We’ll talk with David Crane about his newly formed group called Govern CA, it’s philosophy and intention, and its chances for success.
Check out his writing at DavidGCrane.org, showcasing a plethora of penned editorials.
To read what others are writing about David Crane, here are a few stories:
The importance of the first item – underreporting the size of debt – was illustrated when Lehman Brothers and AIG used aggressive but legal accounting techniques to underreport debt, thereby encouraging uninformed investors to enter into a web of transactions with them that later threatened the world financial system. A similar occasion took place in 1999, when California’s pension funds used aggressive but legal accounting techniques to underreport pension debt in order to show they were overfunded and thereby coax a huge and unfunded pension benefit increase from an uninformed state Legislature. But as Munnell illustrated in a 2010 report, California’s pension funds were actually underfunded in 1999. The cost of that unfunded pension increase has since diverted billions from education and social services, and bigger diversions are on the way.
Viewpoints: State finance officials should face the truth on pension promises
• The state’s pension debt is greater than the state reports.• The state is counting on unlikely investment returns to meet that debt.• Because those returns are unlikely, state pension costs are likely to soar. Read more here
Chapter 4: Bond Holders Seek Governmental Transparency
Taxpayers may be on the hook nationwide for more than $2.5 trillion in pensions, according to David Crane, an economic advisor to former Gov. Arnold Schwarzenegger, with perhaps $500 billion of that in California alone.
“State and local governments utilize a misleading method for reporting the size of public pension obligations,” said Crane, calling it “the Alice in Wonderland world of government pension accounting that allows governments to hide liabilities.”
“California wasn’t alone in this regard,” Crane told the SEC. “Unrealistic reporting of pension promises is a systemic problem. That’s why the SEC must require realistic accounting of public pension promises. For that to happen it must insist upon a realistic discount rate when reporting pension liabilities.”
Roberts is a contributing editor to Calwatchdog and a long-time Bay Area newspaper reporter.
Read more here.
“UC regent Crane ousted for telling hard truths about pensions
Posted on December 29, 2011 by admin
Editorial | San Francisco Chronicle — David Crane is not the most popular man in Sacramento. In fact, his determination to tell legislators what they don’t want to hear – yet need to hear – is about to cost him his position as a University of California regent.” Continue reading . . .
So Crane, a Democrat, and fellow big-time investors Ronald Conway, a Republican, and Gregory Penner, registered Decline-to-State, have set up an organization, Govern for California, to help finance candidates that they think will take the steps needed to confront California’s problems.
Crane insists that the plan is not to elect moderate or centrist candidates but rather “courageous” candidates. Depending how one defines those terms, some may find that is a distinction without a difference.
Crane explains the candidate his group is looking for. “Our number one priority is higher quality people who are intelligent, who are numerate.
“We’ll spend what it takes. These elections don’t cost as much as the power they get. The bang for the buck is really great. It’s like if you find a good company you like, you’ll buy more of the stock.”
Crane says his group’s successful involvement in only a few races will make a great difference in the way California is governed. Click here to read more.
Former Schwarzenegger adviser renews call for pension reform
Posted on November 17, 2011 by admin
Hasta La Vista, Failure
By Joel Kotkin
Editor of NewGeography.com and Presidential fellow in urban futures at Chapman University
Friday, December 17th, 2010
Traditionally California Republican governors focus on the hoary economic fundamentals. But Schwarzenegger’s main economic advisor, San Francisco investment banker David Crane, has clung to the notion that California’s creative skills would allow the state to flourish amid “creative destruction.” Click here to read more