State of California

BUDGET DEAL: Devastating Cuts for Education, the Poor, Health Care, and Local Governments

statecat.pngThis is going to sound a lot like what I said back in February, but it is so much worse in part because these cuts are top of what was cut back in February.  The budget is an all-cuts budget that cuts over 26 billion dollars from the budget.  There are no revenue enhancements here, only cuts.

Taking the brunt of the blow once again is education which has now had over 17 billion dollars in cuts in the last two budget deals.  That represents nearly one-third of the funding for education which is also the single largest line item on the budget.

Budget Deal May Hinge on More Cuts to Education

statecat.pngSuspension of Prop 98 May Be Last Sticking Point –

Early yesterday the word came down that a budget agreement in Sacramento was imminent.  If true, that would have meant that the legislature’s leaders from both sides of the aisle would have reached tentative agreement with the Governor on a plan to cut an additional 26 billion dollars from the budget.  Bearing the brunt of these cuts have been the poor, the disabled, state workers, and of course education.

Late last night it was announced that talks had stalled and word leaked out that the point of difference was what to do about education, specifically Proposition 98.  Education has already suffered cuts of well over $10 billion and that number could increase even more if the legislature agrees with the Governor to suspend it.

California is Out of Cash and Out of Time

statecat.png

Debunking the Myths of California’s Budget Crisis –

State offices throughout the state were closed yesterday as the state endured another furlough Friday.  The July 1 deadline came and went last week with no agreement between the Governor and the legislature.  The Governor could have saved the state and taxpayers nearly three billion dollars had he simply accepted a partial solution last week.  But instead he held out for the entire 23 billion dollars in spending cuts and when that did not materialize, he vetoed the legislature’s effort and so now instead of having a 23 billion dollar deficit we have a 26 billion dollar deficit.

Ten days have passed since that point, the state is out of cash, had the Governor simply taken the partial solution, at least we would be solvent at this point and would have enough cash to pay our bills.  Instead people are not being paid with IOUs.  The average person probably has not felt this yet, but that will be coming.  The Governor is now talking about a fourth furlough day or another 5% paycut for state employees (which is functionally the same thing) and state employees are talking strike.

AB 155 Prevents Cities From Filing For Bankruptcy Protection

statecat.pngBy Justin Smith –

The California Assembly recently approved AB 155 (Mendoza), a bill that prohibits cities and counties from filing bankruptcy without state approval and is headed to the Senate. The bill requires local governments and counties to get approval from the California Debt and Investment Advisory Commission (CDIAC) before filing for bankruptcy.

The California Debt and Investment Advisory Commission consists of the State Treasurer, the Governor or the Director of Finance, the State Controller, two local government finance officials, two Assembly Members, and two Senators.

 

BREAKING NEWS: California Supreme Court Upholds Prop 8 Ban on Same Sex Marriage

leno_lgbt2

The California Supreme Court by a 6 to 1 vote today, with the only dissenting Justice, Carlos Moreno, also the only Democrat on the court, upheld the ban on Same Sex Marriage that was passed by the voters last November in Proposition 8.

Justice Moreno in his dissent argues that enforcing equal protection requires protection for all aspects of the law.

Analysis: Results of Election Should Not Be Interpreted As A Tax Revolt

statecat.pngMany on the right have argued the results of this election should be interpreted as an extension of the Tea Parties that emerged in April and a revival of the tax revolt from the 1970s.  The problem with that interpretation is that many of the people who voted against the ballot propositions were actually political liberals who had a very different reason for voting against it.

An additional problem with this interpretation is that of the propositions, only Proposition 1A impacted taxes and even that only two years down the road and only to continue already implemented tax increases for an additional two years.

Commentary: For California It’s May 20th and the Sky is Falling

statecat.pngIn most ways, what happened at the polls yesterday (or perhaps what did not happen as most people did not vote) is only symbolic in terms of the bigger scheme.  The voters were asked in a way to codify an imperfect and in the end insufficient budget deal from February to balance the budget shifting, borrowing, repaying, and eventually capping future spending.

The voters rejected such overtures and probably Assembly Majority Leader Albert Torrico hit the nail on the head when he said last night:

Vanguard Recommendation: Vote No on All Budget Initiatives

prop_1a_impact

I have gone back and forth on the ballot initiatives as to whether or not to support them.  A few weeks ago I reached what I thought was my final decision, I would simply hold my nose and vote for them.  At that time, we were projected to have about a 14 or 15 billion dollar deficit if the propositions failed.  That would be reduced to a more manageable but still serious eight billion.  I did not like what the propositions did, but if they failed other things that were important would have to be cut, including more from education.  So I was going to hold my nose and vote for them.

It is ironic that in the last week, the very measures that Governor Schwarzenegger has trotted out to “scare” voters into for the measures, are the very reason I am now going to vote against all of the propositions.  The deficit is too large and passing the propositions makes too little impact on the budget deficit to warrant holding my nose.  I will briefly get into each one of them individually, but many of them rely on simply shifting and borrowing monies.  That’s not much of a solution to the longer term problem.

Bad to Worse: Governor Projects Deficit at 21 Billion Week Before Special Election

statecatCritics are crying foul with the timing of Gov Arnold Schwarzenegger’s announcement that the state will face a deficit of 21 billion dollars should the state not pass the ballot initiatives next Tuesday.  But at this point it almost does not matter.  If they do pass it, the deficit will be a mere 15 billion dollars, hardly cause for celebration.

At this point, six billion is helpful if Propositions 1C, 1D, and 1E pass.  That state would gain six billion dollars against the total total deficit by virtue of shuffling monies around.

What Happens on May 20 After the Ballot Measures Fail

There is an election one week from Tuesday and the electorate is angry.  And the electorate has every right to be angry. 

According to a recently released survey from the Public Policy Institute of California (PPIC), Californians are extremely pessimistic about the California economy, give the governor and legislature approval ratings that hover near record lows, and show less trust in state government than they have ever before. The PPIC survey found that a mere 16 percent of likely voters say they can trust the government in Sacramento to do what is right.   And they think the nation as a whole is in better shape than California.

Local Schools Poised To Take Huge Hit if the Propositions Do Not Pass

As we discussed at the end of March, Proposition 1B ensures that schools receive $9.3 billion over time, so that the money cut during the current budget crisis is not permanent.  The payments to schools will come out of the newly created rainy day fund, but not until 2011-2012 when the state’s fiscal outlook is expected to improve.  However, in order for that to occur, there must actually be a rainy day fund.  This means that Prop 1B is contingent upon Prop 1A passing.  If both Prop 1A and Prop 1B pass, it would guarantee $8 billion in school payments.

As it turns out that is just the tip of the iceberg for education.  To see that we need to do a little math.  In March, it was announced that the state was already $8 billion in the hole despite the budget agreement from February 20, 2009.  Frankly, it may be worse than that by now, but let us assume that is the case.  The ballot propositions provide for a variety of shifting and borrowing on monies.  If they do not pass, the state will have to find another $7 billion.  So the total impact will be roughly $15 billion that the state has to find.

Vanguard Radio will Host Senator Mark Leno on April 29

mark_lenoVanguard Radio will host California Senator Mark Leno on its radio show April 29, 2009 from 6 to 7 pm on KDRT 95.7 FM. Senator Leno will be discussing his pending universal health care legislation, The California Universal Health Care Act of 2009 (SB 810).

The California Universal Health Care Act of 2009 would guarantee comprehensive health care benefits to every California resident and streamline claims and reimbursements, which will save billions of dollars in health care administrative costs.

 

Brief Conversation with Assemblymember Mariko Yamada

yamada_dc09_1The Vanguard caught up with first term Assemblywoman Mariko Yamada at the California Democratic Convention in Sacramento yesterday.  Yamada serves the 8th Assembly District representing Davis and much of Yolo County and the Northern and Eastern Portions of Solano County. 

Yamada was asked whether it was different being at the convention now as an Assemblymember.

“It is and it isn’t.  It’s different of course because I have a different role.  But it’s the same because I’m sitting here with all the delegation and I find that to be the proper place to be.”

Governor Candidate Gavin Newsom Address Truman Club in Sacramento

newsom_1

On Friday afternoon, the Truman Club had a Luncheon in Sacramento that was supposed to feature the four major Democratic candidates for Governor.  But a strange thing happened along the way.  First, Los Angeles Mayor Antonio Villaraigosa did not come.  Second, Lt. Governor John Garamendi announced earlier this week that instead of running for Governor where he was trailing badly in the polls, he would run in the special election in the 10th Congressional District, where Ellen Tauscher had been appointed by President Obama as the undersecretary for arms control and international security. She has not yet faced confirmation hearings in the Senate.

That left two likely candidates for Governor, the announced candidate, San Francisco Mayor Gavin Newsom and the presumptive front runner former Governor and current Attorney General Jerry Brown.  However, around twenty minutes prior to the event, it was announced that Jerry Brown was a no-show and Yolo County Democratic Central Committee Chair Bob Schelen spoke briefly in his stead.

Vanguard Radio on April 15 Discusses Health Care in California

Write in to ask questions of Jessica Rothhaar from Health Access –

Universal health care has long been on the agenda, but for nearly 20 years, politicians from state legislators up to the President of the United States have discussed health care reform, but have not been able to implement it.

At present, there are competing health care bills working their way through the California Legislature.  In addition, President Obama is working hard to find a way to pass national health care reform.

Open Government Concept Appears Lacking at Office of Court Construction and Management

Senior Manager of Planning Directs Another Employee to Ignore Request for Information –

The Woodland Record is an alternative on-line newspaper in Woodland and in many ways is the Vanguard’s counterpart up in Woodland, looking into many of the same sorts of issues involving local government.  They have been looking into the Yolo County’s property bordered by Court, Third, North, and Fourth Streets in Woodland.

Proposition 1B Would Restore Educational Funding

The Vanguard is breaking down the ballot initiatives for the May 19, 2009 special election.  We began last week by looking at Proposition 1A.  Today we look at Proposition 1B.

Proposition 1B ensures that schools receive $9.3 billion over time, so that the money cut during the current budget crisis is not permanent.  The payments to schools will come out of the newly created rainy day fund, but not until 2011-2012 when the state’s fiscal outlook is expected to improve.

Allies Line Up On Both Sides of Proposition 1A

Part of the budget deal that was reach back in February put a number of propositions on the ballot.  Propositions 1A, 1B, 1C, 1D, and 1E were specifically related to the budget itself and their passage in part will determine whether that particular budget was balanced or not.  Of course, since that time, the state has announced that regardless of whether these items are passed in May, there is an $8 billion budget deficit.  Despite this groups are lining up on both sides of many of these ballot initiatives.  Many argue that they are “hastily written in secret with no public hearings or analysis.”  The consequences of passage of them would outweigh the benefit of a balanced budget.

California Supreme Court To Hear Oral Arguments to Invalidate Proposition 8

Today in San Francisco, the California Supreme Court will hear oral arguments from the National Center for Lesbian Rights (NCLR), ACLU, and Lambada legal challenging the November 5 passage of Proposition 8 which sought to overturn the Supreme Court ruling from last year granting rights to same sex partners.

On Vanguard Radio last night, the Vanguard spoke to Elizabeth Gill Staff Attorney from the ACLU in San Francisco and Natalie Wormeli from the Yolo County ACLU. They informed the Vanguard that the central argument that will be made comes down to the fact that the California Constitution does not permit the fundamental constitutional rights of a minority to be stripped away by a simple majority vote.