Posts Tagged: debt

CA pensions’ tax bite exceeds national average

The CalPERS' governing board during a meeting several years ago at the pension fund's headquarters. (Photo: CalPERS board)

by ED MENDEL posted 07.06.2016

California pension funds take a bigger share of tax revenue than the national state average, a research website shows. Why the growing costs are outpacing the norm is not completely clear. A prime suspect for some would be overly generous pensions, particularly what critics say is an “unsustainable” increase for police and firefighters widely adopted to match a big increase given the Highway Patrol by SB 400 in 1999.

Calpensions: An accounting board best known for requiring the calculation and reporting of the debt owed for retiree health care promised government workers, which often turned out to be shockingly large, is having another moment. This month the Governmental Accounting Standards Board applied new rules for reporting pension debt to retiree heath care.

Pensions have role in UC’s competitive edge

The campus of the University of California, Berkeley. Photo: LAgirl5252

by ED MENDEL posted 05.21.2015

Calpensions: In the competition for top talent, the University of California has been able to offer something increasingly rare among leading private universities: a generous lifetime pension. Now a much lower cap on pensions for new UC employees is part of an agreement to freeze UC resident tuition for two years announced last week by Gov. Brown and UC President Janet Napolitano.

A move to restore suspended driver’s licenses

California motorists in a traffic jam. (Photo: Shutterstock)

by JOHN HOWARD posted 04.09.2015

With one in six California drivers – about 4.2 million people — having suspended licenses because they can’t pay court fines, a lawmaker has proposed reducing the suspensions in non-violent cases and setting up an amnesty program to help motorists.

Stockton out of bankruptcy, but pension legacy uncertain

A seal of the city of Stockton, Calf. (Photo: Astudio, via Shutterstock)

by ED MENDEL posted 03.02.2015

On the day that Stockton emerged from bankruptcy last week, ending 32 months of debt protection, the final court argument was about the “cram down” imposed on the only creditor that did not cut a deal.

Retiree health care debt: Brown and his accounting loophole

A physician flanked by the California flag. (Illustration: Niyazz, via Shutterstock).

by DAVID CRANE posted 02.16.2015

OPINION: Imagine your friend built up $10,000 of debt from buying Christmas presents on credit. When he announces an intention to eliminate that debt, you ask how. He answers that, from now on, he’s going to purchase Christmas presents only with cash. Confused, you ask, “How do you pay off debt by not incurring more debt?” His response: “I don’t know, but my accountant says it works!” Believe it or not, that is the proposal California Governor Jerry Brown just made to eliminate $72 billion in state retiree health care debt.

For the new plan the state this fiscal year is paying $63.2 million (24.6 percent of pay) for the pensions of 1,407 judges (1,352 active). Judges Retirement System II is 95 percent funded with a debt or “unfunded liability” of $41.2 million.

Pensions key to Stockton bankruptcy

Waterfront, Stockton, Calif., at Weber Point. (Photo: Terrance Emerson)

by ED MENDEL posted 09.17.2014

Calpensions: During a hearing Oct. 1 on Stockton’s “plan of adjustment” to cut debt and emerge from bankruptcy, there may be a landmark ruling on whether CalPERS pension debt can be cut in bankruptcy.

A tough week at CalPERS

The CalPERS' governing board during a meeting several years ago at the pension fund's headquarters. (Photo: CalPERS board)

by ED MENDEL posted 08.25.2014

Calpensions: Last week was not a good one for CalPERS. Wednesday, Gov. Brown said CalPERS adopted regulations that undermine the anti-spiking provisions for new hires in his pension reform. Thursday, the state Fair Practices Political Commission rejected a proposed $1,000 fine for CalPERS board member Priya Mathur, suggesting a $4,000 fine for a serial offender who has repeatedly failed to file campaign funding reports.

For months, Gov. Brown has signaled his dislike for borrowing new money for school construction. This week, key lawmakers agreed, derailing a bond that had been aimed at the November ballot.