Daily Business Report-Feb. 23 2018
Retirement Debt: What’s the Problem
and How Does it Affect You?
California’s retirement debt for public employees — both pensions and health care — is one of the most complicated, contentious and important issues for the state’s future. CALmatters fiscal reporter Judy Lin prepared an explainer to help you understand it. How big is the problem? The unfunded liability is now about $400 billion — if state assumptions are right. That’s more than $10,000 from every Californian.
By Judy Lin |CALmatters
Across California, the cost of retirement benefits for public employees remains untamed. The total cost to state and local governments as well as schools and colleges has more than tripled since 2003 — and projections indicate the burden in coming years will continue to grow.
Payments for public employee pensions and retiree health care benefits are putting so much pressure on government budgets that many are having to choose between service cuts and raising taxes. Gov. Jerry Brown has called the issue a “moral obligation” and the association of California cities now predicts that the growth will be “unsustainable.”
It’s an important issue to understand for the state’s future, but it’s also highly political and controversial. Labor unions and budget watchers debate the magnitude of the problem. And precision isn’t always possible when projections are based on estimates or assumptions.
CALmatters recently took an in-depth look at what we know and don’t know about retiree debt, working on the topic in collaboration with the Los Angeles Times and Capital Public Radio. Here are the highlights of what we’re learning, based on a comprehensive look at key data sources and perspectives from experts and advocates.
We encourage any feedback or commentary — we’ll investigate your comments and add updates as appropriate. Our goal is to offer a trustworthy source of information about this important issue.
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Convention Center Shows Off Colored
Lights that Illuminate New Fabric Roof
The San Diego Convention Center debuted its newest feature on Wednesday: LED colored lights that illuminate the newly renovated iconic fabric roof. The lights change colors and are visible across the Downtown area: from the Gaslamp Quarter to Coronado Bay, and especially to visitors flying in on their way to the San Diego International Airport.
The light fixtures are the same as those used to light the Empire State Building in New York City.
“This is a very difference space than it was when it opened in 1989,” said Executive Vice President and General Manager Karen Totaro. “I am proud of the entire team. It took hundreds of people – from our internal staff to our partners – working collaboratively in this effort including BirdAir, ProCal Lighting, Siemens and Kinsman Construction, just to name a few.”
The lights are the “icing on the cake” of the newly remodeled exhibit space, one of the most unique spaces in the conventions and meetings industry. The 90,000 square foot venue recently underwent a $16.7 million renovation, part of the largest series of upgrades in the Convention Center’s history.
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Glendale-Based Bank to Merge Into
San Diego’s Bank of Southern California
Bank of Southern California in San Diego and Americas United Bank (AUNB) in Glendale have signed a merger agreement in a transaction valued at $44.1 million based on Bank of Southern California’s stock price per share of $14.75. Under the agreement, AUNB will merge into Bank of Southern California.
Bank of Southern California currently operates eight locations in San Diego County, the Coachella Valley in Riverside County, and Orange County. Americas United Bank has four branches located in the greater Los Angeles area.
“The combined bank offers a highly attractive franchise for us in the very desirable Los Angeles market and furthers Bank of Southern California’s vision of expanding our market share in Southern California,” said Nathan Rogge, president and CEO of Bank of Southern California in a statement
“Americas United Bank is a well-managed community business bank with a strong relationship banking culture, making it a great fit for us.”
Rogge will continue in his current position as will members of the executive management team at the San Diego-based bank. Adriana M. Boeka, president and CEO of AUNB,, will join Bank of Southern California’s board of directors as a non-executive director.
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Qualcomm Makes Another Pitch
for Shareholders to Reject Broadom’s Nominees
Qualcomm continues to make its pitch against Broadcom’s $117 billion hostile takeover, telling shareholders Thursday that the Broadcom buyout price remains too low and the proposal is fraught with regulatory risk.
In a letter to shareholders, Qualcomm’s board of directors said Broadcom refuses to engage in discussions about paying more for Qualcomm – calling its current offer “best and final.”
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Scripps Clinic Chief Receives Health
Professional Volunteer of the Year Award
, head of the division of dermatology at Scripps Clinic, has received the Health Professional Volunteer of the Year award from the National Psoriasis Foundation (NPF).
The NPF recognized Dr. Gilbertson for his outstanding work in helping psoriatic patients achieve better health outcomes, as well as for supporting the search for a cure for psoriasis. He was nominated by patients and colleagues and selected by a committee of NPF medical board members.
A resident of Del Cerro, Gilbertson received the honor at a special NPF reception held in conjunction with the American Academy of Dermatology’s annual meeting in San Diego earlier this month.
Gilbertson has volunteered with the NPF for the past 22 years. His service includes speaking at free NPF educational events such as More Than Skin Deep, where patients can learn about the latest research and treatment options.
As chief of dermatology at Scripps Clinic Rancho San Diego, Gilbertson diagnoses and treats skin cancer, acne, psoriasis, eczema, vitiligo and other skin disorders. He is also actively involved in clinical research studies for new psoriasis treatments.
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Magistrate Judge David H. Bartick
Succumbs to Brain Cancer
Magistrate Judge David H. Bartick of the Southern District of California died on Feb. 18, 2018, after a long battle with brain cancer. He was 59.
Judge Bartick was appointed as a magistrate judge in the Southern District of California on April 2, 2012.
Prior to that, he was a criminal defense attorney who litigated some of the most complex cases to be prosecuted in both state and federal courts. These cases included “Operation Casablanca,” the largest money laundering case to be prosecuted in the United States, the “A’s Bandit Case,” the largest bank robbery case ever prosecuted in the Southern District of California, and the “Russian Boat Case,” which was one of the largest maritime drug seizures in the United States.
Judge Bartick also represented Francisco Javier Arellano Felix, the notorious drug cartel leader, in one of the first federal death penalty prosecutions in the Southern District of California. He was able to negotiate a plea deal in which the government agreed not to pursue the death penalty in exchange for his client accepting a life term.
Born in Los Angeles on April 28, 1958, and raised in Orange County, Judge Bartick graduated from UC Berkeley with a double major in political science and psychology in 1980. An intercollegiate letterman on the boxing team, he qualified for the Olympics but was unfortunately unable to compete because the United States boycotted the 1980 Summer Olympics in Moscow.
Senior U.S. District Judge Jeffrey T. Miller, who presided over the “Russian Boat” case, remembers Judge Bartick as the consummate gentleman, both as an exceptional criminal defense attorney and as a magistrate judge. He recalls how all the elements of the bar celebrated Judge Bartick’s appointment to the federal bench and how quickly he earned a well-deserved reputation for an exemplary temperament and superior judicial skills.
Judge Bartick is survived by his wife Terry and his two children, Brian and Jenn. They were all with him when he passed away in his home. A Celebration of Judge Bartick’s Life will be held at the James M. Carter & Judith N. Keep U.S. Courthouse at 4 p.m. on March 1, 2018.
