Here’s a superfluous boost to Gov. Jerry Brown’s reelection bid: Moody’s upgrades the state to its highest credit rating in 13 years.
James Nash and Brian Chappatta report in Bloomberg: “Moody’s upgrade to Aa3 from A1 puts California two steps higher than Standard & Poor’s and Fitch Ratings, which last year upgraded California to A, sixth-highest. Moody’s ranks the largest U.S. state equal with Connecticut and ahead of Illinois and New Jersey. A higher rating may lower the state’s borrowing costs.”
“The improvement reflects California’s “rapidly improving financial position, high but declining debt metrics, adjusted net pension liability ratios” and employment growth, Moody’s analysts led by Emily Raimes said today in a report.”
The governor is calling on the Legislature to cut its water bond revision back to $6 billion before it goes before voters in November.
Melanie Mason reports in The Los Angeles Times: “Many parties involved are smarting from the slashed price tag. Alternative proposals moving through the Legislature this year have ranged from $8 billion to $10.5 billion.”
"A lot of stakeholders are jumping up and down very unhappy that it's $6 billion because it doesn't provide enough. I agree," said Mario Santoyo, executive director of the California Latino Water Coalition. "But let's not start getting the torches out here yet. Let's start working and negotiating and get it to a better place.”
The family of a victim struck by an off-duty Uber driver spoke at a committee hearing on legislation seeking to alter insurance policy requirements for rise-sharing companies.
Melody Gutierrez reports for the San Francisco Chronicle: “Muzzafar was arrested following the crash on suspicion of vehicular manslaughter with gross negligence and failure to yield to pedestrians in a crosswalk. He has not been charged but remains under investigation according to the San Francisco District Attorney's Office. His attorney has said Muzzafar was between fares at the time of the incident.”
“Currently, drivers for companies like Uber and Lyft are covered by $1 million commercial auto insurance only after they accept a ride request.”
That Assembly bill advanced out of its house of origin and now makes its way to the Senate.
Marc LIfsher reports in the Los Angeles Times: “s proposed, the new transportation companies would need to make sure their drivers and their personal vehicles have at least $750,000 in insurance coverage any time they're waiting to be matched up with a passenger via a smartphone application.”
“The vote was 7-1 and the bill, AB 2293 by Assemblywoman Susan Bonilla (D-Concord), now goes to the Senate Appropriations Committee.”
A bill to again boost California’s minimum wage failed to pass the Legislature.
Jeremy B. White reports in the Sacramento Bee: “Sen. Mark Leno, D-San Francisco, repeated the arguments that last year drove lawmakers and Gov. Jerry Brown to approve a bill boosting California's minimum wage to $10 a hour by 2016.”
“Leno's Senate Bill 935 would build on that, pushing the baseline to $13 an hour in 2017 and then allowing the wage to rise along with the cost of living thereafter.”
Gov. Brown signed a streamlined process for firing teachers into law after years of vetoes to similar legislation.
Fentil Nirappil reports for the Associated Press: “Naj Alikhan, a spokesman for the Association of California School Administrators, says AB215 sets an unreasonable timeline for districts to handle cases and defines egregious conduct too narrowly. The association wanted more latitude to get rid of poor teachers or those accused of serious misconduct.”
“Brown had vetoed previous legislation involving the issue. The current bill marks a compromise between teachers unions and some education-reform groups.”
Data on crude oil trains that drive through California has been released, but officials say it isn’t timely enough.
Curtis Tate reports in the Sacramento Bee: “"The whole point of this is to help local first responders better prepare for this increase in crude oil shipments," he said. "We encourage anything that's going to improve that, including better disclosures."”
“The agency decided to make the information public on Wednesday following several other states that released similar information, including Washington, Illinois, Florida and Virginia.”
“The U.S. Department of Transportation ordered railroads last month to begin sharing basic information about large crude oil shipments with state and local officials.”
Hilary Clinton spoke in front of an audience in San Francisco last night and, of course, made no clear indication she’s running in 2016.
Carla Marinucci reports for the San Francisco Chronicle: “Shafer asked, "If not you, who?"”
“Clinton responded: "I think there are some very qualified people in the Democratic Party, including some very qualified women in the Senate."”
“Clinton attracted protesters from both the left and the right. Demonstrators showed up with "Frostpaw the Polar Bear" to underscore opposition to the proposed Keystone XL pipeline.”
It’s happening: produce prices are on the rise by an estimated 6% because of California’s extreme drought.
Brianna Sacks reports in the Los Angeles Times: “As farmers continue to battle for water in the summer months, The USDA’s Economic Research Service reported that California’s drought has the potential to increase food price inflation above the historical average in coming years.
“Although the department is sticking with its overall forecast that U.S. food prices will increase by up to 3.5% this year over last, it cautioned that the cost of meat, dairy, fruit and vegetables will jump.”
“California farmers produce half of the nation’s fruits and vegetables, and most of its high-value crops such as broccoli, tomatoes and artichokes.”