California State Controller John Chiang today announced that the cities of Milpitas and Morgan Hill illegally tried to convert hundreds of millions of dollars of real estate, cash and investments that were required to be turned over to the State of California after Governor Jerry Brown and the State Legislature passed Assembly Bill 1x 26, [...]
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The klaxon horn went off this evening for California municipal bondholders when Moody’s credit rating service issued a report stating that the plummeting financial condition of many California counties, cities, school districts and other government agencies will soon result in large numbers of municipal bankruptcy filings. Concerned about their own potential liability for providing high [...]
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We were severely criticized last week by the left and the right for publishing “CALIFORNIA DEFAULT RISK TURNS BROWN INTO A CAPITALIST.” The report highlighted that California Governor Jerry Brown is steam-rolling environmentalists and regulators to generate more state tax revenue by expediting approval of pro-business infrastructure. But our detractors were stunned to learn from [...]
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There is nothing like the threat of insolvency and a downgrade to junk bond status to motivate traditionally liberal politicians to abandon the environmentalists who heavily fund their campaigns. Last week Governor Jerry Brown of California tossed one of his core campaign-bundling constituency under-the-bus at a bill-signing event in downtown Los Angeles. As Brown signed [...]
READ MORE »In what seems appropriate for a month ending in Halloween; the State of California just released a scary October Statement of General Fund Cash Receipts and Disbursements indicating annual revenue will plummet by $3.6 billion and spending will spike up by $10.2 billion this year. California has already drawn down 85% of its credit lines [...]
READ MORE »Jerry Brown, California’s quirky Governor, has made a credible first step on the road to reforming the State’s insolvent public pension plans. The state is the global leader for financially irresponsible government by racking-up $350 billion in unfunded pension liabilities. But with the threat of California’s credit rating being cut to the same “junk” level [...]
READ MORE »After years of California farmers being brutally starved in favor of providing a fulfilling life for the two inch Delta smelt; U.S. District Court Judge Oliver Wanger issued a scathing 140-page ruling that the federal government’s basis for actions to protect the Delta smelt were so unscientific that they were: “unworthy of the public trust” For [...]
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The three largest California public retiree plans (CalPERS, CalSTRS, and UCRS) that administer pensions of approximately 2.6 million State and Local public current and retired employees have been under tremendous scrutiny since last year’s release of the Stanford University Institute for Public Policy report: “Going For Broke”. The study concluded that California retirement plans liability was under-funded by over [...]
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