Archive for June, 2009
JUNE 30, 2009: Budget Rhetoric Ramps Up In Sacramento
Posted by: | CommentsMonday in Sacramento, another wasted day of budget drama.
Yesterday, Senate Democrats passed a budget package that included some cuts, tax/fee increases and creative accounting, without a single Republican vote. Their hope is to force it to the Governor’s desk where if signed, would take effect in 90 days in accordance with state law. Schwarzenegger had this to say about the Democrats plan:
“What they’re working on right now is, I think, all part of the kabuki. They’re wasting time by going through those drills, by trying to pass a simple majority illegal tax increase. I will never sign anything like this.”
The tax and fee increases in the package include $1.50 on a pack of cigarettes, $15 vehicle license fee, a 9.9% extraction tax for oil companies and a new fee on homeowners insurance premiums. These are projected to amount to around $2 BILLION in new taxes. Keep in mind, we currently pay some of the highest taxes and fee’s in the nation, which apparently isn’t enough to appease the insatiable appetite of our Legislator.
Still on the table is a 3 bill option that passed with bipartisan votes in the Assembly but was shot down by Senate Republicans. This plan would have given the state $5 BILLION to float it’s checkbook until a complete budget could be passed. The piecemeal approach cancels the need for Controller Chaing to issue IOU’s starting on Thursday.
My question is if they need to in essence buy time to pass a complete budget….what have they been doing all this time? We go thru this every single year in California. They know when the budget is due, and yet it’s consistently late with last minute drama. And if I hear one more Legislature say it’s because budget and tax increases require a two-thirds vote I think my head just might explode. Maybe our Legislature should be more focused on the immediate needs of our state instead of taking up how many juice boxes a kid can have in state day care facility (AB 627) and if law-abiding California citizens can buy their ammunition from a catalog (SB 962). Do the state Legislatures not owe it to their constituents to complete a fundamental task of their employment on time?
They have until tonight at midnight to pass a budget or Thursday the IOU’s will roll. I say let them, then maybe the Legislature will see the magnitude of the crisis if nothing else out of sheer embarrassment. The stalemate appears to have no easy end in site. Democrats will not make any further cuts to social programs, Republicans won’t raise taxes and the Governor wants reforms and will not sign a bill that includes tax increases.
This may take awhile or could turn on a dime as politics in California often do.
JUNE 29, 2009: State Senators Won’t Accept Self Imposed Salary Cuts
Posted by: | CommentsOver the weekend, two state Senators refused to join their counterparts in taking voluntary pay cuts. Currently Roderick Wright (D-Inglewood) and Roy Ashburn (R-Bakersfield) are the only two Senators in Sacramento who have not signed on for the minimum 5% pay cut starting July 1, the start of California’s new fiscal year.
The pay cuts were suggested by Senate leader Darrell Steinberg (D-Sacramento) as a way to show solidarity with state workers who have had their pay decreased in the wake of California’s budget crisis.
Legislatures in California enjoy the highest salaries in the Nation with a base rate of $116,208 annually PLUS a tax free per diem of $36,000. Salaries are set by the Citizens Compensation Committee. In May, the committee voted 5-1 to cut the salaries 18%. Those cuts will not effect current salaries as the state Constitution does not allow changing the pay of elected officials in the middle of a term. The 18% decrease will not show up until December of next year.
Senator Wright had this to say about his refusal to share in the self imposed cuts:
“What I get paid is personal. I don’t discuss what I do personally. I don’t choose to make anything I do on my personal side public.”
Not surprising when you consider Wright gave a several minute monologue earlier in the month during a committee hearing on his love of Neiman Marcus. Giving money back to the state makes that much less you can spend at Neiman’s.
As for Ashburn, he prefers to let the Citizens Compensation Committee make the decisions of Legislative pay. You remember Roy Ashburn…he’s the guy who wrote Proposition 1A, a $16 BILLION dollar tax increase that voters rejected on the May 19th ballot.
At least Wright and Ashburn’s display of arrogance is bipartisan.
JUNE 26, 2009: Assembly Passes Budget Package-Senate Shoots It down
Posted by: | CommentsIn a sudden twist in the budget saga, the Assembly passed a budget package yesterday afternoon. With unanimous support, each of the 3 bills were passed without a single “no” vote. Governor Schwarzenegger vowed to veto the bills if they were to pass the Senate. Never fear…they didn’t. Every Republican Senator voted against the measures except for Abel Maldonado of Santa Maria who did not vote either way.
On a side note, rumor has it, after Maldonado completes his final term in the Senate he will reemerge as a Democrat to seek another office. His failure to vote either way on the budget package bodes well for not wanting to alienate Democrats.
The three bills would have added about $5 BILLION in cash back into the states checkbook. That would have bought time to pass a complete budget and end the need for IOU’s.
A robing Peter to pay Paul scenario won’t work with our current state of affairs. Another day wasted on peicemeal stopgap measures with no hope for a complete balanced budget. Let the IOU’s roll….maybe then the Legislature will wake up to the magnitude of California’s financial crisis.
JUNE 25, 2009: Budget Vote Falls Flat
Posted by: | CommentsYesterday in Sacramento, an attempt to pass a state budget flopped. The Legislature took up 1 of the 20 bills contained in the latest plan backed by Democrats. All Republicans in both the Assembly and Senate voted no as well as 2 Democrats in the Senate and 1 in the Assembly.
Assembly minority leader Sam Blakeslee (R-San Luis Obispo) said they feel “shut out” in the process. Which is understandable considering Republicans only received a copy of the proposed budget about an hour before the scheduled vote, which made it impossible to read the massive text. According to Senate President Pro Tem Darrell Steinberg (D-Sacramento), Democrats see it as a “moral obligation” to oppose steep cuts to programs that Governor Schwarzenegger say are needed.
Republicans won’t raise taxes. Thank you! We are taxed enough in California. Hopefully they hold true to that. Democrats won’t make cuts. We could be at this awhile.
In a press release out today, Controller John Chaing expects to start issuing IOU’s instead of payments as soon as next week if a budget is not passed by July 1.
“Next Wednesday we start a fiscal year with a massively unbalanced spending plan and a cash shortfall not seen since the Great Depression,” Chiang said. “The State’s $2.8 billion cash shortage in July grows to $6.5 billion in September, and after that we see a double-digit freefall. Unfortunately, the State’s inability to balance its checkbook will now mean short-changing taxpayers, local governments and small businesses.”
All general fund obligations except for those protected under the state Constitution, court order and federal law will be “paid” with IOU’s. This includes all payments to local governments for social services, private contractors, state vendors, income and corporate tax refunds, and payments for State operations including legislative per diem. But according to Chaing, IOU’s won’t be enough.
Earlier in the month Governor Schwarzenegger revoked Chaings authority to secure high interest, short term loans from Wall Street called Revenue Anticipation Warrants (RAW loans) to float the state checkbook.
The date to pass the state budget as required by the California Constitution came and went on June 15th with little to no fan fare. As you previously read here in a quote from the Governor’s office, Schwarzenegger brushed off last weeks deadline for his new one of July 1st, which is next Wednesday.
The current Legislative proposed budget fixes only address part of the deficit and would take MILLIONS from each local government from gas and property tax revenue to total about $1.9 BILLION, as well as adding new tax hikes, a minor reduction in spending and some really creative accounting. None of which amounts to a real budget solution. The Democratic controlled Assembly and Senate do not have enough support from Republicans to push a budget thru with the required two-thirds majority. Governor Schwarzenegger has said that he will not sign a budget brought to him by the Legislature that raises taxes. He even launched an email campaign last week from his “California Dream Team” asking citizens to email their Legislator’s and ask for them to vote no on a budget that includes tax increases. This is quite a turn around from the same Governor that pulled out all the stops in trying to get people to pass the largest tax increase in history on the May 19th special election ballot.
The inevitable stalemate doesn’t bode well for getting a budget passed by next Wednesday, which starts the next fiscal year for California. We can only hope our Legislature will grow a backbone and get a stiff dose of common sense.
JUNE 23, 2009: Simian Snub-China Says No Golden Monkeys For The Los Angeles Zoo
Posted by: | Comments“The Golden Monkey exhibit will bring visitors face to face with these beautiful and rare animals….”
Or in reality, cost taxpayers MILLIONS for absolutely nothing but an empty exhibit at the Los Angeles Zoo. China reneged last week on a 2002 deal with then Mayor Jim Hahn to loan three Golden Monkeys to the LA Zoo. Hahn went to China on a trade mission in hopes of securing Panda’s for the zoo. That request was denied and Hahn was instead offered a consolation prize of the rare Golden Monkey’s. The negotiated 10 year lease would have cost $100,000 in annual payments to China. The exhibit cost a reported $7.4 MILLION dollars. Included in the total, $4,500 for Feng Shui Consultant Dr. Simona Mainini, Architect and Feng Shui Master.
The exhibit was completed in the first part of 2008 and has sent empty ever since.
Los Angeles currently faces a $529 MILLION dollar unresolved budget deficit for the fiscal year that starts on July 1.
JUNE 22, 2009: LA Mayor Antonio Villaraigosa Won’t Run For Governor
Posted by: | Comments
LA Magazine's June Cover Says It All
Today on CNN, Los Angeles Mayor Antonio Villaraigosa officially announced he will not run for Governor of California in 2010. Villaraigosa sites his need to focus on Los Angeles and it’s financial meltdown.
“I can’t leave this city in the middle of a crisis, it’s as simple as that. I was elected mayor are re-elected by the people of this city. They’ve given me the honor of a second term and I feel compelled to complete the promise that I’ve made to them.”
This will more than likely leave State Attorney General Jerry Brown and Mayor of San Francisco Gavin Newsom to duke it out for the democratic nomination. Brown has yet to officially declare his candidacy, but an announcement is expected soon. Newsom threw his hat into the race in April via YouTube, Twitter and Facebook.
Villaraigosa’s announcement comes on the heels of Los Angeles Magazine making the Mayor it’s June cover boy, declaring his performance a “failure”.
In the interview on the Situation Room with Wolf Blitzer, Villaraigosa did not use the opportunity to endorse a gubernatorial candidate
JUNE 19, 2009: California’s Unemployment Rate increased in May
Posted by: | CommentsThe State of California’s Employment Development Department (EDD) released the latest unemployment report today. The news is bleak but not unexpected. In May California’s unemployment rate jumped to 11.5, up from 11.1 in April. In total the state lost 68,900 non-farm jobs in May.
Some better news, the report did show growth in one category. Education and health services added 2,100 jobs over the month. Ten categories: natural resources and mining; construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; leisure and hospitality; other services; and government all posted total job losses of 71,000. Government jobs took the biggest hit, reporting a loss of 14,200.
The National unemployment rate also increased in May, rising to 9.4 percent. This current rate is higher than the doomsday scenario we were threatened with if the President’s stimulus plan didn’t pass into effect. So we spent all that money and we still lost that amount of jobs.
If you combine the current unemployment statistics with the EDD’s unemployment fund forecast that was released earlier in the month (that you also read about here) you have the perfect storm. Our unemployment fund is running in the red and if not corrected, will be short $17.8 BILLION dollars by the end of next year. Were losing jobs at record numbers as businesses make a mass exodus from our state. What is Sacramento doing about all this?…..nothing.
We don’t make “things” anymore and haven’t in a long time, so there goes our manufacturing industry. Our housing market is in the tank so there goes Real Estate and construction. Other states like New York, Louisiana, New Mexico and Michigan are offering incentives for film and TV production that California is not, so there goes a large part of our entertainment industry. And again, what is Sacramento doing about all this? As long as the fat cats in the Legislature see California business as a well to tap to fund their social programs we will continue to see our unemployment rate rise and our unemployment fund dwindle on empty.
Correct California’s anti-business climate and the jobs will follow.
JUNE 15, 2009: Laker “Fans” Riot Over Team Championship
Posted by: | CommentsLast night the underbelly of Los Angeles came out in full force to trash the streets outside of the Staples Center in “celebration” over the Lakers championship victory against the Orlando Magic.
The “thugs” set fires in the streets, trashed city property, attacked passing by cars, and looted near by businesses. The mayhem lasted for hours and local news showed it all live in prime time.
Who knows how much the damage and drain on resources this “celebration” will cost the LA taxpayers.
So while thugs in LA took to the street to use a basketball victory as an excuse to reek havoc, citizens in Iran risk life and limb to protest for their right to a fair election, a right which many in our own state take for granted.
Is it any wonder California is so out of control?
JUNE 11, 2009: Time To Reign In The House “Nuts”
Posted by: | CommentsWednesday on Bill O’Reilly’s FOX News show he aimed his wrath in California Congresswoman and Speaker of The House Nancy Pelosi’s direction.
Congress is in the process of voting for troop funding in Iraq and Afghanistan. Senators Joe Lieberman (I-CT) and Lindsey Graham (R-SC) have introduced the Detainee Photographic Records Protection Act, an amendment to 2346 supplemental bill which has passed the Senate but has been axed by a handful in the House. The bill would prohibit the release of detainee photo’s which would only be used as propaganda against our military and our Country by terrorists.
The ACLU filled a Freedom of Information Act lawsuit to force these photo’s to be released.
Release of these photos is not about transparency, it’s about feeding a fire that will only bring harm to our men and women in uniform. It’s unfortunate that there are those in our own House of Representatives standing on the sidelines fanning the flames. Speaker Pelosi first said she would support the amendment to 2346 but has yet to actually step up and “reign in the nuts” as O’Reilly puts it.
Contact Speaker Pelosi and ask her to get her “House” in order. Demand the Detainee Photographic Records Protection Act be put back in the supplemental bill and passed.
Speaker Nancy Pelosi?http://speaker.house.gov/contact
Office of the Speaker?H-232, US Capitol?Washington, DC 20515?(202) 225-0100