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Recent Research and Commentary

Red-Light Cameras and the Enigmatic Jerry Brown

February 6, 2012, 4:39pm

Harris Kenny

Kevin Fagan of the San Francisco Chronicle reports, "California has the most expensive red-light camera tickets in the world... The Legislature passed two bills in the past two years that would have reduced the fine or limited the cameras' use, but both were vetoed." The larger storyline that can be teased out of this article is where California Gov. Jerry Brown stands on the issue of state versus local control.

California Bill Proposes Licensing for Pet Groomers

February 3, 2012, 5:14pm

Adam Summers

It appears that California truly has gone to the dogs. The state is facing a $9.2 billion budget deficit, a $10 billion unemployment insurance fund deficit, and unfunded pension obligations in the range of $400 billion to $500 billion, yet the busybodies in the state legislature are seeking to add another occupation to the long list of those burdened by unnecessary state regulation: pet grooming.

San Francisco Chronicle: California running out of money again

February 1, 2012, 6:52pm

Harris Kenny

Wyatt Buchanan of the San Francisco Chronicle reports: "California will run out of cash by March 1 if the Legislature does not take immediate action, Controller John Chiang told budget leaders at the Capitol in a letter Tuesday."

Jerry Brown Continues to Push High-Speed Rail Boondoggle while California Drowns in Debt

January 27, 2012, 2:59pm

Adam Summers

Considering that cost estimates have soared from between $40 billion and $45 billion a couple of years ago to between $98.5 billion and $117.6 billion now, and ridership estimates have plummeted from 117 million passengers per year by 2030 to between 23 million and 34 million per year by 2035, while the state is running a $9.2 billion budget deficit, a $10 billion unemployment fund deficit, and an unfunded pension liability in the range of $400 billion to $500 billion, pushing forward with the high-speed rail project is unconscionable and incredibly irresponsible. Yet Governor Jerry Brown is trying to move ahead with the project at the same time he is pushing a $35 billion tax increase.

Time to Face Reality on the California High-Speed Rail Project

Cost estimates keep soaring but Gov. Brown keeps pushing the rail system
January 27, 2012

Adam Summers

Several recent events have thrown some cold water on the dreamers who seem to view the California high-speed rail project as the solution to all of the state’s problems. Unfortunately, this has not dissuaded them from pushing for the project to go full speed ahead. 

The cracks in the high-speed rail project continue to grow into deep chasms. California High-Speed Rail Authority (CHSRA) CEO Roelof van Ark recently announced he is going to resign, although he said he may then stay on the project and profit as a consultant, of course. A December 2011 Field Poll revealed that, by a two-to-one margin, voters oppose the California high-speed rail project and would like to re-vote on it. There was a pair of recent state and federal legislative hearings that were highly critical of the project. And there is the matter of the revised high-speed rail business plan, which now projects costs of $98.5 billion to $117.6 billion—compared to the $40 billion to $45 billion estimate issued less than two years ago. 

To supporters of high-speed rail, the soaring cost estimates and other problems may be a rude awakening but California must acknowledge reality if it is to tackle its monstrous budget problems and return to any semblance of fiscal responsibility. 

California’s Employment Dysfunction

January 23, 2012, 4:54pm

Harris Kenny

The Bay Area Council Economic Institute recently published a report that offers substantive solutions for the Golden State that show another economy is possible if policymakers are willing to partner with the private sector.

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