While the Legislature is putting the recess back in recession, the economy seems to be handling the rest. The Chron's Tom Abate says
the Wall Street banking crisis could have ripples in the Silicon Valley. "The investment banking crisis on Wall Street is already drying up the flow of capital to Silicon Valley, and while money should find new ways to reach local startups, a cash drought of unknown duration and severity is under way.
"That's the synthesis of interviews with a half-dozen sources, each of whom have what valley people call "skin in the game" - personal financial stakes in the startup economy that depend on Wall Street firms like Bear Stearns to keep the whole system working.
"The financial ecosystem of Silicon Valley is much like the water cycle - lake water evaporates and rises to form clouds and rains down to fill the lake again.
"In the startup economy, the lakes are the venture capital funds that raise money to create startups, which then go public or get sold to a bigger firm. Confidence takes the place of evaporation to keep the cycle going. At the moment, however, confidence has all but evaporated."
"Gov. Schwarzenegger
came to town Monday to gather support among local officials for his budget reform ideas, but many wanted to talk instead about the 10% cuts proposed for the 2008-09 budget," reports Paula Lloyd in the Fresno Bee.
"Schwarzenegger met with members of the Council of Fresno County Governments, which includes elected and law enforcement officials from the county and its 15 cities. The governor is scheduled to be in Riverside today.
"'There were two different things going on in the room,' Fresno County Supervisor
Henry Perea said. 'He was telling us what we already knew,' that the state budget faces a huge shortfall, 'but folks were saying, 'Don't cut my programs.' '
"Schwarzenegger said his reform proposal will stabilize the budget without raising taxes.
"The governor found support among the Fresno-area officials for his proposed Budget Stabilization Act, a constitutional amendment to reform the state budget process that he presented in his State of the State address in January. The amendment would need voter approval."
The AP's Garance Burke and Aaron Davis report: "Citing an "old Jewish saying," Schwarzenegger on Monday
compared ending the state's cyclical budget problems to ensuring the Holocaust would never be repeated.
"'
Sacramento created this problem, so why go and punish the people?' Schwarzenegger said, speaking before a group of elected and appointed officials in Fresno County."
Somehow, 20,000 teachers and other school employees seem to be wondering how they're not the ones being punished.
"'
You know the old Jewish saying, 'Never again, never again.' Let's make this the year where we say 'never again' because we can solve the problem so this will never, ever happen again.'
"Schwarzenegger has called for 10 percent, across-the-board cuts to cope with the projected deficit in the 2008-09 fiscal year. That includes a $4.3 billion reduction in education spending.
"He also has said he would be open to closing loopholes in California's tax codes that could add billions in additional revenue.
"'
Maybe there are some there that don't make any sense where we could get some extra revenues,' he said Monday. 'This is on the table.'"
"A clearer -- and
more ominous -- picture emerged Monday of school districts' struggles to balance their budgets in preparation for a potential $4.8-billion state funding shortfall," reports Jason Song in the Times.
"Districts around the state met two deadlines Monday: They were required to notify employees of possible layoffs and they had to report their financial data to county offices of education.
"The California Department of Education estimated that nearly 20,000 employees received early termination notices, with at least one district -- Placentia Yorba-Linda Unified -- offering a $1,000 bonus to employees who retire or resign by April 1. At least 14 Los Angeles-area school districts reported that they might not be able to avoid running a deficit over the next two years.
"'We've never had that many" with potential deficits, said
Ken Shelton, assistant superintendent for business services for the Los Angeles County Office of Education. 'While some districts may have fiscal challenges irrespective of the governor's budget, certainly the current budget proposal exacerbates the problem.'"
"Californians
headed to the polls in record numbers in February's presidential primary, with the highest percentage turnout in more than 25 years, according to a report from California Secretary of State
Debra Bowen," writes Shane Goldmacher in the Bee.
"Attracted by tight races in both the Democratic and Republican primaries, more than 9 million Californians voted in the Feb. 5 primary – topping the previous primary record, set in 2000, by 1.2 million votes.
"
Jill LaVine, the Sacramento County registrar of voters, said she "could feel the voters coming in; they were excited about this one." In her two decades as registrar, LaVine said, voter excitement for the 2008 primary was "right up there next to the governor's recall" of 2003.
"The final turnout represented 57.71 percent of registered voters, the highest percentage in a primary since 1980, though still well below the all-time record of nearly 73 percent in 1976."
This should present a nice contrast to the turnout in the June primaries...
"For every Californian who has celebrated March Madness or a Super Bowl by popping a few bucks into an office betting pool, proposed new state legislation is designed to help you sleep easier," reports Jim Sanders in the Bee.
"Passage of the measure
would remove the possibility of jail time for organizing or participating in nonprofit, all-in-fun office pools.
"'Folks making a friendly wager with friends or co-workers should not have to worry about committing a crime,' said Assemblyman
Kevin Jeffries, who proposed the measure.
"The Lake Elsinore Republican said his goal is to make the punishment fit the offense – not to legalize office betting.
"Under Assembly Bill 1852, violators would be guilty of an infraction, punishable by a $500 fine. Current law allows first offenders to be jailed for up to one year and fined $5,000."
"Plans to build
a peripheral canal to divert water around the delta took a key step forward Monday when the Department of Water Resources launched a 30-month study on how to stabilize unreliable water supplies," writes Mike Taugher in the Merc News.
"The environmental analysis will examine the effects of building a canal, along with other methods of getting water from the Sacramento River to the East Bay, San Joaquin Valley and Southern California.
"The study comes as state officials search with increasing urgency for a fix to the delta's myriad problems, which include collapsing fish populations, increasingly unreliable water supplies and aging levees that could fail and cause flooding while also jeopardizing water deliveries."
And from the world of journalism, LA Observed Kevin Roderick reports, "I've been told that
the LAT Washington folks were informed late Friday that they have to lose 6 to 8 people, and that anyone who wants to transfer back to Los Angeles (or Orange County) can. Apparently, some people have been urged to consider the transfer.
"But
negotiations on exactly who will leave and the future structure of the bureau are continuing, and it looks as if the Times bureau will remain mostly independent of — but cooperate more with — the Tribune Company bureau it shares quarters with. When Sam Zell was there a few weeks back, he called for the Times' part to be cut way back and indicated he wanted to see a single operation."
AP reports, "The Lloyd's of London insurance market has
insured the nose of a leading wine maker and taster for 5 million euros, covering the Bordeaux producer against the loss of his nose and sense of smell.
"
Lloyd's is famous for creating policies for giant corporations but also for insuring celebrity limbs, from Fred Astaire's legs to the hands of Rolling Stones' Keith Richards."
Apparently,
Eliot Spitzer's call girl,
Ashley Dupre, has an insurance policy pending, but we're not sure what for...