Far West

SAN FRANCISCO — California Controller John Chiang has ordered an investigation of the troubled city of Hercules after uncovering what he calls major discrepancies in its financial reports.

Sen. Bernie Sanders, I-Vt., said Thursday he will introduce legislation when Congress reconvenes to establish a Social Security tax for high-earning workers, hoping to buffer the entitlement program from benefits cuts.

WASHINGTON — Five states — California, Texas, Florida, New York and Pennsylvania — accounted for 40% of the continuing disclosures filed with the Municipal Securities Rulemaking Board since July 2009, according to a report released Thursday.

LOS ANGELES — A high-profile bill in the California Legislature would disband the city of Vernon, handing the industrial hub and its 50,000 jobs to Los Angeles County. But county officials are increasingly uneasy about Vernon and its $511 million of bond debt.

The California's Joint Legislative Audit Committee voted Wednesday to conduct an audit of the state's hospitals to see if they meet the public benefits requirements needed to maintain their tax-exempt status.

Nearly a year after a municipal corruption scandal blew up in the Los Angeles County city of Bell, resulting in the forced resignation of top officials, new leaders say the city is beginning to take the initial steps toward fiscal health.

The Port of Oakland was able to achieve $29.2 million in present-value debt service savings by selling $345.7 million of refunding revenue bonds — the highest known level of savings achieved by the port on a refunding, officials said.

The California state auditor will investigate the controversial proposal by the Metropolitan Transportation Commission to spend $179 million of bridge toll dollars to move its office from Oakland to San Francisco.

The Knik Arm Bridge and Toll Authority, which is proposing a controversial Alaska public-private partnership toll bridge project, may need more funding from the state if toll revenues fall short, according to local press reports.

The federal budget deficit can be brought down if Congress follows through with mandated spending cuts and policy changes envisioned in current law — such as the expiration of Bush-era tax cuts — the Congressional Budget Office said Wednesday.