"Five state ballot measures aimed at solving California's budget crisis are falling short of the support needed to pass in
the May special election, a sign that voters may force lawmakers into another
fierce clash over tax hikes and spending cuts, according
to a poll released Wednesday," reports Michael Finnegan in the Times.
"The state's dismal economy has already partly unraveled the budget
deal that Gov. Arnold Schwarzenegger and the Legislature
reached last month, with a drop in tax collections
leaving a new $8-billion shortfall. Rejection of the ballot measures
would widen the gap to nearly $14 billion.
"The least popular measure, Proposition 1C, is also the one that state leaders are counting
on most for immediate fiscal relief: It would let the state borrow $5 billion against future lottery revenues. The cost,
to be paid over decades, would be billions in new interest
obligations, and less lottery money to meet future
spending needs."
Here are the numbers, which may mean a long hot summer ahead:
Proposition 1A (Budget stabilization):
Yes: 39%
No: 46%
Proposition 1B (Education funding):
Yes: 44%
No: 41%
Proposition 1C (Lottery securitization):
Yes: 37%
No: 50%
Proposition 1D (Prop 10 redirection):
Yes: 48%
No: 36%
Proposition 1E (Prop 63 redirection):
Yes: 47%
No: 37%
Proposition 1F (Legislative salaries):
Yes: 81%
No: 13%
PPIC President Mark Baldassare writes in the Bee:
"In hindsight, a political opportunity was lost when
the focus of the special election ballot became the
current budget gap instead of long-term reform. In our recent survey, majorities of voters
favor the proposal to change our partisan primary system
– an element of the recent budget deal that is on hold
for the 2010 ballot.
"Many voters like the idea of lowering the two-thirds vote needed for the Legislature to pass a state
budget. But instead of being called upon to act as
change agents, voters are being asked to be the cleanup
crew for the latest fiscal meltdown in Sacramento.
"California's federal elected officials may yet play the decisive
role. Our U.S. senators and House members may be in
the best position to make a credible pitch for the
six fiscal measures. They enjoy higher job approval
ratings in the wake of federal actions on the economic
crisis. And state elected officials may be wise to
involve the California congressional delegation for
another reason. Depending on what happens this spring,
California may be returning to the federal government
for help."
Maybe that explains the Arnold-Barack love fest . . .
Meanwhile, the Bee's Kevin Yamamura writes that the opposition to the measures is now forming.
"'I think this thing is going to go down because the
people of this state have just about had it,' said Ted Costa of People's Advocate, a taxpayer group. 'They've had it with this governor and they've had it with this Legislature.'
"The California Nurses Association and the American
Federation of State, County and Municipal Employees
announced their opposition in the past week, saying
that Proposition 1A would force too many spending cuts in future years.
The ballot measure would limit spending in good years
but also increase taxes by $16 billion from 2011 to 2013.
"The Howard Jarvis Taxpayers Association has launched
its own drive against Proposition 1A, largely targeting the tax hikes.
"Supporters have a significant financial advantage,
however, with backing from business groups, a California
Lottery vendor and the California Teachers Association,
not to mention a record-setting fundraiser in Schwarzenegger.
"AFSCME lobbyist Willie Pelote said he is reaching out to other labor unions to form
an opposition coalition. Howard Jarvis President Jon Coupal said Wednesday that taxpayer groups are interested
in joining forces with the unions who are their philosophical
opposites."
With its work cut out for it, CTA kicked $2 million into the campaign for Proposition 1B, which would allocate $9.3 billion to education if Prop 1A passes.
The Chron's Carla Marinucci writes: "Ventura County Supervisor Peter Foy, who Wednesday announced his role as co-chair of a statewide anti-tax push and decried the "tremendous lack of leadership" in California, sure seems to be getting his running shoes ready for
the GOP race for governor.
"Foy, the state chairman of a conservative PAC called
Americans for Prosperity, said he will help run a new
group spearheading opposition to Proposition 1A.
"That's the spending cap measure leading a slate of six propositions
being pushed by Gov. Arnold Schwarzenegger as budget
reform issues in the May 19 special election.
"Schwarzenegger has received support for Prop. 1A from GOP gubernatorial candidate and former San Jose
Rep. Tom Campbell. Republican gubernatorial candidates Meg Whitman, the former eBay CEO, and state Insurance Commissioner
Steve Poizner oppose it.
"Foy, asked if he's using the anti-tax group as a platform to prepare a run for governor
next year, said he's 'fighting for the American taxpayer.'
"'This has nothing to do with running for governor. It
has to do with protecting the people of California.'"
But really, Peter, aren't those the same things?
Capitol Weekly looks at the new stimulus task force inside the Schwarzenegger administration, and how they will track, and try to attract, stimulus dollars.
"Schwarzenegger’s deputy chief of staff, Cynthia Bryant, and Ana Matasantos, the governor’s chief deputy finance director, will be among the leaders of the new stimulus team.
"The move was described by Schwarzenegger spokesman Aaron McLear as a formalization of a process that has been underway for months inside the administration.
"But coordinating a multibillion-dollar stimulus package with different sets of rules
and regulations surrounding the money has been difficult
at times, aggravated by confusion at the federal level.
Governors across the country are wrestling with demands
by the federal government to spend the money quickly,
even as guidelines about how to spend the money are
still being hammered out.
"In other cases, states are scrambling to meet various
deadlines to apply for money, even though application
guidelines are not yet finished. For example, states
must submit applications for education money by March
31. But federal guidelines on what projects will be available
for that money will not be finished until March 30."
"In all, the Schwarzenegger administration expects about
$85 billion worth of stimulus dollars in the state. The
majority of that money – about $50 billion – will be new federal funding coming into the state
for health care, education and a wide variety of other
projects. The remaining $35 billion is expected in the form of tax credits for
California taxpayers.
Speaking of stimulus, "In a federally mandated rush to get stimulus dollars out the door, the Schwarzenegger administration has inadvertently set off a battle between rural and urban lawmakers in the Capitol."
"At issue is $280 million in funding for wastewater treatment and sewers. But the fight is illustrative of the battles that are beginning to pop up over how to spend federal stimulus dollars, and some of the dangers that arise as the state sprints to meet the Obama administration’s orders to spend the money quickly."
CW's Malcolm Maclachlan writes about the return of Fran Pavley, and her new environmental
legislation. "The author of California’s landmark law to curb greenhouse gas emissions has
launched a two-year effort to expand the law’s reach into other operations, including logging, and
shape the market place governing potentially billions
of dollars worth of emissions credits.
"As the Legislature turns its focus from the state budget to legislation, dozens of ambitious new environmental proposals are emerging. But a bill by Sen. Fran Pavley, D-Agoura Hills, could be among the biggest pieces of environmental legislation this year.
"Several bills this year will be outgrowths of AB 32 and SB 375, a 2008
bill regulating greenhouse gases in transportation.
These include Pavley’s SB 31, which would add numerous requirements to
the way
the state spends the money it collects under AB 32. Pavley
characterized the bill as a “placeholder” for a two-year effort to give
the state a say on how to spend
any money the Air Resources Board collects under AB
32—for instance, via auctioning of carbon offsets, an
idea she supports."
CW's John Howard writes on a new idea gaining traction in many cash-strapped cities . "Get in a traffic accident near Roseville, Upland, Forest Hill, Loomis, Pinole or Nevada City -- to mention just a few -- and you may be in for a big surprise.
"Strapped for money and facing deeper cuts from city
and county governments, some local districts across
California are pushing a novel approach to get cash: Send a bill to at-fault drivers for the costs of handling car crashes
– but only if those drivers come from outside the area.
“It’s basically developing into a way of taxing foreigners,” said Jeff Fuller, vice president and general counsel
of the Association of California Insurance Companies.
Insurers, who presumably will wind up footing the bill,
oppose the idea, which appears to be getting some traction
in the state as well as nationally.
"A federal appeals court reinstated contempt-of-court proceedings Wednesday against Gov. Arnold Schwarzenegger for defying a judge's order to pay the first $250 million of a multibillion-dollar plan to rebuild the state prison health care
system," reports Bob Egelko in the Chron.
"The ruling by the Ninth U.S. Circuit Court of Appeals
in San Francisco was the second rebuff in two days
for state officials challenging federal authority over
medical care in California prisons.
"On Tuesday, U.S. District Judge Thelton Henderson of San Francisco rejected the state's attempt to regain control of the prison health system.
Henderson appointed a receiver to manage the system
in 2006 after finding that one inmate a week was dying because
of inadequate health care and that the state was unable
to meet constitutional standards. Schwarzenegger said
he would appeal.
"In Wednesday's ruling, the court said the state had acted prematurely
in appealing an order Henderson issued in October to
pay $250 million as the first installment of a plan by the
receiver, Clark Kelso, to build new medical and mental health centers and
renovate existing ones."
George Skelton writes that the overwhelming demand
for California state bonds this week shows that the credibility of credit rating agencies
has declined.
Treasurer Bill "Lockyer complains that rating agencies force municipal bond
sellers -- state and local -- to meet higher standards than corporations because
of outdated rules. "Taxpayers should be treated the same as corporations."
"Better, I'd say, given the recent epidemic of bankruptcies and
taxpayer-funded bailouts.
"Wall Street bond-raters, Lockyer asserts, are catering to investor-pals "who like phony risks."
"Municipal Market Advisors, a consulting firm, reported
last year -- even before the economy tanked -- that muni bonds rated A defaulted 10 times less than corporate bonds rated AAA.
"California bond buyers apparently have gotten the word,
no thanks to any rating agency."
Too bad we can't follow suit and give Experian the finger as well.
And finally, from our Cougars Gone Wild Files, a rabid bobcat went on a rampage in an Arizona bar. "Three people were hurt and the bobcat was killed.
"Cottonwood Police were called out to three different
scenes Tuesday
night all within an hour and a mile of each other.
Everyone was
complaining of an aggressive bobcat that attacked three
people. 3TV has
learned the bobcat was rabid.
The cat apparently had a little Sean Penn in him, too.
"That bobcat caught patrons off guard, causing some
to jump on pool
tables and grab pool sticks before pulling their cell
phone cameras out
for pictures. Another patron explains, “My friend got down with his
camera phone and the cat jumped up and hit him in the
face.”
That'll teach em...