Bump in the road

Jul 16, 2009

After days of optimism, budget talks hit a snag Wednesday , as education funding remains the major hurdle to a budget deal.

 

The LAT's Halper and Bailey report, "Fresh off a disappointing evening of budget negotiations that halted amid simmering frustration, legislative leaders and Gov. Arnold Schwarzenegger vowed to forge ahead today in hopes of settling on a final package to stem California's $26.3-billion deficit.

"The prime obstacle that reared up to undercut the talks late Wednesday was a difference over how to tweak voter-approved school funding formulas so the state can cut billions of dollars it still needed to balance its books -- but guarantee that school funding was restored when the economy rebounded.

"I hate to describe it as a setback," said Assembly Speaker Karen Bass (D-Los Angeles), referring to the talks, "but it is definitely a stall."

 
Aside from the disagreement over education funding, (Schwarzenegger spokesman Aaron) McLear said Democrats remain "unwilling" to make deeper cuts to create a healthy reserve so the state can weather an economy that could get worse before it gets better.
 

The Chron's Matthew Yi reports, "With the state facing a $26.3 billion shortfall, school spending is expected to face billions of dollars in reductions, and Democratic lawmakers are arguing to have $11 billion in funding repaid in future years.

 

But Republican lawmakers argued they should focus on solving the current deficit rather than future spending."What we're focused on is this year's budget," said Assembly GOP leader Sam Blakeslee, R-San Luis Obispo.

 

"It’s clear that we are very close to obtaining as good a deal as we are likely to get given the state of negotiations and the leverage available to us with unified rep caucuses and a sympathetic governor.There remain a few important outstanding questions and no deal is yet inked.

"However, it is now time for us to meet as a caucus and review everything we understand will be in the deal to ensure we can deliver the votes prior to making any public announcement that the deal is “done”.

"We will hold caucus at noon tomorrow to review the components of the tentative agreement and identify the last outstanding issues to be resolved.

"The best news - NO TAXES."

 

Looks like someone's determined not to get the Dave Cogdil treatment...

 

Big 5 meetings aren't the only thing kept private around the Legislature, Patrick McGreevy reports.

 

"State Senate officials have secretly approved a $70,000 legal settlement that prohibits a staffer who accused a former colleague of harassment from going public with the charges.

"The payment, made last month, is the latest in a string of such settlements, most of which include confidentiality clauses that keep taxpayers in the dark about what exactly they are paying to settle and why.

 

"The agreement, obtained by The Times through open-records laws, does not identify the staffer alleged to have engaged in misconduct or the nature of the misconduct. It demands that the accuser not "in any way publicize the terms or amount of this agreement unless required by law" and says she is to respond to questions "by stating words to the effect that 'the matter has been resolved.' "

"Such deals raise "a serious question about using public funds to pay for silence," said Terry Francke, general counsel for Californians Aware, a group advocating open government. "Buying the ignorance of the public with public money seems contrary to the spirit of open government. It seems a kind of betrayal of public trust."

"The $70,000 was paid to Allison Bonburg, who was a field representative for U.S. Rep. Tom McClintock when he was a GOP state senator from Thousand Oaks. McClintock, who was elected to Congress in November from a Northern California district, is not the alleged harasser, a legislative source said."

 

Shane Goldmacher reports the governor got some new power this week to alter the state's tax policy.  "Judy Chu's election to Congress on Tuesday after more than two years on the state tax board could change the balance of power on the (Board of Equalization), which can affect corporate taxes to the tune of millions of dollars.

"Her now-vacant board seat gives California's business lobby a coveted opportunity for more influence on its decisions, especially if Gov. Arnold Schwarzenegger, a longtime ally, makes a business-friendly appointment to replace her, as he is expected to."

 

And there's one more out of work state employee. E.J Schultz reports, "Former Assembly Member Nicole Parra is leaving her economic-development job with Gov. Arnold Schwarzenegger's administration , a post the governor created just for Parra.

 

"Parra will step down July 31, according to a letter she recently sent to the governor. She declined to comment when reached by phone Wednesday. She has previously expressed interest in becoming a lobbyist.

 

Schwarzenegger drew some flak for creating the position in January. At the time, he was preparing to furlough state workers to deal with the state's mounting budget problems. Parra's salary is $128,124, although she is now making 14% less as a result of the three-day-a-month state furloughs."

 

"San Francisco mayor Gavin Newsom has named State Senator Alex Padilla (D-San Fernando Valley) as the chairman of his 2010 gubernatorial campaign ," the LA Daily News reports. 

 

"Padilla, 36, is a former L.A. City Council president and, as an influential Latino and pro-labor politician, is expected to draw Hispanic and union voters to Newsom's column in what is anticipated to be a tough fight with California Attorney General Jerry Brown for the Democratic nomination."

 

And finally, anyone whose dealt with one of those pesky air matresses, or any sort of household explosives, can relate to this story from our Germany bureau. "A German man who tried to fix his leaky air mattress blew up his apartment instead , the fire brigade in the western city of Duesseldorf said Wednesday.

 

"The 45-year-old man used tire repair solvent to plug a hole in his airbed and left it overnight.

 

"But it blew up when he went to inflate it the next day. 'A spark from the electric air pump ignited it,' a fire brigade spokesman said.

The blast pushed his living room wall into the building's stairwell and caused extensive damage to walls, windows and furniture.