Where is the Money Going?
Pot Shop Closure Will Hit Oakland in the Pocketbook
Customers of Harborside Health Center in Oakland weren’t the only people distressed by the federal government’s announcement last week that it intends to shut down the nation’s largest medical marijuana dispensary.
City officials were lamenting the possible loss of more than a million dollars in annual sales tax generated by the pot shop. read more
Parks Employees Take Unauthorized Vacation Buyouts Even as Closures Loom
While budget shortfalls threaten dozens of state parks with closure, 56 officials in the Department of Parks and Recreation have claimed unauthorized vacation buyouts worth at least $271,264, according to the Sacramento Bee. read more
Big Paydays for Failed, Departing Corporate Execs Give a Boost to State’s Growing Income Inequality
As California’s income inequality becomes more pronounced, stories proliferate about giant paydays for top corporate executives pressured to leave their posts.
A study by the California Budget Project shows that between 1987 and 2009, the income pie in the state expanded, but the wealthy received, by far, the biggest slices. read more
California Among States Getting Millions for Alleged Wells Fargo Bias
Assistant Attorney General Thomas E. Perez called it “a simple story” of discrimination.
And now that it has been told, Wells Fargo has agreed to pay $175 million to settle a complaint by the U.S. Department of Justice that the bank ripped off African Americans and Latinos by steering them into more expensive subprime mortgages at the height of the housing boom. The settlement awaits final approval by a federal judge. read more
Mammoth Moonlight Fire Claim Settled as Governor Pushes to Limit Such Suits
After suing a timber company for $700 million, seven times the previous largest settlement for a California wildfire, the U.S. government reached agreement last week on ending a raucous four-year legal battle over who caused the Moonlight Fire that ravaged 46,000 acres of national forest in Northern California. read more
California Political Lesson for Obama: It’s All About the Money
In recent years, California spent more money on political campaigns than any other state and the winner almost always had more money—usually twice as much money. And the incumbent always won. read more
Beleaguered City of Vernon Blasts State Auditor “Rehash”
Officials in the tiny industrial city of Vernon—under fire for pension irregularities, accused of rigged elections, slammed by public corruption charges and the subject of a disincorporation campaign—lashed out at a June report by the highly respected California State Auditor for its “lack of objectivity” and misrepresentation of facts. read more
War on Crime Will Proceed Without Military Weapons . . . for Now
The Pentagon is temporarily suspending part of a popular program that allows police departments to buy military weapons after news reports of million-dollar California buying sprees that included a tank. The military wants to conduct an inventory of where the material went and what happened to it once it got there. read more
Instead of Going Bankrupt, Insurer Says, Stockton Should be Going after Labor and Retirees
Leading municipal bond insurer Assured Guaranty, which insures three Stockton bonds worth $161 million, says on its website that the beleaguered city should have demanded austerity in the form of “labor and retiree concessions,” pension reform, “curtailment of non-essential City services” and the sale of city property before filing for bankruptcy, implying a possible challenge to the move. read more
Seniors Sue Fraud Compensation Fund, Saying It Has Made Them Victims a Second Time
The Secretary of State’s website for the Victims of Corporate Fraud Compensation Fund prominently warns of scams being perpetrated on unsuspecting Californians who think they will be getting a cash award.
Some critics think it’s Secretary of State Debra Bowen who is doing the scamming. read more
Kids Following Tortuous Path to Managed Care Blazed by Poor Seniors and Disabled
California is planning to save oodles of money by moving 880,000 children into a Medi-Cal managed care program one year after transitioning 330,000 low-income seniors and disabled patients into one of their own. Advocates for kids fear the worst, and based on experiences of the older people those fears are justified. read more
Rich Private School Benefits from $40 Million in Tax-Exempt Municipal Bonds
What do Chevron and The Buckley School, a Southern California private, upscale K-12 complex nestled on 18 acres in the Santa Monica Mountains, have in common? They both benefit from millions of dollars in tax-exempt bonds issued by the nonprofit California Municipal Finance Authority (CMFA) and, in return, they “provide a public benefit.” read more
Oakland Wants Out of Deal Paying Goldman Sachs Millions for Old Bonds
The city of Oakland is paying Goldman Sachs around $4 million a year as an insurance hedge on bonds that no longer exist, a deal that stretches to 2021 and the city wants out of now. The company would be happy to oblige, as long as it gets the $15 million termination fee agreed to in 1997 when Oakland signed the contract. read more
Nearly 700,000 Face Foreclosure as Banks Step Up Resistance to Legislative Relief
While bankers, the Chamber of Commerce and the securities industry take their last shot at derailing state legislation to provide foreclosure-prevention relief to beleaguered homeowners, a new report shows nearly 700,000 Californians are at least 30 days delinquent on their mortgage payments. read more
Workers’ Compensation Insurers Lose Billions, but Almost Half of Payout Isn’t for Benefits
California’s miserable economy took its toll on insurers paying workers’ compensation claims in 2011, with losses totaling $2.3 billion. But almost 40% of their costs were administrative. read more
Saving Money by Closing Summer Schools Costs Kids’ Meals
Budget cuts have forced many California school districts to eliminate, and as a result, 2 million low-income children (84%) who benefited from federally-funded school meals during the regular academic year don’t get them. read more