The Roundup

Sep 22, 2008

Mop up

"Even as Gov. Arnold Schwarzenegger signs a spending bill this week to end the state's record-long budget impasse, officials say a crisis of equal magnitude looms next year because of the weakened economy, uncertainties about the use of future lottery revenue and political gridlock among state legislators," report Matthew Yi and Michael Cabanatuan in the Chron.

 

Don't we get any time to celebrate the legislative and gubernatorial mastery that crafted this wonderful budget? Just a little bit? Apparently not.

 

"California lawmakers and their budget advisers estimate that the Legislature, which on Friday approved a $104 billion general fund budget that plugged a $17 billion gap 81 days into the current fiscal year, will be looking at a deficit of at least $1.6 billion nine months from now.

"But that number could easily balloon to $7 billion or more, according to Capitol observers and experts on the state budget, particularly given uncertainty over whether voters will approve Schwarzenegger's plan to borrow against future state lottery sales to generate $5 billion next year and the same amount the year after that. The issue will probably go to voters in a special election next year.

"Another big question is the state of the economy. Last week's meltdown on Wall Street caught the attention of budget advisers and lawmakers who say the slowing economy, which already has taken a toll on the state's coffers, may create more havoc before revenue begins to turn around.

"'All these (projected deficit) numbers will be dwarfed if in fact we are heading into a serious recession because with what's happening nationally - the credit crunch, people spending less money - projections of state revenues will go into the toilet,' said John Ellwood, a professor at the Goldman School of Public Policy at UC Berkeley."

 

"Frustrated by the longest budget impasse in California history, Democratic leaders are planning another ballot measure to end the two-thirds vote requirement in the Legislature to pass a state budget," reports Aurelio Rojas in the Bee.

 

Can we skip the food fight ads this time around?


"Voters, by a 2-to-1 margin, defeated a similar effort in 2004 that would have also lowered the vote threshold to raise taxes from two-thirds to 55 percent.

"But incoming Senate President Pro Tem Darrell Steinberg and Assembly Speaker Karen Bass say this year's budget – now 84 days late – underscores the need to re-visit the issue in 2010, or next year if there's a special election.

"California is one of only three states – Arkansas and Rhode Island are the others – that require a super-majority budget vote and the only state where the governor also has line-item veto authority."

 

George Skelton and Bill Lockyer commiserate about the budget deal. "Blame them all for another atrocious, short-sighted, gimmicky budget that set a record for procrastination. They wreaked havoc all across California among small business vendors, healthcare centers and nursing homes that couldn't be paid by the state until a budget was enacted.

"The spending plan 'gives gimmicks a bad name. I'd have to call it banana republic financing,' asserted state Treasurer Bill Lockyer, a former attorney general and legislative leader.

"Lockyer complained about 'phony inflated estimates of revenue.' But the Democrat was especially incensed about the 'fiscal folly' of providing "a massive corporate boondoggle" for big business with permanent tax breaks after three years.

"'I understand why Republicans would do that,' he told me. 'But I don't understand why Democrats would. Past tax cuts have contributed to the budget deficit. And they want to add more and have bigger deficits?. . . . If we have to pass tax cuts in order to enact a budget, there'll be no revenue left.'"

 

The Bee's Amy Chance talks to professional mediators who Monday-morning quarterback the job done by legislative leaders in negotiating the budget.

"As California's longest budget stalemate in state history ground to a close, six professional mediators met with The Bee's Capitol Bureau last week to offer their thoughts on building a more functional state budget process. 

 

"Their advice in a nutshell: Improve lawmakers' communication skills, train them and their aides in mediation techniques, set up a structured negotiation process long before budget deadlines approach, agree on common goals, build trust by reaching incremental agreements – and don't expect perfection."

 

You've gotta be kidding..  What about singing kumbaya?

 

Dan Walters looks at the failure of the prison health facilities bonds and the success of the funding for a new death row at San Quentin and concludes "If the prisons are a mess, they are more than matched by the politics of prisons."

 

The NYT's Jesse McKinley looks into the belief a surge of African-American and Latino voters turning out for Barack Obama could buoy support for Proposition 8, the ban on same-sex marriages.

"The Obama/Proposition 8 situation appeals to those opposed to same-sex marriage, who are banking on a high turnout by blacks and conservative Latinos. 'There’s no question African-American and Latino voters are among our strongest supporters,' said Frank Schubert, the co-campaign manager for Yes on 8, the leading group behind the measure. 'And to the extent that they are motivated to get to the polls, whether by this issue or by Barack Obama, it helps us.'

"To blunt that possibility, gay leaders and Proposition 8 opponents have been sponsoring casual events at restaurants in traditionally black neighborhoods in Los Angeles, meeting with black clergy members and recruiting gay black couples to serve as spokespeople on panels and at house parties and church events.

"'This is black people talking to black people,' said Ron Buckmire, the board president of the Barbara Jordan/Bayard Rustin Coalition, a gay rights group in Los Angeles. 'We’re saying, ‘Gay people are black and black people are gay. And if you are voting conservative on an antigay ballot measure, you are hurting the black community.’  ' ”

 

"Voters will decide on Nov. 4 whether to pay for the construction and remodeling of children's hospitals through a new state bond," writes Elizabeth Fernandes in the Chron.


"Proposition 3 would authorize $980 million in bonds, to be repaid from the state's general fund, to allow the hospitals to expand, improve facilities and purchase medical equipment.

"'This is the pediatric safety net,' said Diana Dooley, president and chief executive of the California Children's Hospital Association. 'These hospitals are investing in the care of children.'

"Prop. 3 is nearly identical to Prop. 61, a $750 million bond measure for children's hospitals approved by voters in 2004 by 58 percent of the vote.

"The hospitals say they need the additional funds because of soaring construction costs and a squeeze on Medi-Cal reimbursements, leaving them little money to apply toward infrastructure.

 

"Critics say the state can't afford the measure when it is already on precarious economic footing. Payments for Prop. 3 would amount to about $64 million a year for 30 years. The total cost to California would be about $2 billion over 30 years to cover both the $980 million principal and $933 million in interest, according to analysts."

 

"Berkeley's infamous tree-sitters have been hit with a rude surprise since they came down to earth: Judges are socking them with thousands of dollars in fines and legal fees," write Matier and Ross.

 

"Ironically, much of the money - which could total more than $10,000 per sitter - is going straight to the University of California, the very institution the tree-sitters were protesting as they tried to save a grove of trees outside Memorial Stadium.

"'It's really vindictive,' said an attorney for some the sitters, Dennis Cunningham. 'They don't have this kind of money.'

"Maybe, but university lawyer Michael Goldstein isn't making any apologies.

"'We've asked the judge to throw the book at them,' Goldstein said flatly."

 

Get it?  Books...Berkeley...teehee.  Ronald Reagan would have broken their kneecaps to get them out of the trees.

 

"UC Berkeley estimates it spent more than $800,000 on police and other security measures during the 22 months sitters were up in the trees. The university spent $40,000 alone on the scaffolding that went up around the final tree during the last day of the protest this month."

 

In more Let There Be Light news:  "For teenagers pondering college, parents who will foot the bill, professors, politicians and others with questions, the University of California released a blizzard of data today in a new accountability report posted online," reports James Sweeney in the U-T.

"Fulfilling a signature promise of new UC President Mark Yudof, the 209-page draft was compiled from largely existing information scattered throughout the 10-campus system.

"Collecting and organizing all the information in one location with comparisons to other universities has been a priority of Yudof's in the three months since he became the university's president.

"'An accountability framework is critical for transparency, it's critical for performance measurement . . . and it's important for the personal accountability of the leaders of the institution,' Yudof told UC regents last week. 'It's going to take us time to get it exactly right, but we're working full speed ahead on this priority.'" 

 

And since we're getting ready for a Jerry Brown comeback, the New York TImes checks in to see if Linda Ronstadt is still available as arm candy.

 

"To hear her talk about her girlhood memories — the smell of wool on the Navajo blanket she would lie on as she begged her parents to sing, her father on the guitar and her mother on the banjo — is almost to forget about Ms. Ronstadt’s other life. That’s the one with the platinums and Grammys, the much-publicized romances with George Lucas and Jerry Brown, the Annie Leibowitz photo of her flung across her bed in a harlot-red camisole that she now somewhat disdainfully calls the “sprawling picture.”

 

"For Ms. Ronstadt being a rock star was something of an out-of-body experience, despite being one of her generation’s sexiest brunettes. She compares the Troubadour in West Hollywood, Calif., during the mid-’60s through the mid-’70s to the Weimar Republic in Germany, “when no one had a dowry, thus rendering virginity unimportant.” She continues: “Were we supposed to be earth mothers hoeing the garden and having babies, or be tough and knock back Southern Comforts like Janis Joplin? It was a hard thing to figure out.”

 

And finally, the AP reports, "A man convicted of stealing $20 from a toddler's piggy bank has been sentenced to six years in prison.

 

"Prosecutors say 31-year-old Ryan Mueller broke into a home in August 2007 and stole money from a 2-year-old girl's piggy bank while she slept. They say the girl's mother walked into the room and caught Mueller in the act."

 

State budgeters were said to be intrigued by the story while looking for solutions to next year's budget.

 
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