Free Republic

As Governor Gray Davis begins his 2nd term, he faces a host of problems. One in particular that is likely to be among his greatest challenges - yet to date has received limited attention -- is reform of the California Public Employees' Retirement System (CalPERS). CalPERS is the nation's largest pension fund. In keeping with what Smart Money described as "the nation's most formidable force in shareholder activism," it has a reputation of being an international corporate governance watchdog, using its weighty economic clout to impose its will on large and small companies alike. Yet due to the Davis...

<p>Life had been so golden in California during the boom-boom years of Silicon Valley's expansion. Every click of new technology morphed into Yellowstone-sized geysers of revenues, as state coffers overflowed with capital gains and income taxes. The state reduced motor vehicle license taxes, downsized classes in lower elementary school grades, expanded health-care benefits for the poor and increased spending on general government services.</p>

Controller urges swift budget action State Controller Kathleen Connell is warning the Legislature that the governor's recently revised budget forecast will require immediate action to ensure that the state can meet its obligations in the current year. "If the governor's recently revised revenue projections are realized, the state will almost certainly need to issue a second consecutive year of revenue anticipation warrants by May 2003 to enable the state to fulfill its financial obligations," Connell said. "Limited available credit capacity and a serious concern among credit providers regarding the state's ability to repay a RAW issuance will prevent California from...

Millions involved; no laws broken SACRAMENTO - Newly released documents from the nation's largest pension fund show board members voted to invest $760 million with a company after its founder gave several of them more than $25,000 each in campaign contributions. Ronald Burkle, who worked his way up from a grocery bagger at 13 to run the nation's largest supermarket company, has given more than $2 million in political contributions - mostly to Democrats - in recent years. During that time, he's traveled on national trade missions with Cabinet members, hosted heads of state at his historic Beverly Hills mansion,...