Most studies suggest these agreements hike constructions costs by as much as 25 percent because they reduce the number of contractors — and especially lower-cost nonunion contractors — who bid for these projects. As a result, trade unions have had a tough road in convincing districts to embrace them given the impact on costs, even though they tout them as a way to assure labor peace (i.e., no strikes).
Under California’s new local control funding formula, schools get additional money for low-income, non-English speaking and foster youth. In a letter State Superintendent of Public Instruction Tom Torlakson has told districts they can spend that money for across-the-board teacher raises if they can link the increases to better student services. Torlakson was not available for an interview.
A reasonable estimate would be $350 billion, equivalent to a sixth of the state’s economic output and over twice the official budget number of $167.6 billion.
CalSTRS said Friday it earned 4.8 percent profit on its investment portfolio in the just-ended fiscal year, its lowest gain in three years.
The bill actually aims to keep the public in the dark about public-employee negotiations, ensuring taxpayers never learn the costs of collective bargaining agreements until they’re done deals.
The chairman of the state agency that finances affordable housing has announced he will soon leave amid criticism that his development company plans to eliminate several rent-controlled units to make way for million dollar homes.
The Department of Finance reports California exceeded revenue projections for the fiscal year by $732 million. Revenues were originally projected to be about $114 billion.
The nation’s largest public pension fund said its investments returned just 2.4% for its fiscal year, ended June 30, far below its 7.5% investment target.
Some state workers fired from their jobs could apply for another state position and not disclose their termination, under the terms of a bill that is now in the California state Senate.
California’s cash position was very poor for FY 2013. When including all forms of cash, the state had 1.29 times the amount of cash available to cover short-term expenses, which was almost three times less than the national average. On a fiscal year basis, California had sufficient revenues to cover expenses and ran a slight surplus. But the long-term picture showed several warning signs. Long-term liabilities accounted for nearly 80 percent of the state’s total assets. The largest area of fiscal risk was in California’s state-run pension systems, which had a staggering $636 billion shortfall when calculated on a risk-free or guaranteed-to-be-paid basis.
The Wall Street ratings agency Standard & Poor’s gave a vote of confidence to California’s finances on Thursday, upgrading its credit rating to its highest level in 14 years.
New numbers from the Legislative Analyst’s Office, reflecting the latest data from the Franchise Tax Board, show that the state took in $541 million more in income tax and corporate tax revenue than reflected in the budget approved two weeks ago.
The challengers contend public-sector unions are effectively engaging in political lobbying when they negotiate contract terms with school boards and other government agencies. The plaintiffs say forced union contributions compel public employees to subsidize speech with which they disagree, in violation of their First Amendment rights.
About 30,000 teachers pay CTA’s “agency fees” without being members, but it’s believed that should the court end compulsory payment, as many as a third of its members would drop out, which could mean a $100 million loss of annual income.
The purpose of the new rules was briefly outlined last week by the accounting board chairman, David Vaudt . . . “Previously, what happened under current standards is that the pension and OPEB liabilities appeared in the footnotes of the financial statement, and regretfully that didn’t get the attention of the policymakers, the mayors and councils, the governors and the legislators,” Vaudt said.