State of California

Have Local Governments Lost Their Fight to Keep Redevelopment?

redevelopment-area-davis.pngLast week a key committee for the legislature came out backing the end of redevelopment.

On Thursday, a Senate-Assembly budget committee voted to send the spending plan to the floor of both houses in the legislature this week, and that includes the complete elimination of the state’s redevelopment program.

Senator Yee Fires Back At UC Regent Who Opposed Collective Bargaining For Public Employees

Leland-Yee-SenatorLast weekend, the Vanguard reported on David Crane’s editorial in the San Francisco Chronicle in which he argued that collective bargaining had no place for public employees, given the fact that they already have civil service safeguards as well as the ability to donate money and thus influence officeholders.

David Crane, a former advisor to Governor Arnold Schwarzenegger and current member of the UC Board of Regents, wrote, “In the private sector, collective bargaining is used to equalize the power of employees and employers.”

Commentary: A Chance to Break the Sacramento Logjam

california-budget-dLegal Opinion Suggests Majority Vote Sufficient For Tax Extension, But Democrats Do Not Want it –

The big news now is that the Sacramento Bee this morning is reporting that lawyers for the state legislature have confirmed with Republicans that Democrats can put taxes on the ballot with a majority vote, under very narrow circumstances.

The paper reports that the opinion, sought by the Senate’s Republican Leader Bob Dutton, does not specifically address the Governor’s proposal.

Commission Report Recommends Rolling Back Pensions For Current Workers

pension-reform-stockThe Little Hoover Commission, purportedly a bipartisan commission, issued the recommendation on Thursday that California’s state and local governments roll back pensions for existing employees and shift the pension burden to the workers.

Recognizing that an effort to reduce pensions for current workers would prompt legal challenges, the commission argued that public pension funds’ dire fiscal conditions necessitates themselves reducing benefits for current employees as well as merely reducing benefits for new hires. Creating a second tier is insufficient to address current fiscal problems.

Senator Wolk Seeks Compromise on Redevelopment

LoisWolkby Dan Oney –

While redevelopment agencies may be facing annihilation, Senator Lois Wolk (D-Davis) is taking steps to ensure that municipalities still retain some tools to continue their economic development mission. Senator Wolk has introduced legislation to give locals another financing option similar to redevelopment agencies.

Wolk’s legislation, Senate Bill 214, is a compromise between the entrenched camps of the Redevelopment debate. For proponents of eliminating redevelopment, claiming that they are wasteful and operate to the detriment of schools and other core services, it will protect source of revenues to these services from being usurped by redevelopment. For the proponents of redevelopment, SB 214 would allow Infrastructure Financing Districts (IFDs) to absorb many of the functions of the current redevelopment agencies.

Deep Cuts to Education, UC Await

california-budget-deficit.jpgLAO Letter Lays Out The Face Of An All-Cuts Budget –

The Legislative Analyst Office released a report on the possible list of cuts needed to close the state’s multi-billion dollar budget deficit, should the state not extend taxes as Governor Jerry Brown proposed.

Republicans are already calling it a ploy to convince legislators to place the tax measure on the ballot, that would cut the needed budget cuts in half.

 

California’s Prisoner Dilemma

prison-reformThe problem of soaring prison costs is nothing new in California government, even as the state faces largely unprecedented problems with its budget.

The recent polling by the Public Policy Institute of California (PPIC) shows that 70% of the voters singled out prisons as a major area where the budget should be cut.  This exists, in fact, across party lines and geography.

Governor Brown Delivers State of the State But Prospects for His Plan Remain Uncertain At Best

Brown-presserGovernor Jerry Brown delivered the first State of the State Address of his new tenure as California’s Governor, and he called on both Democrats and Republicans to do things that they do not want to do.

“This is not a time for politics as usual,” he said in a line that is usually reserved more for rhetoric than substance.  However, this time it is different.

Voters Support Putting the Tax Issue on the Ballot

Brown-presserPolling Shows Some Support for Higher Taxes, Will Voters Get the Chance to Vote on It?

The conventional wisdom rising out of the first month of Governor Jerry Brown’s tenure is that he does not have the votes to get his tax measure on the ballot and that if he does, the majority would oppose extending taxes another five years to help alleviate the state’s fiscal problems.

However, earlier this week, the Public Policy Institute of California (PPIC) released their findings showing that a strong majority say that a special election on Governor Jerry Brown’s tax and fee proposal is a good idea, and a majority are generally satisfied with his budget plan.

Will Governor Brown Lead the Way on Pension Reform?

Brown-presserIn July, candidate Jerry Brown laid out a series of common sense proposals to deal with pension reform on the state level.  While we have generally focused on pension reform at the local level, clearly, state-level changes could be made to help communities trapped into past promises of unsustainable wages.

However, as critics are quick to charge, Governor Brown’s budget proposal has promised cuts to about every sector except one, pension reform. Orange County Columnist Steven Greenhut, a leading proponent of pension reform, accused Jerry Brown of dodging the issue.

Redevelopment Proposal Triggers Potentially Long and Contentious Fight

redevelopment.jpgThis morning’s Sacramento Bee points out that those who own the land and buildings in downtown Sacramento pay an estimated 31 million dollars in property taxes every year.  Contrary to popular belief, most of that money does not go to fund schools or the local government.

Rather, 26 of the 31 million dollars goes directly to the city’s redevelopment agency (RDA) which ostensibly uses money to  “subsidize development projects, build affordable housing, fix up rundown buildings and beautify streets.”

Mixed Reviews for Governor’s Budget Proposal

Brown-presserOne thing Jerry Brown cannot be accused of doing is playing things safe.  His plan is bold, it spreads pain, and it has the potential to  both please and irritate everyone at the same time.

Time will tell whether he will be successful in convincing a few Republicans to allow the tax plan to go before the voters, where he will get to make his case.  Many will quibble at the margins, but frankly I cannot think of a bolder first week in any recent administration.

Proposed Constitutional Amendment Would Bolster Brown Act

Yee-Palin_PC-1In recent years the Brown Act, which protects the fundament right for the public to be noticed of meetings by public officials and governmental bodies, has been suspended or threatened during the state’s current budget crisis.

Under state law, local governments are reimbursed the cost of fulfilling statutory requirements enacted by the Legislature – so when the state’s budget fails to allow that reimbursement, local governments have argued that they are no longer required to fully notice meetings.

Is Gov. Brown’s Budget Plan DOA?

Brown-presserGovernor Jerry Brown unveiled his budget plan Monday, but critics have already scoffed that it looks remarkably like that of former Governor Arnold Schwarzenegger, and GOP leaders have already said that the tax plan will get none of their votes.

In a statement, Governor Brown said that his proposed budget will be comprised half of budget cuts and half tax increases in order to attack a deficit that is estimated at $25.4 billion.

Kamala Harris Sworn in as New Attorney General

AG_Debate-4.jpgWhile much of the focus on Monday remained at the top with the swearing in of new Governor Jerry Brown, one of the biggest offices will undoubtedly be the California Office of the Attorney General where San Francisco District Attorney Kamala Harris was sworn in, “vowing to ensure that state law is on the side of the people.”

What that means will be the question of the next four years, but Ms. Harris represents the last best hope for real reform in the criminal justice in California – a system bogged down with an expensive and over-capacity prison system, recidivism and ridiculous sentences for minor crimes.

Commentary: Why Governor Schwarzenegger Failed

Brown-at-Bistro-33In an Op-ed in the LA Times yesterday, Joe Mathews asked if the failures of Arnold Schwarzenegger will save the state.  He argued, “Nothing worked for Schwarzenegger because the system itself doesn’t work.”

He went on to argue, “On fiscal and budgetary matters, Schwarzenegger suffered defeat after defeat. The state’s fiscal record after his seven years — California has the same budget deficit now as in 2003, with a much larger debt — has led commentators across the political spectrum to write him off as a failed governor. That conclusion has a factual basis — and is deeply wrong. And it obscures the most interesting and important lesson of his governorship. Put simply: The sheer number and surpassing scale of Schwarzenegger’s failures to fix the state budget constitute a grand and peculiar success, especially if Californians heed the lessons they provide.”

Commentary: Attorney General-Elect Kamala Harris Has a Chance to Make Huge Changes to State

AG_Debate-4The first time I saw Kamala Harris was in San Jose back in 2008 at the California Democratic Convention.  It was during the heat of the primary battle, and both of the top Democrat contenders sent representatives to speak on their behalf. 

Hillary Clinton sent Former President Bill Clinton.  Barack Obama sent a little known District Attorney from San Francisco, Kamala Harris.  She lightened the mood by poking fun of the disparity, pitting herself as the David to Bill Clinton’s Galliath.

Comcast Latest to Take Their Money and Run

prop-24Last week we reported that Genentech, one of the chief backers of Prop 24’s efforts to prevent the closing of tax loopholes opened up in the 2008 and 2009 budget deals, had pumped 1.6 million dollars into the efforts to defeat Prop 24, only to turn around and eliminate over 800 California jobs.

Now Dan Morain, Senior editor of the Sacramento Bee, is reporting that Comcast is the latest to play “take our tax breaks and run.”

Polling Shows California Looks Bleak For Republicans

Governors-Debate-UCDThe caveat, of course, is that things change in politics very quickly.  In 1994, California was not a blue state.  Pete Wilson had just been re-elected Governor by a wide margin, despite having extremely low opinion ratings.  Dianne Feinstein needed everything she had to hold off what was then a record spending by Michael Huffington.

The Republicans for the first time won the Assembly, although Willie Brown would nullify that advantage.  They won all but two of the partisan constitutional offices.  And they rode the coattails of Three Strikes and Prop 187 to victory.

Genentech’s Actions Show The Downside of High Tech Companies as Well As State Lawmakers’ Concessions

prop-24Davis has often lamented the fact that Dixon, rather than Davis, got Genetech’s expansion.  In 2008, Genentech, a company based in South Francisco, decided to put a 140,000 square foot research facility in close proximity to UC Davis.  But instead of building it in Davis, they built it in Dixon.

At the time, the facility was expected to house 120 employees starting in 2010 and expand to 160 employees in 2016.  This was before the collapse of the economy in September 2008, and the plans have since been dropped (perhaps demonstrating the problematic nature of any investment by a large company).