California in extremis

George Rebane

The giant public sector workers retirement fund Calpers is underfunded by at least $500,000,000,000 – yes, that’s a half trillion dollars.  This is from a Stanford University study commissioned by our governor (reported here)  RR readers should not be surprised.  In Nevada County, SESF (sesfoundation.org) reported on the state’s and county’s unfunded liabilities problem over two years ago to great derision from our local progressives.  No matter where you live, I suspect that your neck of the woods experienced the same response.

My personal estimate is 1) that Stanford’s number is low, and because the number is now so large, 2) we’re not going to pay it.  But the road from here to that reality will cause untold damage to the state and its local jurisdictions.

With the Great Recession and this sword hanging over our heads, the Sacramento idiots, both elected and appointed, are charging full speed ahead on AB32 implementation.  AB32 is California’s homemade suicide bomb to demonstrate to the world our leadership in fighting AGW (aka man-made global warming).  The regulatory and energy cost burdens this will put on all Californians guarantees that we’re going to tell retired public workers to go suck eggs, if they can still afford them.

That AB32 is a mega job killer is now beyond doubt.  Look for the double dummies in Sacramento to pass a law prohibiting companies from declaring publicly their dire straits, similar to what Washington is attempting to do on the national scale as corporations now must give lie to the propagandized cost savings that Obamacare is supposed to deliver.  The message to American businesses is simple, ‘If you see that your reality is different from the lies we had to tell to get this passed, just shut the f__k up!’

AB32’s stench is bad enough to draw national attention (‘Another California Dream’), and some other states are beginning to pull out of their headlong dashes into locally grown versions of cap n’ tax.  Here in California, our own Assemblyman Dan Logue is leading the good fight to have AB32 implementation “postponed … until the economy rebounds.”  That’s how bad it has become, this horrendous law has such support that even Logue can see no opportunity to have it repealed.  All we can hope is an attempt to delay the dagger thrust to California’s economic heart.  Read Dan’s Union column for details.

Meanwhile on the world scale some are already celebrating the demise of the AGW ‘crisis’, having taken great heart that Climategate, more refuting science, and the united voices of opposing scientists are driving a stake through the heart of this global menace.  The 4th International Conference on Climate Change will be held 16-18 May 2010 in Chicago featuring an array of luminaries from science, industry, and public policy who will again refute the UN’s IPCC findings (more here).

WSJ columnist Bret Stephens (here) is already looking forward to the next manufactured crisis and announces a contest for its discovery.  The winning crisis “must require taxes, regulation, and other changes to civilization as we know it.”

Samuel Clemens, upon hearing of a newspaper notice of his recent death, was quoted “The reports of my demise have been greatly exaggerated.”  I fear the same for AGW and its Medusa head that sprouts many poisonous snakes.  My own ongoing examination of the evidence (ably reported by Steve McIntyre, Anthony Watts, and our local Russ Steele) and its political response is that AGW's remaining supporters are still legion, and divide themselves into two major groups – the butt stupid (‘ignorant’ will no longer serve) and the perfidious.  The former is the compliant chorus that supports the nation changing goals and work of the latter.  AGW is merely the crisis du jour, and its scientific arguments incidental.  The teachers’ unions have delivered.

Comments

[Steve Enos]

So far AB32 has support:

San Francisco, CA Apr. 6, 2010 – A new statewide poll conducted for Next 10 by Field Research Corporation finds that a majority of California voters support both the state's landmark 2006 law that requires reducing greenhouse gas emissions (58%), and imposing a fee on companies that emit these gases if most of the money collected is returned back to state residents (64%).

More voters think state energy policy encouraging new cleaner energy technologies will add jobs (36%) than take jobs away (14%). Another 41% say such policies will have no effect on jobs. In addition, a large majority (69%) agrees that "California can reduce greenhouse gases that contribute to global warming and expand jobs and economic prosperity at the same time," with 44% agreeing strongly. The size of the majority in agreement, however, is down somewhat from earlier Next 10/Field Research surveys conducted over the past three years -- 74% in 2008 and 83% in 2007.

"Even in these hard economic times, most California voters remain bullish about the prospects of green energy technologies having a beneficial effect on the state's economy," said Mark DiCamillo, Senior Vice President of Field Research Corporation.

"The financial crisis has hit hard in California, so it is not surprising to see that the current recession is causing somewhat greater uncertainty," said F. Noel Perry, founder of Next 10. "Yet this research shows that large majorities of voters continue to believe that clean energy policies don't take jobs away, and that expanding jobs, growing the economy and reducing global warming emissions are mutually compatible goals."

The survey also finds that two in three voters (64%) would favor imposing a fee on companies that emit greenhouse gases if most of the money collected is rebated back to state residents, with 41% strongly in favor of this approach.

[Russ]

Steve,

The Support for the California Jobs Initiative is growing. The supporting organizations grew from 90 last Friday to 107 today. Here are just a list of the organizations. One thing that impressed me was the broad reach across multiple ethnic groups and business sectors. Regardless of the polls, there is broad and growing support for California Jobs Initiative ( I have only listed the Organizations, your can go to this URL to find the politicians and the business that support the CJI: http://www.jobs2010ca.com/learn-more/coalition-list/)

Organizations
California Small Business Association
California Manufacturers & Technology Association
California Hispanic Chambers of Commerce
California Small Business Alliance
Hispanic Chamber of Commerce, Silicon Valley
Howard Jarvis Taxpayers Association
Silicon Valley Black Chamber of Commerce
Regional Hispanic Chamber of Commerce
National Tax Limitation Committee
Nisei Farmers League
California Taxpayer Protection Committee
Carson Black Chamber of Commerce
American GI Forum of California
California Citrus Mutual
California Republican Party
California Coalition of Filipino American Chambers
California League of Food Processors
Lumber Association of California and Nevada
Printing Industries of California
Southern California Rock Products Association
Santa Maria Valley Contractors Association
California Independent Oil Marketers Association (CIOMA)
California Automotive Wholesalers Association 
California Cotton Ginners and Growers Associations
Chemical Industry Council of California
Filipino Progress
Los Angeles Metropolitan Hispanic Chamber of Commerce
Los Angeles Regional Homeless Restoration Advisory Coalition
Independent Oil Producers Agency
Alliance of Contra Costa Taxpayers
In His Power Christian Center
California Dump Truck Owners Association
Kern County Black Chamber of Commerce
Western Agricultural Processors Association
Santa Maria Valley Chamber of Commerce
Sacramento County Taxpayers League
Kern County Black Chamber of Commerce,
Development Foundation
American GI Forum Women of California
Kern County Taxpayers Association
San Diego Tax Fighters
Stockton/San Joaquin County Filipino Chamber of Commerce
California Dairy Campaign
National Taxpayers Union
Fontana Hispanic Chamber of Commerce
California Poultry Federation 

[George Rebane]

Hard to contend with your comment Steve. I do think you may understand that that was the point of the my post, it's too early to celebrate any rollback on AB32. As I concluded, the teachers' unions have delivered.

[Steve Enos]

Calpers, what a mess! Add the unfunded retirement needs and you have a massive train wreck on the way.

What about all the pre-retirement wage padding that toke place and the retire, but work part time double dipping too? In the so claimed conservative bastion Place County we see this has been rampent. There are also examples here in Nevada County.

What about Tea Party "members" that are retired government workers? I'm betting that the TP has a number of retired public sector folks. Folks that wave their beliefs and then go cash that government retirement check each month. The there are those medicare benefits and social security checks some TP folks use.

Calpers... a total and complete mess.

[Mikey McD]

Steve, it is the normal first response is to "attack" the employees who "double dip" or "spike" or receive what anyone in the private sector would call a rich retirement paid by taxes. However, while their is some hypocrisy for citizens enjoying such rewards and moaning about the size of government, hypocrisy or the manipulative public employee actions are not illegal. I think it is natural for a public "servant" to game the system to receive every legal cent. We need to change what is legal.

Jeff Ackerman nailed it- public employees are (as planned) the new aristocracy.

[Steve Enos]

What about Tea Party members that are retired government workers? I'm betting that the TP has a number of retired public sector folks. Folks that rant about government and government employees living large, chanting their "beliefs" and then going to cash that government retirement check each month.

EXIT QUESTION: So does the TP have retired government workers as members?

[Mikey McD]

YES, GUARANTEED. This is hypocrisy via self preservation. A retired government worker knows that future paychecks require more fiscal responsibility- now that they have gotten their guarantees in writing. Retired government employees know that the benefits bestowed upon them are not sustainable and to keep increasing the spending threatens their benefits.

Kind of like the NH2020 folk wishing to pull up the draw bridge once they move into town.

[Scott Obermuller]

Answer to Steve - I'm sure it does. But that line of reasoning shows how little you understand about the TP. Folks who worked for a lifetime and had to pay into a defined benefit retirement system and SS were promised a certain retirement package. The govt. took the money and either squandered it(SS) or mismanaged it (CalPers) and now you would blame the workers? CalPers used to be a very well run outfit that was fully funded for decades. The rot set in about the same time the unions got control of the state workers. What a coincidence! There are a lot of conservative state workers that are pretty pissed off at the unions, the legislature and the governor. The voters have the final say and they voted in a bunch of financial morons. Most state workers don't get anything like the high retirement packages that are examples of the few that can inflate their salaries in the last year and bail with 6 figure retirements. Those govt retirement checks are the workers' money that was earned. The TP is upset about the tax money that is poured out to people and groups that never worked a day for the billions they now get as an entitlement.