MOORLACH UPDATE — Working With the Governor-Elect — November 8, 2018

One of the more amazing aspects of Tuesday’s General Election results is the number of Republicans rioting in the streets upset that Gavin Newsom will be the next California Governor.

I jest, of course. Republicans are not the ones that react this way. There. I got that off of my chest.

Looking at the local election results, please note that Orange County is still Orange County. It voted against Prop 1, while the rest of the state’s voters approved even more debt. And the OC voted for Props 5 and 6, while the rest of the state wanted more taxes (with many complaining that the rent is to damn high). Orange County also voted for the Republican statewide candidates. Orange County is still Orange County.

What did we observe? Diane Harkey, who won in the OC, failed in her run to succeed Congressman Darrell Issa. She raised $1.7 million, only to face $17 million thrown at her opponent from around the nation. The joys of having so many liberal billionaires, like Michael Bloomberg, playing in our local campaigns. Expect more of this in future election cycles, now that they are emboldened.

The voters have spoken. Accordingly, I welcome our new Governor and extend an offer to work together on many critical areas facing the state of California in my submission to The Sacramento Bee. It will be in print tomorrow morning. It is also in the San Luis Obispo Tribune and is the first piece below. And, the Canada Free Press provides Katy Grimes’ election perspectives in the second piece below.

SOAPBOX

Gov.-elect Newsom, let’s work together, starting with housing the homeless

BY JOHN MOORLACH

Special to The Sacramento Bee
https://www.sacbee.com/opinion/op-ed/soapbox/article221325820.html

https://www.sanluisobispo.com/opinion/article221325820.html

 

Congratulations to Gov.-elect Gavin Newsom. I look forward to working with you on solving the state’s most pressing problems. These include our state’s sorry fiscal condition, massive debt foisted upon our children and grandchildren and ending the boondoggle of all boondoggles, the high-speed train that improperly uses cap-and-trade funds, while doing nothing of substance to reduce California’s carbon footprint.

You’ve been opposed to high-speed rail from time to time, but now you’ll be responsible for signing the budget that does or does not continue a multi-billion-dollar black hole. It’s time to redirect this misspending for other urgent needs.

Let’s start with addressing homelessness. Even before I became an elected official a quarter-century ago, I worked diligently to help those who could not find shelter. This issue is so close to my heart that upon my 2015 special election to the state Senate, I chose to be sworn in at the Orange County Rescue Mission in Tustin.

We both could rattle off previous bills on homelessness and some of the underlying issues most prevalent with mentally ill people in California. Yet the state has only taken small steps toward removing the barriers so the least among us can actually afford a place to live.

One of my recent legislative efforts came in a bill that I co-authored with state Sen. Kevin de Leon. Senate Bill 1206, the No Place Like Home Act, became Proposition 2, which voters approved on Tuesday. It authorizes the state to borrow as much as $2 billion against the state income tax on millionaires to build housing for homeless mentally ill individuals.

I also helped move forward the bipartisan Assembly Bill 488, which creates a long-needed Orange County Housing Finance Trust to fund the planning and construction of homeless housing. Orange County generates the second most personal income taxes among California’s counties, but also has to deal with a large mentally ill homeless population.

Looking forward to 2019, there is much more to be done. You have called for building 3.5 million new homes by 2025, a herculean task. But that certainly is possible in a state that once built the State Water Project and the world’s best public universities.

You are quoted as being proud of outraging activists by cutting welfare for single homeless adults and applying those funds to housing services while San Francisco mayor. Good for you.

Now I suggest an even bigger “Nixon goes to China” opportunity to move the dial on housing construction – reform the California Environmental Quality Act. Designed to protect the environment, CEQA instead has become a bureaucratic monstrosity and NIMBY tool that greatly increases the time and cost of building housing of any kind.

When the will is there, CEQA has been magically modified to expedite construction for sports stadiums and arenas, including exemption bills this fall for the Oakland A’s and Los Angeles Clippers. I did not vote for those bills because I oppose CEQA favoritism.

What’s good for millionaire players and billionaire owners should be good for the middle class and the homeless. But Gov. Jerry Brown did little on CEQA reform as he presided over the worst housing situation in generations.

Gov.-elect Newsom, let’s push for substantive CEQA reform stop the expensive and unnecessary high-speed rail fiasco, address the state’s debt and care for the least among us.

John Moorlach, a Costa Mesa Republican, represents the 37th District in the state Senate. He can be contacted at Senator.moorlach.

California Blue Wave: Will it Lead to Insolvency Faster?

There is only so much we faithful, native Californians can take. How much beautiful weather is worth this leftist insanity, and/or before this leftism turns into liberty crushing authoritarianism? Just sayin…

Katy Grimes image

By Katy Grimes

https://canadafreepress.com/article/california-blue-wave-will-it-lead-to-insolvency-faster

The midterm elections have turned out as most observers expected, nationally, statewide, and in Sacramento. By historical standards, nationally, the Democrats underperformed and lost a number of high-profile races. There was no Blue Wave—more like a blue ripple.

However, California is another story, remaining as blue as can be, and headed right into insolvency. In the contest for governor, California voters chose Democratic politician Gavin Newsom over Republican businessman John Cox, who is not a politician.

California goes ‘Full Nuthouse’ as my friend Leslie Eastman reports at Legal Insurrection. In addition to electing Newsom, Eastman points out voters rejected a repeal of the gas tax, and says, “a majority of Californians are thrilled that Sacramento will squander more of their money.”

A friend pointed out “California is a state where everyone bitches about how poor they are and how they need rent control, and yet constantly vote to raise their taxes every chance they get. The voters of this state have never seen a tax increase or bond measure they didn’t love.”

Brilliant.

Californians also re-elected long-time incumbent Democratic U.S. Sen. Dianne Feinstein, rejecting Democratic State Senator Kevin de Leon (Los Angeles). Dumb and dumber was the choice there.

There were some surprises as well. California Democrats flipped three Republican districts: Rep. Steve Knight, (CA-25th District) lost to Democrat Katie Hill, Republican Diane Harkey lost Rep.Darrell Issa’s 49th District to Democrat Mike Levin, and Republican Rep. Dana Rohrabacher lost his race in the 48th District to Democrat Harley Rouda.

In statewide races, it appears Marshall Tuck has beat Assemblyman Tony Thurmond in the race for Schools Superintendent. Tuck is a real reformer. “Tuck made a name for himself in Los Angeles turning around high-poverty, low-performing charter schools before then-Mayor Antonio Villaraigosa recruited him to improve schools within the conventional public school system,” the San Francisco Chronicle Editorial Board said in their endorsement of Tuck. “Marshall Tuck is the clearest and most emphatic voice for reform in the field.”

Democrat State Senator Ricardo Lara and Steve Poizner appear in a near tie for Insurance Commissioner.

California’s Legislative Democrats appear poised to regain their super majority in the state Senate and retain the super majority in the Assembly.

Democrat Assemblywoman Anna Caballero beat Republican Rob Poythress in the race to succeed outgoing Republican Sen. Anthony Cannella in the Central Valley 12th Senate District.

Incumbent Republican State Senator Andy Vidak surprisingly lost his reelection against Democrat Melissa Hurtado in Senate District 14.

“Picking up both seats would give Democrats 28 seats in the Senate and restore the super majority they lost in June when voters recalled Josh Newman of Fullerton,sacbee.com reported.

The ballot initiatives were another surprise. Proposition 3, the water bond, was thankfully defeated. “With millions of dollars of unspent water bond money from 2006 and 2014 water bonds, why is there yet another a water bond on today’s June Primary ballot, and another on the November ballot?” I wrote in June 2018.

Proposition 5 was defeated, which would have allowed homeowners age 55 and older to sell their current homes, purchase a replacement property anywhere in the state and transfer the property tax assessment from the home they sold to the home they bought. The opposition lied and claimed that the state would have lost millions of dollars if Prop. 5 passed. Not so—Prop. 5 would have encouraged empty-nesters to sell their large family homes and downsize without being penalized. And it would have meant more money with the sale to the new owners.

Proposition 6, the gas tax repeal was also defeated—California’s high gas taxes and high car registration fees will remain. Sadly. Prop. 6 would have also amended the state constitution to require voter approval of all future increases in fuel and vehicle taxes or fees.

Proposition 8, which would have authorized State Regulation of Kidney Dialysis Clinics, was defeated. Thankfully.

Proposition 10, repeal of Costa-Hawkins, was defeated. Prop. 10 would have allowed state government to regulate rent, and would actually have created an even worse housing shortage in California.

Sacramento’s Measure U sales tax increase, a slush fund for greedy politicians, was passed by voters, despite that Sacramento city revenues are more than $120 million up from 2010, and up 16 percent in just the past two years.

Measure U doubles the 2012 half-cent sales tax increase and makes it permanent, raising Sacramento’s sales tax to 8.75 percent.

Mayor Darrell Steinberg and most of the members of City Council can’t or won’t be honest about their gross spending and particular taste for other people’s money. Despite promising to spend the Measure U tax increase money wisely, the additional $50 million will likely go straight to unfunded city pensions, which are expected to increase by $60 million a year and are projected to hit $129 million by 2022-23.

What is needed is spending discipline rather than continuing to pick the pockets of the taxpayers and business owners.

Buried at the end of the SacBee article on Measure U’s passage, is this little gem:

“Even with Measure U’s passage, the city’s budget is still projected to be in the red. The city deficit is estimated to be $7.6 million in fiscal year 2019-2020 and $28 million in 2022-23, according to the city budget. If Measure U had failed, the city’s deficit was projected to grow to $47.3 million in fiscal year 2019-2020, and to $80 million in 2022-23.”

Will California’s Blue Wave lead to insolvency faster?

Costa Mesa Republican Sen. John Moorlach’s fiscal report, “Financial Soundness Rankings for California’s Public School Districts, Colleges & Universities” finds 2/3 of California’s 944 School Districts bleed red ink. That report follows his March 2018 reports on the state’s 482 cities that found 2/3 of them in the red; of 58 counties, 55 suffered deficits and only three enjoyed positive balance sheets. His May 2018 report on the 50 U.S. states found only nine were financially healthy, with California ranked among the worst, in 42nd place.

There is only so much we faithful, native Californians can take. How much beautiful weather is worth this leftist insanity, and/or before this leftism turns into liberty crushing authoritarianism? Just sayin…

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MOORLACH UPDATE — Government Union Costs — November 8, 2017

The California Policy Center is back with another well written piece on the power of public employee unions, Sacramento’s “Daddy” (see MOORLACH UPDATE — Secretive and Expensive Union Deals — November 3, 2017 and http://www.capoliticalreview.com/capoliticalnewsandviews/moorlach-update-secretive-and-expensive-union-deals/).

You know I’ve been ferreting out the disappointing data that makes California’s Department of Transportation, Caltrans, one of the most disappointing DOTs in the nation and that reform is preferred over a new tax; that I have opposed high speed rail from the get to; that I have opposed trolleys in the OC; that I tried a CEQA reform legislative effort last year; and you know I’ve been warning you about public employee defined benefit pension plan rising costs for more than 16 years. The piece below addresses them all. And, I’ll spare you the links to my previous UPDATEs.

BONUS: The second piece is a photo from the Sacramento Bee showing me working at my front row desk during Session.

DOUBLE BONUS: Recently, I have begun my own weekly podcast, “The OC- Sacramento Connection”. On these podcasts, I have and will continue to share my thoughts on several issues including some of the ones in this update.

CLICK HERE to listen to my podcasts on ITunes free of charge.

INVITATION: My District Office has started a new Veterans Day tradition. Last year we had a simple afternoon ceremony at Crystal Cove State Beach to review the World War II history within its boundaries. Dan Worthington discussed the Fire Station, a WW II bunker that kept an eye on the California coast during the beginning of the war, pre-radar, to signal the alarm should the Japanese Fleet appear over the horizon. There is a similar location at Bolsa Chica and the west side of Catalina Island has ten such bunkers!

This year we have invited noted author Chris Epting to speak on the subject of “The Day the War Hit The Shore.” Orange County incurred civilian casualties stateside during WW II, an extremely rare occurence. This tragic episode has been lost over time, but has many valuable lessons to this day.

Please attend your traditional Veterans Day ceremonies at the eleventh hour of the eleventh day of the eleventh month on Saturday. If you want an afternoon break, join us at 3 p.m. We’ll meet at 21871 Newland Street in Huntington Beach. There should be some parking spaces at the neighboring wildlife center.

We will also have surviving family members present of those who were lost to this unique chapter in WW II local history. If you enjoy local Orange County history, this will be a relaxed setting to actually share war stories. Please RSVP with Aly Henderson at aly.john or 714-662-6050.

Without Government Unions, there Would be No Gas Tax Increase

By Ed Ring
http://californiapolicycenter.org/without-government-unions-no-gas-tax-increase/

Nobody argues that California’s roads need huge upgrades. But the solution didn’t require the $0.12 per gallon tax hike that [went] into effect [last week]. The root cause of these neglected roads – and the reason even more taxes will never be enough to fix them – is the power of public sector unions, whose agenda is consistently at odds with the public interest. Let us count the ways.

1 – CalTrans mismanagement:

CalTrans could have done a much better job of maintaining California’s roads. One of the most diligent critics (and auditors) of CalTrans is state Senator John Moorlach (R, Costa Mesa), the only CPA in California’s state legislature. Last year, Moorlachreleased a report on CalTrans which he summarized in “7-Step Fix for ‘Mismanaged’ Caltrans,” an article on his official website. Just a few highlights include the following:

  • In May 2014 the Legislative Analyst Office determined that CalTrans was overstaffed by 3,500 architects and engineers, costing over $500 million per year.
  • While to an average state transportation agency outsources over 50% of its work, CalTrans outsources only 10% of its work. Arizona and Florida outsource more than 80%.
  • 54% of CalTrans staff is at or near retirement age, so a hiring freeze would reduce staff merely through attrition, without requiring layoffs.

But Moorlach didn’t make explicit the reason CalTrans is mismanaged. It’s because the unions that run Sacramento don’t want to outsource CalTrans work. The unions don’t want to reduce CalTrans headcount, or hold CalTrans management accountable. Those actions might help Californians, but they would undermine union power.

2 – Bullet train boondoggle:

Money that could have been allocated to maintain and improve California’s roads is being squandered on a train that will do nothing to ameliorate California’s transportation challenges. A LOT of money. According to the American Road and Transportation Builders Association, California’s freeways can be resurfaced and have a lane added in each direction at a cost of roughly $5.0 million per mile in rural areas, about twice that in urban areas.

Meanwhile, the latest estimate for California’s “bullet train,” is $98 billion (that’s $245 million per mile), thanks to construction delays, and design challenges including nearly 50 miles of tunnels through seismically active mountains to the north and south. And hardly anyone is going to ride it. Ridership won’t even pay operating costs. But Sacramento pushes ahead with this monstrous waste when that same money could (at the urban price of $10 million per mile) resurface and add a lane in each direction to 10,000 miles of California’s freeways. Imagine smooth, unclogged roads. It’s not impossible. It’s just policy priorities.

But while bad roads destroy the chassis of millions of cars and trucks, and commuters endure stop-and-go traffic year after year, the California High Speed Rail Authority dutifully pushes on. Why?

Because that’s what the government employee unions want. They don’t want roads, with all the flexibility and autonomy that roads offer. They want to create a gigantic high-speed rail empire, with tens of thousands of new public employees to drive the trains, maintain the trains, maintain the tracks, and provide security, running up staggering annual deficits. But all of them will be members of public sector unions.

3 – All rapid transit boondoggles:

In a handful of very dense urban areas around the U.S., fast intercity trains make economic sense. But most light rail schemes, along with laughably absurd “streetcar” schemes that actually block urban lanes sorely needed by vehicles, do not achieve levels of ridership that even begin to justify their construction when the alternative is using that money for better, wider connector roads and freeways. The impact of ride sharing apps, the advent of non-polluting cars, and the option of using buses to accomplish mass transit goals all speak to the superior versatility of roads over rail for urban transportation.

So why do California’s cities continue to poor billions into light rail and streetcars, when that money could be used to unclog the roads?

To reiterate: The public sector unions that run California want tens of thousands of new public employees to operate the trains and streetcars, maintain them, maintain the tracks, and provide security, running up staggering annual deficits. But doing this means that public sector union membership – hence public sector union power – will increase.

4 – CEQA reform so people can live closer to the jobs:

The median home value in the United States today is $202,700. The median home value in California today is $509,600, 2.5 times as much! There is no shortage of land in California, and the alleged shortages of energy and water are self-inflicted as the result of policies enacted by California’s state legislature. But instead of reforming California’s Environmental Quality Act, SB 375, AB 32, and countless other laws that have made building homes in California nearly impossible, California’s legislature is doubling down on more government solutions – primarily to subsidize either extremely high density housing, or subsidized housing for the economically disadvantaged, or both.

None of this is necessary. Outside of California’s major urban centers, there is no reason homes cannot be profitably built and sold at a median price of $202,700, and there is no reason the people living in those homes cannot drive or ride share to work on fast, unclogged freeways.

But California’s public sector unions want more regulations on home building, and they want more subsidized public housing. Because those solutions, even though inadequate and coercive, enable them to hire vast new bureaucracies to enforce the many regulations and administer the public assets. Unleashing the private sector to build affordable homes in a competitive market would rob these unions of their opportunity to acquire more power. It’s that simple.

5 – Insatiable appetite for pension fund contributions:

According to a California Policy Center study, taking barely adequate annual employer pension contributions into account, the average unionized state/local government worker in California makes over $120,000 per year in pay and benefits. But to adequately fund their promised pension benefits, employers will need to pay at least another $20,000 per employee to the pension funds. This funding gap, which equates to over $20 billion per year, is the additional amount that is required to cover the difference between how much California’s public employee pension funds currently collect from taxpayers, and how much they need to collect to keep the promises that union controlled politicians have made to the government unions they “negotiate” with. That is a best-case scenario.

It could be much worse. A 2016 California Policy Center analysis (ref. table 2-C) estimated that under a worst-case scenario, the annual costs to fund California’s public employee pension funds could cost taxpayers nearly $70 billion more per year than they are currently paying.

And by the way, California’s pension funds are themselves almost entirely under the control of public sector unions – research the background of CalPERS and CalSTRS board directors to verify the degree of influence they have. Absent significant reform, funding California’s public employee pensions is going to continue to consume every dollar in new taxes for the next several decades. The cumulative financial impact of funding these pensions is easily triple that of the bullet train’s $100 billion fiasco, probably much more.

Let’s not mince words. Government unions control California. They collect and spend over $1.0 billion every year, and spend most of that money on either explicit political campaigning and lobbying, or soft advocacy via expensive public relations campaigns and sponsored academic studies. Their presence is felt everywhere, from local transit districts to the governor’s office. They make or break politicians at will, by outspending or outlasting their opponents. At best, California’s most powerful corporate players do not cross these unions, often they collude with them.

California’s public sector unions operate as senior partners in a coalition that includes left-wing oligarchs especially in the Silicon Valley, extreme environmentalists and their powerful trial lawyer cohorts, and the Latino Legislative Caucus – usurped by leftist radicals – and their many allies in the social justice/identity politics industry. The power of this government union led coalition is nearly absolute, and the consequences to California’s private sector working class have been nothing short of devastating.

Government unions force California’s agencies to over-hire, overpay, and mismanage, because that benefits their members even as it harms the public. These unions enforce absurd policy priorities that further harm the public in order to increase their power. They are the reason California has increased its gas tax.

REFERENCES

Pump bump: California drivers to pay 12 cents more per gallon starting Wednesday – San Jose Mercury, Oct. 31, 2017
http://www.mercurynews.com/2017/10/31/pump-bump-california-drivers-to-pay-12-cents-more-per-gallon-starting-wednesday/

California’s gas tax increases Wednesday – Los Angeles Times, October 31, 2017
http://www.latimes.com/politics/la-pol-ca-gas-tax-increase-political-battle-20171031-story.html

How much you’ll REALLY pay in gasoline tax in California – San Diego Union Tribune, Apr. 23, 2017
http://www.sandiegouniontribune.com/business/energy-green/sd-fi-california-gastax-20170413-story.html

What Californians Could Build Using the $64 Billion Bullet Train Budget – California Policy Center, Mar. 21, 2017
http://californiapolicycenter.org/what-californians-could-build-using-the-64-billion-bullet-train-budget/

American Road and Transportation Builders Association – FAQs, ref. “How much does it cost to build a mile of road?
https://www.artba.org/about/faq/

High-Speed Rail Delay More than Triples Planned Cost to San Jose – San Jose Inside, Oct. 2, 2017
http://www.sanjoseinside.com/2017/10/02/high-speed-rail-delay-more-than-triples-planned-cost-to-san-jose/

A 13.5-mile tunnel will make or break California’s bullet train – Los Angeles Times, Oct. 21, 2017
http://www.latimes.com/local/california/la-me-bullet-train-tunnel-20171021-story.html

California Environmental Quality Act – Wikipedia
https://en.wikipedia.org/wiki/California_Environmental_Quality_Act

State Senate bills aim to make homes more affordable, but they won’t spur nearly enough construction – Los Angeles Times, Aug. 11, 2017
http://www.latimes.com/politics/la-pol-ca-state-housing-deal-effects-20170811-htmlstory.html

California’s Public Sector Compensation Trends – California Policy Center, Jan. 2017
http://californiapolicycenter.org/californias-public-sector-compensation-trends/

What is the Average Pension for a Retired Government Worker in California? – California Policy Center, Mar. 2017
http://californiapolicycenter.org/what-is-the-average-pension-for-a-retired-government-worker-in-california/

The Coming Public Pension Apocalypse, and What to Do About It – California Policy Center, May 2016
http://californiapolicycenter.org/the-coming-public-pension-apocalypse/

Senate President Pro Ten Kevin de Leon, D-Los Angeles, during a key climate change vote on July 17, 2017. Hector Amezcua hamezcua

http://www.sacbee.com/news/politics-government/capitol-alert/article178559596.html?#emlnl=Alerts_Newsletter&id=am9obm1vb3JsYWNoQGdtYWlsLmNvbQ==

This e-mail has been sent by California State Senator John M. W. Moorlach, 37th District. If you no longer wish to subscribe, just let me know by responding with a request to do so.

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