Paul Cook's Blog

The Cautionary Tale of Greece

by JPCstaff 18. August 2010 20:46

Greece is in the midst of a complete economic meltdown, the likes of which the US has not seen since the Great Depression. While we should use caution in drawing parallels between Greece and California, some of the same symptoms are present. If anything, we should look to Greece's suffering as a wake-up call. The similarities in the run-up to Greece's economic collapse and California's current condition are as follow:

  1. Out-of-control government spending.
  2. Overly generous public employee wages, benefits, and retirements.
  3. A high cost to do business, caused by government bureaucracy and certain labor unions, which drives employers and, most importantly, jobs to other places.
  4. In terms of the government budget, Greece was guilty of "squandered tax money and falsified statistics."
  5. Unemployment rate: California is at 12.2; Greece is expected to hit 12.1 this year.

Does any of this sound familiar? It gets worse in this cautionary tale. While Grecian government has made the correct decision to reign in spending and stop the give-aways to public employees, it also made the decision to raise taxes in the middle of an economic meltdown, just as Democrats in Sacramento have proposed. With less money in the hands of its people, particularly for the purposes of consumer spending, the Grecian economy continues to spiral downward. Take heed.

Read on: http://is.gd/eo2PX

Tags: , ,

San Francisco, the Ghost of California Future?

by JPCstaff 16. December 2009 21:07

The SF Weekly, an alternative newspaper in San Francisco – and self-described politically independent publication, has labeled its hometown the “The Worst-Run Big City in the US.” And it might not be hyperbole. In painstaking detail, the articles' authors lay out case against the city by the Bay.

Here are a few illuminating statements from the article:

"This year's city budget is an astonishing $6.6 billion — more than twice the budget for the entire state of Idaho — for roughly 800,000 residents. Yet despite that stratospheric amount, San Francisco can't point to progress on many of the social issues it spends liberally to tackle — and no one is made to answer when the city comes up short."

"This is a union town. You can't reform the city charter without winning an election; winning an election requires union support; and unions — almost by definition — don't want major reform. It would be a paradox — but that would contravene a number of union bylaws."

"Many cities contract with nonprofits because it's cheaper than using city workers. Government is now paying the tab for services that used to be undertaken by families, churches — or, frankly, no one. But a 2009 University of San Francisco study notes that this city is to nonprofits what New York is to big musicals: "Per capita expenditures by operating nonprofits in San Francisco are almost double that of the rest of the Bay Area, and more than twice that found in Los Angeles or [the whole of] California."

"Research by professor Bill Watkins of California Lutheran University over the past decade reveals that San Francisco is shedding its middle-class population at double the state rate
[JPC note: which itself is shedding its middle class].  The city, however, is not losing low-income people at nearly the state's pace — and is gaining wealthy residents at far more than California's overall rate. In short, we are replacing our middle class with a rich elite and a burgeoning underclass."

California unionistas of old were the alleged defenders of the middle class. Members of public employee unions in San Francisco, which dominate San Francisco government and politics, are not middle class by most measures. Their salaries are too high. Therefore, those who support these unions do not, by proxy, support the middle class as they might claim.

Social welfare programs, even with good intentions, should not persist without demonstrating progress over time in reducing the problems. San Francisco, like California, has spent more and more on social welfare programs over the years. With no evidence of progress, these services, paid through San Francisco’s high taxes on citizens and business, drive businesses out, which reduces availability of jobs for the middle and working classes, and increases the number of people taking advantage of these services.

Any undergraduate political science student can tell you that a healthy middle class is necessary for a democracy. Modern history, post-Industrial Revolution, demonstrates that the absence of middle class usually leads to social upheaval, often through very undemocratic means.

San Francisco is a public employee union town, dominated from top to bottom by these unions, which have helped to destroy any hope of fiscal solvency without new revenues (read: taxes). San Francisco has siphoned money from transportation (specifically their "Muni" system), despite voter directive on how such money should be spent. San Francisco spends more on social welfare programs than any other city and yet cannot produce and, largely, does not aim to produce evidence of progress. San Francisco is dominated by one party, though there is a Green Party element, and more so by a single ideology.

Does any of this sound familiar? California is perilously close to one-party domination in the Legislature and has many of the same symptoms: union domination, ineffective yet expanding social programs, and a budget gone awry. Moreover, by many accounts, a Democrat candidate is the odds-on winner for Governor. If those who demand performance-based budgeting and fiscal sanity do not win out, San Francisco might represent the state’s future.

SF Weekly article: http://is.gd/5qyvw

Tags: ,

Our latest deficit, same as the last one

by JPCstaff 10. November 2009 21:15

In the least surprising state news of the past decade, Governor Arnold Schwarzenegger announced that California will face a deficit of $12.4 billion to $14.4 billion when he releases his budget plan in January 2010.  In Capitol-speak, this means that by July (or August or September) when Legislators finally mosey down to the chambers to vote on the next terrible budget, the deficit will probably be in the $15 billion + range.

How did this all happen?  As Paul Cook has mentioned on several occasions over the past year, the Governor’s office (in particular the Department of Finance) never ceases to issue rosy tax revenue projections during the previous budget negotiations.  Lo and behold, the state is “$1 billion behind in tax revenues through the first three months of the 2009-10 fiscal year.”  

We know, we know … how could any one have guessed that the economy wouldn’t have recovered by now!?  Hell, Obama only dumped the fortunes of several generations into the economy, in the form “bailouts” and “stimulus.”  Well, anyone living in reality could have guessed it.

Until the Capitol embraces the truly terrible California budget structural and is brave enough to tell the public the truth about revenues, we’ll keep fumbling along, following the same pattern: deficit, gridlock, rosy projections for the next year, repeat.

Read more about it here:

http://is.gd/4RY6g

Tags: , , ,

Press Enterprise compares public and private employees in California

by JPCstaff 8. September 2009 10:02
Jim Miller, State Capitol reporter for the Press Enterprise, has an even-handed write-up on the condition of public employees in California. Much has been made of the three furlough days Governor Schwarzenegger has imposed on state workers, resulting in a 14% pay cut.  However, these folks still have a job.  Miller points out the following:

"The number of government employees in California fell from 2.52 million in July 2008 to 2.5 million in July 2009, a 0.9 percent drop, according to the California Economic Development Department.

By comparison, all non-agricultural salary employment fell 5.1 percent during that time. The state's unemployment rate was 11.9 percent, 13.9 percent in San Bernardino County and 14.7 percent in Riverside County.
"

Public employee unions have fought the furloughs, but have offered no other budgetary solution aside from raising taxes. Perhaps they should embrace reality and accede to necessary layoffs, such as the private sector has endured. (We all know the state could live without a few bureaucratic functions.) Compared to layoffs, furloughs simply spread the pain to all employees. Moreover, they retain the costs for the state. There is still overhead to pay in the luxurious public employee benefits and the pay cut is temporary, meaning better budget times will result in an immediate 14% increase in payroll expenses. For the unions, it means all members retain their jobs; hence, these employees stay in the union (providing greater strength in numbers) and the unions continue to collect union dues, filling their coffers.

People who advocate more spending, bigger government jobs, and higher taxes can’t see the forest for the trees. Cuts are painful. But the quicker government shrinks, the quicker the private sector will respond, which will create jobs for everyone – current public employees included.

Tags: , , ,

Governor, what big lies you have

by JPCstaff 1. September 2009 17:09

Everyone recognizes the devastating effect of fires and the incredible effort by firefighters who risk their lives to save our families, homes, pets, and valuables. We have new wild fires ravaging the states, so the Governor took this opportunity to … (drum roll please) … push for new taxes. Where does this guy stand on taxes?

To be clear, Paul Cook has always been supportive of firefighters and efforts to improve fire response. In an Oak Glen press conference, the Governor made these three assertions (JPCblog grading in italics):

  1. The budget the Legislature sent to him was not balanced. Correct!
  2. He made the budget balanced by making additional cuts. These cuts provided the money to fight these fires. Partial credit. The first assertion is true; we need more evidence on the second part.
  3. Legislature should pass the Emergency Response Initiative, which would make $100 million available to fight fires throughout California. Well …
Problem is, the Emergency Response Initiative is a tax on property owners in California. Just a few weeks ago, the Governor stated that he would sign no budget that contained tax increases.

So which is it Governor? Taxes or no taxes?

Unintentionally, he also proves the point of fiscal conservatives like Paul Cook. If you send a good budget to the Governor, money will be available to fight these devastating fires. No new taxes needed.

Tags: ,

Give us this day, our daily WASTE - California government adds 3600 positions

by JPCstaff 5. August 2009 07:40

Were you one of 759,000 people laid off this past fiscal year in the private sector? Are you a member of a public employees union angry at the world over furloughs? Know that while you were getting the proverbial shaft, California government added 3,600 employees over a 12-month period ending in June. The Mercury News reports on it here:

http://www.mercurynews.com/california/ci_12989171

The State Department of Personnel claims that many jobs were added in the University of California and California State University systems, which is interesting because the UC and CSU have been busy cutting enrollment, raising tuition, and handing out furloughs like furniture-store flyers. Hey, it takes staff to eliminate educational opportunities, right? Right?

Why aren't the public employee unions up in arms over these hires? They should spend less time staging phony protests at Cook's office and more time keeping the size of government down, which paradoxically, would help the existing membership.

If you really need a job, know that "Gov. Arnold Schwarzenegger has requested that the EDD [California Employment Development Department] hire about 1,500 people in the coming year to handle increased unemployment claims." As one of these 1,500 employees, you too can be the costly human face of government, where a computerized system would suffice. You can also direct people to nonexistent job listings, reminding them that having one of the highest tax burdens in the nation guarantees our state will be among the slowest to recover from the recession.

Tags: , ,

What are these two people celebrating?

by JPCstaff 22. July 2009 08:21


For those unfamiliar, the AP caption for this picture is as follows:

California State Senate President Pro Tem Darrell Steinberg and Assembly Speaker Karen Bass, both Democrats, celebrate in Steinberg's office Monday after reaching a budget agreement with Gov. Arnold Schwarzenegger and Republican leaders.

But that can’t be correct.  This is a terrible budget for everyone.  Democrats didn’t get their beloved tax increases.  Republicans won’t see much elimination of government (the “cuts” in the budget are mostly “one-time budget reductions” for various state entities).

As your loyal servant, JPC Blog must speculate about what’s going on in this picture.  Here are the top 5 guesses:

  1. Dancing to “Celebration” by Kool and the Gang. Arnold has an extensive Kool and the Gang 8-track collection and insists upon a morning workout.
  2. Stretching after waking from a half-decade-long nap, during which, California circled the proverbial toilet.
  3. Successful test of new Budget Deodorant, formulated to mask the stink and sweat of budgetary gymnastics.
  4. Prisoners pre-release party.
  5. Checked the ticker … California ’s economy is up! No, wait, that’s just the unemployment rate.

Feel free to add your own. 

Tags: ,

Democrats | General

Come to California! Experience 18 years on Welfare!

by JPCstaff 19. July 2009 11:00

The title isn’t hyperbole.  With California’s lenient CalWORKs program, you can remain on welfare for up to 18 years.  The Sacramento Bee has a nice article on our expansive system.  But don’t take our word for it:

"Technically, you could be on (welfare) aid for 18 years," said John Wagner, director of the state's Department of Social Services [DSS]. "With our current system, an adult could either work 130 hours or face $139 in sanctions. That's very little incentive to participate in activities, including work, that lead to a family's self-sufficiency."

Yes, that’s the director of DSS speaking. When even Mr. Wagner points out the ridiculousness of a system his department administers, you know something is amiss.  Work 130 hours or pay a fine of roughly one dollar per hour for not working? Hmm … Tough choice for the unmotivated.  Perhaps they should change the slogan from “Welfare to Work” to “Welfare not Work.”

Frank Mecca, executive director of the County Welfare Directors of California (CWDC), claims CalWORKs has been "one of the most successful programs the state has had in the past decade."  Now, Frank is a respectable guy.  In fact, his organization supports Paul Cook’s landmark Native American Adoption bill.  But he’s ignoring the numbers (not to mention California’s budget problem).  And asking the CWDC if welfare works is a bit like asking a chef if the food is good. 

How many of you live in communities where you struggle to make ends meet, but some welfare recipients drive better cars, have better clothes, and, much to their delight, have a hell of a lot more free time than you?

Admittedly, California’s system allows the children to stay on welfare, even if the parent violates the rules of CalWORKs (which, eventually, in a roundabout way, asks you very nicely to please find a job).  Theoretically, that’s a good thing (though we’re one of only six states to offer such a generous benefit).  On paper, it means that while California has just 12 percent of the nation’s population, it has 30 percent of the welfare recipients.  At home, it means that the state needs more of your tax dollars.  And when it gets those dollars, they might be handed to someone well into his or her second decade on welfare.  Meanwhile, your roads crumble.

Drink up the socialism folks.  Is it any wonder California is often the slowest to recover from recession?

-JPCstaff

Tags: ,

CSEA protests at Cook's District Office, lies to everyone

by JPCstaff 18. July 2009 14:10

Last week, the CSEA (CA State Employees Association) staged a protest at Assemblyman Cook's District Office in Yucaipa.  Key word "staged."  There's a video of their efforts on youtube, but we won't further their nonsense by linking it.

One of the CSEA's crack organizers claims, on video, that Cook was "hiding" from protestors. Hey, what a great soundbyte! Cook hides from protestors! Except it was Wednesday July 8. Even Cook's grandkids could probably tell you that he's in the State Capitol from Monday through Thursday on most weeks (including the week of the protest). Perhaps the CSEA should check with their expert legislative committee, or visit the official Assembly web page during non-work hours, to figure out the Assembly's schedule. More likely, the head mouthpiece was lying to rile up the crowd. (And according to District Office staffers, the CSEA knew Cook wasn't there.)

The protestors also shouted "Teach 'em or jail 'em!" Does anyone even know what that means? Jail the kids? For the record, as a professor at public universities, Cook was often frustrated by budget cuts or the occasional student, but he never wanted to jail his pupils. Call him a bleeding heart.

Cook was up in Sacramento doing his job that Wednesday, such as working on his legislation to help improve IHSS for seniors and disabled persons. All of this begs the question, shouldn't these protestors be at work? If the CSEA members have all of this time to spare for protests and money to spend on mailers going out to 40,000 of Cook's constituents, maybe the budget cuts aren't as harmful as they purport.

Everyone has a right to protest, including the CSEA. But let's be accurate and avoid lies when you're assailing someone, all in the name of your union.

- JPCstaff

Tags: , ,