The California public employee labor unions have a set of talking points they go to whenever the subject of reforming our taxpayer-backed pensions comes up. One major point theyloveto present boils down to this: “Employees can’t invest money as smartly as CalPERS [or other pension agencies] can. CalPERS will make a higher return, and will do it for less cost.”

While this assertion is rubbish, let’s compromise and give in on this point — let CalPERS continue to manage the employees’ retirement funds — even in 401k plans. The only thing we need to change is the taxpayer guarantee on the return earned, and the guaranteed amount paid out. In other words, we transition from adefined benefit(a guaranteed) plan with all its risks of unfunded taxpayer liabilities, to an earmarkeddefined contributionplan for at least the new employees — with the payouts reflecting the success or failure of the investments made by CalPERSet al.

Surely the unions would go along with this plan, right? After all,… Read More

In California, we fiscal reformers will always be swimming vertically up Niagara Falls until we break the back of public employee labor unions. We can do it, but only through the initiative process. NEVER will we achieve success through the legislature.

“Paycheck protection” — ending government payroll deduction of union dues — is is an initiative that should be put before the voters as often as possible. If nothing else, the union will be forced to spend $30-$50 million to block it.

Another initiative should FORCE state and local governments to put government functions out for competitive bid — “managed competition.” No option (except for police, perhaps). Unfortunately it’s hard to keep labor from crippling such a mandate, as happened in San Diego. Still, we know managed competition is a way to reduce union clout and dues — and the proof is the unions’ apoplectic response whenever such a contracting out option is suggested.

Even better would be to return to the 1970’s situation (when everything was great in California, according to liberals), when there were toothless public employee labor… Read More

On August 7, the Sacramento County Superior Court issued a ruling granting “class status” to the Howard Jarvis Taxpayers Association’s lawsuit against the California Fire Prevention Fee. This decision is welcome news to taxpayers.

If the court hadn’t granted class status, taxpayers might have been required to take legal action individually—an unfair, expensive and burdensome prospect.

When might the court strike down this illegal tax and force the state to issue refunds?

No one knows for certain, but here’s what’s likely to happen next:

Once the discovery process concludes—hopefully later this year—HJTA will file a motion asking the court to rule in favor of fire fee payers.

Should the judge grant the motion, there would be no need for a trial. Trials are usually reserved for cases where factual findings are necessary.

Assuming taxpayers prevail, it remains likely the state will appeal the ruling, perhaps all the way to the Supreme Court.

Still, any step forward is good news for rural… Read More

I was asked to write the following column for the “Fox and Hounds” website as a rebuttal to some nonsense published by a CalPERS booster who claimed we all profit from the stimulus of government pensions. My column wrote itself in a record 65 minutes — I just did the typing.

Government Pensions as Economic Stimulus? Even Breaking Windows Works Better by Richard Rider

Chuck Beckwith’s columncompetently lays out all the usual public employee arguments justifying their opulent pensions. A cursory review of the logic reveals just how breathtakingly flawed this reasoning is.

First and foremost: His core point is that pensions provide economic stimulus. This is the classic “… Read More

Since 1976, Lake Superior University annually publishes a “List of Words Banished from the Queen’s English for Mis-use, Over-use and General Uselessness.” A few of the obnoxious, overused words on the 2015 list include “polar vortex,” “takeaway,” and “foodie.” “Wasn’t it called ‘winter’ just a few years ago?” one student asked.“It’s ridiculous. Do we call people who like wine ‘winies’ or beer lovers ‘beeries’?” asked another.I love semantics.

But from the “you-can’t-make-this-stuff-up” file, in 2013, Big Brother officials in Seattlecalled for a ban on “potentially offensive” language. Government workers in Seattle were told that the words “citizen” and “brown bag” were deemed “potentially offensive” and would no longer be used in official documents and discussions. Seattle officials also said the word “citizen” was banned “because many people who live… Read More

“With a hearing now scheduled for Aug. 21, LA Unified’s teachers union, UTLA, will have the chance to argue before a neutral party that Alliance College-Ready Public Charter Schools, violated state education law by blocking the union’s efforts to bring Alliance teachers into its membership.” – Mike Szymanski, “UTLA outlines accusations against Alliance for anti-union efforts,” LA School Report, August 6, 2015

The “neutral party” to which Szymanski refers is California’sPublic Employee Relations Board(PERB), “a quasi-judicial administrative agency charged with administering the eight collective bargaining statutes covering employees of California’s public schools, colleges, and universities, employees of the State of California, employees of California local public agencies,” etc.

“Neutral.” Really?

A quick look at the directors of PERB provides yet another example of just how stacked the deck has gotten in favor of public employee unions. Following their names… Read More

Three women in the past 18 months have filed claims against three different Sacramento City Council members. The real “War on Women” is taking place in Sacramento, in whichpowerful officeholders use a combination oftaxpayermoney and their own personal wealth to avoid any public accountability for claims against them for egregious sexual harassment and other workplace abuse towards low power women.

In 2013, a former staffer of Vice-Mayor Angelique Ashby’s sued her in federal court for wrongful termination when Ashby fired her after she requested a day off to go to a doctor’s appointment. According to court documents, Ashby was working her 67 hours a week.

In May, its was revealed that a former staffer in the city manager’s office had filed a sexual harassment claim against Mayor Kevin Johnson. The city attorney and an outside law firm hired by the city attorney,supposedly investigated. They… Read More

BELEAGUERED TAXPAYERS INDEED

Especially in California, the word “taxpayer” is frequently preceded by the word “beleaguered.” Given our large tax burden and the tragic level of government waste, perhaps there should be a grammatical rule that these two words must always be combined.

While some California taxes are hidden, most are unfortunately and painfully obvious. But the same is not true for the level of wasteful spending by government. The unstated rule of politicians and bureaucrats is that average taxpayers must be kept in the dark about how their money is being spent.

Ask the average man or woman in the street what they think the 87 cent tax on a pack of cigarettes goes for and they will likely respond that it goes for anti-smoking programs – like those scary TV spots – and for health care.

Because of the detrimental impact of smoking on health, most Californians will agree that there seems a logical connection between what is being taxed and how the money is being spent. However, most of the tobacco tax does not go to these programs. Of the 87 cents, 50 cents goes to children’s programs… Read More