Dear Legislators, We enjoyed reading the Senate Budget Plan and Assembly Budget Blueprint for 2022-23. These items stood out to us: We are pleased the Assembly proposes to “scrutinize prison operations.” With the inmate population below 100,000 yet prison staff positions at 55,000 costing $5.5 billion in salary and billions more in benefits, scrutiny is … Continue reading Assembly and Senate 2022-23 Budget Blueprints
Private Equity Executive Meets Public Reality
When a private equity executive filed papers to run for governor of Illinois in 2013, I wondered if he had done due diligence. That's because Illinois governors can do little without the consent of a majority of legislators whose terms of office, unlike the governor's term of office, are not term-limited. To me, being governor … Continue reading Private Equity Executive Meets Public Reality
SFUSD Ignores Millions In Federal Funds
San Francisco Unified School District spends up to 250% more than the average CA school district on OPEB, which are insurance subsidies for retired employees. That's because SFUSD is one of the few districts to subsidize retirees on Medicare. And because SFUSD doesn't take advantage of generous federal subsidies available under Obamacare for retirees under … Continue reading SFUSD Ignores Millions In Federal Funds
Stress Testing In Sacramento
Dear Legislators, In January the Department Of Finance will issue the Governor’s Budget for 2022-23. No section will be more important than the Stress Test, which forecasts revenue losses in the event of a stock market decline such as in 2001-3 and 2008-9. Last January, the Governor’s Budget forecast revenue losses of $100 billion. Just … Continue reading Stress Testing In Sacramento
Political Finance
A couple of supporters wrote to ask how this line in a recent WSJ op-ed — “Teachers were the fourth-largest campaign contributors to California’s legislative races in 2020 behind energy, prison guards and healthcare” — fits with our assertion that GFC is the largest bundler of direct donations to legislators and candidates for the legislature. … Continue reading Political Finance
LAO’s Impossible Task
Dear Legislators, The Legislative Analyst’s Office is filled with talented people who occasionally take on impossible tasks. Take LAO’s recent Fiscal Outlook for Schools in which it boldly predicts that “capital gains revenue [will be] strong in 2022-23.” I can’t predict the stock market next week much less next year but unlike the state I’m … Continue reading LAO’s Impossible Task
“Low Cost Collective Action, Persistently Applied”
Explaining what we do in a pithy fashion isn't easy but we got some help last week when a questioner translated my long-winded answer into “Low Cost Collective Action, Persistently Applied.” We like that! As informed GFCers know and many a special interest has demonstrated, political power in Sacramento is less about wealth than organization … Continue reading “Low Cost Collective Action, Persistently Applied”
CA Needs $100 Billion In Reserves
Dear Legislators,California needs at least $100 billion of reserves. Don't take our word for it. See page 245 of the Governor's Budget: “Revenue losses in this recession forecast would total over $100 billion (an average of over $30 billion per year) for three years, continue with more years of revenue declines in the range of … Continue reading CA Needs $100 Billion In Reserves
Lies And Leverage In La Habra
Last night the La Habra City Council was scheduled to approve the issuance of debt the proceeds of which would be deposited in the city’s pension fund. But that's not what they disclosed. Instead, they said the city was seeking approval “to exchange higher cost variable rate debt with lower cost fixed rate debt.” But … Continue reading Lies And Leverage In La Habra
Covered California Stands Out Again
November 1 marked the commencement of the Open Enrollment period during which residents can purchase health insurance for the upcoming year and another opportunity to praise Covered California, the state’s healthcare exchange that’s an exemplar of government services well provided. At a time when even the New York Times is cynical about blue state performance, … Continue reading Covered California Stands Out Again