Where is the Money Going?
Legislation Offers Hope that Historical Berkeley Post Office Won’t be Part of Nationwide Selloff
The bill would suspend sales until it has been determined “whether the Postal Service is complying with its statutory and regulatory requirements in the relocation of services, closure, and sale” of historic post offices. It aims to slow the march to sell off 600 buildings nationwide that Congress itself initiated. read more
Chief Justice: Add $1.2 Billion to Brown’s Court Budget to Avoid Closures, Layoffs
Questioning California’s commitment to “a fundamental right in a functioning democracy,” Cantil-Sakauye laid out her own plan for the state that would increase court funding $1.2 billion over three years. By her calculation, it would take an additional $266 million the first year just to “tread water.” The governor proposed less than half that, $105 million, but the chief justice thinks $612 million is a more realistic number. read more
3 State Facilities for Developmental Disabled Face Funding Loss after Patients Found in “Immediate Jeopardy”
The Lantern, Fairview and Porterville developmental centers were each cited during Medicaid recertification surveys last year for failing to meet around half of the required Conditions of Participation (COPs) and having between one and four patients in “immediate jeopardy.” The decertification warning is the latest chapter in a saga of woe stretching back more than a decade. read more
California’s Sugar High Costs It Hundreds of Millions for Healthcare
On the heels of a study showing an alarming spike in the consumption of sugary sodas by California adolescents, a new study shows the state could save $100 million on healthcare costs annually if it taxed the drinks an extra penny per ounce. Researchers at the University of California, San Francisco calculated that such a tax would reduce diabetes and heart disease 10-20% and be especially beneficial to African-Americans, Mexican-Americans and people with limited income. read more
Desert Hot Springs Teeters on the Edge of Bankruptcy, Again
The southern California city of 27,000 is looking at a $4 million budget deficit. The city council appears philosophically opposed to raising revenues. Two-thirds of its $10.6 million city payroll was spent on police, a high percentage partially because that is who is left. The city has laid off two-thirds of its staff in recent years. read more
Wells Fargo Main Investor in Nation’s Worst Private College Company
The operator of nearly 100 private colleges has more than 200 lawsuits pending against it, including a case brought by California’s attorney general claiming fraudulent marketing practices aimed at recruiting students. Wells Fargo is by far the biggest shareholder in the company, with 11.6 million shares. Corinthian’s second and third largest investors are the investment management firm BlackRock Fund Advisors (4.5 million) and investment adviser Royce & Associates (4 million). read more
Local Government Workers Earn More than the President—and Other Fun Facts
Lists like NBC’s and ones easily crafted at the Controller’s website are often delivered in a context-free environment that aids the cause. For instance, the list of 25 top city and county wage earners included 21 doctors. Some might construe that to be more of an issue about the health care industry than bureaucratic waste.
Others might find it more relevant that total wages dropped or were flat for all six state entities from 2009-2012. read more
Fired Employee Accuses Big Lobbyist Law Firm of Directing Illegal Political Contributions
Smira played hostess at many of the fundraisers, coordinating activities that included catering and what the suit describes as “arranging illegal gifts.” In the opinion of Smira’s lawyer, they were breaking the law: “Of the hundreds of invitations sent to candidates since early 2000, none met the current disclosure and notification laws set forth by the Fair Political Practices Commission (*FPPC*) regulations.” read more
Politicians Embrace the “Gift” that Is Not a Gift
One of those “not a gift” gift exceptions are “behests,” donations given to designated charities or organizations recommended by a politician. While state officeholders reported receiving $216,000 worth of gifts and travel payments in 2012, they also directed $6.7 million to favored organizations, according to FPPC documents. read more
222,000 Unemployed Workers in State Losing Benefits Saturday
Congress is home for the holidays after Republicans blocked attempts to extend claims beyond the initial benefit, which in California is 26 weeks. The odds of reviving the legislation in January without a tradeoff for some equally odious entitlement “reform” do not seem high. read more
Judge Blocks Public Pension Cuts in San Jose; Suggests Slashing Salaries Instead
While unions hailed the judge’s ruling as a victory because it recognized the sanctity of pension agreements, the city claimed it won because the judge said salaries and some health benefits were still fair game. The decision was certainly a better outcome for workers than a ruling in Detroit on December 3 by a federal bankruptcy judge that U.S. law trumped Michigan law and pensions could be reduced outside of a collective bargaining agreement. read more
PG&E Requests 12.6% Rate Hike on Same Day It Is Fined Millions by PUC
It received a request from Pacific Gas & Electric (PG&E) for a 12.6% natural gas rate increase—partially to pay for repairs to the troubled San Carlos pipeline—on the same day the agency fined the utility $14.35 million for mistakes that contributed to those problems. read more
Cash-Strapped Jurupa Valley, California's Newest City, Is about to Disincorporate
California’s newest incorporated city gave notice to the state this week that because of financial problems, it can’t meet a December 31 deadline to create a General Plan, the municipal blueprint required to maintain cityhood. Jurupa Valley, in Southern California, has been on the verge of financial ruin since the day it incorporated in 2011. read more
LAPD Ticket Quota Settlement Pushes City Costs to $10 Million
The deal settles two lawsuits filed in 2011 that alleged Captain Nancy Lauer required officers in the West Traffic Division to write at least 18 tickets each shift. Four out of five tickets were to be for major violations. When officers in the motorcycle unit resisted or missed their goals, their alleged harassment included being denied overtime assignments and having their schedules jacked around. read more
America’s Cup Gave Tepid Boost to S.F. Economy and Cost Taxpayers $5.5 Million
The Bay Area Council Economic Institute projected in 2010 that America’s Cup would increase economic activity in San Francisco by $1.37 billion, around three times the impact of hosting the Super Bowl, and net the city’s General Fund around $13 million. The Cup created only $364 million of activity and cost taxpayers $5.5 million. read more
Little Progress for Women Execs in California’s Top Corporations
A survey of the 400 largest publicly-held corporations headquartered in the state found not a single company with a gender-balanced board and management team.
About one-third of the companies didn’t have any women on the board of directors or in high management positions. Nearly 45% of boards lack a female presence. If a board does have a woman, she’s probably the only one. Only 21.8% have two or more. read more