Spin again

May 22, 2008

 "California residents overwhelmingly oppose Gov. Arnold Schwarzenegger's idea to tap the state lottery to close a $15 billion state budget deficit and believe the state is heading in the wrong direction, according to a new poll," reports Mike Zapler in the Merc News.

 

"The survey conducted recently by the Public Policy Institute of California contains grim news for the governor and legislators, whose approval ratings are declining along with the state's fiscal fortunes.

"'People are worried,' said institute president Mark Baldassare, 'and they want something to be done.'


"Schwarzenegger last week proposed a plan that would, in essence, borrow $15 billion from Wall Street investors and pay back the money over 30 years with profits from an expanded lottery. Arguing that the lottery is an "under-performing asset" - its annual per capita sales are about half the national average - the governor wants to ask voters in November to loosen restrictions on the types of games and prize payouts the state is currently allowed to offer.

"If voters rejected the idea, a temporary 1-cent sales tax would automatically kick in.

"But to hear poll respondents, Schwarzenegger got it backward. Only 33 percent favored the lottery plan, while 58 percent opposed it. By contrast, 54 percent approved of the sales tax backup plan, while 41 percent opposed it.

"Baldassare said one possible explanation for that is that Schwarzenegger told voters four years ago that he was finished asking them to borrow money to fix the budget and "now we're talking about borrowing again to deal with deficits."

 

In the survey, voters were split over the idea of a generic tax increase.

 

Do you think tax increases should be included in the governor's budget plan?

Yes: 48%

No: 40%

Don't know: 6%  

 

George Skelton thinks the voters will swallow a tax increase, but it'll take the governor's leadership .  "Californians will listen and can be sold. But there needs to be a credible salesman who believes in the product. From Sacramento, that must be the governor."

 

Dan Walters writes:  "The new PPIC poll indicates that the plan will be a hard, and perhaps impossible, sell not only in the ideologically polarized Legislature but among voters as well, since just 35 percent of those surveyed by PPIC endorsed it.

"The perpetually optimistic Schwarzenegger says those poor numbers don't bother him, citing instances in which he was able to turn around polls on ballot measures. But, characteristically, he doesn't mention the other times he lost badly in ballot battles."

 

PPIC also asked about the ballot measures:

 

Proposition 98 (rent control/eminent domain):

Yes: 30%

No: 48%

Don't know: 22%

 

Proposition 99 (eminent domain)

Yes: 44%

No: 36%

Don't know: 20% 

 

"State legislators killed a plan Wednesday to ban legislative pay raises in lean fiscal years," reports Kevin Yamamura in the Bee.

 

To the surprise of whom?

 

"The Senate Rules Committee decision came hours after Gov. Arnold Schwarzenegger called the proposal a "good idea."

"The proposed ballot measure by Sen. Abel Maldonado, R-Santa Maria, would have prohibited raises for legislators and constitutional officers when the state faces an operating deficit. Maldonado portrayed Senate Constitutional Amendment 23 as a symbolic move as lawmakers consider cuts to social services and other state programs.

"Some senators saw the plan as unnecessary because the independent California Citizens Compensation Commission already can freeze salaries each year. They said the proposal may deter qualified legislative candidates from seeking office because the $116,208 salary could be seen as uncompetitive with private-sector pay.

"Sen. Jim Battin, R-Palm Desert, said using the deficit to guide raises could lead to poor public policy. He said lawmakers would be tempted to pass a tax increase to stave off a deficit and receive a pay raise.

"Sen. Gil Cedillo, D-Los Angeles, said lawmakers do not receive a pension, and another pay restriction would be further disincentive to serve."

 

"Former Assembly Speaker Fabian Núñez, saying he now can speak more openly, is blasting accusations that he spent lavishly on overseas trips and retail purchases as racially motivated," writes the Bee's Jim Sanders.

 

"Núñez, who is termed out of the Assembly in December, lashed out Saturday during an interview on Spanish-language television.

"The Los Angeles Democrat said he has no regrets over his spending of campaign funds, despite controversy over tens of thousands of dollars spent on high-priced hotels, wine, gifts and other purchases.


"'Everyone's done it like this,' Núñez said of previous legislative leaders. 'The difference is there are some in politics who want to judge me in a certain manner.'

"'Because of the fact I am Mexican, they think I have to sleep under a cactus and eat from taco stands.'"

 

 Whoa, there. How long has he been wanting to say that?

 

“CW’s Malcolm Maclachlan reports on the medical marijuana bills moving through the Legislature.

“California’s ongoing revolt against the federal ban on medical marijuana is moving forward with a pair of bills from Assembly Democrats.

"AB 2743 from Lori Saldana, D-San Diego, now sits in the Assembly Appropriations Committee. It would instruct local governments and law enforcement agencies to “not assist in federal raids, arrests, investigations, or prosecutions” of medical marijuana patients or providers.

“Meanwhile, Assemblyman Mark Leno, D-San Francisco, pulled his AB 2279 from a floor vote on Monday due to absence of a pair of key Democratic supporters. This bill would bar employers from firing workers for valid use of medical marijuana under state law. Leno said he would bring the bill back to the floor in the next few days.

“Both bills are strongly opposed by several law enforcement agencies. Lobbyist and attorney John Lovell represents the California Narcotics Officers, Peace Officers and Police Chiefs Associations. He characterized these agencies as being in opposition not only to these particular bills but the entire system of pot clubs and dispensaries created when voters approved Proposition 215 in 1996."

 

CW’s Nick Brokaw chats with the Lite Gov, who all but declares his candidacy for governor.

“'I think I’m in a very good position. I’m well known across the state and have a lot of support, so when the time comes for a campaign, I know how to campaign statewide. If you take a look at what’s going on here with the budget and other issues, [California needs] somebody that knows how to be a leader—how to lead on the critical issues and not duck and let things fester as they have for far too long.'”

 

"Reversing itself, a Senate panel voted yesterday to restore funding for a team of slot-machine inspectors who represent a leading edge of the state's effort to establish an independent presence in California's Indian casinos," reports Michael Gardner in the U-T.

"The Assembly is expected to follow suit next week, but the state's gambling commission has not quelled all tribal opposition to the slot-testing operation.

"The commission, backed by the Schwarzenegger administration, says random slot inspections are a critical component of a much broader regulatory effort that the state is attempting to develop.

“'I'm not saying tribal gaming agencies do not do a good job. They do,' said Steve Giorgi, the commission's executive director. 'But you have to have that arm's length where you need the outside regulators to come in.'"

 

"Jumping ahead of state and federal regulators, the Bay Area air quality district became the first in the nation on Wednesday to impose fees on businesses that pump some of the highest levels of carbon dioxide into the air each year," reports the Chron's Kelly Zito.

 

"The 15-1 vote by the Bay Area Air Quality Management District sets the stage for 2,500 companies and agencies - from supermarkets to gas stations to power plants - to pay 4.4 cents for every metric ton of carbon dioxide they expel, beginning July 1. The top 10 companies combined would pay more than $820,000. The fee for a large share of businesses would be less than $1.

"The district took the historic step as federal and state officials mull how and when to reduce the gases that many scientists blame for pushing up the Earth's temperatures and changing weather patterns. As much as the regulation will create a framework for pursuing the biggest carbon polluters in the region, it also provided a chance for the district to make a statement on the speed with which its counterparts in Sacramento and Washington are tackling the problem.

"'Someone needs to take a first step, and we're running out of time, when you look at the bay rising 3 feet by 2100 and the devastating effects of climate change,' said San Mateo County Supervisor Jerry Hill, the air district chairman. 'This is a more expensive proposition if we do nothing.'"

 

"An effort to streamline state contracting and perhaps save taxpayers money has backfired , leaving a legal dispute – and a big unpaid bill," reports Andrew McIntosh in the Bee.

"A New Mexico consulting firm was hired to help California state managers improve the terms under which they buy goods and sign contracts. But the consulting contract has been axed and the Department of General Services is refusing to pay the firm's $225,731 bill.

"Calling the cancellation of its contract "arbitrary and capricious," Santa Fe-based consulting firm Burger, Carroll & Associates Inc. is fighting back: It has filed a civil lawsuit against the Department of General Services, the state's procurement arm.

"The canceled contract and lawsuit are the latest blows to the governor's attempts to improve state contracting and purchasing.

"Under an initiative it called "strategic sourcing," the Schwarzenegger administration attempted to use the state's purchasing might to leverage better deals for frequently bought items, ranging from office supplies to police cars. Yet the effort has had mixed success because it forced some departments to pay higher prices for goods under its new strategic sourcing deals than they paid for the same items under old contracts."

 

"Six months after it was announced, a plan by Gov. Arnold Schwarzenegger to help struggling California homeowners appears to have had limited impact on preventing foreclosures," reports Jim Wasserman in the Bee.

"A key reason: Things were a lot worse than anticipated.

"Ten lenders and loan servicers that manage more than half the state's subprime loans reported modifying about 24,000 loans during the first quarter of 2008. Nearly 11,600 more borrowers were offered temporary relief from payments.

"Lenders who joined Schwarzenegger's agreement last November – at the time the nation's first – also said they refinanced 10,831 borrowers into new loans, while 8,400 borrowers managed to catch up with their payments.

"Foreclosures, nonetheless, remained stubbornly persistent and rose sharply in California during the same quarter.

"More than 47,000 households surrendered their keys to banks during the period, a 49 percent jump from the previous quarter, according to DataQuick Information Systems, a La Jolla-based researcher.

"State officials acknowledge that changes in the mortgage market have overshadowed an agreement forged in a different environment. Federal proposals for government-backed mortgages to aid refinancings are seen now as a bigger weapon against foreclosures."


And CW’s gossip column speculates on the ongoing chatter about the Democratic Assembly race in the San Fernando Valley.

"Latinos have long wanted a congressional seat in Howard Berman’s neighborhood, a traditionally Jewish part of Los Angeles which has become increasingly Latino over the last 15 years. The grassy knoll theorists surmise Bob Blumenfield’s support from Felipe Fuentes, Alex Padilla and others is part of a plan to get that Latino Congressional seat in the Valley, a move that may come at the expense of incumbent Brad Sherman. But that’s not until 2012. And that may a little early to think about, even for us”

And if you missed this story yesterday, you’ve gotta hear the amazing tale of Yosuke the parrot.

"When Yosuke the parrot flew out of his cage and got lost, he did exactly what he had been taught — recite his name and address to a stranger willing to help.

"Police rescued the African grey parrot two weeks ago from a neighbor's roof in the city of Nagareyama, near Tokyo. After spending a night at the station, he was transferred to a nearby veterinary hospital while police searched for clues, local policeman Shinjiro Uemura said.

"He kept mum with the cops, but began chatting after a few days with the vet.


"'I'm Mr. Yosuke Nakamura,' the bird told the veterinarian, according to Uemura. The parrot also provided his full home address, down to the street number, and even entertained the hospital staff by singing songs.

“But Yosuke apparently wasn't keen on opening up to police officials.

"'I tried to be friendly and talked to him, but he completely ignored me,' Uemura said."

Now, that’s a well-trained bird…


 
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