Issue Updates

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  • 08 Apr 2014 3:35 PM | Anonymous
    Coco Tax has released a video/write up by former Vallejo Councilmember Stephanie Gomes on the March 20th event by the Contra Costa Taxpayers Association by San Jose Mayor Chuck Reed on pension reform. The pension reform initiative has been postponed for 2014. However, it will be pushed for 2016.

    On a special note, the Ventura County Taxpayers Association is circulating a petition for pension reform in Ventura County.

    Mayor Chuck Reed Video at March 20th Contra Costa Taxpayers Association Luncheon:
    http://bit.ly/1dRX2I0

    Major Points on Chuck Reed's Pension Reform Initiative:

    http://halfwaytoconcord.com/pension-reform-in-california-chuck-reed/
  • 25 Mar 2014 3:33 PM | Anonymous
    Postponement of a California ballot measure that could help contain the rising cost of public employee pensions is a “credit negative” for municipalities, Moody’s Investors Service said.

    To read the article, go to http://bloom.bg/QdfOzf
  • 06 Jun 2013 11:17 AM | Kris Hunt (Administrator)
    Since it has been 35 years, a lot of people are unaware of the reason behind it. Property tax rates were rising so quickly that people were actually losing their homes. Now all property owners in California can take comfort in the fact that their property tax increases are limited. Think what would be happening now with the public employee issue if all government had to do was raise the taxes to cover any expenses.

    In the words of the great Howard Jarvis “Death and taxes may be inevitable, but being taxed to death is not.”
  • 11 Apr 2013 9:52 AM | Kris Hunt (Administrator)
    This will take effect starting July 1, 2014.  Yes, that number is still way too high and even the actuary's methodology came up with 7.09% (still too high).  This impact of dropping the rate is that the pension cost increases for both the employer and employee because it assumes the money that is being invested is earning less to help pay the cost of pensions.

    The problem with having a rate that is too high is that any shortage in earning becomes the sole responsibility of the employer. That means reduced service levels.


  • 21 Feb 2013 6:00 AM | Kris Hunt (Administrator)
    The case study compares the 2007-08 budget with that of 2013-14. What it reveals is that even thought the revenue is $10.8 billion greater in 2013-14, the allocation of the dollars are very different. This is a quick, but informative read with useful charts. 

    The study can be found at:   http://cacs.org/ca/article/62
  • 19 Feb 2013 9:37 AM | Wendy Lack
    CalPERS' corruption, insider dealing and politicized investments have overwhelmed taxpayers with debt.  This City Journal article thoroughly explores the issues.

    Author Steven Malanga is the senior editor of City Journal and a senior fellow at the Manhattan Institute. His latest book is Shakedown: The Continuing Conspiracy Against the American Taxpayer.
  • 07 Feb 2013 11:38 AM | Kris Hunt (Administrator)
    The trust fund that provides pensions to retired teachers has a $64 billion deficit and would need a $4.5 billion per year infusion of revenue to become fully solvent, according to a new internal study. The California State Teachers Retirement System produced the report in response to a legislative resolution. Its release came just days after the Legislature's budget analyst, Mac Taylor, indirectly chided Gov. Jerry Brown for ignoring "huge unfunded liabilities associated with the teachers' retirement system and state retiree health benefits" in his new budget. 

    The $4.5 billion is a 75% increase over the present 6 billion.
  • 07 Feb 2013 11:15 AM | Kris Hunt (Administrator)
    Why is that rate so critical?  Because if it is too high (such as Contra Costa and its 7.75%) then too little is collected from the employees and the employer on the assumption that earnings will cover more of the ultimate pension cost.  In Europe they are using on the average of 3-4%.  In the US, a tidal wave was set off when Indiana had the temerity to go down to 6.75%.  But the underfunding is rapidly sucking the life out of local and state budgets.

    See this great article in Institutional Investor:

    http://www.institutionalinvestor.com/Article/3150302/Investors/Debate-Heats-Up-over-Public-Pension-Fund-Discount-Rates.html?ArticleId=3150302&p=3#.URP-D6U738c
  • 07 Jan 2013 1:00 PM | Kris Hunt (Administrator)

    This is one way to reduce the pension and salary costs. Others should consider it.

    http://sanfrancisco.cbslocal.com/2013/01/05/morgan-hill-is-first-city-to-sign-fire-service-pact-with-cal-fire/

  • 21 Dec 2012 11:48 AM | Kris Hunt (Administrator)

    The argument made for having to have immense pensions in order to attract personnel has been given a blow by the number of police recruits vying for spots in the bankrupt City of Stockton. See the story below:

    http://www.recordnet.com/apps/pbcs.dll/article?AID=/20121215/A_NEWS/212150317

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