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Recent Research and Commentary

Worse Than Taxes

The real burden of government is the spending level
November 19, 2009

John Stossel

Hidden taxes are more pernicious because they disguise what we pay for government. We blame merchants, not our legislators, for the high price of gasoline, liquor, cigarettes, and phone calls, but the money goes to the political thieves.

CA Treasurer Says Public Pensions Will 'Bankrupt' State

November 4, 2009, 8:29pm

Adam Summers

California, like many other state and local governments, is being held hostage by its employee labor unions. The state's labor costs are too high and its unions too powerful. . . . Even with significant reform, such as a shift to a 401(k)-style defined contribution retirement system comparable to benefits received in the private sector for all new employees, it will take California many, many years to recover from the past and present costs of state employee compensation (if, indeed, it is ever able to recover). Without it, the state will be doomed to perpetual budget crises and broken government.

California to Send 2,300 More Inmates to Out-of-State Private Prisons

November 3, 2009, 12:43pm

Leonard Gilroy

California has amended its contract with private prison provider CCA to increase the total number of contracted out-of-state prison beds by an additional 2,300 as part of the state's strategy to get a grip on its prison capacity crisis

State Governments Face Deficits and Fiscal Trouble Because of Spending

From 2002 to 2007, state spending rose 50 percent faster than inflation
April 9, 2009

Adam Summers, Michael Flynn

From 2002 to 2007, overall spending rose 50 percent faster than inflation. Education spending increased almost 70 percent faster than inflation, even though the relative school-age population was falling. Medicaid and salaries for state workers rose almost twice as fast as inflation.

California's Spending by the Numbers

A Historic Look at State Spending from Gov. Pete Wilson to Gov. Arnold Schwarzenegger
February 18, 2009

Adam Summers

Since 1990-91, California's spending has skyrocketed 181 percent, from $51 billion in FY 1990-91 to $144 billion in FY 2008-09. Politicians often blame falling revenues for California's budget woes, but state revenues jumped 167 percent between 1990 and 2008. If California had simply limited its spending increases to the 4.38 percent average increase in the state's consumer price index and population growth each year since FY 1990-91, the state would be sitting on a $15 billion surplus right now.

The California High-Speed Rail Proposal: A Due Diligence Report

Policy Study 370
September 1, 2008

Joseph Vranich, Wendell Cox, Adrian Moore

With the high costs of building in California and the history of cost overruns on rail projects, the final price tag for the complete high-speed rail system will actually be $65 to $81 billion, according to the Reason Foundation report.

And while the Rail Authority forecasts between 65 and 96 million intercity riders by 2030, the due diligence report finds these projections are dramatically inflated. After compiling numerous ridership studies previously conducted for California rail systems, the study demonstrates the state can expect 23 million to 31 million riders a year in 2030.

Any failure to meet the Rail Authority's lofty ridership projections would force ticket-price increases, further cutting ridership, or require taxpayer subsidies to cover the financial shortfall, adding to future budget deficits. The due diligence report finds "the San Francisco-Los Angeles line alone by 2030 would suffer annual financial losses of up to $4.17 billion."

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