California's political watchdog, the Fair Political Practices Commission, is considering easing campaign-contribution restrictions to help candidates who may have been victimized by Democratic fiscal operative Kinde Durkee, now under federal investigation. Accompanying the proposal is some heavy-duty rhetoric, too.
From John Hoeffel in the LA Times: "The state Fair Political Practices Commission continued to weigh whether to allow candidates and committees to ask their donors to give more to replace millions of dollars that is probably lost in what the chairwoman called “the greatest campaign treasurer fraud in the history of the country.”
"Three of the five commissioners met in Los Angeles on Thursday hoping to hear from some of the scores of mostly Democratic politicians and organizations in the region who used Burbank-based campaign treasurer Kinde Durkee."
"Durkee was arrested last month and charged with mail fraud. She is under federal investigation for allegedly embezzling millions of dollars from her clients."
When you think of the FPPC, you think of Bob Stern, the agency's former enforcer. And when you think of Bob Stern, you think of the Center for Governmental Studies. And, now, when you think of CGS, you'll think of the unhappy news that it's closing down.
From the Chronicle's Carla Marinucci: "Citing a lagging economy and “dramatically polarized political environment,” the head of California’s pioneering Center for Governmental Studies – which has provided research and analysis on Golden State governance and campaign finance for nearly three decades — says it will close Oct. 20, according to emails obtained by the Chronicle."
"The organization, headed by president Bob Stern and CEO Tracy Westen, forged a solid reputation for bringing together political leaders from both parties — often with wildly divergent viewpoints — in numerous projects that influenced legislation, campaign finance reporting and political discourse in the Golden State."
"An email sent out Oct. 13 by CGS’s chair Steven Rountree — and obtained by the Chronicle – specifically cited both the lagging economy and a “dramatically polarized political environment” as taking a toll on the center’s funding and support."
The huge bond issue proposed for the November 2012 ballot -- it's now at $11.1 billion -- may get pushed back or pared back, as the lingering recession raises questions about whether tight-fisted voters would approve the borrowing.
From John Howard in California Water Wars: "The size and timing of the bond election has been part of the political calculation since lawmakers and then-Gov. Schwarzenegger approved it two years ago. When times are flush, voters are more prone to approve spending for public works projects than when times are tough – and times are tough. In 2010, tight-fisted voters rejected new spending on a number of levels, and even refused to allow an $18-a-year levy – that’s $1.50 per month — to keep California’s state parks open. Now, that’s cheap."
"State Treasurer Bill Lockyer noted recently that California’s debt service accounts for about 7.8 percent of the state’s General Fund, its main coffer of personal income, sales, corporation and insurance taxes. That’s a lot of dough in an $80 billion-plus General Fund, and while experts disagree on how much is too much when it comes to debt service, 7.8 percent is high. In fact, it’s the highest since 1977 even though the state is borrowing less than before – the disparity here is that the state’s revenues went down, driving the debt service proportion up."
"Last fiscal year, from July 1, 2010, to June 30, 2011, the debt service level was 7.1 percent. Twenty years ago it stood at 2.36 percent."
PG&E, facing pressure after a leaky gas-line explosion at a condominium, is going to replace all 1,231 miles of the disputed plastic line across the state, reports the Mercury News' Paul Rogers.
"The massive project will start next month in Cupertino and Roseville -- where the pipe has been involved in recent accidents -- and in St. Helena. Communities across Northern California and in every Bay Area county will be dug up while the job, expected to cost hundreds of millions of dollars, is completed over the coming years."
"Unlike the 30-inch steel transmission gas line that ruptured last year, killing eight people in San Bruno, the 2-inch wide plastic pipe that failed in Cupertino six weeks ago is part of PG&E's network of 42,000 miles of distribution lines that deliver gas directly to businesses and homes."
"Batches of that plastic pipe, manufactured by DuPont before 1973 under the name Aldyl-A, have shown a history of cracking, prompting numerous federal safety advisories dating to 1998."
Unemployment may be hanging tough at 12 percent, layoffs are everywhere and the housing market is weak, but there's at least one bright spot in the economy: California is showing strength in its exports.
From the Bee's Mark Glover: "While many businesses have slashed and struggled, California is closing in on two years of trade growth."
"The value of California merchandise exports in August totaled $13.91 billion, up a robust 17 percent from $11.89 billion in August last year, according to an analysis of Thursday's U.S. Commerce Department trade figures by Beacon Economics, a consultant with offices in the Bay Area and Los Angeles."
"August marked the 22nd consecutive month of year-over-year export growth. July shipments out of California totaled $13.15 billion."
