Mixed signals

The state budget was dealt another blow Thursday, as a judge ruled the furloughs of state prison guards was illegal.

John Howard reports, "The Schwarzenegger administration plans an immediate appeal of a court decision blocking the forced furloughs of prison correctional officers, a ruling that could have an impact on the strapped state budget.

"The decision, if it stands, would affect about 25,000 state correctional employees, according to an analysis of the state Department of Finance, which writes the governor's budgets.

"Alameda Court Judge Frank Roesch ruled Thursday that the administration's furloughs violated state law by, in effect, forcing employees to work unpaid hours. Prisons are required to be staffed 24-7 and unlike many state departments, there is little flexibility to participate in "self-directed" furlloughs. The correctional officers were working ther hours and banking the time off."

Shane Goldmacher and Eric Bailey profile new speaker John Perez.

"Pérez got tossed toward politics early because of threats during the 1980s to cut government funds for his mother's clinic and his father's disability check. The impact of political decision-making "came right home," Pérez recalled.

"Despite his 15 years working for unions, Pérez these days is broadcasting a desire to find common ground between labor and business.

"I'm a trade unionist, and I don't apologize for that," Pérez said. "But there is a sweet spot. There is this balance between what you get for working folks, and what you need to expand business."

Bill Dombrowski, president of the California Retailers Assn., said business leaders would make a mistake if they dismiss Pérez.

"If people view him just as a union guy they are going to be sorely wrong," said Dombrowski, who considers Pérez -- despite his liberal credentials -- an old-school "pragmatist."

The squabbling between the Assembly and Senate over Race to the Top education legislation was put to bed yesterday. The Chron's Marisa Lagos reports, "Parents would be able to yank their children out of failing schools and ask any other school in the state to admit them under a compromise bill approved Thursday by the state Senate.You have to string together a series of seemingly unrelated events to see it, but this week painted a powerful picture of California's chronic inability to govern itself.

"Both the Senate and Assembly already approved separate pieces of legislation aimed at making the state competitive, but it wasn't until this week that leaders from both houses, as well as the governor's office, sat down to hammer out a compromise.

"That compromise attempted to strike a balance by leaving out controversial regulations for charter schools favored by Assembly Democrats, and including the so-called "parent empowerment" provisions pushed by Gov. Arnold Schwarzenegger and Gloria Romero."

Dan Walters says the events of the week show California is ungovernable.

"You have to string together a series of seemingly unrelated events to see it, but this week painted a powerful picture of California's chronic inability to govern itself.

"We're squandering our limited debt capacity on nonessential things such as stem cell research and bullet trains while our existing infrastructure is crumbling, demand from an increasing population grows, politicians' credibility is almost nil, and bankers deservedly treat us like a Third World country.

Way to go, California."

"Voters are likely to confront the issue next year. Marijuana advocates say they have collected more than enough signatures, over 680,000, to qualify for November's ballot with a proposal to make California the first U.S. state to legalize possession and cultivation of pot for recreational use.

"That change and other proposals are part of the state's plan to compete for President Obama's Race to the Top grants - up to $4.3 billion for all states and as much as $700 million for California alone."

Finally, Capitol Weekly printed the text of outgoing EDD director Pat Henning's farewell email to colleagues. "Resigned.  Quit.  Gone.   Freed.  Vacated.  Left.  Stopped.  Ceased.

Nowhere.   Somewhere.  Happy. Not Here.  No more.  Don't guess."

Amen.