State Controller John Chiang, who signs the state's checks, says he'll stop paying lawmakers after June 15 if they don't have a state budget approved and sent to the governor.
From the Chronicle's Marisa Lagos: The announcement follows questions over whether a budget
bill approved in March would satisfy the state's constitutional requirement
that the Legislature pass a balanced budget by June 15. That bill did not solve
the state's entire budget deficit, though it
is technically the official budget bill for the 2011-12 fiscal year, which
begins July 1."
"California lawmakers routinely fail to pass a balanced
budget on time, but the issue is more important this year because last fall,
voters approved a ballot measure that barred legislators from collecting
salaries and benefits if they do not meet the June 15 deadline."
"In years past, lawmakers had to forgo their pay if a
budget was late but would collect back pay once they passed a budget. Proposition 25, which passed with 55 percent of
the vote, bars legislators from ever receiving back pay, and also lowered the
threshold for passing a budget from two-thirds to a simple majority."
One of the most important bills of the year, to impose rate regulation on health-care insurance companies, emerged from the Assembly after most Democrats voted for it and Republicans staged a walkout. The Bee's Dan Walters tells the tale.
"GOP members wanted to call a caucus to
discuss the measure, Assembly Bill 52 by
Assemblyman Mike Feuer, D-Los
Angeles, but Speaker John A. Perez refused to call a recess. Democrats
then defeated a recess motion with leaders saying Republicans were trying to
stall long enough to kill the bill because of Friday's deadline for action."
"The GOP retreated
to the Rules Committee room off the chamber and closed the door."
"Without Republicans on the floor, the remaining Democrats
conducted a brief debate, with Feuer arguing that regulation by the insurance
commissioner is needed because "health insurance rates are
skyrocketing." Several Democrats were critical of the bill but just one, Sacramento's Richard Pan, voted against it as the measure was
sent to the Senate on a 42-1 vote. Pan is a physician."
An obscure water district in the L.A. Basin has built clout in Sacramento by spreading lots of money around and has rewarded its friends with lucrative contracts. The Times' Sam Allen, Hector Becerra and Patrick McGreevy have the story.
"At the heart of the district's political ties is the Oldtimers Foundation, a nonprofit organization that was run for many years by George Cole, a former Bell mayor and councilman who has served on the water district's elected board of directors."
"In the last five years, Oldtimers has received more than $2.5 million from Central Basin. Oldtimers provides low-cost housing, dial-a-ride programs and other services to municipalities. The water district has paid it to install water-saving toilets and promote water conservation, among other services."
"Central Basin has also paid Oldtimers' board president, former Assemblyman Tom Calderon, more than $750,000 in consulting fees since 2004 for political and legislative advice."
"Calderon's two brothers, both state legislators, have defended the water district's interests in Sacramento. In 2009, Sen. Ron Calderon (D-Montebello) helped thwart an audit of Central Basin's books. This year, Assemblyman Charles Calderon (D-Whittier) proposed legislation that could reduce the fees Central Basin's customers pay for groundwater."
CalPERS, the nation's largest public pension fund, has suffered losses on an Arizona land deal, selling off the property for a fraction of the original purchase price. The Bee's Dale Kasler has the story.
"A partnership led by CalPERS sold a massive parcel in
Goodyear, Ariz., last week for $32.5 million – a fraction of the $400 million
purchase price five years ago."
"While the pension fund didn't provide details on the
transaction, "it would be safe to say that the majority of the loss is
ours since we are the majority investor in our partnerships," said Brad
Pacheco, spokesman for the California
Public Employees' Retirement System."
"The CalPERS partnership paid $150 million in cash and
borrowed $250 million to buy the land in 2006, according to Bloomberg news and
Business Real Estate Weekly of Arizona, which first reported on the deal."
"About 42,000 homes were going to be built on the
10,000-acre site. The land is now owned by an Arizona private equity firm and a
Texas investment partnership."
Meanwhile, State Sen. Christine Kehoe announced she has formed a committee to explore a run for mayor of San Diego.
From Craig Gustafson in the San Diego Union-Tribune: "The news shouldn’t come as any surprise to those
following the race to replace Mayor Jerry Sanders, who is being forced out next
year by term limits. Kehoe is one of several potential candidates that have
been discussed in political circles for months."
"So far, San Diego County District
Attorney Bonnie Dumanis,
a Republican, is the biggest name to confirm she is running although fellow
Republicans – City Councilman Carl DeMaio
and state Assemblyman Nathan Fletcher – have made
moves to indicate that they are likely to run."
"Other potential candidates include
City Councilman Kevin Faulconer and businessman Steve Francis,
both Republicans, and Rep. Bob Filner and former
City Council President Scott Peters, both Democrats."
And now from our "Best Spies in the World" file comes the tale of the British Secret Service -- aka MI6 -- which hacked into Al-Qaeda's online site and diddled with the terrorists' bomb-making instructions. The Brits replaced the explosive stuff with -- get ready for this -- a cupcake recipe. Cool.
"The cyber-warfare operation was launched by MI6 and GCHQ
in an attempt to disrupt efforts by al-Qaeda in the Arabian Peninsular to
recruit “lone-wolf” terrorists with a new English-language magazine, the Daily
Telegraph understands."
"When followers tried to download the 67-page colour
magazine, instead of instructions about how to “Make a bomb in the Kitchen of
your Mom” by “The AQ Chef” they were greeted with garbled computer code."
"The code, which had been inserted into the original
magazine by the British intelligence hackers, was actually a web page of
recipes for “The Best Cupcakes in America” published by the Ellen DeGeneres
chat show."
"Written by Dulcy Israel and produced by Main Street
Cupcakes in Hudson, Ohio, it said “the little cupcake is big again” adding:
“Self-contained and satisfying, it summons memories of childhood even as it's
updated for today’s sweet-toothed hipsters.”
Indeed...
