"California's budget problems deepened today as the state reported that
tax receipts plummeted nearly $1 billion last month due to plunging corporate profits," writes the LAT's Evan Halper.
"The news comes as the state moves closer to the July 1 deadline for lawmakers to close California's budget gap, which had earlier been estimated at $16.5 billion. There is little agreement in the Capitol about how to go about doing that.
"Democrats have been calling for multibillion-dollar tax increases. Republicans have signed pledges vowing never to vote for new revenue, demanding instead that the budget be balanced with steep spending cuts.
"Corporate taxes alone came into the state at $869 million below what was forecast in Gov. Arnold Schwarzenegger's budget, released in January. Overall, revenue was down $912 million for the month."
But we're sure the vibrant housing market will make up for all of that!
Meanwhile, the guv is
touting his non-existent budget reform plan.
"The governor spoke with local leaders at Sherwood Hall in Salinas about his Budget Stabilization Act, a proposal to restructure the state's approach to budgeting and spending taxpayers' money," reports the Salinas Californian's Sunita Vijayan. "California is facing an expected $14.5 billion budget deficit for the next fiscal year."
Actually, we're hearing that may be closer to 18 or 19 billion. But we digress...
"In his hour-long discussion, Schwarzenegger said the proposal will ensure that schools get the money they deserve.
He said Proposition 98 - the 1988 law that requires 40 percent of the state budget be spent on education - is flawed, because a drop in revenues leaves fewer funds available.
"'I love education,' Schwarzenegger said. 'I feel right now that education needs reform, more accountability, but also even more revenues. ... I would fight for that, but we got to go and reform the budget system so there is reliability.'"
"In his remaining months in office, outgoing Assembly Speaker
Fabian Nunez hopes he can leave a long-lasting mark on the Legislature with new term limits, a ban on fundraising during key periods and a new way of drawing state voting districts," reports Nancy Vogel in the Times.
"He and the Assembly's minority leader,
Mike Villines (R-Clovis), are discussing a constitutional amendment package that could be placed on the November ballot by the Legislature if two-thirds of lawmakers agree.
"'I can't tell you that it's going to materialize,' said Nunez, a Los Angeles Democrat, in an interview. 'Am I working on it? Yes. Am I putting time into it? Yes.'
"One proposal would extend the terms of state legislators. In February, voters defeated a Nunez-backed measure that would have allowed him and other termed-out officeholders to run for reelection.
"Nunez said he still wanted to double the amount of time legislators could stay in the Assembly, but his latest proposal would not apply to those in their final terms.
"He and Villines also are discussing a ban on fundraising by lawmakers during budget talks and when critical votes are being taken, and a proposal to take from legislators the power to choose their voters by drawing their own districts.
"Led in part by former Gov.
Pete Wilson and two major political donors from Orange County, a group of moderate Republicans
will announce Wednesday a new organization focused on recruiting the "next generation" of GOP candidates for statewide office, including governor and the U.S. Senate," writes the LAT's Phil Willon.
"The organization, called
California Republicans Aligned for Tomorrow, was created to turn around the GOP's dismal record in those contests since 1994."
"
Larry Dodge of Orange County, founder of the banking and insurance firm American Sterling, will serve as chairman of the new Republican organization. Dodge, who was born in Redlands, has contributed or lent more than $5 million to Republican candidates and party organizations since 2002.
"Dodge, Wilson and other founding members of the group, nicknamed "CRAFT,'' will officially announced the group's political goals Wednesday morning in a statewide telephone call."
"The head of California's embattled prison system announced his retirement Tuesday, a departure that comes as the state faces the prospect of increased federal intervention and soaring reform costs," reports the AP's Don Thompson.
"
James Tilton, who was appointed two years ago by Gov. Arnold Schwarzenegger, said he
is stepping down for health reasons that he would not specify. He will be replaced May 16 by
Matthew Cate, who has been inspector general of the corrections department since 2004.
"After consulting with my doctor and my family, I have made the decision to retire and will be doing so with great pride in what we have been able to accomplish," Tilton, 59, said in a written statement.
"He leaves a department that has made significant reforms under Schwarzenegger but still faces steep challenges.
"Later this year, a special panel of three federal judges could decide whether severe inmate overcrowding is to blame for myriad problems within the 33 state prisons. The judges could order the state to release tens of thousands of inmates before their terms end or to cap the inmate population.
"The state already has embarked on a $7.8 billion prison and county jail building program to ease the overcrowding and faces another $7 billion bill to improve inmate medical services and mental health care."
The Bee's Andy Furillo
introduces the new guy. "California's fourth prison chief in a row is leaving earlier than planned from a meat-grinder of a job reputed to be among the toughest in state government.
"So what makes the incoming
Matt Cate think he can depart on his own terms?
"'This mission is where my heart is,' said Cate, named Tuesday by Gov. Arnold Schwarzenegger to the $225,000-a-year job running the state's massively challenged prison agency. 'Public safety has been my career because I care about it.'"
Dan Walters
looks at the several bills that would mandate health plans to cover specific procedures, which has become a hot topic as state spending is reined in.
"The mandated coverage ranges from acupuncture treatments and mental health services to hearing aids and cleft palate treatments. And the health insurance industry's lobby, California Association of Health Plans, contends that collectively they would raise premiums and private health care costs by $2.7 billion a year and could strip as many as 85,000 Californians of insurance because of those costs.
"The most expensive measure, the group says, would be Assembly Bill 1774 by Assemblywoman
Sally Lieber, D-Mountain View, that would require health plans to cover gynecological cancer screening. Its cost was tabbed at $2.1 billion a year.
"Whether the insurance industry's cost estimates -- which it says were developed independently -- are accurate, there's no question that new mandates generate costs that must be borne by someone and provides benefits and financial dividends for someone else. Such mandates, both medical and otherwise, are very much like the tax loopholes that liberals often decry, continuing year after year with little or no review of their efficacy."
"Fish and Game officials on Tuesday reluctantly voted to shelter a diminished population of Sacramento River chinook by
barring all ocean salmon fishing in state waters, out three miles from shore," reports Matt Weiser in the Bee.
"The unprecedented closure will last through April 2009.
"The move follows last week's ban on salmon fishing in the 200-mile swath of federal water off California and Oregon.
"And on May 9, the state commission is likely to extend the closure to recreational salmon fishing in the Sacramento, American, and other Central Valley rivers. That's never happened before."
Meanwhile, "[a] dozen San Jose high school administrators, union leaders and school board members urged state lawmakers Tuesday to restore proposed cuts to education funding, but the effort
fell short of their expectations because of a snafu that kept hundreds of students from joining them," writes Edwin Garcia in the Merc News.
"Initially, 12 busloads of students, teachers and community leaders were to rally on the steps of the Capitol, but East Side Union High School District officials called off the public rally part of the effort late Monday after being informed that state authorities had rescinded their demonstration permit.
"Not so, says the California Highway Patrol, which oversees security at the Capitol - the permit was never yanked.
"'I think it was just a miscommunication on the part of the East Side Union High School District,' said CHP Officer
Keith Troy, who issues the permits. "They were approved and they have a permit for the north side of the steps, for 500 people."
"Troy said he had "no idea where they got the information that they were terminated."
"That was frustrating news to the California Teachers Association organizer who helped apply for the permit.
"'They pulled that plug last night on us,' said
Rick Wathen, a CTA political organizer. 'They said we didn't have a permit. . . . I think it's very interesting that now they're changing their story a bit.'
"Wathen didn't know who at the district office received the information and Superintendent
Bob Nunez didn't immediately return a phone call for comment after Troy denied that the CHP pulled the permit."
And forget putting air marshals on flights. The British are
putting priests on busses to stop unruly behavior from teenagers.
"The religious volunteers - or "school pastors" - will also attempt to turn young people involved in crime away from breaking the law and into studying the Bible.
"The scheme will be launched in the summer and will be led by The Ascension Trust's director, Reverend Les Isaacs. It will be launched in the Purley area and supported by police."
Maybe if it all works out, they can stick a couple in the back of the Assembly chambers during floor sessions.
