All posts by David Dayen

No Health Care Vote Today

Apparently Sen. Perata needs some more time to rearrange the chairs on the Senate Health Committee.

Sheila Kuehl, Chair of the California Senate Health Committee that is holding a hearing on AB X1 1, the Nunez-Schwarzenegger health coverage bill, has just announced that a vote on the bill by the committee will not take place until Monday. She announced that the delay in the vote on the bill was requested by Senate President pro Tem Don Perata, who is a coauthor of the bill […]

The building is rife with rumors as to Senators being asked to step down from the committee or asking to be taken off of it, and other procedural moves to get the bill out of the committee. With vote postponed, that gives additional time to possibly amend the bill, change the committee membership, and for those on one side or the other of the issue to bombard their Senators with calls, emails, and visits. The outcome is unknown as well as whether Perata will take extraordinary measures to move the bill.

With the LAO report today giving little cover to those pushing the reform (if the average premium is $300 per person, as the LAO expects, the program is underfunded in the first year), and both Kuehl, Yee, and possibly Gloria McLeod wavering, obviously some serious efforts are being made to turn this ship around.  The SF Chronicle had a very good article about this today.

Stay tuned.  It should be a wild weekend in the Capitol.

Sen. Yee Throws Health Care Reform Into Total Chaos

The massive health care reform plan brokered by Governor Schwarzenegger and Speaker Nuñez has been fraying at the edges a bit in recent weeks.  State hospitals appeared to waver on supporting the fees that would be charged to them under the plan, and hearings in the Senate Health Committee were delayed a week pending an analysis from the Legislative Analyst.  That hearing is currently scheduled for Thursday tomorrow, but State Senator Leland Yee just put a major wrench into that plan.

On the eve of a hearing for landmark health legislation, a spokesman for Sen. Leland Yee said the San Francisco Democrat will oppose the health care measure. The move throws into limbo whether the legislation has the necessary votes to move forward.

“The costs are a big concern for him,” said Adam Keigwin, a spokesman for Yee, regarding the $14 billion health care price tag that coincides with a projected $14.5 billion budget hole […]

Keigwin said Yee conferred with labor leaders in his district over the weekend who were “almost unanimous” in urging Yee “to vote no.”

With Health Committee chair Sheila Kuehl already opposed to the bill, this means that it would be unable to get out of committee without a Republican crossover vote.  And even with moderate (for the GOP) Abel Maldonado on the committee, that is unlikely.

I don’t think this is the end of the bill by a longshot.  Yee or Maldonado could have their arm twisted, or Kuehl could let the bill pass without a recommendation.

What happens next is unclear, though options certainly remain for passage.

For instance, Senate President Pro Tem Don Perata could ask Kuehl to grant the measure a courtesy vote, allowing it to proceed to the Senate floor despite her personal opposition.

In an interview Tuesday morning, Kuehl reiterated her position, saying, “I’ve been very clear with all the advocates and everybody that I do not favor the bill.”

She said she had not been contacted by Perata or his staff to support the bill. Asked if she would consider granting a courtesy vote if she was, she replied that she “can’t answer that.”

“In the Senate, we generally are equal as members,” Kuehl added.

Don Perata could also kick Yee off the committee and replace him, although he hasn’t exactly been wildly supportive of the bill thus far.

What will happen is anyone’s guess.  But for the moment, this is a major blow to efforts to overhaul health care in California.

UPDATE: Frank Russo has more:

There are rumors that the report of the nonpartisan Legislative Analyst’s Office, to be released soon-tonight or tomorrow morning-will not be all that favorable. That report had been sought by Senator Perata in December to further vet and test the assumptions made so that voters would not be faced with a ballot measure with shaky financial underpinnings in a year of a massive budget deficit, cuts in other programs including health, and uncertainties.

Making it even less likely that Perata will act.  But the pressure on him must be intense.

The Invisible Governor

The Governor has continued to assert, and the people largely believe him, that he is somehow removed from the financial troubles that face the state.  And he got an assist from an unlikely source today – former Governor Gray Davis.

So why is California suddenly faced with a $14-billion budget shortfall? Is it because the governor (or the Legislature) did something terribly wrong?

No, the governor of a nation-size state like California can affect the economy, but only on its margins. The reason this deficit is looming is because no one can repeal the business cycle. Just as night follows day, expansionary times will be followed by recessionary times. And yet the overwhelming impulse in Sacramento is to spend every dollar on the table. If a booming economy has the state coffers flush, Democrats say: “There will never be a better time to expand programs than right now.” Republicans counter: “We have too much money. Let’s reduce taxes.” […]

Believe me, Gov. Arnold Schwarzenegger doesn’t want to close 48 parks, reduce education funding or release prisoners. Like all governors, however, he is required to bring expenditures in line with revenues. I don’t agree with all of his suggested cuts, nor do I endorse all of the critical responses from the Legislature.

There is a significant reform suggested by the governor, however, that I fully endorse. It is a constitutional amendment that would require putting aside a portion of surging revenues in good times as a buffer against painful cuts in bad times. I called for such a “rainy day” fund while in office — and recently former Gov. Pete Wilson also spoke in favor of this idea.

Gray Davis is showing the political acumen that made him the most reviled governor in recent California history.  He’s also being massively dishonest.  Schwarzenegger repealing the Vehicle License Fee’s return to 1998 levels had an undeniable impact.  Furthermore, so did his borrowing through bonds, which costs the state billions of dollars per year.

Are Arnold and the California GOP to blame for this? Who else? Nobody put a gun to their heads and forced them to respond to our last crisis with nothing but a toxic combination of demagoguery and tax-cut jihadism. They did it all on their own. I understand the desire to roll up our sleeves and stop sniping about the past, but let’s not actively rewrite history to pretend that our latest crisis “just happened.” It didn’t. Arnold and his party, despite plenty of warnings from nonpartisan budget analysts about what they were doing, deliberately bequeathed it to us.

And, contrary to Schwarzenegger’s belief, he has a great deal of control over state spending, including a line-item veto.  Trying to fault the legislature for “runaway spending” when he has to sign the document is just completely absurd.  The legislature didn’t go on a “spending spree” on its own, nor did they use revenue only for the purpose of spending; there were billions in tax cuts thrown in as well.

The Governor, and his predecessor, are writing a history of government in California that doesn’t have an executive branch.  This is a falsehood that can only be met with laughter.

Executive Privilege Is The New Black

The EPA has decided that you plebes don’t need to know about what they do.

Late on Friday, the EPA delivered a box of hard-copy documents about the California waiver denial from to Senator Barbara Boxer, theoretically meeting her past-deadline demand for disclosure in advance of Thursday’s Senate hearing. The catch, as per the Associated Press— many documents were either missing or contained numerous redactions. In a letter from Deputy Administrator Christopher Bliley, EPA invoked executive privilege regarding executive deliberations and attorney-client communications, claiming above all that a failure to restrict public release of the documents would have a “chilling effect” on agency decisions […]

Boxer had threatened to subpoena the agency if it did not turn over the waiver documents. She said she would continue her quest for all the information. Boxer aides said the agency’s offer to show her the redacted information privately was not satisfactory.

Apparently 16 pages of a 43-page Power Point presentation were completely blank except for the titles – one of which said “EPA likely to lose suit.”

Sen. Boxer is extremely angry about this dodging of federal oversight, calling it “an insult to the American people and a dereliction of duty.”  There’s a hearing about the EPA waiver denial in the Senate Environment Committee scheduled for Thursday, and the Chief Administrator Stephen Johnson will be there.  Insofar as Senate committee hearings are must-see TV, this will be one of them.

Like A Costume Party With Politics

Here’s a quickie.  That was the craziest scene I’ve ever witnessed.  We went to the caucus at the Wynn.  Imagine maids, chefs, cocktail waitresses, cool kids from the club, etc., all in a room doing politics.  Nuts.

Clinton 189, Obama 187 in our caucus.  Obama did not get a bump from the casinos on the Strip.  A LOT more later.  I could write a book.

For the record, there are a lot of allegations flying around about voter intimidation and voter suppression and all of that, on the Clinton AND on the Obama side (the Edwards folks are saying they just didn’t have the people and didn’t have the money).  To be clear, I saw none of that at the Wynn, though of course, there was so much media there nobody would have been able to get away with it.

I’ll give a full report probably tomorrow.

P.S. The Nevada State Democratic Party is reporting that turnout is above 114,000 caucus attendees, with 88% of precincts reporting.  That is a ridiculously high number.  Something like 9,000 people voted in 2004.  Another good day for Democrats.

P.S.S. The Obama campaign is claiming that they’re going to end up with 13 delegates to Clinton’s 12, because he outperformed Clinton in rural areas of the state.  Indeed, in everything but Clark and Washoe Counties (Vegas and Reno), Obama won 55-45%.  I have no idea if this is true, but considering the delegate count is what actually MATTERS, you’d think that this would be reported.

P.S.S.S. OK, I just spoke with Jill Derby, the head of the Nevada State Democratic Party.  Regarding the Obama claim that he’ll actually get more delegates out of this, essentially that’s spin.  Derby said that the caucuses are an “expression of the support of Nevadans today.”  Around 11,000 delegates were elected today.  That will be winnowed down at county conventions and eventually at the state convention in May to the 25 that will go to Denver for the DNC.  In 2004, Kerry didn’t win every delegate on Election Day, but most of the delegates that eventually went to the DNC were his.  Once there’s a presumptive nominee, the delegate numbers are subject to change.  It’s non-binding.

If that makes your head spin, the short version is that this was a beauty contest, and you can’t project delegate numbers at this time.

On the question of charges of voter suppression and intimidation, which the Obama campaign is officially alleging, Derby said this (paraphrase):

“We had strict standards in place for what went on in the caucus room.  Outside of the room is not necessarily our purview.  We did get a few calls over the course of the day, and we did eject some people from the caucus room for engaging in tactics that were not within the rules.”

I asked her if she was going to initiate an investigation, and she demurred.  She basically said that if Nevadans feel they have had their voting rights infringed upon, they should take it up with the “proper avenues,” which specifically she said was the courts.  She also basically said that there was a lot of passion on both sides, and these kind of charges get thrown around in those circumstances.

Trying to be hands-off here, just the facts, ma’am.  I can tell you one thing – this will not go away, and it could end up being a very big part of the conversation heading into South Carolina.

Wherein David Axelrod Blows A Gasket

I’ll be brief because I’m blogging this from my iPod.  Barack Obama finished a good-sized rally where he kind of lost the crowd in the middle but ended well.  It was pretty much the same stump speech we’ve heard; I’ll elaborate later.  But as we were leaving, we spied Obama campaign manager David Axelrod and asked him about Bill Clinton’s very odd comment that he personally saw Culinary Union bosses threatening to stop workers from voting for Hillary.  

Axelrod lost it.  He said, “I don’t believe it, and if Bill Clinton actually saw that, he can take it to the NLRB.  This is the rankest form of voter intimidation I’ve ever seen.”  And with that, he stormed off.

It felt like being on Hardball for a second.

(for my money, if Clinton does claim he saw a union supervisor threatening to violate voter rights, then he should take it to the NLRB.)

The Big Dog In North Las Vegas

So we’re in the Obama press area awaiting his arrival (in about an hour, I’m told), and I had some time to write, and elaborate on what I told our Northern Nevadaticians over the phone.  

We just got back from a Bill Clinton event in North Las Vegas at a local YMCA.  There were about 150-200 people there, which seemed small to me.  Bill came out and said he mostly wanted to take questions, and then proceeded to talk for about 45 minutes (hah!).  It was a solid speech, completely extemporaneous, talking about the challenges we must face in the next four years and how his wife is best able to face them.  But there was one glaringly strange moment.  

over…

Specifically he honed in on subprime mortgages and the trouble with Big Shitpile (“people who have never missed a mortgage payment will lose their homes” because the banks will need to refinance to recoup their losses from bad investments), America’s stature in the world, and building a clean energy future (“Nevada is perfect for this – the wind blows and the sun shines, and we can capture all of that”).  He highlighted Hillary Clinton’s “consistent record in public life of making positive changes,” including school reform in Arkansas, improving foster care and increasing adoptions as first lady, and the creation of SCHIP (“You need to know how the President responds to failure – with Hillary, it was SCHIP.”)  It was a substantive, reasoned, and worthy case for his candidate.  Here’s a paraphrase from my notes:

Obama says we need to turn over a whole new leaf, we must begin again.  He has explicitly argued that prior service is a disability in picking the next President.  Hillary wants to put the country in the solutions business.  We must come together by doing.  The purposes of politics is to live your hopes and dreams by making changes in people’s lives.  Vision and inspiration is important, but so is perspiration and delivery.  The ultimate test of our service is who’s delivered for the American people.

Which is an excellent case to make.  He also said that he claimed he was in his hotel in Vegas last night, and a bunch of members of the Culinary Worker’s union came up to him and said that they weren’t going to listen to their union and they would caucus for Hillary.  Which is fine.  Then, he claimed, a shift supervisor or someone in a position of authority came up and said, “If you do that I’m going to change your schedule so you can’t be there to caucus tomorrow.”  It’s a pretty amazing allegation (a union boss is going to threaten and intimidate the voting rights of workers in front of a former President?), and Todd from MyDD and myself have some calls in to Hillary’s press people to get some clarification.  There’s no way to really independently verify it, but it strains credibility to believe that it went down the way President Clinton said.  And he said it TWICE, so it wasn’t a slip of the tongue.

I do want to highlight this other moment.  Among the mostly substantive questions that he eventually took from the audience, Clinton was asked where his favorite places were to travel.  He took this softball, began a meandering audio travelogue of all these different places he’s been, rambling like an old uncle telling a story with seemingly no end, and then he told this amazing story about this woman in Rwanda who met the man who killed her son and how she forgave him, and he wrapped it up by saying we can all learn some lessons from every place we visit, and he went back over every place he named and gave some vital lesson that came out of it.  It was like watching Michael Jordan do some behind-the-back, double-reverse, doesn’t-even-know-where-the-basket-is, eyes-closed and it goes in anyway bank shot.  It was almost poetic.  That’s Clinton’s real gift, to weave what he called “the story of America” and bring these arcane policy issues into some kind of immediacy for people, making it real to their lives.

Nevadatics: On The Ground In Vegas

We just arrived on the Strip about 20 minutes ago.  We’ll be at campaign events for Obama and Clinton tonight, and out at the caucus sites tomorrow (Mittens Romney will be out at a caucus site at 7:30am, so that could be fun).

I find it instructive to watch the local news reports on caucus eve.  Despite what you’d think, there’s been about 3 minutes of coverage of the caucuses in the last half-hour.  They’ve actually devoted more to the local women’s roller derby team than the caucuses. (ah, local news).  One station had an end-of-the-newscast story where the reporter showed a bunch of pictures of the candidates to people on the street and asked them to name them.  It wasn’t pretty.

When people say they don’t know who’ll show up to these caucuses, I believe it.  It doesn’t seem as central to the local scene as, say, the Danny Gans show.

One thing I did notice on the news: Nevada’s unemployment rate is up to 5.8%, the highest rate since April of 2002.  I’ve heard that it’s been a bad winter in Las Vegas, which may impact the desire of people to caucus if it means missing their shift at the casinos.  (By the way, the casinos made $25 billion last year, so they’re not exactly hurting; but the employees aren’t doing all that well.)

Obama and Clinton both have ads up; Clinton’s has this old NFL Films music on it, and it’s a little surprising that they went el cheapo on the score).

More later…

Calitics Becomes Nevadatics!

Two groups of Caliticians will be hitting Nevada for the weekend to cover the caucuses on Saturday afternoon.  I will be with Todd Beeton of MyDD in Las Vegas; and Brian, Juls and I believe Lucas will be in the Reno area.  In Vegas, we’ll be hitting the “closing argument” events from Barack Obama and Hillary Clinton on Friday night (John Edwards actually has a morning event in Vegas that we’ll probably miss, and then he leaves Nevada for Oklahoma and Missouri), and we’ll make an appearance at one of the at-large precinct caucuses on the Strip on Saturday.  I’ll let the NorCal component check in with their plans.

John Edwards Rocks Downtown LA

(more pics, courtesy of the Edwards campaign, at this photo set.)

John Edwards has generated a bit of notoriety today for smacking down Barack Obama’s suggestion that Ronald Reagan can be credibly seen as a model of change.  Edwards didn’t mention any of this today at a rally before hundreds (I’m really no good at judging crowd size, but there were a lot of people there) in downtown Los Angeles at the SEIU Local 721 headquarters, but he did have some choice words for another actor-turned-politician.

On the flip…

The speakers prior to Edwards included members of the Los Angeles City Council, Herb Wesson and Richard Alarcon (Janice Hahn was also in attendance).  All of them made a straight electability argument for Edwards’ candidacy, which was a little jarring (especially because Edwards did not do so).  Wesson even added “I don’t care who’s the first this or the first that, I want the best candidate to lead our country.”

(Wesson also asked “When was the last time California mattered in the Presidential primary, and I yelled “1968 and 1972,” but I don’t think he heard me.  Incidentally, given that three of the intervening races between now and then weren’t competitive, that was only 5 primaries ago.)

Edwards, however, stuck to the facts, and his powerful argument for why he should be President.  He offered the same policy shifts on Iraq (all combat troops out in 12 months), health care (universal coverage mandated for every American, mental health, preventive and long-term care included), global warming (80% reductions in emissions by 2050, no new nuclear or coal-fired power plants), defending the Constitution (ending Guantanamo, torture, rendition, and illegal spying), poverty (expanded social aid and an increase of the minimum wage to $9.50 indexed to inflation), and labor (fair trade and tax policy, the Employee Free Choice Act, no scab hiring, strong support for unions).  But I want to cite two moments that deviated from the script.

First, Edwards has been discussing the sad case of Nataline Sarkysian, the 17 year-old from Glendale who was denied a liver transplant by her health insurer CIGNA, and died shortly after the company reversed the decision.  This time, Sarkysian’s parents were on stage with Sen. Edwards, and when he related that tragic story, I couldn’t help but watch Nataline’s mother choke up.  It was affecting, it hit you right in the gut.  And when Edwards said, in respect to the health insurers, “Are you telling me we should sit down at the table with these people?  Never!  I don’t want to be their President,” it was undeniably moving.

Second, Sen. Edwards obviously did his homework before the rally.  He brought up the California budget crisis, and the austere across-the-board cuts proposed by Gov. Schwarzenegger.  It’s fair to say that he wasn’t a fan.  Here’s his comments (a paraphrase):

I spent a day earlier this year with an SEIU health care worker… the people she cares for need her.  The last thing this or any state needs are cuts to that kind of health care.  The last thing you need are cuts to K-12 education.  Does anybody believe that we are spending too much on K-12 education in this country?

It’s fantastic to have Edwards still in the race.  He’s obviously an underdog at this point, and he willingly acknowledged that, saying that he’s going up against “two hundred-million-dollar candidates.”  The compression of the primary calendar will make it very difficult for him to get his message out to the February 5 states.  Yet he said to the assembled crowd of several hundred that “you have the ability to send a message and build a grassroots movement, a wave across this state and across this country.”  There’s no question that Edwards has driven the policy agenda throughout this race, and his bold strain of populism and unabashed liberalism is sorely needed in Washington.  However, sadly, even some of his most ardent supporters were making the case for Edwards to stay in the race to horde delegates and extract something from the eventual winner, rather than a case for him winning.

A neat postscript: Cate Edwards, the Senator’s daughter, was on hand, and after the speech she was chatting with Mimi Kennedy of PDA, our local election reform activist here in LA.  Minutes later, I saw Cate with something written on her bag: “Bradblog.com”.  Progress is slow, but it’s happening.