Posts Tagged ‘bankruptcy’

Texas vs. California Update for April 18, 2016

Monday, April 18th, 2016

Time for another Texas vs. California roundup, with the top news being California’s hastening their economic demise with a suicidal minimum wage hike:

  • Jerry Brown admits the minimum wage hike doesn’t make economic sense, then signs it anyway. (Hat tip: Ed Driscoll at Instapundit.)
  • Who is really behind the minimum wage hike? The SEIU:

    California’s drive to hike the minimum wage has little to do with average workers and everything to do with the Golden State’s all-powerful government employee unions.

    Nationally, the Service Employees International Union (SEIU) is known for representing lower skilled workers. But, of the SEIU’s 2.1 million dues-paying members, half work for the government. In California, that translates to clout with much of the $50 million SEIU spent in the U.S. on political activities and lobbying spent in California. In fact, out of the 12 “yes” votes for the minimum wage bill in the Assembly Committee on Appropriations on March 30, the SEIU had contributed almost $100,000 out of the three-quarters of a million contributed by public employee unions—yielding a far higher return on investment than anything Wall Street could produce.

    Unions represent about 59 percent of all government workers in California. Many union contracts are tied to the minimum wage — boost the minimum wage and government union workers reap a huge windfall, courtesy of the overworked California taxpayer.

  • “The impacts of the increase in minimum wage on workers at the very bottom of the pay scales might be just the tip of the iceberg in terms of the ramifications of the minimum wage increase.” (Hat tip: Pension Tsunami.)
  • Indeed, that hike will push government employee wages up all up the ladder.
  • “California minimum wage hike hits L.A. apparel industry: ‘The exodus has begun.'” (Hat tip: Director Blue.)
  • “Texas’ job creation has helped keep the unemployment rate low at 4.3 percent, which has now been at or below the U.S. average rate for a remarkable 111 straight months.”
  • “Number of Californians Moving to Texas Hits Highest Level in Nearly a Decade”:

    “California’s taxes and regulations are crushing businesses, and there are more opportunities in Texas for people to start new companies, get good jobs, and create better lives for their families,” said Nathan Nascimento, the director of state initiatives at Freedom Partners. “When tax and regulatory climates are bad, people will move to better economic environments—this phenomenon isn’t a mystery, it’s how marketplaces work. Not only should other state governments take note of this, but so should the federal government.”

    According to Tom Gray of the Manhattan Institute, people may be leaving California for the employment opportunities, tax breaks, or less crowded living arrangements that other states offer.

    “States with low unemployment rates, such as Texas, are drawing people from California, whose rate is above the national average,” Gray wrote. “Taxation also appears to be a factor, especially as it contributes to the business climate and, in turn, jobs.”

    “Most of the destination states favored by Californians have lower taxes,” Gray wrote. “States that have gained the most at California’s expense are rated as having better business climates. The data suggest that may cost drivers—taxes, regulations, the high price of housing and commercial real estate, costly electricity, union power, and high labor costs—are prompting businesses to locate outside California, thus helping to drive the exodus.”

    (Hat tip: Pension Tsunami.)

  • More on the same theme. (Hat tip: Pension Tsunami.)
  • It’s not just pensions: “The state paid $458 million in 2001 (0.6 percent of the general fund) for state worker retiree health care and is expected to pay $2 billion (1.7 percent of the general fund) next fiscal year — up 80 percent in just the last decade.” (Hat tip: Pension Tsunami.)
  • Texas border control succeeds where the Obama Administration fails. (Hat tip: Ace of Spades HQ.)
  • California and New York still lead Texas in billionaires. But for how long?
  • “The housing bubble may have collapsed, but the public-employee pension fund managers are still with us. If anything they’re bigger than ever, still insatiably seeking high returns just over the horizon line of another economic bubble.” (Hat tip: Pension Tsunami.)
  • How to fix San Francisco’s dysfunctional housing market. “Failed public policy and political leadership has resulted in a massive imbalance between how much the city’s population has grown this century versus how much housing has been built. The last thirteen years worth of new housing units built is approximately equal to the population growth of the last two years.” Also: “The city is forcing people out. Only the rich can live here because of the policies created by so-called progressives and so-called housing advocates.” (Hat tip: Ed Driscoll at Instapundit.)
  • UC Berkley to cut 500 jobs over two years.
  • What does BART do faced with a $400 million projected deficit over the next decade? Dig deeper. (Hat tip: Pension Tsunami.)
  • Stanton, California, is the latest California municipality facing bankruptcy. “One of the main reasons the city can’t pay its bills without the sales tax is that it gives outlandish salaries and benefits to its government workers.” (Hat tip: Pension Tsunami.)
  • Yesterday was Tax Freedom Day in Texas.
  • Politically correct investing has already cost CalPERS $3 billion. (Hat tip: Pension Tsunami.)
  • “A federal jury on Wednesday convicted former Los Angeles County Undersheriff Paul Tanaka of deliberately impeding an FBI investigation, capping a jail abuse and obstruction scandal that reached to the top echelons of the Sheriff’s Department.” (Hat tip: Dwight.)
  • Top California Democratic assemblyman Roger Hernandez accused of domestic violence.
  • Calls for UC Davis Chancellor Linda P.B. Katehi to resign, she of the supergenius “pay $175,000 to scrub the Internet of negative postings about the pepper-spraying of students in 2011” plan.
  • California beachwear retailer Pacific Sunwear files for Chapter 11 bankruptcy.
  • California retailer Sport Chalet is also shutting down.
  • 75% of current Toyota employees are willing to move to Texas to work at Toyota’s new U.S. headquarters.
  • California isn’t the only place delusional politicians are pushing a “railroad to nowhere.” The Lone Star Rail District wants to keep getting and spending money despite the fact that Union Pacific said they couldn’t use their freight lines for a commuter train between Austin and San Antonio. The tiny little problem being that the Union Pacific line was the only one under consideration…
  • Texas vs. California Update for January 19, 2016

    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.
  • Texas vs. California Update for December 7, 2015

    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…
  • Texas vs. California Update for November 2, 2014

    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.
  • Texas vs. California Update for May 21, 2015

    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.
  • Chicago Is Detroit Is California Is Greece

    Sunday, April 5th, 2015

    National Journal has a piece up by moderate lefty John B. Judis on all the problems plaguing Chicago.

    Perhaps more than any other major city in America, Chicago is facing a truly grave set of problems—problems that are essentially more extreme versions of the challenges confronting city governments across the country.

    But there’s a vital piece of information omitted from that sentence: “problems that are essentially more extreme versions of the challenges confronting city governments across the country run by the Democratic Party.” Though Republican cities are not immune to such problems, make no mistake that the very worst examples are cities run by the Democratic Party, most for a very long time (Detroit hasn’t had a Republican Mayor since 1962, Chicago since 1931), and most are in states with solid (if not overwhelming) Democratic Party majorities.

    The failure of America’s bankrupt cities is a microcosm of the failure of the Blue model of big government liberalism. And the reason I have spent so much time on covering California and Greece is that they are part of the same story: The failure of American liberalism is a microcosm of the bankruptcy of the welfare state, and the bankruptcy of the welfare state is a subset of the failure of socialism.

    The quandaries begin with Chicago’s dramatic social divide. To an even greater extent than is the case in, say, New York or Philadelphia, Chicago has become two entirely separate cities. One is a bustling metropolis that includes the Loop, Michigan Avenue’s Magnificent Mile, and the Gold Coast, as well as the city’s well-to-do, working-class, and upwardly mobile immigrant neighborhoods. The other Chicago consists of impoverished neighborhoods on the far South and West Sides, primarily populated by African-Americans. These places have remained beyond the reach of the city’s recovery from the Great Recession.

    As we have known since Charles Murray’s Losing Ground in 1984, welfare programs don’t lift the poor out of poverty, but keep them ensnared in it. Indeed, a cynic might observe that welfare programs are designed to create a voting clientele for the welfare state and the liberal party that runs it.

    The problem, as Mark Steyn put it, is that “the 20th century Bismarckian welfare state has run out of people to stick it to. In America, the feckless insatiable boobs in Washington, Sacramento, Albany and elsewhere are screwing over our kids and grandkids. In Europe, they’ve reached the next stage in social democratic evolution: There are no kids or grandkids to screw over.”

    As Steyn further noted:

    A government big enough to give you everything you want isn’t big enough to get you to give any of it back. That’s the point Greece is at. Its socialist government has been forced into supporting a package of austerity measures. The Greek people’s response is: Nuts to that. Public sector workers have succeeded in redefining time itself: Every year, they receive 14 monthly payments. You do the math. And for about seven months’ work – for many of them the workday ends at 2:30 p.m. When they retire, they get 14 monthly pension payments. In other words: Economic reality is not my problem. I want my benefits. And, if it bankrupts the entire state a generation from now, who cares as long as they keep the checks coming until I croak?

    The story of Detroit’s current bankruptcy is the story of Chicago’s coming bankruptcy, and the similar problems of California. All are dealing with bloated public sector pensions that are making their cities insolvent. All promised and spent money they didn’t have against their decedents, not realizing (or not caring) that the debt burden will ruin the worlds of those decedents before they could ever pay it off.

    The theme with all is that deficit spending destroys, and the only cure is to force governments to pare back the welfare state and stop spending money they don’t have. As the example of Greece shows, there reaches a point in welfare state dependency at which actually curtailing welfare state spending, even at the point of financial ruin, is politically impossible. The looting of the public treasury cannot be stopped because that looting is the only thing that holds left-wing coalitions in power anymore.

    One of the many reasons the Tea Party exists is to hold American politician’s collective feet to the fire to make sure the terminal phase of the welfare state Greece is now enjoying never gets that bad in America. (To this end, they’ve had the tiniest little glimmer of success.)

    Chicago is Detroit is California is Greece is, eventually, America. It’s all part of the same story, and one any voting public ignores at its peril.

    (Hat tip: Instapundit.)

    Previously Bankrupt Stockton Suddenly Has Enough Money for an Affordable Housing Development

    Tuesday, March 10th, 2015

    As part of my regular Texas vs. California updates, I’ve been keeping close tabs on the city of Stockton, which just emerged from bankruptcy proceedings last month.

    So what’s one of the first thing Stockton does after exiting bankruptcy? Would you believe spending $14 million for 40 units of affordable housing? For a city that owes $1.6 billion in pension debt to CalPERs, that’s like someone who can barely afford food deciding to buy spinning rims for his 19-year-old Civic.

    To my mind, this has all the hallmarks of a politic payoffs.

    The project would evidently entail “renovation of the 123-year-old Cal Weber Building and the 88-year-old McKeegan Building.”

    Who controls the Cal-Weber building? Dan Cort.

    Who controls the McKeegan building? Dan Cort.

    Who’s Don Cort? A Stockton commercial real estate developer and “urban renewal expert.” He was also Mayor of Pacific Grove (which is a good two and a half hours away from Stockton) until he resigned in advanced of a recall election in 2009. Pacific Grove, like many California cities, got in financial trouble due to outrageous public employee pension costs, and bond debt to cover same.

    Is Cort tied-in to Stockton’s City Council? Given that six of the seven members, including the Mayor and Vice Mayor, are among Cort’s Facebook friends, I’m going to answer “Yes.” (The seventh, Dan Wright, has only been in office since January.)

    None of this is conclusive proof that underhanded financial shenanigans and/or kickback are going on. But it is an indication that reporters, bloggers and Stockton taxpayers should be taking a good, hard look at this project.

    Also, I can’t imagine that Franklin Templeton, the mutual fund company and Stockton bondholder which was forced to take a haircut in bankruptcy hearings can be too happy about it either…

    Texas vs. California Update for January 21, 2015

    Wednesday, January 21st, 2015
  • The working poor benefit from a lower cost of living in red states.
  • Five of the top ten U.S. cities in economic growth in 2014 were in Texas: Austin, Houston, Ft. Worth. Dallas and San Antonio. (There were also two in California: San Francisco and San Jose.)
  • The Texas Comptroller has released the Biennial Revenue Estimate 2016-2017, which estimates $113 billion in general revenue-related funds available. The report details also notes that “In the past six years, Texas created two-thirds of all net new jobs in the U.S.”

  • By contrast, with the California budget more or less temporarily balanced, Democrats want to start spending like drunken sailors with a stolen credit card again. Legislative analyst: You don’t want to do that.
  • The average CalPERS pension is up to five times comparable Social Security payouts.
  • Jerry Brown says he wants to tackle California’s pension crisis. Good luck with that. While Brown has occasionally been willing to buck his party, and may feel he has nothing to lose in his last term, there’s no reason to believe the Democrat-dominated state House and Senate share his sentiments. I predict a few cosmetic measures passing combined with a whole lot more can kicking until actual default looms. (Hat tip: Pension Tsunami.)
  • “Central Valley farmers say farming is doomed in their areas.” California’s water regulations are driving them out of business.
  • Stockton’s bankruptcy judge: screw secured debtors, we’ve got to start paying retirees.
  • Key figure in CalPERS pension fraud case apparently committed suicide. Hmmm…..
  • California’s Set Seal retail chain files for bankruptcy.
  • John G. Westine of California convicted of 26 counts of mail fraud in a phony Kentucky oil well scheme.
  • Bankruptcy lawyers gone wild!
  • Texas vs. California Update for July 16, 2014

    Wednesday, July 16th, 2014

    Some other stuff bubbling up, so here’s a Texas vs. California update to tide you over for a while:

  • Former Calpers CEO Pleads Guilty to Corruption Conspiracy.
  • As part of his plea, Fred Buenrostro also agreed to testify to testify against his friend and former CalPERS board member Alfred Villalobos. Sing, canary, sing!
  • How CalPERs corrupts California politics.
  • Jobs are leaving California and coming to Texas.
  • Texas’ low-tax, low-regulation approach favors job creation.
  • How Texas compares to both California and New York.
  • Why California’s high speed rail boondoggle is still doomed.
  • Stockton’s bankruptcy judge may declare that CalPERS is just another creditor.
  • Bell City Councilman sentenced.
  • Texas vs. California Update for March 13, 2014

    Thursday, March 13th, 2014

    Time for another roundup of Texas vs. California:

  • Texas surpasses California as the top tech exporter.
  • Victor Davis Hanson wants to “save” California by making liberals eat their own dogfood.
  • Texas is creating jobs at all income levels.
  • Vallejo still can’t afford its pensions:

    The California city of Vallejo emerged from bankruptcy just over two years ago, but it is still struggling to pay its bills.

    The main culprit: Ballooning pension costs, which will hit more than $14 million this year, a nearly 40% increase from two years ago.
    Amid threats of legal action from the state’s pension giant, CalPERS, Vallejo did little during its nearly three-year stint in bankruptcy to stem the growth in its pension bills.

  • Rising CalPERS pension costs are also threatening Long Beach’s financial stability.
  • Berkeley is looking a little better for the short term, but after that they too will be feeling the CalPERS squeeze.
  • Pacific Grove is having a referendum to roll back pension increases.
  • California is getting ready to hike gas taxes again, adding another 12¢ a gallon to gas prices.
  • Is there a Democrat-on-Democrat battle over unions brewing in California?
  • California nursing home chain files for bankruptcy. “The dagger in the heart is that we have been overwhelmed by a wave of class-action lawsuits.”
  • A list of former Los Angeles city employees earning six figure pensions. (Hat tip: Pension Tsunami.)
  • California rancher’s are selling their cattle to Texas ranchers due to drought.
  • Cagney Global Logistics relocates from Denver to Irving, Texas.
  • San Jose-based sheet metal manufacturer Cortec is expanding in Pflugerville.
  • Even punk rock queen Exene Cervenka is getting out of California while the getting is good:

    Now when I think about California, I think of a liberal oppressive police state and regulations and taxes and fees. I’d rather go someplace and have my own little place out on the edge of town. I’m a country girl at heart. It makes me happy when I see people in Texas open-carrying. It makes me feel safe. I’m not even a gun owner, but I’d like to see a gun rack in every pickup truck, like my boyfriend had when I was fifteen years old in Florida. An armed society is a polite society.

  • No End In Sight for Texas Oil Boom.