Buck Financial Blog

Archive for February, 2019

Taxpayers face double jeopardy when it comes to union pensions.

Posted on: February 14th, 2019

Great piece by David Osborne in the LA Times of late January, with more factual insight on the unfunded pension obligation problem.  Most private sector employees have defined contribution retirement plans, not the defined benefit plans that members of the unions enjoy.  Remember that, all you nurses, plummers, construction workers, financial analysts, sales people, and small business owners, etc., when your state comes to you to raise your taxes to fill in the unfunded pension gap!  What this means is that taxpayers are asked to bear the financial risk, not only of their own retirements, but that of public sector employees such as union teachers as well.  Remember that, too, the next time you read about a teacher’s strike.

https://www.latimes.com/opinion/op-ed/la-oe-osborne-charter-schools-20190128-story.html

 

Its this simple: Teachers Unions Fear Losing Monopoly, $$

Posted on: February 11th, 2019

Three cheers for Ray Reinhard’s article in today’s Santa Cruz Sentinel, which says out loud something we all know.  Teachers unions are behind the call for a moratorium on charter school growth, and the call for a Blue Ribbon panel to consider changes to CA’s Charter School Act.  Let’s first draw a distinction between teachers and teachers unions.  What we are talking about here are unions, not the thousands of individuals who show up (almost) every day to try to make a difference (except, of course, when they are on strike).  Unions are concerned about losing their influence (some would say “monopoly”) in public education.  Witness the fact that, during the recent strike in LAUSD, the over 138,000 charter school students and their families were not disrupted at all because thousands of charter school teachers went to work.  That’s a problem for the union, tantamount to requiring their members to “re-up” every so often (which is another subject we should be talking about, but which the unions would rather eat glass than see happen).

Whether charter schools financially hurt traditional school districts isn’t an honest question.  The cause of the financial stress for districts has been pointed out in audits, CAFRs, and rating agency reports for decades, long before charter schools enrolled 10% of K-12 students in CA.  Unfunded pension and other retirement obligations resulting from the defined BENEFIT plans (as opposed to defined CONTRIBUTION such as private sector plans like yours probably is) are why more and more funds are diverted from the classroom in traditional school districts.  These benefits were awarded because many well-intentioned people on both sides of the aisle who sat on school boards knew how disruptive a strike would be.   The disruption would result because there were NO OTHER OPTIONS  for families.  So, they kicked the can down the road for future generations to deal with.  That road is beginning to run out of pavement and is a serious problem.

But a moratorium and a “show-trial” panel won’t fix this problem, nor will removing an important choice for families.  This is about the waning union influence on public education.  This is about money for adults.  What this isn’t about at all is what is best for the students and families, many of who are low-income and disenfranchised, who are helping themselves through a quality education provided by many charters.  The unions would rather see your child languish in a poorly performing school district than lose money or their influence.  For the teachers union, and the politicians who do their bidding, their disingenuousness knows no bounds.

Ray Reinhard | Goodman, Moynihan don’t understand California’s charter schools

California Ford Dealers Call for Moratorium on Chevy Dealers

Posted on: February 2nd, 2019

At the latest meeting of the California Ford Dealer’s Association of California, a resolution was passed calling for limits to be placed on the growth of Chevrolet dealers in the State of California.  “We’ve got to do something to shore up the finances of our Ford franchisees”, CFDACa President Haile Duplicitous was quoted as saying.  Speculation has grown that this moratorium may soon be requested to apply to the actual number of Chevy’s sold in the state, as well.

This action follows similar moves in other industries, such as the effort last year of local Exxon Mobile stations to seek limits on the growth of Shell gas stations.  These calls for restrictions on competition may indicate a growing trend to seek a competitive advantage other than delivering a superior product, noted advertising icon Captain Obvious, who let it slip that Hotels.com was considering a similar request against the website Trivago.

In a related action, on Jan. 29, 2019 the board of the Los Angeles Unified School District, an authorizer of and competitor with charter schools in the LA metropolitan region, called for a moratorium on the growth of charter schools in the state.