The Roundup

Feb 6, 2009

Furlough Friday

It's Furlough Friday, which means we send a special shout out to our state employee subscribers who are reading The Roundup in their jammies.  Normally, we'd tell you to take care of things like visiting the DMV on your day off, but, that's not really an option . . .

 

"The [DMV's] 200 offices across California are closed, along with several other state agencies, as hundreds of thousands of state workers take their first day of unpaid leave to help the cash-starved government cut expenses," write Wyatt Buchanan and Steve Rubenstein for the Chron.

 

"Twice-monthly furloughs are the latest turn as the state's economic situation spirals out of control. Construction projects around California stopped last month, the state controller postponed tax refunds earlier this week and California will run out of cash in the next few weeks unless the Legislature and Gov. Arnold Schwarzenegger agree on a plan to fix the state's $42 billion deficit.

"DMV closures, along with the shutting of 28 state office buildings around California, are the most public manifestation yet of the state's financial woes. The furloughs, which affect up to 238,000 employees the first and third Fridays each month until June 2010, are expected to save the state $1.4 billion."

 

The AP's Judy Lin writes: "Labor leaders said the furloughs could have been prevented. Jim Zamora, spokesman for Service Employees International Union, Local 1000, said the administration did not respond to the union's latest contract proposal, which he said included alternatives.

 

"'More than a week ago, Local 1000 presented the governor's negotiators with a deal that would have prevented the closure of state offices, created an orderly, flexible and manageable furlough process, prevented chaos and saved the state hundreds of millions of dollars,' Zamora said in a statement."

 

"Despite Gov. Arnold Schwarzenegger's order for state workers to take today off without pay, one group will be showing up for work, just like always.

"Their bosses, seven officers elected in statewide elections and one independent board, say that the governor can't furlough them. Schwarzenegger says he can. A Sacramento Superior Court judge issued an order Thursday that amounts to a "no comment" on the matter.

"The furlough fight between the Republican governor and the mostly Democratic officials raises the stakes in what has become a constitutional game of chicken against the backdrop of California's budget crisis. It's probably not going to be resolved without more lawsuits, said one expert.

"Andrea Hoch, Schwarzenegger's legal affairs secretary, said that if Controller John Chiang doesn't implement the furlough order for his own employees and those of other constitutional officers, the administration will take him to court.

"'The Governor's Office and the Department of Personal Administration is prepared to file suit against him to compel him to obey the law and assist the state in averting a cash crisis that he himself has warned is mere days away,' Hoch said in a Thursday press statement.

"Chiang spokesman Jacob Roper said that the controller 'is going to continue to follow the court ruling – which did not apply to the statewide officers.'"

 

Meanwhile, don't expect a budget vote this weekend, although Shane Goldmacher reports "Senate President Darrell Steinberg said Thursday that both houses of the Legislature are planning a budget vote sometime next week, though the Democratic leader was careful to say no final agreement had been reached."

 

Dan Walters asks whether the plan up for a vote next week will fix the structural problem identified by the Legislative Analyst.

"The unspoken theme of these reports is that this immense fiscal crisis is also an opportunity to fix the outmoded, illogical, unworkable and often contradictory policy decrees that have contributed mightily to the problem, in order not only to ease the current deficit's impact but to forestall, or at least mitigate, what would otherwise be a string of such crises in the future.

"Taylor's telling us that we cannot evade reality, that we cannot continue to promise more in services than our revenue system can support, even in non-recessionary periods.

"One of the LAO's sister agencies, the California State Auditor, weighed in on the state's crisis itself this week, declaring the budget to be a "high-risk issue" and pointing out that over the past 20 years, 12 state budgets have had deficits, just eight had surpluses and, startlingly, the cumulative deficits of $146 billion were nearly five times as large as the $30 billion in surpluses.

"That factoid should prove, if there still is a doubt, that California's budget crisis is long-term and structural, not simply something that resulted from the current recession, although the downturn has certainly made it much worse."

 

"The confirmation hearings for Rep. Hilda Solis, D-El Monte, were abruptly halted Thursday, after new revelations about tax liens on her husband's business," reports Capitol Weekly.

"The jockeying to replace Solis, a former member of the California Assembly and Senate, has already reached a fever pitch. Among the top candidates in the race to replace her are Board of Equalization chairwoman Judy Chu, D-Monterey Park, and state Sen. Gil Cedillo, D-Los Angeles.

"The race between Chu and Cedillo has already gotten heated. Chu has lined up endorsements from the powerful Los Angeles County Federation of Labor and service employee unions. Cedillo is being backed by former state Sen. Richard Polanco, D-Los Angeles, and Sen. Gloria Romero, who represents much of Solis's 32nd Assembly District.

"Controversy over the appointment erupted just prior to a hearing of the Senate's Health Education Labor and Pensions Committee, which had been scheduled to consider her nomination. USA Today reported that the committee members did not learn about the tax issue until Thursday. The newspaper said that her husband yesterday paid about $6,400 to settle tax liens against his business -- including liens that had been outstanding for as long as 16 years."

 

The Chron's Nanette Asimov looks at the debate over K-12 categorical flexibility.

"The $14 billion that pays for dozens of cherished programs is not actually being cut, despite a $42 billion state budget gap that threatens school funding by about $10 billion.

"What has parents and teachers in such a sweat is that lawmakers negotiating the state budget are considering Gov. Arnold Schwarzenegger's proposal to free schools - for the first time in decades - from having to spend billions of dollars on specific state-required programs. There are more than 60 such programs, including art and music, bilingual teacher training, and vocational training in agriculture.

"Billed as financial flexibility, the governor's proposal would be a boon for school districts that want greater freedom to spend the earmarked money.

"'One-size-fits-all does not work,' said Brian Lewis, executive director of the California Association of School Business Officials.

"But to those who depend on such programs, flexibility is just another word for siphoning the money away."

 

"Gov. Arnold Schwarzenegger named Karen Douglas the new chair of the California Energy Commission on Thursday," reports Shane Goldmacher on Capitol Alert.

"Douglas, 34, has served on the commission since last year. Before that, she was the director of the California Climate Initiative at Environmental Defense. A Democrat, she'll earn $132,179. The position requires Senate confirmation.

"The energy commission, officially known as the State Energy Resources Conservation and Development Commission, is one of several energy policymaking bodies in the state. Douglas replaces Jackalyne Pfannenstiel as chair."

 

Meanwhile, things are looking pretty ugly for the University of California's retirement system.  "UC regents voted yesterday to start regular payments and, along with UC President Mark Yudof, served notice of a possible reduction in benefits for thousands of retirees.

"'I see no way around restructuring the benefits,' Yudof said at the end of a frank discussion that appeared to startle some regents, one of whom expressed concern about a coming pension 'train wreck.'

"'I don't know what we're legally allowed to do, but we'll find out,' Yudof continued. 'There are levers, like the vesting period, and employee contributions, and how you treat new employees.'

"'I have no set views on that, other than I feel the board and I have a fiduciary responsibility to put this on a path to fixing it.'

"Yudof said he would move ahead with a task force that also will examine the university's $13 billion retiree health care liability, an unfunded obligation that is growing by more than $1 billion a year.

"The abrupt turnabout in the pension fund's health could help build support for a union-sponsored initiative that would reconfigure the UC pension board to give employees representation.

"'We all want a healthy fund, but we want a seat at the table,' said Lakesha Harrison, president of the American Federation of State, County and Municipal Employees, which represents about 20,000 UC health and service workers."

 

In more Blue and Gold news, "A much-debated plan by the University of California to expand its freshman applicant pool and reduce the tests required for admission won final approval Thursday from the Board of Regents," reports Larry Gordon in the Times.

"The new rules, among other changes, mean that applicants will no longer be required to submit scores from two SAT subject exams but as before, must take the main SAT or ACT test, as well as 15 UC-approved college prep courses in high school and keep a minimum 3.0 grade-point average. The policy shift will take effect for current high school freshmen who seek UC admission for fall 2012.

"The changes are the latest in a series of controversial steps by UC over the last decade that backers say were needed to shift the university away from a purely mechanical admissions process that favored more affluent students from suburban schools with top-flight counseling, and whose families could afford test coaching. Many critics, however, have viewed the changes as a watering-down of standards and as attempts to get around the state ban on affirmative action in public university admissions."

 

"Faced with a funding shortfall stemming from the state budget crisis, San Jose State University plans to increase tuition next fall and cut graduate enrollment by 400 students and undergraduate enrollment by 3,000 students," reports Lisa Krieger in the Merc News.

"The campus will also urge "superseniors" — those with enough credits to graduate, but haven't — out the door.

"'Limiting the number of students is not easy,' President Jon Whitmore said at a campus forum Thursday, describing his plans. 'Working together, with thoughtful management, we will weather this storm.'"

 

And anyone looking for too much information about Jerry Brown, just turn to Facebook. Josh Richman reports Brown has filled out a questionaire that's making the rounds on the social networking sight, and it offers some insight into his past, and future. 

 

Among the factoids Brown reveals to his Facebook friends: "In 1958, I took vows of poverty, chastity, and obedience. Later, Pope John XXIII dispensed me from these obligations.

 

"I was a cheerleader at St. Ignatius High School.
 

"I knocked my opponent to the canvas in a 3 round boxing match at Senior Fight Night."

 

And then, there's this suggestive tidbit. "The first time I became Governor, I followed an Actor (Ronald Reagan)."

 

Finally, there has been a weird smell over New York City, and, yes, it's from New Jersey.

"City investigators have tracked down the source of a maple syrup smell that has puzzled New Yorkers several times in recent years . No offense, New Jersey, but it was you.

"The harmless but long-confounding smell, which has drifted through swaths of the city at least nine times since 2005, was traced to a facility across the Hudson River that processes seeds for use as artificial flavorings.

"Mayor Michael Bloomberg said that a team of odor investigators — environmental protection, health department and emergency management workers — "put our noses to the ground" to identify the culprit after another whiff in early January.

"The investigation involved mapping the time and place of all the odor complaints to the city's 311 hot line, data that were then compared with wind and atmospheric conditions. Those were checked against air sampling tests during the periods that New Yorkers reported smelling the odor."

 
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