"State Auditor Elaine Howle says California's system of handling billions of dollars of federal
stimulus money is at a "high risk," in part because so much money is coming in so quickly," reports CW's John Howard.
"Howle told the governor and legislative leaders that
earlier reviews raised concerns of problems of internal
controls at some state agencies -- including the Department of Social
Services, the Department
of Health Care Services and the Employment Development
Department -- prompting her to declare the state's fiscal
administration system is at a "high risk" of making errors in handling
the funding."
"A unified band of Assembly Republicans on Monday blocked a labor contract for 95,000 state government workers that would have restored half of the monthly pay
cut they absorbed in recent months as the state scrambled
to bridge a $42-billion budget deficit," report Eric Bailey and Patrick McGreevy in the Times.
"Assembly GOP leaders said approval of the contract
would have been irresponsible given the state's continuing financial problems, the potential for
voters to reject several budget-related measures on the May 19 special election ballot and the likelihood of another
big deficit by summer.
"'The labor deal is just one "piece of the budgetary puzzle, and not all the pieces
have yet to land,' said Assemblyman
Roger Niello (R-Fair Oaks). 'It makes sense to wait until after the election.'
"The governor's spokesman, Aaron McLear, expressed dismay at fellow Republicans.
"'While we understand the Legislature's concerns, we stand behind the contract,' McLear said. 'It is a fair contract for state employees and saves
the state hundreds of millions of dollars.'"
And now, with the May 19 ballot measures facing a tough fight, the governor
has decided to let the people know that the budget
is currently being held hostage.
"Gov. Arnold Schwarzenegger plans to seek the elimination of more than 1,700 state firefighting positions and closure of scores
of fire stations if voters reject key ballot measures in the May 19 special election, according to documents obtained
by The Chronicle on Monday," writes Matthew Yi in the Chron.
"Schwarzenegger's proposal involves slashing $80.8 million from Cal Fire's spending plan - a 10 percent reduction - by eliminating 602 full-time positions and 1,100 seasonal firefighting positions. The cuts would be
part of a series of deep cuts to the state budget.
"Cal Fire, the state's fire agency, has about 5,000 full-time firefighters. At the peak of last year's fire season, more than 2,700 wild fires ravaged the state and the agency hired
extra help: 3,000 seasonal firefighters.
Schwarzenegger's staff disclosed the plan Monday to various groups,
including firefighter unions and fire chiefs in a conference
call, said Terence McHale, public policy director for CDF Firefighters, a union
that represents Cal Fire employees.
"'I think what is happening is that the governor recognizes
that we need to have these kinds of discussions - what kind of cuts can be made without undermining
the integrity of Cal Fire's response,' said McHale, whose union has endorsed the special
election measures.
"One opponent of the ballot measures [Jon Coupal] called the governor's proposal a 'blatant scare tactic.'"
The governor's threats come amid more bad budget news. The Bee's Dale Kessler reports revenues are down.
"California collected just $7.34 billion in personal income tax payments in April,
putting further stress on the state's budget.
The
state controller's office said the collections in April were down from
$13 billion a year earlier. About a quarter of all income
tax revenue
is collected in April, the agency said."
That means revenues are about $700 million below forecast, Kessler reports.
Dan Walters uses last week's ruling by Lloyd Connelly against the Legislature's diversion of redevelopment funds as a reminder of the complexity of California government's fiscal structure.
"And it's a reminder that when we make some new decree about
taxes and
spending, as we are being asked to do again on May
19, it will interact
with other decrees to create unintended consequences"
KQED's John Myers takes a look at Proposition 1C for the California Report.
The AP's Don Thompson reviews Proposition 1F , which would limit elected officials' salary increases when the state's running a deficit.
"The nonpartisan legislative analyst projects the proposition
would bring only minor savings to the state, while
it's uncertain whether the threat of lost raises would
lead to more effective budget negotiations.
"The measure's author, state Sen. Abel Maldonado, thinks it will. He said approval of Proposition 1F will show lawmakers that voters are fed up with political
gridlock.
"'I think it will send a big message to the Legislature,' said Maldonado, R-Santa Maria. 'It goes with the anger people are feeling. I think
government has lost the trust of the voters.'
"The measure indirectly helped pass the state budget
package earlier this year: The Legislature put the proposition on the ballot
in February to appease Maldonado, whose vote was essential
to reaching the Legislature's two-thirds vote requirement for spending plans and tax
increases."
From our Setting a Low Bar polling shop, John Garamendi's campaign released a poll on the congressional race.
"According to the poll of likely special election voters,
80 percent have heard of the Lieutenant Governor, and
he is seen favorably by 35 percent. Only 12 percent hold an unfavorable view."
"Mark DeSaulnier is known by 39 percent, with 16 percent holding a favorable opinion and 13 percent holding an unfavorable opinion. Joan Buchanan is
known by 45 percent, with 17 percent holding a favorable opinion and 12 percent holding an unfavorable opinion. Warren Rupf is known
by 20 percent, with nine percent holding a favorable opinion
and nine percent holding an unfavorable opinion.
"'I have served the people of the 10th congressional district in one form or another for
decades,' Lieutenant Governor John Garamendi said. 'This poll reflects my decades of public service fighting
for issues that matter to voters in Contra Costa, Solano,
Alameda, and Sacramento counties.'
"With 24 percent of likely voters inclined to back the Lieutenant
Governor if there is a special election, Garamendi
also holds a comfortable 11 point advantage over his nearest Democratic competitor.
Sheriff Warren Rupf, Senator Mark DeSaulnier, and Assembly Member Joan Buchanan receive the backing of 17 percent, 13 percent, and 10 percent of voters respectively, with 36 percent of voters forming no opinion."
The Bee's Steve Wiegand reports: "The state is poised to grab as much as $1 billion in federal stimulus money for closing what's referred to as a "digital divide" between Internet haves and have-nots.
"'The importance of closing that gap is almost incalculable,' said Sunne Wright McPeak, president and CEO of the California Emerging Technology
Fund (CETF), a nonprofit underwritten by four merged phone companies
to oversee one effort to expand the use of broadband.
"'Whether it's health care or education or a host of other aspects
of life, broadband (high-speed) access is vital to virtually every person in California.'
"The money that the state is poised to grab is part
of $7.2 billion that was included in the American Recovery
and Reinvestment Act passed by Congress in February.
The money was dedicated to the simple proposition that
getting as many Americans as possible hooked up – at high speeds – to the Internet is a good idea."
"Biennial smog checks would be required for motorcycles manufactured in the 2000 model year and later under a bill making its way through
the California Legislature," writes the LAT's Susan Carpenter.
"Introduced in the Senate in late February, SB 435 targets bikes with illegally modified exhaust systems
and would go into effect in 2012 if passed and signed by Gov. Arnold Schwarzenegger,
an avid motorcyclist.
"The measure has won support from health and environmental
groups that say the move is critical to reducing the
state's smog pollution but has angered motorcycle-rights groups, dealers and manufacturers, which say
it's bad for business and an infringement of riders' freedoms."
The riders' freedoms argument worked so well fighting the helmet
law...
"Known as much for her house troubles as for her lawmaking,
Rep. Laura Richardson is once again taking heat from neighbors and officials
who say she must do a better job of maintaining her
Sacramento pad," reports Jeff Gottlieb in the Times.
"In August, the Sacramento Code Enforcement Department
declared the Long Beach congresswoman's vacant, three-bedroom, 1 1/2 -bath house a "public nuisance." Now the city has posted a notice of violation, citing
neighborhood complaints that the Democrat's lawn is out of control.
"While the offense is a minor one, it hints at the ill
feelings that have developed toward Richardson by her
neighbors, who say she has little regard for their
upper-middle-class neighborhood."
"The UC Board of Regents will vote on a $662-per-quarter increase in student fees over the phone this
week ," reports Reza Farazmand in UCSD's Guardian.
"Plans for discussing the tuition hike were originally
scheduled to take place later this week at UCSD, but
in a statement issued May 1, the regents said the meeting would be switched to a
teleconference in order to avoid distracting campus
officials from efforts to combat the swine-flu virus.
"'Our decision to conduct the meeting telephonically
is to ensure we do not divert the attention or resources
of the campus as they work to keep the campus community
safe and prevent any health issues related to the H1N1 flu,' Chair of the Board of Regents Richard Blum said. 'We thought it best to meet our legal and operational
obligations and conduct the meeting by phone, without
asking the campus to stretch resources better applied
elsewhere during this challenging time.'
"A.S. Vice President of External Affairs Lisa Chen, along with students from UC Santa Barbara, UC Riverside,
UCLA and the systemwide UC Students Association, planned
to stage a rally at UCSD on May 6 to raise awareness about the proposed fee increases.
"Chen was critical of the regents’ decision to cancel their UCSD visit.
"'It shows how nontransparent the regents are and how
they’ve continued to cut students out of the decision-making process,' she said. 'Without any student or anyone holding them accountable
and no one making them feel pressured to vote a certain
way, there’s no repercussions to their vote now.'"
Also set for the phone call will be the approval of
contracts for new UCSF and UC Davis chancellors, making it sort of hard for Leland Yee to make a stink.
And we can say we knew him when. Congrats to the Bee's Shane Goldmacher, who will be moving on to the LA
Times Capitol bureau. Goldmacher, a former Capitol
Weekly reporter had been at the Bee for two years,
and will join the Times bureau next month.
And from our weird video of the day, we turn to Al-Qaeda, which apparently has turned to hip-hop to goose recruitment. Or something like that.
CNN reports on a new video that has "a startling message -- complete with a hip-hop jihad vibe."
"'Mortar by mortar, shell by shell, only going to stop
when I send them
to hell,' the unidentified voice raps on the video, which runs
at least
18 minutes."
Take a look for yourself.
