A couple weeks ago CalPERS and other government pension funds released glowing reports about their earnings, which had “soared” in the last fiscal year. Most pension funds reported in excess of a 20% return on investment. The inference was that the pension managers were back in the saddle, riding great returns to pension fund recovery.

The unions and their apologists went into full attack mode, ridiculing those who have been expressing deep concerns about defined benefit pension plans and the lackluster returns this past decade (among several others problems) — when pension funds averaged under 6% returns per year.

The pitch from obnoxious labor posters and bloggers has been that “happy days are here again,” and that essentially we can now look forward to a string of similar annual returns that will make up the massive unfunded liability deficit that ALL such funds face.

Gee — what a difference two weeks makes. At this point, the stock market has lost all gains since the beginning of the year — and then some. Yesterday’s 500+ point DJIA drop was only the latest down day — though (so far) by far the… Read More

Liberals in CA vehemently dislike the CA initiative process. Indeed, they just tried to enact an effective ban on the process, but the bill was vetoed by Gov. Brown.

These mislabeled “progressives” dislike citizen-signed propositions, as such measures bypass the institution the Big Government advocates control throughout most of the state — elected officials. I doubt we’d be hearing the proposition bleating from them if such were not the case.

Moreover, the feigned concern about improprieties in signature gathering ignores the benefits of a full vetting of the prop once it is on the ballot — especially compared to our chaotic state legislative procedures.

I recommend an informative out-of-print book by the late State Senator H.L. Richardson — “What Makes You Think We Read the Bills?” http://www.amazon.com/What-Makes-Think-Read-Bills/dp/0916054780

Most of us know that in the closing days of each legislative session, our intrepid CA elected leaders vote on literally hundreds of ever-changing bills — some even changed surreptitiously. NO ONE knows what… Read More

Here’s a depressing but documented comparison of California taxes and economic climate with the rest of the states. The news is breaking bad, and getting worse (I keep updating this fact sheet):

California has the 3rd worst state income tax in the nation. 9.3% tax bracket starts at $46,766 for people filing as individuals. 10.3% tax starts at $1,000,000 LINK

Highest state sales tax rate in the nation. 7.25% (as of 1 July). 7% is next highest (does not include local sales taxes) LINK Table #15

California corporate income tax rate (8.84%) is the highest west of the Mississippi (our economic competitors) except for Alaska. LINK #8 — we are 8th highest nationwide.

California’s 2011 Business Tax Climate ranks 2nd worst in the nation. LINK

Fourth highest capital gains tax 9.3%… Read More

The Family Action PAC is one of California’s most prominent conservative donor organizations. Founded years ago in Orange County as a ideologically conservative counter-point to the New Majority, the FAP has long worked hard to elect conservatives to office at the state and local levels.

FR readers know that during this latest state budget debate, there was a lot of controversy within GOP ranks over whether to support legislation that would abolish RDA’s — this legislation was tied to other legislation that would allow RDA’s to continue to exist if they paid money from their plush bank accounts into the state’s needy coffers.

It was clear to me and many other conservatives that any solid legislation that would impair, hamper, or abolish RDAs — is a welcome idea. As I have said, Redevelopment Agencies may have started with a good idea in mind, but they have become a good old boys network of redistributing money through taxes into local development projects, typically being awarded to friends and political contributors of local city council members (who conveniently are the members of the city redevelopment… Read More

Democrat lawmakers are protesting a proposed referendum on California’s new “Amazon Tax” law. But keep in mind that this issue isn’t about Amazon. It’s about the thousands of California jobs the “Amazon Tax” places in jeopardy.

The lawmakers who authored the ‘Amazon Tax’ should be ashamed to appear in public. Their law has failed to achieve their goals. Instead it is punishing thousands of California small business affiliates who are losing income and may even be forced to leave the state.

The Legislature should admit its mistake and repeal the Amazon Tax. But short of that, the fastest way to save California jobs is through a referendum rather than years of costly litigation. Let the people engage in the debate and decide the issue for themselves.… Read More

I don’t fit neatly into a box. I am a conservative Republican who doesn’t raise taxes and votes to cut nearly every bit of government spending I can find. But, I am against the wars in Afghanistan and Libya, think we should cut defense spending, support legalizing internet gambling, sponsor a lot of bills to prevent abuse of animals, want pristine, clean oceans and believe we need some government support of home mortgages. No, that is not a box.

For those of you who don’t know my background, I am a native Californian raised by two very conservative and politically active parents. “We were Taft Republicans”, my mother often told me to make sure I understood that Dwight Eisenhower was way too moderate for them. The last Democrat I voted for was Sam Yorty for Mayor of Los Angeles in the 1970s. I think he later changed parties. I’m about as Republican as you get.

But, my ideology guides my thinking. It does not replace it. I believe that this job is about solving problems. And, there is never only one prescription to right every wrong. Napoleon Bonaparte was certainly the most brilliant military strategist of the 19th century and… Read More

Even as Governor Jerry Brown lifted his pen today to sign the so-called “Amazon Tax” into law, thousands of affiliates across California were losing their jobs.

Major out-of-state retailers like Amazon.com and Overstock.com are terminating their California affiliate advertising programs in response to this legislation. I’ve been warning for months that this would happen, but apparently these warnings fell on deaf ears.

The so-called ‘Amazon tax’ is truly a lose-lose proposition for California. Not only won’t we see the promised revenues, we’ll actually lose income tax revenue as affiliates move to other states.… Read More

The State of California is currently sitting on billions of dollars of uncollected debt that could be worth hundreds of millions of dollars on private debt markets. Rather than raise taxes on the hardworking people of California, state leaders should sell off debt to raise the cash we need—just like private businesses do.

Selling aging debt is a common practice in the private sector and has also been used successfully by many local governments. Selling debt makes a lot more sense than selling buildings you have to turn around and lease back.

The sale of these assets could provide much-needed one-time cash. Combined with rising revenues, these dollars could help protect priority programs and eliminate the perceived need to impose higher taxes on struggling Californians.

Today I called upon the Governor and legislative leaders urging them to consider such a sale in their ongoing budget negotiations.

Below is the text of my letter.

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June 6, 2011

Dear Governor Brown and Legislative Leaders:

I am writing to suggest monetizing a portion of the billions of dollars in debt owed the State of California as a possible… Read More