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		<title>Truth about CA demolishes hype about Jerry Brown</title>
		<link>https://calwatchdog.com/2013/04/29/truth-about-ca-demolishes-hype-about-jerry-brown/</link>
					<comments>https://calwatchdog.com/2013/04/29/truth-about-ca-demolishes-hype-about-jerry-brown/#comments</comments>
		
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		<pubDate>Mon, 29 Apr 2013 18:00:48 +0000</pubDate>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Inside Government]]></category>
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		<category><![CDATA[Ed Mendell]]></category>
		<category><![CDATA[Jerry Brown]]></category>
		<category><![CDATA[LAUSD]]></category>
		<category><![CDATA[Los Angeles Unified]]></category>
		<category><![CDATA[PERB]]></category>
		<category><![CDATA[retiree health benefits]]></category>
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		<category><![CDATA[Arnold Schwarzenegger]]></category>
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					<description><![CDATA[April 29, 2013 By Chris Reed California&#8217;s dual, incompatible narratives keep rolling along. On the one hand, we&#8217;re supposed to believe the passage of Proposition 30 and Gov. Jerry Brown&#8217;s]]></description>
										<content:encoded><![CDATA[<p><img fetchpriority="high" decoding="async" class="alignright size-full wp-image-37250" alt="jerry.brown.people" src="http://www.calwatchdog.com/wp-content/uploads/2013/01/jerry.brown_.people.jpg" width="200" height="262" align="right" hspace="20" />April 29, 2013</p>
<p>By Chris Reed</p>
<p>California&#8217;s dual, incompatible narratives keep rolling along.</p>
<p>On the one hand, we&#8217;re supposed to believe the passage of Proposition 30 and Gov. Jerry Brown&#8217;s <a href="http://www.mercurynews.com/california-budget/ci_22405624/california-gov-jerry-brown-defies-critics-has-all" target="_blank" rel="noopener">able stewardship</a> have lifted the Golden State <a href="http://www.realclearpolicy.com/2013/03/05/jerry_brown_has_turned_california_around_10078.html" target="_blank" rel="noopener">out of the doldrums</a>.</p>
<p>On the other hand, there are the actual hard facts.</p>
<p>California&#8217;s longest sustained stretch of high unemployment since the Depression continues. We&#8217;ve been over than 8 percent for <a href="https://www.google.com/publicdata/explore?ds=z1ebjpgk2654c1_&amp;met_y=unemployment_rate&amp;idim=state:ST060000&amp;fdim_y=seasonality:S&amp;dl=en&amp;hl=en&amp;q=california%20unemployment%20chart" target="_blank" rel="noopener">four years in a row</a>. The most recent figures have California at 9.4 percent, <a href="http://www.bls.gov/web/laus/laumstrk.htm" target="_blank" rel="noopener">among the nation&#8217;s worst</a>.</p>
<p>And the state&#8217;s finances that Jerry supposedly repaired remain a vast, intractable mess, as two headlines this morning remind us.</p>
<h3>Oh, yeah, that budget crisis is no more</h3>
<p>First there was this from the <a href="http://www.latimes.com/news/local/la-me-budget-reserve-20130428,0,5709714.story?utm_source=feedly" target="_blank" rel="noopener">L.A. Times</a>:</p>
<p style="padding-left: 30px;"><em>&#8220;SACRAMENTO — Arnold Schwarzenegger persuaded voters nine years ago that if they let him borrow money to cover the budget deficit, California&#8217;s financial woes would end for good. A key part of his plan was a new rainy-day fund to insulate the state from further crisis.</em></p>
<p style="padding-left: 30px;"><em>&#8220;&#8216;It will be a whole new ball game,&#8217; Schwarzenegger said. &#8216;Trust me.&#8217;</em></p>
<p style="padding-left: 30px;"><em>&#8220;But California was roiled by financial turmoil for years afterward, and today the reserve is empty. With more than $5 billion in bonds left to repay, Gov. <a id="PEPLT007547" title="Jerry Brown" href="http://www.latimes.com/topic/politics/government/jerry-brown-PEPLT007547.topic" target="_blank" rel="noopener">Jerry Brown</a> apparently plans to leave it that way.</em></p>
<p style="padding-left: 30px;"><em>&#8220;The reserve was created without a firm requirement to fill it, and Brown&#8217;s proposed budget contains no allocation for the fund. Without a financial cushion, some experts say, California is more vulnerable than many other states to drops in revenue that can lead to social-services cuts or pink slips for teachers.&#8221;</em></p>
<h3>Oh, yeah, that state pension fix ended the benefits crisis</h3>
<p>Then there was this reminder from Ed Mendel that the state government has <a href="http://calpensions.com/2013/04/29/prefunding-retiree-health-care-is-this-the-year/" target="_blank" rel="noopener">a retirement benefits crisis</a>, not just a pension problem, and on a key front the state can&#8217;t do anything about it because unions won&#8217;t let them &#8212; meaning the problem will keep getting worse and worse:</p>
<p style="padding-left: 30px;"><em>&#8220;With pensions presumably shored up by Gov. Brown’s reform and a CalPERS rate hike, will the problem-solving trend spread to what is, by some measures, an even bigger retirement debt: health care promised state workers?</em></p>
<p style="padding-left: 30px;"><em>&#8220;It was no surprise last week when a Democratic-controlled Senate committee rejected a Republican’s proposal to begin setting aside money to pay for retiree health care promised new state workers, putting a small dent in a $64 billion 30-year debt.</em></p>
<p style="padding-left: 30px;"><em>&#8220;Labor lobbyists told the committee they do not oppose &#8216;prefunding&#8217; retiree health care that is now &#8216;pay as you go.&#8217; This year $1.8 billion is budgeted for annual costs with no money added to invest and yield earnings to reduce long-term costs.</em></p>
<p style="padding-left: 30px;"><em>&#8220;The labor unions said the funding of retiree health care is a pay issue, possibly affecting the total amount available for salaries, and therefore should be addressed through collective bargaining.&#8221;</em></p>
<p>You follow? The unions won&#8217;t let the state act responsibly in dealing with a huge long-term problem involving benefits going to union workers, because anything involving money affects salaries, which must be collectively bargained. This is consistent with the insane view of Jerry Brown&#8217;s appointees to the Public Employment Relations Board, which has argued that collective bargaining requirements mean that Los Angeles Unified can&#8217;t enforce a 1971 state law mandating that student performance be part of teacher evaluations. Collective bargaining: It&#8217;s California&#8217;s <a href="http://www.calwatchdog.com/2012/08/21/meet-the-bureaucrats-who-say-collective-bargaining-rights-trump-existing-state-law/" target="_blank">new Constitution</a>!</p>
<h3>Governor&#8217;s greatest triumph: Selling a fake narrative</h3>
<p>Jerry Brown hasn&#8217;t fixed anything. He&#8217;s been better than Arnold at getting Dems in the Legislature to acknowledge reality, which is a triumph. But the state government remains a poorly run mess. And the fundamental arc of the California economy remains rotten for poor people and much of the middle class.</p>
<p>The governor&#8217;s greatest triumph? It&#8217;s somehow persuading much of the media that this factually driven narrative of incompetence and despair is no longer true.</p>
<p>&nbsp;</p>
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