State of mind

Jan 16, 2009

 

 "Describing California's monumental budget deficit as 'a rock upon our chest,' Gov. Arnold Schwarzenegger broke from tradition in his State of the State address Thursday with a blunt vow not to advance any policy agenda this year other than resolving the state's fiscal crisis," writes Michael Rothfeld in the Times.

 

"As lawmakers sat before him in the Assembly chamber, Schwarzenegger said they had put their partisan beliefs above the interests of Californians, and he asked them to forgo their own salaries if they fail to pass the next budget by the deadline in June.

"The speech is an annual rite in which governors normally lay out a list of their accomplishments from the preceding year and their grand aspirations for the new one. Schwarzenegger, giving the sixth and next to last address of his tenure, said he had such a set of proposals sitting on his desk, where for now they will stay.

"His expression was serious, and his remarks were short, lasting less than 10 minutes.

"'Addressing this emergency is the first and most important and greatest thing that we must do for the people of California,' Schwarzenegger said. 'The $42-billion deficit is a rock upon our chest, that we cannot breathe until we get it off. It doesn't make any sense for me to . . . stand in front of you and talk about education or infrastructure, or water, or healthcare reform and all those things when we have this huge budget deficit.'

 

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Team Chron reports:  "The governor's decision to give a short, pointed speech was a shrewd political move because it focused attention on the state's most-pressing issue while avoiding specifics and giving his critics little to respond to, one Capitol pundit said.

"'I thought the tone was moderate. There was no name-calling, no 'girly man' comments, no 'Terminator' metaphors,' said Barbara O'Connor, director of the Institute for the Study of Politics and Media at Sacramento State University.

 

But there was one mention on Conan's sword. The guy is who he is...


"'Conan's sword could not have cleaved our political system in two as cleanly as our own political parties have done,' the governor said, referring to a pair of movies he made as an action-film star. 'Over time, ours has become a system where rigid ideology has been rewarded, and pragmatic compromise has been punished.'

"At the same time, the governor tried to offer some optimism in solving the state's fiscal crisis, telling lawmakers he came to "simply encourage this body to continue the hard work you are doing behind closed doors."

"'I know we'll get it done,' he said."

 

The Bee's Kevin Yamamura adds: "Schwarzenegger delivered few applause lines, and lawmakers responded with silence, most notably when he said they should lose pay the minute the budget is late. In his only State of the State proposal, the governor suggested cutting off salary and per diem payments for lawmakers if they do not pass a budget by the constitutional deadline of June 15.

"Many lawmakers dismissed the idea as a gimmick, and Democratic leaders said the plan was moot because they intend to deliver a budget this month that will last through June 2010. To enact such a threat, the governor either would have to win unlikely support in the Legislature or pursue a ballot initiative.

"'You read the polls, it's very popular to pick on the legislators,' said Senate President Pro Tem Darrell Steinberg. 'And I know there is certainly a lot to criticize. But I'm darned proud of the institution that I help lead. … These are good, hardworking people, and sometimes the late budgets are the result of genuine differences in philosophy, in priorities and in values.'

"Democratic Attorney General Jerry Brown said the governor struck the right tone by focusing on the budget rather than grand initiatives. Several lawmakers, however, said the governor should have provided a stronger vision Thursday.

"'California needs the action and courage governor of 2004,' said Sen. Jeff Denham, R–Merced. 'Promises were made that boxes would be blown up and waste would be cut.'"

 

"All involved appear to be working against a Feb. 1 deadline, when the state is expected to start juggling payments to vendors and others and may have to send IOUs to taxpayers owed refunds and others due money from the state," report Michael Gardner and Jim Sweeney in the U-T.

"'There is quite a bit of discontent brewing,' former Gov. Gray Davis, who was present at Schwarzenegger's request, warned after the speech. 'It reminds me of the days of Proposition 13, when the last to get the word were the people in Sacramento.'”

 

Part-time legislature, anyone?

 

Notable yesterday was a toning down of substantive rhetoric, as an 18-month budget deal appeared to be coming together.

 

Capitol Weekly reports:  "Steinberg said the Democrats $18 million deficit reduction plan, which sought to do an end-run around the two-thirds vote requirement for passing a budget, "got the Republicans' attention" enough to restart negotiations. Then, noting that they would essentially be passing a two year budget—last year's budget, now more than half a year overdue, as well as the 2009-2010—he got in what qualifies as a pretty good laugh line these days.

"'When we get this agreement done in the next few weeks, we will have accomplished the earliest budget in the history of California,' Steinberg said."

 

But, if a deal doesn't come together, John Chiang is getting ready to issue IOUs.

 

"Controller John Chiang has launched a special working group with the financial industry to study how California will issue IOUs if it runs out of cash next month," reports Andrew McIntosh in the Bee.

 

"Chiang warned of a state cash shortage in December, telling state departments that financial troubles could cause serious troubles beginning in February.

"Since then, the controller has gathered several financial industry groups representing credit unions and banks to discuss how IOU issuance would work. The state calls them "registered warrants."

"The group's aim: to identify and work out potential problems that could arise with IOUs – before they start circulating, Chiang spokesman Jacob Roper said."
 

Chiang is expected to lay out his IOU plan in full today.

 

The Merc News's Mike Zapler looks at ways to illustrate the size of the budget shortfall. "Payroll for California's roughly 230,000 civil servants tallies a mere $18 billion — not including legislative aides or people who work for the state's courts or university systems. (Those 149,000 additional folks aren't under the governor's control, but even if Schwarzenegger could fire them, their salaries wouldn't be enough to patch the $40 billion deficit.)

"California's shortfall is larger than the entire yearly budget of every other state except New York. It exceeds the gross domestic product of more than 100 countries, including Syria, Costa Rica and Kenya. Closer to home, it's 40 times the size of San Jose's general operating fund, which pays for most of the city's basic services. And it's a devilish 666 times the size of San Jose's projected deficit of more than $60 million in the fiscal year that begins July 1.

"In nongovernment terms, $40 billion would buy about 78,000 houses in Santa Clara County at the November 2008 median price of $515,000. That's almost half of all of San Jose's single family homes.

"It's also $3 billion more than the combined net worth of Google co-founders Sergey Brin and Larry Page, according to Forbes. And $40 billion could purchase more than 500 Boeing 737-800s.

"Of course, the governor and lawmakers aren't talking about buying airplanes. They're weighing cuts to programs that educate kids and help the needy, as well as tax increases at a time families are stretching to make ends meet."

 

Dan Walters argues for the recognition of a core problem of governance, which the governor alluded to, but didn't confront, in his speech.

"Ideological polarization is certainly one factor in the chronic failure to deal with the issues that an ever-growing and ever-changing state generate, not only the budget but water, education, transportation congestion and countless others. But there are many other factors contributing to gridlock, especially a fundamental disconnect between our economic, geographic and cultural diversity and a political system that, in effect, gives every "stakeholder" on every issue a veto power.

"Fiddling with the margins of that conflict with procedural reforms such as redistricting, open primaries or punishing lawmakers for budgetary stalling will produce, at best, marginal improvements in performance.

"We must address the more fundamental conflict – even if that means a constitutional convention to completely overhaul our governance structure."

 

"In a 4-0 vote, California's campaign watchdog agency approved new rules Thursday to limit how politicians can use ballot measure committees," reports Shane Goldmacher in the Bee.

"The accounts, which have grown increasingly popular and are now controlled by the governor and some dozen lawmakers, are not subject to contribution limits.

"Current law only forbids spending the ballot funds on re-election campaigns and, in some cases, politicians have spent hundreds of thousands, if not millions, of dollars on non-ballot-related causes.

"Ross Johnson, chairman of the Fair Political Practices Commission, has called the accounts 'open-ended slush funds.'"

 

"The Senate approved a major expansion of wilderness areas nationwide Thursday, protecting more than 2 million acres of public land from drilling, logging and mining, including 735,000 acres across California," reports Zachary Coile in the Chron.


"The 73-21 vote was a huge victory for conservationists, who persuaded Senate leaders to roll 160 wilderness bills into one giant package. The bill would permanently protect lands in nine states, from the Eastern Sierra Nevada in California to Oregon's Mount Hood and from Utah's Zion National Park to the Jefferson National Forest in Virginia.

"The package now heads to the House for final passage, but its sponsors said the Senate's lopsided passage will help smooth the way. It could be the first environmental bill that Barack Obama signs as president.

"In California, the measure would expand wilderness areas from Sequoia-Kings Canyon National Parks to Joshua Tree National Park and also would authorize $88 million to help restore the historic salmon run on the San Joaquin River. The bill would help implement a settlement to end the 18-year dispute between environmentalists, federal regulators and Central Valley farmers over how to maintain water levels to preserve a key spawning ground for Chinook salmon."
 

And from our triple-dog-dare files , "AP reports, " In a scene straight out of the movie "A Christmas Story," a 10-year-old Indiana boy got his tongue stuck to a metal light pole.

 

"Hammond police say the unidentified fourth-grader was able to tell them that a friend dared him to lick the pole Wednesday night. Temperatures in the Chicago suburb were around 10 degrees at the time.

 

"By the time an ambulance arrived, the boy was able to yank his tongue off the frozen pole.

 

"Police say ambulance personnel explained to the boy's mother how to care for his bleeding tongue."

 

He then went home and shot his eye out with a Red Ryder BB gun witha compas in the stock.

 


 
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