When Kentucky’s legislature adopted a bill intended to transform the Bluegrass State’s troubled pension system last spring, state officials were ecstatic. Signing the bill into law on April 4, Democratic governor Steve Beshear hailed it as groundbreaking legislation that would “solve the most pressing financial problem facing our state – our monstrous unfunded pension liability and the financial instability of our pension fund.”
Not everyone was convinced.
Critics, who include pension-fund experts, lawmakers and AARP Kentucky, claim the new law will hurt workers, taxpayers and retirees. What’s more, they say the law was largely crafted behind the scenes by an unusual alliance between two out-of-state organizations: the Pew Center on the States and the Laura and John Arnold Foundation. Some detractors go further and assert that the Arnold Foundation is using Pew’s sterling reputation for academic integrity as a fig leaf to hide its own free-market agenda.
» Read more about: Promise Breakers: How Pew Trusts Is Helping to Gut Public Employee Pensions »
Benjamin Gamboa doesn’t know John Arnold, but they are linked by a shared concern over the fate of public-employee pensions in California.
“I’m proud to have a pension,” the 30-year-old Gamboa says. “I believe every American should have a pension.”
The two men live in very different worlds. Gamboa is a research analyst at Crafton Hills College in Yucaipa, California. Arnold is a hedge-fund billionaire from Houston, Texas.
There’s another difference between them: Arnold recently had a representative present at a secret “pension summit” held at a Sacramento hotel, where strategies to limit public employee retirement benefits were discussed; Gamboa, a union member, did not – representatives of labor were specifically not invited.
“Pension reform” has become the latest battle cry in a seemingly endless war that has ostensibly been declared against tax-dollar waste, but whose single-minded purpose has been to slash the job protections and benefits enjoyed by California’s working middle class.
» Read more about: Slash and Burn: The War Against California Pensions »
Maria Guevara had been trying to get pregnant for three years when she saw a doctor at Los Angeles County General hospital in 2008. She was understandably thrilled, then, to learn she was indeed three months pregnant at the time of her visit. As Guevara later recalled, when the doctor asked her in English if she wanted to keep the baby, “without hesitation I replied ‘yes’ to his question. Before leaving the hospital, the doctor prescribed me medication that I thought was prenatal care. That lack of communication between the doctor and me has changed my life forever.”
Guevara took the prescribed medication, and experienced violent pain and bleeding. She returned to the hospital, where another doctor told her the bleeding was the result of a miscarriage.
“My baby was dead. The medication the initial doctor prescribed to me was not prenatal care but medication to induce an abortion,” she told a press conference in April at the University of California Davis Medical Center in Sacramento.
» Read more about: Interpreter Bill Would Help Save Lives Lost in Translation »
Last November unions won a resounding victory when voters defeated Proposition 32, a ballot measure that would have crippled labor’s political influence in California, partly by barring public-employee unions from using payroll-deducted funds for political purposes. The initiative, which enjoyed a huge lead in early opinion polls, was heavily funded by wealthy conservatives and far-right groups.
Union leaders were overjoyed by its defeat.
“You can’t buy California,” Dean Vogel, president of the California Teachers Association (CTA), told an election-night victory party in Sacramento. “We’re not for sale.”
The celebration hasn’t been long lived. In a little-noticed move in April, a conservative legal organization that has pushed to overturn the 1964 Voting Rights Act filed a lawsuit in federal court in Santa Ana that could accomplish in the courts what Prop. 32 couldn’t at the ballot box. The players behind the suit may not be household names but the millionaires and private foundations covering their legal fees represent a familiar klatch of extreme libertarians who,
» Read more about: Prop. 32 Ghost Looms Over Lawsuit Against Teachers Union »
For more than 30 years each, Cheryl Smith-Vincent and Cheryl Ortega have shared a passion for teaching public school in Southern California. Smith-Vincent teaches third grade at Miles Avenue Elementary School in Huntington Park; before retiring, Ortega taught kindergarten at Logan Street Elementary School in Echo Park. Both women have been jolted by experiences with a little-known statewide policy that requires traditional public schools to share their facilities with charter schools. Ortega says she has seen charter-school children warned against greeting non-charter students who attend the same campus. Smith-Vincent reports that she and her students were pushed out of their classroom prior to a round of important student tests – just to accommodate a charter school that needed the space.
“It was extremely disruptive,” Smith-Vincent says of the incident.
The practice of housing a traditional public school and a charter school on the same campus is known as “co-location.” Charters are publicly funded yet independently operated,
» Read more about: Why Charter Schools Are Tearing Public Campuses Apart »
For days before Thanksgiving, 2009, Santa Ana winds had been blowing up ash and dust from the massive Station Fire that recently burned north of Los Angeles. The scorching, high-pressure weather system seemed a suitable climate for L.A.’s financial meltdown as the city entered the third year of America’s recessionary slump. Inside City Hall on that Wednesday before the holiday, government representatives and members of the news media listened to the testimony of a man who was on his way to becoming one of Los Angeles’ most powerful figures. He was only 40, held no elective office and had started his job as the City Administrative Officer just three months before.
Yet on this Thanksgiving eve Miguel Santana held the rapt attention of the City Council and journalists as he delivered shocking news: Los Angeles faced an imminent shortfall of $98 million and, based on his projections, the city could be burdened by a $1 billion debt by 2013.
» Read more about: L.A. Budget Czar Miguel Santana’s Shaky Math and Polarizing Ideology »
The ripples continue to spread from Frying Pan News reporter Gary Cohn’s piece on California’s enterprise zones, which were created in 1984 to help small businesses and create jobs by giving tax breaks to companies in the state’s economically depressed regions. Last Friday the Fresno Bee called for reform of the zones and today a Los Angeles Times editorial declared that nothing less than pulling the plug on the program would do.
The zones, said the Times, “were a well-intentioned experiment that was tried, failed and has been kept around too long. This is one experiment that should be ended, not merely mended.”
Cohn’s May 28 article appeared at the same time Governor Jerry Brown was maneuvering to reform the program out of existence. The Frying Pan News story emphasized that 61 percent of the enterprise program’s beneficiaries are companies with more than $1 billion in assets,
» Read more about: L.A. Times: Pull the Plug on State’s Enterprise Zones »
California’s controversial $700 million enterprise zone program has long been shrouded in secrecy. But now Frying Pan News has obtained documents showing that the Rancho Cordova strip club Gold Club Centerfolds has been approved for enterprise zone tax credits. The documents show that the gentlemen’s club has received credits worth up to $37,440 apiece for nine employees — sales associates, door hosts and security officers — who are paid from $8 to $9.25 an hour.
See Gold Club Centerfolds’ tax credit documents here.
The documents reflect only a portion of all approvals for Gold Club Centerfolds. The approvals were granted by Sacramento’s enterprise zone manager and came in 2011. The documents were obtained by the California Labor Federation under a public records request. The labor federation also requested records to see if another Rancho Cordova strip club, Déjà Vu Showgirls, has similarly been approved for tax credits,
» Read more about: In Black and White: Strip Club Approved for Tax Credits »
John Thomas and Hans Burkhardt have a lot in common. For more than 17 years each man had a good paying union job, with health and pension benefits, near San Francisco Bay. Thomas worked as a warehouseman for VWR International, a medical supply company with a warehouse in Brisbane, south of Candlestick Park. Burkhardt also worked as a warehouseman, for BlueLinx, a building products company with a facility across the bay in Newark.
The similarities don’t end there. Both Thomas and Burkhardt are now collecting unemployment, having lost their $22-an-hour jobs after their employers moved to take advantage of California’s enterprise zone plan, a controversial state program that is supposed to create jobs.
The enterprise program, established in 1984, provides $700 million in tax breaks for companies that set up business or move to one of 40 zones within the state.
» Read more about: How Enterprise Zones Are Killing the California Dream »
For five years a chorus of voices has been predicting bankruptcy for Los Angeles, while often calling for deeper cuts to city employee pensions. Today, however, Mayor Antonio Villaraigosa proposed a budget for Fiscal Year 2013-2014 that includes a one-time surplus of $119 million. While some of that surplus would rely on additional pay and benefit reductions for city workers, even without such cuts the city would have a projected surplus of close to $100 million.
“It’s better than seeing the light at the end of the tunnel – we’re almost out of the tunnel!” Matt Szabo, Mayor Villaraigosa’s deputy chief of staff, told Frying Pan News in an interview last week. Szabo discussed the city’s financial picture and said that dire financial warnings have been largely overblown.
“One of the issues that’s highly irritating is the ease with which some people have thrown around the bankruptcy term,” Szabo said.
» Read more about: Budget Shocker: L.A. Shows $119 Million Surplus »
After several years of swimming in red ink, the city of Los Angeles is now projecting a $119 million surplus for Fiscal Year 2013-2014, according to city documents presented at a news conference today presided over by Mayor Antonio Villaraigosa. (See Page 3 of the mayor’s Budget Presentation.)
City Administrative Officer Miguel Santana and other officials also attended the media event at City Hall.
The surplus is dependent on the city receiving certain one-time revenues, much of them due from the state and federal governments.
Nevertheless, this disclosure dramatically rebuffs a steady stream of predictions, made by an array of officials, mayoral candidates and commentators, that L.A. faces the possibility of bankruptcy. Such predictions have invariably been accompanied by calls to reduce the pension benefits of city employees.
Later this morning Frying Pan News will post investigative reporter Gary Cohn’s analysis of what has produced the surplus – and of the motivations behind predictions of the city’s insolvency.
» Read more about: Bulletin: New L.A. Budget Shows $119 Million Surplus »
At first glance, it is one of the nation’s hottest new education-reform movements, a seemingly populist crusade to empower poor parents and fix failing public schools. But a closer examination reveals that the “parent-trigger” movement is being heavily financed by the conservative Walton Family Foundation, one of the nation’s largest and most strident anti-union organizations, a Frying Pan News investigation has shown.
Since 2009, the foundation has poured more than $6.3 million into Parent Revolution, a Los Angeles advocacy group that is in the forefront of the parent-trigger campaign in California and the nation. Its heavy reliance on Walton money, critics say, raises questions about the independence of Parent Revolution and the intentions of the Walton Family Foundation.
(See interactive infographic, left, for donations from 2009 through March, 2013. Sources: Parent Revolution; foundation tax returns; foundation grant reports.)
While Parent Revolution identifies the Walton Family Foundation as one of several donors on its Web site,
» Read more about: Public Schools, Private Agendas: Parent Revolution »