There are many negative effects throughout both the private and public sectors that have resulted from the plummet of stock values on Wall Street. In the public sector, throughout the country, public pension funds were heavily invested in the market — and the results have been a plummeting of the value of these funds. The problem, of course, is that while nationally there has been a massive "evaporation of value" — the liabilities on these funds remain — with public employees expecting their defined benefit pensions to be fully funded and paid on promptly.

Here in California, the California Public Employees’ Retirement System (which is the fund for most state and local government employees and pensioners) has seen the value of its holdings fall by literally tens of billions of dollars. According to the Los Angeles Times, it’s holdings were around $240 billion last July — but have now (with the downturn and then a slight upturn in the market) down around 23% — a massive drop. The Times goes on to say that in order to make sure… Read More

There are many negative effects throughout both the private and public sectors that have resulted from the plummet of stock values on Wall Street. In the public sector, throughout the country, public pension funds were heavily invested in the market — and the results have been a plummeting of the value of these funds. The problem, of course, is that while nationally there has been a massive "evaporation of value" — the liabilities on these funds remain — with public employees expecting their defined benefit pensions to be fully funded and paid on promptly.

Here in California, the California Public Employees’ Retirement System (which is the fund for most state and local government employees and pensioners) has seen the value of its holdings fall by literally tens of billions of dollars. According to the Los Angeles Times, it’s holdings were around $240 billion last July — but have now (with the downturn and then a slight upturn in the market) down around 23% — a massive drop. The Times goes on to say that in order to make sure… Read More

When spending season rolls around on Capitol Hill, Americans cringe, and for good reason. But this season something is different. Yesterday evening when Congress began debate on its spending bills, it was brought to a screeching halt at the first sign of a Republican amendment, 30 minutes in.

It has been a long standing tradition that the spending bills that Congressconsiders are doneusing what is called an ‘open rule’ which allows for an unlimited amount of amendments to the bill, but the cabal led by Speaker Pelosi, President Obama, and Senator Reid has squelched the voice of opposition once again. Instead, they have decided to limit the number of Republican amendments, breaking with the open-rule precedent for the first time in as long as anyone can recall.

We’ve seen it in the automotive industry in the abrogation of dealer contracts and moving Americans out of cars, and now we are seeing it in how Congress spends the money of the American people. This is just further indication that if Obama, Pelosi, and Reid can’t coerce you into doing what they want, then they will force it upon you. They are trying to control much of our lives and now they… Read More

As foretold the South Pasadena Unified School District’s parcel tax passed. It was a little closer than I thought. The margin was 67.26%. It takes a 2/3rds vote to pass parcel taxes. This was the first of four tax elections in school districts in Los Angeles County. Voters seem have very few problem passing these taxes.

Local control seems to be the key for many of these communities. They feel they get their monies worth and have a say in how it is spent. How many can say that about Sacramento?… Read More

WALTERS IS BLOGGING THE BUDGET CONFERENCE State Senator Mimi Walters, one of three Republicans on the Budget Conference Committee who opposed the ill-fated big taxes/big budget/open primary deal last February, has set up a blog (www.waltersreport.com) to keep interested parties up to speed on what is going on in that key committee…

Senator Walters had this to say to FR:

As previously predicted, Undersheriff Bill Gore was just appointed by the County Board of Supervisors to the vacant position created by Bill Kolender’s mid-term resignation. It was expected the Supervisors would conduct interviews today, with a vote next week. However, the board proceeded with the decision to fill the spot just minutes ago.

The vote total by ballot, prior to the decision being memorialized by adopted motion, was as follows:

Bill Gore – 4

Jim Duffy – 2

Jay La Suer – 1

If it doesn’t seem to add up, that’s because each Supe was allowed more than one vote if needed to narrow the field. Supervisor Dianne Jacob voted for all three of those listed, prior to the final motion being adopted.

Gore will now be able to run as the appointed incumbent in next year’s election. Both Duffy and La Suer have announced campaigns, as have David Bejarano and Bruce Ruff. The latter two did not file the paperwork necessary to be considered to fill the vacancy by appointment.

With Gore’s appointment, it remains to be seen if all of the previously announced candidates stay in the… Read More

You have to love the creativity of the public employee unions that have lorded over the massive growth in state government spending — they have come up with a "pretty name" for their efforts to politically attack Republican legislators who have drawn a line in the sand against punishing Californians with higher taxes — "The Fair Budget Coalition" — hey, who would be opposed to a fair budget? No one, right? Well, I guess what you have to ask yourself is, "Fair to whom?"

You’ve heard this here before, and you will hear it a lot — public employee unions have two and only two core purposes. The first is to increase the wages and benefits for their respective members. The second is to increase their number of members. EVERYTHING else is window dressing.

The public employee unions that make up the "Fair Budget Coalition" — the California School Employees Association, American Federation of State, County and Municipal Employees, California Teachers Association, California Federation of Teachers, United Public Employees PAC, State Building and Construction Trades, Professional Engineers… Read More

FR friend John Myers with KQED Public Radio had an opportunity to sit down with Governor Schwarzenegger for a one-on-one interview. Myers 30,000 foot take from the exchange was that the Governor is flexible in terms of ideas that legislators may have to come up with $24 billion in cuts to resolve the state’s fiscal imbalance, with so much more money budgeted to spend than is actually available. But Myers says that the Governor is resolute about his opposition to resolving the situation with any tax increases.

You can click here to see Myers’ recent entry on his Capitol Notes Blog which gives more of his summary of the interview, along with a number of audio excerpts. If you are a public employee, retired, or a total political hack, you can listen to the entire twenty minute or so interview here.… Read More