Tag Archives: Little Hoover Commission

The Big Lie at the Little Hoover

How far do you have to get into the Little Hoover Commission report on pension reform to start questioning its results?

How about the graph on page ii that shows the percentage of funding of major pension funds in California.

It looks pretty bad, but then when you look closely, the numbers just don’t look right.

CalPERS, the last time I looked, had around 230 billion dollar invested in a broad portfolio of assets, but the handy chart that shows that CALPers is only 61% funded has a value on the graph that looks like it’s around 180 billion.

A quick check of the footnotes shows that the chart was based on numbers from the end of the fiscal year 2008-2009, not the most recent fiscal year.

How important is that?

Well, the value of CALPers investments as of June 30th, 2009 was $178.9 billion. By the date that the Little Hoover report was released, that number had increased by 50 billion dollars. Even using numbers from the end of FY 09-10 would have been much more honest, but the rebound from market bottoms is only mentioned in passing in the body of the report.

This is not a trivial difference, and CALPers is not unique in posting large gains since the market bottom. CALStrs is the second largest pension fund in the state and covers teachers and community college professors. Since March 2009, when markets bottomed after a global financial Great Recession, the CalSTRS investment portfolio has rebounded by more than $34.8 billion to $146.4 billion.

Little Hoover = Big Lie.

More on this later.

California Water System is Broken

I don’t often use one blog to hype another.  Tonight, I will make an exception.  I posted a longer item at California Greening today that considers just what is failing to happen regarding water in this state.  While, as you might guess, I see the current legislature incapable to taking the action necessary to fix our problems and really see this as an opportunity for Greens, or at least Green ideas on ecology.

The whole post is below the fold.  

California’s water systems are broken. In some cases, it is the physical system such as the long delayed upgrade and seismic retrofit of the Hetch Hetchy Aqueduct or the many miles of threatened levees in the Sacramento – San Joaquin River Delta. But mostly, it is the bureaucratic process by which water is governed, metered out, charged for and frequently fought over.

California’s Little Hoover Commission has previously issued reports on water. The most recent, in January 2009 was Clearer Structure, Cleaner Water: Improving Performance and Outcomes at the State Water Boards. It’s conclusions start with the recognition that California has an outdated system for dealing with a raft of threats to clean water, a crumbling infrastructure and a growing demand. Their solution involved a total re-structuring of the system of State and Regional Water Control Boards making them appointed by and responsible to the Governor.

Following that, the Commission has taken on the challenge to change the total governance of water in California beginning with a new hearing that was held April 23, 2009 in Sacramento. At that hearing, Phil Issenberg, Chairman of the Delta Vision Foundation, testified that the sum total of documented water rights in California is 8.4 times the average water flow through the Delta.

Even if the State Legislature were willing to undertake the task of reforming water governance, no matter what they decide to do, someone will challenge it in court. California’s bureaucracies have some 200 different agencies and boards involved in the process of managing our water resources.

Much of the power over water use is devolved into a long list of local water districts, each with it’s own set of directors and regulations. As far as I know, there are only four greens on any of these water district boards in the State of California. If there is any office that may be attainable, and which might have a long lasting effect on life in California, it is that of Director of a Water District.

The Green Party of the United States recently passed a resolution (#380) that outlines a new process of dealing with water issues. While Resolution authorizes action by the EcoAction Committee, GPUS, this will not happen without Greens everywhere becoming involved. We must all become active participants in solving California’s problems.

We have seen that the California State Legislature is incapable of coming to any hard decision regarding anything of importance. If they can not enact a budget on time, how will they be able to deal with the restructuring of priorities between Central Valley Agriculture and Southern California urban users.

The problems associated with water, it’s management and it’s governance in California cry our for Green solutions. California needs the active involvement of Greens who will take bioregional approaches to the management of water sheds, who will involve the public in the decision making rather than relying on entrenched bureaucracies and special interests to determine our future.

Join the GPCA and the GPUS EcoAction Committee in creating fundamental change. EcoAction is setting up The Green Party Water Works, a public blog where we will focus attention on bioregional solutions and water governance.

That is one place to start. Another is to contact local Green Party councils and to tell them that you are willing to help protect California’s future. It is clear that neither major political party is going to do that.

Wes Rolley – CoChair: EcoAction Committee Green Party US

Nunez Announces Redistricting Plan

Frank Russo has all the details about Fabian Nunez’ redistricting proposal announced today.  (It’d be nice if the Speaker would come around and announce it on this site himself, but hey, we do what we can.) Essentially it puts redrawing the state boundaries in the hands of the Little Hoover Commission, minus the legislators that normally sit on that panel.  This would have to go before voters as an initiative once it passes the legislature with a 2/3 vote (it’s a Constitutional amendment).

EDIT by Brian: The initiative that went our for signatures is not the same as ACA1, which the Speaker discussed yesterday. I discussed ACA 1 very briefly when the changes were first announced yesterday. Check out California Progress Report for more.

Without the lawmakers, the Little Hoover Commission includes 4 citizens appointed by the legislature and 5 citizens appointed by the governor.  Seven panel members would have to agree for a plan to move forward.

The Little Hoover Commission has a decent enough reputation as an independent study group; their report on California’s corrections crisis was well-done.  I’m a bit wary of subjecting district shapes to be subject to referendum, it seems to invite an endless series of low-information elections.  And overall, I don’t think redistricting geographically will have as massive an impact as everybody thinks.  People largely gerrymander themselves.

But there you have it, and I’ve seen worse plans in my life.  I ultimately believe that two candidates with the same basic money pool can overcome any gerrymander thrown at them, which is why I think that election reform begins and ends with public financing.