The panel that sets politicians' pay and perks decided to scale back on one of the most treasured perks of all for lawmakers -- state-paid cars. The decision came despite 11th-hour wrangling by Gov. Jerry Brown, who appointed a new chair of the commission who sought to delay the vote.
From the Bee's Jim Sanders and Torey Van Oot: "The state's independent compensation commission voted
Thursday to replace the existing program in December with a $300 monthly
allowance to defray legislators' costs of driving their personal vehicles."
"Commissioner Chuck Murray, who was replaced as chairman Wednesday night,
noted that California is the only state to provide all lawmakers
with a vehicle of their choice. The program is overly generous, he said. "We feel the pendulum has swung too far to the left,
and we're trying to bring it back to the middle," Murray said. "The
way they reimburse for cars went out in the private sector eight to 10 years
ago."
"Switching to a set car allowance, costing about $432,000
annually, would cut the state's current expense for legislative cars roughly in
half, according to Commissioner John Stites II, who pushed the idea."
The state may be in dire fiscal straits, but at least one public agency seems to be doing fine -- California's stem cell agency -- which approved a 16 percent budget increase. David Jensen at the California Stem Cell Report has the story.
"The California stem cell agency is proposing an $18.5 million operational budget for the coming fiscal year that will include a more than 12 percent increase in staff and reflect the rising costs of monitoring more than 400 grants and loans."
"The agency did not disclose the size of the increase for the spending plan compared to actual spending projected through the end of the current fiscal year June 30. CIRM only offered a comparision to spending that was approved last June ($16 million). The proposed budget is up 16 percent from that figure. The agency, however, has been running behind the approved spending levels so the actual budget increase is likely to be substantially higher than 16 percent."
"In documents prepared for a meeting Tuesday of the CIRM directors' Finance Subcommittee, the agency's staff briefly noted that a cash crunch could occur in the coming fiscal year if the state does not sell additional bonds, the only real source of funding for CIRM's $3 billion effort. A continued suspension of bond sales is likely this year because of the state's financial crisis."
Jerry Brown headed to Stockton and got an earful from teachers about the impacts of budget cuts on schools. The LAT's Anthony York tells the tale.
"Principals,
teachers and parents told of years of school budgets being slashed, programs
like school athletics being eliminated and ballooning class sizes. Most in the
crowd said they favored Brown’s plan to extend billions in certain taxes to
offset deeper education cuts."
"Ripon, Calif., teacher Kate Salcedo, who received a layoff notice this year,
said things are only going to get worse unless Sacramento intervenes. “As a
teacher, I’m going to be OK ... but the students will not,” she said. “It
saddens me both as an educator and as a parent.”
"Unlike Brown’s appearances in Riverside and Orange County last week, this
latest foray out of the Capitol was to an area of the state represented by
Democrats. He said he will continue to host events like the one in Stockton on
Thursday because “I want to see for myself what the effect of state policies
are.”
The cuts in the compromise agreement that averted a federal government shutdown included a big hit on community clinics, reports Dan Weintraub in HeathyCal.org.
"The budget compromise struck last week by President Obama
and Republicans in Congress will take $600 million from the anticipated growth
in funding for community clinics, which were expected to play a major role in
providing care as part of the federal health reform plan."
"The agreement shaves that money from $1 billion that had
been set aside for the expansion of community health centers, according to
Carmela Castellano-Garcia, president and chief executive officer of the
California Primary Care Association.
"Of the remaining $400 million in that fund, $250 million
is already committed, leaving just $150 million to finance new expansions for
the health centers. Three hundred and fifty health centers have already applied
for a piece of that money. Castellano-Garcia said the $150 million left in the trust
fund is “insufficient to allow for a significant expansion in the number of
health centers.”
Amazingly enough, there are some positive signals surrounding the budget imbroglio, notes the OC Register's Brian Joseph.
"The California Department of Finance released its
monthly bulletin today and its full of hopeful signs that the
economy is improving and that the state may have some more money to play with.
Consider:
"California added 96,500 (non-farm) jobs in February, the
largest month-to-month growth since at least 1990. February was the fifth
consecutive month that California has added jobs.
Nonresidential construction permits were up in February
11 percent from February 2010."
"Job gains were found in numerous sectors:
professional and business services; construction, information; trade,
transportation and utilities; leisure and hospitality; manufacturing; financial
services; educational and health services; mining and logging. The only major
sector to lose jobs? Government."
"General Fund cash for the month of March was down $277
million below projections — but year to date revenues are $763 million above
projections."
Meanwhile, the nation's two largest public pensions funds -- CalPERS and CalSTRS -- are stepping up their efforts to reform corporate boards of directors.
From CalPensions' Ed Mendel: "A new listing of potential directors announced by the
pension funds last week is aimed at increasing the “diversity” of corporate
boards. The pension funds say the change can alter “group think” and improve
corporate performance, boosting shareholder value."
"Gov. Brown and the Little Hoover Commission want more
public member on pension boards dominated by labor and management
representatives, who presumably have a self-interest in raising pensions and
cutting employer contributions."
"Much of the motivation for both reform movements comes
from the financial crisis. Corporate missteps contributed to the market crash,
and huge pension fund investment losses are driving up government pension
costs."
