Posts Tagged ‘CalPERs’
Thursday, March 31st, 2016
Lots of Texas vs. California linky goodness, much of it via Jack Dean at Pension Tsunami, who’s been emailing me links of significant interest.
Texas continues to grow:
As last week’s US Census Bureau population estimates indicated, the story of population growth between 2014 and 2015 was largely about Texas, as it has been for the decade starting 2010 (See: “Texas Keeps Getting Bigger” The New Metropolitan Area Estimates). The same is largely true with respect to population trends in the nation’s largest counties, with The Lone Star state dominating both in the population growth and domestic migration among 135 counties with more than 500,000 population.
Snip.
Houston, which is the fastest growing major metropolitan area (over 1 million population) in the nation includes the two fastest growing large counties. Fort Bend County added 4.29 percent to its population between 2014 and 2015 and now has 716,000 residents. Montgomery County grew 3.57 percent to 538,000. In addition to these two suburban Houston counties, Harris County, the core County ranked 16th in growth, adding 2.03 percent to its population and exceeding 4.5 million population.
Dallas-Fort Worth, the second fastest-growing major metropolitan area has two counties among the top 20. The third fastest-growing county is Denton (located north of Dallas-Fort Worth International Airport), which added 3.42 percent to its population over the past year and now has 781,000 residents. Collin County, to the north of Dallas County, grew 3.17 percent and now stands at 914,000 residents. Its current growth rate would put Collin County over 1 million population by the 2020 census.
Travis County, with its county seat of Austin, grew 2.22 percent to 1,177,000 and ranked 12th. Bexar County, centered on San Antonio grew 2.01 percent and ranks 17th.
Overall, Texas had four of the five fastest growing large counties, and seven of the top twenty. California had none. (Hat tip: Pension Tsunami.)
The Austin metropolitan area passes 2 million people.
The California Policy Center has a devestating roundup of what’s wrong with California’s economy. To wit:
- “A now has by far the nation’s highest state income tax rate. We are 34% higher than 2nd place Oregon, and a heck of a lot higher than all the rest”
- “CA has the highest state sales tax rate in the nation. 7.5% (does not include local sales taxes).”
- “California in 2015 ranked 14th highest in per capita property taxes (including commercial) – the only major tax where we are not in the worst ten states. But the 2014 average CA single-family residence (SFR) property tax is the 8th highest state in the nation. Indeed, the median CA homeowner property tax bill is 93% higher than the average for the other 49 states.”
- “California has a nasty anti-small business $800 minimum corporate income tax, even if no profit is earned, and even for many nonprofits. Next highest state is Rhode Island at $500 (only for “C” corporations). 3rd is Delaware at $175. Most states are at zero.”
- “California’s 2015 ‘business tax climate’ ranks 3rd worst in the nation – behind New York and anchor-clanker New Jersey. In addition, CA has a lock on the worst rank in the Small Business Tax Index – a whopping 8.3% worse than 2nd worst state.”
- “The American Tort Reform Foundation in 2015 again ranks CA the ‘worst state judicial hellhole’ in U.S. – the most anti-business.”
- “CA public school teachers the 3rd highest paid in the nation. CA students rank 48th in math achievement, 49th in reading.”
- “California’s real poverty rate (the new census bureau standard adjusted for COL) is easily the worst in the nation at 23.4%. We are 57.3% higher than the average for the other 49 states.”
- “Of 100 U.S. real estate markets, in 2013 CA contained by far the least affordable middle class housing market (San Francisco). PLUS the 2nd, 3rd, 5th, 6th and 7th.”
It’s like a whole bunch of Texas vs. California roundup statistics all in one big green ball of fail. Read the whole thing. (Hat tip: Pension Tsunami.)
“California’s 50% [minimum wage] increase would eliminate nearly 700,000 jobs—which means higher unemployment for the poor and least skilled in particular.”
Why did Carl’s Jr. flee California? Taxes, regulations and lawsuits.
CKE Restaurants CEO Andy Puzder told the Wall Street Journal in 2013, “California is not interested in having businesses grow.”
The article points out that many factors, including local building regulations, make one community less desirable than another for businesses.
For example, it takes 60 days in Texas, 63 in Shanghai, and 125 in Novosibirsk, Russia for one of CKE’s restaurants to get a building permit after signing a lease. But in Los Angeles, Ca. it takes a whopping 285 days.
Puzder added, “I can open up a restaurant faster on Karl Marx Prospect in Siberia than on Carl Karcher Boulevard in California.” The street in California is ironically named for the restaurant chain’s founder.
California’s labor regulations may also play a role in a company’s desire to seek alternative locations. In that same interview with WSJ, Puzder said his company had spent $20 million in the state over the past eight years on damages and attorney fees related to class-action lawsuits.
(Hat tip: Pension Tsunami.)
Justice Scalia’s death dooms the Friedrichs vs. California Teacher’s Association lawsuit.
“If a Stanford Institute for Economic Policy Research’s estimate is accurate, public pension debt in California is even worse than feared. Preliminary calculations from a forthcoming SIEPR study peg the unfunded retirement tab for state and local government employees at more than $1.2 trillion.” (Hat tip: Pension Tsunami.)
Texas unemployment rates drops to 4.4%.
San Bernardino’s bondholders get screwed so the bankrupt city can continue sending money to CalPERS. (Hat tip: Pension Tsunami.)
California’s colleges are so money-hungry they’re screwing in-state students out of admissions so they can charge more to out-of-state applicants, including those who wouldn’t normally be able to get in. Sort of like the UT admissions scandal, but less politically connected and more widespread and money-grubbing… (Hat tip: Instapundit.)
But there’s one type of student California admissions isn’t keeping out: antisemites. (Hat tip: Director Blue.)
Even the supposed beneficiaries of California’s high speed rail fantasy have become disillusioned with it.
A hot relocation to Texas rumor just in: “Plano – new home of Toyota Motor’s North American headquarters – has been mentioned as a possible relocation site for a Wichita-based subsidiary of conglomerate Cargill.”
Tags:Antonin Scalia, Austin, Bexar County, California, CalPERs, Dallas, Fort Bend County, Friedrichs vs. California Teachers Association, Ft. Worth, Houston, Montgomery County, pension crisis, Plano, Texas, Travis County, unions, Welfare State
Posted in Austin, Democrats, Economics, Supreme Court, Texas, unions, Welfare State | 3 Comments »
Thursday, February 25th, 2016
Been too long since I did a Texas vs. California roundup, so here it is:
Dark Age California:
There are large areas of Central California that resemble life in rural Mexico. Within a radius of five miles I can go to stores and restaurants where English is rarely spoken and there is no racial or cultural diversity—a far cry from Jeb Bush’s notion of an “act of love” landscape.
With unemployment at 10% or more in the interior of the state, with the public schools near the bottom in the nation, and with generous entitlements, it is no accident that one in six in the nation who receive public assistance now live in California, where about a fifth of the population lives below the poverty line.
One in four Californians also were not born in the United States; more than one in four who enter the hospital for any cause are found upon admittance to suffer from Type II diabetes. The unspoken responsibility of California state government is to bring state-sponsored parity to new arrivals from Oaxaca, and to do so in ideological fashion that ensures open borders and more government. It is the work of a sort of secular church, and questioning its premises is career-ending blasphemy.
“California has come a long way to dig itself out of budget deficits, but the state remains on shaky ground due to nearly $400 billion in unfunded liabilities and debt from public pensions, retiree health care and bonds.” More: “It’s California’s debt and liabilities that are concerning financial analysts, particularly the state’s rapidly growing unfunded retiree health care costs, which grew more than 80 percent over the past decade. California has promised $74 billion more in health and dental benefits to current and retired state workers than the state has put aside.” (Hat tip: CalWatchdog.)
And new accounting rules make those unfunded liabilities harder to ignore.
The problem might not be quite as bad as it is did not CalPERS and CalSTARS insist on politically correct investments. (Hat tip: Pension Tsunami.)
San Francisco political officials indicted:
A retired city employee and a former city commissioner who are at the center of bribery allegations involving Mayor Ed Lee were charged with multiple felonies including bribery and money laundering, San Francisco District Attorney George Gascon announced at a news conference Friday afternoon.
Also charged Friday was political consultant and former San Francisco Unified School District Board of Education President Keith Jackson, who pleaded guilty last year to racketeering charges.
The district attorney’s office charged recently retired Human Rights Commission employee Zula Jones, ex-HRC commissioner Nazly Mohajer and former political consultant Keith Jackson.
Remember that Zula Jones and Nazly Mohajer were fingered by Leeland Yee’s attorneys as being the go-betweens for bribing Lee. This brings up the question (yet again): Why hasn’t Lee himself been indicted?
And speaking of California government officials being indicted: “Retired Los Angeles County Sheriff Lee Baca pleaded guilty Wednesday to lying to federal investigators, a stunning reversal for the longtime law enforcement leader who for years insisted he played no role in the misconduct that tarnished his agency.” (Hat tip: Dwight.)
Jerry Brown vetoes kangaroo court minimums for college sexual assault cases.
“Brown pushed for the giant pension fund CalPERS to lower its assumed investment return from 7.5% to 6.5%. Given that the world is headed towards deflation and that CalPERS earned only 2.4% for the fiscal year ended June 30, 2015, Brown’s request seemed entirely reasonable. Instead, the board approved a staff proposal to move to the 6.5% target over 10 years.” (Hat tip: Pension Tsunami.)
CalPERS board President Rob Feckner, serving his twelfth term, casts deciding vote against proposal for term limits for board members. “Feckner was president of the California School Employees Association for four years and executive vice president of the California Labor Federation for five. Such a conflict of interest wouldn’t be tolerated with the president of other boards of directors. But with CalPERS, it’s par for the course.” (Hat tip: Pension Tsunami.)
San Diego voters: We want pension reform! Union-stacked Public Employment Relations Board (PERB): Get stuffed, peasants! Result: Lawsuit. (Hat tip: Pension Tsunami.)
The middle class is fleeing California. “In 2006, 38 percent of middle-class households in California used more than 30 percent of their income to cover rent. Today, that figure is over 53 percent.”
California tech industries continue their exodus to Texas:
The tech industry in the Bay Area has become a victim of its own success – and state policies. Like many other California businesses, tech firms are relocating or expanding operations in others states – particularly Texas – at an alarming rate.
Some companies spend significant amounts of time and money finding and training the right workers, only to see them poached by a flashy startup within a number of months. The need for a more stable workforce was one of the main reasons cloud-computing company LiveOps Cloud moved from Silicon Valley to a suburb of Austin, Texas, CEO Vasili Triant told the San Francisco Chronicle.
Other reasons to move or expand out-of-state are government-created: high taxes, burdensome regulations, unaffordable housing due to excessive development fees and restrictive land-use policies. California’s highly-educated workforce is not so unique anymore, and its quality of life has been tarnished by regulatory and affordability issues. Texas, by contrast, has no personal income tax and no corporate income tax (though it does have a less-onerous gross margins tax), and is universally hailed for having one of the friendliest business climates in the nation.
Google, Facebook, Apple, Dropbox, Oracle and nearly two dozen other Bay Area tech companies have all built or expanded facilities in Texas just since 2014, the Chronicle reported. There have been more than 1,500 publicly reported California “disinvestment events” across all industries over the past seven years, according to a November report from Spectrum Location Solutions, an Irvine-based business relocation consulting firm, although it estimated the actual tally at as high as 9,000. A California business “can save 20 percent to 32 percent of labor costs by relocating a facility out of state,” Spectrum president Joe Vranich told us last year.
More on the theme:
Between 1997 and 2000, during the peak of the dot-com boom, the Bay Area was a net importer of Texans: About 1,500 more households moved into the region from Texas than vice versa, bringing an additional $191 million (2015 dollars) in taxable income into the region, according to IRS data, which tracks the movement of taxpaying residents.
The trend changed in the early 2000s, and Texas has been a net importer of Bay Area households ever since. Between 2009 and 2012, as the recession was winding down and the second tech boom was revving up, the region lost about 1,430 households to Texas, and nearly $390 million in taxable income.
Snip.
I had a guy working for me (in the Bay Area) making $200,000 a year, struggling to pay his bills,” company CEO Triant said. “In lots of places in the country you’re living high on the hog on $200,000. … As far as work life balance and employee morale, we have absolutely seen a remarkable increase since moving here; it’s night and day.”
The firm still keeps a small Bay Area office, and Triant speaks fondly of his hometown of San Diego and California in general.
But when it comes to building a company and running a business, he has found a new home in Texas. “I want my employees to be able to have a good quality of life, live in a city with low crime rates, good schools,” he said. “And that’s what we’re doing here.”
“It’s no coincidence that Texas and Florida have thrived while New York and California have not. High levels of taxes, spending, and regulations make it more difficult for entrepreneurs to be successful. When entrepreneurs cannot expand their businesses and hire new workers, everyone is hurt, not just the rich.”
In the course of verifying a Rep. Joe Straus campaign ad, Polifact confirms that Texas has grown twice as fast as the rest of the country.
The University of California, Berkeley, is running a $150 million deficit this year. (Hat tip: Pension Tsunami.)
UC Academic Senate rejects task force’s proposed retirement benefits plan that, keeping with Jerry Brown’s modest pension reforms, would pay them a measly $117,020 pension benefit. (Hat tip: Pension Tsunami.)
“What’s more important: High-speed rail or water? Proponents of a proposed ballot measure would force voters to choose just that. The measure would redirect $8 billion in unsold high-speed rail bonds and $2.7 billion from the 2014 water bond to fund new water storage projects.”
Speaking of water restrictions, looks like Californians will get to enjoy them for another year.
Sure, Covered California (California’s ObamaCare) may be incompetent. But it’s also corrupt. The state auditor “criticized the exchange for not sufficiently justifying its decision to award a number of large contracts without subjecting the contractors to competitive bidding.”
California is releasing many felons as part of a “mass forgiveness” program. Including a murderer who tied up a husband and wife and beat them to death with a pipe.
California adds Aloe Vera to list of cancer-causing substances. “The problem is that the 800+ chemicals listed in Proposition 65 are not devised to protect consumers, but rather serve as a cash cow for private trial lawyers to sue small business and reap the hefty settlement payout. Since 1986, nearly 20,000 lawsuits have been filed, adding up to over half a billion dollars in settlement payments by business owners.” (Hat tip: Ed Driscoll at Instapundit.)
San Francisco’s planning process is designed for gridlock.
Bankrupt San Bernardino has reached a settlement with its firefighters union.
Heh. “The movement to emblazon state legislators with the logos of their donors has collected tens of thousands of signatures for its would-be ballot initiative.The measure, formally called the ‘Name All Sponsors California Accountability Reform (or NASCAR. Get it?) Initiative,’ would require all state legislators to wear the emblems or names of their 10 top donors every time they attend an official function.” The ballot initiative has already collected 40,000 signatures…
Huge soda pop collection is coming to the Dr Pepper museum in Waco.
Tags:Austin, Berkeley, California, CalPERs, CalSTARS, Crime, Democrats, Ed Lee, high speed rail, Keith Jackson, Lee Baca, LiveOps, Nazly Mohajer, pension crisis, Regulation, Rob Feckner, San Bernardino, San Diego, San Francisco, Social Justice Warriors, Texas, unions, Vance Ginn, Waco, waste, water, Welfare State, Zula Jones
Posted in Austin, Budget, Crime, Democrats, Regulation, Social Justice Warriors, Texas, unions, Waste and Fraud, Welfare State | 6 Comments »
Tuesday, January 19th, 2016
Been a while since I did a Texas vs. California update, due to Reasons, so here’s one:
Texas ranks as the third freest state in the union, behind New Hampshire and South Dakota. California ranks second to last, just ahead of Massachusetts.
Texas added 16,300 Jobs in November.
How’s this for heavy-handed symbolism? California’s legislature plans to close one of its doors to the public, but continue to allow access to lobbyists. Because you’ve always got to see your real boss when he comes around…
California’s unfunded liabilities for CalPERS and CalSTARS spiked by $24 billion is fiscal 2014/2015. (Hat tip: Pension Tsunami.)
The much ballyhooed pension reform plan won’t make it on the ballot this year. Supporters are now aiming for 2018. Who knows how broke California will be by then… (Hat tip: Pension Tsunami.)
That’s probably because the game is rigged against pension reform. (Hat tip: Pension Tsunami.)
Jerry Brown unveils a budget in California. The budget increases are relatively modest, by California standards, but $2 billion into the rainy day fund isn’t even remotely going to cover California’s huge unfunded pension gap, and most of the structural bloat in the budget remains.
More on the same theme:
While all the numbers are constantly in flux, in 2014-15, the California Public Employees’ Retirement System saw its status fall from 76.3 percent funded to 73.3 percent, likely due to the fact that investment returns fell far below expectations. The long-neglected California State Teachers’ Retirement System, as of June 30, 2014, was 69 percent funded. Combined, the systems report unfunded pension promises of more than $160 billion.
The current budget shows steep and consistent increases in state funding to the two systems. Whereas CalPERS is set to receive $4.3 billion in state contributions in the 2015-16 fiscal year, which ends June 30, it could receive $4.8 billion the following year. CalSTRS is to receive $1.9 billion this year and about $2.47 billion next year.
In comparison, CalPERS and CalSTRS received $3.1 billion and $1.26 billion, respectively, in 2011-2012.
While it is perfectly reasonable for costs to rise over time, the rate that costs have risen for the two giant pension funds is mainly a consequence of California trying to play catch-up for years of inadequate forecasting and planning, aggravated by investment losses. But because the pension systems are run for public employees – CalPERS’ board is full of former public employee union leaders – the necessary changes and adjustments have been made far too late to avoid calamity.
(Hat tip: Pension Tsunami.)
On the actual mechanics of pension reform, and the impossibility implementing them at the state level in California. (Hat tip: Pension Tsunami.)
Part 2, examining the possibility of reform at the local level. (Ditto.)
“California government, however, serves one purpose. It always reminds America what not to do.” Also:
California has given us three new truths about government.
One, the higher that taxes rise, the worse state services become.
Two, the worse a natural disaster hits, the more the state contributes to its havoc.
And three, the more existential the problem, the more the state ignores it.
California somehow has managed to have the fourth-highest gas taxes in the nation, yet its roads are rated 44th among the 50 states. Nearly 70 percent of California roads are considered to be in poor or mediocre condition by the state senate. In response, the state legislature naturally wants to raise gas taxes, with one proposal calling for an increase of 12 cents per gallon, which would give California the highest gas taxes in the nation.
Federal judge rejects San Bernardino’s bankruptcy proposal, saying it doesn’t contain enough information.
Sacramento continues to ignore the needs of rural residents. (Hat tip: Ed Driscoll at Instapundit.)
Half of California’s driver’s licenses are issued to illegal aliens.
After years at the top of the relocation list, Texas was only the 9th biggest relocation destination in 2015.
On the other hand, Texas was still the top destination according to Allied Van Lines.
But businesses continue to flee California:
In California, costs to run a business are higher than in other states and nations largely due to the states tax and regulatory policies and the business climate shows little chance of improving. It is understandable that from 2008 through 2015, at least 1,687 California disinvestment events occurred, a count that reflects only those that became public knowledge. Experts in site selection generally agree that at least five events fail to become public knowledge for every one that does. Thus it is reasonable to conclude that a minimum of 10,000 California disinvestment events have occurred during that period….For about 40 years California has been viewed as a state in which it is difficult to do business. Gov. Jerry Brown’s Administration’s less than candid approach regarding the business climate has misled the Legislature, the news media and the public about the flight of capital, facilities and jobs to other states and nations.
The study also shows that Texas had the most new facilities opening up in the nation in 2014, with 689. California, despite being the most populous state, tied for 12th with 170.
“85% of Marin County’s special district workers collected over $100,000.” Bonus: Their pensions are underfunded too. (Hat tip: Pension Tsunami.)
“Troubled California Wine Retailer Files for Bankruptcy. Premier Cru owes customers almost $70 million for wines it never delivered.”
This county-by-county breakdown of recession recovery is full of (very slow loading) data, and I haven’t come close to digesting it yet.
Tags:bankruptcy, California, CalPERs, CalSTARS, Democrats, Elections, Jerry Brown, Marin County, pension crisis, San Bernardino, Texas, unions, waste, Welfare State
Posted in Border Control, Democrats, Elections, Texas, unions, Waste and Fraud, Welfare State | 1 Comment »
Monday, December 7th, 2015
Finally, some news from California that doesn’t involve radical islamic jihadis killing innocent people…
California lost 9,000 business HQs and expansions, mostly to Texas, 7-year study says. “It’s typical for companies leaving California to experience operating cost savings of 20 up to 35 percent.” (Hat tip: Pension Tsunami.)
Remember those “temporary taxes” that made California’s state income taxes the highest in the country? Well, to the all-devouring maw of a broke welfare state, no tax is temporary.
Los Angeles County: center of American poverty:
The Census Bureau’s 2012 decision to begin releasing an alternative measure of poverty that included cost of living has appeared to have far-reaching effects in California as politicians, community leaders and residents react to the new measure’s depiction of the Golden State as the most impoverished place in America.
The fact that about 23 percent of state residents are barely getting by has helped fuel the push for a much higher minimum wage and prompted renewed interest in affordable housing programs. It’s also put the focus on regional economic disparities, especially the fact that Silicon Valley and San Francisco are the primary engine of state prosperity.
While the tech boom and the vast increase in housing prices it has triggered in the Bay Area are national news, prompting think pieces and thoughtful analyses, the poverty picture in the state’s largest population center isn’t covered nearly as fully. Although the fact is plain in Census Bureau data, it’s not commonly understood that Los Angeles County is the capital of U.S. poverty. A 2013 study by the Public Policy Institute of California and the Stanford Center on Poverty and Inequality based on 2011 data found 27 percent of the county’s 10 million residents were impoverished, the highest figure in the state and the highest of any large metro area in the U.S.
Why California’s cities are in trouble: “The problems here, as the bankruptcies of San Bernardino and other cities have shown, are mismanagement and high costs incurred as a result of the state’s public-employee unions.” (Hat tip: Pension Tsunami.)
How CalPERS created a ticking time bomb. (Hat tip: Pension Tsunami.)
CalPERS also paid $3.4 billion in private equity firm fees since 1990, despite returns that were not that great. (Hat tip: Pension Tsunami.)
And CalPERS also has a huge problem with self-dealing and conflicts of interest. (Hat tip: Pension Tsunami.)
Texas’ largest employer is Wal-Mart. California’s largest employer is the University of California system.
But I doubt Wal-Mart has 35,065 employees who make more than $100,000 a year…
What good is California’s open meetings law if officials still feel free to ignore it? “Six decades after Brown Act passage, elected leaders still hold illegal meetings.” (Note: The Brown Act is named after Assemblyman Ralph M. Brown, D-Modesto, not either Jerry Brown.) (Hat tip: Pension Tsunami.)
Though Texas is doing much better at fiscal restraint than California, TPPF notes that Texas’ could still use additional spending restraint:
“Though Texas legislators did an excellent job by holding the total budget below population growth plus inflation during the last session, the state’s weak spending limit remains a primary cause of excessive budget growth during the last decade,” said Heflin. “Legislators can strengthen the limit by capping the total budget, basing the growth on the lowest of three metrics, and requiring a supermajority vote to exceed it. These reforms would have helped keep more money in Texans pockets where it belongs.”
“All segments of Texas housing market show strong gains in 2015.”
Mojave solar project operator files for bankruptcy.
“Fresh off of a major expansion, iconic San Francisco craft brewery Magnolia Brewing Co. filed voluntarily for Chapter 11 bankruptcy.” So a brewery that opened in 1997 is “iconic”?
“Fuhu Holdings Inc, a maker of kid-friendly computer tablets, has filed for Chapter 11 bankruptcy protection, according to a court filing on Monday.” Eh, included for completeness. That sounds like a bad business model for a startup no matter what state it was in…
Fresno Democratic assemblyman resigns to make more money in the private sector. Evidently a year to wait until his term expires was just too long to avoid climbing aboard the revolving door gravy train…
Tags:bankruptcy, California, CalPERs, Democrats, Fresno, Los Angeles, pension crisis, San Francisco, Texas, unions, waste, Welfare State
Posted in Democrats, Texas, unions, Waste and Fraud, Welfare State | No Comments »
Monday, November 2nd, 2015
California continues to suffer from drought while central Texas just suffered through torrential rains. Time for another Texas vs. California update:
Texas Adds 26,600 Jobs in September.
Texas and Florida rank at the top of education index for biggest states, while California ranks last.
The University of Texas is ranked the number one public university in America.
Meanwhile, at the University of California system: “The number of those making at least $500,000 annually grew by 14 percent in the last year, to 445, and the system’s administrative ranks have swelled by 60 percent over the last decade – far outpacing tenure-track faculty.” (Hat tip: Pension Tsunami.)
Another example of California’s perpetual trial lawyer enrichment act: “cumulative trauma” awards for employees after termination, even if they’ve never reported symptoms before. Shouldn’t every former member of the Raiders, Chargers and 49ers file a lawsuit?
Why CalPERS contributions are soaring. (Hat tip: Pension Tsunami.)
So now the California high speed rail boondoggle is going to cost $68 billion and require 36 miles of tunnels, including some dug right through an active tectonic fault. That’s ten times the length of tunnel Boston needed to dig for the Big Dig. And the cost is equivalent to the Gross Domestic Product of Sri Lanka. For a train line. It would probably be cheaper to buy cab rides for everyone traveling between Los Angeles and San Francisco, but that wouldn’t provide enough opportunities for graft…
“The parent company of the Orange County Register and Riverside Press-Enterprise filed for federal bankruptcy protection.”
Also filing for bankruptcy, yet another West coast grocery chain, Fresh & Easy.
Another bankruptcy filing: Fresno’s One Club Casino. California casinos are different from Nevada casinos, and I believe One Club is what is called a “card room”. Still, when you can’t make a profit off gambling…
California plastics company opens plant in Pflugerville. “Medway, founded in 1974, will also relocate its research and development laboratory to the new Pflugerville facility. Though Medway Plastics will continue operations in California, the company may consider relocating its headquarters to Pflugerville within the next five to eight years, the company said.”
Plans continue apace to build a Texas Gold Depository.
California Ballot initiatives weaponize emotion to centralize power.
Tags:Austin, bankruptcy, California, CalPERs, gambling, Medway, Orange County, Orange County Register, Pflugerville, Texas, Texas Gold Depository, University of Texas, Welfare State
Posted in Austin, Budget, Democrats, Texas, Welfare State | No Comments »
Wednesday, October 14th, 2015
Time for another Texas vs. California update:
Texas is the best state for small businesses.
Supreme Court to hold hearing on mandatory union dues in Friedrichs v. California Teachers Association.
“Transparent California, a watchdog website provided by the Nevada Policy Research Institute, revealed 19,728 former government retirees across California received monthly stipends of $8,333.34 or more — adding up to at least a $100,000 a year for each person.”
[Orange County] government workers receive an “average full-career pension of $81,372 for miscellaneous [employees], which includes all nonsafety retirees, and $99,366 for safety [mostly police and fire] retirees of all Orange County cities enrolled in CalPERS.”
Republicans manage to defeat California tax hikes.
California politicians excel at corruption and self-dealing. (Hat tip: Pension Tsunami.)
“If money and household wealth follow people, then Texas is doing better than any other state in nearly every way.”
San Francisco drives last existing gun store out of the city with burdensome regulations.
Judge strikes down law requiring landlords to pay up to $50,000 in relocation fees to evicted tenants.
Texas continues to earn the highest possible credit ratings.
New law mandates that CalPERS and CalSTARS must stop investing in coal. (Hat tip: Pension Tsunami.)
Stockton update: “After only one full budget year, the city has already broken three fundamental promises and is destined to return to insolvency within four years.”
Bankrupt supermarket chain Haggen has found buyers for some of its California stores.
This story is so strange I suspect it could only happen in California. (Playboy link, so it may be blocked at your place of work.) Despite the large number of guns. ($5 million for 1,200 guns? I call BS. That would mean each gun was slightly more expensive than the list price for a bolt-action Barrett .50 BMG sniper rifle. The photos mostly show pretty common hunting rifles.)
Tags:California, CalPERs, Democrats, Guns, Haggen, Orange County, Republicans, San Francisco, Stockton, Texas, unions, Welfare State
Posted in Democrats, Guns, Republicans, Texas, unions, Waste and Fraud, Welfare State | No Comments »
Thursday, August 6th, 2015
Time for another Texas vs. California roundup:
Oakland’s monthly rent has doubled in the last five years, but the Oakland police are laying off people and no longer investigate property crimes. (As Zero Hedge notes, average rent is now more than it was in San Francisco in 2012.) How’s that Blue State model of high taxes, high public union salaries, and declining basic services working out for you California?
Controlling big budget government programs through ballot initiatives.
Only voters can stop California’s union pension crisis. “Government union bosses are desperate to protect their gravy train at taxpayers’ expense. That’s why they are spinning a web of lies about the [ballot initiative].”
“With CalPERS’ actuaries demanding a pension funding increase from $3.7 billion to $7.25 billion by 2020, the state must either cut payroll by 30 percent or find a massive new tax source, like overturning Prop. 13.” (Hat tip: Pension Tsunami.)
Visualizing California’s staggering pension hole. (Hat tip: Pension Tsunami.)
Need to make up the funding shortfall for CalSTARS means cutting into actual teacher salaries.
Finally, California beats Texas in job creations. For one month. And by some 6,000 jobs.
“The Green Behind California’s Greens: A handful of superrich donors have created the illusion of a grassroots environmental movement.”
Cloud Computer company LiveOps is moving from Redwood City, California to Cedar Park.
“Thanks to our low-tax, low-regulation environment that allows all businesses to thrive, the State of Texas has become the national leader for technology job creation, and we continue to attract tech companies from around the country and around the world,” [Governor Greg] Abbott said. “On behalf of the State of Texas, I am pleased to welcome LiveOps to the Lone Star State as the company seeks to transform cloud-based customer service. With their help, the State of Texas can, and will, continue to lead the nation in job creation within the technology sector.”
Bra-maker Fashion Forms is relocating from Ventura, California to Austin.
California-based Relativity Media files for bankruptcy. Forbidden Kingdom was pretty good. Skyline was a pile of crap…
Add California to the list of Democratic Party controlled polises trying to kill Uber.
The War on Photography continues apace in Northern California.
Facebook is opening a $1 billion data center in Ft. Worth This means they’ll be able to ignore your “Most Recent” setting and tag you in sunglasses spam ten times faster…
Tags:Austin, California, CalPERs, CalSTARS, Cedar Park, Facebook, Fashion Forms, Greg Abbott, LiveOps, Proposition 13 (California), Texas, Uber, Welfare State
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Thursday, May 21st, 2015
Time for another Texas vs. California update:
“March marked a phenomenal run of 99 consecutive months when Texas’ unemployment rate was at or below the national average.” Also: “Texas employs an impressive two and a half times more people since December 2007 than the rest of the nation combined.”
The Texas state legislature is on the verge of passing an actual conservative budget.
Will Franklin looks at local bond debt in Texas. It’s creeping up, partially due to big government advocates scheduling off-year bond elections when fewer people are voting. Even so, voters seem willing to reject big-ticket bond items.
San Bernardino’s bankruptcy plan: CalPERS gets theirs, bondholders get screwed.
And San Bernardino is planning to outsource their firefighting operations, not least of which because the fire department sucks up $7 million worth of overtime a year. And the fact their union stopped participating in bankruptcy talks didn’t help… (Hat tip: Pension Tsunami.)
How a few wealthy California environmentalists give the illusion of a mass movement.
How retroactive pension increases destroyed California budgets. (Hat tip: Pension Tsunami.)
California is a victim of repeated short-sighted thinking.
Los Angeles joins the minimum wage hike bandwagon. Expect another wave of small business closure stories over the next few months…
Why public employee unions are the elephant in the room for California’s debt crisis. (Hat tip: Pension Tsunami.)
California’s majority Democrats shelve legislative transparency bill written by Republican. This is my shocked face.
Compton teachers get laid off, Do-Da, Do-Da…
“In another corporate exodus from Torrance, California, to North Texas, Kubota Tractor Corp. and Kubota Credit Corp. announced Thursday that they will move their headquarters to Grapevine from the Los Angeles area.”
“The number of young adults admitted to California hospital emergency rooms with heroin poisoning increased sixfold over the past decade.” (Hat tip: Cal WatchDog.)
The Weinstein Company hit with $130 million lawsuit. File under: Hollywood Accounting.
Tags:bankruptcy, California, CalPERs, Crime, Democrats, environmentalism, Grapevine, Regulation, San Bernardino, Texas, Texas 84th Legislative Session, Texas Public Policy Foundation, unions, Welfare State, WILLisms
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Thursday, March 12th, 2015
Time for another Texas vs. California update:
In a worst-case scenario, CalSTARS and CalPERS might need an additional $50 billion a year between them to stay solvent.
If you haven’t taken a look at my piece on Stockton’s latest boondoggle, you probably should.
A new ballot initiative to cut California public employee pensions is due out in May, lead by former San Jose Mayor Chuck Reed, a Democrat.
Even Jerry Brown’s timid pension reforms are evidently too much for the Obama Administration, which is holding up funds over them.
A rare bit of good municipal news out of California, as Rancho Mirage declares that they’re debt free. (Hat tip: Pension Tunami.)
Prime Health Care pulls out of Daughters of Charity hospital acquisition. California Attorney general Kamala Harris may have just insured those hospitals will close instead.
Texas population to explode. (Hat tip: Push Junction.)
Land acquisition for California’s high speed rail boondoggle isn’t going swimmingly.
Malibu Golf Club files for Chapter 11. “An attorney for Malibu Associates said the company closed the golf club after defaulting on a $47-million loan from U.S. Bank, which has begun foreclosure proceedings.”
“In February, the Berkeley Health Center, a clinic that provided medical services to low-income patients, closed down in the wake of serious financial troubles, including allegations that it had mismanaged public funds.” They also left behind sensitive patient records…
Calfornia hikes water rates. Millions for the delta smelt, not one blue drop for you to drink…
Monolith Semiconductor relocates from Ithaca, New York to Round Rock.
Tags:California, CalPERs, CalSTARS, Chuck Reed, Democrats, fraud, high speed rail, Jerry Brown, Kamala Harris, Monolith Semiconductor, Rancho Mirage, Round Rock, Texas, Welfare State, Williamson County
Posted in Democrats, Texas, unions, Waste and Fraud, Welfare State | No Comments »
Thursday, February 26th, 2015
Time for another Texas vs. California roundup:
CalPERS believes that it has police powers to seize property to sell to support public employee pensions. “It is hard to imagine a bigger or more blatant example of collusion between business interests and government employees at the expense of ordinary private citizens.” Plus the impossibility of maintaining the 7.5% returns necessary for the pension fund to remain solvent. (Hat tip: Pension Tsunami.)
CalPERS and CalSTARS want direct proxy access for candidates for corporate boards.
Speaking of CalSTARS, the cost of funding it going forward looms large on California’s horizon.
Stockton exits bankruptcy.
Daughters of Charity Health Systems sues the SEIU over interference in a merger deal.
Part of the demands from California’s liberal Democratic Attorney General Kamala Harris to approve the merger include forcing currently Catholic hospitals to perform abortions.
It’s all but impossible for the Middle Class to live in Silicon Valley.
West coast port strike ends. Yet another reason to ship through Houston instead…
Texas Lt. Governor Dan Patrick files a bill for $4.6 billion in tax relief.
Texas Right to Work laws help keep the state prosperous, but more can be done.
Tags:abortion, California, CalPERs, CalSTARS, Dan Patrick, Democrats, Kamala Harris, Regulation, SEIU, Silicon Valley, Stockton, Taxes, Texas, unions, Welfare State
Posted in Democrats, Regulation, Texas, unions, Welfare State | No Comments »
