The Roundup

Jun 25, 2008

Off the records

 

"Despite lobbying efforts by Mayor Antonio Villaraigosa, an Assembly committee Tuesday killed a bill that would have cleared the way for the Los Angeles Police Department to make officers' disciplinary hearings and records open to the public ," reports Joel Rubin in the Times.

"The bill faced stiff opposition from many of the state's powerful police unions, which argued that the measure would compromise officer safety. LAPD Chief William J. Bratton, normally a Villaraigosa ally, pointedly chose not to take a position on the bill and Tuesday expressed concerns about it.

"Three Democrats on the seven-member Public Safety Committee refused to cast a vote. Assemblyman Mark Leno (D-San Francisco) voted for the measure, and Assemblymen Greg Aghazarian (R-Stockton), Joel Anderson (R-San Diego) and Fiona Ma (D-San Francisco) opposed it.

"The bill's author, state Sen. Gloria Romero (D-Los Angeles), lashed out against the members who abstained. They were Assemblyman Jose Solorio (D-Santa Ana), the committee's chairman, and Assemblymen Hector De La Torre (D-South Gate) and Anthony Portantino (D-La Cañada Flintridge).

"'I was really taken aback by the [bill's] death by silence,' Romero said. 'The fear, you could feel it -- the fear of what will happen if you look out for the public's interests when they may differ from the interests of the law enforcement lobby.'"

 

The committee also killed Joe Simitian's ocean-ranger bill, with only two votes in favor of that measure.

 

"Escalating a political fight over electronic bingo, a state senator aligned with California gaming tribes has proposed stiff new penalties for anyone caught operating bingo machines off an Indian reservation," reports James Sweeney in the Union-Tribune.

"Legislation quietly introduced late last week by Sen. Jim Battin, R-Palm Desert, would impose mandatory fines of “not less than $10,000 per machine” on anyone caught with electronic bingo devices.

"In addition, the measure – SB 864 – contains a so-called “bounty hunter provision” that would encourage private parties to bring civil actions against bingo parlors operating machines."

Hmmm...isn't that like the Section 17200 unfair competition law that Republicans repealed in Proposition 64?

“'It is an effort to stop these illegal (machines) – they're called bingo machines, they're really slot machines – from proliferating all over the state,' Battin said.

"But Ravi Mehta, a lobbyist for a group of charities that depend on bingo machine revenues, said the legislation “will effectively put charitable bingo out of business.”

"Charities and nonprofits have turned to legally suspect bingo machines in recent years to boost profits from conventional bingo games that have struggled to compete against the state's flourishing Indian casinos."

 

The Merc News's Mike Zapler looks at the high costs of a delayed budget.

"If lawmakers can't agree on a budget, it would force the state to take out a high-risk loan of more than $10 billion - and pay a premium of possibly hundreds of millions of dollars as security, money that could otherwise be spent on schools, health care and other needs. Beyond that, the state's credit rating could be downgraded, raising the interest costs of future borrowing.

"A quick resolution of the budget - by early to mid-August at the latest - could stave off the need for such a loan, officials say. But opinions differ whether the specter of a cash shortfall will be enough to overcome fierce ideological divisions in the Capitol over how to resolve the deficit. Last year, partisan wrangling delayed a budget until late August, and at that time lawmakers were haggling over less than $1 billion.

"'I think there are a significant number of legislators who think it's OK for the state to go over the fiscal cliff,' state Treasurer Bill Lockyer, a Democrat, said in an interview. 'That would be a very reckless thing to do.' He declined to name which lawmakers he had in mind.

"However reckless the scenario might seem, it has happened before. During the last serious budget crisis, in 2003, the state secured the same type of loan - called a revenue anticipation warrant - of $11 billion. Because California's finances were so shaky, the state had to pay $140 million for "credit enhancement" in addition to interest payments exceeding $120 million, according to Gov. Arnold Schwarzenegger's finance department.

"Experts say the costs could be even higher this year thanks to the meltdown in the nation's credit market. Wall Street lenders are also likely to look askance at a budget that includes gimmicks that push the deficit into future years.

"'The state's financial problems and Wall Street's financial problems are hitting at once,' said Jason Dickerson, a principal fiscal and policy analyst for the non-partisan Legislative Analyst's Office. 'That makes the state's . . . borrowing much more difficult, and potentially much more costly.'"

 

Daniel Weintraub looks at the proposal of Republican leaders to establish a spending cap.  

 

Senate Republican Leader Dave "Cogdill's proposal wouldn't slash spending, but it would tighten a vise around government that would slowly shrink it as a share of the state's economy. His proposal, also backed by Assembly Republican Leader Mike Villines, would limit the growth in government to the combination of population growth and inflation.

"Any tax revenue greater than that amount would be split between debt repayment and a rainy day fund that could only be tapped in years when revenue fell short of the annual growth allowed by the measure. If the new reserve reached a certain amount, any additional surplus would be refunded to taxpayers with a temporary reduction in the sales tax.

"Cogdill and Villines estimate that their plan would still allow government to grow by about 5 percent per year. But since the economy tends to grow, on average, at a faster rate than that, the measure would eventually shrink government relative to the private sector.

"The inevitable effect of that trend would be offset somewhat by the requirement that half the surpluses be used for repaying debt. As the state's debt load shrunk, more money would be available in the budget to finance current programs.

"But Democrats, at least so far, want no part of any new restrictions on state spending or revenue. Assembly Speaker Karen Bass has called the Republican proposal a "diversion" and says the state does not need another formula in the budget. 'The issue,' she said last week, 'is raising revenue, and that's what we need to do.'"

 

Dan Walters wonders if the budget deficit will grow with the sputtering economy.

"Lurking in the shadows, however, is fear that California's troubled economy could become even worse than current forecasts indicate and thus add billions more dollars to the budget gap.

"The sharp spike in unemployment to 6.8 percent reported last week, coupled with dark numbers on other economic indicators, intensifies that fear. But leading economists disagree on whether California is seeing a bottom to its economic woes, whose proximate cause is the residential real estate collapse, or the worst is yet to come.

"The housing meltdown is having both direct negative impacts – fewer construction jobs, declining purchases of building materials, furniture, and so on – and indirect ones. Even Californians whose incomes have remained steady must face rising prices and, if they're homeowners, are seeing personal wealth in the form of home equity decline, so are cutting consumer purchases.

"The economic malaise affects income, sales and property taxes – the latter because of construction slowdowns and declines in taxable values due to market declines – and thus exacerbates the budget deficit.

"Roughly speaking, the state has a "structural deficit" – a semipermanent imbalance between income and outgo – of around $8 billion a year. The economic downturn has doubled it. The official estimate is that the 2008-09 fiscal year budget has a $15.2 billion gap to be closed. But if the economy continues to slide, it will grow larger."

 

"Coachella Valley officials won a round Tuesday in their bid to regain $13 million to offset increased traffic, law enforcement and other effects of tribal casinos," reports Jake Henshaw in the Desert Sun.

"Before Tuesday, there was no legislation to provide the money. But because of a Senate committee, communities near casinos now have a shot. Local leaders also met with representatives of Gov. Arnold Schwarzenegger.

"'They are absolutely interested in helping the localities get the funding,' Palm Springs City Manager David Ready said after several valley representatives met with one of the governor's staff members.

"Others were more cautious.

"'I don't think we lost anything, but I don't think we gained anything,' said Coachella City Manager Tim Brown.

"At issue is $30 million, including the $13 million for Riverside County, that Schwarzenegger stripped out of the current budget because the state auditor raised concerns that local governments weren't necessarily using the funds to offset the impact of casinos."

 

"The Laguna Beach artist who created California's iconic whale-tail license plate is making a splash with state coastal officials, revoking the state's right to use his art after they snubbed his request to share profits from the image with his environmental group," writes Susannah Rosenblatt in the Times.

"Wyland, the marine muralist whose paintings of ocean life envelop buildings around the world, let the state use his hazy blue image of a whale's flukes for environmentally themed license plates 14 years ago in what state officials describe as a "handshake deal."

"The artist approached the Coastal Commission several months ago asking for 20% of the state's annual profits from the plates to fund his nonprofit ocean conservation foundation. California earns about $3.77 million a year from the plates, but the Coastal Commission receives only a third of the funds: about $15 for each new plate sold; roughly $1.4 million a year. The rest goes to other state environmental programs.

"'At the end of the day, the whale tail is my art and my idea, and I own the rights to my intellectual property,' Wyland said in an interview Tuesday from his Laguna Beach studio. 'I won't be stepped on: I'm sticking up for artists' rights, for the common person. I'm sticking up for the oceans and the coast big-time. We're not going away.'

"In recent weeks, the two sides attempted to negotiate terms to preserve the use of the painting on license plates. According to Coastal Commission Executive Director Peter Douglas, Wyland the agency offered to give a $100,000 grant to Wyland’s foundation each year for a decade in exchange for rights to the image, but talks fell through. Wyland, who goes by his last name only, says such an offer was never communicated.

"Douglas termed Wyland's demand for 20% of the plate's sales "outrageous," adding that the state legislature, not the commission, distributes the license plate funds among agencies. According to Douglas, Wyland gave his image to the state unconditionally."

 

The Chron's Cecilia Vega reports on a San Francisco fundraiser for Antonio Villaraigosa that is raising eyebrows.

 

"The invitation-only champagne reception in the Union Square department store for Los Angeles Mayor Antonio Villaraigosa is expected to raise tens of thousands of dollars for his re-election bid next spring.

"But the list of high-profile local politicos who have signed on as co-chairs of the event - namely former Mayor Willie Brown and District Attorney Kamala Harris - is raising eyebrows.

"With Newsom considering a run for governor in 2010 and Villaraigosa also seen as a possible contender, observers say tonight's fundraiser could be an indication of the powerful political alliances that will form if the two mayors face off against each other, with some big Northern California names supporting someone other than the hometown candidate.

"'Whether they want to admit it or not, it's saying these are people who are declaring their support for him (Villaraigosa) over Newsom,' said Barbara O'Connor, professor of political communication at Cal State Sacramento.

Newsom's name isn't mentioned on the invitation, which has added fuel to long-standing rumors about a rivalry between the two camps. Though Newsom was invited, it's not certain he will attend.

"'Schedule permitting, I'm sure he will,' said Newsom political consultant Eric Jaye. 'Mayor Newsom and Mayor Villaraigosa have a very cordial relationship, and Mayor Newsom is always happy to welcome Mayor Villaraigosa to San Francisco.'"

 

And from our Legal Affairs Desk, we bring you the case of the Naked Cowboy vs. the Blue M&M.

 

"The $6 million lawsuit filed by the New York City street performer known as The Naked Cowboy against M&Ms candy maker Mars Inc can go forward on grounds of trademark infringement, a judge ruled on Monday.


"Robert Burck -- for 10 years a fixture in Times Square, who strums a white guitar while dressed only in white cowboy boots and hat and skimpy white underwear -- filed the suit in February over video billboards depicting a blue M&M dressed in his signature outfit.

 

The judge "ordered attorneys for both sides to appear for a pretrial conference on July 11."

 

We wonder what Burck will be wearing... 

 

 

 
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