The AP's Steve Lawrence
writes that this year's budget process is expected to be accelerated.
"Gov. Arnold Schwarzenegger releases his initial budget proposals early in January, as he did last week. But the Legislature usually doesn't begin serious budget negotiations until Schwarzenegger makes his revised spending proposals in mid-May.
"This year, with the state facing a $14.5 billion deficit over the next 18 months, things are different.
"An emergency declaration issued by Schwarzenegger requires lawmakers to begin work on how to erase $3.3 billion in red ink in the current budget.
"Assemblyman
John Laird, the Santa Cruz Democrat who chairs the Assembly Budget Committee, said legislators also need to begin talking about how to balance the budget that takes effect July 1.
"'Normally, the key decisions are made in April, May and June,' Laird said. '
This year, it's such a big problem that we need to be looking at alternatives from minute one, and everything needs to be on the table.'
Seems like we hear that one just about every year, doesn't it?
"'
If we have tax credits that have been there for 30 years and no one has questioned them, it's time to look at them in addition to what the governor has asked us to do.'"
"With California in a deep budget hole, Gov. Arnold Schwarzenegger
is basing his state fiscal recovery plan on curbing mandated spending for public schools and health care, which he blames for costs that are exceeding what the state collects in taxes," reports Tom Chorneau in the Chron.
"To emphasize his point, the Republican governor last week unveiled
a draconian budget plan for next year that would slash billions from public schools and health care, release prison inmates early and close dozens of state parks - all in response to a $14.5 billion deficit that represents more than 10 percent of the state's expected budget next year of $141 billion.
"While there's little argument that a voter-approved funding guarantee for schools and ever-growing caseloads for health and human services are driving state spending, many lawmakers disagree with the governor that cutting support is the right solution.
"Some pundits are questioning whether the governor really wants deep cuts approved or is instead laying the political groundwork for a potential tax hike or an agreement on a proposed spending cap.
"'I think this is something he's done carefully,' said
Barbara O'Connor, a political science professor at Cal State Sacramento. 'I suspect that this is the hard-line position that you start from.'
"'
I think what he is doing is painting a picture of the nature of the problem and what the solution would be without any tax increase,' she said."
Dan Walters writes that
it's not as simple as deciding whether or not to raise taxes. "Raising taxes, were it to happen, is a two-pronged process – first deciding how much more, and then deciding which taxes to raise. Ideally, were it to happen, the governor and the Legislature would look first to closing outrageously narrow loopholes.
"And then they would reconfigure the tax system to produce more revenue stability (by broadening the base of taxpayers), more alignment with today's economic realities (perhaps by extending sales taxes to services), less incentive for local governments to make land-use decisions based on revenue flow, and a minimal impact on the overall economy.
"Academics and tax authorities have talked about such reforms for years; politicians have been absent without leave."
George Skelton writes that
comparisons of Arnold Schwarzenegger to FDR are off-base. "Schwarzenegger's draconian plan 'is a wake-up call for the public,' says Assembly Budget Committee Chairman
John Laird (D-Santa Cruz). 'This is reality. If you don't like it, what's your alternative?'
Jack "Pitney says: 'I don't think taxes are avoidable.'
"Schwarzenegger still thinks they are. Or so he says. I believe him -- believe that he's living in denial.
"The governor should think hard about who he is and how he wants to be remembered. I doubt it's reflected in the budget that bears little resemblance to the statesmanlike policies of Reagan and Wilson -- let alone FDR's New Deal."
"California's lopsided budget
has squashed legislative ambitions this year and made it unlikely that lawmakers will be able to do much more than drag spending and revenue back into balance," report Nancy Vogel and Patrick McGreevy in the Times.
"
Asked about his legislative agenda this year, Senate President Pro Tem Don Perata (D-Oakland) replied: 'Survival?'"His counterpart in the Assembly, Speaker
Fabian Nuñez (D-Los Angeles), welcomed colleagues back to the Capitol last week by saying, 'If in any year we're going to earn our pay, it will be in 2008.'
"Unfortunately for many legislators, the out-of-whack budget comes in an election year, when they are especially eager to introduce splashy bills and trumpet accomplishments. And this is no ordinary election year."
With the term limits measure on the February ballot, some legislators are uncertain whether they're running for re-election, and others are wondering whether they have a shot at leadership posts that, should Prop. 93 fail, will be open.
Looks like it's finally Miller Time for OC Sheriff Mike Carona.
"
Sheriff Mike Carona will resign today to focus on defending himself against public corruption charges, abruptly ending eight years of rocky leadership atop the county's largest law enforcement agency," writes the OC Register's Peggy Lowe.
"Carona will make his announcement on the department's Web site, saying he will retire for the good of the department because he doesn't want to be distracted while preparing for a June trial, H. Dean Steward, Carona's attorney, said Sunday."
"California lawmakers
are writing a bevy of bills to deal with the crisis in subprime mortgages – everything from requiring mortgage companies to meet face to face with homeowners in default to closer monitoring of the industry's practices," writes John Hill in the Bee.
"The bills fit into two categories – those intended to help borrowers currently on the ropes, and those meant to reform the industry to avoid a relapse.
"One question about the burgeoning effort is whether and how much the Legislature can turn back a crisis that most experts think is gaining steam.
"Another is whether the mortgage industry, which traditionally used its considerable clout in the Capitol to shoot down legislation it didn't like, will enjoy the same status in light of the meltdown."
A couple of weeks ago, we erroneously reported that Carl's Jr. founder
Carl Karcher was dead. Well, we can now report, again, and this time accurately, that
Carl Karcher is indeed dead. AP has the details.
"Karcher, a deeply religious father of 12, was famous in the fast-food industry for his rags-to-riches story - a tale that was tainted in later years by an insider trading scandal and feuds with his board of directors that led to his eventual demise as chief executive officer.
"
He was reviled by abortion rights activists for his contributions to anti-abortion groups and his oft-repeated story about talking a Carl's Jr. employee out of an abortion. Gay rights groups dubbed his hamburgers "bigot burgers" after Karcher supported a 1978 proposition that would have allowed school boards to fire teachers who were gay or advocated homosexuality."
"Over at the Senate's Local Government Committee, staffers
Peter Detwiler and Brian Weinberger recently put together
a nifty research tool for pundits, politicos and even the stray journalist. It's a document listing the specific taxing powers of local governments, reports the Bee's Steve Wiegand.
"While described by Detwiler as "a serious and wonkish" resource, it doesn't completely lack entertainment value. For instance, Govt. Code Sec. 53942
allows counties to impose a $10 tax on horses and mules in order to finance construction and maintenance of riding trails.
"'Yes,' Detwiler noted in an e-mail, 'counties can still tax your ass!'"