Where is the Money Going?
Independent Surgical Centers Accused of Bleeding Millions from Insurance Companies
There is no shortage of explanations about why health care costs in the United States are higher than anywhere else on the planet except the Marshall Islands, but one contributing factor might be questionable billing by outpatient surgery centers like Advanced Surgical Partners in Costa Mesa.
The center charged teacher Lynne Nielsen $87,500 for a 20-minute procedure on her knee that normally runs around $3,000, according to a story in the Los Angeles Times. read more
Chevron Fined Nearly $1 Million for “Willful Violations” in Richmond Refinery Fire
Chevron Corp. was handed 25 citations and fined $963,200 for “willful violations” at its Richmond oil refinery that resulted in a fire that belched gas and black smoke into the air last year.
Since Chevron earned $244 billion in sales and other operating revenues in 2011, it should take the company a little more than two minutes to recoup its potential losses, assuming it actually pays the fine. read more
State Owes School Agencies $1 Billion for Mandated Special Ed Funding It Skipped
Lawmakers regularly assign tasks and responsibilities to agencies or institutions for which they fail to provide proper funding. The rules are broken or in dispute so often that there is a separate government agency, the Commission on State Mandates, that resolves complaints.
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Hundreds of California Government Workers Hold Two Jobs in Same Agency
An estimated 571 full-time, non-union workers in agencies spread across government—many of whom are salaried supervisors—hold dual positions, which allows moonlighting, otherwise restricted overtime pay and other perks.
State data identifies nearly a dozen agencies that allow the double paychecks, including the Department of Corrections and Rehabilitation, where 75 lieutenants also moonlight as sergeants or correctional officers and 55 sergeants double-dip in lesser jobs, too. read more
Department of Forestry and Fire Hid Millions for Years
In the wake of revelations that the California Department of Parks and Recreation had millions of dollars hidden in one of its operating funds, the Department of Finance embarked upon a quick audit of other agencies that turned up $200 million spread here and there.
Last week, the Los Angeles Times added to the count when it wrote about $3.6 million that the auditors missed—and the newspaper found—stashed, at various times, by the Department of Forestry and Fire (Cal Fire). read more
California Cities among Nation’s Best and Worst at Showing Where They Spend Money
California government has gone from crummy to crummier in providing its residents with a clear view of how the state spends its money, but its cities are among the nation’s best and worst, according to a study by the California Public Interest Research Group (CALPIRG). read more
Dodgers’ TV Deal Is Sweet for Them and Time Warner but Not for Viewers
Time Warner Cable subscribers who never watch a minute of sports are likely to see their cable bills go up when the Los Angeles Dodgers finalize a long-term deal for broadcasting their games.
The agreement is expected to net the team $7 billion to $8 billion over 20 years which, if history is a guide, will be paid for with increased subscriber charges. read more
Loose Reporting Laws Let Lobbyists Obscure Where the Money Goes
Millions of dollars are doled out annually to influence public policy in Sacramento, but it is virtually impossible to track how the money for lobbying is being spent despite an array of disclosure laws.
A study by the Sacramento Bee found that interest groups routinely obscure the purpose of spending by their lobbyists—even as they identify the objects of their affection—by lumping many of their expenditures into one big category: “other.” read more
AT&T Landline Rates in California Soar under Deregulation
California median household income peaked at $65,027 in 2007, and then over the next four years it plummeted 11.9% to $57,287 while the cost of an AT&T landline more than doubled. According to the PUC, AT&T landline phone service went from $10.69 per month to $23. That’s for the flat rate. Measured lines that have a fixed rate for low usage but charge for extra use soared 222%, from $5.70 a month to $18.35. read more
State Gives up Millions of Federal Dollars over Disability Center Abuse
The state Department of Developmental Services (DDS), which oversees the Sonoma Developmental Center, announced last week that it has informed the federal Centers for Medicaid and Medicare that ongoing deficiencies at four of the facility’s 10 residential units aren’t going to be fixed in time to maintain required certification. read more
Public Utilities Commission Budget Riddled with Errors amid “General Confusion”
An audit of the California Public Utilities Commission (PUC) budget process by the state’s Department of Finance found “general confusion and lack of knowledge” among management and staff.
The result of expense and revenue miscues in seven fee-supported funds caused the commission to incorrectly project in 2011 that it had $422 million that didn’t actually exist. Most of the mistakes were “found to be unexplainable” by PUC staff. read more
Where Has California’s Housing Inventory Gone?
The good news, according to the Los Angeles Times, was that Southern California housing prices were up 19.6% in December.
The bad news? Prices might be up principally because of a rapid decline in housing inventory fueled by hedge funds and foreign money scooping up properties for cash and renting them out. read more
University of California’s Ambitious Online Class Project Ambushed by Free Stuff
An innovative plan by the University of California to offer online courses at relatively modest prices to people outside the UC system has run into a formidable obstacle—free stuff available from great schools like Harvard and Stanford. read more
A Lot of Happy Governor Brown Budget Tales, but Courts Aren’t Among Them
While Governor Jerry Brown’s proposed 2013-14 state budget was hailed in many government quarters upon its release yesterday, state Supreme Court Chief Justice Tani Cantil-Sakauye had to settle for being “relieved” that it wasn’t much worse for the judicial branch. read more
California Cities and Counties Sue Banks for Rigging Key Interest Rate
Who could have predicted that giant financial institutions would lie about a key benchmark that they self-report on the honor system and is used to calculate the interest rates used by banks loaning money to each other?
Eight California cities, counties and other entities joined a parade of institutional investors this week who claim they were ripped off by major banks through their manipulation of the London Interbank Offered Rate (Libor). read more
Health Insurance Rates Skyrocket in Run-up to Debut of Affordable Care Act
State Insurance Commissioner Dave Jones, speaking at a press conference Tuesday, said he was surprised, angered and stirred to action by the “unreasonable” rate increases, but he has virtually no power to make health insurers hold back on increases. California, unlike 37 other states, does not regulate health premiums. read more