CalWatchdog Morning Read – April 21, 2016

Economic outlook grim, reality not as bad. Plus minimum wage, pensions and taxes.

Good morning.

A new report on the economic forecasts and past performances of the states casts a grim view of California’s outlook, but shows past performance has been more middle-of-the-road.

The study, by the right-leaning American Legislative Exchange Council, compiled 15 measures, like various tax rates, minimum wage and right-to-work status, to determine that California ranked 46 out of 50 in terms of economic outlook.

But the Golden State ranked 31st in economic performance, which was determined by cumulative growth (or loss) in GDP, non-farm payroll employment and absolute domestic migration. The latter dragged down the overall performance, as more than 1.2 million Americans left the state over a 10-year period — the second largest cumulative loss.

CalWatchdog has more.

In other news:

– Many in the state are already feeling the shock wave from the increase in the minimum wage, as businesses, labor advocates and political analysts have all begun to shift strategies and tactics as a result, reports CalWatchdog.

– The Voice of San Diego looks at how the increased minimum wage will affect nonprofits, which are put in an awkward position between supporting increased pay for low-wage workers and being forced to make cuts or pull in more cash.

– A solid majority of voters favor taxing the rich to fund health care and education, according to The San Jose Mercury News. Sixty-two percent of respondents to a recent Public Policy Institute of California poll suggested they favor a 12-year extension of Prop. 30, which increases income tax on earners of $250,000 or more to help pay for education and health care. Proponents are pushing to get the extension on the November ballot.

– More on the Prop. 30 extension here and here.

– CalPERS, the state’s pension fund for public employees, approved another round of rate increases, according to The Sacramento Bee. “The state’s contribution will increase by an estimated $602 million, to $5.4 billion a year. School districts will be charged an additional $342 million, to a total of nearly $1.7 billion a year,” The Bee writes.

Read more here:


– In at 9. Several hearings.


– In at 9. Lots of budget talk.

Gov. Brown:

– No public events scheduled, but according to the Gov. Brown’s office, he’s “left the state.” Brown is scheduled to attend a climate change event tomorrow in New York at the United Nations Headquarters.

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