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	<title>Visalia &#8211; CalWatchdog.com</title>
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		<title>Pension follies: New Jersey adopts insane San Diego approach</title>
		<link>https://calwatchdog.com/2014/04/01/pension-follies-new-jersey-adopts-insane-san-diego-approach/</link>
					<comments>https://calwatchdog.com/2014/04/01/pension-follies-new-jersey-adopts-insane-san-diego-approach/#comments</comments>
		
		<dc:creator><![CDATA[Chris Reed]]></dc:creator>
		<pubDate>Tue, 01 Apr 2014 13:15:20 +0000</pubDate>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Inside Government]]></category>
		<category><![CDATA[Pension Reform]]></category>
		<category><![CDATA[Waste, Fraud, and Abuse]]></category>
		<category><![CDATA[Wimpy]]></category>
		<category><![CDATA[gladly pay you for a hamburger Tuesday]]></category>
		<category><![CDATA[Chris Christie]]></category>
		<category><![CDATA[Chris Reed]]></category>
		<category><![CDATA[municipal bankruptcy]]></category>
		<category><![CDATA[pension]]></category>
		<category><![CDATA[San Bernardino]]></category>
		<category><![CDATA[San Diego]]></category>
		<category><![CDATA[Stockton]]></category>
		<category><![CDATA[Visalia]]></category>
		<category><![CDATA[pension follies]]></category>
		<guid isPermaLink="false">http://calwatchdog.com/?p=61454</guid>

					<description><![CDATA[California leads the way when it comes to government pension dysfunction. The first big city to be stricken by pension costs in the U.S. was San Diego, leading to the]]></description>
										<content:encoded><![CDATA[<p><img fetchpriority="high" decoding="async" class="alignnone size-full wp-image-61456" alt="wimpy" src="http://calwatchdog.com/wp-content/uploads/2014/03/wimpy.jpg" width="272" height="450" align="right" hspace="20" srcset="https://calwatchdog.com/wp-content/uploads/2014/03/wimpy.jpg 272w, https://calwatchdog.com/wp-content/uploads/2014/03/wimpy-181x300.jpg 181w" sizes="(max-width: 272px) 100vw, 272px" />California leads the way when it comes to government pension dysfunction. The first big city to be stricken by pension costs in the U.S. was San Diego, leading to the memorable 2004 New York Times&#8217; description of it as &#8220;<a href="http://www.nytimes.com/2004/09/07/national/07diego.html?_r=0" target="_blank" rel="noopener">Enron by the Sea</a>.&#8221;</p>
<p>Since then, three cities in the Golden State have either entered bankruptcy or on the verge of it because of massive pension costs &#8212; Vallejo, Stockton and San Bernardino. I&#8217;m not aware of any other state with more than one such afflicted city, and most states don&#8217;t have any.</p>
<p>But are other states learning from California&#8217;s mistakes? Evidently not. On Monday, there were reports that New Jersey was <a href="http://www.bloomberg.com/news/2014-03-31/n-j-pension-fix-disturbing-moody-s-shows-cuts-limits.html" target="_blank" rel="noopener">copying the screw-up</a> that San Diego elected officials made beginning in 1996:</p>
<p style="padding-left: 30px;"><em>&#8220;Gov. Chris Christie&#8217;s move to reduce New Jersey&#8217;s pension payment to help close a mid-year budget gap has Moody’s Investors Service concerned that the state is approaching the limit of steps to trim spending.</em></p>
<p style="padding-left: 30px;"><em>&#8220;The second-term Republican is cutting $694 million of spending to balance the budget for the year through June. That includes $94 million from recalculating the required pension contribution as a result of revised actuarial assumptions, Baye Larsen, a Moody’s analyst in New York, said in a report last week.</em></p>
<p style="padding-left: 30px;"><em>&#8220;While the fix will help balance budgets through fiscal 2018, pension costs will be higher in later years as a result, according to Moody’s.&#8221;</em></p>
<p>This is crazy. It&#8217;s especially crazy from a guy who likes to criticize President Obama for fiscal recklessness. But it&#8217;s also super-mega crazy for a politician who takes shots for his doughy appearance to be making like Wimpy of Popeye fame when it comes to indiscipline and the need for instant gratification.</p>
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		<post-id xmlns="com-wordpress:feed-additions:1">61454</post-id>	</item>
		<item>
		<title>Why Arnold owes U.S. taxpayers billions of dollars (non-bullet train edition)</title>
		<link>https://calwatchdog.com/2013/09/12/arnold-owes-federal-taxpayers-billions-of-dollars/</link>
		
		<dc:creator><![CDATA[Chris Reed]]></dc:creator>
		<pubDate>Thu, 12 Sep 2013 13:10:52 +0000</pubDate>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[California economy]]></category>
		<category><![CDATA[Inside Government]]></category>
		<category><![CDATA[Regulations]]></category>
		<category><![CDATA[bankruptcy]]></category>
		<category><![CDATA[Chris Reed]]></category>
		<category><![CDATA[Moneyball]]></category>
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		<category><![CDATA[Salinas]]></category>
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		<category><![CDATA[government efficiency]]></category>
		<category><![CDATA[Prop. 49]]></category>
		<category><![CDATA[Arnold Schwarzenegger]]></category>
		<guid isPermaLink="false">http://calwatchdog.com/?p=49649</guid>

					<description><![CDATA[Two interesting pieces published recently make a strong case that government can be made far more efficient if we actually tried empirically to evaluate what worked and what didn&#039;t. On]]></description>
										<content:encoded><![CDATA[<p>Two interesting pieces published recently make a strong case that government can be made far more efficient if we actually tried empirically to evaluate what worked and what didn&#039;t.</p>
<p>On the Zocalo Public Square website, Pepperdine academic Pete Peterson <a href="http://www.zocalopublicsquare.org/2013/09/11/did-democracy-bankrupt-our-cities/ideas/nexus/" target="_blank" rel="noopener">takes a look</a> at how this sort of thinking could help California &#8212; at least if its citizens were able to receive more sophisticated information about how their local governments were performing:</p>
<p style="padding-left: 30px;"><img decoding="async" class="alignnone size-full wp-image-49654" alt="salinas" src="http://calwatchdog.com/wp-content/uploads/2013/09/salinas.jpg" width="378" height="365" align="right" hspace="20" srcset="https://calwatchdog.com/wp-content/uploads/2013/09/salinas.jpg 378w, https://calwatchdog.com/wp-content/uploads/2013/09/salinas-300x289.jpg 300w" sizes="(max-width: 378px) 100vw, 378px" /><em>&#8220;For Californians, Detroit was not our first warning about the costs of limited and self-interested civic participation. We have our own examples — like the bankrupt cities of San Bernardino, Stockton, and Vallejo, and the municipal corruption of Bell. &#8230;</em></p>
<p style="padding-left: 30px;"><em>&#8220;The use of perfor- mance &#039;dashboards&#039; — online platforms that visualize spend- ing and program performance — by forward-thinking municipal and state governments shows how we can much better evaluate and communicate government programs. The challenge comes &#8230;  finding the courage to shut down programs that simply don’t work. &#8230;</em></p>
<p style="padding-left: 30px;"><em>&#8220;The field of data visualization has made presenting complex information — from budgets to program performance — almost easy. Take a look at Salinas, California’s &#039;<a href="http://salinas.opengov.com/" target="_blank" rel="noopener">Open Budget Platform&#039;</a> (full disclosure: I’m an advisor to this company) or Michigan’s &#039;<a href="http://www.michigan.gov/midashboard" target="_blank" rel="noopener">Mi Dashboard</a>,&#039; and you’ll see the days of budgets in three-ring binders are numbered.&#8221;</em></p>
<p>The second piece &#8212; <a href="http://www.theatlantic.com/magazine/archive/2013/07/can-government-play-moneyball/309389/?single_page=true" target="_blank" rel="noopener"> &#8220;Can Government Play Moneyball?&#8221;</a> in The Atlantic by former budget officials for both the Bush 43 and Obama administrations &#8212; is maddening in that it shows efforts to actually evaluate federal programs for their efficacy date back to the early years of the Clinton administration.  The results, alas, are rarely followed through on.</p>
<h3>Coming to the rescue of a counterproductive program</h3>
<p><img decoding="async" class="alignnone size-full wp-image-49658" alt="Arnold-Schwarzenegger-as-the-Joker--60370" src="http://calwatchdog.com/wp-content/uploads/2013/09/Arnold-Schwarzenegger-as-the-Joker-60370.jpg" width="300" height="285" align="right" hspace="20" />The authors are ultimately upbeat that such evaluations will someday help hack down federal spending. But they also provide an amusing/depressing anecdote about the circumstances that led Congress to keep going with a failed program, starring then-future Gov. Arnold Schwarzenegger.</p>
<p style="padding-left: 30px;"><em>&#8220;The federal government’s long-running after-school program, 21st Century Community Learning Centers, has shown no effect on academic outcomes on elementary-school students—and significant increases in school suspensions and incidents requiring other forms of discipline. The Bush administration attempted to reduce funding for the program. But following impassioned testimony on behalf of the program by Arnold Schwarzenegger, then a potential candidate for governor of California, congressional appropriators agreed to restore all funding. Today the program still gets more than $1 billion a year in federal funds.&#8221;</em></p>
<p>It&#039;s been 11 years since Arnold was an ardent campaigner for afterschool programs, including his <a href="http://www.smartvoter.org/2002/11/05/ca/state/prop/49/" target="_blank" rel="noopener">own California initiative</a>. But the federal version doesn&#039;t work, and yet we&#039;ve poured more than $10 billion into it over the last decade &#8212; because Arnold got in the way when reasonable and rational people tried to pull the plug.</p>
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<p>One more example that Arnold only pretended to be a <a href="http://www.dailymotion.com/video/x2jmj9_free-to-choose-schwarzenegger-intro_people" target="_blank" rel="noopener">Milton Friedman acolyte</a> all those years before he got into politics and ended all doubts. </p>
<div style="display: none">zp8497586rq</div>
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