Today the legislature passed AB 74, the state budget for the 2019–20 fiscal year, which starts July 1. Governor Newsom is expected to sign it. Here’s our summary view: The Good: The legislature adopted the essence of Governor Newsom’s Revised Budget Proposal. As we expressed in our review of that proposal in May, to his great credit Governor Newsom … Continue reading California’s 2019–20 State Budget
Category: OPEB
Other Post-Employment Benefits
SF Chronicle: California should transition retired public employees to Covered California
Opinion // Open Forum Last month I turned 65 and became eligible for Medicare, the national health insurance program for people my age and older. Medicare is fantastic — and fantastically cheap — health insurance. But, believe it or not, if I were a retired California state employee, both I and my dependents would be entitled to … Continue reading SF Chronicle: California should transition retired public employees to Covered California
One Last Task For Jerry Brown
Prevent a strike at LAUSD On January 7, Gavin Newsom will be sworn in as governor of California. On January 10, a strike has been scheduled by the LA teachers’ union (UTLA) against LA’s school system (LAUSD). A strike will impact 600,000 students — including many who get health and nutrition services at school — and their families plus the … Continue reading One Last Task For Jerry Brown
Kafka In LA
If ever you wanted a sense of the Kafkaesque world that often characterizes California politics, imagine yourself in the shoes of Austin Beutner, Superintendent of the Los Angeles Unified School District (LAUSD). Yesterday, you were the target of a march by the United Teachers of LA (UTLA) union demanding smaller class sizes and threatening to … Continue reading Kafka In LA
LAUSD Revenues = $298,000 Per Teacher
Los Angeles Unified School District collected $7.2 billion in revenues in its 2017–18 fiscal year. That translates into $298,000 per teacher, 42 percent more than four years earlier: LAUSD General Fund Revenues/Number of Teachers Yet spending on teacher salaries rose only 20 percent over that same period, from $72,000 to $87,000 per teacher: LAUSD Spending on … Continue reading LAUSD Revenues = $298,000 Per Teacher
Reducing OPEB Debt In California
OPEB (“Other Post Employment Benefits”) debt largely consists of subsidies to retired employees for medical insurance premiums. OPEB debt owed by the state doubled in the last decade to more than $90 billion and state spending in the 2018–19 California state budget on OPEB will be >80 percent higher than a decade ago. The burden … Continue reading Reducing OPEB Debt In California
Government Debt Growth In California
Yesterday my political party (Democratic) incorrectly tweeted that California was “paying down debt.” Nothing could be further from the truth. Net, California added more than $200 billion in debt over the last decade. The only debt paid down was budgetary debt of ~$30 billion, a small fraction of added debt of more than $250 billion. … Continue reading Government Debt Growth In California
The Mystery of Jerry Brown And California’s Prison Employees
Governor Jerry Brown is negotiating yet another salary increase for state prison employees, the fourth in seven years. Salaries for California’s prison employees already exceed $5 billion per year, 2.5x the revenues of the country’s largest private prison corporation. Pension and other benefits raise the total compensation cost to $8 billion per year, nearly $1 … Continue reading The Mystery of Jerry Brown And California’s Prison Employees
How To Get More Money For CA Teachers
Classrooms should be fully staffed with adequately compensated teachers. But that is not the case in California despite a >50 percent increase in spending since 2010. The principal reason is the diversion of school dollars to pensions and other retirement costs. Governor Brown reports annual spending of $16,000 per student but only about half reaches … Continue reading How To Get More Money For CA Teachers
The ‘Big Three’ killing California’s public services
Gov. Jerry Brown’s revised budget for 2018-19 predicts general fund revenues will be 30 percent greater than 10 years ago yet key services will receive less money than they did back then. Brown’s budget proposes 14 percent less money for the judicial branch and Department of Social Services than a decade ago, 1 percent less … Continue reading The ‘Big Three’ killing California’s public services