously lived in fear of Straus’ vengeance to actually start acting like Republicans again.
“Saudis to Make $6 Billion Deal for Lockheed’s Littoral Ships.” This is evidently just one component of a $110 billion arms deal negotiated by both the Trump and Obama Administrations. Though most famous for aircraft, Lockheed has built combat ships off and on for decades and, especially after their merger with Martin Marietta in 1995, has a lot of fingers in a lot of defense contracting pies. (Hat tip: Stephen Green at Instapundit.)
This didn’t get done while I was doing my taxes, but here, at last, is another giant Texas vs. California update:
Appeals court finds San Diego’s pension reform legal. “California’s Fourth District Court of Appeal unanimously overturned a 2015 state labor board ruling that said the cutbacks were illegal because of then-Mayor Jerry Sanders’ involvement in the successful citizens’ initiative that made the changes.” San Diego transitioned to a 401K style program. Naturally public employee unions screamed bloody murder and sought to have the reforms overturned. (Hat tip: Pension Tsunami.)
Every year from 2000 through 2015, more people left California than moved in from other states. This migration was not spread evenly across all income groups, a Sacramento Bee review of U.S. Census Bureau data found. The people leaving tend to be relatively poor, and many lack college degrees. Move higher up the income spectrum, and slightly more people are coming than going.
About 2.5 million people living close to the official poverty line left California for other states from 2005 through 2015, while 1.7 million people at that income level moved in from other states – for a net loss of 800,000. During the same period, the state experienced a net gain of about 20,000 residents earning at least five times the poverty rate – or $100,000 for a family of three.
Snip.
The leading destination for those leaving California is Texas, with about 293,000 economically disadvantaged residents leaving and about 137,000 coming for a net loss of 156,000 from 2005 through 2015. Next up are states surrounding California; in order, Arizona, Nevada and Oregon.
Hat tip for the above is this Zero Hedge piece, which notes “By some measures, California has the highest poverty rate in the nation. And as more and more residents leave, the burden to fund the state’s welfare exuberance will fall more and more on the wealthier (that actually pay taxes). Rather than secession, perhaps it’s time for the wealthy to join ‘the poor’ exodus and beat the crowd out of California…”
Living in a place where it is less of a struggle to pay the rent or make the mortgage payment does indeed chill most everybody out a little bit. But it is not at all obvious that what Houston — or Texas at large — enjoys is in fact a culture that is generally welcoming to immigrants in a way that is different from Scottsdale or Trenton or Missoula. What Texas does have is something close to the opposite of that: a large and very well-integrated Mexican-American community. Anglos in Texas aren’t welcoming to Latinos because we are in some way uniquely open to the unfamiliar, but because they are not unfamiliar.
This matters in ways that are not obvious if you didn’t grow up with it. My native West Texas, along with the whole of the border and much of the rest of the state, has a longstanding, stable Anglo–Latin hybrid culture. Houston does, too, but Houston, being a very large city, is a little more complicated; I had lunch yesterday with a conservative leader who chatted amiably with the staff in Spanish at . . . an Indian restaurant.
That robust hybrid culture ensures that the people Anglos hear speaking Spanish are not always poor, not mowing the lawn or cleaning a hotel room, that they are not usually immigrants, not people who cannot speak or read English — not alien. They are neighbors who, if you are lucky, make Christmas tamales. And they might be your employer or your employee, the guy who sells you a car or approves your car loan, a pastor at your church, a professor, a member of your Ultimate Frisbee team . . . or an illegal immigrant, or a criminal, or someone who is in some way unassimilated, alien, or threatening. When one out of three people in your county is “Hispanic” — a word that in Texas overwhelmingly means “Mexican-American” — then you tend to know Hispanic people of all descriptions: the good, the bad, and the ordinary.
That is not the case in, say, Arlington, Va., which does not have a large and well-assimilated Mexican-American population but does have a large and poorly assimilated population of Spanish-speaking immigrants. The two things are not the same — more like opposites. Add to that the fact, sometimes lost on Anglos, that there is no such thing as a “Hispanic” culture or population, that people with roots in Mexico do not think of themselves as being part of a single cultural group that includes people from Central America and South America. A while back, I heard an older fellow of Mexican background complaining about the Guatemalans moving into his area — and he was an illegal immigrant. That’s a funny reality: In Texas, even some of the illegals don’t think that we can let just anybody cross the border. But ethnic politics is a strange business: In West Texas, young whites without much money (college students and the like) who would never for a moment seriously consider moving into a low-income black neighborhood will not give a second thought to moving into a largely Hispanic neighborhood.
All of which is not to say that Texas does not have a fair number of poorly assimilated Spanish-speaking immigrants: It surely does, especially in the big cities. (People forget how urban Texas is: Six of the 20 largest U.S. cities are in Texas.) But it is easier to accommodate — and, one hopes, to assimilate — those newcomers when you have a culture of mutual familiarity and trust, which is based not on newcomers but on oldcomers. Texas’s ancient Mexican-American community — whose members famously boast, “We didn’t cross the border, the border crossed us!” — is a kind of buffer that makes absorbing newcomers less stressful.
Huntington Beach residents Chris Birtwistle and Allison Naitmazi were about to get married and decided it was time to buy a home.
They wanted to stay in the area but couldn’t find a house they both liked and could reasonably afford — despite a dual income of around $150,000.
So they decided to go inland — all the way to Arizona, where they recently opened escrow on a $240,000, four-bedroom house with a pool just outside Phoenix. Their monthly mortgage payment will be about $500 less than what they paid for a two-bedroom apartment in the Orange County beach community.
#2 Out of all 50 states, the state of California has been ranked as the worst state for business for 12 years in a row…
#3 California has the highest state income tax rates in the entire nation. For many Americans, the difference between what you would have to pay if you lived in California and what you would have to pay if you lived in Texas could literally buy a car every single year.
#4 The state government in Sacramento seems to go a little bit more insane with each passing session.
#5 The traffic in the major cities just keeps getting worse and worse. According to USA Today, Los Angeles now has the worst traffic in the entire world, and San Francisco is not far behind.
A Democrat-sponsored bill in the California legislature guarantees free healthcare for all, without specifying a way to pay for it. Maybe they’ll institute a unicorn tax… (Hat tip: Stephen Green at Instapundit.)
With no choice, there is no competition, unless you are wealthy enough to leave the state for medical care. However, this is a golden opportunity for medical tourism companies!
There will be a limited supply of doctors, as those who don’t want to go through the bureaucratic hoops for procedures and payment will also leave the state.
Clinicians will be forced to make their treatment decisions based on the state-run rules: Why choose surgery when a pill will do?
Shockingly, some funds need to be directed to other budget items instead of perks for illegal aliens (refer to Oroville Dam for a handy reference).
Medicare, the system that is the foundation for this proposal, is rife with waste, fraud and abuse (e.g., 3 Floridians bilked the system for $1 billion).
Co-pays and deductibles will be transformed into monies paid for non-state government healthcare services (like the Canadians who cross into the United States to obtain MRI’s and other innovative treatments).
Public oversight will translate into political wheeling-and-dealing strictly for the benefit of those plugged into the rigged system. An indication that Sacramento may be headed for such a system, I offer this piece published in The Sacramento Bee for consideration: Why California must accept more corruption.
The cost of drugs has soared, despite Obamacare. As an example, I had a skin medication that would cost me $150 for an annual supply. The same medication now costs nearly $1000 a year, and I no longer use it.
In order to further bestow members of the ruling Democratic coalition with rights and privileges mere citizens don’t enjoy, California’s Senate Bill 807 proposes making teachers exempt from state income tax. Some pigs are evidently way, way more equal than others…
California hikes its gas taxes yet again, making them the highest in the nation.
Pension liabilities are pinching in Gilroy, California: “Gilroy’s three biggest public employers have amassed more than $183 million in unpaid pension liabilities. That’s likely more than ever, and a figure that, absent major reform, will grow and siphon budget funds from essential public services, say officials and pension experts. In Gilroy, 23 city pensions exceed $100,000 and more than 60 exceed $70,000.” (Hat tip: Pension Tsunami.)
Court to determine whether California’s public employee union members can simply continue to buy years of service rather than actually working them.
Silicon Valley slows down. “Tech companies in San Francisco and San Mateo counties lost 700 jobs from January to February and tech employment has dropped by 3,200 jobs since hitting a peak last August.”
What the lords of Silicon Valley actually think: “Inequality is a feature, not a bug.”
“Hotel construction continues apace in the United States, and dozens of new properties are expected to open this year in two major corporate and tourist destinations, New York and Los Angeles. But the three other cities with the most hotels projected to open in 2017, according to the industry research company STR, are all in Texas — Dallas, Houston and Austin.” Notice the implied condescension in the NYT piece: New York and LA are real places, whereas Dallas, Houston and Austin are “other cities.”
More:
The number of new hotels in Texas is notable. In 2017, Marriott plans to open eight hotels in Austin, seven in Houston and 23 in the Dallas-Fort Worth area, according to the company. Ninety-two other Marriott hotels are in the planning stages for the three metro areas. Hilton says it is planning for 75 new hotels there. InterContinental Hotels Group has more than 100 hotel projects in the Austin, Dallas and Houston metro areas, including the Candlewood Suites, Crowne Plaza, Even Hotels, Holiday Inn Express, Holiday Inn, Hotel Indigo, InterContinental Hotels and Resorts and Staybridge Suites brands.
Austin is home to the state capital; the University of Texas at Austin, a campus with 50,000 students; and a long list of technology companies. Its growing recreation and dining scene is attracting more leisure travelers, filling guest rooms on weekends and making the city “more of a seven-day-a-week hotel market,” according to Tim Powell, the managing director for development for Hilton’s southwest region.
“A state senator is removed from the chamber for her comments about Tom Hayden and Vietnam.” Namely for noting that Hayden supported “a communist government that enslaved and/or killed millions of Vietnamese, including members of my own family.” Sen. Janet Nguyen (R-Garden Grove) came to America as a Vietnamese refugee, and Democrats were incensed she was allowed to speak truth to power when it came to hagiography for one of their own. (Hat tip: Instapundit.)
February’s quarterly auction of carbon dioxide emission allowances under California’s cap and trade program was another financial washout for the state.
Results for last week’s auction were posted Wednesday morning, revealing that just 16.5 percent of the 74.8 million metric tons of emission allowances were sold at the floor price of $13.57 per ton.
The state auctions emission allowances to polluters and speculators as part of its program to reduce greenhouse gases. The proceeds are supposed to be spent on public programs to slow climate change.
February’s auction is being closely watched by market analysts because the last three quarterly auctions in 2016 posted sub-par results.
Almost all of February’s proceeds went either to California’s utilities, who sell allowances they receive free from the Air Resources Board, or the Canadian province of Quebec, which offers emission allowances through California. Both are first in line when auction proceeds are apportioned.
The ARB was offering 43.7 million tons of state-owned emission allowances, but sold just 602,340 tons of advance 2020 allowances, which means the state will see only $8.2 million, rather than the nearly $600 million it could have received from a sellout.
San Rafael has the the highest pension costs in California by percentage of their total budget (18%). “Money that goes to one thing can’t go to another thing, so if you’re spending almost $1 out of $5 on pension payments, that is a lot less money available for tangible public services such as filling potholes, keeping the library open and making sure there is sufficient police protection.”
Remember Anthony Silva, mayor of formerly bankrupt Stockton? He’s been arrested again, this time for embezzling “at least $74,000 from the Stockton Kids Club over the past five years.” That would be the same Anthony Silva who is a member of Mayors Against Illegal Guns, whose own guns were stolen and used in crimes, and who was also arrested for “for playing strip poker with minor and giving them alcohol while at a youth camp.” Given such august leadership, I can’t imagine how Stockton went bankrupt… (Hat tip: Dwight.)
I would like to celebrate Austin Austin having the shortest commute time in this study of major cities except, since I now experience that commute time every weekday, I can tell you that 16 minute estimate is utter crap. Maybe Austin is the best if the commute time for other cities is similarly underestimated. By contrast, the Austin rental rate of $476 a week seems slightly high, while the London rate of $489 a week seems way too low…
Los Angeles-based fashion company Nasty Gal declares bankruptcy. Also, nice proofreading on this subhead, LA Times: “Why couldn’t they the company hold on to shoppers?” Note: That’s still up for a story published February 24th…
“L.A. County Sheriff’s Department switches from silver to gold belt buckles at a cost of $300,000.” That’s some might fine resource allocation there, Lou… (Hat tip: Stephen Green at Instapundit.)
It’s been a long time since I compiled one of these, so this is going to be monstrously large. Also, just as I was finishing this up, the San Diego Chargers announced they were moving to Los Angeles. Hell, LA has proven in the past it’s incapable of adequately supporting one NFL franchise, much less two…
When you look at the full recession records, not just the last few years, Texas is still kicking California’s ass. “Over that time frame, Texas has grown more than THREE TIMES FASTER than California. Actually 3.4 times faster (Texas grew at a 4.1% annual rate vs. 1.2% for California).” (Hat tip: Pension Tsunami.)
“A just released study calculates the total state and local government debt in California as of June 30, 2015, at over $1.3 trillion.” (Hat tip: Pension Tsunami.)
California faces its first budget deficit since 2012. Or at least it’s first official deficit since then. (Hat tip: Pension Tsunami.)
Increasingly, inside the party, it’s been the furthest Left candidates that win. In the Democrat-only Sanchez vs. Harris race for the U.S. Senate, the more progressive candidate triumphed easily, with a more moderate Latina from Southern California decimated by the better funded lock-step, glamorous tool of the San Francisco gentry Left.
Gradually, the key swing group — the “business Democrats” — are being decimated, hounded by ultra-green San Francisco billionaire Tom Steyer and his minions. No restraint is being imposed on Gov. Brown’s increasingly obsessive climate change agenda, or on the public employee unions, whose pensions could sink the state’s finances, particularly in a downturn.
The interior parts of California already rank near the bottom, along with Los Angeles, in terms of standard of living — by incomes, as opposed to costs — in the nation. Compared to the Bay Area, which now rules the state, the more blue-collar, Latino and African American interior, as well as much of Los Angeles, account for six of the 15 worst areas in terms of living standard out of 106 metropolitan areas, according to a recent report by Center for Opportunity Urbanism demographer Wendell Cox.
Given the political trends here, it’s hard to see how things could get much better. The fact that most new jobs in Southern California are in lower-paying occupations is hardly promising. In contrast, generally better-paying jobs in manufacturing, home-building and warehousing face ever-growing regulatory strangulation.
Sadly, the ascendant Latino political leadership seems determined to accelerate this process. In both Riverside and San Bernardino, pro-business candidates, including San Bernardino Democrat Cheryl Brown, lost to green-backed Latino progressives.
For whatever reason, Latino voters and their elected officials fail to recognize that the increasingly harsh climate change agenda represents a mortal threat to their own prospects for upward mobility. Before this week’s election, California policy makers could look forward to Washington imposing such policies on the rest of the country; now our competitor regions — including Utah, Arizona, Nevada and Texas — can double down on growth. Expect to see more migration of ambitious Californians, particularly Latinos, to these areas.
California is on the road to a bifurcated, almost feudal, society, divided by geography, race and class. As is clear from the most recent Internal Revenue Service data, it’s not just the poor and ill-educated, as Brown apologists suggest, but, rather, primarily young families and the middle-aged, who are leaving. What will be left is a state dominated by a growing, but relatively small, upper class, many of them boomers; young singles and a massive, growing, increasingly marginalized “precariat” of low wage, often occasional, workers.
California is about to face the music as Donald Trump becomes 45th President of the United States. Their Sanctuary Cities violate federal law and after Jeff Sessions is confirmed as Attorney General (and he will be), they are going to either have to knock that off or have funding to their law enforcement and their government stripped away. Sessions can’t wait and I have to say, I will enjoy watching this showdown. Los Angeles Mayor Eric Garcetti said that Trump pulling 37% of federal funding for their governments would cause chaos and upheaval. Yes, it will… it will also cause California to go absolutely toes up bankrupt.
It’s simple. They can either follow the rule of law, or the free flow of money from DC gets cut off. In 2015, that amounted to about $93.6 billion. That’s a lot of money to turn away because you insist on not following the law. Let’s see how long that lasts. I love the thought of this. It’s about time Sanctuary Cities were stopped and this is an excellent way to do it. New York, Chicago and DC will all face the same choice by the way. Imagine the meltdown. Good times.
California has 39 million people — 43% larger than the 2nd largest state (Texas). Such GDP comparisons don’t tell us much in terms of the PROSPERITY of a nation. Or a state.
The proper comparison is PER CAPITA GDP. Using that more meaningful figure, CA is the 10th most prosperous state.
But an even MORE accurate comparison is to take the per capital GDP and adjust it for COL. Because of California’s high taxes, crazy utility laws, stifling regulations (paid by consumers) and sky-high housing costs, CA in 2014 ranked WAY down in 37th place. Only 13 states were worse.
Governor Jerry Brown announced today that the budget was $1.4 billion in deficit. At the end of last year, the state announced that it was giving state employees a raise which would cost taxpayers over $2 billion over the next four years. Do you think there is a connection?
A story ran locally in Southern California saying that over 105 employees in Santa Monica, a medium sized city, earn over $300,000 a year. The Governor of the state of California earns $174,000 per year. If you do the research, you will find that there are over 200 state employees that earn more than that
When I was deciding what I wanted to do in my younger years, my mother told me I should go to work for the government, good benefits she said. I knew I would be bored and would die young if I became a government drone. My little sister listened to her. Today, my little sister is retired on a great government pension, I still fight to pay my taxes. Given the pay that even the lowest government official receives, my mother was right.
Our government pension system is over $500 billion upside down. Retired state employee health benefits add an additional $300 billion or more to that deficit. The system is out of control. Pay and benefits to government employees at state and local levels is incomprehensible, and the government leaders still come to you and I and ask us to foot the bill for their indulgences.
What is even more evil about the system is that government unions, led by thugs who force people to pay union dues for the privilege of having a government job, take the money from the government employees and put it into the political system to pay for the campaigns of the Governor, statewide elected officials, legislators and city councils with whom these unions then negotiate for the out-of-control pay and benefits. If anyone tries to limit them, as I once tried by tying everybody’s salaries to the Governor’s salary, they are marked for political defeat. And the system perpetuates itself, taxes to employees to unions to politicians, as it did in the Soviet Union, until the whole system collapses.
Driven by rising out-migration and falling birth rates, California’s population growth has stalled, leading analysts to consider a possible forecast of a so-called “no-growth” period in the future.
Although Americans nationwide have been flooding south and west for years, the Golden State has become an exception. Nearly 62 percent of Americans lived in the two regions, Justin Fox observed from Census figures. “That’s up from 60.4 percent in the 2010 census, 58.1 percent in 2000, 55.6 percent in 1990 — and 44 percent in 1950. The big anomaly is California, which is very much in the West, yet has lost an estimated 383,344 residents to other states since 2010.”
“The state’s birth rate declined to 12.42 births per 1,000 population in 2016 — the lowest in California history,” the San Jose Mercury News noted, citing a state Department of Finance report. “In 2010, the last time figures were compiled, the birth rate was 13.69 per 1,000 population.”
Last week California’s progressive lawmakers announced that they’ve put former Attorney General Eric Holder, now a Covington & Burling partner, on retainer as the state’s outside counsel. “This is potentially the legal fight of a generation, and with Eric Holder we’ve added a world-class lawyer,’’ said Senate majority leader Kevin de León.
This is odd. Typically states hire outside counsel for help with specific cases, but the legislature is paying Mr. Holder $25,000 a month for three months under the initial contract, apparently for 40 hours a month and the privilege of his attention if something comes up.
At least one California assemblyman thinks that the Holder deal is illegal. “California courts have interpreted the civil service mandate of article VII of forbidding private contracting for services that are of a kind that persons selected through civil service could perform ‘adequately and competently.'”
“California state firefighters will receive substantial raises of up to 13.8 percent this year, according to newly released details from a proposed contract that their union negotiated just before Christmas.” Just the thing a state with a budget deficit needs…
“The evidence is clear that standards of living are substantially higher in Texas than in California, which has a model of excessive government.” More: “During the last decade, economic growth in the real private sector has increased by 29 percent in Texas compared with only 14 percent in California. Job creation increased by 1.2 million in California compared with 1.7 million in Texas, which has a labor force two-thirds of that in California. Remarkably, Texas’ job creation was roughly one-third of total civilian employment increases nationwide.”
CalPERs plans to sell $15 billion worth of equities over the next two years. Also: “CalPERS’ current portfolio is pegged to a 7.5% return and a 13% volatility rate” even though the most recent returns were “a 0.6% return for the fiscal year ended June 30 and a 2.4% return in fiscal 2015.”
Overseers of the nation’s largest pension trust fund, the California Public Employees Retirement System (CalPERS), last month reduced – albeit reluctantly – its projection of future earnings by a half-percentage point.
With earnings on investments the last two years barely exceeding zero, CalPERS has been compelled to sell assets to make its pension payments – which far outstrip contributions from state and local governments and their employees.
Reducing the “discount rate” to 7 percent will force employers, and perhaps employees, to kick billions of more dollars into the system to slow the growth of CalPERS’ “unfunded liabilities,” as the $150-plus billion debt is termed.
However, the extra contributions generated by lowering the discount rate will not erase that debt, which is likely to keep growing if CalPERS’ investment earnings continue to fall short, as many economists expect. In fact, CalPERS’ own advisers see a prolonged period of relatively low earnings, and say the system shouldn’t count on more than 6.2 percent.
Rationally, the discount rate should have been lowered by at least another full percentage point. But CalPERS has already increased its mandatory contributions by 50 percent to make up for investment losses during the Great Recession and other factors, and cutting the discount rate to 6 percent would probably mean bankruptcy for a number of local governments, especially some cities.
This is why the CalPERS board must do far more — starting with, on a large scale, finally embracing pension reforms and, on a smaller scale, shuttering an over-the-top corner of the CalPERS website that says it’s a myth that pension costs are crowding out “government services like police and libraries.”
It’s no myth. The Los Angeles Times reported last month that pensions and retirement health benefits now consume 20 percent of revenue in Los Angeles and Oakland and a stunning 28 percent in San Jose. While the state government is in better shape than most local governments, it’s beginning to feel the strain as well. On Wednesday, Bloomberg reported that beginning in April, the state will increase vehicle registration fees from $46 to $56 to help cover the soaring cost of pensions for California Highway Patrol officers. In 2000, the state had to pay about one-eighth of annual CHP pension costs. Now it must pay about half.
“Home values in San Francisco have doubled in a matter of four years. Since 2012 the typical San Francisco home went from $600,000 to $1,200,000. The Bay Area is under a tech based hypnotic spell and foreign money just can’t get enough of million dollar crap shacks in San Francisco. As we all know trees do not grow to the sky with unlimited potential and at a certain point the laws of reality have to hit. Only 11 percent of households in San Francisco can actually afford to purchase the typical $1.2 million crap shack.”
How America’s restaurant bubble is about to burst. Actually, the piece focuses mainly on the impossibility of running a profitable fine dining restaurant in San Francisco and other similarly expensive locales. (Hat tip: Zero Hedge.)
The Census bureau says that Texas continued to grow in 2016. “Another big gainer was Texas, whose addition of about 433,000 people accounted for 19% of the country’s growth. The state, with 27.9 million people, grew from a relatively strong flow of immigrants and people relocating there from other states.”
Texas experienced a net gain of out-of-state residents in 2015, with 107,689 more people moving to Texas than Texas residents moving out of state. This is a 4 percent increase in the net gain of Texas residents from 2014 (103,465 residents).
The total number of residents moving to Texas from out of state in 2015 increased 2.8 percent year-over-year to 553,032 incoming residents. The highest number of new Texans came from California (65,546), followed by Florida (33,670), Louisiana (31,044), New York (26,287) and Oklahoma (25,555).
Texas once again ranked third in the nation for number of residents moving out of state (445,343) in 2015. The most popular out-of-state relocation destinations for Texans were California (41,713), Florida (29,706), Oklahoma (28,642), Colorado (25,268), and Louisiana (19,863).
Arizona and Florida managed to dethrone Texas for the relocation top spot for the first time in a dozen years.
“Police in Kern County, California, have killed more people per capita than in any other American county in 2015.” Caveat the first: The Guardian. Caveat the second: Thanks ever so much for that full-frame background video designed to bring by computer to a screeching halt, Guardian…
Students at California law schools are doing horribly on the bar exam. “Law schools are admitting less and less qualified students in an effort to bolster their bottom lines. And why do their bottom lines need to be bolstered? Because they have too many faculty relative to student demand for the schools, and are either reluctant or unable to reduce the size of the faculty to “right size” the law school relative to present demand for the JD.” (Hat tip: Instapundit.)
Canadian apparel maker Gildan Activewear Inc. has won a bankruptcy auction for U.S. fashion retailer American Apparel LLC (curxq) after raising its offer to around $88 million, a person familiar with the matter said Monday.
Gildan’s takeover marks the end of an era for the iconic Los Angeles-based company, which was founded in 1998 by an eccentric Canadian university drop-out and grew to become a part of U.S. popular culture thanks to its racy advertising.
Gildan will not take any of American Apparel’s 110 stores, but will own its brand and assume some of its manufacturing operations, the source said. The deal is subject to a bankruptcy judge approving it on Thursday.
State of California: You can’t mention actresses ages, because Reasons. IMDB: Free speech. Bite me.
And if you hadn’t seen them already, two previous BattleSwarm stories that touch on the Texas vs. California issue: