The state's fire fighting agency, Cal Fire, used some of the money from a new annual fee to conduct wildfire investigations -- a move that the Legislature's lawyer says is a no-no.
From the Bee's Kevin Yamamura: "It is another questionable fiscal practice related to the California Department of Forestry and Fire Protection's wildfire cost-recovery program after the department hid settlement funds for several years in a nonprofit account."
"In the face of multibillion-dollar deficits since 2008, state leaders have pursued cash in aggressive ways. That includes imposing new fees and seeking compensation from individuals and businesses alleged to have sparked wildfires."
"In 2011, Brown and Democratic lawmakers approved an annual fire fee on owners of roughly 825,000 rural properties, later set at $150 per year. Because lawmakers passed the fee on a majority vote, rather than two-thirds, revenues must be spent in a way that directly benefits property owners. The state is expected to collect $90.8 million in such fees next fiscal year."
Speaking of Cal Fire, Republicans in the Legislature, never shy about poking into a Democratic administration, want a federal investigation into the agency's money handling.
From the LAT's Jeff Gottlieb: "State Republican legislators want federal prosecutors to investigate the California Department of Forestry and Fire Protection for putting $3.6 million from legal settlements into an off-budget account."
"This subterfuge money has been spent on a wide array of questionable expenditures that has nothing to do with reimbursing the state for firefighting costs," the legislators wrote in a Friday letter to Gov. Jerry Brown, asking him to request an investigation by the U.S. attorney."
"The letter follows a story in The Times that found that from 2005 to 2012, Cal Fire, as the department is commonly known, placed funds with the California District Attorneys Assn. to use for training and equipment. Cal Fire regulations say the money is supposed to be sent to the state general fund."
Texas Gov. Rick Perry, again, is making overtures to California businesses to relocate in Texas and one of the companies he has set his sights on is down in Oxnard.
From Carol Lawrence in the Ventura County Star:"Haas Automation Inc. in Oxnard will host a visit from Texas Gov. Rick Perry on Feb. 12, as the governor kicks off a campaign in California to lure businesses to his state."
"Perry likely has chosen Haas because the manufacturing giant and its site selection company, which negotiates packages with state and local officials on incentives and other deals, have been requesting proposals from Texas, North Carolina and Nevada, at least, for a possible expansion outside California."
“I hope it doesn’t alarm anyone. We haven’t made any decisions, and I hope people understand we want to stay in California,” said Peter Zierhut, vice president of European operations for Haas, a maker of computer-controlled machines."
Meanwhile, the pain of the recession lingers on, especially at the state's premier university.
From Capitol Weekly's Cindy Baker: "The Great Recession appears to be easing, but at least one group in California remains financially stressed – students at the University of California."
"Tuition, now at about $13,000 a year, has skyrocketed 62 percent since 2007, a figure that doesn’t include an array of necessities, such as books, health insurance,
transportation and other costs. When those are factored in, students who live on on-campus pay about $32,000 annually. Off-campus students save a bit, paying about $29,000."
"And these costs are for California residents. Non-resident tuition and costs are nearly double, or about $55,000 annually for those living on campus. The fact that out-of-state students pay more is a lure for UC and other educational systems who seek to plug strapped budgets."
The feds are going after a critical piece of Wall Street -- the people who rate credit worthiness.
From the LAT's Alejandro Lazo and Andrew Tangel: "The federal government is embarking on one of its most ambitious efforts to assign blame for the financial crisis, going after Wall Street's biggest credit rating firm for its role in pumping up the housing bubble."
"The Justice Department filed a lawsuit late Monday in Los Angeles federal court against Standard & Poor's Corp. The suit accuses the company's analysts of issuing glowing reviews on troubled mortgage securities whose subsequent failure helped cause the worst financial crisis since the Great Depression."
"The action marks the first federal crackdown against a major credit rater, and it signals an untested legal tack after limited success in holding the nation's banks accountable for the part they played in the crisis."
