highest

The mysterious name behind the highest mountain peak in Los Angeles

I wanted to know more the moment I read “Sister Elsie Peak” on an old map.

I discovered the name while researching trails around Mt. Lukens, the highest peak in Los Angeles proper. Looking at the peak’s location on a historical map of L.A. County’s mountains, I noticed that it was previously named for a woman I’d never heard of.

Few of Southern California’s mountain peaks are named after women, so Sister Elsie Peak stuck with me. Who was she? And why was her mountain renamed to instead honor local leader Theodore Lukens?

In this edition of The Wild, our weekly outdoors newsletter, I will take you with me on my arduous journey to find the origins of the first known name for Mt. Lukens. Over the past week, I enlisted help from multiple librarians, map experts and one gracious historian (who you’ll meet later). We all scoured newspaper archives and history books, catching the fever of curiosity that seems to consume anyone who tries to find out who Sister Elsie was.

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What we collectively found was this: Sister Elsie was most likely not a real person, and her legend was most widely shared in the early 20th century by a local landowner who was known to embellish, including claiming that Josephine Peak near Mt. Lukens was named after his daughter. (It wasn’t.)

There appears to be no record anywhere — in newspapers, in history books, in Catholic Church records — as to the existence of a Sister Elsie or, as you’ll learn more about below, an alleged orphanage, ranch or school that she ran in the Tujunga area for Indigenous children or the broader Indigenous community.

In that same vein, I want to call something out before we begin: Stories about the relationships between colonizers and Indigenous peoples often get romanticized (see: Thanksgiving), with storytellers and early historians intentionally leaving out any details of forced assimilation or the American genocide. I cannot report anything concrete about how Sister Elsie actually treated Indigenous people in large part because I don’t believe she was real.

As the sun sets, a deep orange color fills the sky over a busy city, as seen from tree-lined mountains

The sunset as viewed from a trail near Mt. Lukens in the San Gabriel Mountains.

(Jaclyn Cosgrove / Los Angeles Times)

OK, I’ve held you in suspense long enough. Let’s jump into everything under the actual sun that I could find about Sister Elsie Peak.

To begin my reporting, I contacted Times editorial library director Cary Schneider, who is always eager to help me with prospective stories (i.e. highly specific internet rabbit holes I’ve fallen down).

Cary found what might be the earliest mention in a local newspaper: A story in the Monrovia Daily News on April 23, 1910, in which a writer mentions a new trail leading to Sister Elsie Peak, but tragically gives no details of its namesake.

Next, we jump 20 years into the future when The Times and the Pasadena Star-News covered the dedication of Sister Elsie’s Well in Tujunga. Both publications described the well in their stories on April 28, 1930, as named after “the Catholic nun” who ran a school for Indigenous children “in the days of the Spanish missions.” The Times called her a “pioneer nun and teacher.”

Three large metal radio towers and two short brown buildings with metal fencing on a dirt patch; a hiker and dog walk nearby

Multiple radio towers and other infrastructure sit at the top of Mt. Lukens, as seen on a 2022 hike there.

(Jaclyn Cosgrove / Los Angeles Times)

The dedication occurred on the land of Philip Begue, a crucial character to understand in the Sister Elsie legend, as he’s believed to have either spread or made up the story, according to a local historian. Begue’s family bought land around Tujunga and La Crescenta in 1882, and later, Begue was an early pioneer and one of the first forest rangers in what would later become Angeles National Forest.

Throughout the late 1920s and 1930s, Begue seemed set on sharing the story of Sister Elsie. In 1934, he told the Pasadena Star-News that the sister “ministered to the sick and needy” Indigenous people.

A Times story on Sept. 29, 1935, announced a barbecue fundraiser for a local Catholic institution at the “old Basque rancho” owned by Begue. “The ranch on Honolulu avenue was famous in early days when Los Angeles was a pueblo and Sister Elsie had a children’s home where the ranch now stands.” The Begue family planned to cook “hundreds of pounds of meat for the affair.”

Times columnist Harry Carr offered in his column, the Lancer, a completely different take. Carr wrote on April 3, 1935, that Sister Elsie Peak was named “for a nun who lost her life trying to walk from San Fernando to San Gabriel.” No, he doesn’t provide a source for where he learned that information. Trust me: I too shook my fist at the sky.

Sunlight speckled across a green tree-covered mountain with a dirt path below

The last rays of sun blanket across Mt. Lukens, as seen from Dunsmore Canyon in Deukmejian Wilderness Park near Glendale.

(Jaclyn Cosgrove / Los Angeles Times)

I would be remiss to mention that the oldest reference to a “Sister Elsie” in The Times’ archives appears to be an 1889 story about — buckle up — a psychic medium in Azusa. For a brief and beautiful moment, Cary and I hoped Sister Elsie Peak would turn out to be named after Elsie Wheeler, a spiritualist medium whose own story relates to an astrological tool. Alas, the peak was named before she was born (which doesn’t work unless she was a really good psychic). That said, a peak named after a mythical nun and a clairvoyant feels arguably appropriate for the highest point in L.A.

Cary also discovered one of my favorite facts about the Sister Elsie legend — that it was turned into a play titled “Sister Elsie in Tujunga.” It was written by Frances Muir Pomeroy, superintendent of summer school at Our Lady of Lourdes Catholic Church. It was said to be about “the experiences of Sister Elsie when she conducted an orphanage here many years ago,” according to a 1938 Times story.

There are other references to Sister Elsie in The Times’ archives over the next several decades, but nothing that gives concrete evidence that she actually existed.

Cary advised me to contact the Los Angeles Public Library. Librarian Kelly C. Wallace, who specializes in California history, quickly got back to me.

Knowing that Cary had already scoured The Times’ archives, Wallace sifted through the agency’s Los Angeles Area Historical Newspapers database, which contains the Los Angeles Daily Star (1870-1879), the Los Angeles Evening Post-Record (1896-1936) and the Los Angeles Star (1851-1871), along with community newspapers such as the Eagle Rock Sentinel and the Highland Park Herald. She found little there.

The trail through Stone Canyon to reach Mt. Lukens.

The trail through Stone Canyon to reach Mt. Lukens.

(Mary Forgione / Los Angeles Times)

This is especially puzzling if Sister Elsie did exist because, before the advent of television, newspapers reported seemingly everything that we now post on social media — detailed trip reports, the attendees of parties, birth announcements, and even basic road repairs.

Wallace did discover a few interesting tidbits in books, but curiously nothing before 1930.

The earliest reference that Wallace found was in the 1938 book “History of La Crescenta-La Canada Valleys” by Grace J. Oberbeck. She spoke to Begue, who spun quite the yarn:

“On El Rancho de las Hermanas, the ranch of the sisters, a group of nuns who had an orphanage not far distant, kept a herd of cows which was looked after by” local Indigenous people “who supplied milk to the school whenever needed. Sister Elsie was the much loved nun in charge of” the Indigenous dairy workers, “and her name was given to the well. Almost directly north from here towers a high peak of the Sierra Madre range and this bears the name of Sister Elsie Peak.”

Legendary outdoors writer and historian John W. Robinson, Wallace found, told the Sister Elsie story in his 1977 book “The San Gabriels,” but followed it up with a correction in his 1983 tome, “The San Gabriels II”: “The derivation of Mt. Lukens’ original name, Sister Elsie Peak, is clouded in uncertainty. Exhaustive research into Catholic Church records fails to find any evidence of a nun named Sister Elsie nor an orphanage named El Rancho de Dos Hermanas.”

You’re telling me, John!

Wallace also found an entirely different story about Sister Elsie on page 47 of “The San Fernando Valley” by Jackson Mayers, published in 1976.

“Sister Elsie, a Sister of Charity, came to Tujunga from Los Angeles between 1850 and 1875 to work with” Indigenous people “at a school and orphanage. Near Haines Canyon was Sister Elsie’s well; Sister Elsie’s Peak was named, it is said, because when troubled she would gain strength by raising her eyes to that eminence, one whose top she was to be buried. Others held that two nuns on their way from Mission San Fernando to Mission San Gabriel lost their way in Tujunga and died atop the peak.”

There is tragically no footnote on the page, so I have no idea who Mayers’ source was.

I hoped that finding out when Sister Elsie Peak was named would help, but that also proved to be a dead end.

Local historian Mike Lawler, former president of the Historical Society of the Crescenta Valley, told Realtor Sharon Hales in a 2016 interview that cartographer George M. Wheeler and his team named the mountaintop Sister Elsie Peak during their survey of California in the late 1800s.

“We don’t know why he named it Sister Elsie Peak,” Lawler said. “The reasons why he named everything are lost to history. They were destroyed in the 1906 San Francisco earthquake.”

This led me to contact the staff at the David Rumsey Map Center at Stanford University Library, as its collections are vast, and I hoped maybe they’d somehow find half a charred page of notes with Sister Elsie’s biography scrawled in quill pen.

Instead, Kristina Larsen, the center’s associate curator, came up short, finding only that a misspelling, “Sister Else Pk” was on the 1881 land classification map from Wheeler.

Evan Thornberry, the center’s head and curator, unearthed “Vignettes of California Catholicism,” a 1988 book by Monsignor Francis J. Weber, longtime archivist for the Archdiocese of Los Angeles at the San Fernando Mission.

Weber conducted an exhaustive search for the existence of Sister Elsie and found no proof of any existence of Sister Elsie or a Catholic orphanage in the Tujunga area at the time.

Weber offered my favorite suggestion for why no one can find any hint of Sister Elsie’s existence: “Maybe the good Sister was kidnapped by Martians!”

If so, I hope someone there takes better care to protect knowledge regarding the names of that planet’s mountains.

You’d think I’d give up here, right?

Instead, I contacted historian Kristine Gunnell, who wrote “Daughters of Charity: Women, Religious Mission and Hospital Care in Los Angeles, 1856-1927” (Vincentian Studies Institute).

I hoped Gunnell would have an answer, as Sister Elsie was said to be in the Sisters of Charity, an American version of the Daughters of Charity, a group that was founded in France in the 1600s with an aim of serving low-income and sick people.

The Daughters group eventually inspired American Catholic women to serve in a similar way, first forming the Sisters of Charity until the groups essentially merged. In the 1850s, as more people moved to the American West, a bishop in the L.A. area requested that Daughters of Charity come to L.A., Gunnell said.

But, there’s no Sister Elsie referenced in Gunnell’s book.

Gunnell said after hearing from me, she contacted a history professor from DePaul University who is compiling a database about all the Daughters of Charity who served in California. He found no one referred to as “Sister Elsie” between 1850 and 1900.

A 1931 news story references that Sister Elsie treated Indigenous children diagnosed with typhoid fever.

Tujunga “was only a day’s wagon ride from Los Angeles, and if these Tongva were Catholic or had Catholic connections, the sisters may have considered their request,” Gunnell wrote to me. “I was hoping that I’d be able to find a record of the typhoid outbreak in Tujunga in the 1860s or 1870s and cross reference it with the Daughters’ records. It’s a good story, and the sisters likely would’ve reported it if it’s true. However, I can’t isolate a specific outbreak.”

Later, Gunnell and I hopped on a Zoom call to commiserate.

With all of our research before us, we reached the same conclusion: A Catholic sister could have feasibly traveled to Tujunga at the request of a bishop to help Indigenous people, but currently there is no record of a woman known as Sister Elsie who did so. There’s no record of much of anything told in the Sister Elsie story. It seems, instead, to have been an urban legend of its time.

At least for now.

A wiggly line break

Two people walk along a dirt path near a green hillside.

Hikers in Elysian Park.

(Dania Maxwell / Los Angeles Times)

3 things to do

1. Reach for the rainbow in L.A.
One Down Dog, an L.A. yoga and fitness studio, will host a Pride hike from 10:30 a.m. to noon Saturday in Elysian Park. Guests will hike a loop trail through the park. For more details, register at eventbrite.com.

2. Marvel at mollusks in Malibu
The Wishtoyo Chumash Foundation will host a tidepooling event from 8 a.m. to 1 p.m. June 19 near the Wishtoyo Chumash Village (33904 Pacific Coast Highway) in Malibu. Guests will learn about Wishtoyo Village, which is typically not open to the public. All experience levels welcome. Learn more at the foundation’s Instagram page.

3. Learn along the L.A. River in Downey
The California Native Plant Society and Friends of the L.A. River will host a guided bike ride along the L.A. River. Naturalist Cris Sarabia will teach participants about local ecology during the ride. Binoculars will be provided. Guests should bring safety gear and water. Learn more at the group’s Instagram page. Register at folar.org.

A wiggly line break

The must-read

A large blackened hill on an island with the blue ocean nearby.

Burn damage to the Torrey pine grove at Santa Rosa Island.

(Kayla Bartkowski / Los Angeles Times)

The length of time that it will take for Santa Rosa Island to recover after a blaze scorched about one-third of the island remains unclear, Times staff writer Grace Toohey wrote after a recent visit to the island. The fire, which grew to 18,379 acres, is now fully contained. Firefighters faced vicious winds and, at times, 30-foot flames. “They held the line, and we have them to thank for saving housing, saving the island, saving the history of the Santa Rosa Island,” said Ethan McKinley, superintendent of Channel Islands National Park. The island has long been a respite for hikers and backpackers, including Times staff writer Lila Seidman, who shared her experiences on the island and her grief that came in the wake of the blaze. “Now fear clouds the memories: Does the rugged, magical place of my mind’s eye still exist?” Seidman wrote.

Happy adventuring,

Jaclyn Cosgrove's signature

P.S.

I have a flurry of good California animal news to share. First, three mule deer were the first animals to walk over California’s first wildlife crossing over State Route 97 in Siskiyou County. Second, scientists have feared that the population of endangered steelhead trout in the Santa Monica Mountains were killed in massive debris flows after the Palisades fire. However, researchers recently spotted the fish — and their babies — in Topanga Creek. And finally, the California Department of Fish and Wildlife shared earlier this week that five orphaned black bear cubs that were rehabilitated and released into northern California in November successfully hibernated through the winter and returned to the landscape this spring healthy and active, according to recent data reviewed by the agency’s scientists.

For more insider tips on Southern California’s beaches, trails and parks, check out past editions of The Wild. And to view this newsletter in your browser, click here.



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Why has the Pentagon raised the risk of Israeli spying to the highest level? | Explainer News

The US defence department has reportedly raised its assessment of the espionage threat posed by Israel to the highest category of “critical”, according to media reports citing American intelligence and defence officials.

The assessment, first published by NBC News on Friday and followed by The New York Times, comes at a time when Washington is pursuing diplomatic engagement with Iran, while its ally Israel is opposed to the talks aimed at ending the conflict now 100 days long on Sunday.

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US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu have publicly diverged in their approach to the war – Washington wants to extricate itself amid political pressure, while Israel is still pushing to topple the Iranian government.

This is not the first time Israel has been accused of espionage against the US – its closest ally and benefactor – with which it maintains extensive security and intelligence cooperation.

Here is what you need to know:

What did the Pentagon say?

According to NBC News and The New York Times (NYT), citing anonymous current and former US officials, the Pentagon’s Defense Intelligence Agency (DIA) arm recently upgraded Israel’s counterintelligence threat level from “high” to “critical”, the most serious designation in its internal assessment system.

The warning was based on Israeli intelligence agencies intensifying efforts to collect information on US military personnel, government officials and policy discussions.

The news reports said the concern was focused on American officials involved in shaping Washington’s approach towards Iran, as the two foes continue to negotiate an end to the war that has sent global energy prices soaring.

“An intensified Israeli effort to learn about US positions in talks with Iran has crossed a line, according to some American officials,” the NYT said.

According to the news outlet, intelligence assessments pointed to increased Israeli surveillance efforts in recent weeks targeting US military and government figures.

They include Trump envoy and key negotiator Steve Witkoff; the Pentagon’s top policy official, Elbridge A Colby; and one of his deputies, Michael P DiMino IV, the NYT reported.

Witkoff was chief negotiator in the nuclear talks before Israel and the US launched the attack on Iran on 28 February.

The reports also referenced incidents in which US defence personnel working in Israel allegedly discovered software on their phones “to tap their communications had been surreptitiously installed on their phones”, the NYT added.

The newspaper said the DIA reports found Israeli spying on the US, which has occurred before, surged from late 2024 onwards, coinciding with US President Joe Biden’s administration stepping up pressure on Israel over its genocide in Gaza.

The reported increase in spying continued after Trump was elected to a second term in November 2024 and began shaping his administration’s policy towards Iran.

Tensions between Trump and Netanyahu have come to the surface in the past week, amid reports the US president called the Israeli prime minister “f****ing crazy”, due to Israel’s escalation in Lebanon. At least 3,500 people have been killed in Israeli attacks in Lebanon.

Trump has been pressing Israel to halt its attacks on Lebanon, but the bombardment in the south has continued, undermining a potential deal with Iran which insists both issues are inseparable.

While intelligence gathering between friendly nations is not unusual, some US officials reportedly believe recent Israeli activities have gone beyond what Washington traditionally considers acceptable among allies.

According to officials cited in the reports, US intelligence agencies have become increasingly concerned that Israel is seeking greater insight into US policy discussions and negotiating positions, specifically with Iran.

What has been the response from the Israeli and US governments?

Israel has denied the allegations.

According to NBC, the Israeli embassy in Washington said it was “completely false” that the country spies on US government officials or American institutions.

“Israel does not gather intelligence on American entities, let alone US government officials,” NBC quoted the spokesperson as saying.

A White House official also reportedly dismissed the NBC report, saying the “entire story is false and sourced to someone who doesn’t have any knowledge of what’s going on”.

Al Jazeera could not independently verify the media reports and the US and Israeli responses.

Has Israel previously spied on the US?

Yes. Israel has previously been involved in espionage cases targeting the US, although such incidents have not been spoken about much given their close ties.

The most famous example is the Jonathan Pollard affair. The civilian intelligence analyst working for the US Navy was arrested in 1985 after passing large quantities of classified information to Israel. He later pleaded guilty to espionage and served 30 years in prison before being released on parole in 2015.

The Pollard case remains one of the most significant espionage scandals in the history of US-Israeli relations and continues to shape perceptions within parts of the American intelligence community.

However, espionage between close allies is not uncommon, says academic Andreas Kreig.

“Israel has a particularly long track record of conducting intelligence operations inside the United States,” the professor at the Department of Security at King’s College London told Al Jazeera.

“Over decades, Israel has sought to penetrate US policymaking circles through both formal and informal networks, including intelligence and lobbying channels, in order to gain insight into American strategic thinking and decision-making,” he added.

Nevertheless, Washington has for years provided billions in military aid and weapons sales to Israel, including throughout the ongoing Israeli genocide in Gaza.

The US Congress is also currently debating a section of a new defence bill, which would integrate the two countries’ research and development for weaponry to an unprecedented degree. The US has also provided diplomatic cover to Israel at the UN and other international bodies.

Why has Israel allegedly ramped up its espionage activities in the US?

According to academic Kreig, Israel is “deeply concerned” about the trajectory of US negotiations with Iran.

“From the Israeli perspective, the recent conflict with Iran was effectively a joint US-Israeli war, yet the United States is now in a position to shape the diplomatic endgame,” he told Al Jazeera.

“The principal Israeli concern is that Washington could agree to a deal that establishes an enduring diplomatic framework, potentially lasting years or even decades, which would constrain Israeli freedom of military manoeuvre against Iran in the future. Israeli policymakers therefore have a strong incentive to stay ahead of US deliberations and understand negotiations in real time.”

Moreover, Kreig said Israeli intelligence gathering also serves a “strategic purpose”, which is to identify “opportunities to influence, derail, or undermine negotiations if Israeli leaders judge the process to be contrary to their security interests”.

“While Israel sees the United States as its indispensable patron and closest strategic partner, it has simultaneously treated the US as a legitimate intelligence target whenever interests diverge,” he added.

“What surprises many observers is the extent to which Israel, despite being heavily dependent on American military, diplomatic and financial support, has developed the capacity to penetrate multiple layers of US policymaking and cultivate influence across key institutions involved in American statecraft.”

According to analyst and Iran expert Negar Mortazavi, Israel’s reported espionage in the current context is not new and has past precedent. Israel’s opposition to US-Iran negotiations goes back to the time of US President Barack Obama when he signed a nuclear deal with Iran in 2015, which the US under Trump withdrew from in 2018.

“The Israeli Prime Minister Netanyahu did not want any deals or serious negotiations or normalisation between Tehran and Washington, and he tried to stop it publicly and privately in any way he could,” she told Al Jazeera.

Moreover, Mortazavi said the ongoing war on Iran was “not going as planned or as promised”, and that Trump wants “to exit the war and he has to do it through diplomacy”.

“At this point it is very clear that US interests and Israeli interests are no longer overlapping, they’re divergent,” she added.

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Europe’s highest outdoor lift cost £470,000 to build and is used by 200 people a day

The incredible lift ascends 153 metres (502 feet) in under a minute

Some of the world’s most jaw-dropping lifts can be found in luxury hotels, including the highest outdoor lift in Europe, nestled in Lucerne, Switzerland. The Bürgenstock Resort is home to the remarkable Hammetschwand lift, offering stunning views of Lake Lucerne.

The Hammetschwand lift was built between 1900 and 1905 by pioneering hotelier Franz Josef Bucher, at a cost of 500,000 Swiss francs (around £470,000). It remains the quickest route up to the viewpoint, climbing 153 metres (502 feet) in under a minute.

Those planning a visit should bear in mind that to reach the foot of the lift, you’ll need to walk the breathtaking Felsenweg cliff path.

It is estimated that over 40,000 people use the Hammetschwand lift annually, and around 200 to 250 riders per day.

On Tripadvisor, one visitor advised choosing “the perfect sunny day to enjoy the view.” They went on to say: “This is a fantastic view, the elevator is just too quick, but still worth a visit.”

Another said: “You do the Burgenstock track to the lift and it is already by itself stunning!!! Nobody talks about it. It’s a hidden gem in Switzerland!

“Then you arrive at that special spit where the lakes of the four cantons connect, and it’s breathtaking. A bit ahead, there’s the lift and the adventure to one of the most beautiful views ever. It’s easy, it’s accessible, it’s unbelievably beautiful. I will do it again.”

Among other remarkable examples is the Hotel Santa Caterina’s lift in Amalfi, Italy, which boasts breathtaking views. Carved into the rugged cliffside, the glass-fronted elevator takes guests down to the exclusive Beach Club and the hotel’s Italian seafood restaurant.

In Greece, the Corfu Holiday Palace features a stunning lift that transports guests down the cliffside to the beach in just moments, treating them to gorgeous views across the bay while providing far easier access to the white sands below.

The Luxor Hotel in Las Vegas, United States, is home to one of the most iconic lifts on the planet. Given the hotel’s striking pyramid shape, the lifts travel between floors at a diagonal 39-degree angle, treating guests to a spectacular outlook over the atrium as they make their way to one of the hotel’s 4,407 rooms.

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If Proposition 55 passes, the state budget will rely even more on California’s highest earners

Paul Taybi is part of the 1.5%.

The 59-year-old retired founder of a data analysis company from El Cerrito is among that percentage of the wealthiest Californians paying the higher income tax rates that voters approved four years ago.

For the record:

9:44 a.m. May 30, 2026An earlier version of this story incorrectly stated that Paul Taybi owned four Bay Area apartment complexes. The rentals are single-family residences.

Now, with those rates set to expire, a coalition of teacher and service worker unions, medical groups and others are pushing Proposition 55, a ballot measure that would extend these higher taxes on the the highest earners through 2030.

Taybi isn’t happy about it. He said he plans to raise rents in the four Bay Area properties his family owns and ultimately move out of state in the coming years if the measure passes.

“I have no problem paying more taxes than a poor person does,” Taybi said. “But we’ve reached the point where my behavior has changed. It will change more. And a lot of people like me will say, ‘That’s the straw that broke the camel’s back.’”

If voters approve Proposition 55, the state will continue depending on Taybi and other wealthy Californians to fund a significant portion of schools, parks, road repairs, police, prisons and many other government services. Those paying the higher rates, which kick in for single and joint filers making more than $263,000 and $526,000 a year respectively, contributed almost $34 billion in income taxes in 2014, roughly a third of all state general fund revenue.

California’s reliance on the wealthiest taxpayers means the state is especially vulnerable to their bottom lines.

When presenting this year’s revised budget plan in May, Gov. Jerry Brown carried with him a chart titled, “Unpredictable Capital Gains,” noting how the state’s revenues were highly dependent on booms and busts in the economy. California’s finances, he said, are a “zig-zag reality.”

“In order to manage this budget,” Brown said, “it’s like riding a tiger.”

In the same presentation, Brown estimated that if Proposition 55 didn’t pass, the state would have a budget deficit in the next three years, which could lead to a new round of cuts in education, health and social services programs.

Updates from Sacramento »

Though much more muted than before, the basic message is the same as it was in 2012.

Back then, the state remained at the height of a prolonged budget crisis. Brown and other proponents warned of massive cuts unless voters passed Proposition 30. The measure primarily raised income tax rates by 1% to 3% for the wealthiest taxpayers.

Under Proposition 30, the current tax rate is 10.3% for single filers earning between $263,000 and $316,000 in annual taxable income, 11.3% for those between $316,000 and $526,000, 12.3% for those between $526,000 and $1 million and 13.3% for those earning $1 million or more. The final 1% at the highest tax rate goes toward a mental-health fund that’s been recently retooled to pay for a $2-billion bond to help house the homeless.

Brown and other supporters pitched Proposition 30 as a Band-aid to carry the state through the worst of its financial calamities. Those higher income tax rates are set to expire in 2018. If Proposition 55 passes, the higher rates would be in place for 18 years.

The governor hasn’t taken a formal position on Proposition 55 and maintains he could balance the budget with or without it.

“I said it was temporary when I started, when I got Prop. 30 passed — I helped to pass it — and I think I’ll leave it there,” Brown said at the May budget presentation.

Some high earners who voted for Proposition 30 now say they’re opposed to the new measure because they were promised that the tax hikes would expire.

“I’m just incensed because I feel like a sucker,” said Martin Schwartz, 63, an electronics repair store owner in Chatsworth, who has paid the higher rates.

But supporters of the measure argue that the state’s still shaky revenues justify continuing to tax those in the top income brackets at higher rates.

“Have we stopped bleeding since 2012? Yes, but the problem still exists,” said Shay Lohman, president of the teacher’s union in the Rowland Unified School District in Los Angeles County. “The wound is still there.”

Increased tax revenues have also brought significant benefits. Since Proposition 30 passed, Lohman’s district brought back an elementary school music program that had been cut during the recession and is planning to start a dual-language Mandarin-English program next year, he said.

“Money has allowed something like that to happen,” Lohman said.

Though the income tax provisions are the same, Proposition 55 has some differences from Proposition 30. The new initiative does not extend a quarter-cent sales tax hike set to expire at the end of the year. It directs more of the money to the state’s Medi-Cal healthcare program for low-income residents. The measure will raise $4 billion to $9 billion a year, depending on the economy and stock market, according to the nonpartisan Legislative Analyst’s Office.

The campaigns for Propositions 30 and 55 are different as well. Four years ago, business and taxpayer groups mounted a robust effort, spending millions, including running television advertisements, to oppose the tax and support a second, unrelated ballot measure.

This time, opponents have only raised $3,000, according to the state campaign finance reports, while supporters have collected almost $53 million, primarily from the California Assn. of Hospitals and California Teachers Assn.

In pro-Proposition 55 television advertisements, advocates including state Controller Betty Yee argue the measure will prevent education cuts without raising taxes.

A USC Dornsife/Los Angeles Times poll last month found 57% of registered voters were in favor of the measure. The poll even found support from a majority of those making more than $100,000 a year.

liam.dillon@latimes.com

Follow me at @dillonliam on Twitter

ALSO

Can Gov. Jerry Brown keep the promises he made with Proposition 30?

Gov. Jerry Brown sends lawmakers revised California budget with less money to spend on new programs

Voters will likely be asked for 12 more years of higher income taxes on the wealthy



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How UK 30-year bonds reached the highest yield this century and why it matters

The UK bond market is currently experiencing a period of intense volatility, with the yield on 30-year government bonds, known as gilts, climbing to its highest point since 1998.


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On Tuesday, 30-year gilt yields rose as much as 0.14% to 5.79%, their highest level this century, before dipping slightly to around 5.6% at the time of writing.

The yield on the 10-year gilt also climbed as much as 0.15% to 5.11%, very close to the 18-year high of 5.12% hit earlier in the Iran war. It has since lowered somewhat to roughly 4.93% on Thursday.

Bond prices and yields have an inverse relationship. Bond yields rise when prices fall in order to increase investment attractiveness as demand for the debt weakens.

The surge in gilt yields indicates that investors currently perceive UK debt as a riskier prospect than other lending options, requiring a larger premium to commit their capital over the long term.

Presently, there are several reasons for this evident but abnormal lack of confidence.

The primary catalyst is the fear that the Bank of England may be forced to keep interest rates higher for longer to mitigate the chance that inflation will remain “sticky” and not return to the 2% target as quickly as previously hoped.

This estimation has been fuelled by surging energy prices due to the disruption caused by the Iran war. Gilts have continuously sold off during the conflict.

Speaking to Euronews, Richard Carter, head of fixed interest research at Quilter Cheviot, added that “the UK is expected to be the worst hit developed economy by events in the Middle East due to its reliance on energy imports, so the longer energy prices remain elevated, the deeper the pain the country is likely to experience.”

Beyond geopolitics and global energy markets, there are many domestic factors currently contributing to the exceptional distrust in UK debt.

Keir Starmer, fiscal policy and local elections

Political uncertainty and fiscal policy are also playing a central role in the recent and severe gilts sell-off.

In 2024, after Keir Starmer’s election, the Labour party pledged “fiscal discipline” and established a long-term framework in the Autumn Budget to distinguish the new government’s approach from the former.

The plan introduced the “Stability Rule” mandating that the current budget, which covers day-to-day costs such as public sector salaries and welfare, must be in surplus by the end of 2029/30. This effectively prohibits borrowing to fund the ongoing operations of the British state.

Additionally, the “Investment Rule” was also put forward to target the national balance sheet. This norm requires Public Sector Net Financial Liabilities (PSNFL) to be falling as a percentage of GDP within the same timeframe as the “Stability Rule”.

By using PSNFL rather than the traditional measure of net debt, the UK Treasury has more room to borrow for long-term capital projects like infrastructure and green energy, which are technically classified as “investments” rather than “spending”.

Finally, the Budget Responsibility Act 2024established a “fiscal lock”, legally preventing any significant tax or spending changes from being introduced without an independent assessment from the Office for Budget Responsibility (OBR).

Despite all these rigid guardrails, bond markets are now sceptical because investors fear political necessity will eventually override fiscal prudence.

Recent scrutiny of Starmer has intensified as he faces a mounting challenge from the left of his party, where dissenting voices are calling for a shift away from “fiscal conservatism” to address funding crises in the NHS and local government.

On top of that, the disastrous appointment of Peter Mandelson as Britain’s ambassador to Washington, and the revelations of his past friendship with Jeffrey Epstein, have severely damaged Starmer’s administration over the last few months.

The problems have culminated in the local elections taking place in 136 authorities for more than 5,000 council seats on Thursday. More than half of the seats up for grabs this week are being defended by Starmer’s party.

Analysts project that Labour will suffer a massive loss and potentially end up over 1,000 councillors down. Any major setback will certainly increase internal pressure to oust Keir Starmer as the leader in which case snap elections could be triggered.

The head of markets at AJ Bell, Dan Coatsworth, explained to Euronews that “investors will be watching bond markets like a hawk over the coming days as the results of the UK local elections are released. Any major setback to Labour will fuel calls for Keir Starmer to be replaced as prime minister and if that happens, bond markets will want to know who is taking over.”

“The obvious challengers, Angela Rayner and Andy Burnham, are seen as candidates who might push for greater government borrowing and spending, which could take gilt yields even higher. Fundamentally, there is a real risk of gilt yields soaring if Labour experiences a wipeout in the local elections,” Coatsworth added.

Speaking to Euronews, the head of fixed interest research at Quilter Cheviot, Richard Carter, conveyed the same sentiment.

“The uncertain UK political backdrop has played a role ahead of the local elections with gilt investors concerned about a Labour Party lurch to the left should Keir Starmer either be replaced or have little choice but to appease his backbenchers in the wake of challenging results.”

Effectively, these local results are no longer just a measure of regional popularity, but a high-stakes verdict of political viability that could determine the long-term stability of British borrowing costs.

The cost to the UK Treasury, businesses and households

For the British government, the consequences of the ongoing bond market shift are measured in billions of pounds as the UK’s debt-interest bill is highly sensitive to fluctuations in gilt yields.

According to estimates from fiscal watchdogs, every 0.25% rise in government borrowing costs adds approximately £2.5 billion (€2.9bn) to the annual debt-servicing cost. A 0.5% increase, which has already been observed this spring, therefore requires the UK Treasury to find an extra £5 billion (€5.8bn) every year just to pay interest.

The rise in gilt yields also has a direct and immediate impact on the real economy as they serve as the benchmark for pricing a vast array of financial products, most notably fixed-rate mortgages.

As yields climb, lenders adjust their swap rates, which inevitably leads to higher monthly repayments for millions of homeowners looking to refinance.

Businesses also feel the squeeze. The cost of corporate loans and commercial credit is often tied to the yield curve. When the state has to pay more to borrow, the private sector follows suit, potentially stifling investment and slowing economic growth.

“A gilt yield shock might be called a stealth tax, but it is not an intentional one. It would be the knock-on effects of bond prices falling and yields going up, which can negatively affect asset prices and tighten financial conditions,” Coatsworth told Euronews.

“Consumers would experience higher mortgage costs and potentially spend less money, particularly if companies scale back hiring if their borrowing costs rise from higher gilt yields, as the two are intertwined. It could also lead to lower public spending and pave the way for tax rises,” Coatsworth added.

Every increase in the cost of debt limits the amount of capital available for private innovation and reduces the disposable income of households already struggling with the cost of living.

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