After the flood

Jan 3, 2006
God intervened to give Gov. Schwarzenegger a nice set up for his State of the State address, as the governor declared a state of emergency in seven California counties.
""We want to make sure that we don't have the same thing as (Hurricane) Katrina, where a city is wiped out because we didn't do anything about the levees," Schwarzenegger said.

And it just so happens that on Thursday night, the governor's got this little infrastructure bond plan. Harrison Sheppard and Steve Geissinger team up for a 2006 preview, saying "almost overnight, Schwarzenegger, who portrayed the Terminator in movies, switched from the Reforminator to the Infrastructure-nator."

Next up, Schwarzenegger sources say, he'll be turning into Ralph-Nader.

In yet another controlled leak, the governor will also send a letter to Congressional leaders today "calling for a change in federal law to allow consumers to safely import prescription drugs from other countries," according to a statement from the governor's office. "The Governor will also reiterate his call for federal action on this issue during his upcoming State of the State address."

"After repeatedly rejecting plans by Democratic legislators to encourage people to import prescription drugs from abroad, Gov. Arnold Schwarzenegger on Monday endorsed the notion by urging the federal government to lift the ban on foreign drug purchases," report Evan Halper and Jordan Rau for the Times.

Democrats aren't necessarily buying the governor's medicine.

"'It's a ploy,' said Assemblyman Dario Frommer (D-Glendale), whose bill, AB 73, would have required the state to set up a website directing Californians to pharmacies in Canada, Ireland and Britain to purchase drugs. Schwarzenegger vetoed the measure last year. 'This is a publicity stunt. It's another effort from the governor to make voters think he is on their side, when in fact, he is not doing anything that will help them.'"

But, Republican consultants see the governor turning over a new leaf.

"'Last year he was drawing lines in the sand; this year he is looking for common ground," said Republican political consultant Dan Schnur. 'He needs to win back the support of Californians who voted for him in the recall election in 2003 but voted against his initiatives in the special election.'"

The Chronicle points out "Schwarzenegger has vetoed bills that would have created state-run Web sites directing people to Canadian pharmacies where lower-priced prescription drugs can be purchased."

That sound you hear is the governor stealing Democrats' thunder.

And while the governor is in kiss-and-make-up mode, he will have lots of opportunities to reconcile with state employee unions this year, as 18 of the 21 state bargaining units "are working under contracts that either have already expired or are scheduled to come to an end in 2006," reports Andy Furillo in the Bee.

"Of the seven unions whose contracts expire in 2006, the largest by far is the California Correctional Peace Officers Association. The CCPOA, representing 29,661 correctional officers, parole agents and other employees, spent more than $3 million fighting Proposition 75 and Schwarzenegger's other three government overhaul proposals in 2005. The union is expected to have more than $14 million at its disposal this year to oppose the governor's re-election."

"'It's kind of scary when you have that many units all up at once,' said Michael Navarro, director of Schwarzenegger's Department of Personnel Administration. 'But we'll get there.'"

It won't be easy, however...

"'We're looking forward to the fight," said CCPOA President Mike Jimenez. 'It'll give us the opportunity to keep the membership rallied in a political year and give them direction for their anger.'"

Dan Walters urges the governor to take a look at the Keith Richman-Joe Canciamilla "citizens' assembly" effort as a cause to champion in 2006. "If Schwarzenegger hasn't completely abandoned the notion of remaking California's government, he should stop negotiating the terms of his surrender to the Legislature and make the Canciamilla-Richman proposal his new crusade."

And, of course, 2006 is an Election Year (kind of like 2005, 2004, 2003, 2002...) John Wildermuth takes a look at this year's "term-limits shuffle" currently underway in political consultant offices statewide.

The poster child for this little dance, says Wildermuth, is Sen. Joe Dunn. Dunn "has traveled much of the state's political landscape looking for a race to call his own. The Orange County lawyer first planned a campaign for attorney general, but jumped to the treasurer's race when Jerry Brown decided to run for attorney general. When Lockyer carried his $10 million campaign war chest into the treasurer's race, Dunn quickly decided to run for controller."

As you begin to comtemplate your 2005 tax filings, the Bee's Andrew McIntosh reports that one of the governor's companies may be using an attractive tax shelter through a aircraft leaseback arrangement with Singapore Airlines. "Despite claims by Schwarzenegger's top advisers during a 2003 campaign briefing that the actor's investments included 'no tax shelters' and were 'absolutely not tax-driven,' a Bee examination of his company's 747 deal shows his company took advantage of what experts say is one of the most attractive tax sheltering devices available to the super wealthy."

"While sale and lease-back deals are legal, some are now under scrutiny by the Internal Revenue Service. Government auditors are reviewing seven years' worth of leasing deals set up by Babcock & Brown, an investment firm that played a key role in the governor's jet transaction."

"'If someone wants to call it a tax shelter, fine, but I disagree,' [Schwarzenegger spokesman Rob] Stutzman said. 'Either way, it's perfectly legal. So what?'"

Meanwhile, the Bee's Jim Sanders reports that many of the bills that failed last year will be back for another look in the legislative session returning this week. Among those Sanders lists are Jackie Goldberg's mascot bill (5 tries), Joe Simitian's cell phone while driving bill (4 tries) and, of course, Gil Cedillo's immigrant driver's license bill (7 tries).

"'We do it much too often and I think it gives people the feeling that, 'No is not good enough for you,'' said Assemblyman Rick Keene, R-Chico."

"'I think timing is everything in life and in politics,' said Simitian, D-Palo Alto. 'There are certainly times when a very worthy idea just needs another hearing. It may be ahead of its time.'"

Finally, from our Do As We Say, Not As We Do File: The LAT's Patrick McGreevey reports that L.A.'s Department of Water and Power spends $31,160 per year buying Sparkletts bottled water. At the same time, the agency has spent $1 million in the last two years to inform Angelenos that DWP's water is safe to drink and top quality.

 
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