Author: David Crane

California’s Hidden Expenses: Part III

$6B YOY Growth In Unfunded Pensions Owed State Employees Last year Governor Brown listed the state’s liability for State Employee Pensions at $43 billion (see below and page 3 here). This year he lists that same liability at $49 billion…

California’s Hidden Expenses: Part II

Brown’s Budget Understates 2017–18 Pension Costs By $4.5 billion Governor Brown budgets $9 billion for pension contributions for FY2017–18: Pension Costs, page 128, Governor’s Budget FY2017–18 But even that large figure (83% higher than five years ago) is understated by $4.5…

Hidden Expenses In California’s Budget

First in a Series: $2.3 billion Of Undisclosed OPEB Expense A year ago, Governor Brown listed the state’s Retiree Health liability at $71.8 billion (see page 3 here). This year he lists that liability at $74.1 billion (see page 8 here).…

Dissecting California’s Corrections Budget

Big Increase In Compensation Spending Per Inmate California under Governor Jerry Brown’s third and four terms continues to reduce its prison population, a welcome reversal of the steep population increase resulting from determinant sentencing legislation Brown signed in his first term.…

SF Chronicle: The good, the bad and the ugly of Obamacare

I walked precincts for Barack Obama in 2008 and rejoiced in his victory, but I wasn’t happy when, instead of taking advantage of a Democratic Party majority in Congress to pass climate-change legislation, he proposed the Affordable Care Act, colloquially…

Exxon, CalPERS and CalSTRS: Partners In Deception

Everyone knows about Exxon’s history of suppressing scientific studies linking fossil fuels and global warming. Fewer know about CalPERS’s and CalSTRS’s suppression of the true math associated with California’s unfunded pension obligations. As a consequence of that suppression, pension costs…

For Whom the California Budget Tolls

Who Really Bears The Burden Of Unfunded Retirement Costs Journalists and elected officials occasionally make the mistake of viewing budget problems in terms of size rather than where the budget item falls. For example, the costs of unfunded pensions and…

Fix Medi-Cal Or Lose UC and CSU

The Big Problem About Which Little Is Written As a new Congress takes office, newspapers are filled with articles about the potential consequences for California of federal changes to Medicaid but not about how California’s existing version of Medicaid — known as “Medi-Cal” — is…

CalPERS Must Stop Spinning, Part II

In response to a press inquiry about CalPERS’s recent board decision to require greater pension contributions from state and local governments, a CalPERS board member had this to say about investment markets: “The last 10 years [have] been fairly stagnant.”…

CalPERS Refuses To Bite Bullet

Will Continue Deferring Costs To Next Generation According to the New York Times, CalPERS will not consider cutting its investment return assumption below 7 percent, a rate well above long term historical returns for similar portfolios and its consultant’s forecast.…