Issue Updates

  • 21 Feb 2013 6:00 AM | Jessica Wagner-Weir (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 | Deleted user
    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 | Jessica Wagner-Weir (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 | Jessica Wagner-Weir (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
  • 21 Dec 2012 11:48 AM | Jessica Wagner-Weir (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

  • 20 Dec 2012 12:28 PM | Jessica Wagner-Weir (Administrator)

    The results might surprise you. I not only spent some time with the NPR folks, but I also sent them material. 

    http://www.npr.org/blogs/money/2012/12/18/167265874/episode-424-how-much-is-a-firefighter-worth

  • 18 Dec 2012 10:41 PM | Deleted user
    Following passage of AB 340 last fall -- aka Governor Brown's pension reform -- Contra Costa County's Firefighter and Deputy Sheriff's unions filed a lawsuit challenging provisions that would end pension "spiking" practices involving vacation payouts.  It is not clear who, if anyone, will defend the law against the suit.  

    Read more here.  

  • 02 Nov 2012 9:05 AM | Jessica Wagner-Weir (Administrator)

    California's U-6 (Unemployment/Underemployment) is a whopping 19.6%. We are #2 in the nation behind Nevada which is at 21.4%.

     

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