{"id":99676,"date":"2020-01-30T00:01:00","date_gmt":"2020-01-30T08:01:00","guid":{"rendered":"https:\/\/calmatters.org\/?post_type=commentary&p=99676"},"modified":"2020-01-29T08:19:52","modified_gmt":"2020-01-29T16:19:52","slug":"pge-lausd-sfcitycollege-fail","status":"publish","type":"post","link":"https:\/\/calmatters.org\/_ko\/commentary\/2020\/01\/pge-lausd-sfcitycollege-fail\/","title":{"rendered":"Who is too big to fail?"},"content":{"rendered":"

Those to the left of the political centerline often complain \u2014 with good reason \u2014 about using taxpayer funds to bail out large corporations that are insolvent, or nearly so, due to mismanagement.<\/p>\n\n\n\n

The criticism erupted 41 years ago when the federal government\nsaved Chrysler Motors from extinction and was aired again a decade ago when\nChrysler, General Motors and major banks were rescued during a global economic\ncrisis.<\/p>\n\n\n\n

These corporate bailouts gave rise to the phrase \u201ctoo big to fail.\u201d Similar questions are being raised these days about Pacific Gas & Electric<\/a>, the nation\u2019s largest investor-owned utility, which declared bankruptcy a year ago due to immense potential liabilities for devastating California wildfires.<\/p>\n\n\n\n

Whether PG&E survives as a corporation or is forced into\nbecoming a consumer-owned cooperative, as some officials suggest, or a\ngovernment-owned entity is still very uncertain. PG&E\u2019s owners and managers\nmust not, critics say, be rewarded for bad corporate behavior.<\/p>\n\n\n\n

As the PG&E crisis runs its course, some big\ngovernmental entities are also testing whether they are too big to fail.<\/p>\n\n\n\n

One is the Los Angeles Unified School District, which appears on everyone\u2019s list of managerial basket cases. It constantly flirts with insolvency by persistently overspending revenues and looks to Sacramento for bailouts.<\/p>\n\n\n\n

In 2015, for instance, researchers at UC Berkeley concluded that LA Unified had shifted most of the extra money it received to improve the educations of poor and English learner students into general purposes, such as salary increases.<\/p>\n\n\n\n

A coalition of local civil\nrights groups complained to the state Department of Education, which ruled that\nLA Unified was wrongly diverting funds and ordered it to redirect nearly a\nhalf-billion dollars to the required purposes.<\/p>\n\n\n\n

Did LA Unified change its ways? Of course not.<\/a><\/p>\n\n\n\n

A \u201crealignment exercise,\u201d\nblessed by state education officials, allowed LA Unified to recategorize\nexpenditures to make them legal, just changing some computer codes without\nactually changing what it was doing. It was an under-the-radar bailout that\nshortchanged hundreds of thousands of children at high risk of educational\nfailure.<\/p>\n\n\n\n

Another example is the San Francisco Community College District.<\/p>\n\n\n\n

In 2012, the Accrediting Commission for Community and Junior Colleges\ngave the City College of San Francisco\neight months to prove it should remain accredited, citing multiple managerial\nand financial shortcomings, and ordered it to \u201cmake preparations for closure.\u201d<\/p>\n\n\n\n

That same year, the state\u2019s Fiscal Crisis &\nManagement Assistance team declared the college to be in a \u201cperilous financial\nposition,\u201d caused largely by \u201cpoor decisions and a lack of accountability.\u201d<\/p>\n\n\n\n

The local political response was a denunciation of the critical authorities and eventually, a  bailout slipped into a state budget \u201ctrailer bill,\u201d giving the district tens of millions of extra dollars to close its persistent deficits. Local voters also approved new \u201cparcel taxes\u201d on property.<\/p>\n\n\n\n

Although it regained its\naccreditation for seven years, the district has not mended its profligate ways,\nconsistently using unrealistically high enrollment and revenue to generate\nbudgets that are balanced only on paper.<\/p>\n\n\n\n

Recently, an auditor hired by the district<\/a> raised \u201csubstantial doubt about its ability to continue as a going concern,\u201d after discovering that it spent nearly $14 million more than it took in during the 2018-19 fiscal year, had been deficit spending for at least three years, and had allowed its reserve to fall below the 5 percent threshold required by the state and the accrediting commission.<\/p>\n\n\n\n

Too big to fail? We may soon learn whether there will be another bailout or the district will suffer the self-inflicted indignity of a state takeover of its finances.<\/p>","protected":false},"excerpt":{"rendered":"

Which troubled institutions are too big to fail. Pacific Gas & Electric? Los Angeles Unified School District? City College of San Francisco?<\/p>","protected":false},"author":73,"featured_media":97061,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"_stopmodifiedupdate":false,"_modified_date":"","newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","apple_news_api_created_at":"2020-01-30T17:53:54Z","apple_news_api_id":"9640bf8a-44f8-4ab4-b68b-208a34400c11","apple_news_api_modified_at":"2020-01-30T17:53:54Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/AlkC_ikT4SrS2iyCKNEAMEQ","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"_spanish_translation_id":0,"_is_translation":false,"_newspack_byline_active":false,"_newspack_byline":"","newspack_content_restriction_is_exempt":false,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[58,63],"tags":[40117],"legislator":[],"bill":[],"newspack_spnsrs_tax":[],"coauthors":[4174],"class_list":["post-99676","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commentary","category-dan-walters","tag-commentary","entry"],"acf":[],"apple_news_notices":[],"yoast_head":"\nWho is too big to fail? - CalMatters<\/title>\n<meta name=\"description\" content=\"Which troubled institutions are too big to fail. 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He began covering California politics in 1975, just as Jerry Brown began his first stint as governor, and began writing his column in 1981, first for the Sacramento Union for three years, then for The Sacramento Bee for 33 years and now for CalMatters since 2017. Dan is also the author or co-author of two books about California, \u201cThe New California: Facing the 21st Century\u201d and \u201cThe Third House: Lobbyists, Money and Power in Sacramento.\u201d He is a frequent radio show guest and occasionally appears on national television, commenting on California issues. Walters began his career in 1960 at the Humboldt Times in Eureka, California, a month before his 17th birthday, first as a newsroom aide and later as a police beat reporter. Having found his calling, he not only turned down a National Merit college scholarship but dropped out of high school, lacking one required class \u2013 ironically civics \u2013 to qualify for a diploma. Before moving to Sacramento to cover politics, he was the managing editor of three small daily newspapers. He has two adult daughters and three grandsons.","sameAs":["https:\/\/x.com\/DanCALmatters"],"birthDate":"1943-10-10","gender":"Male","jobTitle":"Columnist","worksFor":"CalMatters.org","url":"https:\/\/calmatters.org\/_ko\/author\/dan-walters\/"}]}},"parsely":{"version":"1.1.0","canonical_url":"https:\/\/calmatters.org\/_ko\/commentary\/2020\/01\/pge-lausd-sfcitycollege-fail\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Who is too big to fail?","url":"http:\/\/calmatters.org\/_ko\/commentary\/2020\/01\/pge-lausd-sfcitycollege-fail\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/calmatters.org\/_ko\/commentary\/2020\/01\/pge-lausd-sfcitycollege-fail\/"},"thumbnailUrl":"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2020\/01\/081219_Capitol_AW_sized_02.jpg?resize=60%2C60&ssl=1","image":{"@type":"ImageObject","url":"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2020\/01\/081219_Capitol_AW_sized_02.jpg?fit=2000%2C1277&ssl=1"},"articleSection":"Dan Walters","author":[{"@type":"Person","name":"\ub304 \uc6d4\ud130\uc2a4"}],"creator":["Dan Walters"],"publisher":{"@type":"Organization","name":"\uce7c\ub9e4\ud130\uc2a4","logo":"https:\/\/calmatters.org\/wp-content\/uploads\/2019\/07\/calmatters-logo_2x.png"},"keywords":["commentary"],"dateCreated":"2020-01-30T08:01:00Z","datePublished":"2020-01-30T08:01:00Z","dateModified":"2020-01-30T08:01:00Z"},"rendered":"<meta name=\"parsely-title\" content=\"Who is too big to fail?\" \/>\n<meta name=\"parsely-link\" content=\"http:\/\/calmatters.org\/_ko\/commentary\/2020\/01\/pge-lausd-sfcitycollege-fail\/\" \/>\n<meta name=\"parsely-type\" content=\"post\" \/>\n<meta name=\"parsely-image-url\" content=\"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2020\/01\/081219_Capitol_AW_sized_02.jpg?resize=60%2C60&ssl=1\" \/>\n<meta name=\"parsely-pub-date\" content=\"2020-01-30T08:01:00Z\" \/>\n<meta name=\"parsely-section\" content=\"Dan Walters\" \/>\n<meta name=\"parsely-tags\" content=\"commentary\" \/>\n<meta name=\"parsely-author\" content=\"Dan Walters\" \/>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/calmatters.org\/p.js"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2020\/01\/081219_Capitol_AW_sized_02.jpg?fit=2000%2C1277&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/posts\/99676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/users\/73"}],"replies":[{"embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/comments?post=99676"}],"version-history":[{"count":4,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/posts\/99676\/revisions"}],"predecessor-version":[{"id":99778,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/posts\/99676\/revisions\/99778"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/media\/97061"}],"wp:attachment":[{"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/media?parent=99676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/categories?post=99676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/tags?post=99676"},{"taxonomy":"legislator","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/legislator?post=99676"},{"taxonomy":"bill","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/bill?post=99676"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=99676"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/coauthors?post=99676"}],"curies":[{"name":"\uc6cc\ub4dc\ud504\ub808\uc2a4","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}