Through the loophole

May 5, 2008
"Despite a 2000 law meant to curb the size of checks California politicians could collect from deep-pocketed interest groups, many lawmakers are skirting those limits by soliciting funds for ballot accounts," reports Shane Goldmacher in the Bee.

"In many cases, the money is arriving in increments of tens, and even hundreds, of thousands of dollars.

"The ballot accounts are legal and can be created without a specific ballot measure in mind. Donations to them can be limitless. The only difference is that elected officials can't spend the money directly on their own re-election campaigns.

"Ross Johnson, chairman of the state campaign watchdog agency, the Fair Political Practices Commission, calls the differing rules 'absolutely illogical' with 'potential for abuse.'

"Politicians have used the funds for everything from TV ads featuring themselves to family Christmas cards to leverage in policy negotiations with well-heeled special interests. At the Capitol, where clout is often measured by the size of a candidate's campaign chest, supporters say ballot committees are a necessary fact of life.

"But watchdogs fear the oversized checks come with outsized influence.

"'It doesn't matter what pocket that special interest is putting the money in,' Johnson said. 'Whether it's your shirt pocket or your coat pocket or your pants pocket, it is the receipt of the money that carries with it the potential for undue influence.'

"Dan Weitzman, a prominent Democratic fundraiser, said the accounts are a way to show leadership in the Capitol. Among his clients are [Karen] Bass and Assembly Speaker Fabian Nunez.

"'My guys do it because it is leading,' Weitzman said."

"Karen Bass has drawn up a short agenda for her two-year reign as Assembly speaker that begins next week," writes George Skelton.

"There are only three items:

"* Balance a state budget that Gov. Arnold Schwarzenegger has declared is "$20 billion out of whack."

"* Create a ballot initiative that would produce $300 million to $500 million annually for foster care programs.

"* Restructure California's tax system to make it conform to the modern world. Actually, she wants to create a blue-ribbon commission of "the best and the brightest" to tackle taxes.

"That's all.

"Rather ambitious for someone who has held elective office for less than 3 1/2 years. But why not? The fiscal stuff -- an honestly balanced budget and creation of a more stable tax system -- are absolute musts if Sacramento is to once again provide the leadership required by a perpetually growing state. And foster care is Bass' passion.

"By every indication, the 54-year-old Los Angeles Democrat is up to it."

"The decision by state Democratic leaders to bankroll a recall campaign against [Jeff] Denham, after he refused a request to vote for the state budget to break a prolonged stalemate last summer, has galvanized Republican activists throughout California," reports the LAT's Patrick McGreevy.

"State Republican leaders are organizing buses so activists from Southern California can walk precincts for Denham in Merced, Turlock, Salinas and other areas of the 12th Senate District.

"Denham's Senate seat is in the cross hairs of Don Perata, the powerful Democratic leader of the state Senate from Oakland, who believes taking it back for his party will head off embarrassing budget stalemates like the one last year that had voters from San Diego to Yreka heaping scorn on state lawmakers.

"Republican Gov. Arnold Schwarzenegger, who supported the budget Denham refused to vote for and even traveled at the time to Denham's district to pressure him, has disparaged the recall that's on the June 3 ballot.

"'Obviously, it is political,' Schwarzenegger said when asked about the effort at a recent Sacramento news conference, adding that the budget vote as 'a reason for recall I think is ludicrous.'

Dan Walters writes: "California's Democratic leaders, who have seen their share of the electorate decline by about 15 percentage points over the last three decades, are crowing about an uptick in registration.

"Secretary of State Debra Bowen reported that Democratic registration jumped from 42.7 percent in December to 43.5 percent last month, while Republican registration declined by virtually the same amount.

"'The Democratic voter registration train in California continues to accelerate while the Republican train has jumped off the tracks,' state Democratic Chairman Art Torres proclaimed, citing a 469,700-voter gain from 2004 and a 109,870-voter loss by Republicans.

"Torres and other Democratic leaders are also elated that two counties that had acquired Republican pluralities during the decades of Democratic decline, Ventura and Stanislaus, now have moved back into the Democratic column by narrow margins.

"What neither they nor anyone else knows, however, is whether it's a permanent trend or merely a temporary lull in the long-term erosion of Democratic Party strength, which has been much more dramatic than the losses suffered by Republicans. Both parties have been losing ground to the rising ranks of independents aligned with no party, who now constitute just under 20 percent of voters."

As counties start cutting back their budgets, mental health services are being hit particularly hard in Santa Clara County, reports Deborah Lohse in the Merc News.

"Hundreds of psychiatric patients will no longer receive personal therapy or casework. Sixteen low-income schools will lose on-site crisis-intervention services. Group homes for teens may see a vital county subsidy disappear.

"It's budget-cutting season in Santa Clara County, where for the seventh year in a row county officials have the painful job of slashing millions of dollars from the county's $4 billion budget. County Executive Pete Kutras will issue his updated budget proposal today.

"County officials hope they can fill in much of next year's $172 million deficit with one-time revenues or other maneuvers. A reorganization of Valley Medical Center is expected to yield $27 million in savings. So far - after more than $460 million in cuts during the past six years - Kutras has asked various divisions to cut a relatively small $23 million from their 2009 budgets.

"More than a third of those departmental cuts - $8 million - are slated to come out of mental-health services. Thousands of adult outpatient mental-health patients are expected to feel the impact in coming months."

"California regulators want to expand a pilot program under which utilities offer interest-free loans to small businesses that want to buy energy-efficient gear," writes Cyndia Zwahlen in the Times.

"The three big utilities that tried the program last year are on board to enlarge the effort. At least one will probably propose raising the cap for loans to small businesses to $100,000, from $50,000, and increasing the payback timetable to 10 years for loans to institutional customers such as cities and schools, said energy consultant Hank Ryan, who is credited with bringing a successful Connecticut program to California that lets customers make loan payments through their utility bills.

"Southern California Edison wants to boost its loan fund, which was about $2.5 million last year.

"'We'll be increasing it many, many times over,' said Gene Rodrigues, director of energy efficiency for the Rosemead-based utility. Edison plans to bring in third parties that offer financing as well as efficient technologies, such as equipment vendors or manufacturers with loan programs.

"The goal is to help small firms buy new equipment that is so efficient the energy savings will cover the monthly loan payments. Small businesses were attracted to the pilots launched last year because they required only a good payment record with the utility."

And those plans for Yahoo's soaring stock prices to bail out the state's economy are on hold, for now. AP reports, "Yahoo's shares fell about 20 percent in early trading today, off $6.15 to $23.05 as investors offered their first reaction to the weekend's dramatic announcement that Microsoft was dropping its bid for the company.

"The fall in Yahoo's shares came after a week of negotiations between Microsoft and Yahoo culminated in a dramatic face-to-face meeting in Seattle between Jerry Yang and David Filo, Yahoo's co-founders, with Steve Ballmer, Microsoft's CEO, and another top Redmond executive.

"Ballmer upped the bid to $33 a share, but Yang and Filo held out for more.

"Later that day Ballmer called Yang to say he was dropping his bid. Analysts believe Yahoo's stock price will surrender most, if not all, of its 50 percent gain since Microsoft made its initial offer Jan. 31. The anticipated sell-off would leave Yahoo's market value hovering around $30 billion."

Here are the big campaign contribution hauls reported by ElectionTrack.com

No 98/yes 99 -- $300,000

Yes Prop 98 -- $196,140

Merv Dymally For State Senate -- $51,400

Re-elect Senator Carole Migden -- $27,000

Strengthening Our Lives Through Education -- $524,500

We Deserve Better -- Yes On The Recall Of Jeff Denham -- $56,061

Dave Jones For Assembly 2008 -- $13,800

Committee To Take Back Our Neighborhoods -- $25,000

Chris Kehoe For State Senate -- $19,750

Julia Brownley For Assembly 2008 -- $15,400

Joe Simitian For State Senate -- $15,000

Friends of Joan Buchanan -- $13,800

John Perez For Assembly -- $13,200

Friends Of Gina Papan -- $10,200

LA Times columnist Joel Kotkin, who has long been a critic of Antonio Villaraigosa, trains his focus on Villaraigosa's reign as mayor. Here's a hint: it ain't pretty.

"When it came to that part of the city's economy not connected to real estate, Villaraigosa might be compared to Emperor Nero. As the city has continued to lose thousands of middle-class jobs in aerospace, manufacturing and high-end business services since 2005, Villaraigosa has basically stood by and fiddled. From February 2007 to February 2008, the county suffered the biggest percentage of job losses-- 0.7% -- of the 10 largest metropolitan areas in the country...Los Angeles is now surpassed only by a handful of the bigger Rust Belt economic basket cases, like Detroit, for the title of worst big-city economy in the nation."

It should be noted that, unlike Nero, the mayor has not ordered the execution of his mother...

Meanwhile, speaking of dead air, the other Golden Boy's microphone has been quiet as well. Matier and Ross write: "San Francisco Mayor Gavin Newsom was a no-show for his debut on Air America.

"The mayor was slated to start his half-hour gabfest on KNEW-AM Saturday. The press release went out and the promo started rolling.

"Then late last week, the mayor's office put the whole thing on hold, saying Newsom's schedule was just too jammed with his trip to Israel and New York.

"So the station had to pull back on its ads promoting the show and instead run a bunch of 'Whoops, we're sorry' spots.

"'I guess it just wasn't the best time for him to start,' said KNEW's John Scott.

"'Hopefully, we'll regroup in a couple of weeks.'"

And no matter what the polls say for any potential 2010 U.S. Senate race against Barbara Boxer, Arnold Schwarzenegger has finished third in the only poll that matters.

The Pearl & Dean poll of 3,000 movie-goers has placed Harrison Ford and Bruce Willis ahead of our governor on the list of greatest action heros of all time.

"The Pearl & Dean poll of 3,000 people showed many felt Willis set the standard for the action hero with his 1980s' role as John McClane in Die Hard, a role he reprised for the fourth time last year.

Ford is remembered as Han Solo in Star Wars and as the swashbuckling archaeologist Indiana Jones, a role he has taken on for the fourth time in a film out later this month."

The two tied for the poll's top spot.

"'Terminator' star turned governor of California Arnold Schwarzenegger, 60, came third in the poll with 15 per cent votes."

 
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