With the governor's revised budget blueprint waiting in the wings, a business coalition is pushing for a compromise package that mixes Brown's proposal with long-term pension reforms. The Bee's Kevin Yamamura has the tale.
"The group of 12 -- which dubs itself the Coalition for a California Financial
Workout Plan -- said voters should be allowed to decide on tax extensions
as well as permanent fixes that address the "underlying conditions that
got California in
trouble.""
"Members include the Silicon
Valley Leadership Group, Los Angeles Chamber of Commerce, Bay
Area Council and Sacramento
Metro Chamber."
"The coalition outlined
a "Five-Point
Plan" that includes tax extensions, a long-term spending
control, reductions to public employee pensions, changes in the California
Environmental Quality Act and a shift of responsibilities to
local governments. The group also suggested that state leaders address abuses
in redevelopment agencies and enterprise zones without eliminating them."
At the local level, the battle over dollars is even more intense. Dozens of California cities and counties are in financial stress, and a move is under way to block them from declaring bankruptcy without first doing some major due diligence.
From Capitol Weekly's John Howard: "The problem is that cities and counties are getting squeezed
ferociously by shrinking revenues, increased demands for social services,
pocketbook obligations on pensions and retirees’ health care, and cuts in emergency
and law enforcement services – just to name a few at the top of a long list."
"But by going into bankruptcy, the locals can suspend payments – at least
temporarily, pending renegotiation - on their obligations, including the MOUs
they signed with labor, usually after an intense and bitter parley. In effect,
bankruptcy gives them a free pass, regardless of the political fallout. To save
money, cities may outsource services to private companies and order wholesale
layoffs without first negotiating the issues – political cover for anti-union
forces."
"In effect what happened in Wisconsin with state government employment could
occur in California with local government employment, labor believes."
Speaking of the locals, Senate Leader Darrell Steinberg is backing a plan that gives local government more control over the ability to levy taxes. The LAT's George Skelton takes a look.
"Steinberg's proposal (SB 653), which easily cleared its first Senate committee on a party-line vote last week, would be revolutionary. It would give local governments and citizens more control over taxing."
"This scares business and antitax interests that have had the state Capitol pretty much wired and can conveniently influence California tax policy."
"Under Steinberg's bill, counties and school districts would have a huge menu of potential taxes to choose from — subject to local voter approval — in raising money for services, including K-12 education."
"For the first time, they could impose local income taxes. They could hike the sales tax and the vehicle license fee. They could boost levies on liquor, tobacco and soft drinks. And they could enact their own tax on oil production. For starters."
The landmark court case dealing with California prison crowding is going before the U.S. Supreme Court next month. The case, which is commonly referred to as Plata, gets a look from Capitol Weekly's Greg Lucas.
"Brown mentioned the long-running court case in April at a
Capitol press conference touting his budget plan to shift as many as 30,000
parolees and non-violent state prison inmates to counties for monitoring and
incarceration."
"Facing the possibility of a court order demanding the release of 21 percent of
state prison inmates over two years makes his realignment plan “the only path
forward,” Brown insisted.
By the middle of June, Brown said, the Supreme Court “will be rendering a
decision which in all probability will demand the release of tens of thousands
of people currently housed in our prisons."
“The only question is: Are we going to handle it properly with a plan or are we
just going to react, without the money, without the realignment in a way that
will be ultimately self-defeating?”
Meanwhile, state employees are retiring at a greater rate than before, presumably a combination of a number of factors surrounding the uncertainties of government employment.
From Capitol Weekly's Malcolm Maclachlan: "With the state desperately needing to find ways to save money,
lots of people might think “good.” But others point out that many of those
retiring are older, skilled workers who may be hard to replace — or who may
come back and still work for the state as private contractors or retired
annuitants, former state workers who come back and work up to 960 hours a year
while simultaneously drawing their pensions. Cuts under the Arnold
Schwarzenegger administration also cut into the number of retired annuitants
who collected paychecks from the state."
"These aren’t targeted layoffs, but workers with options who are voluntarily
leaving. The reason, some say, is the pressure put on state workers in recent
years - with pressure ranging from mere bad press to the financial strain of
furloughs and salary cuts."
“Maneuvering by politicians is creating a brain drain in the state workforce,”
said Steve Maviglio, a former high-level Democratic staffer and now a political
consultant heading his own firm, Forza Communications."
Down in San Diego, the flap continues over former Gov. Schwarzenegger's decision to cut the prison term of the son of a political crony. The U-T's Dana Littlefield tells the tale.
"District
AttorneyBonnie
Dumanis announced Wednesday
she has filed a lawsuit inSan Diego Superior Court to nullify former Gov. Arnold
Schwarzenegger’s decision to cut nine years off the prison sentence of a
young man who is the son of a political friend."
"Esteban Núñez, 22, was one of two men who pleaded guilty
to voluntary manslaughter and other charges in connection with the October 2008
fatal stabbing of Luis Santos, 22, on the campus of San
Diego State University. Núñez was sentenced in June to a 16-year prison
term."
"On Dec. 31, his last day in office, Schwarzenegger
commuted the sentence to seven years, saying Núñez should not have received the
same sentence as co-defendant Ryan Jett, who prosecutors said inflicted the
wounds that killed Santos."
And finally, a note to our readers: The California Channel and Capitol Weekly are taping the TV show "Politics on Tap" today at Sacramento's Pre-Flite Lounge. If you've got any politics- or government-related questions for our political experts, send 'em along this morning to news@capitolweekly.net. We'd love to see them.
See you tomorrow...
