October 11, 2010, The Orange County Register - Most of you think California is broken. There's no relief coming from Sacramento, only stalemate. The budget deficit grows with no end in sight. On the business side, there aren't enough jobs. California is No. 3 in the nation for unemployment. For the last several weeks we have been asking you how you feel about California's crisis, what you think are the most pressing issues and how you think they should be fixed. You have responded and we have heard you. This site is our effort to answer you...
April 2, 2010, Howard Bornstein, Stan Markuze, Cameron Percy, Lisha Wang and Moritz Zander, Stanford Institute for Economic Policy Research - CalPERS, CalSTRS, and UCRS1 together administer the pensions of approximately 2.6 million Californians. Between June 2008 and June 2009, these three public pension funds lost a combined $109.7 billion in portfolio value (see Table 1). The ability of these three funds to meet their future obligations has significant implications for the fiscal health of the state and public employers, the effective underwriters of many public pensions. In this policy brief, we ask two questions: (1) what is the current funding shortfall of CalPERS, CalSTRS, and UCRS, and (2) what policies would prevent a similar shortfall in the future? … We conclude that California’s public pension liabilities are substantially understated. Given the consequences of pension underfunding, we believe every effort should be made in short order to implement policy changes to reverse the current shortfall and to prevent a similar shortfall in the future. Specifically, improved long-term funding outcomes can be influenced through higher contributions, investment in less risky assets, and lower benefit levels…
April 2010, Josh Barro and Stuart Buck, Manhattan Institute for Policy Research - To all the other fiscal travails facing this country’s states and largest cities, now add their pension obligations, which are far greater than they may realize or are willing to admit. This paper focuses on the crisis in funding teachers’ pensions, because education is often the largest program area in state budgets, making it an obvious target for cuts. Although it is generally acknowledged that education is the foundation of every modern society’s future prosperity, schools unfortunately will have to compete with retirees for scarce dollars. This competition is uneven, because retirees have a legal claim on promised pension benefits that supersedes schools’ budgetary needs. Consequently, Americans can look forward to higher taxes and cuts in services, resulting in fewer teachers, bigger classes, and facilities that are allowed to deteriorate. In several states, these developments have already arrived .. California, the most populous state, has the largest unfunded teacher pension liability: almost $100 billion…
March 2010, Robert P. Murphy, Ph.D. and Jason Clemens, Pacific Research Institute - Robert P. Murphy, Ph.D. and Jason Clemens, Pacific Research Institute In a quest for solutions, this second installment of the California Prosperity Project assesses California’s tax burden, the structure of its tax system, and how both of these affect the state’s competitiveness. The research on which this study is based shows that taxes matter. When we impose taxes on certain things, we basically tend to get less of those things. Taxes influence decisions concerning work effort, savings, investment, entrepreneurship, risk taking, and job creation. These are all things California needs. Additional work, greater investing by individuals and businesses, and more entrepreneurship are the foundations for a prosperous society. Understanding how tax rates, and in particular marginal tax rates, influence these activities is critical in understanding the challenges facing California…
2009-2010 Saramento County Grand Jury - While employers, employees, and retirees seem to consider an employer-sponsored health plan a desirable benefit, the continuing escalation of health care and premium costs places enormous fiscal pressure on school districts that try to maintain the benefits. Unless union contracts are renegotiated so that benefits are reduced or employees contribute to the payment of healthcare costs, the consequences will be devastating. Health care costs will continue to escalate. If school districts fail to plan for funding of negotiated obligations for retiree health benefits, and employees and/or unions fail to assume some of the costs of the benefits, school districts will be unable to provide a quality education for students and may become bankrupt…
Winter 2010, Chris Edwards, Cato Journal - Public sector compensation is becoming a high-profile policy issue. While private sector wages and benefits have stagnated during the recession, many governments continue to increase compensation for public sector workers. At the same time, there are growing concerns about huge underfunding in public sector retirement plans across the nation. This article examines the compensation of state and local workers, who account for 20 million of the 23 million civilian government workers in the United States. State and local workers include teachers, college instructors, police officers, health care administrators, and many other occupational groups…
August 2009, Robert P. Murphy, Ph.D. and Jason Clemens, Pacific Research Institute - California is blessed in many ways. The nation’s most populous state enjoys advantageous trade access to Asian and North American markets, and its well-diversified economy ranges from basic agriculture to advanced research and development. California is home to some of the world’s most prestigious and productive universities, which serve as hubs of high-tech innovation. California also features a hospitable climate that offers real lifestyle advantages to its residents. And yet, with all these assets, the state’s economy is very ill. The economic sickness, which has manifested itself in the ongoing budget crisis and worsening debt status of the state, goes well beyond the current cyclical economic downturn that is burdening most states. In category after category of economic performance, the Golden State is generally a laggard state, which should be unacceptable given its vast potential and natural advantages...
May 9, 2007, 2006-2007 Orange County Grand Jury Examination of CUSD "Enemies Lists," Superior Court of the State of California, Central Justice Center, County of Orange, In Re The Proceeding of: Allegation of Misuse of Public Funds with Capo Unified School District
April 26, 2007, 2006-2007 Orange County Grand Jury Examination of CUSD "Enemies Lists," Superior Court of the State of California, Central Justice Center, County of Orange, In Re The Proceeding of: Allegation of Misuse of Public Funds with Capo Unified School District
April 24, 2007, 2006-2007 Orange County Grand Jury Examination of CUSD "Enemies Lists," Superior Court of the State of California, Central Justice Center, County of Orange, In Re The Proceeding of: Allegation of Misuse of Public Funds with Capo Unified School District
January 19, 2007, 2006-2007 Orange County Grand Jury Examination of CUSD "Enemies Lists," Superior Court of the State of California, Central Justice Center, County of Orange, In Re The Proceeding of: Allegation of Misuse of Public Funds with Capo Unified School District
November 28-29, 2006, 2006-2007 Orange County Grand Jury Examination of CUSD "Enemies Lists," Superior Court of the State of California, Central Justice Center, County of Orange, In Re The Proceeding of: Allegation of Misuse of Public Funds with Capo Unified School District
October 18, 2006, 2006-2007 Orange County Grand Jury Examination of CUSD "Enemies Lists," Superior Court of the State of California, Central Justice Center, County of Orange, In Re The Proceeding of: Allegation of Misuse of Public Funds with Capo Unified School District
October 17-18, 2006, 2006-2007 Orange County Grand Jury Examination of CUSD "Enemies Lists," Superior Court of the State of California, Central Justice Center, County of Orange, In Re The Proceeding of: Allegation of Misuse of Public Funds with Capo Unified School District
August 21, 2006, 2006-2007 Orange County Grand Jury Examination of CUSD "Enemies Lists," Superior Court of the State of California, Central Justice Center, County of Orange, In Re The Proceeding of: Allegation of Misuse of Public Funds with Capo Unified School District
August 16, 2006, 2006-2007 Orange County Grand Jury Examination of CUSD "Enemies Lists," Superior Court of the State of California, Central Justice Center, County of Orange, In Re The Proceeding of: Allegation of Misuse of Public Funds with Capo Unified School District
1990-1991 Orange County Grand Jury - In connection with expenditures of public funds in support of the May 9, 1989 election ballot, "Measure A," the grand jury found that the board of trustees committed the following legal and ethical violations: (I) improper use of district funds and property for political activities, including (A) "incentive pay" for principals, (B) phone banks for calling voters, (C) employing political consultants for assistance in the election, and (D) bulk mailing privileges and print shop facilities to distribute mass mailings promoting the election; (II) improperly closed school board meeting; (III) failure to report expenditures as required by law; and (IV) improper use of pupil records…