“Alright, but apart from the sanitation, the medicine, education, wine, public order, irrigation, roads, the fresh water system and public health, what have the Romans ever done for us?” – John Cleese, Monty Python’s Life of Brian, 1979

Any discussion of California’s neglected infrastructure has to recognize the three factors most responsible, libertarians, environmentalists, and government unions. Picking libertarians as the first example is not by accident, because libertarians are perhaps the most unwitting participants in the squelching of public infrastructure investment. By resisting government involvement in any massive public works project, libertarians provide cover to public sector unions who know that public works fundingcompetes for tax revenues with their own pay and benefits.

When it comes to squelching public infrastructure investment, however, nobody can compete with California’s environmentalist lobby. Their lawsuitshave stalled infrastructure development for decades. And the identity of interests between government unions and environmentalists is multi-faceted. The most obvious is that when there is no… Read More

Subtitle: The Fleecing of Sacramento’s Taxpayers

Sacramento’s City Manager John Shirey released the proposed 2015/2016 budget last week. It’s clear that this city manager, the mayor, and the city council members are cavalier with their spending of other people’s money.More is never enough. And the word “austerity” is not in their vocabularies.

The other important issue to note is even with his latest attempt to become a strong mayor squashed (again) by the voters last year, Mayor Kevin Johnson is the driving force anyway behind this… Read More

As part of an ongoing effort to help those who struggle to keep a roof​ over their heads, the Howard Jarvis Taxpayers Association has filed an​ initiative that would increase the homeowners exemption and the​ renters tax credit.This is the first step in qualifying the initiative, the​ California Homeowners and Renters Tax Relief Act of 2016, for the​ ballot.The Office of the Attorney General has about 60 days to provide​ a​ title and summary so that signature gathering can begin.

Only about one-third of Californians can afford to realize the American​ dream of owning their own home. The homeowners’ property tax​ exemption of $7,000 (worth a $70 deduction on your property taxes)​ has not been increased since 1972 when the median priced home sold​ for $28,660​. Currently, an average home is selling for nearly ten (10)​ times that amount, and yet the homeowners’ exemption remains​ unchanged. Increasing the homeowners’ property tax exemption from $7,000 to​ $32,000 will save every homeowner in California an additional $250 per​ year.​ This will help to mitigate the heavy financial burden placed on​ homeowners from… Read More

Central Valley farm workers will leave their jobs in the fields and make the journey to Sacramento tomorrow morning to support a proposed new law that would finally give them the same rights afforded to almost every other union member in America and it’s my sincere hope that they are victorious.

As the law stands today California farm workers are essentially powerless when it comes to determining their own labor contracts. They can’t be in the room when their contracts are being hammered out by the union and the Ag Labor Board, they don’t have the right to approve or decline the contract that was created without their knowledge or input. Also, if the union they chose to represent them abandons them, they have no recourse.

Thousands of farm workers from the Central Valley… Read More

Wisconsin Gov. Scott Walker recently signed a right-to-work bill into law. This is significant because a“right-to-work” law is a statute that prohibits union security agreements, or agreements between labor unions and employers, that govern the extent to which an established union can require employees’ membership, payment of union dues, or fees as a condition of employment.

In California, Gov. Jerry Brown has ignored thousands of farm workers who don’t want to be unionized. Apparently there is no “right-to-work” in California under this governor.

The significant labor reforms enacted by Walker have struck many important blows against organized labor, effectively ending collective bargaining for Wisconsin public workers. In the four years since these reforms were enacted, the state’s most influential labor unions have… Read More

At nearly 66 cents per gallon, California motorists pay the second highest gasoline tax in the nation. When the hidden “carbon tax” on producers — which raises the price of a gallon of gas about 15 cents — is counted, our state is far and away number one.

To add insult to injury, we are told that we are not paying enough. Sacramento has been hatching plans to squeeze even more from motorists including a proposal to charge every driver a $52 annual transportation fee, and a monitoring program so that car owners can be charged for miles driven.

Now there is no question that road and bridge maintenance is lagging in the Golden State. Most counties have an average pavement rating of “at risk” or “poor” according to a finding by the California Transportation Commission. In addition to the safety hazards caused by poor road maintenance, there is a direct cost to the average California driver of hundreds of dollars for vehicle maintenance and tire wear.

Before assuming that that the Sacramento politicians are justified in seeking to dig deeper into drivers’ wallets, it is important to point out that billions in transportation tax… Read More

I’ve posted on this topic before. But the numbers have been updated, with the vaunted post-recession “housing building boom” in California fizzling out. It’s a sobering graphic.

http://www.aei.org/publication/monday-afternoon-linkage-4/

Chart of the Day. More permits for single-family homes have been issued in Houston than in the entire state of California both: a) this year through March (9,184 in Houston vs. 9,081 in California) and b) from 2011 through March 2015 (133,462 vs. 132,915).

Related: Theone-way rental rate for a 26-foot U-Haul truckfrom Los Angeles,… Read More

Recently I spoke to Pacific Beach Realtors about the benefits of Prop 13. Well received, of course. I’m seeking more such speaking engagements.

But for me the most interesting aspect was a private discussion I had with a knowledgeable lobbyist for the CA apartment industry. The rep made the solid observation that their clients — real estate trusts — LOVE to invest in California apartments (and other commercial property) because they can count on the state and local governments to do everything they can to keep out future competition. The resulting scarcity drives up rents, and increases the resale value of such properties.

It’s a point I’ve been making for decades: The free market is good for CONSUMERS, but not necessarily welcome by INVESTORS. For instance, the free market in Houston is great for home buyers and renters, but lousy for real estate investors. Any increase in demand is shortly matched by an increase in supply.

All investors and business people seek to provide goods and services that have limited competitors. In a free market that works well, but when government gets involved, it can turn into crony… Read More