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"bio": "\u003ca href=\"http://www.MarkFiore.com\">MarkFiore.com\u003c/a> | \u003ca href=\"https://twitter.com/markfiore\">Follow on Twitter\u003c/a> | \u003ca href=\"https://www.facebook.com/pages/Mark-Fiore-Animated-Political-Cartoons/94451707396?ref=bookmarks\">Facebook\u003c/a> | \u003ca href=\"mailto:mark@markfiore.com\">email\u003c/a>\r\n\r\nPulitzer Prize-winner, Mark Fiore, who the Wall Street Journal has called “the undisputed guru of the form,” creates animated political cartoons in San Francisco, where his work has been featured regularly on the San Francisco Chronicle’s web site, SFGate.com. His work has appeared on Newsweek.com, Slate.com, CBSNews.com, MotherJones.com, DailyKos.com and NPR’s web site. Fiore’s political animation has appeared on CNN, Frontline, Bill Moyers Journal, Salon.com and cable and broadcast outlets across the globe.\r\n\r\nBeginning his professional life by drawing traditional political cartoons for newspapers, Fiore’s work appeared in publications ranging from the Washington Post to the Los Angeles Times. In the late 1990s, he began to experiment with animating political cartoons and, after a short stint at the San Jose Mercury News as their staff cartoonist, Fiore devoted all his energies to animation.\r\nGrowing up in California, Fiore also spent a good portion of his life in the backwoods of Idaho. It was this combination that shaped him politically. Mark majored in political science at Colorado College, where, in a perfect send-off for a cartoonist, he received his diploma in 1991 as commencement speaker Dick Cheney smiled approvingly.\r\nMark Fiore was awarded the Pulitzer Prize for political cartooning in 2010, a Robert F. Kennedy Journalism Award in 2004 and has twice received an Online Journalism Award for commentary from the Online News Association (2002, 2008). Fiore has received two awards for his work in new media from the National Cartoonists Society (2001, 2002), and in 2006 received The James Madison Freedom of Information Award from The Society of Professional Journalists.",
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"content": "\u003cp>A bankruptcy judge approved a slew of interim motions Thursday that will allow PG&E to continue operating normally as its bankruptcy protection case proceeds, including allowing the company to secure emergency financing and to keep paying its employees.\u003c/p>\n\u003cp>But the utility's lawyer, Stephen Karotkin, did not yet ask U.S. Bankruptcy Judge Dennis Montali to approve some $130 million in employee bonuses to 14,000 employees -- and said even when PG&E brings those bonuses before the court, they will not include compensation for executives or other high-level company leaders.\u003c/p>\n\u003cp>\"The employees, and there are 24,000 of them, make this operation run and it's important that we pay them their compensation,\" Karotkin told Montali. \"We are not asking for any authority to pay severance to insiders.\"\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Those 38 insiders -- or executives -- include former PG&E CEO Geisha Williams, who resigned Jan. 13, shortly before the utility announced it would file for bankruptcy. She was awarded $2.5 million upon her departure, but the money has apparently not been paid to her yet.\u003c/p>\n\u003cp>Thursday was PG&E's first substantive hearing since the \u003ca href=\"https://www.kqed.org/news/11721861/pge-files-for-chapter-11-bankruptcy-protection\" target=\"_blank\" rel=\"noopener\">utility filed for bankruptcy protection\u003c/a> early Tuesday. The utility, California's largest, argues that it is facing such massive liabilities from fires it started in recent years that it can no longer secure the financing it needs to continue service to its 16 million customers.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The filing has \u003ca href=\"https://www.kqed.org/news/11722060/disappointment-concerns-grow-as-pge-files-for-bankruptcy-protection\" target=\"_blank\" rel=\"noopener\">angered many of those wildfire victims and ratepayers\u003c/a>, who worry that the bankruptcy proceedings will make it harder for victims to get compensation and drive up customer rates.\u003c/p>\n\u003cp>But Karotkin, one of PG&E's lawyers, said Thursday that the Chapter 11 filing is actually good for wildfire survivors.\u003c/p>\n\u003cp>\"I want to emphasize that this is not a strategic ploy to avoid PG&E responsibility for the devastating damage and loss of life sustained in the 2017 and 2018 fires,\" he said. \"PG&E believes the Chapter 11 case will restore financial stability and ... let claimants get relief faster than if they went through state court.\"\u003c/p>\n\u003cp>But lawyers for thousands of wildfire victims were on hand Thursday, and told Montali that they want to make sure those survivors are first in line for whatever money the court can pay out -- ahead of stockholders and other creditors. Khaldoun Baghdadi, for example, told the judge that many clients who lost their homes in 2017 will run out of insurance relocation money after two years.\u003c/p>\n\u003cp>\"That means in October of this year, these people will have a hard time finding a place to live,\" he said.\u003c/p>\n\u003cp>And attorney Amanda Riddle, who is representing more than 1,500 wildfire victims, said she is still worried that PG&E will short-shrift fire victims. She noted that PG&E \u003ca href=\"https://www.kqed.org/news/10940314/cal-fire-hits-pge-with-90-million-bill-for-huge-blaze-in-sierra-foothills\" rel=\"noopener\" target=\"_blank\">started the 2015 Butte Fire\u003c/a> in Calaveras and Amador counties, and already settled with dozens of residents there — but stopped making those payments last week, before the bankruptcy filing.\u003c/p>\n\u003cp>\"PG&E decided to default (on those settlements),\" she said, noting that 22 of them are her clients — and two are children. \"When they talk about being expeditious, I think it's purposeful that they leave out the victims who have been waiting for 3½ years.\"\u003c/p>\n\u003cp>But outside court, Riddle did praise the company for not trying to give their executives bonuses.\u003c/p>\n\u003cp>\"I think that was a good move on PGE’s part to make clear that executives, officers including Geisha Williams, including past employees, were not included,\" Riddle said. \"We appreciate the lower-level employees, the boots on the ground, are continuing their role, and our beef has always been with the executives, the upper management, that puts in place procedures and processes and a culture of profits over safety. And that’s what causes these disasters.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Editor's note: This story has been updated to reflect that PG&E was responsible for the 2015 Butte Fire in Calaveras and Amador counties, not a 2015 fire in Butte County.\u003c/em>\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>A bankruptcy judge approved a slew of interim motions Thursday that will allow PG&E to continue operating normally as its bankruptcy protection case proceeds, including allowing the company to secure emergency financing and to keep paying its employees.\u003c/p>\n\u003cp>But the utility's lawyer, Stephen Karotkin, did not yet ask U.S. Bankruptcy Judge Dennis Montali to approve some $130 million in employee bonuses to 14,000 employees -- and said even when PG&E brings those bonuses before the court, they will not include compensation for executives or other high-level company leaders.\u003c/p>\n\u003cp>\"The employees, and there are 24,000 of them, make this operation run and it's important that we pay them their compensation,\" Karotkin told Montali. \"We are not asking for any authority to pay severance to insiders.\"\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Those 38 insiders -- or executives -- include former PG&E CEO Geisha Williams, who resigned Jan. 13, shortly before the utility announced it would file for bankruptcy. She was awarded $2.5 million upon her departure, but the money has apparently not been paid to her yet.\u003c/p>\n\u003cp>Thursday was PG&E's first substantive hearing since the \u003ca href=\"https://www.kqed.org/news/11721861/pge-files-for-chapter-11-bankruptcy-protection\" target=\"_blank\" rel=\"noopener\">utility filed for bankruptcy protection\u003c/a> early Tuesday. The utility, California's largest, argues that it is facing such massive liabilities from fires it started in recent years that it can no longer secure the financing it needs to continue service to its 16 million customers.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The filing has \u003ca href=\"https://www.kqed.org/news/11722060/disappointment-concerns-grow-as-pge-files-for-bankruptcy-protection\" target=\"_blank\" rel=\"noopener\">angered many of those wildfire victims and ratepayers\u003c/a>, who worry that the bankruptcy proceedings will make it harder for victims to get compensation and drive up customer rates.\u003c/p>\n\u003cp>But Karotkin, one of PG&E's lawyers, said Thursday that the Chapter 11 filing is actually good for wildfire survivors.\u003c/p>\n\u003cp>\"I want to emphasize that this is not a strategic ploy to avoid PG&E responsibility for the devastating damage and loss of life sustained in the 2017 and 2018 fires,\" he said. \"PG&E believes the Chapter 11 case will restore financial stability and ... let claimants get relief faster than if they went through state court.\"\u003c/p>\n\u003cp>But lawyers for thousands of wildfire victims were on hand Thursday, and told Montali that they want to make sure those survivors are first in line for whatever money the court can pay out -- ahead of stockholders and other creditors. Khaldoun Baghdadi, for example, told the judge that many clients who lost their homes in 2017 will run out of insurance relocation money after two years.\u003c/p>\n\u003cp>\"That means in October of this year, these people will have a hard time finding a place to live,\" he said.\u003c/p>\n\u003cp>And attorney Amanda Riddle, who is representing more than 1,500 wildfire victims, said she is still worried that PG&E will short-shrift fire victims. She noted that PG&E \u003ca href=\"https://www.kqed.org/news/10940314/cal-fire-hits-pge-with-90-million-bill-for-huge-blaze-in-sierra-foothills\" rel=\"noopener\" target=\"_blank\">started the 2015 Butte Fire\u003c/a> in Calaveras and Amador counties, and already settled with dozens of residents there — but stopped making those payments last week, before the bankruptcy filing.\u003c/p>\n\u003cp>\"PG&E decided to default (on those settlements),\" she said, noting that 22 of them are her clients — and two are children. \"When they talk about being expeditious, I think it's purposeful that they leave out the victims who have been waiting for 3½ years.\"\u003c/p>\n\u003cp>But outside court, Riddle did praise the company for not trying to give their executives bonuses.\u003c/p>\n\u003cp>\"I think that was a good move on PGE’s part to make clear that executives, officers including Geisha Williams, including past employees, were not included,\" Riddle said. \"We appreciate the lower-level employees, the boots on the ground, are continuing their role, and our beef has always been with the executives, the upper management, that puts in place procedures and processes and a culture of profits over safety. And that’s what causes these disasters.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Editor's note: This story has been updated to reflect that PG&E was responsible for the 2015 Butte Fire in Calaveras and Amador counties, not a 2015 fire in Butte County.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "5 Things to Know About the PG&E Bankruptcy",
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"headTitle": "The California Report | KQED News",
"content": "\u003cp>Just after midnight on Tuesday, Jan. 29, Pacific Gas and Electric Corp. \u003ca href=\"https://www.kqed.org/news/11721861/pge-files-for-chapter-11-bankruptcy-protection\" target=\"_blank\" rel=\"noopener\">filed for bankruptcy\u003c/a>. Even if you don't directly get power from PG&E, this is a big deal.\u003c/p>\n\u003cp>PG&E is one of the largest utilities in the United States, powering the homes and businesses of about 16 million Californians.\u003c/p>\n\u003cp>The bankruptcy will affect electricity rates, the state's renewable energy goals and wildfire lawsuits. It could very well change the kinds of utilities we have in Northern California. It's also going to be a very long and complicated process, so don't expect anything to change quickly.\u003c/p>\n\u003ch2>So my power isn't getting shut off?\u003c/h2>\n\u003cp>\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/07/electricity.jpg\" alt=\"\" width=\"1920\" height=\"1280\" class=\"aligncenter size-full wp-image-10587095\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/07/electricity.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2015/07/electricity-400x267.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/07/electricity-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/07/electricity-1440x960.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2015/07/electricity-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2015/07/electricity-960x640.jpg 960w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003c/p>\n\u003cp>Nope! The lights will stay on.\u003c/p>\n\u003cp>PG&E filed what's known as a Chapter 11 bankruptcy. That means that it wants to reorganize the company and get rid of some debts; it's the same kind of bankruptcy that the utility filed for in 2001. And just like then, we should expect some version of PG&E to emerge from bankruptcy in several years.\u003c/p>\n\u003cp>You might remember the blackouts and brownouts of the 2001 energy crisis. This bankruptcy is very different. PG&E has access to the electricity it needs and customers should not see any kind of reduced service.\u003c/p>\n\u003cp>The utility has 120 days to announce how it wants to reorganize. There's been a lot of talk about how the utility could sell off its \u003ca href=\"https://www.npr.org/2019/01/04/677832387/devastating-wildfires-force-californias-largest-utility-to-plan-sale-of-gas-asse\" target=\"_blank\" rel=\"noopener\">gas division\u003c/a> or even parts of its energy grid.\u003c/p>\n\u003cp>There are also lots of laws and agencies that exist to ensure that you will still get safe and reliable power. These agencies are part of the bankruptcy proceeding, and PG&E can't make any changes to how it delivers power without their signoff.\u003c/p>\n\u003ch2>Is anyone winning from this?\u003c/h2>\n\u003cfigure id=\"attachment_11721848\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/GettyImages-1095654954-e1548738691357.jpg\" alt=\"\" width=\"1920\" height=\"1260\" class=\"size-full wp-image-11721848\">\u003cfigcaption class=\"wp-caption-text\">A traffic cone sits next to a Pacific Gas & Electric (PG&E) truck on Jan. 17, 2019 in Fairfax, California. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Yes. There are potentially three big winners: PG&E, big banks and lawyers.\u003c/p>\n\u003cp>The point of Chapter 11 bankruptcy is for a company to reorganize and get rid of debt so that it can emerge from bankruptcy as a healthy company. PG&E emerged from its previous bankruptcy as a profitable company with one of the highest rate of returns for a utility company in the country.\u003c/p>\n\u003cp>To continue functioning, PG&E is \u003ca href=\"https://www.kqed.org/news/11721731/pge-regulators-ok-utilitys-request-to-borrow-6-billion-amid-bankruptcy-crisis\" target=\"_blank\" rel=\"noopener\">requesting to borrow $5.5 billion\u003c/a> in financing from nine major banks that would allow the company to keep paying its bills. The reason these banks are willing to lend PG&E the money is because they'll be some of the first creditors to be paid back.\u003c/p>\n\u003cp>Bankruptcy cases also can generate hundreds of millions of dollars in fees for lawyers, bankers and consultants. A 2014 bankruptcy filing for a Texas utility yielded more than $600 million in professional fees, according to the \u003ca href=\"https://www.chron.com/business/energy/article/Energy-company-s-bankruptcy-generating-12789018.php\" target=\"_blank\" rel=\"noopener\">Texas Lawbook\u003c/a>.\u003c/p>\n\u003ch2>Remind me, why is PG&E doing this?\u003c/h2>\n\u003cfigure id=\"attachment_11722372\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/RS11522_452938222-e1548901093392.jpg\" alt=\"\" width=\"1920\" height=\"1331\" class=\"size-full wp-image-11722372\">\u003cfigcaption class=\"wp-caption-text\">A hard hat sits on the ground at a Pacific Gas and Electric (PG&E) work site on July 30, 2014 in San Francisco, California. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>This is an unusual bankruptcy because PG&E is still solvent. As part of its filing, PG&E estimated its liabilities at about $51 billion and its assets at more than $71 billion.\u003c/p>\n\u003cp>What PG&E \u003cem>doesn't\u003c/em> have access to is credit.\u003c/p>\n\u003cp>That's because PG&E \u003ca href=\"https://www.kqed.org/news/11717965/pge-announces-plans-for-bankruptcy-protection\" target=\"_blank\" rel=\"noopener\">could have to pay out tens of billions of dollars\u003c/a> to victims of the devastating wildfires of 2017 and 2018. But we don't know exactly how much PG&E will owe fire victims because none of those lawsuits ever made it far enough in court for any kind of settlement or verdict to be reached.\u003c/p>\n\u003cp>State fire officials are also still investigating whether PG&E equipment was responsible for several fires, including the Camp Fire in November 2018. So far Cal Fire has determined that PG&E equipment was responsible for 18 fires in 2017, and found that the utility broke state law in 11 of those cases. Under California state law, utilities are responsible for any damage their equipment causes, even if they weren't found negligent. However, some of those costs can be passed on to ratepayers under a controversial new bill that passed last year.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>PG&E estimated that it could owe about $30 billion in liabilities in its most recent bankruptcy filing. But the company hasn't disclosed how it came to that number in filings in bankruptcy court or with the U.S. Securities and Exchange Commission. How much PG&E could owe is going to be a big debate during the bankruptcy proceeding. Some shareholders and attorneys representing fire victims \u003ca href=\"https://www.kqed.org/news/11719917/pge-says-bankruptcy-could-take-3-years-as-shareholders-fight-filing\" target=\"_blank\" rel=\"noopener\">say that there's no reason\u003c/a> for the company to go bankrupt because we don't know what exactly that liability will be.\u003c/p>\n\u003cp>So what does all of this liability have to do with credit and bankruptcy?\u003c/p>\n\u003cp>PG&E's stock began to crash while the North Bay fires still raged in October 2017, and then again after PG&E told state regulators that the company had \u003ca href=\"https://www.kqed.org/news/11705306/pge-transmission-line-may-be-tied-to-disastrous-butte-county-fire\" target=\"_blank\" rel=\"noopener\">problems with its equipment\u003c/a> just before the Camp Fire began on Nov. 8, 2018. Then, in early January, the company’s \u003ca href=\"https://www.kqed.org/news/11716710/ratings-service-slashes-pge-credit-to-junk-status\" target=\"_blank\" rel=\"noopener\">bond rating was slashed to junk status\u003c/a>, making it prohibitively expensive for PG&E to borrow capital.\u003c/p>\n\u003ch2>What does this mean for the wildfire survivors I know?\u003c/h2>\n\u003cfigure id=\"attachment_11683187\" class=\"wp-caption aligncenter\" style=\"max-width: 5360px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/07/GettyImages-1006311468.jpg\" alt=\"\" width=\"5360\" height=\"3648\" class=\"size-full wp-image-11683187\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468.jpg 5360w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-160x109.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-800x544.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-1020x694.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-1200x817.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-1920x1307.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-1180x803.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-960x653.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-240x163.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-375x255.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-520x354.jpg 520w\" sizes=\"(max-width: 5360px) 100vw, 5360px\">\u003cfigcaption class=\"wp-caption-text\">A woman covers her face while viewing her grandmother's burned home during the Carr fire in Redding, Calif. on July 27, 2018. \u003ccite>(JOSH EDELSON/AFP/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Bankruptcy freezes all debts accrued before the filing. That includes pending lawsuits.\u003c/p>\n\u003cp>\u003ca href=\"https://www.kqed.org/news/11719907/pge-shareholders-and-ratepayers-on-the-same-team\" target=\"_blank\" rel=\"noopener\">There's an order\u003c/a> to who gets paid after a company goes bankrupt. Those big banks will get paid back first. Then come secured creditors who gave loans based on physical pieces of property, like a building. Next come unsecured creditors, including bondholders (who are owed $18 billion), vendors and fire victims.\u003c/p>\n\u003cp>So now, even if fire victims win their cases against PG&E, it's unclear whether the corporation would be able to pay them.\u003c/p>\n\u003cp>Even before the bankruptcy filing by the utility and parent company Pacific Gas and Electric Corp., PG&E \u003ca href=\"https://www.latimes.com/business/la-fi-pge-fire-victims-20190128-story.html\" target=\"_blank\" rel=\"noopener\">started skipping some payments\u003c/a> to fire victims who reached settlements with the company in a 2015 Butte County blaze.\u003c/p>\n\u003ch2>Are my rates going to go up?\u003c/h2>\n\u003cp>\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/07/wallet-1920.jpg\" alt=\"\" width=\"1920\" height=\"1278\" class=\"aligncenter size-full wp-image-11024931\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/07/wallet-1920.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2016/07/wallet-1920-400x266.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2016/07/wallet-1920-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2016/07/wallet-1920-1180x785.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2016/07/wallet-1920-960x639.jpg 960w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003c/p>\n\u003cp>Most experts agree that it's likely that electricity rates will go up. Ratepayers are still paying off the bond from the last time PG&E went bankrupt.\u003c/p>\n\u003cp>The California Public Utilities Commission is the agency that must approve rate hikes, and weeks before filing for bankruptcy, PG&E already \u003ca href=\"https://www.kqed.org/news/11712531/pge-asks-for-billions-of-dollars-from-ratepayers-for-fire-safety-plant-decommissioning\" target=\"_blank\" rel=\"noopener\">asked the agency for a 6.4 percent electrical rate hike\u003c/a> starting in 2020. If that were approved, it would amount to an average ratepayer increase of about $10.50 per month.\u003c/p>\n\u003cp>And that's before even considering the impact that bankruptcy could have. Rate increases would likely be tied to whatever reorganization plan a bankruptcy court judge approves.\u003c/p>\n\u003cp>Bankruptcy proceedings can result in steep legal fees, and some consumer advocates are concerned those costs will inevitably be passed on to ratepayers. PG&E may also face fines or need to borrow money as part of its restructuring plan, all of which could increase costs that ratepayers may have to shoulder.\u003c/p>\n\u003cp>Also, some of that liability could be passed onto consumers under a \u003ca href=\"https://www.kqed.org/news/11689873/california-legislature-passes-major-reforms-to-wildfire-law\" target=\"_blank\" rel=\"noopener\">controversial bill\u003c/a> signed by Gov. Jerry Brown last September.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Just after midnight on Tuesday, Jan. 29, Pacific Gas and Electric Corp. \u003ca href=\"https://www.kqed.org/news/11721861/pge-files-for-chapter-11-bankruptcy-protection\" target=\"_blank\" rel=\"noopener\">filed for bankruptcy\u003c/a>. Even if you don't directly get power from PG&E, this is a big deal.\u003c/p>\n\u003cp>PG&E is one of the largest utilities in the United States, powering the homes and businesses of about 16 million Californians.\u003c/p>\n\u003cp>The bankruptcy will affect electricity rates, the state's renewable energy goals and wildfire lawsuits. It could very well change the kinds of utilities we have in Northern California. It's also going to be a very long and complicated process, so don't expect anything to change quickly.\u003c/p>\n\u003ch2>So my power isn't getting shut off?\u003c/h2>\n\u003cp>\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2015/07/electricity.jpg\" alt=\"\" width=\"1920\" height=\"1280\" class=\"aligncenter size-full wp-image-10587095\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2015/07/electricity.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2015/07/electricity-400x267.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2015/07/electricity-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2015/07/electricity-1440x960.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2015/07/electricity-1180x787.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2015/07/electricity-960x640.jpg 960w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003c/p>\n\u003cp>Nope! The lights will stay on.\u003c/p>\n\u003cp>PG&E filed what's known as a Chapter 11 bankruptcy. That means that it wants to reorganize the company and get rid of some debts; it's the same kind of bankruptcy that the utility filed for in 2001. And just like then, we should expect some version of PG&E to emerge from bankruptcy in several years.\u003c/p>\n\u003cp>You might remember the blackouts and brownouts of the 2001 energy crisis. This bankruptcy is very different. PG&E has access to the electricity it needs and customers should not see any kind of reduced service.\u003c/p>\n\u003cp>The utility has 120 days to announce how it wants to reorganize. There's been a lot of talk about how the utility could sell off its \u003ca href=\"https://www.npr.org/2019/01/04/677832387/devastating-wildfires-force-californias-largest-utility-to-plan-sale-of-gas-asse\" target=\"_blank\" rel=\"noopener\">gas division\u003c/a> or even parts of its energy grid.\u003c/p>\n\u003cp>There are also lots of laws and agencies that exist to ensure that you will still get safe and reliable power. These agencies are part of the bankruptcy proceeding, and PG&E can't make any changes to how it delivers power without their signoff.\u003c/p>\n\u003ch2>Is anyone winning from this?\u003c/h2>\n\u003cfigure id=\"attachment_11721848\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/GettyImages-1095654954-e1548738691357.jpg\" alt=\"\" width=\"1920\" height=\"1260\" class=\"size-full wp-image-11721848\">\u003cfigcaption class=\"wp-caption-text\">A traffic cone sits next to a Pacific Gas & Electric (PG&E) truck on Jan. 17, 2019 in Fairfax, California. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Yes. There are potentially three big winners: PG&E, big banks and lawyers.\u003c/p>\n\u003cp>The point of Chapter 11 bankruptcy is for a company to reorganize and get rid of debt so that it can emerge from bankruptcy as a healthy company. PG&E emerged from its previous bankruptcy as a profitable company with one of the highest rate of returns for a utility company in the country.\u003c/p>\n\u003cp>To continue functioning, PG&E is \u003ca href=\"https://www.kqed.org/news/11721731/pge-regulators-ok-utilitys-request-to-borrow-6-billion-amid-bankruptcy-crisis\" target=\"_blank\" rel=\"noopener\">requesting to borrow $5.5 billion\u003c/a> in financing from nine major banks that would allow the company to keep paying its bills. The reason these banks are willing to lend PG&E the money is because they'll be some of the first creditors to be paid back.\u003c/p>\n\u003cp>Bankruptcy cases also can generate hundreds of millions of dollars in fees for lawyers, bankers and consultants. A 2014 bankruptcy filing for a Texas utility yielded more than $600 million in professional fees, according to the \u003ca href=\"https://www.chron.com/business/energy/article/Energy-company-s-bankruptcy-generating-12789018.php\" target=\"_blank\" rel=\"noopener\">Texas Lawbook\u003c/a>.\u003c/p>\n\u003ch2>Remind me, why is PG&E doing this?\u003c/h2>\n\u003cfigure id=\"attachment_11722372\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/RS11522_452938222-e1548901093392.jpg\" alt=\"\" width=\"1920\" height=\"1331\" class=\"size-full wp-image-11722372\">\u003cfigcaption class=\"wp-caption-text\">A hard hat sits on the ground at a Pacific Gas and Electric (PG&E) work site on July 30, 2014 in San Francisco, California. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>This is an unusual bankruptcy because PG&E is still solvent. As part of its filing, PG&E estimated its liabilities at about $51 billion and its assets at more than $71 billion.\u003c/p>\n\u003cp>What PG&E \u003cem>doesn't\u003c/em> have access to is credit.\u003c/p>\n\u003cp>That's because PG&E \u003ca href=\"https://www.kqed.org/news/11717965/pge-announces-plans-for-bankruptcy-protection\" target=\"_blank\" rel=\"noopener\">could have to pay out tens of billions of dollars\u003c/a> to victims of the devastating wildfires of 2017 and 2018. But we don't know exactly how much PG&E will owe fire victims because none of those lawsuits ever made it far enough in court for any kind of settlement or verdict to be reached.\u003c/p>\n\u003cp>State fire officials are also still investigating whether PG&E equipment was responsible for several fires, including the Camp Fire in November 2018. So far Cal Fire has determined that PG&E equipment was responsible for 18 fires in 2017, and found that the utility broke state law in 11 of those cases. Under California state law, utilities are responsible for any damage their equipment causes, even if they weren't found negligent. However, some of those costs can be passed on to ratepayers under a controversial new bill that passed last year.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>PG&E estimated that it could owe about $30 billion in liabilities in its most recent bankruptcy filing. But the company hasn't disclosed how it came to that number in filings in bankruptcy court or with the U.S. Securities and Exchange Commission. How much PG&E could owe is going to be a big debate during the bankruptcy proceeding. Some shareholders and attorneys representing fire victims \u003ca href=\"https://www.kqed.org/news/11719917/pge-says-bankruptcy-could-take-3-years-as-shareholders-fight-filing\" target=\"_blank\" rel=\"noopener\">say that there's no reason\u003c/a> for the company to go bankrupt because we don't know what exactly that liability will be.\u003c/p>\n\u003cp>So what does all of this liability have to do with credit and bankruptcy?\u003c/p>\n\u003cp>PG&E's stock began to crash while the North Bay fires still raged in October 2017, and then again after PG&E told state regulators that the company had \u003ca href=\"https://www.kqed.org/news/11705306/pge-transmission-line-may-be-tied-to-disastrous-butte-county-fire\" target=\"_blank\" rel=\"noopener\">problems with its equipment\u003c/a> just before the Camp Fire began on Nov. 8, 2018. Then, in early January, the company’s \u003ca href=\"https://www.kqed.org/news/11716710/ratings-service-slashes-pge-credit-to-junk-status\" target=\"_blank\" rel=\"noopener\">bond rating was slashed to junk status\u003c/a>, making it prohibitively expensive for PG&E to borrow capital.\u003c/p>\n\u003ch2>What does this mean for the wildfire survivors I know?\u003c/h2>\n\u003cfigure id=\"attachment_11683187\" class=\"wp-caption aligncenter\" style=\"max-width: 5360px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/07/GettyImages-1006311468.jpg\" alt=\"\" width=\"5360\" height=\"3648\" class=\"size-full wp-image-11683187\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468.jpg 5360w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-160x109.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-800x544.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-1020x694.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-1200x817.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-1920x1307.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-1180x803.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-960x653.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-240x163.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-375x255.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/07/GettyImages-1006311468-520x354.jpg 520w\" sizes=\"(max-width: 5360px) 100vw, 5360px\">\u003cfigcaption class=\"wp-caption-text\">A woman covers her face while viewing her grandmother's burned home during the Carr fire in Redding, Calif. on July 27, 2018. \u003ccite>(JOSH EDELSON/AFP/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Bankruptcy freezes all debts accrued before the filing. That includes pending lawsuits.\u003c/p>\n\u003cp>\u003ca href=\"https://www.kqed.org/news/11719907/pge-shareholders-and-ratepayers-on-the-same-team\" target=\"_blank\" rel=\"noopener\">There's an order\u003c/a> to who gets paid after a company goes bankrupt. Those big banks will get paid back first. Then come secured creditors who gave loans based on physical pieces of property, like a building. Next come unsecured creditors, including bondholders (who are owed $18 billion), vendors and fire victims.\u003c/p>\n\u003cp>So now, even if fire victims win their cases against PG&E, it's unclear whether the corporation would be able to pay them.\u003c/p>\n\u003cp>Even before the bankruptcy filing by the utility and parent company Pacific Gas and Electric Corp., PG&E \u003ca href=\"https://www.latimes.com/business/la-fi-pge-fire-victims-20190128-story.html\" target=\"_blank\" rel=\"noopener\">started skipping some payments\u003c/a> to fire victims who reached settlements with the company in a 2015 Butte County blaze.\u003c/p>\n\u003ch2>Are my rates going to go up?\u003c/h2>\n\u003cp>\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/07/wallet-1920.jpg\" alt=\"\" width=\"1920\" height=\"1278\" class=\"aligncenter size-full wp-image-11024931\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/07/wallet-1920.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2016/07/wallet-1920-400x266.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2016/07/wallet-1920-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2016/07/wallet-1920-1180x785.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2016/07/wallet-1920-960x639.jpg 960w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003c/p>\n\u003cp>Most experts agree that it's likely that electricity rates will go up. Ratepayers are still paying off the bond from the last time PG&E went bankrupt.\u003c/p>\n\u003cp>The California Public Utilities Commission is the agency that must approve rate hikes, and weeks before filing for bankruptcy, PG&E already \u003ca href=\"https://www.kqed.org/news/11712531/pge-asks-for-billions-of-dollars-from-ratepayers-for-fire-safety-plant-decommissioning\" target=\"_blank\" rel=\"noopener\">asked the agency for a 6.4 percent electrical rate hike\u003c/a> starting in 2020. If that were approved, it would amount to an average ratepayer increase of about $10.50 per month.\u003c/p>\n\u003cp>And that's before even considering the impact that bankruptcy could have. Rate increases would likely be tied to whatever reorganization plan a bankruptcy court judge approves.\u003c/p>\n\u003cp>Bankruptcy proceedings can result in steep legal fees, and some consumer advocates are concerned those costs will inevitably be passed on to ratepayers. PG&E may also face fines or need to borrow money as part of its restructuring plan, all of which could increase costs that ratepayers may have to shoulder.\u003c/p>\n\u003cp>Also, some of that liability could be passed onto consumers under a \u003ca href=\"https://www.kqed.org/news/11689873/california-legislature-passes-major-reforms-to-wildfire-law\" target=\"_blank\" rel=\"noopener\">controversial bill\u003c/a> signed by Gov. Jerry Brown last September.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"disqusTitle": "Should S.F. Buy PG&E Infrastructure? Supervisor Says Yes, But Union Wary",
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"content": "\u003cp>San Francisco Supervisor Hillary Ronen introduced legislation Tuesday that would create what she is calling a Green New Deal Fund to speed the city's efforts to potentially buy Pacific Gas & Electric Co. infrastructure and develop its own municipal utility.\u003c/p>\n\u003cp>The legislation was introduced after PG&E and its parent company \u003ca href=\"https://www.kqed.org/news/11721861/pge-files-for-chapter-11-bankruptcy-protection\" target=\"_blank\" rel=\"noopener\">filed for Chapter 11 bankruptcy protection early Tuesday morning\u003c/a>, a move the company insists is necessary to contend with tens of billions of dollars in potential liabilities growing out of the calamitous wildfire seasons of 2017 and 2018. PG&E estimated its liabilities at about $51 billion and its assets at more than $71 billion.\u003c/p>\n\u003caside class=\"pullquote alignright\">'With the clock ticking on climate change and PG&E's abysmal safety record, we must take urgent action.'\u003ccite>San Francisco Supervisor Hillary Ronen\u003c/cite>\u003c/aside>\n\u003cp>Ronen said the fund would be a place to put revenue earmarked for a city-owned utility that would not be bound by shareholder profits and executive bonuses.\u003c/p>\n\u003cp>\"The priorities when a utility is municipally run is that you’re providing a safe, reliable, cost-effective system that provides an excellent service to its customers,\" Ronen said.\u003c/p>\n\u003cp>She said the time to split from the company is now.\u003c/p>\n\u003cp>\"For years, we have been struggling to take incremental steps to deliver clean, green power to San Franciscans, while PG&E has spent millions trying to block us,\" Ronen said. \"Against all odds, we created CleanPowerSF in 2016, but the program still relies on PG&E's existing grid for transmission and distribution. With the clock ticking on climate change and PG&E's abysmal safety record, we must take urgent action.\"\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Ronen's Green New Deal legislation seeks to secure $15.6 million from the excess windfall of $181 million in property taxes to kick-start the study, purchase and construction of a publicly owned grid. \u003c/p>\n\u003cp>CleanPowerSF generates electricity from renewable sources such as wind, solar, hydroelectric, biogas and small-hydro. Ronen said the goal of the fund is also to convert the city as quickly as possible to green and renewable energy.\u003c/p>\n\u003caside class=\"pullquote alignright\">'Whatever direction it goes, it’s a disruption.'\u003ccite>Tom Dalzell, International Brotherhood of Electrical Workers Local 1245\u003c/cite>\u003c/aside>\n\u003cp>Tom Dalzell, business manager of International Brotherhood of Electrical Workers Local 1245 — which represents approximately 17,000 PG&E employees and contractors — said the union does not support breaking up and selling the utility or making it city-owned.\u003c/p>\n\u003cp>He said the union opposed San Francisco's efforts to create a municipal utility in 2001 and 2003, and suspected the union would oppose current efforts because of potential disruptions to workers' mobility and existing benefits, seniority, pensions and medical coverage.\u003c/p>\n\u003cp>\"Whatever direction it goes, it’s a disruption,\" Dalzell said. \"It’s not that private is better than public. It’s the change from private to public, or public to private, or even from one private to another private we’re really wary of ... San Francisco is a progressive, good employer, and I’m sure they would do everything to mitigate. But there is no way you can mitigate the mobility, and there’s no way you can mitigate the disruption of the pension.\"\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Ronen responded to union concerns, saying she would do everything in her power to minimize disruptions to workers' lives under her plan.\u003c/p>\n\u003cp>\"I’m committed to making sure that the workers land as unharmed as possible and that the city works with the union in order to transition workers to becoming city employees with the least bit of disruption to their lives and their planned retirement and their wages,\" Ronen said.\u003c/p>\n\u003cp>San Francisco Public Utilities Commission General Manager Harlan Kelly said on Jan. 14 that PG&E's bankruptcy protection announcement \u003ca href=\"https://www.kqed.org/news/11718123/s-f-considers-buying-some-of-pges-infrastructure-in-wake-of-bankruptcy-plans\" rel=\"noopener\" target=\"_blank\">led the city to consider buying some of PG&E's electricity distribution system\u003c/a>.\u003c/p>\n\u003cp>\"The SFPUC is studying the near- and long-term impacts of a PG&E bankruptcy and identifying all possible options to ensure continuity for all San Francisco power customers — including the possibility of acquiring or building electrical infrastructure assets,\" Kelly said.\u003c/p>\n\u003cp>Those comments came after San Francisco Mayor London Breed reassured residents in the city — where PG&E is headquartered — that their gas and electric service would not be affected by the company's financial problems.\u003c/p>\n\u003cp>SFPUC officials said in mid-January that, within the next three months, their agency will release findings that will include recommendations and an analysis of the current health of the city's electrical network.\u003c/p>\n\u003cp>\u003cem>KQED's Peter Jon Shuler and Bay City News contributed to this report.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n",
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"excerpt": "Hillary Ronen’s proposal would earmark revenue for a city-owned utility that wouldn’t be bound by shareholder profits. But the union representing 17,000 PG&E employees and contractors is worried about disruption to workers.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>San Francisco Supervisor Hillary Ronen introduced legislation Tuesday that would create what she is calling a Green New Deal Fund to speed the city's efforts to potentially buy Pacific Gas & Electric Co. infrastructure and develop its own municipal utility.\u003c/p>\n\u003cp>The legislation was introduced after PG&E and its parent company \u003ca href=\"https://www.kqed.org/news/11721861/pge-files-for-chapter-11-bankruptcy-protection\" target=\"_blank\" rel=\"noopener\">filed for Chapter 11 bankruptcy protection early Tuesday morning\u003c/a>, a move the company insists is necessary to contend with tens of billions of dollars in potential liabilities growing out of the calamitous wildfire seasons of 2017 and 2018. PG&E estimated its liabilities at about $51 billion and its assets at more than $71 billion.\u003c/p>\n\u003caside class=\"pullquote alignright\">'With the clock ticking on climate change and PG&E's abysmal safety record, we must take urgent action.'\u003ccite>San Francisco Supervisor Hillary Ronen\u003c/cite>\u003c/aside>\n\u003cp>Ronen said the fund would be a place to put revenue earmarked for a city-owned utility that would not be bound by shareholder profits and executive bonuses.\u003c/p>\n\u003cp>\"The priorities when a utility is municipally run is that you’re providing a safe, reliable, cost-effective system that provides an excellent service to its customers,\" Ronen said.\u003c/p>\n\u003cp>She said the time to split from the company is now.\u003c/p>\n\u003cp>\"For years, we have been struggling to take incremental steps to deliver clean, green power to San Franciscans, while PG&E has spent millions trying to block us,\" Ronen said. \"Against all odds, we created CleanPowerSF in 2016, but the program still relies on PG&E's existing grid for transmission and distribution. With the clock ticking on climate change and PG&E's abysmal safety record, we must take urgent action.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Ronen's Green New Deal legislation seeks to secure $15.6 million from the excess windfall of $181 million in property taxes to kick-start the study, purchase and construction of a publicly owned grid. \u003c/p>\n\u003cp>CleanPowerSF generates electricity from renewable sources such as wind, solar, hydroelectric, biogas and small-hydro. Ronen said the goal of the fund is also to convert the city as quickly as possible to green and renewable energy.\u003c/p>\n\u003caside class=\"pullquote alignright\">'Whatever direction it goes, it’s a disruption.'\u003ccite>Tom Dalzell, International Brotherhood of Electrical Workers Local 1245\u003c/cite>\u003c/aside>\n\u003cp>Tom Dalzell, business manager of International Brotherhood of Electrical Workers Local 1245 — which represents approximately 17,000 PG&E employees and contractors — said the union does not support breaking up and selling the utility or making it city-owned.\u003c/p>\n\u003cp>He said the union opposed San Francisco's efforts to create a municipal utility in 2001 and 2003, and suspected the union would oppose current efforts because of potential disruptions to workers' mobility and existing benefits, seniority, pensions and medical coverage.\u003c/p>\n\u003cp>\"Whatever direction it goes, it’s a disruption,\" Dalzell said. \"It’s not that private is better than public. It’s the change from private to public, or public to private, or even from one private to another private we’re really wary of ... San Francisco is a progressive, good employer, and I’m sure they would do everything to mitigate. But there is no way you can mitigate the mobility, and there’s no way you can mitigate the disruption of the pension.\"\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Ronen responded to union concerns, saying she would do everything in her power to minimize disruptions to workers' lives under her plan.\u003c/p>\n\u003cp>\"I’m committed to making sure that the workers land as unharmed as possible and that the city works with the union in order to transition workers to becoming city employees with the least bit of disruption to their lives and their planned retirement and their wages,\" Ronen said.\u003c/p>\n\u003cp>San Francisco Public Utilities Commission General Manager Harlan Kelly said on Jan. 14 that PG&E's bankruptcy protection announcement \u003ca href=\"https://www.kqed.org/news/11718123/s-f-considers-buying-some-of-pges-infrastructure-in-wake-of-bankruptcy-plans\" rel=\"noopener\" target=\"_blank\">led the city to consider buying some of PG&E's electricity distribution system\u003c/a>.\u003c/p>\n\u003cp>\"The SFPUC is studying the near- and long-term impacts of a PG&E bankruptcy and identifying all possible options to ensure continuity for all San Francisco power customers — including the possibility of acquiring or building electrical infrastructure assets,\" Kelly said.\u003c/p>\n\u003cp>Those comments came after San Francisco Mayor London Breed reassured residents in the city — where PG&E is headquartered — that their gas and electric service would not be affected by the company's financial problems.\u003c/p>\n\u003cp>SFPUC officials said in mid-January that, within the next three months, their agency will release findings that will include recommendations and an analysis of the current health of the city's electrical network.\u003c/p>\n\u003cp>\u003cem>KQED's Peter Jon Shuler and Bay City News contributed to this report.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"disqusTitle": "Disappointment, Concerns Grow as PG&E Files for Bankruptcy Protection",
"title": "Disappointment, Concerns Grow as PG&E Files for Bankruptcy Protection",
"headTitle": "The California Report | KQED News",
"content": "\u003cp>Pacific Gas & Electric Co. and its parent company officially \u003ca href=\"https://www.kqed.org/news/tag/pge\" rel=\"noopener\" target=\"_blank\">filed for bankruptcy protection\u003c/a> early Tuesday morning, saying it was necessary as the company tries to deal with tens of billions of dollars in potential liabilities from destructive wildfires in 2017 and 2018.\u003c/p>\n\u003cp>Though the move just after midnight was expected, reaction was nonetheless swift and overwhelmingly negative. Legislators, experts and consumer watchdog groups slammed the state’s biggest utility, saying it will ultimately benefit the company at the expense of ratepayers and fire victims.\u003c/p>\n\u003caside class=\"pullquote alignright\">'This is the easy way for them to go. This is the way they can move forward and put everyone at risk.'\u003ccite>State Sen. Jerry Hill\u003c/cite>\u003c/aside>\n\u003cp>Brad Sherwood, a resident of Sonoma County, said he and his family lost everything but their lives in the Tubbs Fire in 2017. Sherwood, who works for the Sonoma County Water Agency, said he and other survivors are concerned about the news of PG&E’s bankruptcy.\u003c/p>\n\u003cp>Sherwood said his family was not counting on the utility to help them rebuild, but he is most concerned with what bankruptcy will mean for future wildfire prevention efforts in Northern California.\u003c/p>\n\u003cp>“Wildfires won't stop because of a bankruptcy. Power, I believe, will still be going through those transmission lines ... fire prevention measures must continue, bankruptcy or not,” said Sherwood. “I think PG&E is behind the ball when it comes to fire prevention measures, and I'm concerned that bankruptcy will further put them behind the ball.”\u003c/p>\n\u003ch3>PG&E Is Filing for Bankruptcy While Still Solvent\u003c/h3>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>At its core, \u003ca href=\"https://www.kqed.org/news/11721763/pge-just-filed-for-bankruptcy-heres-what-happens-next\">Chapter 11 bankruptcy\u003c/a> is aimed at allowing a company to restructure its operations and get rid of some debts when it doesn’t have enough money to pay all those obligations.\u003c/p>\n\u003cp>But what's unusual about this bankruptcy filing is that the utility is still solvent. As part of its filing, PG&E estimated its liabilities at about $51 billion and its assets at more than $71 billion.\u003c/p>\n\u003cp>And some critics argue there's no reason for the company to go bankrupt.\u003c/p>\n\u003cp>“This is the easy way for them to go. This is the way they can move forward and put everyone at risk,” said state Sen. Jerry Hill (D-San Mateo), whose district includes San Bruno, the site of a 2010 gas explosion caused by PG&E equipment.\u003c/p>\n\u003cp>Hill points out that ratepayers ended up on the hook for billions of dollars in loans after the utility declared bankruptcy in 2001.\u003c/p>\n\u003cp>“The ratepayers, as we did with the last bankruptcy, will wind up paying a lot more,” he said. “The victims will probably not get dollar for dollar and PG&E will win. They will come out stronger at the end of the day and probably a more profitable company.\"\u003c/p>\n\u003ch3>Calls for Serious Structural Change at PG&E\u003c/h3>\n\u003cp>Bankruptcy will allow PG&E to reorganize, but some say the changes need to go deeper.\u003c/p>\n\u003cp>“[The bankruptcy] continues to underscore the need for change at PG&E both in its leadership and corporate culture,” said state Sen. Bill Dodd (D-Napa). “I think what we've got to focus on right now is safety, reliability and affordability of electric power in the state.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>In 2001, Loretta Lynch was the president of the California Public Utilities Commission, the agency that regulates utilities. She said the CPUC needs to stand up for ratepayers this time around. She said the last time around, the company got everything it wanted for \"being belligerent\" and fighting the state. She pointed out that no other utilities during that time chose the bankruptcy route.\u003c/p>\n\u003cp>\"PG&E made out like a bandit. So here we are again 18 years later. None of the other utilities are threatening bankruptcy. Only PG&E. Why? Because they got the store the last time, and they're banking on the fact that this PUC will give them the store,\" she said.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11721861/pge-files-for-chapter-11-bankruptcy-protection\">PG&E Files for Chapter 11 Bankruptcy Protection\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11721861/pge-files-for-chapter-11-bankruptcy-protection\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/e7ee4f62-rs11522_452938222-e1548184779248-1020x707.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Hill and other lawmakers agree that the CPUC needs to play a stronger role in what happens next.\u003c/p>\n\u003cp>\"The PUC could come back with some strong requirements on that reorganization that puts the balance of power more in the hands of the ratepayers, more in the hands of the consumer and the victims, rather than in the pockets of PG&E shareholders,\" Hill said.\u003c/p>\n\u003cp>And some critics are going farther. \u003c/p>\n\u003cp>Jamie Court, president of Consumer Watchdog, called on Gov. Gavin Newsom to fire all of the CPUC commissioners, who unanimously voted to pre-approve up to $6.1 billion in credit and loans for PG&E on Monday.\u003c/p>\n\u003cp>“What many people don’t realize is this $6 billion credit line comes on top of the bailout the Legislature approved for PG&E and the other utilities over the 2017 fires,” said Court. “The PUC should be called the PG&E Underwriting Commission, not the Public Utilities Commission, because there was absolutely no public protection in this decision. There wasn’t even an opportunity for the public to comment, it happened so fast.”\u003c/p>\n\u003ch3>Fire Survivors Not Optimistic on Payouts\u003c/h3>\n\u003cp>Sonoma County residents, who lived through the Tubbs Fire in 2017, said the bankruptcy news was not a surprise, and many seemed resigned to the possibility that fire victims may have to get in line with shareholders, stockholders and creditors before getting any payout from PG&E.\u003c/p>\n\u003caside class=\"pullquote alignright\">'I really didn't think [PG&E] needed to declare bankruptcy ... They're hoping that they can pay less than what people might be entitled to after a liability determination.'\u003ccite>James Gallagher, GOP assemblyman representing areas affected by the Camp Fire\u003c/cite>\u003c/aside>\n\u003cp>\"That's how it usually goes. Because of the power that they wield, those entities put themselves in first lien position every chance they get. That's how it tends to work,\" said Ken Cozine, a Santa Rosa resident who is an insurance agent. The flames of the Tubbs Fire missed his house by less than a mile.\u003c/p>\n\u003cp>Tim Rothchild, who was not directly impacted by the fire but knows people who had to evacuate, said, \"PG&E will find a way to not pay out. That’s just going to happen.”\u003c/p>\n\u003cp>Last week, Cal Fire also released its finding that PG&E equipment was not at fault in the Tubbs Fire, which killed 22 people, destroyed more than 5,000 homes and was responsible for as much as $10 billion in insured property losses.\u003c/p>\n\u003cp>Republican Assemblyman James Gallagher, who represents areas affected by the Camp Fire, which killed 86 people and destroyed nearly 14,000 homes, told KQED's Lily Jamali:\u003c/p>\n\u003cp>\"It's really disappointing and frustrating,\" he said. \"I really just didn't think that they needed to declare bankruptcy. They still have viable assets. There's going to be a determination of liability with regard to these wildfires, but that hasn't been determined as of yet.\"\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11721866/pge-bankruptcy-chapter-11-timeline\">Into and Out of and Back Into Bankruptcy Court: A PG&E Timeline\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11721866/pge-bankruptcy-chapter-11-timeline\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/33026838188_4a699d0ace_k-1020x694.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Gallagher is questioning the company's motive.\u003c/p>\n\u003cp>\"I mean, it does seem suspect and I think there's already a lot of distrust of PG&E,\" he said. \"I don't think there's any other way to look at it. They're hoping that they can pay less than what people might be entitled to after a liability determination.\"\u003c/p>\n\u003cp>Other lawmakers weighed in on the latest news.\u003c/p>\n\u003cp>“It’s disheartening that it has come to this,\" said state Sen. Ben Hueso (D-San Diego) in a written statement. \"Bankruptcy is never an ideal option. It will now be crucial for the state to ensure that we are well positioned to protect ratepayers, wildfire victims, the utility workforce and vendors in the process moving forward. My focus and priorities during this process remain the same: ensuring that there is safe, reliable and uninterrupted service for consumers; and that wildfire victims are treated fairly and receive just compensation for their losses.\"\u003c/p>\n\u003cp>\u003cem>Lily Jamali, Marisa Lagos, Steve Mencher, Peter Jon Shuler and Brian Watt contributed to this report.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Pacific Gas & Electric Co. and its parent company officially \u003ca href=\"https://www.kqed.org/news/tag/pge\" rel=\"noopener\" target=\"_blank\">filed for bankruptcy protection\u003c/a> early Tuesday morning, saying it was necessary as the company tries to deal with tens of billions of dollars in potential liabilities from destructive wildfires in 2017 and 2018.\u003c/p>\n\u003cp>Though the move just after midnight was expected, reaction was nonetheless swift and overwhelmingly negative. Legislators, experts and consumer watchdog groups slammed the state’s biggest utility, saying it will ultimately benefit the company at the expense of ratepayers and fire victims.\u003c/p>\n\u003caside class=\"pullquote alignright\">'This is the easy way for them to go. This is the way they can move forward and put everyone at risk.'\u003ccite>State Sen. Jerry Hill\u003c/cite>\u003c/aside>\n\u003cp>Brad Sherwood, a resident of Sonoma County, said he and his family lost everything but their lives in the Tubbs Fire in 2017. Sherwood, who works for the Sonoma County Water Agency, said he and other survivors are concerned about the news of PG&E’s bankruptcy.\u003c/p>\n\u003cp>Sherwood said his family was not counting on the utility to help them rebuild, but he is most concerned with what bankruptcy will mean for future wildfire prevention efforts in Northern California.\u003c/p>\n\u003cp>“Wildfires won't stop because of a bankruptcy. Power, I believe, will still be going through those transmission lines ... fire prevention measures must continue, bankruptcy or not,” said Sherwood. “I think PG&E is behind the ball when it comes to fire prevention measures, and I'm concerned that bankruptcy will further put them behind the ball.”\u003c/p>\n\u003ch3>PG&E Is Filing for Bankruptcy While Still Solvent\u003c/h3>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>At its core, \u003ca href=\"https://www.kqed.org/news/11721763/pge-just-filed-for-bankruptcy-heres-what-happens-next\">Chapter 11 bankruptcy\u003c/a> is aimed at allowing a company to restructure its operations and get rid of some debts when it doesn’t have enough money to pay all those obligations.\u003c/p>\n\u003cp>But what's unusual about this bankruptcy filing is that the utility is still solvent. As part of its filing, PG&E estimated its liabilities at about $51 billion and its assets at more than $71 billion.\u003c/p>\n\u003cp>And some critics argue there's no reason for the company to go bankrupt.\u003c/p>\n\u003cp>“This is the easy way for them to go. This is the way they can move forward and put everyone at risk,” said state Sen. Jerry Hill (D-San Mateo), whose district includes San Bruno, the site of a 2010 gas explosion caused by PG&E equipment.\u003c/p>\n\u003cp>Hill points out that ratepayers ended up on the hook for billions of dollars in loans after the utility declared bankruptcy in 2001.\u003c/p>\n\u003cp>“The ratepayers, as we did with the last bankruptcy, will wind up paying a lot more,” he said. “The victims will probably not get dollar for dollar and PG&E will win. They will come out stronger at the end of the day and probably a more profitable company.\"\u003c/p>\n\u003ch3>Calls for Serious Structural Change at PG&E\u003c/h3>\n\u003cp>Bankruptcy will allow PG&E to reorganize, but some say the changes need to go deeper.\u003c/p>\n\u003cp>“[The bankruptcy] continues to underscore the need for change at PG&E both in its leadership and corporate culture,” said state Sen. Bill Dodd (D-Napa). “I think what we've got to focus on right now is safety, reliability and affordability of electric power in the state.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>In 2001, Loretta Lynch was the president of the California Public Utilities Commission, the agency that regulates utilities. She said the CPUC needs to stand up for ratepayers this time around. She said the last time around, the company got everything it wanted for \"being belligerent\" and fighting the state. She pointed out that no other utilities during that time chose the bankruptcy route.\u003c/p>\n\u003cp>\"PG&E made out like a bandit. So here we are again 18 years later. None of the other utilities are threatening bankruptcy. Only PG&E. Why? Because they got the store the last time, and they're banking on the fact that this PUC will give them the store,\" she said.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11721861/pge-files-for-chapter-11-bankruptcy-protection\">PG&E Files for Chapter 11 Bankruptcy Protection\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11721861/pge-files-for-chapter-11-bankruptcy-protection\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/e7ee4f62-rs11522_452938222-e1548184779248-1020x707.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Hill and other lawmakers agree that the CPUC needs to play a stronger role in what happens next.\u003c/p>\n\u003cp>\"The PUC could come back with some strong requirements on that reorganization that puts the balance of power more in the hands of the ratepayers, more in the hands of the consumer and the victims, rather than in the pockets of PG&E shareholders,\" Hill said.\u003c/p>\n\u003cp>And some critics are going farther. \u003c/p>\n\u003cp>Jamie Court, president of Consumer Watchdog, called on Gov. Gavin Newsom to fire all of the CPUC commissioners, who unanimously voted to pre-approve up to $6.1 billion in credit and loans for PG&E on Monday.\u003c/p>\n\u003cp>“What many people don’t realize is this $6 billion credit line comes on top of the bailout the Legislature approved for PG&E and the other utilities over the 2017 fires,” said Court. “The PUC should be called the PG&E Underwriting Commission, not the Public Utilities Commission, because there was absolutely no public protection in this decision. There wasn’t even an opportunity for the public to comment, it happened so fast.”\u003c/p>\n\u003ch3>Fire Survivors Not Optimistic on Payouts\u003c/h3>\n\u003cp>Sonoma County residents, who lived through the Tubbs Fire in 2017, said the bankruptcy news was not a surprise, and many seemed resigned to the possibility that fire victims may have to get in line with shareholders, stockholders and creditors before getting any payout from PG&E.\u003c/p>\n\u003caside class=\"pullquote alignright\">'I really didn't think [PG&E] needed to declare bankruptcy ... They're hoping that they can pay less than what people might be entitled to after a liability determination.'\u003ccite>James Gallagher, GOP assemblyman representing areas affected by the Camp Fire\u003c/cite>\u003c/aside>\n\u003cp>\"That's how it usually goes. Because of the power that they wield, those entities put themselves in first lien position every chance they get. That's how it tends to work,\" said Ken Cozine, a Santa Rosa resident who is an insurance agent. The flames of the Tubbs Fire missed his house by less than a mile.\u003c/p>\n\u003cp>Tim Rothchild, who was not directly impacted by the fire but knows people who had to evacuate, said, \"PG&E will find a way to not pay out. That’s just going to happen.”\u003c/p>\n\u003cp>Last week, Cal Fire also released its finding that PG&E equipment was not at fault in the Tubbs Fire, which killed 22 people, destroyed more than 5,000 homes and was responsible for as much as $10 billion in insured property losses.\u003c/p>\n\u003cp>Republican Assemblyman James Gallagher, who represents areas affected by the Camp Fire, which killed 86 people and destroyed nearly 14,000 homes, told KQED's Lily Jamali:\u003c/p>\n\u003cp>\"It's really disappointing and frustrating,\" he said. \"I really just didn't think that they needed to declare bankruptcy. They still have viable assets. There's going to be a determination of liability with regard to these wildfires, but that hasn't been determined as of yet.\"\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11721866/pge-bankruptcy-chapter-11-timeline\">Into and Out of and Back Into Bankruptcy Court: A PG&E Timeline\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11721866/pge-bankruptcy-chapter-11-timeline\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/33026838188_4a699d0ace_k-1020x694.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Gallagher is questioning the company's motive.\u003c/p>\n\u003cp>\"I mean, it does seem suspect and I think there's already a lot of distrust of PG&E,\" he said. \"I don't think there's any other way to look at it. They're hoping that they can pay less than what people might be entitled to after a liability determination.\"\u003c/p>\n\u003cp>Other lawmakers weighed in on the latest news.\u003c/p>\n\u003cp>“It’s disheartening that it has come to this,\" said state Sen. Ben Hueso (D-San Diego) in a written statement. \"Bankruptcy is never an ideal option. It will now be crucial for the state to ensure that we are well positioned to protect ratepayers, wildfire victims, the utility workforce and vendors in the process moving forward. My focus and priorities during this process remain the same: ensuring that there is safe, reliable and uninterrupted service for consumers; and that wildfire victims are treated fairly and receive just compensation for their losses.\"\u003c/p>\n\u003cp>\u003cem>Lily Jamali, Marisa Lagos, Steve Mencher, Peter Jon Shuler and Brian Watt contributed to this report.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>PG&E \u003ca href=\"http://bit.ly/pgebankruptcynext\" target=\"_blank\" rel=\"noopener\">just filed for bankruptcy.\u003c/a> Now creditors, shareholders and wildfire survivors will have to wait in a very long line of people waiting to get paid by the utility.\u003c/p>\n\u003cp>In filing for Chapter 11 bankruptcy protection, California’s largest utility is looking to whittle down its mountain of debt while restructuring company operations.\u003c/p>\n\u003cp>This isn’t the first time PG&E has filed for bankruptcy. Ratepayers are still paying off costs from the company’s \u003ca href=\"https://www.kqed.org/news/11721866/pge-bankruptcy-chapter-11-timeline\" target=\"_blank\" rel=\"noopener\">first bankruptcy 18 years ago\u003c/a>.\u003c/p>\n\u003cp> \u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\u003cp>\u003c/p>\n",
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"excerpt": "PG&E just filed for bankruptcy. Now creditors, shareholders and wildfire survivors will have to wait in a very long line of people waiting to get paid by the utility.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>PG&E \u003ca href=\"http://bit.ly/pgebankruptcynext\" target=\"_blank\" rel=\"noopener\">just filed for bankruptcy.\u003c/a> Now creditors, shareholders and wildfire survivors will have to wait in a very long line of people waiting to get paid by the utility.\u003c/p>\n\u003cp>In filing for Chapter 11 bankruptcy protection, California’s largest utility is looking to whittle down its mountain of debt while restructuring company operations.\u003c/p>\n\u003cp>This isn’t the first time PG&E has filed for bankruptcy. Ratepayers are still paying off costs from the company’s \u003ca href=\"https://www.kqed.org/news/11721866/pge-bankruptcy-chapter-11-timeline\" target=\"_blank\" rel=\"noopener\">first bankruptcy 18 years ago\u003c/a>.\u003c/p>\n\u003cp> \u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>Pacific Gas and Electric Co. and its parent company on Tuesday filed for Chapter 11 bankruptcy protection, a move the company \u003ca href=\"https://www.kqed.org/news/11717965/pge-announces-plans-for-bankruptcy-protection\" target=\"_blank\" rel=\"noopener\">insists\u003c/a> is necessary to contend with tens of billions of dollars in potential liabilities growing out of the calamitous wildfire seasons of 2017 and 2018.\u003c/p>\n\u003cp>In a simple \u003ca href=\"https://assets.documentcloud.org/documents/5698778/034138272896.pdf\" target=\"_blank\" rel=\"noopener\">voluntary petition\u003c/a> filed just after midnight Tuesday morning with the U.S. Bankruptcy Court for the Northern District of California in San Francisco, PG&E estimated its liabilities at about $51 billion and its assets at more than $71 billion.\u003c/p>\n\u003cp>Despite that solvency, PG&E officials argued that they need the Chapter 11 protection because they are unable to borrow enough cash to cover operating costs. As part of the filing, PG&E is asking the court to approve $5.5 billion in financing from nine major banks that will allow the company to keep paying its bills.\u003c/p>\n\u003cp>Judge Dennis Montali, who was assigned the case and oversaw PG&E’s previous bankruptcy proceedings 18 years ago, refused to authorize that emergency financing until Thursday. Instead, at a 90-minute hearing packed with dozens of PG&E lawyers and attorneys representing a wide range of other interested parties, Montali mostly dealt with scheduling future court dates.\u003c/p>\n\u003cp>He did, however, temporarily approve two motions thatPG&E argued were central to keeping the business operating: one that will let them use existing bank accounts, and another to allow them continued access to gas and electric markets.\u003c/p>\n\u003cp>“We haven’t even had 14 hours to absorb what was filed,” Montali said, joking at one point that “some of us try to sleep.”\u003c/p>\n\u003cp>And in a somewhat unusual statement for a bankruptcy judge, Montali also pledged to let the public weigh in on the case, even if they are not parties to the bankruptcy proceedings.\u003c/p>\n\u003cp>“I feel very strongly that the public … should be given their day in court and I will not deny it — but I have to deny it today,” he said, adding that the public comments won’t “have to be in response to a specific motion.”\u003c/p>\n\u003cp>“It will be an opportunity to get things off their chest,” he added. “I can’t solve all their problems, but I can at least listen to them.”\u003c/p>\n\u003cp>Before the hearing, PG&E filed more than two dozen other motions and documents with the bankruptcy court, including one asking the court to let it keep paying its employees’ wages and benefits for the next 30 days. The company estimates that it will need $61 million for wages and $72 million for benefit payments over the next month.\u003c/p>\n\u003cp>It also requested $130 million to be paid out to about 14,000 employees in special bonuses for fiscal year 2018. The bonuses are intended to reward managers who prioritize safety, help customers, among other things. The average bonus was $13,000.\u003c/p>\n\u003cp>The company is also asking the court to reject a ruling by federal energy regulators that would force them to keep paying renewable energy suppliers the same rates negotiated before the bankruptcy filing. Montali said all of those motions will be considered at Thursday’s hearing.\u003c/p>\n\u003cp>PG&E is pledging to not just keep the lights on but is also asking the court to allow it to continue customer programs that help promote clean energy and support low-income customers.\u003c/p>\n\u003ch2>Hearing the ‘calls for change’\u003c/h2>\n\u003cp>In a written statement, interim PG&E CEO John Simon said the company will continue to focus on wildfire safety, adding that leaders there have “heard the calls for change” and are committed to emerging from bankruptcy with an “energy system our customers want and deserve.”\u003c/p>\n\u003cp>“Throughout this process, we are fully committed to enhancing our wildfire safety efforts, as well as helping restoration and rebuilding efforts across the communities impacted by the devastating Northern California wildfires,” Simon said. “We also intend to work together with our customers, employees and other stakeholders to create a more sustainable foundation for the delivery of safe, reliable and affordable service in the years ahead.”\u003c/p>\n\u003cp>When it announced its intention on Jan. 14 to file for bankruptcy protection, the state’s biggest utility said two years of horrendously costly wildfires had created such a massive potential debt that it needed a bankruptcy court to help restructure the company for its future viability.\u003c/p>\n\u003cp>The bulk of that feared debt could come in the form of damage awards and settlements with the 6,000-plus plaintiffs who have filed suit against the company so far after the two seasons of fires.\u003c/p>\n\u003cp>PG&E’s view remained unchanged despite last week’s finding that the company’s equipment was not responsible for the Tubbs Fire — the October 2017 blaze that killed 22 people and destroyed about 5,000 homes in Sonoma County.\u003c/p>\n\u003cp>In its statement following the bankruptcy announcement, PG&E noted that it had long believed it was not responsible for the Tubbs Fire and said that the decision to file for Chapter 11 reorganization was reached with the assumption that the utility would not be held liable for that blaze.\u003c/p>\n\u003cp>The company was also unmoved by \u003ca href=\"https://www.prnewswire.com/news-releases/bluemountain-capital-management-llc-delivers-second-open-letter-to-board-of-directors-of-pge-corporation-nyse-pcg--board-of-directors-of-pacific-gas-and-electric-company-300782167.html\" target=\"_blank\" rel=\"noopener\">demands\u003c/a> from one investor, BlueMountain Capital Management, that it shelve the bankruptcy filing. BlueMountain has promised to try to replace PG&E’s board of directors at the company’s annual shareholder meeting in May.\u003c/p>\n\u003ch2>Big shareholder angered by filing\u003c/h2>\n\u003cp>Executives at at the firm, which is one of PG&E’s largest shareholders, reacted angrily to the filing. In a written statement, Blue Mountain officials said they will continue to push for new leadership and would propose a “new slate” of directors by Feb. 21.\u003c/p>\n\u003cp>“Today’s filing is the latest example of how the (PG&E) board continues to fail the company, wildfire victims, customers, employees, creditors, shareholders and the people of California. We urge all stakeholders to support change at PG&E,” Blue Mountain officials said in a written statement.\u003c/p>\n\u003cp>The company is one of 53,878 shareholders that stand to lose out because of the bankruptcy filing.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg decoding=\"async\" src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>State Sen. Bill Dodd (D-Napa), who took the lead last year in negotiating a state response to wildfires, agreed with Blue Mountain executives that the company needs new leadership.\u003c/p>\n\u003cp>“Given its track record of obfuscation and mismanagement, I’m not surprised PG&E claims it can no longer meet its financial obligations,” Dodd said in a written statement.\u003c/p>\n\u003cp>PG&E stock plummeted after a series of 2017 wildfires that swept through Napa, Sonoma and Mendocino counties, as well as Lake, Butte, Solano and Yuba counties. The utility had been warning for a year that it could face bankruptcy if the state didn’t give it some relief.\u003c/p>\n\u003cp>Lawmakers did agree to soften the blow of those 2017 fires by creating a process for the utility to issue ratepayer-backed bonds to pay for costs related to the fires. Less than two months after Gov. Jerry Brown signed that bill, SB 901, the Camp Fire broke out in Butte County on Nov. 8.\u003c/p>\n\u003cp>In less than a day, that blaze became the deadliest and most destructive in state history, killing 86 people and destroying nearly 14,000 homes.\u003c/p>\n\u003cp>Then, in early January, the company’s bond rating was slashed to junk status, making it prohibitively expensive for PG&E to borrow capital. A week later, the company announced in a U.S. Securities and Exchange Commission filing that it intended to file for bankruptcy as early as Jan. 29.\u003c/p>\n\u003cp>Assemblyman Chris Holden, who chairs the Assembly’s utility committee, said early Tuesday that he had hoped to see PG&E avoid bankruptcy but is well aware that the future of the company is now in the hands of a bankruptcy court.\u003c/p>\n\u003ch2>Hoping to protect ‘most vulnerable’\u003c/h2>\n\u003cp>“Our goal all along was to protect the most vulnerable, but now the bankruptcy court will be managing the future of PG&E and its creditors, including the damages of fire victims for which the utility is deemed responsible,” Holden said.\u003c/p>\n\u003cp>He pledged to keep working with lawmakers and the governor to protect victims, provide safe and affordable power for ratepayers and maintain the state’s aggressive renewable energy goals.\u003c/p>\n\u003cp>“We will help to provide direction to the Public Utilities Commission, who will be representing Californian’s interests in the bankruptcy proceeding,” he said.\u003c/p>\n\u003cp>But it’s not clear how much power lawmakers or regulators will have to do those things. While service to the 16 million people in PG&E’s territory will not be interrupted, the filing raises huge questions — for ratepayers who could end up paying more, for the wildfire victims who have sued the utility and for the company’s creditors and shareholders.\u003c/p>\n\u003cp>Even before the bankruptcy filing by the utility and parent company Pacific Gas and Electric Corp., PG&E started skipping some payments to fire victims who reached settlements with the company in a 2015 Butte County blaze.\u003c/p>\n\u003cp>Dodd argued that victims should not have to stay in line behind creditors — as will likely happen in a bankruptcy court.\u003c/p>\n\u003cp>“Wildfire victims shouldn’t have to deal with the uncertainty this causes, which in many respects re-victimizes them,” he said. “Where PG&E has broken the law, it’s unconscionable for it to be protected from paying any of those damaged.”\u003c/p>\n\u003cp>State Sen. Jerry Hill (D-San Mateo), who represents victims from the deadly San Bruno blast that PG&E gas equipment caused in 2010, said that the CPUC needs to ensure that the PG&E reorganization benefits consumers.\u003c/p>\n\u003cp>“I believe the Legislature, and [with] our new governor’s help and assistance and direction, that the PUC could come back with some strong requirements on that reorganization that puts the balance of power more in the hands of the ratepayers, more in the hands of the consumer and the victims, rather than in the pockets of PG&E shareholders,” Hill said.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Pacific Gas and Electric Co. and its parent company on Tuesday filed for Chapter 11 bankruptcy protection, a move the company \u003ca href=\"https://www.kqed.org/news/11717965/pge-announces-plans-for-bankruptcy-protection\" target=\"_blank\" rel=\"noopener\">insists\u003c/a> is necessary to contend with tens of billions of dollars in potential liabilities growing out of the calamitous wildfire seasons of 2017 and 2018.\u003c/p>\n\u003cp>In a simple \u003ca href=\"https://assets.documentcloud.org/documents/5698778/034138272896.pdf\" target=\"_blank\" rel=\"noopener\">voluntary petition\u003c/a> filed just after midnight Tuesday morning with the U.S. Bankruptcy Court for the Northern District of California in San Francisco, PG&E estimated its liabilities at about $51 billion and its assets at more than $71 billion.\u003c/p>\n\u003cp>Despite that solvency, PG&E officials argued that they need the Chapter 11 protection because they are unable to borrow enough cash to cover operating costs. As part of the filing, PG&E is asking the court to approve $5.5 billion in financing from nine major banks that will allow the company to keep paying its bills.\u003c/p>\n\u003cp>Judge Dennis Montali, who was assigned the case and oversaw PG&E’s previous bankruptcy proceedings 18 years ago, refused to authorize that emergency financing until Thursday. Instead, at a 90-minute hearing packed with dozens of PG&E lawyers and attorneys representing a wide range of other interested parties, Montali mostly dealt with scheduling future court dates.\u003c/p>\n\u003cp>He did, however, temporarily approve two motions thatPG&E argued were central to keeping the business operating: one that will let them use existing bank accounts, and another to allow them continued access to gas and electric markets.\u003c/p>\n\u003cp>“We haven’t even had 14 hours to absorb what was filed,” Montali said, joking at one point that “some of us try to sleep.”\u003c/p>\n\u003cp>And in a somewhat unusual statement for a bankruptcy judge, Montali also pledged to let the public weigh in on the case, even if they are not parties to the bankruptcy proceedings.\u003c/p>\n\u003cp>“I feel very strongly that the public … should be given their day in court and I will not deny it — but I have to deny it today,” he said, adding that the public comments won’t “have to be in response to a specific motion.”\u003c/p>\n\u003cp>“It will be an opportunity to get things off their chest,” he added. “I can’t solve all their problems, but I can at least listen to them.”\u003c/p>\n\u003cp>Before the hearing, PG&E filed more than two dozen other motions and documents with the bankruptcy court, including one asking the court to let it keep paying its employees’ wages and benefits for the next 30 days. The company estimates that it will need $61 million for wages and $72 million for benefit payments over the next month.\u003c/p>\n\u003cp>It also requested $130 million to be paid out to about 14,000 employees in special bonuses for fiscal year 2018. The bonuses are intended to reward managers who prioritize safety, help customers, among other things. The average bonus was $13,000.\u003c/p>\n\u003cp>The company is also asking the court to reject a ruling by federal energy regulators that would force them to keep paying renewable energy suppliers the same rates negotiated before the bankruptcy filing. Montali said all of those motions will be considered at Thursday’s hearing.\u003c/p>\n\u003cp>PG&E is pledging to not just keep the lights on but is also asking the court to allow it to continue customer programs that help promote clean energy and support low-income customers.\u003c/p>\n\u003ch2>Hearing the ‘calls for change’\u003c/h2>\n\u003cp>In a written statement, interim PG&E CEO John Simon said the company will continue to focus on wildfire safety, adding that leaders there have “heard the calls for change” and are committed to emerging from bankruptcy with an “energy system our customers want and deserve.”\u003c/p>\n\u003cp>“Throughout this process, we are fully committed to enhancing our wildfire safety efforts, as well as helping restoration and rebuilding efforts across the communities impacted by the devastating Northern California wildfires,” Simon said. “We also intend to work together with our customers, employees and other stakeholders to create a more sustainable foundation for the delivery of safe, reliable and affordable service in the years ahead.”\u003c/p>\n\u003cp>When it announced its intention on Jan. 14 to file for bankruptcy protection, the state’s biggest utility said two years of horrendously costly wildfires had created such a massive potential debt that it needed a bankruptcy court to help restructure the company for its future viability.\u003c/p>\n\u003cp>The bulk of that feared debt could come in the form of damage awards and settlements with the 6,000-plus plaintiffs who have filed suit against the company so far after the two seasons of fires.\u003c/p>\n\u003cp>PG&E’s view remained unchanged despite last week’s finding that the company’s equipment was not responsible for the Tubbs Fire — the October 2017 blaze that killed 22 people and destroyed about 5,000 homes in Sonoma County.\u003c/p>\n\u003cp>In its statement following the bankruptcy announcement, PG&E noted that it had long believed it was not responsible for the Tubbs Fire and said that the decision to file for Chapter 11 reorganization was reached with the assumption that the utility would not be held liable for that blaze.\u003c/p>\n\u003cp>The company was also unmoved by \u003ca href=\"https://www.prnewswire.com/news-releases/bluemountain-capital-management-llc-delivers-second-open-letter-to-board-of-directors-of-pge-corporation-nyse-pcg--board-of-directors-of-pacific-gas-and-electric-company-300782167.html\" target=\"_blank\" rel=\"noopener\">demands\u003c/a> from one investor, BlueMountain Capital Management, that it shelve the bankruptcy filing. BlueMountain has promised to try to replace PG&E’s board of directors at the company’s annual shareholder meeting in May.\u003c/p>\n\u003ch2>Big shareholder angered by filing\u003c/h2>\n\u003cp>Executives at at the firm, which is one of PG&E’s largest shareholders, reacted angrily to the filing. In a written statement, Blue Mountain officials said they will continue to push for new leadership and would propose a “new slate” of directors by Feb. 21.\u003c/p>\n\u003cp>“Today’s filing is the latest example of how the (PG&E) board continues to fail the company, wildfire victims, customers, employees, creditors, shareholders and the people of California. We urge all stakeholders to support change at PG&E,” Blue Mountain officials said in a written statement.\u003c/p>\n\u003cp>The company is one of 53,878 shareholders that stand to lose out because of the bankruptcy filing.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg decoding=\"async\" src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>State Sen. Bill Dodd (D-Napa), who took the lead last year in negotiating a state response to wildfires, agreed with Blue Mountain executives that the company needs new leadership.\u003c/p>\n\u003cp>“Given its track record of obfuscation and mismanagement, I’m not surprised PG&E claims it can no longer meet its financial obligations,” Dodd said in a written statement.\u003c/p>\n\u003cp>PG&E stock plummeted after a series of 2017 wildfires that swept through Napa, Sonoma and Mendocino counties, as well as Lake, Butte, Solano and Yuba counties. The utility had been warning for a year that it could face bankruptcy if the state didn’t give it some relief.\u003c/p>\n\u003cp>Lawmakers did agree to soften the blow of those 2017 fires by creating a process for the utility to issue ratepayer-backed bonds to pay for costs related to the fires. Less than two months after Gov. Jerry Brown signed that bill, SB 901, the Camp Fire broke out in Butte County on Nov. 8.\u003c/p>\n\u003cp>In less than a day, that blaze became the deadliest and most destructive in state history, killing 86 people and destroying nearly 14,000 homes.\u003c/p>\n\u003cp>Then, in early January, the company’s bond rating was slashed to junk status, making it prohibitively expensive for PG&E to borrow capital. A week later, the company announced in a U.S. Securities and Exchange Commission filing that it intended to file for bankruptcy as early as Jan. 29.\u003c/p>\n\u003cp>Assemblyman Chris Holden, who chairs the Assembly’s utility committee, said early Tuesday that he had hoped to see PG&E avoid bankruptcy but is well aware that the future of the company is now in the hands of a bankruptcy court.\u003c/p>\n\u003ch2>Hoping to protect ‘most vulnerable’\u003c/h2>\n\u003cp>“Our goal all along was to protect the most vulnerable, but now the bankruptcy court will be managing the future of PG&E and its creditors, including the damages of fire victims for which the utility is deemed responsible,” Holden said.\u003c/p>\n\u003cp>He pledged to keep working with lawmakers and the governor to protect victims, provide safe and affordable power for ratepayers and maintain the state’s aggressive renewable energy goals.\u003c/p>\n\u003cp>“We will help to provide direction to the Public Utilities Commission, who will be representing Californian’s interests in the bankruptcy proceeding,” he said.\u003c/p>\n\u003cp>But it’s not clear how much power lawmakers or regulators will have to do those things. While service to the 16 million people in PG&E’s territory will not be interrupted, the filing raises huge questions — for ratepayers who could end up paying more, for the wildfire victims who have sued the utility and for the company’s creditors and shareholders.\u003c/p>\n\u003cp>Even before the bankruptcy filing by the utility and parent company Pacific Gas and Electric Corp., PG&E started skipping some payments to fire victims who reached settlements with the company in a 2015 Butte County blaze.\u003c/p>\n\u003cp>Dodd argued that victims should not have to stay in line behind creditors — as will likely happen in a bankruptcy court.\u003c/p>\n\u003cp>“Wildfire victims shouldn’t have to deal with the uncertainty this causes, which in many respects re-victimizes them,” he said. “Where PG&E has broken the law, it’s unconscionable for it to be protected from paying any of those damaged.”\u003c/p>\n\u003cp>State Sen. Jerry Hill (D-San Mateo), who represents victims from the deadly San Bruno blast that PG&E gas equipment caused in 2010, said that the CPUC needs to ensure that the PG&E reorganization benefits consumers.\u003c/p>\n\u003cp>“I believe the Legislature, and [with] our new governor’s help and assistance and direction, that the PUC could come back with some strong requirements on that reorganization that puts the balance of power more in the hands of the ratepayers, more in the hands of the consumer and the victims, rather than in the pockets of PG&E shareholders,” Hill said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>PG&E’s Chapter 11 bankruptcy filing early Tuesday marks the beginning of a long and expensive process that will likely leave ratepayers, wildfire victims, creditors and shareholders ultimately unhappy.\u003c/p>\n\u003cp>That’s because despite promises from state politicians that they will fight for victims of the wildfires caused by PG&E, and for the 16 million people who rely on the utility for their gas and electric service, the whole point of bankruptcy is that no one will be made whole.\u003c/p>\n\u003cp>At its core, Chapter 11 bankruptcy is aimed at allowing a company to restructure its operations and get rid of some debts when it doesn’t have enough money to pay all those obligations.\u003c/p>\n\u003cp>Before the filing, PG&E sought to assure the public that it would continue making safety investments in an attempt to avoid future catastrophic wildfires.\u003c/p>\n\u003cp>“PG&E remains committed to assisting the communities affected by wildfires in Northern California, and its restoration and rebuilding efforts will continue,” the statement said.\u003c/p>\n\u003cp>The company also said it would continue to pay workers and provide health care benefits.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg decoding=\"async\" src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Ratepayers are still paying off costs associated with PG&E’s first bankruptcy 18 years ago.\u003c/p>\n\u003ch3>Here’s what happens now:\u003c/h3>\n\u003cp>The bankruptcy case was assigned to U.S. Bankruptcy Judge Dennis Montali early Tuesday morning. He’s the judge who handled PG&E’s last bankruptcy case in 2001.\u003c/p>\n\u003cp>Montali will have approval power over all major business decisions, such as how money will be spent or how the business will be run. PG&E will file a litany of first-day motions to keep the business running without disruption — including paying wages and critical vendors.\u003c/p>\n\u003cp>Within a few days, the judge will hold a first hearing in which PG&E is expected to ask him to approve $5.5 billion in financing to fund the company’s ongoing operations. PG&E needs the loans because it has no available credit left, according to a U.S. Securities and Exchange Commission filing, and won’t qualify for regular financing since its bonds have been downgraded to junk status. The utility requested that Montali approve $1.5 billion of the financing by Wednesday, Jan. 30, and then the rest at a later hearing.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11716710/ratings-service-slashes-pge-credit-to-junk-status\">Ratings Service Slashes PG&E Credit to Junk Status\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11716710/ratings-service-slashes-pge-credit-to-junk-status\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/GettyImages-1070764816-e1546977212860-1020x696.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Approval of the “debtor in possession” financing could be contentious, since the new creditors would take priority over older lenders in getting their money back. The California Public Utilities Commission, the utility’s regulator, took the unusual step of pre-approving the bankruptcy loans on Monday, right before PG&E could officially enter Chapter 11. Ultimately, other creditors may object to the financing.\u003c/p>\n\u003cp>Assuming that financing is approved, the real process begins. The bankruptcy filing is a reset of sorts, putting all debts accrued before the filing on hold until the judge approves them. That means other creditors and vendors who did work before the filing get in line with everyone else PG&E owes. That includes wildfire victims, creating uncertainty for how or when they might get paid, if ever.\u003c/p>\n\u003cp>Bankruptcy is expected to take two to three years. To exit Chapter 11, the company will have to get a signoff from the judge and also from state regulators, who have the power to approve any increases to rates.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>PG&E’s Chapter 11 bankruptcy filing early Tuesday marks the beginning of a long and expensive process that will likely leave ratepayers, wildfire victims, creditors and shareholders ultimately unhappy.\u003c/p>\n\u003cp>That’s because despite promises from state politicians that they will fight for victims of the wildfires caused by PG&E, and for the 16 million people who rely on the utility for their gas and electric service, the whole point of bankruptcy is that no one will be made whole.\u003c/p>\n\u003cp>At its core, Chapter 11 bankruptcy is aimed at allowing a company to restructure its operations and get rid of some debts when it doesn’t have enough money to pay all those obligations.\u003c/p>\n\u003cp>Before the filing, PG&E sought to assure the public that it would continue making safety investments in an attempt to avoid future catastrophic wildfires.\u003c/p>\n\u003cp>“PG&E remains committed to assisting the communities affected by wildfires in Northern California, and its restoration and rebuilding efforts will continue,” the statement said.\u003c/p>\n\u003cp>The company also said it would continue to pay workers and provide health care benefits.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg decoding=\"async\" src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Ratepayers are still paying off costs associated with PG&E’s first bankruptcy 18 years ago.\u003c/p>\n\u003ch3>Here’s what happens now:\u003c/h3>\n\u003cp>The bankruptcy case was assigned to U.S. Bankruptcy Judge Dennis Montali early Tuesday morning. He’s the judge who handled PG&E’s last bankruptcy case in 2001.\u003c/p>\n\u003cp>Montali will have approval power over all major business decisions, such as how money will be spent or how the business will be run. PG&E will file a litany of first-day motions to keep the business running without disruption — including paying wages and critical vendors.\u003c/p>\n\u003cp>Within a few days, the judge will hold a first hearing in which PG&E is expected to ask him to approve $5.5 billion in financing to fund the company’s ongoing operations. PG&E needs the loans because it has no available credit left, according to a U.S. Securities and Exchange Commission filing, and won’t qualify for regular financing since its bonds have been downgraded to junk status. The utility requested that Montali approve $1.5 billion of the financing by Wednesday, Jan. 30, and then the rest at a later hearing.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11716710/ratings-service-slashes-pge-credit-to-junk-status\">Ratings Service Slashes PG&E Credit to Junk Status\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11716710/ratings-service-slashes-pge-credit-to-junk-status\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/GettyImages-1070764816-e1546977212860-1020x696.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Approval of the “debtor in possession” financing could be contentious, since the new creditors would take priority over older lenders in getting their money back. The California Public Utilities Commission, the utility’s regulator, took the unusual step of pre-approving the bankruptcy loans on Monday, right before PG&E could officially enter Chapter 11. Ultimately, other creditors may object to the financing.\u003c/p>\n\u003cp>Assuming that financing is approved, the real process begins. The bankruptcy filing is a reset of sorts, putting all debts accrued before the filing on hold until the judge approves them. That means other creditors and vendors who did work before the filing get in line with everyone else PG&E owes. That includes wildfire victims, creating uncertainty for how or when they might get paid, if ever.\u003c/p>\n\u003cp>Bankruptcy is expected to take two to three years. To exit Chapter 11, the company will have to get a signoff from the judge and also from state regulators, who have the power to approve any increases to rates.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>Utility regulators unanimously approved a measure Monday afternoon allowing Pacific Gas and Electric to obtain up to $6.1 billion in loans and credit if the company files for bankruptcy.\u003c/p>\n\u003cp>Protesters yelled \"shame!\" as commissioners voted at the raucous meeting.\u003c/p>\n\u003cp>The utility is still solvent, according to its most recent filings with the U.S. Securities and Exchange Commission. What it doesn't have access to is credit. As the amount of money PG&E could owe wildfire victims has grown, \u003ca href=\"https://www.kqed.org/news/11716710/ratings-service-slashes-pge-credit-to-junk-status\" target=\"_blank\" rel=\"noopener\">PG&E's credit rating has plunged\u003c/a>.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>If the utility files for bankruptcy, one of the first things it will probably do is ask a bankruptcy judge to approve $5 billion in financing to allow the company to continue operations. The California Public Utilities Commission voted today to say that it approves of that financing.\u003c/p>\n\u003cp>Without “timely” bankruptcy financing, “this Commission faces a substantial risk that the public health and safety of California will be severely impaired,” wrote CPUC President Michael Picker in a filing proposing that the CPUC approve PG&E’s request.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Someone will eventually have to pay the money back. Although a bankruptcy judge signs off on spending and operating decisions, because of state law he or she can't automatically pass on those costs to ratepayers. \u003c/p>\n\u003cp>Even with the vote, the CPUC still would have to approve how much of the debt ratepayers would have to pay for at a later time.\u003c/p>\n\u003cfigure id=\"attachment_11722019\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/CPUCMtg-800x533.jpg\" alt=\"Activists from the No PG&E Bailout coalition protest at the end of an emergency CPUC meeting on Jan. 28, 2019.\" width=\"800\" height=\"533\" class=\"size-medium wp-image-11722019\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/01/CPUCMtg-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/CPUCMtg-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/CPUCMtg-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/CPUCMtg-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/CPUCMtg.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Activists from the No PG&E Bailout coalition protest at the end of an emergency CPUC meeting on Jan. 28, 2019. \u003ccite>(Sheraz Sadiq/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Critics say the vote was unnecessary in the first place, and did not need to occur before the utility files for bankruptcy.\u003c/p>\n\u003cp>\"There are no facts on the record that show that this is an emergency,\" said former CPUC President Loretta Lynch. \u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"The PUC is acting in service of PG&E's self-created emergency to smooth the way for their bankruptcy filing, and even more grievously, to help them shelter their assets from the other creditors, like the victims and the workers, by giving first dibs on all of PG&E assets to Wall Street bankers.\"\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Utility regulators unanimously approved a measure Monday afternoon allowing Pacific Gas and Electric to obtain up to $6.1 billion in loans and credit if the company files for bankruptcy.\u003c/p>\n\u003cp>Protesters yelled \"shame!\" as commissioners voted at the raucous meeting.\u003c/p>\n\u003cp>The utility is still solvent, according to its most recent filings with the U.S. Securities and Exchange Commission. What it doesn't have access to is credit. As the amount of money PG&E could owe wildfire victims has grown, \u003ca href=\"https://www.kqed.org/news/11716710/ratings-service-slashes-pge-credit-to-junk-status\" target=\"_blank\" rel=\"noopener\">PG&E's credit rating has plunged\u003c/a>.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>If the utility files for bankruptcy, one of the first things it will probably do is ask a bankruptcy judge to approve $5 billion in financing to allow the company to continue operations. The California Public Utilities Commission voted today to say that it approves of that financing.\u003c/p>\n\u003cp>Without “timely” bankruptcy financing, “this Commission faces a substantial risk that the public health and safety of California will be severely impaired,” wrote CPUC President Michael Picker in a filing proposing that the CPUC approve PG&E’s request.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Someone will eventually have to pay the money back. Although a bankruptcy judge signs off on spending and operating decisions, because of state law he or she can't automatically pass on those costs to ratepayers. \u003c/p>\n\u003cp>Even with the vote, the CPUC still would have to approve how much of the debt ratepayers would have to pay for at a later time.\u003c/p>\n\u003cfigure id=\"attachment_11722019\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/CPUCMtg-800x533.jpg\" alt=\"Activists from the No PG&E Bailout coalition protest at the end of an emergency CPUC meeting on Jan. 28, 2019.\" width=\"800\" height=\"533\" class=\"size-medium wp-image-11722019\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/01/CPUCMtg-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/CPUCMtg-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/CPUCMtg-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/CPUCMtg-1200x800.jpg 1200w, https://ww2.kqed.org/app/uploads/sites/10/2019/01/CPUCMtg.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Activists from the No PG&E Bailout coalition protest at the end of an emergency CPUC meeting on Jan. 28, 2019. \u003ccite>(Sheraz Sadiq/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Critics say the vote was unnecessary in the first place, and did not need to occur before the utility files for bankruptcy.\u003c/p>\n\u003cp>\"There are no facts on the record that show that this is an emergency,\" said former CPUC President Loretta Lynch. \u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"The PUC is acting in service of PG&E's self-created emergency to smooth the way for their bankruptcy filing, and even more grievously, to help them shelter their assets from the other creditors, like the victims and the workers, by giving first dibs on all of PG&E assets to Wall Street bankers.\"\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Insurance claims from California’s deadly November 2018 wildfires have topped $11.4 billion, making the series of fires one of the most expensive in state history, officials said Monday.\u003c/p>\n\u003cp>More than $8 billion of those losses are from the fire that leveled the town of Paradise, killing 86 people and destroying nearly 14,000 homes, state Insurance Commissioner Ricardo Lara said. Roughly $3 billion worth of damage is related to two Southern California wildfires that ignited during the same week.\u003c/p>\n\u003cp>“We have a long way to go before we can feel whole again,” Lara said after announcing the numbers.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg decoding=\"async\" src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>The $11.4 billion total is slightly below the losses claimed from 2017 wildfires that ripped through Northern California wine country in October and Southern California in December.\u003c/p>\n\u003cp>While far more houses were destroyed in last year’s wildfires, home values are much lower in rural California communities, officials said last year.\u003c/p>\n\u003cp>The losses could keep rising. In all, wildfire insurance claims in California last year neared $12.4 billion, Lara said.\u003c/p>\n\u003cp>The new numbers come as Pacific Gas & Electric Corp., the nation’s largest utility, \u003ca href=\"https://www.kqed.org/news/tag/pge\" target=\"_blank\" rel=\"noopener\">prepares to file for bankruptcy\u003c/a> as early as Tuesday. State officials have not yet determined the cause of all of last year’s wildfires, but PG&E equipment is suspected in the Paradise blaze.\u003c/p>\n\u003cp>California law makes utilities entirely liable for damage from wildfires sparked by their equipment, even if the utility isn’t found negligent. PG&E has said it faces billions in possible damages from fires.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Regardless of what happens with the utility, California’s insurers are prepared to pay out all the claims, most of which were filed by residential property owners, Lara said.\u003c/p>\n\u003cp>“We are confident that the insurers have the money to make sure that we make people whole,” Lara said.\u003c/p>\n\u003cp>\u003c/p>\n",
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"excerpt": "More than $8 billion of that total stems from the Camp Fire, which leveled the town of Paradise, killing 86 people and destroying nearly 14,000 homes.",
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"title": "Insurance Claims From California's Deadly November Wildfires Top $11.4 Billion | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Insurance claims from California’s deadly November 2018 wildfires have topped $11.4 billion, making the series of fires one of the most expensive in state history, officials said Monday.\u003c/p>\n\u003cp>More than $8 billion of those losses are from the fire that leveled the town of Paradise, killing 86 people and destroying nearly 14,000 homes, state Insurance Commissioner Ricardo Lara said. Roughly $3 billion worth of damage is related to two Southern California wildfires that ignited during the same week.\u003c/p>\n\u003cp>“We have a long way to go before we can feel whole again,” Lara said after announcing the numbers.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/tag/pge\">PG&E Bankruptcy: How We Got Here\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/tag/pge\">\u003cimg decoding=\"async\" src=\"https://u.s.kqed.net/2019/01/14/PGEWorkersLift.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>The $11.4 billion total is slightly below the losses claimed from 2017 wildfires that ripped through Northern California wine country in October and Southern California in December.\u003c/p>\n\u003cp>While far more houses were destroyed in last year’s wildfires, home values are much lower in rural California communities, officials said last year.\u003c/p>\n\u003cp>The losses could keep rising. In all, wildfire insurance claims in California last year neared $12.4 billion, Lara said.\u003c/p>\n\u003cp>The new numbers come as Pacific Gas & Electric Corp., the nation’s largest utility, \u003ca href=\"https://www.kqed.org/news/tag/pge\" target=\"_blank\" rel=\"noopener\">prepares to file for bankruptcy\u003c/a> as early as Tuesday. State officials have not yet determined the cause of all of last year’s wildfires, but PG&E equipment is suspected in the Paradise blaze.\u003c/p>\n\u003cp>California law makes utilities entirely liable for damage from wildfires sparked by their equipment, even if the utility isn’t found negligent. PG&E has said it faces billions in possible damages from fires.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Regardless of what happens with the utility, California’s insurers are prepared to pay out all the claims, most of which were filed by residential property owners, Lara said.\u003c/p>\n\u003cp>“We are confident that the insurers have the money to make sure that we make people whole,” Lara said.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"title": "Middle-Class Californians: Here’s What’s in Gov. Newsom’s Budget for You",
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"headTitle": "Middle-Class Californians: Here’s What’s in Gov. Newsom’s Budget for You | KQED",
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"content": "\u003cp>California’s middle class is reaching a breaking point. Especially when it comes to the high cost of housing. So says the state’s new governor, Gavin Newsom.\u003c/p>\n\u003cp>“Housing. This is the issue,” Newsom said at a press conference earlier this month, unveiling his \u003ca href=\"http://www.ebudget.ca.gov/FullBudgetSummary.pdf\" target=\"_blank\" rel=\"noopener\">first budget proposal as governor\u003c/a>. “Unless we get serious about it, this state will continue to lose its middle class, and the dream will be limited to fewer and fewer people.”\u003c/p>\n\u003cp>Middle-class Californians could find some relief under Newsom’s $209 billion budget, which includes new spending aimed at getting cities to approve more housing. Other proposals could bring down the cost of health care and higher education for Californians who currently make too much to qualify for state help.\u003c/p>\n\u003cp>But middle-class California families won’t find much help shouldering other expenses, like the looming cost of caring for aging family members.\u003c/p>\n\u003cp>What does “middle-class” even mean in California?\u003c/p>\n\u003cp>In a state where families of four earning up to $117,400 meet the federal government’s definition of “low-income” in \u003ca href=\"https://www.nytimes.com/2018/06/30/us/bay-area-housing-market.html\" target=\"_blank\" rel=\"noopener\">certain regions\u003c/a>, there may be no definitive answer on what qualifies as “middle-class.”\u003c/p>\n\u003cp>But according to a recent \u003ca href=\"http://www.pewresearch.org/fact-tank/2018/09/06/the-american-middle-class-is-stable-in-size-but-losing-ground-financially-to-upper-income-families/\" target=\"_blank\" rel=\"noopener\">Pew Research Center analysis\u003c/a> of government wage data, families of four in California can be considered middle-class if they make anywhere between $59,702 and $179,105 per year.\u003c/p>\n\u003cp>Direct subsidies in the governor’s budget tend to go toward Californians making less. Newsom noted that no state has a higher \u003ca href=\"https://laist.com/2018/09/12/california_still_has_the_nations_highest_poverty_rate_blame_housing_costs.php\" target=\"_blank\" rel=\"noopener\">poverty rate\u003c/a> than California. He wants to try to lower it by giving higher tax refunds to full-time workers earning up to $15 an hour through an expanded version of the state’s earned income tax credit.\u003c/p>\n\u003cp>He’s also proposing a large boost in spending to subsidize the development of affordable housing for low-income residents. His budget calls for increasing the state’s low-income housing tax credit from $80 million to $500 million per year.\u003c/p>\n\u003cp>The budget also includes a $500-million bump to the California Housing Finance Agency’s mixed‑income loan program, which finances developments that include units for moderate-income residents.\u003c/p>\n\u003cp>https://www.youtube.com/embed/SrWC9XnKPKI?start=3865\u003c/p>\n\u003ch3>Housing\u003c/h3>\n\u003cp>The governor’s budget doesn’t propose similar housing subsidies for most middle-class Californians. Matthew Lewis, director of communications for the pro-housing group \u003ca href=\"https://cayimby.org/about/\" target=\"_blank\" rel=\"noopener\">California YIMBY\u003c/a>, said that approach makes sense.\u003c/p>\n\u003cp>“As a matter of policy, you don’t provide subsidies to people who are making over $80,000 a year,” said Lewis. “But in California, that’s the middle class.”\u003c/p>\n\u003cp>Lewis doesn’t think Newsom can subsidize his way toward a solution to the state’s housing crisis. Instead, he and other housing advocates like what Newsom’s budget does to push local governments to approve more housing in general.\u003c/p>\n\u003cp>“It appears that Governor Newsom is himself a YIMBY,” said Lewis.\u003c/p>\n\u003cp>Under Newsom’s budget, cities that meet housing goals set by the state would be rewarded with money from a $500 million state fund, and they could use that money for whatever they want.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11719937/controversial-bay-area-housing-plan-heads-to-state-legislature\">Controversial Bay Area Housing Plan Heads to State Legislature\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11719937/controversial-bay-area-housing-plan-heads-to-state-legislature\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/GettyImages-1046169802-1020x680.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>“In other words, he’s starting to build funds that would actually financially encourage cities to build more housing,” said \u003ca href=\"https://beaconecon.com/people/bio/christopher_thornberg\" target=\"_blank\" rel=\"noopener\">Chris Thornberg of Beacon Economics\u003c/a>. He said that should help address California’s housing supply problems. “That’s really helpful for California’s middle class.”\u003c/p>\n\u003cp>Newsom has also discussed punishing cities that fail to meet their housing goals by withholding transit funding. It’s an idea that has not gone over well with local governments.\u003c/p>\n\u003cp>In \u003ca href=\"http://www.cacities.org/Top/News/Press-Releases/2019/League-of-California-Cities-Issues-Statement-on-Go\">a statement\u003c/a> on the governor’s budget, League of California Cities executive director Carolyn Coleman said her organization was concerned about proposals “that would raid local transportation funds that voters have repeatedly dedicated to local communities.”\u003c/p>\n\u003ch3>Health Care\u003c/h3>\n\u003cp>The words “middle-class” only appear once in Newsom’s \u003ca href=\"http://www.ebudget.ca.gov/FullBudgetSummary.pdf\" target=\"_blank\" rel=\"noopener\">280-page budget proposal\u003c/a>. They show up under his plan to expand health care subsidies.\u003c/p>\n\u003cp>One Californian encouraged by that move is Heather Altman. She works as an environmental consultant out of her home in Long Beach. She gets to be her own boss, and she makes decent money.\u003c/p>\n\u003cp>“I guess I do consider myself middle class,” Altman said.\u003c/p>\n\u003cp>She would not have started her business back in 2014 without Obamacare. It meant she could finally afford her own health insurance. She no longer needed to get it through an employer. She has asthma, a pre-existing condition that made individual coverage unaffordable in the past.\u003c/p>\n\u003cp>Back in 2014, “My premium was $356 for a platinum plan,” Altman said. “I thought that was super affordable.”\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11716531/newsoms-first-act-as-governor-expanding-health-coverage\">Newsom’s First Act as Governor? Expanding Health Coverage\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11716531/newsoms-first-act-as-governor-expanding-health-coverage\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/NewsomInaugWaving-1020x691.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Premiums for the same plan have more than doubled, to $761 per month. Altman has switched to a plan with a lower premium. But add in the routine costs of treating her asthma, and she’s spending more than $800 a month.\u003c/p>\n\u003cp>“That’s very difficult to budget,” Altman said. “And it certainly isn’t sustainable.”\u003c/p>\n\u003cp>Currently, individuals who earn up to $48,560 a year are eligible for \u003ca href=\"https://www.healthforcalifornia.com/covered-california/income-limits\" target=\"_blank\" rel=\"noopener\">subsidized premiums\u003c/a> through Covered California. Altman makes too much to qualify. But Newsom’s budget calls for raising annual income limits for individuals to $72,840 and for families of four to $150,600.\u003c/p>\n\u003cp>“Had that subsidy bracket been in place when I started my business, there would have been years that I would have qualified,” Altman said. “I’m hopeful that some of these changes may make a meaningful difference in my financial bottom line.”\u003c/p>\n\u003cp>\u003cimg loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-11721624\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Healthcare-Subsidies-chart-800x618.jpg\" alt=\"\" width=\"800\" height=\"618\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Healthcare-Subsidies-chart-800x618.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Healthcare-Subsidies-chart-160x124.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Healthcare-Subsidies-chart-1020x788.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Healthcare-Subsidies-chart-1200x927.jpg 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Healthcare-Subsidies-chart.jpg 1650w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003c/p>\n\u003cp>Altman has shared her story with the advocacy organization \u003ca href=\"https://health-access.org/about-us/staff/\" target=\"_blank\" rel=\"noopener\">Health Access California\u003c/a>. Executive director Anthony Wright said Newsom’s budget is promising for Californians like her.\u003c/p>\n\u003cp>“Current law has cliffs where the assistance runs out,” Wright said. “The extra help will allow some families to get coverage that otherwise couldn’t afford it.”\u003c/p>\n\u003cp>Newsom plans to pay for the expanded subsidies by creating a state version of the Affordable Care Act’s federal mandate to either buy health insurance or pay a tax penalty (which has gone to $0 under the Trump administration).\u003c/p>\n\u003cp>In \u003ca href=\"https://lao.ca.gov/Publications/Report/3916?utm_source=laowww&utm_medium=email&utm_campaign=3916\" target=\"_blank\" rel=\"noopener\">a report\u003c/a> on the governor’s budget, the California Legislative Analyst’s Office notes that this approach could create a funding conflict. If the state tax penalty works, it should drive more people to buy insurance. But then, “less funding would be available for premium subsidies.”\u003c/p>\n\u003ch3>College\u003c/h3>\n\u003cp>Higher education is another big drain on middle-class budgets. Newsom’s budget calls for a tuition freeze at state universities, earmarking $300 million for the California State University system and $240 million for the University of California system each year.\u003c/p>\n\u003cp>University of Southern California professor of sociology \u003ca href=\"https://dornsife.usc.edu/pere/pastor/\" target=\"_blank\" rel=\"noopener\">Manuel Pastor\u003c/a> said middle-class families could also get a break under Newsom’s $40 million plan to make a second year of community college tuition-free.\u003c/p>\n\u003cp>“If you can make the first and second year free, you’re lowering the cost for a lot of middle class parents of a four-year education,” Pastor said.\u003c/p>\n\u003ch3>The Cost of Caring for Family Members, Young and Old\u003c/h3>\n\u003cp>Universal preschool and six months of paid family leave for parents are still on Newsom’s agenda. But this budget won’t pay for those goals.\u003c/p>\n\u003cp>Stanford University assistant professor of health research and policy \u003ca href=\"https://web.stanford.edu/~mrossin/\" target=\"_blank\" rel=\"noopener\">Maya Rossin-Slater\u003c/a> said California’s existing paid family leave law could be strengthened. Right now, many parents don’t use it.\u003c/p>\n\u003cp>Her research \u003ca href=\"https://web.stanford.edu/~mrossin/AKMdraft_Oct2018.pdf\" target=\"_blank\" rel=\"noopener\">shows California workers\u003c/a> at smaller, lower-paying companies are less likely to take paid family leave than higher-paid workers. That could be, in part, because workers fear that under existing law, their jobs won’t be protected while they’re out.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11708405/pricey-real-estate-prompts-scammers-to-target-senior-homeowners\">Pricey Real Estate Prompts Scammers to Target Senior Homeowners\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11708405/pricey-real-estate-prompts-scammers-to-target-senior-homeowners\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/11/Homes-1038x576.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>“Job protection, I think, is crucial,” Rossin-Slater said, “Especially for middle-class families that might worry about not having a job to return to after the leave.”\u003c/p>\n\u003cp>Longer paid family leave could help alleviate some of the high cost of child care, which often costs middle-class parents more than \u003ca href=\"https://www.scpr.org/news/2016/04/13/59477/childcare-costs-more-than-college-tuition-in-calif/\" target=\"_blank\" rel=\"noopener\">college tuition\u003c/a>.\u003c/p>\n\u003cp>California’s population is aging. With more and more baby boomers retiring, the cost of caring for elderly parents will also start to stack up for more middle class families.\u003c/p>\n\u003cp>The governor’s budget includes a 15.2 percent increase in general fund spending for in-home supportive services. But USC gerontology professor \u003ca href=\"http://gero.usc.edu/faculty/donna-benton-ph-d/\" target=\"_blank\" rel=\"noopener\">Donna Benton\u003c/a> said most Californians don’t qualify for the low-income program. So they’re stuck spending thousands of dollars a year on caregiving.\u003c/p>\n\u003cp>Out-of-pocket costs eat up 20 percent of caregivers’ income, on average. Some caregivers have to quit their jobs.\u003c/p>\n\u003cp>“Family members in general sacrifice a lot,” said Benton. “And then when they go to look for services for themselves, usually they’re not going to qualify.”\u003c/p>\n\u003cp>Benton was part of a state task force that issued a \u003ca href=\"http://tffc.usc.edu/2018/07/02/final-report-from-the-california-task-force-on-family-caregiving-2/\" target=\"_blank\" rel=\"noopener\">number of recommendations\u003c/a> to help ease the cost. Among their ideas was a tax credit for caregiving expenses, as well as more funding for resource centers throughout the state that serve caregivers regardless of income level.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>When Benton looked through Newsom’s budget, she said, “I didn’t see anything that, I would say, touched on any of the recommendations.”\u003c/p>\n\u003cp>Long Beach environmental consultant Heather Altman lives near her parents, who are now in their 70s. She said they’re in a good financial position right now. But she wonders if they’ll end up needing her help in the future.\u003c/p>\n\u003cp>“Should it come to that time, then yeah, that responsibility falls to me,” she said.\u003c/p>\n\u003cp>The same will be true for millions of middle-class Californians.\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://www.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">The California Dream series\u003c/a> is a statewide media collaboration of CALmatters, KPBS, KPCC, KQED and Capital Public Radio with support from the Corporation for Public Broadcasting, the James Irvine Foundation and the College Futures Foundation.\u003c/em>\u003c/p>\n\u003cp>\u003cimg loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-11660142\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/04/CADreamBanner.jpg%20https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/04/CADreamBanner.jpg\" alt=\"\" width=\"1867\" height=\"512\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner.jpg 1867w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-160x44.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-800x219.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-1020x280.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-1180x324.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-960x263.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-240x66.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-375x103.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-520x143.jpg 520w\" sizes=\"auto, (max-width: 1867px) 100vw, 1867px\">\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"title": "Middle-Class Californians: Here’s What’s in Gov. Newsom’s Budget for You | KQED",
"description": "Health insurance and higher education could become more affordable — but probably not the cost of caring for aging family members.",
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"headline": "Middle-Class Californians: Here’s What’s in Gov. Newsom’s Budget for You",
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"nprByline": "\u003cstrong>\u003ca href=\"https://www.scpr.org/about/people/staff/david-wagner\">David Wagner\u003c/a>\u003c/strong>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>California’s middle class is reaching a breaking point. Especially when it comes to the high cost of housing. So says the state’s new governor, Gavin Newsom.\u003c/p>\n\u003cp>“Housing. This is the issue,” Newsom said at a press conference earlier this month, unveiling his \u003ca href=\"http://www.ebudget.ca.gov/FullBudgetSummary.pdf\" target=\"_blank\" rel=\"noopener\">first budget proposal as governor\u003c/a>. “Unless we get serious about it, this state will continue to lose its middle class, and the dream will be limited to fewer and fewer people.”\u003c/p>\n\u003cp>Middle-class Californians could find some relief under Newsom’s $209 billion budget, which includes new spending aimed at getting cities to approve more housing. Other proposals could bring down the cost of health care and higher education for Californians who currently make too much to qualify for state help.\u003c/p>\n\u003cp>But middle-class California families won’t find much help shouldering other expenses, like the looming cost of caring for aging family members.\u003c/p>\n\u003cp>What does “middle-class” even mean in California?\u003c/p>\n\u003cp>In a state where families of four earning up to $117,400 meet the federal government’s definition of “low-income” in \u003ca href=\"https://www.nytimes.com/2018/06/30/us/bay-area-housing-market.html\" target=\"_blank\" rel=\"noopener\">certain regions\u003c/a>, there may be no definitive answer on what qualifies as “middle-class.”\u003c/p>\n\u003cp>But according to a recent \u003ca href=\"http://www.pewresearch.org/fact-tank/2018/09/06/the-american-middle-class-is-stable-in-size-but-losing-ground-financially-to-upper-income-families/\" target=\"_blank\" rel=\"noopener\">Pew Research Center analysis\u003c/a> of government wage data, families of four in California can be considered middle-class if they make anywhere between $59,702 and $179,105 per year.\u003c/p>\n\u003cp>Direct subsidies in the governor’s budget tend to go toward Californians making less. Newsom noted that no state has a higher \u003ca href=\"https://laist.com/2018/09/12/california_still_has_the_nations_highest_poverty_rate_blame_housing_costs.php\" target=\"_blank\" rel=\"noopener\">poverty rate\u003c/a> than California. He wants to try to lower it by giving higher tax refunds to full-time workers earning up to $15 an hour through an expanded version of the state’s earned income tax credit.\u003c/p>\n\u003cp>He’s also proposing a large boost in spending to subsidize the development of affordable housing for low-income residents. His budget calls for increasing the state’s low-income housing tax credit from $80 million to $500 million per year.\u003c/p>\n\u003cp>The budget also includes a $500-million bump to the California Housing Finance Agency’s mixed‑income loan program, which finances developments that include units for moderate-income residents.\u003c/p>\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/SrWC9XnKPKI?start=3865'\n title='//www.youtube.com/embed/SrWC9XnKPKI?start=3865'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003ch3>Housing\u003c/h3>\n\u003cp>The governor’s budget doesn’t propose similar housing subsidies for most middle-class Californians. Matthew Lewis, director of communications for the pro-housing group \u003ca href=\"https://cayimby.org/about/\" target=\"_blank\" rel=\"noopener\">California YIMBY\u003c/a>, said that approach makes sense.\u003c/p>\n\u003cp>“As a matter of policy, you don’t provide subsidies to people who are making over $80,000 a year,” said Lewis. “But in California, that’s the middle class.”\u003c/p>\n\u003cp>Lewis doesn’t think Newsom can subsidize his way toward a solution to the state’s housing crisis. Instead, he and other housing advocates like what Newsom’s budget does to push local governments to approve more housing in general.\u003c/p>\n\u003cp>“It appears that Governor Newsom is himself a YIMBY,” said Lewis.\u003c/p>\n\u003cp>Under Newsom’s budget, cities that meet housing goals set by the state would be rewarded with money from a $500 million state fund, and they could use that money for whatever they want.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11719937/controversial-bay-area-housing-plan-heads-to-state-legislature\">Controversial Bay Area Housing Plan Heads to State Legislature\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11719937/controversial-bay-area-housing-plan-heads-to-state-legislature\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/GettyImages-1046169802-1020x680.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>“In other words, he’s starting to build funds that would actually financially encourage cities to build more housing,” said \u003ca href=\"https://beaconecon.com/people/bio/christopher_thornberg\" target=\"_blank\" rel=\"noopener\">Chris Thornberg of Beacon Economics\u003c/a>. He said that should help address California’s housing supply problems. “That’s really helpful for California’s middle class.”\u003c/p>\n\u003cp>Newsom has also discussed punishing cities that fail to meet their housing goals by withholding transit funding. It’s an idea that has not gone over well with local governments.\u003c/p>\n\u003cp>In \u003ca href=\"http://www.cacities.org/Top/News/Press-Releases/2019/League-of-California-Cities-Issues-Statement-on-Go\">a statement\u003c/a> on the governor’s budget, League of California Cities executive director Carolyn Coleman said her organization was concerned about proposals “that would raid local transportation funds that voters have repeatedly dedicated to local communities.”\u003c/p>\n\u003ch3>Health Care\u003c/h3>\n\u003cp>The words “middle-class” only appear once in Newsom’s \u003ca href=\"http://www.ebudget.ca.gov/FullBudgetSummary.pdf\" target=\"_blank\" rel=\"noopener\">280-page budget proposal\u003c/a>. They show up under his plan to expand health care subsidies.\u003c/p>\n\u003cp>One Californian encouraged by that move is Heather Altman. She works as an environmental consultant out of her home in Long Beach. She gets to be her own boss, and she makes decent money.\u003c/p>\n\u003cp>“I guess I do consider myself middle class,” Altman said.\u003c/p>\n\u003cp>She would not have started her business back in 2014 without Obamacare. It meant she could finally afford her own health insurance. She no longer needed to get it through an employer. She has asthma, a pre-existing condition that made individual coverage unaffordable in the past.\u003c/p>\n\u003cp>Back in 2014, “My premium was $356 for a platinum plan,” Altman said. “I thought that was super affordable.”\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11716531/newsoms-first-act-as-governor-expanding-health-coverage\">Newsom’s First Act as Governor? Expanding Health Coverage\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11716531/newsoms-first-act-as-governor-expanding-health-coverage\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/NewsomInaugWaving-1020x691.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Premiums for the same plan have more than doubled, to $761 per month. Altman has switched to a plan with a lower premium. But add in the routine costs of treating her asthma, and she’s spending more than $800 a month.\u003c/p>\n\u003cp>“That’s very difficult to budget,” Altman said. “And it certainly isn’t sustainable.”\u003c/p>\n\u003cp>Currently, individuals who earn up to $48,560 a year are eligible for \u003ca href=\"https://www.healthforcalifornia.com/covered-california/income-limits\" target=\"_blank\" rel=\"noopener\">subsidized premiums\u003c/a> through Covered California. Altman makes too much to qualify. But Newsom’s budget calls for raising annual income limits for individuals to $72,840 and for families of four to $150,600.\u003c/p>\n\u003cp>“Had that subsidy bracket been in place when I started my business, there would have been years that I would have qualified,” Altman said. “I’m hopeful that some of these changes may make a meaningful difference in my financial bottom line.”\u003c/p>\n\u003cp>\u003cimg loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-11721624\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Healthcare-Subsidies-chart-800x618.jpg\" alt=\"\" width=\"800\" height=\"618\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Healthcare-Subsidies-chart-800x618.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Healthcare-Subsidies-chart-160x124.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Healthcare-Subsidies-chart-1020x788.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Healthcare-Subsidies-chart-1200x927.jpg 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Healthcare-Subsidies-chart.jpg 1650w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003c/p>\n\u003cp>Altman has shared her story with the advocacy organization \u003ca href=\"https://health-access.org/about-us/staff/\" target=\"_blank\" rel=\"noopener\">Health Access California\u003c/a>. Executive director Anthony Wright said Newsom’s budget is promising for Californians like her.\u003c/p>\n\u003cp>“Current law has cliffs where the assistance runs out,” Wright said. “The extra help will allow some families to get coverage that otherwise couldn’t afford it.”\u003c/p>\n\u003cp>Newsom plans to pay for the expanded subsidies by creating a state version of the Affordable Care Act’s federal mandate to either buy health insurance or pay a tax penalty (which has gone to $0 under the Trump administration).\u003c/p>\n\u003cp>In \u003ca href=\"https://lao.ca.gov/Publications/Report/3916?utm_source=laowww&utm_medium=email&utm_campaign=3916\" target=\"_blank\" rel=\"noopener\">a report\u003c/a> on the governor’s budget, the California Legislative Analyst’s Office notes that this approach could create a funding conflict. If the state tax penalty works, it should drive more people to buy insurance. But then, “less funding would be available for premium subsidies.”\u003c/p>\n\u003ch3>College\u003c/h3>\n\u003cp>Higher education is another big drain on middle-class budgets. Newsom’s budget calls for a tuition freeze at state universities, earmarking $300 million for the California State University system and $240 million for the University of California system each year.\u003c/p>\n\u003cp>University of Southern California professor of sociology \u003ca href=\"https://dornsife.usc.edu/pere/pastor/\" target=\"_blank\" rel=\"noopener\">Manuel Pastor\u003c/a> said middle-class families could also get a break under Newsom’s $40 million plan to make a second year of community college tuition-free.\u003c/p>\n\u003cp>“If you can make the first and second year free, you’re lowering the cost for a lot of middle class parents of a four-year education,” Pastor said.\u003c/p>\n\u003ch3>The Cost of Caring for Family Members, Young and Old\u003c/h3>\n\u003cp>Universal preschool and six months of paid family leave for parents are still on Newsom’s agenda. But this budget won’t pay for those goals.\u003c/p>\n\u003cp>Stanford University assistant professor of health research and policy \u003ca href=\"https://web.stanford.edu/~mrossin/\" target=\"_blank\" rel=\"noopener\">Maya Rossin-Slater\u003c/a> said California’s existing paid family leave law could be strengthened. Right now, many parents don’t use it.\u003c/p>\n\u003cp>Her research \u003ca href=\"https://web.stanford.edu/~mrossin/AKMdraft_Oct2018.pdf\" target=\"_blank\" rel=\"noopener\">shows California workers\u003c/a> at smaller, lower-paying companies are less likely to take paid family leave than higher-paid workers. That could be, in part, because workers fear that under existing law, their jobs won’t be protected while they’re out.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11708405/pricey-real-estate-prompts-scammers-to-target-senior-homeowners\">Pricey Real Estate Prompts Scammers to Target Senior Homeowners\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11708405/pricey-real-estate-prompts-scammers-to-target-senior-homeowners\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/11/Homes-1038x576.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>“Job protection, I think, is crucial,” Rossin-Slater said, “Especially for middle-class families that might worry about not having a job to return to after the leave.”\u003c/p>\n\u003cp>Longer paid family leave could help alleviate some of the high cost of child care, which often costs middle-class parents more than \u003ca href=\"https://www.scpr.org/news/2016/04/13/59477/childcare-costs-more-than-college-tuition-in-calif/\" target=\"_blank\" rel=\"noopener\">college tuition\u003c/a>.\u003c/p>\n\u003cp>California’s population is aging. With more and more baby boomers retiring, the cost of caring for elderly parents will also start to stack up for more middle class families.\u003c/p>\n\u003cp>The governor’s budget includes a 15.2 percent increase in general fund spending for in-home supportive services. But USC gerontology professor \u003ca href=\"http://gero.usc.edu/faculty/donna-benton-ph-d/\" target=\"_blank\" rel=\"noopener\">Donna Benton\u003c/a> said most Californians don’t qualify for the low-income program. So they’re stuck spending thousands of dollars a year on caregiving.\u003c/p>\n\u003cp>Out-of-pocket costs eat up 20 percent of caregivers’ income, on average. Some caregivers have to quit their jobs.\u003c/p>\n\u003cp>“Family members in general sacrifice a lot,” said Benton. “And then when they go to look for services for themselves, usually they’re not going to qualify.”\u003c/p>\n\u003cp>Benton was part of a state task force that issued a \u003ca href=\"http://tffc.usc.edu/2018/07/02/final-report-from-the-california-task-force-on-family-caregiving-2/\" target=\"_blank\" rel=\"noopener\">number of recommendations\u003c/a> to help ease the cost. Among their ideas was a tax credit for caregiving expenses, as well as more funding for resource centers throughout the state that serve caregivers regardless of income level.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>When Benton looked through Newsom’s budget, she said, “I didn’t see anything that, I would say, touched on any of the recommendations.”\u003c/p>\n\u003cp>Long Beach environmental consultant Heather Altman lives near her parents, who are now in their 70s. She said they’re in a good financial position right now. But she wonders if they’ll end up needing her help in the future.\u003c/p>\n\u003cp>“Should it come to that time, then yeah, that responsibility falls to me,” she said.\u003c/p>\n\u003cp>The same will be true for millions of middle-class Californians.\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://www.kqed.org/news/series/californiadream/\" target=\"_blank\" rel=\"noopener\">The California Dream series\u003c/a> is a statewide media collaboration of CALmatters, KPBS, KPCC, KQED and Capital Public Radio with support from the Corporation for Public Broadcasting, the James Irvine Foundation and the College Futures Foundation.\u003c/em>\u003c/p>\n\u003cp>\u003cimg loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-11660142\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/04/CADreamBanner.jpg%20https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/04/CADreamBanner.jpg\" alt=\"\" width=\"1867\" height=\"512\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner.jpg 1867w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-160x44.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-800x219.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-1020x280.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-1180x324.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-960x263.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-240x66.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-375x103.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/10/2018/04/CADreamBanner-520x143.jpg 520w\" sizes=\"auto, (max-width: 1867px) 100vw, 1867px\">\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"headTitle": "Why Do These 4 Myths About Homelessness Persist? | KQED",
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"content": "\u003cp>This time of year, many California counties are conducting point-in-time counts to figure out who is homeless and why. The U.S. Department of Housing and Urban Development requires these counts from any community that wants federal funding for housing and other services for the homeless.\u003c/p>\n\u003cp>But if governments and service providers have developed a more data-based understanding of who’s living in shelters, vehicles and on the streets, the rest of us often operate off our gut instincts. Are you willing to check yourself?\u003c/p>\n\u003ch3>Myth #1: They’re not from around here\u003c/h3>\n\u003cp>Experts say this is one of the most common misconceptions about homelessness, and it is often paired with another idea, explained Mark Shotwell, executive director of the \u003ca href=\"http://rittercenter.org\" target=\"_blank\" rel=\"noopener\">Ritter Center\u003c/a> in Marin County. \u003c/p>\n\u003cp>“I’ve worked in four Bay Area counties, and in all of the counties that I’ve worked in, the belief is that if you create certain kinds of services, it will attract people who are homeless to come from other communities,” Shotwell said.\u003c/p>\n\u003cp>Generally, no. Shotwell directs your attention to the last point-in-time survey in Marin County in \u003ca href=\"https://www.marinhhs.org/point-time-count-marin\" target=\"_blank\" rel=\"noopener\">2017\u003c/a>, which he said is not substantially different from the survey two years before.\u003c/p>\n\u003cfigure id=\"attachment_11721464\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721464\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.18.18-PM-800x320.png\" alt=\"Mark Shotwell of the Ritter Center in San Rafael said there are many different reasons why people become homeless in Marin County, but most homeless people are locals.\" width=\"800\" height=\"320\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.18.18-PM-800x320.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.18.18-PM-160x64.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.18.18-PM-1020x408.png 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.18.18-PM.png 1154w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Mark Shotwell of the Ritter Center in San Rafael said there are many different reasons why people become homeless in Marin County, but most homeless people are locals. \u003ccite>(Source: Applied Survey Research. (2017). Marin County Homeless Census & Survey. )\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Shotwell said “a series of unfortunate events” explained each neighbor’s story, though the particulars vary: a lost job, mental or physical disability, addiction, divorce, domestic violence, eviction, etc. The rising cost of housing plays a key role, too. “Losing one paycheck, losing one job, really could result in instability.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Tempted to insist Marin County is an outlier? Let’s look at a couple more California counties that top the lists in any discussion of homelessness in California.\u003c/p>\n\u003cfigure id=\"attachment_11721469\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721469\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.36.05-PM-800x343.png\" alt=\"In 2017, 69% of respondents reported they were living in San Francisco at the time they most recently became homeless. This is similar to the survey findings in 2015.\" width=\"800\" height=\"343\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.36.05-PM-800x343.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.36.05-PM-160x69.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.36.05-PM-1020x437.png 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.36.05-PM-1200x515.png 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.36.05-PM.png 1250w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">In 2017, 69% of respondents reported they were living in \u003ca href=\"http://hsh.sfgov.org/wp-content/uploads/2017/06/2017-SF-Point-in-Time-Count-General-FINAL-6.21.17.pdf\" target=\"_blank\" rel=\"noopener\">San Francisco County\u003c/a> at the time they most recently became homeless. This is similar to the survey findings in 2015. \u003ccite>(Source: Applied Survey Research. (2017). San Francisco County Homeless Count & Survey.)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cfigure id=\"attachment_11721470\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721470\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.42.41-PM-800x297.png\" alt=\""What about the remaining group that wasn't living locally? Where do they come from?"\" width=\"800\" height=\"297\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.42.41-PM-800x297.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.42.41-PM-160x59.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.42.41-PM-1020x378.png 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.42.41-PM-1200x445.png 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.42.41-PM.png 1876w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">“What about the remaining group that wasn’t living locally? Where do they come from?” \u003ccite>(Source: Applied Survey Research. (2017). San Francisco Homeless Count. )\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Of the roughly 30 percent of homeless people surveyed in San Francisco two years ago, the bulk of those not from San Francisco were from California. That may not technically be anybody’s idea of a “neighbor,” but it does suggest a recalibration is in order for those of harboring suspicions “they” came “here” from far away.\u003c/p>\n\u003cfigure id=\"attachment_11721468\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721468\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.33.05-PM-800x900.png\" alt=\"Los Angeles County has the largest homeless population by far of any county in California.\" width=\"800\" height=\"900\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.33.05-PM-800x900.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.33.05-PM-160x180.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.33.05-PM.png 876w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">\u003ca href=\"https://www.lahsa.org/documents?id=2059-2018-greater-los-angeles-homeless-count-presentation.pdf\" target=\"_blank\" rel=\"noopener\">Los Angeles County\u003c/a> has the largest homeless population by far of any county in California. \u003ccite>(Source: Los Angeles Homeless Services Authority)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch3>Myth #2: Homeless people don’t want to be housed\u003c/h3>\n\u003cp>One or two personal \u003ca href=\"https://www.kqed.org/news/10729141/reaching-out-to-the-homeless-woman-sleeping-on-your-san-francisco-doorstep\" target=\"_blank\" rel=\"noopener\">conversations with individuals\u003c/a> who insist on the freedom of the streets does not necessarily give you an accurate picture of how most homeless people feel.\u003c/p>\n\u003cp>For one thing, social service providers say, the isolation and physical hardships of homelessness can prompt many people to find ways to justify their suffering or at least resign themselves to it, for sheer psychological survival (see Myth #3 for more on that). For another thing, living on the streets brings with it \u003ca href=\"https://www.kqed.org/news/10761651/a-year-after-the-jungle-san-joses-new-approach-to-homelessness\" target=\"_blank\" rel=\"noopener\">logistical complications\u003c/a> that make it hard to imagine getting off the streets.\u003c/p>\n\u003cp>Summer-Lee Bettencourt used to be homeless herself before social service workers helped her get back on her feet. She was sold to human traffickers as a teenager, and while she eventually managed to escape, she needed help building a new life for herself.\u003c/p>\n\u003cfigure id=\"attachment_11721496\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721496\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/RS34894_IMG_4511-qut-800x540.jpg\" alt='Summer Lee-Bettencourt, outside EHC LifeBuilders James Boccardo Reception Center in San Jose. Once homeless herself, Lee-Bettencourt now helps others get off the streets. \"It’s actually a breath of fresh air being able to give something back that people did for you, you know?\"' width=\"800\" height=\"540\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34894_IMG_4511-qut-800x540.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34894_IMG_4511-qut-160x108.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34894_IMG_4511-qut-1020x688.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34894_IMG_4511-qut-1200x809.jpg 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34894_IMG_4511-qut.jpg 1920w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Summer Lee-Bettencourt, outside EHC LifeBuilders James Boccardo Reception Center in San Jose. Once homeless herself, Lee-Bettencourt now helps others get off the streets. “It’s actually a breath of fresh air being able to give something back that people did for you, you know?” \u003ccite>(Rachael Myrow/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>She works now for \u003ca href=\"https://www.sccgov.org/sites/osh/NeedAssistance/Veterans/Pages/home.aspx\" target=\"_blank\" rel=\"noopener\">Supportive Services for Veteran Families\u003c/a> in Santa Clara County, and explained that the longer you are homeless, the harder it is to conceptualize what steps are necessary to build, or rebuild, a life in housing.\u003c/p>\n\u003cp>“A lot of people, they don’t know where to go. They don’t know what to do. And they need help being connected to housing first. I mean, how can you go on an interview if you can’t take a shower? If you don’t have clothing? So they feel lost. They just need a lot of support, compassion, understanding,” Lee Bettencourt said.\u003c/p>\n\u003cfigure id=\"attachment_11721526\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721526\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.20.41-AM-800x333.png\" alt=\"Many of the people surveyed in Santa Clara County in recent years said they were new to homelessness.\" width=\"800\" height=\"333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.20.41-AM-800x333.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.20.41-AM-160x67.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.20.41-AM-1020x425.png 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.20.41-AM-1200x500.png 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.20.41-AM.png 1450w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Many of the people surveyed in \u003ca href=\"https://www.sccgov.org/sites/osh/ContinuumofCare/ReportsandPublications/Documents/2017%20Santa%20Clara%20County%20Homeless%20Census%20and%20Survey%20Report.pdf\" target=\"_blank\" rel=\"noopener\">Santa Clara County\u003c/a> in recent years said they were new to homelessness. \u003ccite>(Source: Applied Survey Research. (2009-2017). Santa Clara County Homeless Census and Survey.)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch3>Myth #3: Mentally ill people could pull themselves out of homelessness if they just agreed to take their medications\u003c/h3>\n\u003cp>Dr. Jeffrey Seal is the medical director for \u003ca href=\"https://www.achch.org\" target=\"_blank\" rel=\"noopener\">Alameda County Healthcare for the Homeless\u003c/a>, and he’s also a psychiatrist who helps manage the Trust Clinic in Alameda County.\u003c/p>\n\u003cp>“Every morning, we have a line of patients waiting to be seen here, and you can imagine: schizophrenia, bipolar — and one that commonly gets left out when we’re talking about homeless populations is the trauma related disorders,” Dr. Seal said. “You know, a lot of people who have suffered a significant amount of trauma since early childhood end up out there. If you could possibly think of the environment that would make their symptoms worse, this would be it. Right? Put somebody into a park. Make the situation unpredictable. Put them at risk of violence.”\u003c/p>\n\u003cfigure id=\"attachment_11721502\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11721502 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-5.27.51-PM-800x265.png\" alt=\"22 percent of those surveyed in Alameda County two years ago said mental health services might have prevented their homelessness.\" width=\"800\" height=\"265\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-5.27.51-PM-800x265.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-5.27.51-PM-160x53.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-5.27.51-PM-1020x337.png 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-5.27.51-PM-1200x397.png 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-5.27.51-PM-1920x635.png 1920w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Of those surveyed in \u003ca href=\"http://everyonehome.org/wp-content/uploads/2017/06/ALAEMDA_7-1.pdf\" target=\"_blank\" rel=\"noopener\">Alameda County\u003c/a> two years ago, 22 percent said mental health services might have prevented their homelessness. \u003ccite>(Source: Applied Survey Research. (2017). Alameda County Homeless Census & Survey. )\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>He added, “Psychiatric medications were tested on people who have stable environments, they’re housed, they’re middle class people who were put into randomized, controlled trials. So [medications] can certainly be helpful, but it’s really a joke to say that psychiatric medications would lift someone out of homelessness.”\u003c/p>\n\u003cp>He’s not arguing against medications, but seeing them as a solution outside the context of other supportive services.\u003c/p>\n\u003ch3>Myth #4: There’s nothing I can do to help\u003c/h3>\n\u003cp>Think you’ve got nothing to offer other than your spare change? Think again, said Donna Colombo, executive director of the \u003ca href=\"http://www.trinitycenterwc.org\" target=\"_blank\" rel=\"noopener\">Trinity Center\u003c/a> in Contra Costa County. \u003c/p>\n\u003cp>“Come talk to me. All homeless service organizations need volunteers to help do a lot of things. All you need to do is show up,” Colombo said. \u003c/p>\n\u003cfigure id=\"attachment_11721492\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721492\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/RS34893_IMG_0215-qut-800x600.jpg\" alt='81 year-old Horace Crawford volunteers at Trinity Center in Walnut Creek. The retired architectural engineer considers himself and his Ford truck \"on call to help anybody who needs to get someplace, or to move something, or to get some part time day work.\"' width=\"800\" height=\"600\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34893_IMG_0215-qut-800x600.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34893_IMG_0215-qut-160x120.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34893_IMG_0215-qut-1020x765.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34893_IMG_0215-qut-1200x900.jpg 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34893_IMG_0215-qut.jpg 1920w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">81-year-old Horace Crawford volunteers at Trinity Center in Walnut Creek. The retired architectural engineer considers himself and his Ford truck “on call to help anybody who needs to get someplace, or to move something, or to get some part time day work.” \u003ccite>(Ryan Levi/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Horace Crawford has been showing up for about ten years now. The 81-year-old retired architectural engineer said many people get overwhelmed by the “big picture” and fail to see how they can deliver practical help in all sorts of ways.\u003c/p>\n\u003cp>For the past few years, Crawford has made himself personally available to homeless individuals in the area, using his truck to help move people’s belongings or drive someone to a medical appointment. He’s also taken it upon himself to coordinate day work for homeless people, building a local network between them and those who want to help.\u003c/p>\n\u003cp>He recognizes there can be an intimidation factor to working so closely with homeless people.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>“People are a bit afraid of working with a homeless person, but if they know me, and I vouch for someone, they’re OK. Result is, I’ve got a bunch of friends that I’ve never had before!” he said. \u003c/p>\n\u003cfigure id=\"attachment_11721530\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721530\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.36.49-AM-800x389.png\" alt=\"The 2018 Point In Time count identified 627 more individuals experiencing homelessness than the previous year's count.\" width=\"800\" height=\"389\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.36.49-AM-800x389.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.36.49-AM-160x78.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.36.49-AM-1020x496.png 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.36.49-AM-1200x583.png 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.36.49-AM.png 1412w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The 2018 Point In Time count identified 627 more individuals experiencing homelessness in \u003ca href=\"https://cchealth.org/h3/coc/pdf/PIT-report-2018.pdf\" target=\"_blank\" rel=\"noopener\">Contra Costa County\u003c/a> than the previous year’s count. \u003ccite>(Source: Contra Costa Health Housing & Homeless)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\n",
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"title": "Why Do These 4 Myths About Homelessness Persist? | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>This time of year, many California counties are conducting point-in-time counts to figure out who is homeless and why. The U.S. Department of Housing and Urban Development requires these counts from any community that wants federal funding for housing and other services for the homeless.\u003c/p>\n\u003cp>But if governments and service providers have developed a more data-based understanding of who’s living in shelters, vehicles and on the streets, the rest of us often operate off our gut instincts. Are you willing to check yourself?\u003c/p>\n\u003ch3>Myth #1: They’re not from around here\u003c/h3>\n\u003cp>Experts say this is one of the most common misconceptions about homelessness, and it is often paired with another idea, explained Mark Shotwell, executive director of the \u003ca href=\"http://rittercenter.org\" target=\"_blank\" rel=\"noopener\">Ritter Center\u003c/a> in Marin County. \u003c/p>\n\u003cp>“I’ve worked in four Bay Area counties, and in all of the counties that I’ve worked in, the belief is that if you create certain kinds of services, it will attract people who are homeless to come from other communities,” Shotwell said.\u003c/p>\n\u003cp>Generally, no. Shotwell directs your attention to the last point-in-time survey in Marin County in \u003ca href=\"https://www.marinhhs.org/point-time-count-marin\" target=\"_blank\" rel=\"noopener\">2017\u003c/a>, which he said is not substantially different from the survey two years before.\u003c/p>\n\u003cfigure id=\"attachment_11721464\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721464\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.18.18-PM-800x320.png\" alt=\"Mark Shotwell of the Ritter Center in San Rafael said there are many different reasons why people become homeless in Marin County, but most homeless people are locals.\" width=\"800\" height=\"320\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.18.18-PM-800x320.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.18.18-PM-160x64.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.18.18-PM-1020x408.png 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.18.18-PM.png 1154w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Mark Shotwell of the Ritter Center in San Rafael said there are many different reasons why people become homeless in Marin County, but most homeless people are locals. \u003ccite>(Source: Applied Survey Research. (2017). Marin County Homeless Census & Survey. )\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Shotwell said “a series of unfortunate events” explained each neighbor’s story, though the particulars vary: a lost job, mental or physical disability, addiction, divorce, domestic violence, eviction, etc. The rising cost of housing plays a key role, too. “Losing one paycheck, losing one job, really could result in instability.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Tempted to insist Marin County is an outlier? Let’s look at a couple more California counties that top the lists in any discussion of homelessness in California.\u003c/p>\n\u003cfigure id=\"attachment_11721469\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721469\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.36.05-PM-800x343.png\" alt=\"In 2017, 69% of respondents reported they were living in San Francisco at the time they most recently became homeless. This is similar to the survey findings in 2015.\" width=\"800\" height=\"343\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.36.05-PM-800x343.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.36.05-PM-160x69.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.36.05-PM-1020x437.png 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.36.05-PM-1200x515.png 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.36.05-PM.png 1250w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">In 2017, 69% of respondents reported they were living in \u003ca href=\"http://hsh.sfgov.org/wp-content/uploads/2017/06/2017-SF-Point-in-Time-Count-General-FINAL-6.21.17.pdf\" target=\"_blank\" rel=\"noopener\">San Francisco County\u003c/a> at the time they most recently became homeless. This is similar to the survey findings in 2015. \u003ccite>(Source: Applied Survey Research. (2017). San Francisco County Homeless Count & Survey.)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cfigure id=\"attachment_11721470\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721470\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.42.41-PM-800x297.png\" alt=\""What about the remaining group that wasn't living locally? Where do they come from?"\" width=\"800\" height=\"297\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.42.41-PM-800x297.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.42.41-PM-160x59.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.42.41-PM-1020x378.png 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.42.41-PM-1200x445.png 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.42.41-PM.png 1876w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">“What about the remaining group that wasn’t living locally? Where do they come from?” \u003ccite>(Source: Applied Survey Research. (2017). San Francisco Homeless Count. )\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Of the roughly 30 percent of homeless people surveyed in San Francisco two years ago, the bulk of those not from San Francisco were from California. That may not technically be anybody’s idea of a “neighbor,” but it does suggest a recalibration is in order for those of harboring suspicions “they” came “here” from far away.\u003c/p>\n\u003cfigure id=\"attachment_11721468\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721468\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.33.05-PM-800x900.png\" alt=\"Los Angeles County has the largest homeless population by far of any county in California.\" width=\"800\" height=\"900\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.33.05-PM-800x900.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.33.05-PM-160x180.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-3.33.05-PM.png 876w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">\u003ca href=\"https://www.lahsa.org/documents?id=2059-2018-greater-los-angeles-homeless-count-presentation.pdf\" target=\"_blank\" rel=\"noopener\">Los Angeles County\u003c/a> has the largest homeless population by far of any county in California. \u003ccite>(Source: Los Angeles Homeless Services Authority)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch3>Myth #2: Homeless people don’t want to be housed\u003c/h3>\n\u003cp>One or two personal \u003ca href=\"https://www.kqed.org/news/10729141/reaching-out-to-the-homeless-woman-sleeping-on-your-san-francisco-doorstep\" target=\"_blank\" rel=\"noopener\">conversations with individuals\u003c/a> who insist on the freedom of the streets does not necessarily give you an accurate picture of how most homeless people feel.\u003c/p>\n\u003cp>For one thing, social service providers say, the isolation and physical hardships of homelessness can prompt many people to find ways to justify their suffering or at least resign themselves to it, for sheer psychological survival (see Myth #3 for more on that). For another thing, living on the streets brings with it \u003ca href=\"https://www.kqed.org/news/10761651/a-year-after-the-jungle-san-joses-new-approach-to-homelessness\" target=\"_blank\" rel=\"noopener\">logistical complications\u003c/a> that make it hard to imagine getting off the streets.\u003c/p>\n\u003cp>Summer-Lee Bettencourt used to be homeless herself before social service workers helped her get back on her feet. She was sold to human traffickers as a teenager, and while she eventually managed to escape, she needed help building a new life for herself.\u003c/p>\n\u003cfigure id=\"attachment_11721496\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721496\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/RS34894_IMG_4511-qut-800x540.jpg\" alt='Summer Lee-Bettencourt, outside EHC LifeBuilders James Boccardo Reception Center in San Jose. Once homeless herself, Lee-Bettencourt now helps others get off the streets. \"It’s actually a breath of fresh air being able to give something back that people did for you, you know?\"' width=\"800\" height=\"540\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34894_IMG_4511-qut-800x540.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34894_IMG_4511-qut-160x108.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34894_IMG_4511-qut-1020x688.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34894_IMG_4511-qut-1200x809.jpg 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34894_IMG_4511-qut.jpg 1920w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Summer Lee-Bettencourt, outside EHC LifeBuilders James Boccardo Reception Center in San Jose. Once homeless herself, Lee-Bettencourt now helps others get off the streets. “It’s actually a breath of fresh air being able to give something back that people did for you, you know?” \u003ccite>(Rachael Myrow/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>She works now for \u003ca href=\"https://www.sccgov.org/sites/osh/NeedAssistance/Veterans/Pages/home.aspx\" target=\"_blank\" rel=\"noopener\">Supportive Services for Veteran Families\u003c/a> in Santa Clara County, and explained that the longer you are homeless, the harder it is to conceptualize what steps are necessary to build, or rebuild, a life in housing.\u003c/p>\n\u003cp>“A lot of people, they don’t know where to go. They don’t know what to do. And they need help being connected to housing first. I mean, how can you go on an interview if you can’t take a shower? If you don’t have clothing? So they feel lost. They just need a lot of support, compassion, understanding,” Lee Bettencourt said.\u003c/p>\n\u003cfigure id=\"attachment_11721526\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721526\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.20.41-AM-800x333.png\" alt=\"Many of the people surveyed in Santa Clara County in recent years said they were new to homelessness.\" width=\"800\" height=\"333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.20.41-AM-800x333.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.20.41-AM-160x67.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.20.41-AM-1020x425.png 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.20.41-AM-1200x500.png 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.20.41-AM.png 1450w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Many of the people surveyed in \u003ca href=\"https://www.sccgov.org/sites/osh/ContinuumofCare/ReportsandPublications/Documents/2017%20Santa%20Clara%20County%20Homeless%20Census%20and%20Survey%20Report.pdf\" target=\"_blank\" rel=\"noopener\">Santa Clara County\u003c/a> in recent years said they were new to homelessness. \u003ccite>(Source: Applied Survey Research. (2009-2017). Santa Clara County Homeless Census and Survey.)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch3>Myth #3: Mentally ill people could pull themselves out of homelessness if they just agreed to take their medications\u003c/h3>\n\u003cp>Dr. Jeffrey Seal is the medical director for \u003ca href=\"https://www.achch.org\" target=\"_blank\" rel=\"noopener\">Alameda County Healthcare for the Homeless\u003c/a>, and he’s also a psychiatrist who helps manage the Trust Clinic in Alameda County.\u003c/p>\n\u003cp>“Every morning, we have a line of patients waiting to be seen here, and you can imagine: schizophrenia, bipolar — and one that commonly gets left out when we’re talking about homeless populations is the trauma related disorders,” Dr. Seal said. “You know, a lot of people who have suffered a significant amount of trauma since early childhood end up out there. If you could possibly think of the environment that would make their symptoms worse, this would be it. Right? Put somebody into a park. Make the situation unpredictable. Put them at risk of violence.”\u003c/p>\n\u003cfigure id=\"attachment_11721502\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11721502 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-5.27.51-PM-800x265.png\" alt=\"22 percent of those surveyed in Alameda County two years ago said mental health services might have prevented their homelessness.\" width=\"800\" height=\"265\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-5.27.51-PM-800x265.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-5.27.51-PM-160x53.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-5.27.51-PM-1020x337.png 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-5.27.51-PM-1200x397.png 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-27-at-5.27.51-PM-1920x635.png 1920w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Of those surveyed in \u003ca href=\"http://everyonehome.org/wp-content/uploads/2017/06/ALAEMDA_7-1.pdf\" target=\"_blank\" rel=\"noopener\">Alameda County\u003c/a> two years ago, 22 percent said mental health services might have prevented their homelessness. \u003ccite>(Source: Applied Survey Research. (2017). Alameda County Homeless Census & Survey. )\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>He added, “Psychiatric medications were tested on people who have stable environments, they’re housed, they’re middle class people who were put into randomized, controlled trials. So [medications] can certainly be helpful, but it’s really a joke to say that psychiatric medications would lift someone out of homelessness.”\u003c/p>\n\u003cp>He’s not arguing against medications, but seeing them as a solution outside the context of other supportive services.\u003c/p>\n\u003ch3>Myth #4: There’s nothing I can do to help\u003c/h3>\n\u003cp>Think you’ve got nothing to offer other than your spare change? Think again, said Donna Colombo, executive director of the \u003ca href=\"http://www.trinitycenterwc.org\" target=\"_blank\" rel=\"noopener\">Trinity Center\u003c/a> in Contra Costa County. \u003c/p>\n\u003cp>“Come talk to me. All homeless service organizations need volunteers to help do a lot of things. All you need to do is show up,” Colombo said. \u003c/p>\n\u003cfigure id=\"attachment_11721492\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721492\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/RS34893_IMG_0215-qut-800x600.jpg\" alt='81 year-old Horace Crawford volunteers at Trinity Center in Walnut Creek. The retired architectural engineer considers himself and his Ford truck \"on call to help anybody who needs to get someplace, or to move something, or to get some part time day work.\"' width=\"800\" height=\"600\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34893_IMG_0215-qut-800x600.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34893_IMG_0215-qut-160x120.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34893_IMG_0215-qut-1020x765.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34893_IMG_0215-qut-1200x900.jpg 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/RS34893_IMG_0215-qut.jpg 1920w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">81-year-old Horace Crawford volunteers at Trinity Center in Walnut Creek. The retired architectural engineer considers himself and his Ford truck “on call to help anybody who needs to get someplace, or to move something, or to get some part time day work.” \u003ccite>(Ryan Levi/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Horace Crawford has been showing up for about ten years now. The 81-year-old retired architectural engineer said many people get overwhelmed by the “big picture” and fail to see how they can deliver practical help in all sorts of ways.\u003c/p>\n\u003cp>For the past few years, Crawford has made himself personally available to homeless individuals in the area, using his truck to help move people’s belongings or drive someone to a medical appointment. He’s also taken it upon himself to coordinate day work for homeless people, building a local network between them and those who want to help.\u003c/p>\n\u003cp>He recognizes there can be an intimidation factor to working so closely with homeless people.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“People are a bit afraid of working with a homeless person, but if they know me, and I vouch for someone, they’re OK. Result is, I’ve got a bunch of friends that I’ve never had before!” he said. \u003c/p>\n\u003cfigure id=\"attachment_11721530\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11721530\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.36.49-AM-800x389.png\" alt=\"The 2018 Point In Time count identified 627 more individuals experiencing homelessness than the previous year's count.\" width=\"800\" height=\"389\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.36.49-AM-800x389.png 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.36.49-AM-160x78.png 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.36.49-AM-1020x496.png 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.36.49-AM-1200x583.png 1200w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/Screen-Shot-2019-01-28-at-8.36.49-AM.png 1412w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The 2018 Point In Time count identified 627 more individuals experiencing homelessness in \u003ca href=\"https://cchealth.org/h3/coc/pdf/PIT-report-2018.pdf\" target=\"_blank\" rel=\"noopener\">Contra Costa County\u003c/a> than the previous year’s count. \u003ccite>(Source: Contra Costa Health Housing & Homeless)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Former Gov. Jerry Brown, who pushed to rein in public employee pension costs, has started drawing on his $120,000-a-year pension after decades of public service.\u003c/p>\n\u003cp>Brown officially retired Jan. 7 to \u003ca href=\"https://calmatters.org/articles/colusa-county-welcomes-jerry-brown/\" rel=\"noopener\" target=\"_blank\">his ranch in Colusa County\u003c/a> and began drawing $9,994.29 a month after 33.5 years of service, according to Amy Morgan, a spokeswoman for the \u003ca href=\"https://www.calpers.ca.gov/\" rel=\"noopener\" target=\"_blank\">California Public Employees’ Retirement System\u003c/a>.\u003c/p>\n\u003cp>Brown, the son of former Gov. Pat Brown, began his political career on the Los Angeles Community College Board of Trustees. Over a five-decade span, he served as secretary of state, mayor of Oakland, attorney general and a record four terms as governor, all of which counted toward his service credit at CalPERS.\u003c/p>\n\u003cp>Brown retired at age 80, which is 22 years older than the average retirement age of state workers. Among his legacies is a rebalancing of state pensions for hundreds of thousands of public employees, a \u003ca href=\"https://calmatters.org/articles/jerry-brown-pension-reform-supreme-court-unions/\" rel=\"noopener\" target=\"_blank\">fight\u003c/a> he took all the way to the California Supreme Court.\u003c/p>\n\u003cp>Payments for public employee retirement benefits are putting pressure on government budgets throughout cities, counties and school districts in the state, so much so that Brown once called pension reform a “\u003ca href=\"https://calmatters.org/articles/california-retirement-pension-debt-explainer/\" rel=\"noopener\" target=\"_blank\">moral obligation\u003c/a>.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>For comparison, Brown’s pension falls in the middle of recent governors. According to CalPERS, Gov. Arnold Schwarzenegger waived his salary so he isn’t collecting a pension. Gov. Gray Davis retired in 2003 with 30 years of service and collects $140,767 a year. Gov. Pete Wilson retired in 1999 with about 12 years of service and receives $77,051 a year.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://calmatters.org/\" rel=\"noopener\" target=\"_blank\">CALmatters.org\u003c/a> is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\n",
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"excerpt": "Jerry Brown, who pushed to rein in public employee pension costs, officially retires with $120,000-a-year pension after decades of state service.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Former Gov. Jerry Brown, who pushed to rein in public employee pension costs, has started drawing on his $120,000-a-year pension after decades of public service.\u003c/p>\n\u003cp>Brown officially retired Jan. 7 to \u003ca href=\"https://calmatters.org/articles/colusa-county-welcomes-jerry-brown/\" rel=\"noopener\" target=\"_blank\">his ranch in Colusa County\u003c/a> and began drawing $9,994.29 a month after 33.5 years of service, according to Amy Morgan, a spokeswoman for the \u003ca href=\"https://www.calpers.ca.gov/\" rel=\"noopener\" target=\"_blank\">California Public Employees’ Retirement System\u003c/a>.\u003c/p>\n\u003cp>Brown, the son of former Gov. Pat Brown, began his political career on the Los Angeles Community College Board of Trustees. Over a five-decade span, he served as secretary of state, mayor of Oakland, attorney general and a record four terms as governor, all of which counted toward his service credit at CalPERS.\u003c/p>\n\u003cp>Brown retired at age 80, which is 22 years older than the average retirement age of state workers. Among his legacies is a rebalancing of state pensions for hundreds of thousands of public employees, a \u003ca href=\"https://calmatters.org/articles/jerry-brown-pension-reform-supreme-court-unions/\" rel=\"noopener\" target=\"_blank\">fight\u003c/a> he took all the way to the California Supreme Court.\u003c/p>\n\u003cp>Payments for public employee retirement benefits are putting pressure on government budgets throughout cities, counties and school districts in the state, so much so that Brown once called pension reform a “\u003ca href=\"https://calmatters.org/articles/california-retirement-pension-debt-explainer/\" rel=\"noopener\" target=\"_blank\">moral obligation\u003c/a>.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>For comparison, Brown’s pension falls in the middle of recent governors. According to CalPERS, Gov. Arnold Schwarzenegger waived his salary so he isn’t collecting a pension. Gov. Gray Davis retired in 2003 with 30 years of service and collects $140,767 a year. Gov. Pete Wilson retired in 1999 with about 12 years of service and receives $77,051 a year.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://calmatters.org/\" rel=\"noopener\" target=\"_blank\">CALmatters.org\u003c/a> is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>",
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"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
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"soldout": {
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