"Gov. Arnold Schwarzenegger told social service advocates Tuesday that
the state's anticipated budget shortfall -- already feared to be the worst since he took office -- has widened to $14 billion, according to people at the meetings," reports Jordan Rau in the Times.
"That new figure indicates that the state's fiscal fortunes are declining even more rapidly than many leaders had expected. Less than a month ago, the Legislature's chief budget analyst calculated that California is on track to come up $10 billion short by June 2009, when the state ends its next fiscal year.
"A $14-billion budget gap
would translate to more than 12% of the state's budget if spending continues to rise as projected. Legislative Analyst Elizabeth Hill last month urged legislators to consider getting rid of state programs created in recent years, abolishing tax breaks, raising taxes and reducing benefits for the recipients of government programs.
"In his meeting with social service advocates, the governor said he wanted to try to reduce spending evenly across the state's programs, which include running prisons, providing healthcare for the poor and disabled, and paying for public schools. Last month, Schwarzenegger ordered state agencies to trim 10% of their spending immediately."
Meanwhile, as the state's budget goes further into the abyss,
a deal may be approaching on a state health plan.
"In recent days, however, activity has picked up to the point that Nunez has summoned the Democratic members of the Assembly back to the Capitol on Thursday to discuss the state of negotiations with the hope of presenting them with a deal.
"The final details remain unresolved, but
the plan's outlines are said to include a requirement that most businesses spend 6% of their payroll costs on healthcare, and an increase in the state's tobacco tax. The money would be used to help lower-income and some middle-income families buy private health insurance while requiring everyone else to procure those policies on their own."
From our
If at First You Don't Succeed Files, the Daily Breeze reports on
our newest Assemblyman in waiting -- Warren Furutani.
"
Warren Furutani, who lost his bid for the 55th Assembly seat last year, won on his second try Tuesday as he defeated newcomer Mike Gipson, a Carson councilman.
"Furutani, a Los Angeles community college district trustee, captured 49.2 percent of the vote to Gipson's 38.4 percent."
"Since he did not get to 50 percent, Furutani will still have to face a run-off in February against to top Libertarian vote getter.
Furutani told the Breeze, "
he is interested in seeking a post in the Assembly leadership."
Welcome to the club, Warren.
Meanwhile, the
race for an LA supervisors seat heats up, reports the Daily News's Troy Anderson.
"For the first time in more than a decade, a high-stakes race is under way for a Los Angeles County supervisorial seat in an election that could significantly reshape the region's longtime political power base.
"While still months before voters hit the polls, Los Angeles City Councilman
Bernard Parks and state Sen. Mark Ridley-Thomas already have launched what are widely expected to be fierce campaigns for the post being vacated by the retirement of
Yvonne B. Burke.
""The stakes are huge," Jamie Regalado said. "They are huge on the business side, who see Bernie primarily as their champion. I think they see Bernie as even more business-friendly than Yvonne was.
"And on the other side, Mark is regarded as the champion of labor.
In some ways, this will be the classic labor-vs.-business race."
Could the housing (and state budget crash) have been avoided?
"The state of California
had a chance to curb lending practices that would later contribute to a crisis in subprime mortgages when it set out in 2001 to regulate so-called 'predatory' loans," writes John Hill in the Bee.
"But lawmakers, many of whom took campaign contributions, trips to Hawaii and Rolling Stones concert tickets from subprime lenders, narrowed the legislation so much that consumer protections covered only a tiny percentage of mortgages, a review by The Bee found.
"Saying they didn't want to dry up the market by being too restrictive, lawmakers produced a bill that let most lenders easily avoid making loans that triggered homebuyer safeguards.
"One court decision further eroded the law's clout. In the face of industry opposition, lawmakers ignored warnings from consumer groups and killed a provision in a 2005 bill to reverse the court's interpretation and broaden the scope of the state law."
"Gov. Arnold Schwarzenegger pledged Tuesday to work with state government leaders
to restructure the scandal-plagued State Compensation Insurance Fund," writes Gilbert Chan in the Bee.
"Reacting to a stinging Department of Insurance audit of the quasi-public workers' compensation insurance carrier, the governor said the public "should accept nothing less than the highest ethical standards."
"In a statement, Schwarzenegger called the audit findings troubling and said it was 'outrageous that the former State Fund management would recklessly spend dollars.'
"The review faulted State Fund, the largest workers' compensation insurer in California with $3.5 billion in annual premiums, for lax accounting and organizational controls, which led to serious financial mismanagement. State and local authorities have launched a criminal investigation."
Meanwhile, another board is asking to be reviewed, hoping to avoid SCIF's fate.
"A state board that settles disputes over unemployment claims
took the unusual step Tuesday of asking for an audit of its own operations," writes the Bee's John Hill.
"The California Unemployment Insurance Appeals Board said it wanted the audit to get to the bottom of allegations of criminal wrongdoing and possible favoritism and nepotism.
"'This has been a concern of mine since I arrived at the board,' said Rick Rice, who was appointed as chairman in August. '
I'm proud of the board for having these issues looked at under the sunlight.'"
"The Cal State University system
spent $5.3 million in outside legal fees to defend itself against employment discrimination lawsuits and $2.3 million to settle such cases over the five years ending in June, according to a report issued Tuesday by the state auditor," reports the LAT's Larry Gordon.
"Of the 92 bias suits filed against the university in that time, 40 led to payouts by the school and 28 were still in process, the audit found. Most of the settlements were for $50,000 or less.
"The report's tally, however, did not include two decisions against Fresno State that the university is appealing.
"Last week, a jury awarded $19.1 million to Fresno State's former women's basketball coach for suffering bias and retaliation that led to her firing three years ago. In October, a judge reduced a jury award but still gave the coach of the women's volleyball team $4.5 million for gender discrimination."
"It's perfectly legal for Sheriff
Mike Carona to
take a 60-day paid leave and the Board of Supervisors can do nothing about it, the county's attorney said Tuesday.
"Carona, who faces federal charges of public corruption and witness tampering,
will continue to receive his nearly $200,000 annual salary even while taking what his top aides liken to 'sick leave.'"County Counsel
Ben de Mayo reported to the Orange County Board of Supervisors Tuesday as the board struggles to respond to the wide-ranging charges federal prosecutors have leveled against Carona, his wife and his alleged mistress.
"The board has no recourse for the removal of Carona -- unless he vacates his office for 90 consecutive days, de Mayo said. Supervisors also have no power to suspend Carona's salary since the leave is voluntary and he technically holds the office of sheriff, de Mayo said."
You ever get the sense other countries' politicians have more fun? Take Australia, for example...
"
If you are going to be handcuffed to a stripper's pole, the Nationals' new deputy leader has a word of advice - make sure you wear clean underwear.
"It was recently revealed that Northern Territory senator
Nigel Scullion visited a Russian strip club in 1998.
"
And he said it was a terrific night "out with the boys'.
"Three years before he became a senator, the now senior politician was leading an Australian delegation to a global fisheries conference when he took a boozy detour to the St Petersburg establishment.
"The senator was then hauled up on stage, handcuffed to a pole and stripped down to his jocks.
"It was a terrific night, it really was," he told ABC Radio.
But the new pol has learned his lesson.
"'Two important lessons out of life from that, don't let anyone handcuff you to a post and make sure you always wear clean underwear,' he said.