From bad to worse

Apr 14, 2009

"In another sign that the California government's money problems appear to be deepening, two reports show that the state's revenue in March fell hundreds of millions of dollars short of estimates in the 2-month-old budget," writes Wyatt Buchanan in the Chronicle.

"'These numbers clearly reflect the fact that we are working our way through the most significant economic downturn in years,' said H.D. Palmer, spokesman for the California Department of Finance.

"The agency reported Monday that the state's revenue was $415 million below what was forecast in the budget deal in mid-February. For the year, the budget is off by $737 million, according to the finance department.

"Those estimates come on the heels of a report Friday from State Controller John Chiang that found revenue down $178 million for the month.

"State officials said the numbers are reported in different ways, but they generally balance at the end of the year. The finance department reports receipt of money that has not yet been recorded by the controller, Palmer said."

 

"California's political fundraising laws are so full of holes that candidates for state office have collected an average $344,503 a day -- more than $1 billion -- since contribution limits took effect eight years ago, state regulators say," reports Patrick McGreevy for the Times.

"A report released Monday by the Fair Political Practices Commission concludes that although voters approved donation limits by passing Proposition 34 in 2000, "the goal of reducing special interest money remains elusive."

"'The amounts of money raised are staggering," commission Chairman Ross Johnson said. 'It raises very serious questions about the potential for undue influence, the potential for corruption.'"

 

Dan Walters offers the report a big "DUH!"

"Political decisions have multi-billion-dollar economic consequences, and those affected positively and negatively will always seek to influence them. One cannot effectively limit campaign contributions without repealing the Bill of Rights. Measures such as Proposition 34 merely drive the business underground.

"The only campaign finance reform that makes sense is requiring full and immediate reporting of contributions with severe penalties for violation. Everything else is just wishful thinking, or a Proposition 34-like sham."

 

Of course, not all that political money is spent on winning votes.  The LAT's Hector Tobar comments on Michael Finnegan's reporting of Gil Cedillo's use of campaign funds for "officeholder expenses," which has become an issue in his May 19 congressional race against Judy Chu.

 

"Since 2003, Cedillo has raised $1.2 million in campaign contributions. That might not be a big load of cash by Sacramento standards, but he's faced no serious challengers and doesn't really need the money. So what did he do with it?

"To find out, I followed my colleague Michael Finnegan's lead and perused the campaign finance reports.

"Mixed in with contributions to other politicians and charities, there was a bunch of items that looked suspiciously like a recipe for the good life.

"Under "office expenses," Cedillo lists expenditures at the West Hollywood eatery Bastide, the Hotel Sofitel in Florence, Italy, and Banana Republic, where he spent $3,400.

"Sen. Cedillo claims he actually did buy gift certificates for his staff and fellow politicians. That's how he explained much of his $7,000 tab at Nordstrom."

 

Again, apparently we were left off the Christmas list...

 

"At the Standard Hotel, a former oil company building transformed into one of the city's trendiest hotels, Cedillo spent $5,705 in campaign money during 26 visits.

 

"Now Cedillo's running for Congress in a May 19 special election to replace Hilda Solis, who was named U.S. secretary of Labor by President Obama. Solis fought famously for working people.

"Buying gift cards at trendy retailers and schmoozing with other politicians at swank eateries is a poor way to audition for her former job."

 

But it is a great way to help clear the field to run for a district you don't live in...

 

Speaking of dough, gaming technology company GTech yesterday increased it's buy in to the Yes on Proposition 1C campaign by $750,000 for a total of $1 million.

 

In other ballot news, "[a] powerful California public employee union formed a campaign committee Monday with two other labor groups to oppose Proposition 1A, a May 19 ballot measure that Gov. Arnold Schwarzenegger and legislative leaders have said will solve future budget problems," writes Kevin Yamamura in the Bee.

"Service Employees International Union's California State Council, which says it represents 700,000 workers, has teamed up with the California Faculty Association and the California Federation of Teachers to form a committee opposing Proposition 1A.

"SEIU declined to say how much it plans to spend on the opposition effort, which will be a better indicator of its commitment to defeating the ballot proposal. Proponents, who include Schwarzenegger and the California Teachers Association, are raising millions of dollars in an effort to pass Proposition 1A and five other budget-related measures on the special election ballot." 

 

The AP's Tracie Cone reports:  "Gov. Arnold Schwarzenegger, facing growing opposition to next month's special election, said Monday he will campaign "day and night" for the budget-related measures he and lawmakers put before voters.

"Schwarzenegger said voters are telling him they favor Proposition 1A, the centerpiece measure on the May 19 election. It will impose a state spending cap and beef up the state's rainy day fund.

"A recent poll found more opposition than support, in part because the measure also would extend increases in the sales, income and vehicle taxes for one to two years.

"'More and more people are coming up to me on the streets saying they are going to vote 'yes,' ' said the governor, who travels with a security team."

 

"Using Fresno City College as a backdrop, Gov. Arnold Schwarzenegger on Monday announced a $32 million initiative that he said will train workers to fill critical jobs in health care," reports John Ellis in the Fresno Bee.

"'We need to step up the training of lab technicians, of pharmacists, of image specialists, of radiologists and so on,' Schwarzenegger said in front of Fresno City College's Health Sciences Building, which he had just finished touring."

"The governor said his Allied Health Initiative would combine $16 million in federal funds with a like amount from private sources such as schools and hospitals. No state money is involved."

 

"Georges Marciano, a co-founder of the Guess clothing empire, is the latest person seeking to become governor of California," reports the AP's Juliet Williams.

"The one-time fashion magnate's paperwork was recorded today with the secretary of state's office, allowing him to run as an independent in 2010, when Gov. Arnold Schwarzenegger is termed out.

"The 62-year-old Beverly Hills resident plans to campaign on a platform that focuses on exposing and eliminating political corruption and putting "the power of government back in the people's hands," said his publicist, Rod Harrell.

"'He doesn't really want to be tied into the same old good-old-boys network,' Harrell said."

 

Where have we heard that before?

 

"Former GOP state Sen. Bill Morrow of Oceanside (San Diego County) and a couple of immigration activists are backing a ballot measure denying a legal birth certificate to children born in the United States to parents who are here illegally," reports John Wildermuth in the Chron.

"But since the 14th Amendment was ratified in 1868, the federal government has held that anyone born in the United States is automatically a U.S. citizen.

"That means a baby born at San Francisco General Hospital to two undocumented workers has the same rights as a baby born to parents whose ancestors were on the Mayflower.

"Still, that $200 check for the filing fee is all that's needed to get the attorney general's office to put together a title and summary for a would-be initiative and an announcement from the secretary of state saying the initiative has been approved for circulation."
 

And finally, AP's Steve Lawrence reports, "Jerry Gillam, who covered California government and politics for the Los Angeles Times and other publications for 40 years, has died at age 77.

 

"Gillam's wife, June, said he died in his sleep Saturday. She did not know the cause.

 

"Gillam moved to Sacramento in 1960 to cover state government for Copley News Service. He joined the Times' Sacramento bureau in 1961, a job he held for 34 years.

 

"'All the good things that everybody said are absolutely true,' said Bob Fairbanks, a former Times reporter who described Gillam as a very warm man with a 'big laugh.'

 

"'He was always inquisitive,' Fairbanks said. 'He was good at getting a story but was never mean. ... He was good to people. People in the Capitol trusted him, which was why he was such a good reporter.'"


 
Get the daily Roundup
free in your e-mail




The Roundup is a daily look at the news from the editors of Capitol Weekly and AroundTheCapitol.com.
Privacy Policy