While this week’s municipal bankruptcy news focuses on Detroit, where a judge has just ruled the city can proceed with its bankruptcy filing, tonight a small California city holds a council meeting to try to avoid the same fate.

Desert Hot Springs isn’t on the national radar, but its situation is hardly unique. With only 27,000 residents and only 55 full-time city employees, Desert Hot Springs lacks the financial heft that allows larger cities – think Los Angeles – to put off their day of reckoning.

If you review the city council’s meetingagendafor December 3rd, 2013, you will see item 5, “Budget and Financial Update – Fiscal Year 2013/14.” Clicking on that link will open a window containing links to five exhibits that constitute the most recent financial projections for the city for their current fiscal year ending 6-30-2014. And as can be seen from the one-page summary document, Exhibit 2, “… Read More

Back in September, I wrote a letter to the Franchise Tax Board’s Chief Counsel requesting a legal opinion on the potential tax consequences for a California resident who completes a short sale under existing California law.

I am pleased to announce that the Franchise Tax Board will follow the lead of the Internal Revenue Service and not impose a tax penalty on Californians who have sold their home via a short sale. In her response, FTB Chief Counsel Jozel Brunett stated “Since California… Read More

The voters of the 45th Congressional District have been able to observe my leadership style for more than eighteen years. I directly represented the District for some twelve years, and indirectly for the last seven years. Although it is not my customary style to use the pronoun “I” repeatedly, this is an opportunity to remind the voters of just a few of my accomplishments while serving the County in my years as a County elected official.

*I did not accept public employee union contributions for my Supervisorial campaigns, long before it was popular to demand that conservative candidates not accept such contributions. I knew it was a major conflict of interest.

*I have been addressing public employee defined benefit pension reform long before it manifested itself into the massive debt issue that it is at every level of government. I knew it would become a major fiscal concern and tried to warn elected officials about the negative repercussions of adopting enhanced defined benefit formulas.

*I warned the County of Orange that Treasurer-Tax Collector Robert Citron’s investment strategy would implode if interest rates rose. Rates did rise and the… Read More

[Editor’s Note: We are pleased to offer this original commentary from Doug Lasken. As with all submissions, this piece represents Lasken’s views and not the website.]

Almost like a Hanukkah or early Christmas present, Politico.com last week posted, “CNN poll: Good news for Republicans in 2014 midterms”, which relates that, per the most recent CNN/ORC poll, “Republicans are gaining ground heading into the 2014 midterms.” The poll, conducted last week and released Tuesday, 12/26 shows “…a dramatic turnaround in the party’s standing among voters.”

The article elaborates: “Democrats a month ago held a 50%-42% advantage among registered voters in a generic ballot, which asked respondents to choose between a Democrat or Republican in their congressional district without identifying the candidates…But the Democratic lead has disappeared. The new poll indicates the GOP now holds a… Read More

Anti-Walmart protestsstruck across Californiaand the rest of America on Black Friday. The protesters demanded that the giant retailer pay its worker higher wages and benefits.

As part of the protests, Robert Reich is pushing apetitionon Facebook. The former… Read More

Pop quiz. Which of the following statements is true? A. California High speed rail (HSR) will allow riders to travel between Los Angeles and San Francisco in about two and a half hours for $50. B. The total cost of HSR will be about $40 billion. C. About half the cost of HSR will be picked up by the private sector and the federal government. D. If you like your plan you can keep it.

If you answered none of the above, you are correct and probably good at spotting misinformation put out by the political class to manipulate public opinion.

The first 3 statements come from arguments by those who supported Proposition 1A, or, as it was called, the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, which appeared on the ballot in 2008. Using rosy estimates of short travel times at low cost, along with several million dollars provided by labor unions to get the message out, promoters of Proposition 1A convinced voters to approve a $10 billion bond. It also helped that the glowingly positive ballot title and summary, which are supposed to be objective and are usually written by the attorney general, were prepared by members of the Legislature who… Read More