Where is the Money Going?
California’s Four Newest Cities Wrecked by State Raid on Funds
California’s four newest cities, teetering on the brink of financial ruin, won’t be bailed out by the state government that put them in harm’s way.
Governor Jerry Brown vetoed Assembly Bill 1098 this week after claiming that the state couldn’t afford to put back $18 million it took in June 2011 from the state motor vehicle license fund to pay for local public safety programs. read more
Billionaires Aplenty in a State Ravaged by Poverty
More than one-fifth of the Forbes 400’s richest Americans live in California, not far from three of the nation’s five poorest regions.
Fresno, Modesto and the Bakersfield-Delano area are among the top five U.S. regions with people living under the poverty line, according to U.S. Census figures, an area that is home to the state’s dominant $35 billion agriculture industry. read more
The One Force that Could Block AEG’s L.A. Stadium Appears to be AEG
The demise of redevelopment agencies in the state, and their lucrative source of taxpayer dollars, did not slow the momentum of Anschutz Entertainment Group’s (AEG) drive to build a new football stadium in downtown Los Angeles and bring a National Football League team to the city after a 17-year absence.
In the end, it appeared there remained just one force that could upend the inevitable. It was AEG, itself. read more
Koch-Related Money Doubles Anti-Union Prop. 32 Campaign Funds
The California Teachers Association has contributed $16.1 million to oppose Proposition 32, with the knowledge that if the ballot measure passes in November, it might very well be the last time it has that kind of money to put in a political campaign.
Last week, a group with ties to the conservative billionaire Koch brothers kicked in $4 million in support of Prop. 32, the “Paycheck Protection” initiative, and they are guaranteed to still have deep pockets whether it passes or not. read more
State Bails out Inglewood Schools, but a Larger Teachable Moment Looms
Governor Jerry Brown signed $55-million emergency bailout legislation for the Inglewood Unified School District, approved on the last day of the legislative session, that effectively transfers control of the schools to the state. Inglewood Unified was expected to run out of cash three months into 2013.
It is not the only school district teetering on the brink. read more
Five Californians Make List of 50 Richest in Congress
The rich get richer, and the richest, apparently, still run for Congress.
California retained its stake in the Roll Call annual survey of the wealthiest members of Congress, placing four members from the House of Representatives and one from the Senate on the list of the Top 50. read more
$50 Million in Redevelopment Funds Misspent or Missing in City of Hercules
What happens when a city’s redevelopment agency has “almost no internal and accounting controls,” makes loans that are “just gifts of public funds,” and hands out credit cards used to pay for trips that “did not serve the public’s interest”?
The answer is it makes $50 million in expenditures between 2005 and 2010 that, in the words of State Controller John Chiang, are “absolutely incredible.” read more
Census Poverty Figures Are Bad for U.S., Worse for California
After a four-year decline, the U.S. poverty rate finally leveled off at 15% last year, according to the U.S. Census Bureau, but California’s suffering grew for the fifth year in a row, reaching its highest level since 1996. read more
Small Farms Ask Congress to End Farm Subsidies that Don’t Really Help Them
As the deeply divided House and Senate struggle to pass a five-year $500 billion farm bill before a September 30 deadline, 100 small farms in California have made a pitch to redirect subsidies created during the Great Depression back to the small farmers they were originally meant to help. read more
Cash-Strapped Community Colleges Edge Away from Federal Student Loans
As California community colleges—hammered by budget restraints—shrink their enrollments, reduce their class offerings and shift costs to students, a growing number of them are turning away from federal student loan programs. read more
Facebook Disappoints Public Pension Funds . . . Again
When Mark Zuckerberg announced in February that Facebook would go public and unveiled the company’s prospective board of directors, the California Public Employees’ Retirement System (CalPERS) registered a formal objection to the all-male lineup.
It wasn’t the last time CalPERS, and other California pension funds would be disappointed by Facebook. read more
Taxpayers Pay Millions a Month for Shuttered San Onofre
California taxpayers are shelling out $54 million a month for use of the disabled San Onofre nuclear power plant that—by law, according to the Public Utilities Commission’s (PUC) own Division of Ratepayer Advocates (DRA)—must be “used and useful” in order for owner Southern California Edison to get paid.
San Onofre is neither. read more
Fired Bell Official Joins Parade of Ex-Officials Suing the City
At first glance, it appeared that maybe Eric Eggena, a Bell city official who was fired amid a wide-ranging scandal, might be worth the $837,000 he was suing for because he apparently rarely, if ever, missed a day of work.
A big chunk of the money the former director of general services is seeking is for 329 days of sick leave and vacation time he never took, in addition to severance pay. read more
Historic Declines at California Community Colleges
Declining enrollment of historic proportions, accompanied by shrinking class offerings in California community colleges have whipsawed students and impeded their education, even as further cuts loom. read more
Senator Feinstein Questions Conventional Wisdom that California Deserves Its High Gas Prices
Gregg Laskoski at U.S. News and World Reports says that California’s high gas prices are “self-inflicted wounds” caused by too few refineries, too many state regulations and too much “green” orthodoxy, which blind it to the realities of the energy market.
On Tuesday, California Senator Dianne Feinstein cast aspersions upon the industry and that line of reasoning, and asked the Federal Trade Commission if gasoline prices weren’t being manipulated by corporate interests.
read more
Rich Californians Give Smaller Percentage of Income to Charities
Much of what organized religion does has little to do with charity and more to do with institutional self-preservation and even political activity. In 2008, for example, giving to the Mormon Church spiked while it was playing a crucial role in passing a California ballot measure banning gay marriage. read more