The state drifted closer to a comprehensive water deal late Monday night, reports the Merc's political team.
"Close to
a final agreement on an issue that has long flummoxed
lawmakers, the
California Legislature finally began taking up the
most sweeping
overhaul of the state's aging water system in a generation.
"In a
tense vote just after 10 p.m., the state Senate narrowly approved one
of the more controversial pieces of the reform effort
— a $9.9 billion
bond bill. The measure would build new dams, repair levees and
finance
the wide-ranging package of reforms — but also saddle the strapped
state with hundreds of millions more in debt payments
each year.
"Earlier,
the Senate also approved a bill that would create a
new governing
structure for the fragile Delta, a source of drinking
water for
two-thirds of California and half of Silicon Valley."
So, it's over right? We can all go home now? Uh, not exactly.
"But how the rest of the
water reform effort remained unclear. As of late Monday
night, the
Assembly had not taken up any more bills and the Senate
still had a
handful of other bills on its plate. Partisan politics and
regional squabbles are still threatening to doom or delay an attempt
at
solving the state's ongoing crisis, despite broad approval of the
effort's primary goals: shoring up the Delta and creating a reliable
water supply for the drought-starved southern part of the state."
Looks like the CalPERS scandal is still growing. Dale Kassler reports the placement agent who is under investigation hosted
a wedding of the CalPERS chief.
"When Fred Buenrostro, then the chief executive of California's giant
public employees' pension fund, was looking for a place to get married,
he accepted an offer to hold the wedding at the home
of good friend and
former CalPERS board member Alfred J. Villalobos.
"Villalobos
hosted the event at his Lake Tahoe mansion on Nov.
6, 2004. "It's what
a friend would do for a friend," he later told The Bee.
Just like a friend might steer a big fat state contract
to a friend against the recommendation of CalPERS staff.
Allegedly...
Marc Lifsher also focuses in on Villalobos. "When big investment firms want to tap public pension
funds for money, they often put in a call to Alfred
J.R. Villalobos.
"From
a modest office near Lake Tahoe's casinos, Villalobos has spent years
helping Wall Street players like Apollo Management
gain access to the
vast wealth held by the California Public Employees' Retirement System
and other funds.
"By his own estimate, Villalobos netted his
clients at least $16 billion in capital through 2005. His two firms
have earned about $53 million in fees from investment funds that did
business with CalPERS over the last seven years, records
show, a sum
that impresses even hardened veterans of state politics.
"I'm
blown away by the amount of money he was paid," said former Assembly
Speaker Willie Brown Jr., a former CalPERS board member. "Fifty million
in seven years is a lot of money."
When Willie's blown away, you know there's a problem...
"Villalobos recently emerged as a
central figure in an ongoing investigation of placement
agents –
brokers who help private-equity firms obtain big investment dollars
from CalPERS and other public pension funds."
Uh-oh...
Today is Election Day in CD 10, as John Garamendi is hoping to go to Washington.
"Slightly more than half of
Contra Costa and Alameda county voters live in cities
or other
political districts with an election, including those
in the vacant
10th Congressional District, San Ramon and Walnut Creek.
"Voters in Newark, Emeryville and Albany will also head
to the polls.
"Five
candidates are competing in a runoff to replace former
Rep. Ellen
Tauscher, a Democrat, in the 10th Congressional District. Two-thirds of
the heavily Democratic district is in Contra Costa,
with smaller
segments in Alameda, Solano and Sacramento counties."
It's lonely at the top. And now, with Gavin Newsom out of the way, the press is free to train its fire on Jerry Brown. Shane Goldmacher looks at the money Jerry Brown has steered to charities from
political donors.
"Since taking office almost three years ago, Brown has
raised nearly
$10 million for two charter schools, the arts academy
and a military
institute, that he founded as mayor of Oakland. In
addition to tapping
the card clubs whose licensing and operations his Bureau
of Gambling
Control watches over, he has held out his hand to influential
industries and the politically connected.
"Those who have
answered include Zenith Insurance ($95,000), Pacific Gas & Electric
($75,000), AT&T ($70,000), Wal-Mart ($50,000) and Bank of America
($30,000), state records show. Hollywood producer and Democratic
financier Stephen Bing donated more than $1 million.
"Such
giving allows contributors to simultaneously curry
favor and appear to
remain above the political fray, said one advisor to
a major donor,
requesting anonymity for fear of alienating a client.
"It
looks altruistic rather than something that's sheer, raw politics," the
advisor said. Groups are giving to Brown "with the hope that he will
keep an open mind should you need to communicate with
him in the
future."
Goldmacher also writes about the departure of Schwarzenegger's budget guru Mike Genest . Just in time for the next round of budget fun!
"Budget czar Mike Genest announced his departure Monday, as a financial
crisis continued to grip the state. His Department
of Finance has
predicted a $7.4-billion deficit for the fiscal year that begins next
summer.
"The figure is expected to balloon -- perhaps tripling -- as a result of
sagging revenues, court rulings blocking recent budget
cuts and overly
optimistic savings projections by the Legislature and
governor."
We've got $20 ready to put down on Ana Matosantos being tapped to replace Genest, but can't seem to find any takers...
"The female lobbyist
who was the subject of sexual boasting by former Assemblyman
Mike
Duvall issued her first public statement Monday, describing
his
allegations as untrue and her experience as a "professional and
personal nightmare," Torey Van Oot reports.
"The
statement from Sempra Energy lobbyist Heidi Barsuglia came in response
to an announcement that the Justice Department would
not file any
charges over the conduct described in a legislative
committee tape in
which Duvall can be heard detailing sexual encounters
with two
lobbyists.
"Sempra Energy also issued a statement saying its own
investigation into the matter had concluded and that
Barsuglia, who had
denied any wrongdoing from the outset, would return
to work. "What is shocking to me and my family is that anyone
would have taken
seriously the statements of someone boasting about
his alleged exploits
or even believed for a moment that they were true," said Barsuglia, who
was identified in an ethics complaint as the former
lawmaker's mistress."
