Changes to the state’s sales tax system have been suggested as a solution to California’s feast-or-famine budget problem for years – SB 8, which would do just that, appears to be making headway. From John Myers at KQED.
“2015’s version of the debate is the work-in-progress Senate Bill 8 by state Sen. Bob Hertzberg (D-Van Nuys), an omnibus tax overhaul proposal that’s generated a lot of discussion — so much that some think it could provide the basis of a 2016 ballot initiative if the Legislature takes a pass.
“Hertzberg, a former Assembly speaker who spent a few years leading the bipartisan think tank California Forward, has become a passionate activist for getting away from the traditional sales tax structure.
“’The economy’s changed,’ said Hertzberg earlier this year in a Senate Democratic caucus video. ‘If you’re a lawyer, if you’re an accountant, if you’re an engineer, if you’re a political consultant, those are services which should be taxed.’”
With a growing budget surplus, Gov, Brown appears poised to propose increased spending on education – lawmakers have their own ideas. From Judy Lin at AP:
“Lawmakers expect Gov. Jerry Brown to suggest spending more tax dollars on public schools and community colleges while asking for more money to be set aside for a rainy day when he releases his updated budget this week.
“But with a growing $3 billion surplus, Democrats who control the Legislature will jockey to increase funding for child care, higher education and other social programs.
“Assembly Speaker Toni Atkins said those areas have suffered spending cuts over the last decade and while lawmakers ‘know we're not going to get everything we want,’ she and other Democratic leaders ‘expect good news.’"
High Speed Rail service between San Francisco and Los Angeles is set to launch in 2028 – if ticket costs match projections, they will be some of the cheapest in the world. Ralph Vartabedian and Dan Weikel, Los Angeles Times:
“According to official ridership estimates, between 18 million and 31 million passengers annually will board the train in its early years. And the project's most recent business plan predicts that by 2030, two years after L.A.-to-San Francisco service begins, ticket sales will hit $2 billion annually, or roughly $700 million a year more than operating expenses. Even at the low end of ridership projections, state officials say, revenues will more than cover operating costs.
“The current [projected] $86 fare is calculated in 2013 dollars based on a formula that prices tickets at 83% of average airline fares to help attract riders. The rail fare is an average that includes economy and premium seats, nonstop and multi-stop trains, as well as last-minute and advance purchase tickets. A premium, same-day nonstop bullet train trip would cost more than $86.
“But compared with current average prices on several high-speed rail systems in Asia and Europe, $86 would be a bargain, equating to about 20 cents a mile or less, the Times review found. The analysis was based on a 438-mile route in the mid-range of what state officials expect the final alignment to measure.
The Bee continues its series profiling freshman legislators – this week, meet Big Bear Lake Republican Jay Obernolte.
Tom Steyer, California’s answer to the Koch Brothers, has jumped into the SD-7 mudpit, proferring $150K to an anti-Glazer committee. Josh Richman, Political Blotter:
“Days after a Koch-related group launched an ad attacking Assemblywoman Susan Bonilla, D-Concord – and so benefiting her rival, Orinda Mayor Steve Glazer – the San Francisco hedge fund billionaire turned environmentalist gave $150,000 Friday to Working Families Opposing Glazer, a committee created by labor unions to help Bonilla win.”
California’s cap-and-trade program was designed to have environmental dividends, but its financial rewards have caught the idea of lawmakers and interest groups. From Jeremy White, Sacramento Bee:
“With California’s growing cap-and-trade program expected to yield a budgetary bonanza, lawmakers and interest groups have ample ideas for how to spend the money. Floating proposals ahead of a pivotal period for budget negotiations, they say they want to fund port improvements, pay for heavy-duty trucks and ferries, nurture urban rivers, sponge up carbon in soil and provide discounted bus passes.
“They are vying for a surge in new revenue that will be available this budget cycle and could continue pouring in for years to come.
“’It’s the next big fight,’ said Assemblyman Henry Perea, D-Fresno. ‘It’s going to continue to be a fight as more revenue comes in.’”
School districts are proposing that a $3.7 billion per year CalSTRS rate hike be spotlighted as a separate budget item, ensuring that the cost isn’t buried among other expenses. From Ed Mendel, Calpensions:
“The new funding formula gives extra money to targeted schools with large numbers of students who are English language learners, recipients of subsidized meals, and from foster homes.
“If there is no separate budget item, a district that gets mainly the base grant might have much of its Proposition 98 increase eaten up as the CalSTRS rate increase is phased in. But a district that gets additional targeted money could still get a substantial increase.”
As the drought continues to worsen, we know that there’s been one burning question on everyone's mind: what’s happening with the lawns of California celebrities?
Thank goodness, the New York Post has come to the rescue (with photos, even).
“’Let them drink dust!’
“As these aerial photos from The Post prove, Hollywood celebrities like Kim Kardashian, Barbra Streisand and Jennifer Lopez continue to suck up water to keep their gardens fresh and lawns green, while Southern California withers from a devastating drought…
“The Hidden Hills estate of Kim Kardashian/Kanye West is so lush, even their wealthy neighbors are outraged.
“’The Kardashian flowers and hedges are right in our face,’ one resident told The Post. ‘It’s disgusting. You walk by and you can smell the freshness.’”
