One of the growing trends in California's era of economic recklessness has been the proliferation of local bankruptcies, often driven by the excessive legacy costs of public workers. As might be expected, the state's public-sector unions, perceiving a threat to their benefits, have been anxious to insulate themselves as much as possible from the fiscal pruning that accompanies these procedures. That's why last year organized labor got behind AB 506, a measure that requires "neutral evaluation" by a mediator for 60 days before a city can seek full bankruptcy protection (unless the city declares a fiscal emergency). The hope, of course, is that the evaluation process will lead to fewer union perks being gutted by reeling cities.
Yesterday, Wisconsin governor Scott Walker toured the state, touting new numbers that show savings of over $1 billion since he implemented collective bargaining changes for state and local government employees. Last year, Walker signed a new law requiring government employees to begin making contributions toward their own pension accounts, and increasing the amount government workers must pay for health insurance, to 12.6% of their premium. He now faces a recall election as a result of opposition to the law by public employee unions.
The California Redevelopment Association, the organization that represents government officials who were best known for abusing eminent domain and sending subsidies to big-box retail stores in the name of "redevelopment," has announced that it is closing its doors. Hooray! Government redevelopment agencies across the state likewise are closing their doors. So, yes, it's possible for life to go on with a smaller public sector. Here are excerpts from the sour-grapes letter from CRA President and Alhambra City Manager Julio Fuentes and CRA Interim Executive Director Jim Kennedy (he is interim, because the executive director, John Shirey, saw the hand-writing on the wall and jumped ship):
When the California Teachers Association, the powerful union that is the Golden State's most influential special interest, says "jump", the Democrats who control Sacramento consistently ask "How high?" So it was last year, when the CTA got its legislative allies to muscle through a bill preventing teacher layoffs for the coming year and requiring union approval of furloughs aimed at addressing the state's crippling budget crisis. How did the legislature pass such an obvious giveaway without intense media scrutiny? Simple. They didn't make it public until an hour before the vote.
Last year, when Wisconsin Governor Scott Walker enacted his plan requiring public employees to pay more towards their own pension and health benefits, he offset that new revenue with state aid cuts to local school districts. Some districts, sensing Walker would change their benefit payment structure, renegotiated their contracts in order to "Walker-proof" their benefits. Yet, while their benefits remained virtually intact, the state aid cuts hit hard, forcing teacher layoffs in the districts that tried to contradict Walker's plan.
education. It has 280,000 undergraduates--four times more than the entire Ivy League. The system includes 17 senior and community colleges. The administration, led by Chancellor Matthew Goldstein, has proposed a general-education curriculum plan, called 
