Financial aid

Feb 3, 2006
The governor paid Susan Kennedy $25,000 while she was still a member of the Public Utilities Commission considering the SBC-AT&T merger and shortly after AT&T donated $25,000 to the governor's campaign account, report Dan Morain and Robert Salladay in the Times.

"In disclosures filed with the state this week, AT&T reported donating the money on Nov. 14. At that time, the governor was contemplating appointing Kennedy as his chief of staff. Four days later, on Nov. 18, Kennedy, as one of five PUC members, voted to approve AT&T's merger with SBC Communications."

"On Dec. 5, Schwarzenegger's campaign finance reports show, he paid Kennedy, listing her as a campaign consultant. By that time, Schwarzenegger had announced that Kennedy would become his chief of staff, although she stayed on the PUC for the final month of 2005 and did not join his staff until Jan. 1."

"The PUC ought to throw out any votes that involved her on this telecommunications rule,' [Foundation of Taxpayer and Consumer Rights executive director Doug] Heller said. 'It is an absolute conflict that goes to the heart of what's wrong with use of public officials in campaign functions.'"

"'Susan Kennedy was paid by the campaign for her work advising the governor on campaign activities,' [Schwarzenegger spokesman Adam] Mendelsohn said. 'There is no conflict for work done on a political campaign.'"

Meanwhile, "UC Davis Chancellor Larry Vanderhoef said that before he finalized a controversial settlement last year with a vice chancellor who alleged racial and gender bias, several African American state legislators forwarded concerns that the woman be treated fairly."

"Rose, who is African American, is married to a legislative aide of an assemblyman who is a member of the Black Caucus." Rose's husband is Vincent Harris, who is chief of staff for Assemblymember Mark Ridley-Thomas.

Black Caucus chair Mervyn Dymally "said in a telephone interview that he knew nothing of the Rose settlement prior to news reports, had never made any inquiries about it and didn't believe the five other members of his caucus had either."

"'When you write that story, put it in the section with 'A Million Little Pieces,' because it's fiction,' said Dymally, referring to a best-selling memoir that recently was exposed for its falsehoods."

Corrections for Corrections update: "Despite reforms promised last year, the state corrections system hasn't moved quickly enough to improve its rehabilitation programs for inmates, state Sen. Gloria Romero, D-Los Angeles, said at a hearing where she grilled top prison officials Thursday," reports Clea Benson in the Bee.

Department of Corrections and Rehabilitation Secretary Roderick "Hickman, who released a 53-page report documenting efforts under way to change the system, said it was too early to expect complete results from programs that were enacted last year."

"'Are we rehabilitated? No,' Hickman said. 'We're on the road to recovery.'"

Meanwhile, San Quentin is in lockdown after a race riot.

The governor helped OC Sheriff Mike Carona set a record for a local candidate fundraiser last night, reports Martin Wisckol in the Register. "Schwarzenegger, the guest speaker, fondly recounted his 4-year-old friendship with Carona and compared his generous praise to the Valentine's Day sentiments he'll be delivering to his wife, Maria Shriver.

"'No matter what my schedule was, I wouldn't have missed this event,' he told about 460 people in the resort ballroom. 'I would go through anything for Mike Carona. ... There's no other person who should be sheriff for the next four years. He's the man.'"

Paul Pringle and Christine Hanley report in the Times that Carona "continued to bill thousands of dollars to his election committee for unitemized expenses, despite earlier legal concerns about the lack of detail on spending reports, campaign documents show."

"In 2004 and 2005, the sheriff did not disclose how he spent more than $20,000 of his roughly $36,000 in claimed 'officeholder costs.' Previously, he was paid about $110,000 for meals, travels and other costs by his committee without identifying any of the expenses on disclosure statements."

Congressional Republicans have a new leader after electing Congressman John Boehner (R-Ohio) to replace Tom DeLay (R-Texas) as majority whip.

The first vote in the caucus meeting provided fodder to liberal election fraud conspiracy theorists as more votes were cast than there are Republicans in the caucus, reports Roll Call.

From our Call Me Ishmael Files: "A gray whale smashed into a 27-foot boat, damaging the vessel and injuring one person, the boat's owner said."

"The Bayliner was cruising off Leadbetter Beach [off Santa Barbara] shortly before 6 p.m. Wednesday when the whale surfaced under the right bow and belly-flopped onto the boat, crushing the cabin, said owner Jerry Gormley."

 
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