MOORLACH UPDATE — LAUSD vs. OC School Districts — September 18, 2018

When I shared our research concerning the Unrestricted Net Positions (UNPs) of the 940 school districts around the state of California on the Senate Floor during the last few days of this year’s Session, I recall receiving only one comment on the Floor from my colleagues on the other side of the aisle.

“I thought there were 1,005 school districts?”

Other than that, crickets.

The districts we reviewed found that a few had combined their balance sheets for auditing purposes. I also intentionally did not include the 58 County Departments of Education, as they are administrative in nature.

To give you the full portfolio of California’s school related districts (with exceptions for a few unique agencies), I have provided the 58 DOEs in the first piece below. They are ranked in order of the highest to lowest UNP per capita. If the actual UNPs were ranked, then the third column provides the placement. The fourth column provides the population of the county. The fifth column provides the actual UNP from the DOE’s Comprehensive Annual Financial Report (CAFR). And the sixth divides the UNP by the population for the per capita. As you can see, Orange County placed well in both categories. San Francisco has one unified school district that includes the DOE.

Of the 58 counties, at least 51 of them have manageable per capita unrestricted net deficits of $159 or less. Obviously, with a few exceptions, the DOEs are not an area of severe fiscal anxiety.

The second piece below is the rankings for the Orange County school districts. The sequencing of the columns is the same, except we have both the Orange County rankings and the California rankings in the first two columns.

I’ve also provided a bonus at the very bottom of the second piece. We hear so much about Los Angeles Unified School District (LAUSD) in the local news about its board, its superintendent, and its teachers union wanting to go on strike for pay raises.

Totaling the number of students in all of Orange County’s school districts, the population is lower, but comparable, to that of just the LAUSD. But, the LAUSD has a negative UNP 234% higher than the negative UNP when we combine all the UNPs of OC’s 27 districts. LAUSD’s UNP per capita is three times that of the average for the entire OC! That’s how massive LAUSD’s fiscal hole is. So, this CPA doesn’t know where the union demanded pay raises are going to come from.

The third and final piece is from the OC WEEKLY on our Top 20 worst bills for the Governor to veto (see MOORLACH UPDATE — 2018 Top 20 Veto Worthy Bills — September 13, 2018).

1 Sierra 9 3,207 $1,577,053 $492
2 Alpine 12 1,151 $512,215 $445
3 Siskiyou 6 44,688 $9,003,498 $201
4 Mendocino 5 89,134 $12,296,835 $138
5 Marin 3 263,604 $21,049,100 $80
6 Modoc 10 9,580 $665,142 $69
7 Mono 11 13,713 $648,512 $47
8 San Benito 8 56,854 $2,100,167 $37
9 San Mateo 2 770,203 $27,472,679 $36
10 San Diego 1 3,316,192 $38,758,618 $12
11 Lassen 13 30,918 $245,495 $8
12 Inyo 14 18,619 $140,423 $8
13 Orange 4 3,194,024 $17,573,424 $6
14 San Joaquin 7 746,868 $2,528,230 $3
15 Sacramento 16 1,514,770 ($868,045) ($1)
16 Alameda 29 1,645,359 ($7,986,633) ($5)
17 Riverside 47 2,384,783 ($27,154,755) ($11)
18 Fresno 43 995,975 ($18,864,868) ($19)
19 Los Angeles 56 10,241,278 ($195,881,054) ($19)
20 Stanislaus 33 548,057 ($11,634,171) ($21)
21 Sonoma 36 505,120 ($12,618,749) ($25)
22 Ventura 44 857,386 ($22,269,861) ($26)
23 Yolo 24 218,896 ($6,211,159) ($28)
24 Santa Cruz 28 276,603 ($7,933,136) ($29)
25 Santa Barbara 37 450,663 ($13,127,872) ($29)
26 San Bernardino 53 2,160,256 ($71,759,024) ($33)
27 Solano 39 436,023 ($14,625,433) ($34)
28 Santa Clara 52 1,938,180 ($69,190,829) ($36)
29 Lake 19 64,945 ($2,323,693) ($36)
30 Contra Costa 51 1,139,513 ($43,909,435) ($39)
31 San Luis Obispo 35 280,101 ($11,719,764) ($42)
32 Shasta 27 178,605 ($7,589,514) ($42)
33 Trinity 15 13,628 ($717,619) ($53)
34 Yuba 20 74,577 ($4,172,000) ($56)
35 Placer 45 382,837 ($22,636,042) ($59)
36 Napa 31 142,408 ($8,453,816) ($59)
37 Mariposa 17 18,148 ($1,108,289) ($61)
38 Tulare 48 471,842 ($30,052,109) ($64)
39 Butte 40 226,404 ($14,715,601) ($65)
40 Plumas 18 19,819 ($1,305,638) ($66)
41 Imperial 38 188,334 ($13,767,069) ($73)
42 Tehama 22 63,995 ($5,092,842) ($80)
43 Tuolumne 21 54,707 ($4,698,833) ($86)
44 Nevada 32 98,828 ($8,996,066) ($91)
45 El Dorado 41 185,062 ($16,936,207) ($92)
46 Kern 54 895,112 ($103,519,447) ($116)
47 Sutter 34 96,956 ($11,707,823) ($121)
48 Kings 42 149,537 ($18,595,053) ($124)
49 Merced 49 274,665 ($36,520,205) ($133)
50 Madera 46 156,492 ($24,785,793) ($158)
51 Calaveras 26 45,168 ($7,177,756) ($159)
52 Glenn 23 28,731 ($5,812,763) ($202)
53 Amador 30 38,382 ($8,006,786) ($209)
54 Colusa 25 22,043 ($7,122,875) ($323)
55 Monterey 55 442,365 ($157,829,599) ($357)
56 San Francisco 58 874,228 ($769,634,620) ($880)
57 Del Norte 50 27,124 ($38,578,454) ($1,422)
58 Humboldt 57 136,953 ($200,656,339) ($1,465)
1 102 Fountain Valley Elem 10 56,680 $ 4,442,293 $ 78
2 180 Laguna Beach Unified 417 30,473 $ (6,788,067) $ (223)
3 239 Fullerton Joint Union 814 263,036 $ (90,589,885) $ (344)
4 242 Huntington Beach Un 839 329,030 $ (115,027,881) $ (350)
5 357 Huntington Bch City 696 87,348 $ (44,366,541) $ (508)
6 375 Centralia Elementary 640 58,162 $ (30,967,215) $ (532)
7 384 Orange Unified 848 229,379 $ (126,605,490) $ (552)
8 403 Garden Grove Unified 877 289,419 $ (165,866,377) $ (573)
9 408 Savanna Elementary 551 30,815 $ (18,157,779) $ (589)
10 423 Cypress Elementary 627 45,853 $ (27,831,436) $ (607)
11 426 Los Alamitos Unified 643 51,313 $ (31,761,922) $ (619)
12 463 Anaheim Union High 920 407,353 $ (275,086,177) $ (675)
13 505 Magnolia Elementary 711 65,387 $ (48,436,096) $ (741)
14 507 Fullerton Elementary 816 124,400 $ (92,384,118) $ (743)
15 517 La Habra City Elem 685 54,112 $ (40,700,535) $ (752)
16 530 Saddleback Valley 882 216,853 $ (168,874,907) $ (779)
17 557 Ocean View 795 96,613 $ (78,587,392) $ (813)
18 573 Tustin Unified 841 139,222 $ (116,529,487) $ (837)
19 579 Anaheim Elem 887 207,135 $ (174,109,858) $ (841)
20 605 Brea-Olinda Unified 648 36,778 $ (32,674,279) $ (888)
21 612 Buena Park Elem 698 50,423 $ (45,271,021) $ (898)
22 662 Placentia-Yorba Lda 874 166,393 $ (160,733,330) $ (966)
23 663 Capistrano Unified 924 361,468 $ (349,462,462) $ (967)
24 679 Westminster 808 88,390 $ (87,333,440) $ (988)
25 729 Newport-Mesa Unif 914 205,879 $ (224,251,945) $(1,089)
26 743 Irvine Unified 911 196,209 $ (218,735,844) $(1,115)
27 901 Santa Ana Unified 934 268,905 $ (485,362,423) $(1,805)
Totals 4,157,028 $ (3,252,053,614) $ (782)
922 Los Angeles Unified 940 4,688,889 $(10,855,983,000) $(2,315)

SoCal Conservatives List Proposed “Noxious” Veto-Worthy California Laws

R. SCOTT MOXLEY

https://www.ocweekly.com/socal-conservatives-list-proposed-noxious-veto-worthy-california-laws/

Calling the state legislatures current session in Sacramento “over-the-top with noxious legislation,” Orange County-produced The FlashReport this month published a list of the “Top 20” proposed new state laws conservatives view contemptuously.

The list is the work of state Senator John Moorlach (R-Costa Mesa) and assemblywoman Melissa Melendez (R-Lake Elsinore), both known in their political circles as hardcore budget watchdogs over the plans of the Democratic Party majority, which controls both houses of the legislature as well as the governor’s mansion.

For example, hoping for Gov. Jerry Brown’s extensive use of his veto powers, Moorlach and Melendez lambast the following pending bills:

–Exempting the troubled and wild spending California High-Speed Rail Authority from thorough financial audits;

–Fining already poorly-paid restaurant employees for giving customers plastic straws unless requested;

–Raising the age to legally purchase handguns from 18 to 21 while the draft age for military combat service remains 18;

–Banning smokeless e-cigarettes smoking at all parks, public campgrounds, state beaches, monuments and historical markers; and

–Requiring gender-based quotas on board of directors for private California corporations, including a statutory-mandated 2021 benchmark of hiring at least three female directors if a company has slots for six directors.

You can see the rest of the list at Jon Fleischman’s FlashReport site.

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MOORLACH UPDATE — David Kiff — July 13, 2018

In the first piece below, the Daily Pilot provides an account of Newport Beach City Manager Dave Kiff and his reminiscing at yesterday’s Newport Beach Chamber of Commerce breakfast.

So, let me do the same. David Kiff helped me on my campaign for Treasurer back in the spring of 1994. That’s when I remember meeting him for the first time. I can still recall him dropping by my campaign headquarters in Costa Mesa and noticing how buff he was. For this accountant that doesn’t work out much, it’s something that I remember teasing Dave about over the years. He is always in great shape.

When his boss, the late Sen. Marian Bergeson, one of my campaign honorary co-chairs, along with then U.S. Representative Chris Cox, decided to withdraw her endorsement, I rushed to her Newport Beach office. I met Dave there and asked what was going on?

Dave is quiet and noncontroversial, so he politely claimed ignorance. I then pleaded with the Senator to change her mind and continue her endorsement. Unbeknownst to me, since she was running for Orange County Supervisor to replace Supervisor Tom Riley at the time, she was receiving an incredible amount of pressure from the Supervisors and the County Administrative Officer, Ernie Schneider, to drop her support of my candidacy. She caved.

I told her in that meeting that when the portfolio blows, she would be behind the leadership curve for dropping her endorsement. But, the nationwide articles covering the campaign in The Wall Street Journal and The Bond Buyer, which are now seen as prescient, were too frustrating to the Orange County bureaucracy I was taking on at the time.

Sen. Bergeson would win her election in June. The bankruptcy filing would occur on December 6th and she was sworn in the first Tuesday of January, thus inheriting the fiscal mess and the responsibility to clean up the mess.

Some would say that her move cost me ten percent of the vote and, thus, the election.

A few months into her term she lamented to me that the first question every reporter that called her on the Orange County bankruptcy would ask, “Why did you drop your endorsement of Moorlach?”

Dave would go on to work with Supervisor Bergeson on the “Fifth Floor” in the Civic Center and we would interact often as the Supervisors voted unanimously to appoint me to the position of Orange County Treasurer-Tax Collector on March 17, 1995. After a number of months, Supervisor Bergeson resigned and accepted an appointment by Governor Pete Wilson to serve as the state’s Secretary of Education. This pulled her out of two storms, the bankruptcy recovery effort and the battle over the El Toro Marine Corps Air Station and its future.

That’s when Dave moved over to the city of Newport Beach. In his role there, we worked together closely. I met with him shortly after being elected Orange County Supervisor in 2006 to discuss the harbor, potential annexations, and the John Wayne Airport Settlement Agreement Extension.

The settlement agreement extension would be a major subject years in the future, but I wanted to start on it immediately. Know that years of preparation went into the process and we have Dave Kiff’s leadership to thank for a successful outcome.

A sampling of the many successes that we enjoyed over the years are captured in my blog and provided below. The joys of public service are two-fold. The first is that taking on major projects is not easy and can be very lengthy and laborious. But, the second is the satisfaction of knowing, as you reflect back, that good things were accomplished.

David Kiff, thanks for serving quietly, diligently, non-confrontationally, and humbly. It was an honor to work with you. I wish you all the best in your future. I hope to bump into you again at the annual California New Car Dealers Association Auto Show at the Anaheim Convention Center or to visit when you move to Sonoma County, as it is a short day trip from Sacramento.

On addressing homelessness:

* MOORLACH UPDATE — AB 718 — July 8, 2015

On addressing defined benefit pension liabilities:

* MOORLACH UPDATE — Addressing Pension Mess — June 24, 2017

* MOORLACH CAMPAIGN UPDATE — Announcement Coverage — January 18, 2015

* MOORLACH UPDATE — Kelly Thomas Reverberations — January 15, 2014

* MOORLACH UPDATE — The New Yorker — August 30, 2011

* MOORLACH UPDATE — Daily Pilot — August 14, 2010

On collaborating on the John Wayne Airport Settlement Agreement Extension and curfew continuance:

* MOORLACH UPDATE — Newport Beach City Council — October 16, 2014

* MOORLACH UPDATE — 2014 Bucket List — October 3, 2014

* MOORLACH UPDATE — JWA Settlement Agreement — October 1, 2014

* MOORLACH UPDATE — Mil-Walkie — July 7, 2014

* MOORLACH UPDATE — JWA & CEO — March 22, 2013

* MOORLACH UPDATE — Detroit — March 15, 2013

* MOORLACH UPDATE — Barbara Venezia — November 19, 2011

* MOORLACH UPDATE — Take a Hike — March 4, 2011

* MOORLACH UPDATE — Happy 25th JWA — August 2, 2010

On his history with Sen. Marian Bergeson:

* MOORLACH CAMPAIGN UPDATE — Filing Period Opens — February 16, 2014

On negotiating with the County regarding the cost of Harbor Patrols:

* MOORLACH UPDATE — Thankful — November 29, 2013

On the fire ring debate:

* MOORLACH UPDATE — Debate — May 14, 2013

On dredging the bay:

* MOORLACH UPDATE — Intriguing Dredging — February 25, 2013

* MOORLACH UPDATE — Labor Day Weekend — September 4, 2010

On the Mesa Drive Horse Trail:

* MOORLACH UPDATE — Number 57 — December 26, 2012

* MOORLACH UPDATE — Remembrance — June 1, 2012

On Shellmaker Island:

* MOORLACH UPDATE — LA Times — June 2, 2012

On the closure of the Santa Ana Heights Redevelopment Agency:

* MOORLACH UPDATE — Auditor-Controller — March 29, 2012

On the annual Newport Beach Mayors’ Dinner:

* MOORLACH UPDATE — Hob-Knobbing with Homeless — February 14, 2012

On the annual budget process for Newport Beach:

* MOORLACH UPDATE — Take a Hike — March 4, 2011

Receiving the Jim deBoom Eagle Award:

* MOORLACH UPDATE — Thanksgiving — November 26, 2009

Being recognized in the annual Daily Pilot 103:

* MOORLACH UPDATE — Addressing Pension Mess — June 24, 2017

* MOORLACH UPDATE — Numbers 1050 and 49 — January 2, 2016

* MOORLACH UPDATE — Seeking Shelter 2014 — December 26, 2014

* MOORLACH UPDATE — Number 57 — December 26, 2012

* MOORLACH UPDATE — Happy New Year! — December 31, 2011

Oh, there is also a second piece below. R Street mentions the fun panel I enjoyed yesterday evening at the Huntington Beach City Council Chambers. Unfortunately, CalPERS CEO Marcie Frost was called to serve Jury Duty, but she was ably represented by Dan Bienvenue, Managing Investment Director for Global Equity and Brad Pacheco, Deputy Executive Officer, Communications and Stakeholder Relations. We hope to post the panel discussion, ably hosted by Huntington Beach Mayor Mike Posey, when it becomes available.

Kiff reflects on 20 years of service to Newport Beach City Hall

By HILLARY DAVIS

http://www.latimes.com/socal/daily-pilot/news/tn-dpt-me-kiff-chamber-20180712-story.html

Dave Kiff is a few weeks from retirement as the city manager of Newport Beach and ready to reminisce.

At a “fairly silly but a little bit serious” retrospective Thursday morning at the Newport Beach Chamber of Commerce Wake Up Newport breakfast mixer, Kiff looked back on the 20 years he’s spent with the city, nine as the top appointed official.

He said the leaders that stay or come along after his Aug. 31 departure will want to remember to bring a parking lot to Sunset Ridge Park, to protect the environment and budget conservatively.

He said homelessness is “almost solvable” and Newport could offer jobs, like harbor cleanup, to help people get back on their feet.

He advised city observers to remember that infrastructure investments, such as the repairs funded by the most recent gas tax hike, benefit everybody.

Newport has the resources to keep its roads in good shape, but some nearby cities don’t, Kiff said.

He said to stay concerned about pension debt, “but only the city manager needs to lose sleep over that. The city has a good plan in place to pay down our pension debt faster than almost any other city.”

Kiff said he would miss the leadership of state Sen. John Moorlach (R-Costa Mesa) and outgoing Gov. Jerry Brown. He’ll miss working to solve the challenges that come with being a neighbor of John Wayne Airport, work that he said will only be successful if the city bands together and doesn’t make it a neighborhood-by-neighborhood issue.

There’s plenty he said he won’t miss, like campaign sign enforcement, bridge-jumpers, the fire rings on the beach, the unofficial and at-times contentious “dog beach” near the mouth of the Santa Ana River, coyotes and banner-towing airplanes.

And he had no love for the criticism posted on the social media platform NextDoor and eroding social graces in general.

“One of the reasons I’m not sad to leave is the civility is really suffering — and it’s nationwide,” Kiff said. “Someone just sent an email the other day blasting the City Council for something they had nothing to do with. And I just thought, there was a time when people would think before that and/or pick up the phone.”

He praised Marina and Sunset Ridge parks, the Civic Center Green and park, Oasis Senior Center, Buck Gully Reserve, the city-run animal shelter, the main library — all built or enhanced during his tenure.

He praised the Newport Beach Junior Lifeguards and the local Community Emergency Response Team.

His voice faltered when he thanked colleagues, and it broke when he projected a picture of the name plate outside his office, showing his city manager title.

“The No. 1 thing I’ll miss the most is just being this,” Kiff said, calling the role “the honor of my lifetime.”

After he leaves the city he plans to move to Sonoma County, not far from his family’s farm. In September, he plans to climb Mt. Whitney, the highest summit in the lower 48 states. He’ll spend time with family.

Former Mayor Rush Hill was on the City Council when it chose Kiff as city manager in 2009. He recalled giving the announcement to a standing-room-only audience that spilled into the lobby of the council chambers in the old City Hall.

The crowd responded that night with a standing ovation.

“Ed [Selich, former mayor] forgot that his mike was open and he turned to the councilperson next to him and said, ‘Boy, I’m glad we didn’t select the other guy.’”

https://www.rstreet.org/2018/07/13/calpers-ceo-and-sen-john-moorlach-to-talk-socially-conscious-pension-investing/

CALPERS CEO and Sen. John Moorlach to talk socially conscious pension investing

From OC Weekly:

Last summer, when speaking about the Public Divestiture of Thermal Coal Companies Act authored by his Senate colleague Kevin de Leon (D-Los Angeles), who is now seeking to unseat U.S. Senator Dianne Feinstein (D-California) in November, Moorlach told CalWatchdog.com’s Steven Greenhut that chief investment officers “invest for value and don’t appreciate being hamstrung by legislators who don’t know how to manage a diversified portfolio. I think I’m the only legislator who managed a $7 billion portfolio. And the studies I’ve seen have shown that social investing has produced lower returns.”

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