Of all the 50 states, California’s government workers make the highest pay, averaging $5,774 a month in March 2010, according to U.S. Census data. That works out to $69,288 a year.

Local government workers in Washington, D.C., made a little more, at $5,990. But D.C. gets vast funding from federal taxpayers, part of the $4,000,000,000,000.00 of our tax dollars that sluices through D.C.

For the 50 states and local governments, although a lot of federal money is involved, most money is grabbed from state citizens. No wonder California taxpayers are whacked at among the highest rates in the country.

And what do we show for it? Although unemployment has improved, it’s still the second worst in the country, behind Nevada.

Our schools commonly rank 48th of the states on the National Assessment of Educational Progress tests.

Median income in California crashed 9 percent from 2006 to 2010, nearly double the 5 percent annual rate.

The roads are falling apart. The infrastructure is dilapidated. The state can’t solve its Delta water problems.

Yet the bureaucrats who run the whole shebang — mainly run it into the ground — are getting paid more than those in any other state.

If California were a private-sector company, it long ago would have gone bankrupt, its profitable parts, if any, sold off to the highest bidder.

But because so many people believe the fiction that government is somehow “different,” that it’s really all of “us” working “together,” this expensive, dysfunctional monstrosity continues to tax and regulate us to death — while being paid excessively.

A good example of the dysfunction is firefighters, who top the pay list in California at $9,774 per month on average, or $117,288 a year. Yet firefighting easily could privatized everywhere, or turned over to volunteer fire departments.

That’s unlikely to happen because the “people” don’t run California, the government-worker unions do. The unions force massive dues from their “members,” then use the money to get their bought politicians to pilfer the pockets of taxpayers at record levels. Not only that, but the unions have run up pension benefits $500 billion beyond the state’s current ability to pay.

Instead of trying to raise taxes $7 billion, as Gov. Jerry Brown wants, he should be cutting the massive pay, perks and pensions of government workers. The state just can’t afford it anymore. Common citizens — the private sector — are broke and suffering. The slaves can’t take any more lashes across their backs.

Feb. 7, 2012

Currently the full-time Legislature costs the state $256 million annually for “legislative expenses.” Most legislators are paid $95,291 per year. They receive reimbursement for travel costs, “per diem” payments for additional living expenses while in session, and “other expenses” incurred while carrying out legislative business.

If voters approve a part-time Legislature, salaries would be reduced to $1,500 per month totaling only $18,000 per year. And with a limitation of only 95 days each year in session, travel and per diem costs would be dramatically reduced.

The LAO estimates that just the salary reductions would save the state $9.2 million annually, and the other cost savings would run into “tens of millions of dollars” annually.

However, the wild card is the “future actions” of the Governor, the Legislature, the Treasurer and Controller, according to the LAO. The summary of the report is unclear:

The measure would have the following fiscal effect:

• Reduction in state legislative expenses for Member salaries, travel and living expenses, and staff costs—potentially in the tens of millions of dollars per year. Actual reduction would depend on future actions of the Legislature and the Governor.
• Reduced state spending or increased state revenues in some years. Over time, the net fiscal effect of this provision is unknown and would depend on future actions of the Legislature, Governor, State Treasurer, and State Controller.

In this Legislature, with this Governor, “future actions” could mean anything, despite the will of the voters.

I say throw caution to the wind and go for it – what have we voters got to lose except 2,300 annual bills that only impose more taxes and regulations, growing public pensions and government, government waste, unemployment, global warming regulations, nanny laws, business-killing laws, and fewer civil liberties and rights? The only thing we have to fear… is more of our expanding state government.

JAN. 23, 2012

Get a load of this title AG Kamala Harris gave Gov. Jerry Brown’s $7 billion tax-hike initiative: “TEMPORARY TAXES TO FUND EDUCATION. GUARANTEED LOCAL PUBLIC SAFETY FUNDING.”

That should trick a couple hundred California voters into voting for the Dear Leader’s unneeded tax grab, maybe putting it over the top.

A more accurate title would have been: “MASSIVE TAX INCREASE WOULD ROB YOU AND DESTROY JOBS.”

Or how about: “WASTEFUL TAX INCREASE WOULD FUND PENSIONS, DESTROY THE STATE.”

But Harris’s title is what we get when voters put far-left ideologues in power like her and the Dear Leader.

– Jan. 18, 2012

Under the policies of President Barack Obama, America has suffered the longest period of unemployment near 9 percent or higher since the Great Depression. Many economists say that the unemployment rate is really hovering at 11 percent, and that the Obama administration has been jockeying the numbers to make it look more favorable.

However, unemployment was 5 percent or less under President George Bush before it began to rise in his last two years in office. After Barack Obama was elected, unemployment kept rising to above 10 percent, before it began a slight decline. In particular, jobs growth slowed after Obamacare passed in 2010.

“Unemployment will come down when the rate of business startups and expansions increases,” explained the Heritage Foundation. “Such entrepreneurship cannot be centrally planned from Washington. However, the government can and should remove barriers it imposes that harm business prospects.” Nor can California’s recovery be centrally planned from Sacramento.

The president has already signed into law increases in the top tax rates of nearly every major federal tax in current law for 2013.

Adding to the increasing tax burden, the Bush tax cuts expire in 2013. President Obama has refused to renew the tax cuts for singles with income over $200,000 per year, and couples with income over $250,000 per year — the new definition of “rich.” Who does this hurt? Job creators, small private investors, and small businesses.

“But we cannot afford $1 trillion worth of tax cuts for every millionaire and billionaire in our society. We can’t afford it. And I refuse to renew them again,” Obama said in a speech last April about the Bush tax cuts.

A recent story in Forbes by policy analyst and lawyer Peter Ferrara explained, “When the tax increases of Obamacare become effective in 2013, if the Bush tax cuts just expire for these upper income taxpayers, the top two income tax rates will jump nearly 20 percent, the capital gains tax rate will soar by nearly 60 percent, the tax on corporate dividends will nearly triple, and the Medicare payroll tax will leap by 62 percent for those disfavored taxpayers.”

Just living in America in 2013 is going to be a great deal more expensive because of federal taxes. Added to the federal tax increases, what will happen in California if the Democrats have total control of the state’s checkbook could be devastating and just too expensive for any remaining small business owners and the middle class.

Given California politicians’ obsession with always being ahead of the rest of the country, if all goes according to state Democratic central planning, it appears that Californians will be much farther ahead on the road to a full blown government takeover than the rest of the country.

California’s propensity for borrowing to keep government going without commensurate cuts to state spending means that the state’s economy will only sink deeper into the bottomless black hole of debt.

History has proven time and time again that only with private-sector spending does economic stimulus occur. And history has proven that government borrowing and government spending do not stimulate anything except government jobs and government expansion.

JAN. 17, 2012

Assemblyman Jim Nielsen (R-Gerber) announced today that in order to better inform Californians about how their tax dollars are being spent by the government, Assembly Republicans are launching www.CABudgetFactCheck.com, an interactive, non-partisan web site, dedicated to provide key budget facts.

“We live in a day and age when we can and should empower the greater public by sharing with them various studies, facts and findings which influence the legislative decision-making process in the government,” said Nielsen. “For example, there has been a great deal of noise about tax increases and how that should be the solution to the California budget deficit.  However, revenues are growing at a strong pace; in fact, personal income tax collections are 10 billion dollars higher than what the Governor projected previously, proving once again that the real problem that we have is state spending and not the lack of adequate revenues.”

Nielsen said that through this new medium available to all Californians, they now have the opportunity to hold government more accountable and investigate in greater depth crucial state issues which impact their lives and pocketbooks.

The web site is meant to be interactive, allowing individuals to leave comments, ask questions, or share their opinions in writing and even video format.

“Over the past few years, many fee and tax proposals like the ‘Fire Tax,’ that impact people’s lives, have been inserted into the budget with little to no public or legislative input,” said Nielsen. “Through this new medium, you will now have the chance to see the entire picture and to participate in the budget process.  I encourage all Californians to express their opinions and ideas through this new website.”

JAN. 10, 2012

It’s High-Speed Rail fanatic Jerry Brown who himself will kill the California High-Speed Rail Authority.

The reason: His first priority this year is passing his $7 billion tax increase ( which might only bring in $4.8 billion, according to the Legislative Analyst). Or some equivalent tax increase he works out with others proposing tax increases.

To pass a tax increase, he’s going to have to convince voters to approve a tax-increase initiative in November.

But so long as the High-Speed Rail is in existence, tax opponents will point to it as the Poster Boondoggle for government waste. They’ll take aim at its price tag of at least $98 billion. Jon Coupal of the Howard Jarvis Taxpayers Association and others will have a field day.

You can write the attack ads yourself: “Gov Jerry Brown wants to increase your taxes $7 billion. Yet he keeps pushing the $98 billion bullet train that everyone says is a boondoggle.” Follow that with quotes from the analyses by the Peer Review group, the Legislative Analyst and others.

So Brown will kill the bullet train. He’ll probably do it in his May Revise to his budget. By then a strategy will be set among himself, the powerful government-worker unions and the tax-increase billionaires on what tax increase will be pushed before voters. The mercy killing will be accompanied by a lot of wailing and gnashing of teeth, by the governor and others, but it will happen.

They’re not going to want any distractions.

The bullet train will be pushed off a cliff.

You read it first here on CalWatchDog.com

Jan. 10, 2012

Is California sliding into the Pacific Ocean? Are there riots in the streets? Are Californians starving to death?

None of the above.

Then the solution to the state budget problem is simple: Just rinse and repeat the fiscal 2011-12 state budget, which ends June 30, for the following year’s budget, fiscal 2012-13, which begins July 1.

Gov. Jerry Brown’s budget proposal increases spending $6 billion, while imposing $7 billion in new taxes to pay for it. The Legislative Analyst says the real tax intake would be $4.8 billion.

Either way, why not just cancel the higher spending and the higher taxes Brown wants to pay for it? Just keep on chooglin’ with with the current budget.

Of course, then Brown couldn’t shift into Gov. Moonbeam Mode and push his “bold moves,” as Katy Grimes reported, on High-Speed Rail, alternative energy and water. He’d just be an accountant who could take a vacation.

But that’s what the state needs. We’ve had “bold moves” from too many governors who now are in retirement after they left the state broke.

The toll is seen in a state debt that, as tallied by Dan Walters. The debt now totals something like $1 trillion. He wrote, “Brown’s budget pegs the state’s pension debt at $45.2 billion and retiree health care at $59.9 billion, but independent estimates of the pension gap have ranged as high as a half-trillion dollars, depending on assumption of future investment earnings. In all, state and local governments may be a trillion dollars in debt, equal to half of California’s annual economic output.”

And here’s a final point: What if Silicon Valley, whose billionaires pay so much of the state tax bill, finally get sick of Taxifornia, and decamp for Reno — with no state income tax — keeping only their vacation beach houses in California?

Jan. 10, 2012

Since I went to school before new math was taught, I got out my calculator and using old, traditional math, I started adding up education costs, health care, welfare, all social services, K-12 education, higher education, transportation and corrections.

The governor’s finance people published some summaries of the budget, including the Health and Human Services budget. “Budget includes $100.1 billion ($26.4 billion General Fund and $73.7 billion other funds) for these programs,” the summary states. 

I contacted several state Capitol insiders confidentially, and received some interesting responses. One said that the difference is state General Funds versus all others, including transfers in from the Federal government and other state/other funds or reimbursements. Our total budget is probably double what is being reported – or maybe more.

In a list of state department costs, the “Proposed Budget Detail shows budget year personnel years and expenditures for each agency area. These totals are comprised of State funds which include General Fund, special funds, and selected bond funds. These totals do not include federal funds, other non-governmental cost funds, or reimbursements,” the summary states.

Look at these departmental totals:

K thru 12 Education  $39,214,791

Higher Education  $9,803,278

Health and Human Services $ 42,892,420

Corrections and Rehabilitation $10,718,529

Business, Transportation & Housing  $11,276,814

Natural Resources $4,643,208

Environmental Protection $1,306,741

State and Consumer Services $1,426,790

Labor and Workforce Development $834,349

General Government  $9,549,748

Legislative, Judicial, and Executive $5,661,159

TOTALS $137,327,827  (Link to the list)

However, $137.3 billion includes all state funds (General funds, special funds and bond funds). If federal funds are included, the total is $210.1 billion.

The following list reflects the break downs within the Department of Heath and Human Services – welfare and all it covers.

Health & Human Services Agency, Secretary – $200,996

*and within that one classification are the Secretary for HHS, The California Office of Health Information Integrity, and Office of Systems Integration
Emergency Medical Services Authority – $27,573 4100

State Council-Developmental Disabilities – $11,558

Statewide Health Planning & Development – $116,502

Department of Aging – $195,290

Commission on Aging  - $440

California Senior Legislature – $480

Department of Alcohol & Drug Programs – - -

Children & Families Commission –  $442,886

*notice the Medi-Cal Health Care Services: Department of Health Care Services – $60,953,112

Department of Public Health – $3,427,669

California Medical Assistance Commission – - -

Managed Risk Medical Insurance Board – $965,569

Department of Developmental Services – $4,682,613

Department of State Hospitals – $1,530,363

Mental Hlth Svcs Ovrst and Acntblty Comm – $6,671

Dept of Community Services & Development -$ 260,183

California Health Benefit Exchange – $39,421

Department of Rehabilitation – $421,287

State Independent Living Council  - $717

Department of Child Support Services – $998,798

Department of Social Services – $17,501,678

State-Local Realignment –  $4,347,047

State-Local Realignment, 2011 – $3,873,680

General Obligation Bonds-H&HS –  $66,531

Totals, Personnel Years and Expenditures — $100,071,064

The $92.6 billion fairy tale estimate put out by Brown’s office is just the tip of the iceberg. Look at the breakdowns for yourself HERE and HERE.

This is just a teaser. I will follow up with more…

JAN. 9, 2012

One thing I keep blogging about is that the U.S. economy really has not grown in about 13 years. For example, there’s been no growth in median incomes in California.

A new chart, below, shows there’s been no net jobs creation at all in the United States the past 13 years. No wonder unemployment remains so high, although it did drop a little last month, to 8.5 percent nationally.

The chart shows that the smal increase in jobs so far in the 2010s barely has made up for the incredible loss of jobs throughout the dismal 2000s.

This explains the federal and state budget problems. When incomes and jobs growth stopped, governments should have stopped growing, too. After all, government is basically a parasite on the private sector. It taxes what private people and businesses produce. If that private production stagnates — as has happened for 13 years — then the only way government can “grow” is through deficits, tax increases and inflation; which is what we’re seeing.

As I also keep saying, if Gov. Jerry Brown wants to spend more money — his new budget seeks to spend another $6 billion a year — then he should improve the state’s business climate. More jobs, paying higher wages, translate into more taxpayers paying into state coffers.

But he’s not doing that. Instead, he’s seeking a $7 billion tax increase.

That would only make things worse by taking money from people and businesses who create jobs.

Jan. 7, 2012

The following 3 minute video explains what’s wrong with government debt. It specifically concerns the federal debt of $15.2 trillion (the number has gone up since the video).

But it also applies to California’s $500 billion debt for government-worker pensions.

Where’s all that money going to come from?

Jan. 7, 2012