Now this is how you play political hardball:
"The Obama administration is threatening to rescind billions of dollars
in federal stimulus money if Gov. Arnold Schwarzenegger and state
lawmakers do not restore wage cuts to unionized home healthcare workers
approved in February as part of the budget," the LAT's Evan Halper reports.
Say what?
"Schwarzenegger's
office was advised this week by federal health officials
that the wage
reduction, which will save California $74 million, violates provisions
of the American Recovery and Reinvestment Act. Failure
to revoke the
scheduled wage cut before it takes effect July 1 could cost California
$6.8 billion in stimulus money, according to state officials."
Now, things are getting interesting...
Oh, and by the way, "Reversing the wage cut would require a two-thirds vote of the Legislature, meaning Republican
support would be needed."
Speaking of Republican support, CW reports:
"Assemblyman Sam Blakeslee, a Central Coast Republican in his third term in the
Assembly, was chosen to succeed Assemblyman Mike Villines as
the GOP leader of the lower house. The moved to replace Villines
came less than two weeks before the May 19 special election, in which voters will be asked to
approve a controversial mix of taxes and cuts to help
shore up the state budget."
"The 29-member Assembly Republican Caucus selected Blakeslee
in a closed-door meeting that lasted more than an hour. He is expected
to formally take over on June 1.
"The caucus had become restive in recent weeks amid
Republicans' unhappiness with the state budget agreement negotiated
in February by legislative leaders and Gov. Schwarzenegger.
Villines helped negotiate the compromise and supported
the budget, but rank-and-file Republicans were displeased with the document,
in part because of new tax increases."
Meanwhile, the LAO helped out with the fiscal doom and gloom yesterday.
"California faces the biggest cash crunch in its history
unless voters and legislators – with help from the federal government – cut it down to size, state officials said Thursday," reports Steve Wiegand in the Bee.
"In a report titled "California's Cash Flow Crisis," the Legislative Analyst's Office said the state might need to borrow anywhere
from $10 billion to $23 billion to pay its day-to-day bills in the first few months of the fiscal year
that starts July 1.
"If the state cannot borrow enough, the analyst warned,
it 'could subject many more Californians – including local governments, vendors, and perhaps
in some dire scenarios, state employees and many others
awaiting payments from the state to prolonged payment
delays.'"
This all comes as a new PPIC poll shows five of the six ballot measures
trailing less than two weeks before Election Day.
AP reports, "Five of the six
budget-related measures on California's May 19 special election ballot
are trailing, particularly among voters who say they're closely
following election news, according to a Public Policy Institute of
California poll released Thursday.
"The voters who are really tuned
in are really turned off," said Mark Baldassare, president and chief
executive officer of the San Francisco-based research organization.
"They see the state's budget situation as a big problem, but so far
they don't like the solution."
The six propositions, put on the
ballot by Gov. Arnold Schwarzenegger and lawmakers,
are an attempt to
deal with the state's persistent budget deficits.
The
centerpiece of the package, Proposition 1A, would impose new state
spending restrictions and temporarily extend a series
of tax increases
adopted by the Legislature and signed by Schwarzenegger
in February to
help erase a $42 billion budget shortfall.
Proposition 1A was
opposed by 52 percent of the 1,080 likely voters questioned by the PPIC
in a telephone survey conducted from April 27 to May 4. Only 35 percent
said they supported the measure.
Here's the quick rundown of the numbers:
Proposition 1A (spending restraint): 35 percent yes, 52 percent no
Proposition 1B (school funding): 40 percent yes, 47 percent no
Proposition 1C (lottery): 32 percent yes, 58 percent no
Proposition 1D (childhood development funds): 43 percent yes, 45 percent no
Proposition 1E (mental health funds): 41 percent yes, 48 percent no
Proposition 1F (legislative salaries): 73 percent yes, 24 percent no
"The uphill fight for a slate of budget measures on
the May 19 ballot is being financed largely by alcohol and tobacco firms,
oil companies, sports teams and Hollywood studios that
could be hit by higher taxes if voters reject the $23-billion special election proposals," reports Eric Bailey in the Times.
"Oil and energy companies have given more than $1.1 million to promote the propositions, which are intended
to help balance California's books. The alcohol and tobacco industries have donated
$875,000. Sports teams, including the Los Angeles Lakers, have
pitched in $275,000. Walt Disney Co., Universal Studios and other entertainment
titans have tossed in more than $600,000.
"Each of those industries narrowly escaped more taxes
during the last round of budget negotiations, which
ended in February with a deal signed by Gov. Arnold
Schwarzenegger that temporarily bridged a $42-billion gap. That package included the six budget-related propositions."
The Bee's Kevin Yamamura notes a change in tone from the governor now that a
real wildfire has broken out.
"Gov. Arnold Schwarzenegger started the week promoting
Wildfire Awareness Week in events with fire officials,
during which he suggested he might have to cut 1,700 firefighting jobs if voters reject the May 19 ballot measures.
"He had another such event scheduled Thursday in Riverside.
But an actual fire broke out midweek in Santa Barbara,
forcing a change of plans.
"Schwarzenegger appeared Thursday at the Jesusita fire
in Santa Barbara instead. Instead of warning about
firefighting cuts, he began reassuring Californians
that the state would find the money to protect people.
"He said he 'wanted to make sure you all know, even though we have
this (financial) crisis, we will not be short of money when it comes
to fighting these fires.'"
Assemblymember Pedro Nava is one of the evacuees.
"Calling Silicon Valley "the most innovative place in the world," Gov. Arnold Schwarzenegger on Thursday told an audience of solar technology executives and
industry representatives that 'we need to find ways to reduce our use of fossil fuel and use what we have in abundance in California — the sun,' reports Tracy Seipel in the Merc News.
"'I'm a big believer in solar technology,' he told about 350 people attending a daylong "solar summit" in San Jose meant to accelerate the state's solar economy. 'We want to make this state the solar state.'
"Held at eBay's North Campus, which boasts the city's largest commercial solar installation, the event
was organized by SolarTech, an initiative of the Silicon
Valley Leadership Group, and by the California Solar
Energy Industries Association."
"The California Federation of Teachers filed a lawsuit today against Gov. Arnold Schwarzenegger
and other state officials to recoup $12 billion in education funds it says the state owes schools," reports Kevin Yamamura on Capitol Alert.
"The suit in San Francisco Superior Court comes as CFT
campaigns against Proposition 1A, a spending limit and temporary tax hike on the May
19 ballot. That proposal, in conjunction with Proposition
1B, would help provide schools $9.3 billion of the $12 billion that CFT is demanding.
"But CFT opposes Proposition 1A because it believes the measure would limit long-term funding for schools. The lawsuit is partly a political
attempt to undercut the argument for Proposition 1A by saying the measure is unnecessary because schools
can recover the money in the courts.
"'Proposition 1B is going to fail, and besides that, we still have
to worry about funding for 2009-10,' said Marty Hittelman, CFT president. 'We need to do this right away so we can take care of
2009-10, since they're already debating that. We want to make sure they
understand they have to repay us.'"
The California Teachers Association isn't crazy about the move.
"We're the ones who brought it to the attention of the
governor and told the governor unless the money would
be paid back we would sue," said CTA President David Sanchez. 'For CFT to jump at it like this before the initiatives
fail or pass, I'm disappointed. ... Under 1A and 1B, there's a set plan for how to pay back schools, there's a timetable, a funding mechanism. This lawsuit is
premature.'"
Doesn't sound like two unions that have been doing the merger dance.
"The University of California Board of Regents voted Thursday to raise student fees by 9.3 percent, the latest move to offset state budget cuts to the
10-campus system," reports the AP's Terence Chea.
"The regents also approved the appointments of two new
chancellors — Linda Katehi at UC Davis and Susan Desmond-Hellmann at UC San Francisco — but drew fire from a state lawmaker who called their
compensation excessive.
"The fee increase, approved by a 17-4 vote, is one of several measures aimed at cutting
the university's $450 million budget shortfall. In recent months, UC has
frozen administrator salaries, imposed hiring freezes,
reduced faculty recruitment and cut freshman enrollment.
"The regents approved a base salary of $450,000 for Desmond-Hellmann and $400,000 for Katehi. They also will receive housing, relocation
expenses and an automobile allowance, as well as pension
and health benefits.
"State Sen. Leland Yee, D-San Francisco, who has authored legislation to limit
executive compensation at UC and California State University,
blasted the move. He noted that Desmond-Hellmann will be paid 12 percent more than the current UCSF chancellor, and
Katehi will earn 27 percent more than her predecessor at UC Davis."
From our
Mary Carey Redux file, the AP's Kevin McGill
reports:
"
Stormy Daniels strode onstage at a downtown Baton Rouge restaurant
in a tight black blouse with a plunging neckline and
a knee-length skirt in the popular purple of Louisiana State
University. She introduced herself with a warning.
"'For those of you who don't know who I am,' she told the lunch crowd at The Roux House, 'I'd suggest that you don't Google that until you get home from work.'
"She's a Louisiana-born porn star who says she is considering a 2010 run for the U.S. Senate seat currently held by Republican
David Vitter, whose family-values reputation was marred in 2007 when his name was linked to a Washington prostitution
ring.
"Daniels, 30, insists she's serious. She's spending her own money on a "listening tour" to hear what people have to say as she considers a
possible run, and said she isn't just starting a publicity stunt to promote her work
or embarrass Vitter. However, she said she hasn't lived in Louisiana for seven years — she currently resides in Florida — and would need to re-establish residency to run."
Finally, after four years and over 1,100 Roundups, Scott Lay is signing off as one of our co-authors today to sleep in a bit later, focus on his
day job, and continue to tweak aroundthecapitol.com and ElectionTrack.com.
So, if you start getting your Roundup a little later
in the morning, you'll know exactly who to blame.
Happy trails, Scott.
