Author Topic: California = Liberal Failed State  (Read 23533 times)

Soul Crusher

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Re: California = Liberal Failed State
« Reply #175 on: May 22, 2012, 05:09:24 AM »
Troy Senik
The Worst Union in America
How the California Teachers Association betrayed the schools and crippled the state
 Spring 2012



In 1962, as tensions ran high between school districts and unions across the country, members of the National Education Association gathered in Denver for the organization’s 100th annual convention. Among the speakers was Arthur F. Corey, executive director of the California Teachers Association (CTA). “The strike as a weapon for teachers is inappropriate, unprofessional, illegal, outmoded, and ineffective,” Corey told the crowd. “You can’t go out on an illegal strike one day and expect to go back to your classroom and teach good citizenship the next.”

Fast-forward nearly 50 years to May 2011, when the CTA—now the single most powerful special interest in California—organized a “State of Emergency” week to agitate for higher taxes in one of the most overtaxed states in the nation. A CTA document suggested dozens of ways for teachers to protest, including following state legislators incessantly, attempting to close major transportation arteries, and boycotting companies, such as Microsoft, that backed education reform. The week’s centerpiece was an occupation of the state capitol by hundreds of teachers and student sympathizers from the Cal State University system, who clogged the building’s hallways and refused to leave. Police arrested nearly 100 demonstrators for trespassing, including then–CTA president David Sanchez. The protesting teachers had left their jobs behind, even though their students were undergoing important statewide tests that week. With the passage of 50 years, the CTA’s notions of “good citizenship” had vanished.

So had high-quality public education in California. Seen as a national leader in the classroom during the 1950s and 1960s, the country’s largest state is today a laggard, competing with the likes of Mississippi and Washington, D.C., at the bottom of national rankings. The Golden State’s education tailspin has been blamed on everything from class sizes to the property-tax restrictions enforced by Proposition 13 to an influx of Spanish-speaking students. But no portrait of the system’s downfall would be complete without a depiction of the CTA, a political behemoth that blocks meaningful education reform, protects failing and even criminal educators, and inflates teacher pay and benefits to unsustainable levels.

The CTA began its transformation in September 1975, when Governor Jerry Brown signed the Rodda Act, which allowed California teachers to bargain collectively. Within 18 months, 600 of the 1,000 local CTA chapters moved to collective bargaining. As the union’s power grew, its ranks nearly doubled, from 170,000 in the late 1970s to approximately 325,000 today. By following the union’s directions and voting in blocs in low-turnout school-board elections, teachers were able to handpick their own supervisors—a system that private-sector unionized workers would envy. Further, the organization that had once forsworn the strike began taking to the picket lines. Today, the CTA boasts that it has launched more than 170 strikes in the years since Rodda’s passage.

The CTA’s most important resource, however, isn’t a pool of workers ready to strike; it’s a fat bank account fed by mandatory dues that can run more than $1,000 per member. In 2009, the union’s income was more than $186 million, all of it tax-exempt. The CTA doesn’t need its members’ consent to spend this money on politicking, whether that’s making campaign contributions or running advocacy campaigns to obstruct reform. According to figures from the California Fair Political Practices Commission (a public institution) in 2010, the CTA had spent more than $210 million over the previous decade on political campaigning—more than any other donor in the state. In fact, the CTA outspent the pharmaceutical industry, the oil industry, and the tobacco industry combined.

All this money has helped the union rack up an imposing number of victories. The first major win came in 1988, with the passage of Proposition 98. That initiative compelled California to spend more than 40 percent of its annual budget on education in grades K–12 and community college. The spending quota eliminated schools’ incentive to get value out of every dollar: since funding was locked in, there was no need to make things run cost-effectively. Thanks to union influence on local school boards, much of the extra money—about $450 million a year—went straight into teachers’ salaries. Prop. 98’s malign effects weren’t limited to education, however: by essentially making public school funding an entitlement rather than a matter of discretionary spending, it hastened California’s erosion of fiscal discipline. In recent years, estimates of mandatory spending’s share of the state’s budget have run as high as 85 percent, making it highly difficult for the legislature to confront the severe budget crises of the past decade.

In 1991, the CTA took to the ramparts again to combat Proposition 174, a ballot initiative that would have made California a national leader in school choice by giving families universal access to school vouchers. When initiative supporters began circulating the petitions necessary to get it onto the ballot, some CTA members tried to intimidate petition signers physically. The union also encouraged people to sign the petition multiple times in order to throw the process into chaos. “There are some proposals so evil that they should never go before the voters,” explained D. A. Weber, the CTA’s president. One of the consultants who organized the petitions testified in a court declaration at the time that people with union ties had offered him $400,000 to refrain from distributing them. Another claimed that a CTA member had tried to run him off the road after a debate on school choice.

Weber and his followers weren’t successful in keeping the proposition off the ballot, but they did manage to delay it for two years, giving themselves time to organize a counteroffensive. They ran ads, recalls Ken Khachigian, the former White House speechwriter who headed the Yes on 174 campaign, “claiming that a witches’ coven would be eligible for the voucher funds and [could] set up a school of its own.” They threatened to field challengers against political candidates who supported school choice. They bullied members of the business community who contributed money to the pro-voucher effort. When In-N-Out Burger donated $25,000 to support Prop. 174, for instance, the CTA threatened to press schools to drop contracts with the company.

In 1993, Prop. 174 finally came to a statewide vote. The union had persuaded March Fong Eu, the CTA-endorsed secretary of state, to alter the proposition’s heading on the ballot from PARENTAL CHOICE to EDUCATION VOUCHERS—a change in wording that cost Prop. 174 ten points in the polls, according to Myron Lieberman in his book The Teacher Unions. The initiative, which had originally enjoyed 2–1 support among California voters, managed to garner only a little over 30 percent of the vote. Prop. 174’s backers had been outspent by a factor of eight, with the CTA alone dropping $12.5 million on the opposition campaign.

As the CTA’s power grew, it learned that it could extract policy concessions simply by employing its aggressive PR machine. In 1996, with the state’s budget in surplus, the CTA spent $1 million on an ad campaign touting the virtues of reduced class sizes in kindergarten through third grade. Feeling the heat from the campaign, Republican governor Pete Wilson signed a measure providing subsidies to schools with classes of 20 children or fewer. The program was a disaster: it failed to improve educational outcomes, and the need to hire many new teachers quickly, to handle all the smaller classes, reduced the quality of teachers throughout the state. The program cost California nearly $2 billion per year at its high-water mark, becoming the most expensive education-reform initiative in the state’s history. But it worked out well for the CTA, whose ranks and coffers were swelled by all those new teachers.

The union’s steady supply of cash allowed it to continue its quest for political dominance unabated. In 1998, it spent nearly $7 million to defeat Proposition 8—which would have used student performance as a criterion for teacher reviews and would have required educators to pass credentialing examinations in their disciplines—and more than $2 million in a failed attempt to block Proposition 227, which eliminated bilingual education in public schools. In 2002, the union spent $26 million to defeat Proposition 38, another school voucher proposal. And in 2005, with a special election called by Governor Arnold Schwarzenegger looming, the CTA came up with a colossal $58 million—even going so far as to mortgage its Sacramento headquarters—to defeat initiatives that would have capped the growth of state spending, made it easier to fire underperforming teachers, and ensured “paycheck protection,” which compels unions to get their members’ consent before using dues for political purposes. (A new paycheck-protection measure will appear on the November 2012 ballot.)

Cannily, the CTA also funds a wide array of liberal causes unrelated to education, with the goal of spreading around enough cash to prevent dissent from the Left. Among these causes: implementing a single-payer health-care system in California, blocking photo-identification requirements for voters, and limiting restraints on the government’s power of eminent domain. The CTA was the single biggest financial opponent of another Proposition 8, the controversial 2008 proposal to ban gay marriage, ponying up $1.3 million to fight an initiative that eventually won 52.2 percent of the vote. The union has also become the biggest donor to the California Democratic Party. From 2003 to 2012, the CTA spent nearly $102 million on political contributions; 0.08 percent of that money went to Republicans.

At the same time that the union was becoming the largest financial force in California politics, it was developing an equally powerful ground game, stifling reform efforts at the local level. Consider the case of Locke High School in the poverty-stricken Los Angeles neighborhood of Watts. Founded in response to the area’s 1967 riots, Locke was intended to provide a quality education to the neighborhood’s almost universally minority students. For years, it failed: in 2006, with a student body that was 65 percent Hispanic and 35 percent African-American, the school sent just 5 percent of its graduates to four-year colleges, and the dropout rate was nearly 51 percent.

Shortly before Locke reached this nadir, the school hired a reform-minded principal, Frank Wells, who was determined to revive the school’s fortunes. Just a few days after he arrived, a group of rival gangs got into a dust-up; Wells expelled 80 of the students involved. In the new atmosphere of discipline, Locke dropped “from first in the number of campus crime reports in LAUSD [Los Angeles Unified School District] to thirteenth,” writes Donna Foote in Relentless Pursuit: A Year in the Trenches with Teach for America. Test scores and college acceptance also began to rise, Foote reports.

But trouble arose with the union when Wells began requiring Locke teachers to present weekly lesson plans. The local CTA affiliate—United Teachers Los Angeles—filed a grievance against him and was soon urging his removal. The last straw was Wells’s effort to convert Locke into an independent charter school, where teachers would operate under severely restricted union contracts. In May 2007, the district removed Wells from his job. He was escorted from his office by three police officers and an associate superintendent of schools, all on the basis of union allegations that he had let teachers use classroom time to sign a petition to turn Locke into a charter. Wells called the allegations “a total fabrication,” and the signature gatherers backed him up. The LAUSD reassigned him to a district office, where he was paid $600 a day to sit in a cubicle and do nothing.

Luckily for Locke students, the union’s rearguard action came too late. In 2007, the Los Angeles Board of Education voted 5–2 to hand Locke High School to Green Dot, a charter school operator. Four years later, as the final class of Locke students who had attended the school prior to its transformation received their diplomas, the school’s graduation rate was 68 percent, and over 56 percent of Locke graduates were headed for higher education.

One of the most noticeable changes at Locke has ramifications statewide: when Green Dot took over, it required all teachers to reapply for their jobs. It hired back only about one-third of them. That approach is unimaginable in the rest of the state’s public schools, where a teaching job is essentially a lifetime sinecure. A tiny 0.03 percent of California teachers are dismissed after three or more years on the job. In the past decade, the LAUSD—home to 33,000 teachers—has dismissed only four. Even when teachers are fired, it’s seldom because of their classroom performance: a 2009 exposé by the Los Angeles Times found that only 20 percent of successful dismissals in the state had anything to do with teaching ability. Most terminations involved teachers behaving either obscenely or criminally. The National Council on Teacher Quality, a Washington-based education-reform organization, gave California a D-minus on its teacher-firing policies in its 2010 national report card.

Responsibility for this sorry situation goes largely to the CTA, which has won concessions that make firing a teacher so difficult that educators can usually keep their jobs for any offense that doesn’t cross into outright criminality. With the cost of the proceedings regularly running near half a million dollars, many districts choose to shuffle problem employees around rather than try to fire them.

Even outright offenses are no guarantee of removal, thanks to CTA influence. When a fired teacher appeals his case beyond the school board, it goes to the Commission on Professional Competence—two of whose three members are also teachers, one of them chosen by the educator whose case is being heard. The CTA has stacked this process as well by bargaining to require evidentiary standards equal to those used in civil-court procedures and coaching the teachers on the panels. One veteran school-district lawyer calls the appeals process “one of the most complicated civil legal matters anywhere.” As the Times noted, “The district wanted to fire a high school teacher who kept a stash of pornography, marijuana and vials with cocaine residue at school, but [the Commission on Professional Competence] balked, suggesting that firing was too harsh.” The commission was also the reason that, as the newspaper continued, the district was “unsuccessful in firing a male middle school teacher spotted lying on top of a female colleague in the metal shop”; the district had failed to “prove that the two were having sex.”

Another regulatory body dominated by CTA influence is the state’s Commission on Teacher Credentialing (CTC), the institution responsible for removing the credentials of misbehaving teachers. A report released in 2011 by California state auditor Elaine Howle found that the commission had a backlog of approximately 12,600 cases, with responses sometimes taking as long as three years. Because the CTC—which was created by an act sponsored by the CTA—is made up of members appointed by the governor, the CTA is able to bring its political pressure to bear on determining the commission’s makeup. In September 2011, for instance, one of Governor Jerry Brown’s appointments to the CTC was Kathy Harris, who had previously been a CTA lobbyist to the body.

The CTA’s most recent crusade for job security made clear that the union was prepared to jeopardize the financial future of California’s schools. Last June, it vigorously pushed (and Governor Brown hastily signed) Assembly Bill 114, which prevented any teacher layoffs or program cuts in the coming fiscal year and removed the requirement that school districts present balanced budget plans. The bill also forced public schools to prepare budget estimates that didn’t take into account the state’s downturn in revenues—meaning that schools could budget for activities even though there wasn’t money to pay for them. Since then, state officials have forecast that revenues for the 2012 fiscal year will be $3.2 billion lower than they were when the schools were making their budgets. Eventually, accommodations to reality will have to be made—at which time the CTA will, of course, use them to plead hardship.

Such pleas seem impudent coming from the highest-paid teachers in the nation, with an average annual salary of $68,000. For a bit of perspective, if two California teachers get married (not an unusual occurrence) and each makes the average salary, their combined annual income would be $136,000, nearly $80,000 more than what the state’s median household pulls down. That’s for an average annual workload of 180 days, only two-thirds of the average total in the private sector. Don’t forget retirement benefits: after 30 years, a California teacher may retire with a pension equal to about 75 percent of his working salary. That pension averages more than $51,000 a year—more than working teachers earn in more than half the states in the nation. And that’s just an average; from 2005 to 2011, the number of education employees pulling down more than $100,000 a year in pensions skyrocketed from 700 to 5,400.

With the state’s economy in tumult, however, prospects for the teachers’ retirement fund look grim. CalSTRS is now officially estimated to have about $56 billion in liabilities and about 30 years left before it runs dry, though many outside analysts think that those numbers are too optimistic. A report by the Legislative Analyst’s Office in November 2011 estimated that restoring full funding to CalSTRS would require finding an extra $3.9 billion a year for at least 30 years.

If California is to generate the economic growth necessary to mitigate its coming fiscal reckoning, it will need to retain its historical role as a leading site for innovation and entrepreneurship. But that won’t be possible if its next generation of would-be entrepreneurs attends one of the Golden State’s many mediocre or failing schools. And what little economic dynamism is left in California will be impeded if the union gets its way and the state increases its already weighty tax burden.

Meaningful change probably won’t come from elected officials, at least for now. The CTA’s size, financial resources, and influence with the state’s regnant Democratic Party are enough to kill most pieces of hostile legislation. For years, school reformers fantasized about a transformative figure who could shift the balance of power from the union through force of charisma and personality, taking his case directly to the people. Yet when that figure seemed to emerge in Governor Arnold Schwarzenegger, even he proved unable to alter the status quo, with his 2005 ballot initiatives to reform tenure, school financing, and political spending by unions all going down to decisive defeat. It’s unlikely that salvation will come from Governor Brown, either. The man who originally opened the door for the CTA’s collective bargaining has remained a steadfast ally of the union, firing four pro-reform members of the state board of education in his first few days in office and appointing a new group that included Patricia Ann Rucker, the CTA’s top lobbyist. Brown also avoided including any changes to CalSTRS in his October announcement of proposed pension reforms, probably because he had learned Schwarzenegger’s lesson that irking the CTA can lead to the demise of a broader agenda.

Parents, however, are starting to revolt against CTA orthodoxy. Unlike elected officials, parents—who want nothing more than a good education for their kids—are hard for the union to demonize. In early 2010, a Los Angeles–based nonprofit called Parent Revolution shocked California’s pundit class by getting the state legislature to pass the nation’s first “parent trigger” law, which lets parents at failing schools force districts to undertake certain reforms, including converting schools into independent charters. The law caps the number of schools eligible for reform at 75, but if early results are successful, it will become hard for Californians to avoid comparing thriving charter schools with failing traditional ones.

The CTA is fighting back, of course. In 2010, when 61 percent of parents at McKinley Elementary School in the blighted L.A. neighborhood of Compton opted to pull the trigger, the CTA claimed that “parents were never given the full picture . . . [or] informed of the great progress already being made”—despite the fact that McKinley’s performance was ranked beneath nearly all other inner-city schools in the state. Several Hispanic parents in the district also said that members of the union had threatened to report them to immigration authorities if they signed the petition. Eventually, the Compton Unified school board—heavily lobbied by the CTA—dismissed the petition signatures, with no discussion, as “insufficient” on a handful of technicalities, such as missing dates and typos. Though the union’s power had proved too much for the McKinley parents, an enterprising charter school operator opened two new campuses in the neighborhood anyway.

Institutions like Locke High School, Green Dot, Parent Revolution, and the Compton charters are glimmers of hope for California’s public school system. Despite their inferior resources, they have fought the CTA not by participating in direct political conflict but by undermining the union’s moral standing. These organizations reframe the education question in starkly humanitarian terms: In the California public school system, are anyone’s interests more important than the students’? It was a question that the CTA itself might have asked back when teachers entered the classroom to “teach good citizenship.”

Troy Senik is a senior fellow at the Center for Individual Freedom and an editor at Ricochet.com.

http://www.city-journal.org/2012/22_2_california-teachers-association.html

Soul Crusher

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Re: California = Liberal Failed State
« Reply #176 on: May 30, 2012, 08:08:08 AM »
http://www.ocregister.com/opinion/california-356374-state-billion.html



Same as NYS - decent hard working people trying to escpae the democrat/communist/socialist tyranny in droves. 

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Re: California = Liberal Failed State
« Reply #177 on: May 30, 2012, 11:27:04 AM »
Maybe the UN and NATO should get involved like in Egypt and Libya

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Re: California = Liberal Failed State
« Reply #178 on: June 04, 2012, 04:06:16 AM »
http://www.businessinsider.com/stockton-california-nears-bankruptcy-2012-6



They all need o declare bankruptcy and tell the unions to fuk off

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Re: California = Liberal Failed State
« Reply #179 on: June 04, 2012, 04:09:09 AM »

OPINION Updated June 3, 2012, 6:03 p.m. ET
Boskin and Cogan: California's Casino Budgeting
Higher tax rates will speed the exodus from the state and increase the revenue system's dangerous volatility.
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By MICHAEL BOSKIN AND JOHN COGAN

California's fiscal and governance crisis careens from bad to worse. The latest blow: a 70% increase in the state's projected budget deficit in Gov. Jerry Brown's revised budget, to $16 billion from $9 billion. Meanwhile, S&P warns of a downgrade to the state's bond rating, already the lowest of any state, and the latest CEO survey ranks California's business climate dead last.

Caught in the symbiotic financial embrace of special interests—teacher and other public-employee unions, trial lawyers and environmental extremists—Mr. Brown and the state legislature repeatedly nibble around the edges of the budget broken by costly, ineffective programs, financed by an uncompetitive, volatile tax system.


David Klein
Mr. Brown colorfully but correctly calls the budget, riddled with earmarks and creative accounting, a "pretzel palace of incredible complexity." He and the state legislature are choking on the pretzel. They've lost credibility by offering hopelessly optimistic projections; diverting revenue earmarked for other purposes (such as funds meant to help homeowners from the national bank-mortgage settlement) to the general fund; and gambling on Silicon Valley to produce more revenue from capital gains and stock options. Call it casino budgeting.

The governor describes his budget and November tax-hike ballot initiative as "real increased austerity" while calling on voters to "please increase taxes temporarily." Cutting through the shifting numbers and fanciful assumptions, what is actually proposed is closer to a permanent tax hike and modest temporary budget cuts to fund a permanent spending increase.

Mr. Brown's original bad idea, raising the state's top marginal tax rate of 10.3% to 12.3% for five years, is now even worse: a highest-in-the-nation 13.3% on individuals and small businesses for seven years retroactive to Jan. 1, 2012, and a small increase in the sales tax for next year.

While the governor proposes cuts in social services, higher education and the courts, total spending nevertheless goes up to $91.4 billion in fiscal year 2013 from $86.5 billion in 2012, a 6% increase. Spending on K-12 education alone rises beyond constitutional requirements to $38.5 billion from $34 billion, a 13% increase.

In the past, Californians have supported more education spending on the assumption it would improve education outcomes. It hasn't. Sadly, the state has an elementary and secondary school system that ranks in the bottom fifth of all 50 states in math scores, and a high-school dropout rate that's soared relative to other states, especially for African Americans and Hispanics.

The prison system spends $45,000 per year per inmate—about equal to the median take-home pay of American families. Welfare and MediCal (the state's Medicaid program) caseloads are vastly in excess of national averages.

Mr. Brown does have some good proposals. He's bringing the state's welfare-to-work program in line with federal rules, and he's called for small Medicaid co-pays, which the Obama administration foolishly blocked. But his bad ideas far outweigh the good, including restricting the use of private contractors on public projects and a $68 billion high-speed rail proposal that would drain revenues from higher priorities for decades.

The governor's one innovative program is "realignment" between the state and counties, especially of the state's overburdened prison system. But counties worry that costs of the permanent shift of convicts from state prisons to county jails will eventually fall to them.

Unlike other governors from both parties who pushed overdue reforms, opposed by public-employee unions, through their legislatures—Wisconsin's Scott Walker, New Jersey's Chris Christie and New York's Andrew Cuomo, to varying degrees—Mr. Brown has not even pressed the Democratic-controlled legislature to pass his own sensible pension proposal.

He is seeking a deal with the unions that only temporarily reduces wages and work hours by 5% each, saving 0.4% of the budget. Usually a pay cut refers to working the same hours for less pay, not a forced, unpaid vacation. Mr. Brown has not made it clear whether the reduction is for one year or longer, or even whether the compensation would be paid back later (if so, it amounts to a paid vacation, not a pay cut).

The governor has reduced the workforce by 2% and proposed further, gradual reductions. But this represents a failure of imagination. The state should replace half of the sizable number of workers who will retire in the next 10 years with technology and at the same time institute performance pay, saving a bundle and improving service delivery.

Meanwhile, Mr. Brown forges ahead with his proposal for higher taxes despite considerable evidence that states with lower tax rates grow faster than states with high tax rates. Higher marginal tax rates will speed the exodus from the state, which has a 10.9% unemployment rate, the country's third-highest.

California's casino-like budget reflects its highly volatile revenue system. In good times it collects almost half its income taxes from the top 1% of the population, relying heavily on capital gains, taxed at ordinary income rates, and stock options. This exposes the state to dramatic revenue collapses during recessions and stock market declines.

The state lurched from income tax growth of 54% in the two years from 1998-2000—money that was spent and built into the permanent budget base line—to a collapse that erased these revenue gains the next two years. This dysfunctional swing was repeated in the recent housing bubble and bust. Mr. Brown's tax initiative would exacerbate the volatility.

To remedy this and other problems, two recent bipartisan California Tax Reform Commissions, one on which we served in 2008-09, recommended the state combine a broader tax base of economic activity with much lower marginal tax rates, modeled on the landmark 1986 tax reform of President Ronald Reagan and Sens. Bill Bradley and Bob Packwood—the exact opposite of Mr. Brown's proposal.

Absent real reform, there is little likelihood the long-run budget will be balanced, and a high likelihood the "temporary" tax hikes will not only become permanent but form the new base from which even higher taxes are demanded.

California still leads the world in technology, agriculture and entertainment, but politicians in Sacramento are headed in the opposite direction from growth, prosperity and effective, affordable government. They have so far refused to live up to the demands of, let alone seize, the moment. Instead, like their counterparts in Greece and other bankrupt European nations, they seem intent on continuing the broken high-tax-and-spend welfare state experiment as long as they remain in office.

Messrs. Boskin and Cogan are, respectively, professors of economics and public policy at Stanford University, where they are both senior fellows at the Hoover Institution.

Copyright 2012

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Re: California = Liberal Failed State
« Reply #180 on: June 06, 2012, 05:13:23 AM »
Voters in California Appear to Approve Pension Cuts
 
By IAN LOVETT
 

LOS ANGELES — As Wisconsin residents voted on Tuesday not to recall Gov. Scott Walker — who has become an enemy of labor unions nationwide — two California cities dealt blows of their own to organized labor.

In both San Diego and San Jose, voters appeared to overwhelmingly approve ballot initiatives designed to help balance ailing municipal budgets by cutting retirement benefits for city workers.

Around 70 percent of San Jose voters favored the pension reform measure, with almost 80 percent of precincts reporting. In San Diego, 67 percent had supported a similar pension reform measure, with more than 65 percent of precincts reporting.

“This is really important to our taxpayers,” Chuck Reed, the mayor of San Jose, said Tuesday night. “We’ll get control over these skyrocketing retirement costs and be able to provide the services they are paying for.”

Statewide, voters also remained very closely divided on a $1-per-pack tax on cigarettes, which would be the first increase in the cigarette tax here in 14 years. Proceeds from the tax would not go to state coffers, but would instead fund cancer research.

Just past midnight, opponents of the measure held a razor-thin lead, with about 65 percent of precincts reporting.

Antismoking advocates, who promoted the tax as the best way to reduce smoking rates, were outspent nearly four to one. Their opponents, financed largely by the tobacco industry, spent almost $47 million in advertisements to defeat the measure.

Public employee unions, meanwhile, had fought hard against the two pension reform initiatives.

The San Diego Municipal Employees Association brought an unsuccessful legal challenge in an effort to keep the measure off the ballot.

Speaking to KPBS, a local television station, Michael Zucchet, general manager of the San Diego Municipal Employees Association, said last month the ballot initiative would not save the city money.

“This initiative doesn’t save anything,” Mr. Zucchet said. “You are basically cutting off your nose to spite your face for pension reform.”

Mr. Zucchet did not respond to requests for comment on Tuesday night.

But the mayors of both cities pushed the pension reforms hard, arguing that changes to city worker pensions were essential to keep municipal budgets in the black.

Jon Coupal, president of the Howard Jarvis Taxpayers Association, said he hoped the initiatives would provide models for other cities and for the state government, where pension reform efforts have stalled. “The appetite for pension reform in California is huge,” Mr. Coupal said.

Tuesday also offered the first widespread test of the state’s new primary system, in which the top two vote-getters move on to a runoff, irrespective of party affiliation.

One of the most heavily funded races will pit two sitting Democratic representatives against each other: Brad Sherman and Howard L. Berman, colleagues in the House for 15 years who were thrown together by redistricting.

Mr. Sherman had collected about 40 percent of the vote, while Mr. Berman had 33 percent, with about 18 percent of precincts reporting late Tuesday. They will face each other again in the November runoff.








Finally.  These public sector thugs need to be crushed.

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Re: California = Liberal Failed State
« Reply #181 on: June 06, 2012, 01:45:08 PM »
San Jose unions sue to block pension reform
 San Jose Mercury News ^ | 6/6/12 | John Woolfolk





San Jose police officers Wednesday made good on promises to legally challenge San Jose's voter-approved pension reform with a lawsuit filed in Santa Clara County Superior Court.

San Jose Police Officers' Association President Jim Unland said the lawsuit argues that the measure -- approved by almost 70 percent of voters Tuesday -- violates employees' "vested rights" to their pensions. He based that on a history of court rulings that effectively hold that government employers cannot cut back workers' retirement plans without offering a comparable benefit in return.

The officers asked the court to block implementation of the measure's provisions until the case is decided, Unland said.

"If we lose, so be it, but we'll at least try to fight it," Unland said, adding that the measure has poisoned any chance of cooperation between the city and its cops, who had offered pension cuts for new hires, which the city rejected as insufficient. "The days of trying to work with these folks are over. ... We'll see you in court."

The pension measure limits retirement benefits for new hires and requires current employees to either pay up to 16 percent of their salary more for their current pension plan or switch to one that is less generous. It also would allow the city to temporarily suspend cost-of-living pension increases for retirees in a fiscal emergency.

San Jose Mayor Chuck Reed, who urged approval of Measure B, said the city Tuesday asked a federal court to rule quickly on its legality.


(Excerpt) Read more at mercurynews.com ...

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Re: California = Liberal Failed State
« Reply #182 on: June 26, 2012, 06:20:13 AM »
Stockton, Calif. to take up bankruptcy budget plan
By Jim Christie

STOCKTON, Calif., June 26 | Tue Jun 26, 2012 3:23pm IST

 
(Reuters) - Stockton, California was poised on Tuesday to take a major step toward becoming the largest U.S. city ever to file for bankruptcy after talks with its creditors on Monday at midnight.
 
Negotiations aimed at averting bankruptcy may press on informally, the city's spokeswoman said, adding that city officials would next discuss any moves toward bankruptcy at the city council meeting on Tuesday evening.

The council's main order of business will be taking up and voting on a proposed budget to guide Stockton during bankruptcy, an option city officials have been considering since February.

City Manager Bob Deis, who the council has authorized to file for Chapter 9 bankruptcy, last week unveiled the budget proposal, also known as a pendency plan.

The plan assumed Stockton, a city of 292,000 people about 85 miles (about 135 km) east of San Francisco, would fail to win concessions from its 18 creditors to close its $26 million shortfall for the fiscal year beginning on July 1.

To help close the budget gap, Stockton's plan would suspend $10.2 million in debt payments, a move likely to trigger rating agencies to further downgrade the city, and reduce spending on employee compensation and retiree benefits by $11.2 million.

About $7 million in savings would come from cutting retiree health care benefits for one year and then phasing them out. Stockton officials have said the benefits are a crushing expense due to their fast rise and projected liability of $417 million.

Stockton's confidential mediation with its creditors - required by a state law approved after the bankruptcy of Vallejo, California in 2008 - was part of an effort launched in February by city officials to restructure the city's finances in time for the beginning of its next fiscal year.

The plan, however, left open the possibility of a bankruptcy filing in light of Stockton's severe financial troubles.

Mark McLaughlin, a member of the board of the city police officers' union, said he is resigned to a bankruptcy filing but expects his group will try to seek common ground with city before it should take that drastic step.

"It's unfortunate we're here but we need to keep working with the city," McLaughlin said.

Stockton's finances collapsed along with its housing market, forcing city officials to slash $90 million in spending in recent years and a quarter of positions across agencies.

Despite the cuts, Stockton has not been able to avoid recurring deficits. Its revenue is weak and its financial troubles have been compounded, according to city officials, by generous pay and benefits for city workers and retirees and too much debt taken on by the city when it enjoyed a home-building boom in the early part of the last decade that transformed it into a distant bedroom community for the San Francisco Bay area.

Many of the houses built and bought in that boom have been abandoned, repossessed and sold at deep discount as Stockton has been at the top or near the top of lists of housing markets suffering a glut of foreclosures in recent years.

Under its restructuring plan, Stockton has already defaulted on about $2 million in debt, allowing the trustee for one of its bond insurers to seize a building once slated to be its future city hall and three parking garages.

The intentional default and of bankruptcy prompted Moody's Investors Service and Standard & Poor's Ratings Services to drop their credit ratings on Stockton, which has more than $700 million in debt across its various agencies.

Moody's has its issuer rating for Stockton at a junk level Ba2 from Baa1 while S&P has its issuer rating on the city from BB to SD, one notch above its D default rating.

A bankruptcy filing by Stockton is a "high-probability event," Gregory Lipitz, a vice president and senior analyst at Moody's, said on Monday. (Reporting By Jim Christie)

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Re: California = Liberal Failed State
« Reply #183 on: June 27, 2012, 02:54:13 PM »
Stockton California Files For Bankruptcy, And Murder Is Surging After Police Corps Gets Gutted
 Business Insider ^ | 06/27/2012 | Ben Duronio




Stockton, California is filing for the largest bankruptcy of any U.S. city in history due to the decline in the once hot housing market and an intake of debt during its boom years.

The city has cut more than $90 million in spending over the past few years, specifically in its police department. The city has cut over one quarter of its police jobs, which has led to a "surge in murders," and has created an "emboldened criminal element" in the city.

According to police spokesman Joe Silva, the city has had 87 murders since the start of 2011, 29 of which have already occurred this year. In contrast, there were 35 murders in 2009 and 48 in 2010. With six months left in the year, there have already been more murders in the city since the start of 2011 than the two-year stretch of 2009-2010.

Further cuts to the police department would likely only worsen the issue, so filing for bankruptcy after already having cut 40 percent of its city's employees was the only option, according to Mayor Ann Johnston.

“We have hit the wall; we are insolvent,” said Mayor Ann Johnston. "Citizens will not be affected. We will still have police and fire departments and we will still operate and pay our bills to vendors."

While the city still has police officers, the dramatic decrease in the department has certainly not helped the crime rate. It certainly seems like citizens have been affected.


(Excerpt) Read more at businessinsider.com ...

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Re: California = Liberal Failed State
« Reply #184 on: June 27, 2012, 06:01:16 PM »
Stockton is a bung hole, even when the housing market was going good.

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Re: California = Liberal Failed State
« Reply #186 on: July 09, 2012, 11:19:22 AM »
Train to Nowhere: Full Speed Ahead
 National Review ^ | 07/09/2012 | John Fund






Sacramento, Calif.—It’s hard to express how sad it was for me to watch, in person, as the state I grew up in committed fiscal suicide.

I went down to the state capitol here on Friday afternoon to watch the state senate approve, by a single vote, a $4.7 billion bond package to build a high-speed-rail system from nowhere to nowhere. If the whole system is ever built — highly doubtful — it will cost at least $68 billion and run between Los Angeles and San Francisco. But this first 130-mile segment will run from Madera to Bakersfield, a stretch that less than 3 percent of the line’s potential ridership can use.

“Where [Governor Brown], with the state going bankrupt, is even thinking about an expenditure like this is beyond comprehension,” leading California demographer Joel Kotkin told the Wall Street Journal. “When the schools are falling apart, when the roads are falling apart, the bridges are unsafe, the state economy is in free fall. We’re still doing much worse than the rest of the country, we’ve got this growing permanent welfare class, and high-speed rail is going to solve this?”

The whole operation began in 2008, when voters narrowly approved $9.9 billion in bonds. It was a time when the estimated total cost was $33 billion and projections showed the project would be finished by 2020. The bond measure stipulated that the system must deliver passengers from the Bay Area to Los Angeles in 160 minutes or less.

Environmentalists and other opposition groups have made the 160-minute target impossible to meet, the costs have more than doubled, and the completion date has been pushed back to 2032 — and counting.

But there’s no stopping the runaway train. It’s full steam ahead, even though no one knows where all the money will come from after the nowhere-to-nowhere segment is completed, and even though Congress warns that builders shouldn’t count on more than a $3.3 billion down payment from Washington (a leftover from the 2009 stimulus bill).

The public has turned against the project because of concerns that it will never be finished and that it will line the pockets of government-linked business and union interests. A majority of voters want a re-vote, and 59 percent of Californians now oppose the project.

The state senate ignored the public on Friday, and the bill authorizing the bonds will be signed into law by Governor Brown, a big booster of the project. Before the senate vote, supporters waxed eloquent about the historic nature of the line. “How many chances do we have to vote on something that will inject a colossal stimulus into today’s economy while looking into the future far beyond our days in this house?” asked senate president Darrell Steinberg. “Do we have the ability to see beyond the challenges, the political point-scoring and controversies of today? Are we willing to take some short-term risk, knowing that the benefit to this great state will be, for centuries, enormous?”

Republican senator Tony Strickland responded by pointing to the state’s perennial budget deficits and asked why Democrats would put high-speed rail ahead of the pressing need to provide health care for children, prevent soaring increases in university tuition, and make necessary infrastructure repairs.

“I do believe Californians will remember in November — they will remember how out of touch you are in your spending priorities when you ask them to dig deeper,” Strickland told his colleagues. “They will see you spent money we simply don’t have.”

Passage of the high-speed-rail bill could also make it difficult for Governor Brown to achieve his other goals. The governor and Democratic legislators are backing a large tax increase on the November ballot, and they are risking voter backlash by spending money on the choo-choo project at a time when voter priorities are elsewhere. A new Field Poll finds that a full 21 percent of current supporters of Brown’s tax package will be less likely to support it with the bullet-train funding approved. The tax package is already hovering at just above 50 percent support in polls. The silver lining of Friday’s vote is that it may make Brown’s November measure the ninth straight tax increase rejected by California voters.

Voters have absorbed the reality that California’s taxes are already sky-high. The top rate of its individual income tax is 10.3 percent, the second-highest in the country. A single middle-class worker earning just $48,000 pays a top rate of 9.3 percent, which is higher than the rate for millionaires in 47 other states. The Golden State is a Golden Turkey for business: Its regulatory and tax climate for business is the third-worst in the nation, according to the Tax Foundation. It’s no wonder that 4 million more people have fled the state since the early 1990s than have moved to California from other states. (Immigration is the only reason that the state’s population is stable or slightly growing.)

Even former supporters of high-speed rail have soured on the idea of a train as an economic boon to the state. Former San Francisco state senator Quentin Kopp, until 2010 a member of the state’s High-Speed Rail Authority board, told the Los Angeles Times that he now views the project as “the great train robbery.” He notes that his former colleagues approved the bill (without a vote to spare) only after they nabbed federal pork for local transit in exchange for their vote.

It was wrenching to watch the California state legislature — for which I worked in the 1980s — as it led California over a fiscal cliff. The high-speed-rail line that was approved on Friday is a train to nowhere. And it’s offering Californians a nonstop ticket to their future as residents of a homegrown version of Greece.

— John Fund is national-affairs columnist for NRO



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Re: California = Liberal Failed State
« Reply #187 on: July 11, 2012, 03:27:05 AM »
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San Bernardino, California, considers bankruptcy
Reuters ^ | 7/10/12
Posted on July 11, 2012 12:46:28 AM EDT by Kartographer

The city council of San Bernardino, California, will discuss and may act as early as Tuesday evening on a motion for the city to seek chapter 9 bankruptcy protection from its creditors at the same time as it takes up a plan to stabilize the city budget.

It is unclear if the leaders of the city of about 210,000 residents approximately 65 miles (104 km) east of Los Angeles will act on the motion. They are also scheduled to take it up during a special meeting on Wednesday if needed, according to city council agenda items posted on the city's website.

(Excerpt) Read more at in.reuters.com ...

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Re: California = Liberal Failed State
« Reply #188 on: July 11, 2012, 03:58:19 AM »

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Re: California = Liberal Failed State
« Reply #189 on: July 11, 2012, 04:47:45 AM »
http://www.huffingtonpost.com/2012/07/11/san-bernardino-bankruptcy_n_1663940.html#comments


LOL at the babies screaming for higher taxes.

Only on the rich, not on you and me and the rest of blue-collar americans :)

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Re: California = Liberal Failed State
« Reply #190 on: July 11, 2012, 10:58:38 AM »
Police chiefs in California getting huge final paychecks
 http://www.latimes.com/new ^ | 7/11/2012 | Sam Allen




El Monte Police Chief Thomas Armstrong oversaw a modestly sized department, with 120 officers

But when Armstrong stepped down last year, he was paid nearly $430,000

The payday was possible thanks to a clause in Armstrong's contract that allowed him to accrue unlimited sick and vacation hours and sell them back to the city at the end of his career. By the time he retired at age 56, Armstrong cashed out for roughly $200,000.

And he's not alone. Similar payouts have been made in city governments across the state.

Those employees include Roy Campos, Downey's former police chief, who was paid $594,000 in 2009 after cashing out more than 3,300 hours of unused sick and vacation time. The same year, Monterey Park's outgoing chief, Jones Moy, earned $531,000, including cash-outs of about 2,700 unused hours. In 2010, Santa Clara's police chief, Steve Lodge, left his job with almost $600,000

Supporters say the system provides an incentive for diligent work habits

Armstrong was permitted to bank unused hours without limit, then cash them out at the hourly rate he made as police chief. Armstrong's pension is also higher than the largest base salary he earned, $217,000.

His predecessor, Ken Weldon, cashed out about $90,000 worth of unused time when he retired in 2008. Before that, outgoing Police Chief James Ankeny received a $121,000 cash payment when he left the city .

Like Armstrong, both former chiefs draw CalPERS pensions worth more than $200,000 a year. Weldon was also awarded more than $100,000 in deferred compensation.

Weldon's and Armstrong's contracts permitted more than three months off each year. That total covered one month of vacation, about three weeks of leave, as many as 12 sick days and 14 holidays (including Admissions Day, a holiday that celebrates the date California became a state).


(Excerpt) Read more at latimes.com ...


________________________ ________________________ ______________

According to Obama this is what we need more of.   ::)  ::)  ::)

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Re: California = Liberal Failed State
« Reply #191 on: July 11, 2012, 02:30:22 PM »
The New Normal: Municipal Bankruptcy
 National Review Online ^ | July 11, 2012 | Michael Auslin




Half a million Californians now live in bankrupt cities, as San Bernardino joins Stockton in declaring insolvency thanks to a $46 million deficit (a smaller city also declared bankruptcy this month). Lest anyone think this was a result solely of the 2008 housing bubble and financial crisis, Reuters reports that:

the city attorney general James Penman said San Bernardino’s city officials had been submitting false accounting documents for 13 of the last 16 years in an effort to hide the real financial situation of the city.

San Bernardino’s mayor since 2006, Patrick Morris, said he had never heard of allegations of fraud in the city’s accounting documents. So, felony malfeasance can be added to the deficit spending, unsustainable pension plans, and unresponsive government that, according to the Los Angeles Times, has left only the city only $150,000 in the bank. That means the city has less than one dollar in savings for each of its 209,000 residents. The Times goes on to note that the Chapter 9 filing will allow San Bernardino to renegotiate labor contracts, stall payments to creditors, and insulate the city from large lawsuit judgments. But the real fear is that if the city can’t make the next payroll, it will effectively shut down, including closing police and fire services.


(Excerpt) Read more at nationalreview.com ...

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Re: California = Liberal Failed State
« Reply #193 on: July 12, 2012, 10:00:14 AM »
San Bernardino bankruptcy: Why Other California cities could be next
 Los Angeles Times ^ | 07/12/2012




San Bernardino this week became the third California city to seek bankruptcy protection in the last month, and experts say it might not be the last.

"There are likely to be more in the future, but it's hard to know, since a lot of struggling cities may manage to work things out,'' said Michael Coleman, a fiscal policy adviser for the California League of Cities. "Some cities may not go into a bankruptcy, but they may dissolve. They may cease to exist.''

Once rare, turning to bankruptcy has become a painful but enticing option for cities whose labor costs and municipal debt far outpace anemic tax revenue. The Bay Area city of Vallejo began the current trend in May 2008, filing for Chapter 9 bankruptcy protection because, city leaders said, salaries and benefits for its public safety workers were eating up too much of the general fund.

Last month, Stockton became the largest city in the state to seek bankruptcy protection after it was unable to come to agreement with its employee unions and creditors on a plan to close a $26-million gap in its general fund.

On July 2, the tiny resort town of Mammoth Lakes filed bankruptcy papers in part because it was saddled with a $43-million court judgment it couldn't pay.

San Bernardino couldn't close a $45.8-million budget shortfall and would be unable make its payroll this summer, city leaders said. Days before Tuesday's City Council vote, the city of 211,00 people had just $150,000 in the bank. The city barely scraped together enough money to cover its June payroll.


(Excerpt) Read more at latimesblogs.latimes.com ...

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Re: California = Liberal Failed State
« Reply #194 on: July 12, 2012, 09:31:48 PM »
Three cities in California have declared bankruptcy over the past month.

But, hey. The weather is great, man!

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Re: California = Liberal Failed State
« Reply #195 on: July 13, 2012, 11:44:01 AM »
Chris Reed

Off the Rails

How union power plays could crash spectacularly in California

10 July 2012


The arrogance displayed last week by California’s legislature and its union comrades-in-arms can scarcely be exaggerated. In rejecting Governor Jerry Brown’s surprisingly ambitious pension-overhaul plan in favor of a proposal that defines minor tinkering as “reform,” Democratic legislative leaders have ignored how crippling the pension crisis has been for local governments, as well as the bipartisan support that exists for serious reform. And in approving on Friday Brown’s plan to spend $5.8 billion in federal and state funds on a troubled high-speed rail project—the so-called bullet train—Democratic leaders have dismissed mounting public skepticism about the project as well as substantial evidence from independent evaluators and journalists that it could become one of the world’s biggest public-works boondoggles.

If there is any good news here, it is that the legislature’s contempt for common sense and public opinion should only fuel California voters’ building anger toward the Sacramento establishment. This anger seems increasingly likely to deal two huge strikes against the status quo in November.

The first involves the California budget. Brown’s $92 billion spending blueprint for 2012–13 relies heavily on voter approval of a November ballot measure to hike the state sales-tax rate and impose higher income taxes on the wealthy. Brown claims these moves will raise $8.5 billion. If voters balk, $6 billion in already-set “trigger” cuts would kick in, with by far the biggest chunk taken out of public schools through a reduction in the school year from 175 days to 160.

Taken at a time when most voters still aren’t paying attention and before any serious campaigning has gotten under way, polls show soft support for the tax measure—but they also show that the plan loses substantially if it’s linked to high-speed rail spending. Tax fighters may not need to play the rail card, however: California voters have a record of rejecting tax increases, including a proposal similar to Brown’s that lost decisively in a 2009 special election.

A second ballot measure could spur a more profound change. The “Stop Special Interest Money” campaign, while billed as limiting the political influence of both unions and corporations, is primarily about curbing unions’ vast power by banning the use of members’ dues for political purposes. The measure is sure to be vilified by the California media, whose members tend to share the Democrats’ view that the greatest problem the state faces is the required two-thirds majority to raise taxes. In 2005, unions used a massive TV blitz to defeat a similar measure, Proposition 75, and it’s likely that they’ll try to do the same again. But in the seven years since then, public perception of union power in the Golden State has become much more negative.

Which brings us to last week’s double whammy from Sacramento. Unions drove both the decision to kill Brown’s pension-reform plan and to pursue his bullet-train project. To use a trendy new term among the political class, the “optics” of both decisions couldn’t be worse. The legislature’s pension vote came just days after the city of Stockton, facing unsustainable public-employee compensation costs, declared bankruptcy. The commitment to spend $5.8 billion in taxpayer funds on a bullet-train segment in the lightly populated Central Valley came after two years of apparent anguish from Brown and Democratic allies about harsh cuts in state safety-net programs.

Bad as they are, if these blinkered public-policy decisions prompt voters to rebuff a massive tax increase and to curb union power, they will have had a salutary effect. Freed from some of the worst excesses of union looting, Sacramento might then return to conventional governance for the first time since Pete Wilson’s gubernatorial tenure ended in 1999. As for the bullet train, environmentally based lawsuits might delay construction until a likely 2014 state referendum on scrapping the project. And if that project does come to another vote, count on Californians to do the right thing.

Chris Reed is an editorial writer for the U-T San Diego newspaper, formerly the San Diego Union-Tribune.

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Re: California = Liberal Failed State
« Reply #196 on: July 17, 2012, 03:28:45 PM »

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Re: California = Liberal Failed State
« Reply #197 on: July 18, 2012, 03:15:57 AM »
City of Compton (California) may declare bankruptcy by September: officials
Reuters ^ | July 18, 2012 | Ronald Grover and Jim Christie
Posted on July 18, 2012 6:01:10 AM EDT by Zakeet

The City of Compton, a city of 93,000 people located on the outskirts of Los Angeles, must decide by September 1 whether to seek bankruptcy, according to its two most senior financial officials.

Such a move would see it join a growing number of deficit-hobbled California cities that have used the filing to restructure onerous debt loads.

Compton, which has an accumulated $43 million deficit and has depleted what had been a $22 million reserve, will run out of cash to make its payroll on September 1 at its current cash consumption rate, city comptroller Steven Ajobiewe told the city council during a July 17 meeting.

"I have $3 million in the bank and $5 million in warrants due in the next 10 to 12 days," said city treasurer Doug Sanders. "By then, the council will have a decision to make: don't pay the bonds, default on them, or have a serious talk about bankruptcy."

The city council adjourned at 11 pm without discussing a potential bankruptcy filing.

Compton Mayor Eric J. Perrodin also said he brought unspecified charges of "waste, fraud and abuse of public monies" to California officials, and had met with auditors from both the state and Los Angeles County.

He told the city council that at one point in its past the city had overspent legally set limits on certain programs by $17 million but would not elaborate.

Neither the state nor county has started an audit or investigation, city officials said.

[Snip]

Unlike San Bernardino, which has a large unfunded liability to pay its employees' pensions, Compton years ago increased its property tax to fund its workers' pension obligations, said Perrodin, and the retirement program is fully funded.

(Excerpt) Read more at reuters.com ...

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Re: California = Liberal Failed State
« Reply #198 on: July 20, 2012, 05:02:07 AM »
Compton May Be The Next City To Go; Then Victorville, Montebello, Los Angeles, Oakland
 


Mike "Mish" Shedlock, Global Economic Trend Analysis|46 minutes ago|2|

 
 


As part of a growing trend, Compton California is on the verge of bankruptcy. When it files (and it will eventually), it will become California's 4th city to do so.

The Huffington Post reports Compton Will Run Out Of Funds By September 1
 
Compton, Calif. could be the fourth city in the Golden State to seek bankruptcy protection.
 
At a city council meeting Tuesday, officials announced that Compton is set to run out of funds by Sept. 1. Compton, which has only 93,000 residents, faces a deficit of $43 million after having depleted a $22 million reserve, reports Reuters.
 
"I have $3 million in the bank and $5 million in warrants due in the next 10 to 12 days," said city treasurer Doug Sanders during the live-streamed city council meeting. "By then, the council will have a decision to make: don't pay the bonds, default on them, or have a serious talk about bankruptcy."
 
What's to Consider?

Compton is clearly broke so there is noting to consider. The LA Times has more grim details in Compton on brink of bankruptcy.
 
City officials announced that Compton could run out of money by summer's end, with $3 million in the bank and more than $5 million in bills due...
 
In many cases cities resorted to these measures because they could not balance their books or raise revenues but were loath to make cuts.
 
A recent grand jury report found that the High Desert city of Victorville used a series of disparate, possibly illegal measures to stave off insolvency. Those included dipping into sanitation funds to help keep the city's treasury afloat, loaning water agency funds to bail out the city's electric utility and siphoning $2 million in airport bond funds to buy land for a city library.
 
The inter-agency borrowing was so questionable — with $69 million sloshing around City Hall as of June 2011 — that the Securities and Exchange Commission launched an investigation, which is ongoing.
 
In Montebello, state auditors last year said they were troubled to learn that the city regularly used money designed for specific purposes to balance its budget — in apparent violation of the law.
 
Victorville, Montebello, Los Angeles, Oakland
 
It's a safe bet to add Montebello and Victorville to the list. Moreover, some of the big guns will eventually go under as well.

Unsound pension problems will be the death of many cities. I consider Oakland and LA to be sure things. It's just a matter of time.

Delays in filing will only waste more taxpayer money. Eventually cities will catch on and there will be a flood of bankruptcies.

S&P Revises Pennsylvania's Outlook to Negative

Citing pension problems and a slowing economy, S&P Revises Pennsylvania's Outlook to Negative
 
Standard & Poor's Ratings Services changed its outlook to 'negative' from 'stable' for Pennsylvania's general obligation debt because of growing spending pressures, particularly for public pensions, and a slow-growing state economy, the agency said on Thursday.
 
S&P affirmed the 'AA' credit rating on the state's general-obligation debt, but said it could lower that rating a notch in the next two years if Pennsylvania does not enact pension reform.
 


Read more: http://globaleconomicanalysis.blogspot.com/2012/07/s-revises-pennsylvanias-outlook-to.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29&utm_content=Google+Reader#ixzz21AC9Bwcy

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