Whittling away

Mar 9, 2006
"Facing a Friday deadline, Gov. Arnold Schwarzenegger and lawmakers are scrambling to compromise on a colossal public works package that they hope will demonstrate renewed bipartisan cooperation," reports Jordan Rau in the Times.

"Several potential deal breakers remain unresolved. But 'I think we have about an 80% chance of getting something through this week,' said Sen. Tom Torlakson (D-Antioch). 'The public is expecting us to act, and we should act.'"

"One of the governor's original priorities — directing $9 billion toward expanding local jails and renovating courthouses — has been put on a back burner. Also, the negotiations are focusing on a less expansive vision of the building plan than Schwarzenegger first offered. Instead of stretching through five elections to 2014, the bond measures needed to pay for it would be put before voters by 2008 or 2010."

"In addition, the Democrats have given up on trying to allot money to retrofit old hospital buildings so they can survive earthquakes — a concern of one of the party's political partners, the Service Employees International Union, which represents healthcare workers."

But, the Assembly Republicans aren't on board yet.

"'We've got a long ways to move before we're ready,' said Assemblyman Rick Keene (R-Chico), the chief negotiator for his caucus. 'We're saying let's do this right. We're talking about one of the biggest investments in infrastructure in state history.'"

The Capitol Weekly touches base with the new Republican leader, George Plescia, who holds the party line that his caucus is puzzled and apprehensive about the bond package.

"'There's great frustration probably on both sides of the aisle,' said Plescia. "There was no urgency until last week in the governor's office to get this done for the June ballot. They were OK working on this stuff to go on the November ballot, and then all of a sudden, the middle of last week, when they came back from Washington DC they wanted to move quickly."

As for whether Assembly Republicans would be willing to go along with an infrastructure deal for the June ballot, Plescia said, "I think there's the will if there's restraint in our spending. I don't think our caucus goes for a big bond. And if there's not reforms, they won't go with the bonds, such as design-build for transportation, some streamlining of the CEQA process for some of our levees that need repair right away and if there's no surface water storage in the water bond, I think it's very difficult for our caucus members to go along with that."

Perhaps nobody stands to profit more from the bonds than the people who sell them. But CW's Malcolm Maclachlan reports there are rules in places limiting the role bond sellers can play in the political process.

"Contributors cannot be involved in a company's municipal bond business, and cannot use donations to solicit business. Breaking these rules can result in a two-year ban on doing business with a particular state, meaning that companies have an incentive to police their own employees."

But money finds a way in. "Financial services companies have been especially active in initiative campaigns in recent years. In 2000, UBS Paine Webber gave $350,000 to a campaign to lower the vote threshold for local school bonds from two-thirds to 55 percent."

"Over the last three years, financial firms have given money, both for campaigns and for lobbyists, through the California Public Securities Association. The CPSA has paid the lobbying firm Aaron Read & Associates $295,000 over that time--and they have focused on legislation related to bonds. Read lobbied on bills including SB 1069, which dealt with redevelopment bonds, and AB 1433, which addresses publicly-financed projects."

"More recently, the Public Securities Association gave $250,000 to Proposition 1A, the 2004 measure which protects local government revenues from being raided by state budget makers."

Before the new campaign begins, Shane Goldmacher looks at the fundraising by Rep. Nancy Pelosi to retire the debt from one of the anti-redistricting committees from last year, and finds it may be in violation of McCain-Feingold.

"The California Labor Federation vowed Wednesday to put its political forces to work for state Treasurer Phil Angelides in the Democratic primary for governor, but stopped short of pledging the sort of huge television ad campaign that unions waged last year against Gov. Arnold Schwarzenegger," writes Michael Finnegan in the Times.

"With more than 2 million members, the federation provides a major new source of support for Angelides in his battle against Democratic rival Steve Westly, the state controller. Labor's clout is substantial in any California election, but all the more so in a Democratic primary, because most union members are Democrats."

"'We'll see what it takes to win in the primary, but you don't want to overspend in the primary, because you want to save for the general,' [executive secretary-treasurer Art] Pulaski said."

"Pulaski and other union leaders praised Westly's record on labor issues. Asked whether the federation would rule out attacks on Westly in its communications with members, Pulaski responded, 'Absolutely.'"

"On Wednesday, the federation also pledged support to other Democrats in statewide primaries, including Insurance Commissioner John Garamendi for lieutenant governor and state Sen. Debra Bowen (D-Marina del Rey) for secretary of state. In the attorney general's race, the federation endorsed both major contenders: Oakland Mayor Jerry Brown and Los Angeles City Atty. Rocky Delgadillo."

The Oakland Tribune's Josh Richman stayed around to listen to Angelides' post-endorsement speech to the federation. "'The whole nation is watching us, working families all over this great state are counting on us,' Angelides told them, deriding Gov. Arnold Schwarzenegger as 'a photo-op politician who has left behind a string of broken promises.'"

"'I am proud that I'm the 'anti-Arnold.' You're all anti-Arnolds. We stand for a different vision of what makes a society strong,' he said. 'We believe in the California dream.'"

The LAT's Lee Romney follows up on the accusation that Jerry Brown broke a woman's cell phone and made derogatory remarks outside a nightclub as part of a police ride-along. "Gil Duran, Brown's spokesman, said the mayor had been trying to mediate a dispute between the women and the nightclub's bodyguards. 'He was just trying to help them and calm everything down,' he said. 'In the middle of trying to be a good Samaritan … all of a sudden we've got a complaint.'"

"Duran suggested that the women, who say they plan to file a civil lawsuit against the mayor and the owner of the club, have ulterior motives."

"'I think this is one those finger-in-the-chili things,' he said, referring to the severed digit planted in a bowl of Wendy's chili by a scammer seeking a payoff.'"

Herbert Sample reports in the Bee that "Brown's spokesman, the club's general manager and the owner of a private security service challenged the woman's account of a chaotic scene early Sunday morning outside a popular Oakland nightclub called @17th."

Sen. Roy Ashburn is set to announce his election plans today at a Bakersfield news conference. While there is speculation that he may decide to run for Congress against Kevin McCarthy, some of what we've picked up around the Capitol would suggest otherwise. For one, Assemblyman Bill Maze allegedly made a run at the Assembly Republican Leader's job. Maze would waltz into Ashburn's Senate seat if he Ashburn vacated to run for Congress. Does the fact that Maze planned on sticking around mean he knows Ashburn is out of the Congressional race? Only the Shadow knows. But the rest of us find out later this afternoon.


Meanwhile, the Joint Legislative Audit Committee voted yesterday "... to examine the propriety of a $23 million advertising campaign by the First 5 California commission, funded by a tobacco tax imposed by Proposition 10, a 1998 ballot measure."

"The First 5 commission's advertising promoted the benefits of preschool at the same time its chairman, Rob Reiner, was qualifying a universal preschool initiative, Proposition 82, for the June 6 ballot."

Dan Morain reports in the Times on the request for the audit, which was filed jointly by Senator Dave Cox and Assemblyman Dario Frommer. "Cox likened Reiner's activities to those of former Insurance Commissioner Chuck Quackenbush and Secretary of State Kevin Shelley, both of whom resigned amid investigations into whether they used tax money to further their political goals."

"'The timing of these ads, as well as the less than scrupulous relationship between Mr. Reiner and his consultants, violates the spirit if not the letter of the law,' Cox said."

The committee also voted to audit the new stem cell institute, which was created by 2004's Proposition 71."State Auditor Elaine M. Howle said the audit would evaluate the CIRM’s and ICOC’s strategic plans, including determining whether they are clearly defined. Her office also will determine whether CIRM and ICOC are properly identifying and avoiding conflicts of interest, establishing realistic timetables realistic, have in place effective management controls to ensure they are complying with state laws and whether they are protecting the state’s interest," according to a release from Sen. Deborah Ortiz, who requested the audit.

We close today with yet another story of California college sports rivalry. Just weeks after UC Berkeley police had the Stanford Tree sent to the hoosegow, we get this gem from LA Observed: "In the days before last weekend's big hoops game at Berkeley, Trojans guard Gabe Pruitt was chatted up on AIM by a lovely from cross-town UCLA who said her name was Victoria. They hit it off, exchanged photos and made plans to meet in Los Angeles this week. Pruitt even gave up his cell phone number. Fast forward to the big game. When Pruitt goes to the free-throw line, the Cal crowd begins to chant VIC-TOR-IA and to serenade the Trojan with his own phone number. Turns out "Victoria" was a Cal supporter who printed up flyers with a transcript of their instant message chat."

March Madness, indeed.

 
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