All posts by David Dayen

Big Oil Buying Sacramento One Legislator At A Time

Jamie Court and Judy Dugan of the Foundation for Taxpayer and Consumer Rights pen an extremely troubling piece today about Big Oil, particularly Chevron, outright buying our government and its leaders.  This is not limited to Republicans, but certainly the Governor is the biggest recipient of this largesse.

Take Gov. Arnold Schwarzenegger, who once claimed that he was so rich he did not need anyone else’s money – and who isn’t running for another office. Yet as gasoline prices were breaking last year’s record of $3.38 a gallon, Schwarzenegger collected a $100,000 check May 1 from Chevron, the West’s largest refiner. The company certainly had the cash on hand. Just three days earlier, it reported a $4.7-billion first-quarter profit, up 18% over the same period last year.

The contribution brought Schwarzenegger’s take from Chevron to $665,000 (making it his 15th largest donor) since 2003, and his total political tribute from the energy industry is now $4 million. According to a recent Schwarzenegger fundraising solicitation, Chevron’s $100,000 buys the company special briefings with the governor, something that beleaguered motorists aren’t getting.

In all, oil companies delivered $90 MILLION dollars to political campaigns and parties in 2006, and while a lot of that went to block the corporate tax-for-alternative energy Prop. 87, plenty was spread around to political leaders and parties.  And that seed money ensures that there is no investigation into practices like this (over):

Like power plant owners during California’s 2001 electricity crisis, refiners such as Chevron have discovered that they can make more money by producing less gasoline. So they do. They have, over more than 20 years, deliberately reduced their capacity until they can barely meet California’s needs under the best of circumstances. Industry spokesmen defend this as efficiency. But there is no slack in the production system, which shorts the market and raises prices.

Any planned or unplanned refinery outage, pipeline break or power failure causes prices to jump.

Take the case of a possum and a raccoon that, in March, bit through power substation lines feeding two refineries in the South Bay. The critters expired, but the outage caused a 7-cent jump in local wholesale gasoline prices. The cost of refining gasoline is stable over time, so these price spikes equal pure profit for Chevron and Co […]

Chevron refined 22% less oil in the U.S. during the first quarter of this year than in the same quarter of 2006 because of longer “planned maintenance” downtime and accidents. Yet its total profit on U.S. refining increased 66%. Making less gasoline, it made much more money.

Last week, the CDP took $50,000 from Chevron.  Court and Dugan also detail a junket that Schwarzenegger chief of staff Susan Kennedy took with Speaker Fabian Nuñez in Rio, a 12-day conference paid for by Chevron and other oil interests.

During the 12-day conference, Chevron’s lobbyist got an entire day on the official agenda, which the public knows about only because of our Public Records Act request. Nuñez, who last year was highly critical of oil companies, seems to have nothing to say this year.

The FTCR have a long track record detailing this kind of takeover of our government.  And we all know about the inordinate power that corporate interests have in Sacramento.  This editorial makes it plain, and it’s really shocking to see it so starkly. 

Sheila Kuehl on SB 840

Yesterday I attended an event at the Santa Monica Democratic Club with State Senator Sheila Kuehl, who’s devoted the latter part of her legislative career to promoting and advancing SB 840, the single payer universal health care bill that the Governor vetoed last year.  Kuehl keenly understands the political dynamic of the health care debate in the state this year.  The Governor has vowed to pass a “universal” health care law this year, and he has vowed to veto Kuehl’s bill.  Nobody has brought the Governor’s initial program forward as a bill, and it’s likely that nobody ever will.  Both Senator Perata and Speaker Nunez have bills that are making their way through the relevant committees.  Sen. Kuehl’s bill has passed as well.  The Republican Assembly and Senate have forwarded piecemeal bits of legislation that don’t attempt to deal with health care in any kind of comprehensive way.

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Right now the advocates of single payer are continuing to build support.  Apparently there are ongoing talks with some hospitals to get them aboard.  It is likely that SB 840 will get to the Governor’s desk again, and it’s assured that he will veto.  Politically speaking, it’s positive (in my view) to keep advancing the same bill year after year and daring the Governor to betray his constituents and denying them the only comprehensive plan that ties health care to residency, not employment, and that will ensure that everyone in the state is covered with quality care.  If the Governor runs for higher office, that legislative history will be important.  Kuehl said that the Governor is not particularly interested in policy details; he wants to be able to sign something that he can call universal health care, whether the appellation applies or not.  Kuehl has signed on as a co-sponsor on Sen. Perata’s bill so that she can help steer it in a direction closer to universal care.  This is smart.  But the important thing is that any bill that’s passed this year (and there is likely to be something) should be seen as a stepping stone to the ultimate goal of single payer.  Because a “universal” program passes in 2007 does not mean the end of SB 840.  Kuehl, and whoever succeeds her in advancing the bill, will continue to build support, will continue to point to their funding mechanisms and study reports that prove the viability of single payer, and will continue to put forth a bill until there’s a governor who can sign it or a majority of Californians who can vote for it in an initiative form.  That initiative, according to Kuehl, should not be advanced until there is additional support among hospitals and doctors.

I am happy that Kuehl is using 840 as a means to get a better bill passed this year, while keeping focused on the ultimate goal of getting a real health care system passed that covers every single Californian.  The only way to rein in soaring costs is to ensure a baseline of care from a central pool that everybody pays into, with a system that is not based on making money but caring for people. And it’s important to note that Kuehl’s bill is not a pie-in-the-sky idea.  This is a detailed report on the financial structure of the proposal, showing how every single dollar can be accounted for, with every Californian able to access affordable care while saving total medical costs.  It’s a positive thing for the country that a plan of this nature is being offered with maximum seriousness and realism.  If it can be done in California, it can be done across the nation.

Senator Shriver?

With respect to the Leno-Midgen battle royale, the most interesting State Senate primary may end up being in the 23rd District, replacing the termed-out Sheila Kuehl (who is likely to run for LA County Supervisor, as she wants to stay closer to home).  Up until now, it was assumed that the race would be between former Assmblywoman Fran Pavley and current Assemblyman Lloyd Levine.  Each has their base of support in different parts of the district, and that would be an interesting enough battle in and of itself.  But now I hear that Santa Monica City Councilman Bobby Shriver, brother of Maria, is looking to possibly run for that seat.  Shriver was elected to the City Council in 2004 (I remember getting robocalls from Ted Kennedy for a City Council race), has been a music and television executive, and co-founded the Debt AIDS Trade in Africa organization and the RED Initiative with Bono and others.  His donor list reads like a Who’s Who of Hollywood celebrity, and he wouldn’t have any problem raising money (he spent more than $350,000 to win a City Council seat in a city of around 90,000).

However, there is a bit of tension between Shriver and the progressive grassroots community.  The dynamic in Santa Monica is between the beachfront hotels, who want pro-business policies forwarded, and SMRR (Santa Monicans for Renters Rights), who are more in line with citizen concerns.  The beachfront hotels went after Councilmember Kevin McKeown (easily the most progressive) in 2006 with an aggressive and vindictive campaign that included dishonest TV ads.  SMRR wiped the floor with them, as McKeown grabbed the largest share of the votes. 

That same group of business interests backed Shriver with huge dollars in 2004.  Now, Shriver and McKeown don’t vote all that differently, though McKeown is somewhat more progressive.  But that perception, combined with the fact that Shriver really hasn’t had much interest in engaging with the local grassroots, has strained relations.  And Pavley is certainly their candidate in this race.  The high name-ID of a Shriver throughout the district and his ability to bring in big money will be formidable, but the grassroots connections for both of the other candidates will be an obstacle.  This is going to be an outstanding race.

Whoa! Conservatives Going After Calvert!

Earlier today I wrote that Ken Calvert got John Doolittle’s “token corrupt Californian” seat on the House Appropriations Committee.  What I didn’t know is that this has raised the ire… of the right?

I care a lot about the House of Representatives, I care a lot about our members and once someone is ethically challenged and gets in trouble it effects all of us. … I appreciate the high ethical standards that [Boehner] has set … but I believe the bar was lowered today when our conference chose to vote Ken Calvert onto the Appropriations Committee.

That was Ray LaHood of Illinois, going after one of his colleagues in the media.  And it doesn’t stop there.  RedState has declared war on Calvert.  Minority Leader John Boehner is getting a lot of heat from organized phone campaigns.

Wow.  Do they not know that half their delegation is just as corrupt?  (Incidentally, Calvert’s going to be moving up in my next House target list.  Do we have a candidate?)

Second Verse, Same As The First

You may remember that John Doolittle stepped down from his seat on the House Appropriations Committee because of the ongoing scandal into his ties with convicted felon Jack Abramoff.

The GOP leadership, sensing that there’s an almost unlimited well of corrupt California Republicans who can replace Doolittle, decided to call up one from the minors.

Yesterday, the House Republican Steering Committee voted to seat Rep. Ken Calvert (R-CA) on the Appropriations Committee, “filling the vacancy left by embattled Rep. John Doolittle (R-CA),” who is under investigation by the FBI for his longstanding ties to convicted lobbyist Jack Abramoff.

Named one of Citizens for Responsibility and Ethics in Washington’s “20 Most Corrupt Members of Congress,” Calvert has a history of abusing his power just as much as Doolittle.

This is part of the Law of Conservation of Conservative Californians – corrupt GOP Congressmen from this state can neither be created or destroyed, always remaining in equilibrium.  Until we retire them.

Calvert’s rap sheet on the flip…

Made huge personal profits off his own earmark. Calvert pushed through an earmark to secure over $9 million for freeway and commercial development near property he owned in California. After the development of the area, Calvert sold his property for a 79 percent profit.

Personal firm received commission from earmark. “In another deal, a group of investors bought property a few blocks from the site of a proposed interchange, for $975,000. Within six months, after the earmark for the interchange was appropriated, the parcel of land sold for $1.45 million. Rep. Calvert’s firm received a commission on the sale.”

Rewarded K Street firm under investigation with pork projects. The Copeland Lowery lobbying firm is currently “enmeshed in a federal investigation of Rep. Jerry Lewis (R-CA).” “Rep. Calvert has helped pass through at least 13 earmarks sought by Copeland Lowery in 2005, adding up to over $91 million.” The lobbying firm has been Calvert’s largest campaign contributor.

Traveled to Saudi Arabia with convicted Rep. Randy “Duke” Cunningham (R-CA) in 2004. They were accompanied by Thomas Kontogiannis, an alleged co-conspirator in the Cunningham controversy.

And Calvert is rewarded for this sterling record by getting his hands closer to the earmark cookie jar, on Appropriations.  I’m guessing he won’t be able to help himself.

Kick-The-Can Budgeting

The state of California is not generating the revenue that they expected.  This is clear and it’s been known for some time.  The original budget that the Governor proposed, based on those sunny estimates, is obsolete.  In order to balance the budget, spending will have to decrease or revenue increased.  We know what choice the Republican will make.

Gov. Arnold Schwarzenegger is likely to call for state spending cuts beyond those he proposed in January when he presents a revised budget to the Legislature next week, administration officials said Tuesday […]

In January, Schwarzenegger outlined a $103 billion general-fund budget for the 2007-08 fiscal year and proposed balancing it by withholding cost-of-living increases for welfare recipients, cutting welfare payments to children whose parents fail to comply with work requirements, and reducing aid to the homeless, among other things.

The cuts to welfare will remain in the budget the Republican governor is slated to unveil on Monday, Palmer said. That could set up a showdown with Democratic lawmakers, who have made it clear they oppose reducing the social safety net for children.

But don’t worry, there’s a Plan B; privatizing the lottery!

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Gov. Arnold Schwarzenegger is poised to call for privatizing the state lottery, a move that would bring California a cash infusion of as much as $37 billion to help solve pressing budget problems but also could sacrifice a major revenue source for decades to come.

….It comes at a time when the state is facing only a modest budget deficit for the coming fiscal year – about $1 billion. But billions more in bond payments will be due soon after.

This is “kick-the-can-down-the-road” budgeting, and it’s no different than George Bush trying to run out the clock on Iraq so that the next executive has to clean up the mess.  It’s irresponsible to put so much of a debt burden on future generations.  We’re looking at hundreds of billions of dollars in debt for decades and decades, in bond issues and the loss of revenue for short-term gain.  Kevin Drum thunders on this, and he’s absolutely correct:

Once again, Arnold “We Have To Stop This Crazy Deficit Spending” Schwarzenegger is desperately trying to figure out a way to increase our deficit spending so that he can continue to pretend that he hasn’t raised taxes. That’s all this is about.

He’s already done this once with his deficit bonds, which will have to be repaid out of increased taxes eventually, and now, in order to make sure that “eventually” is sometime after he leaves office, he wants to raid the lottery to tide himself over. The result, of course, will be lower revenue in the future and therefore higher taxes. But not on his watch.

Schwarzenegger may have a sunnier persona than George Bush, but the cynicism on offer here is even worse than Bush’s. Arnold knows perfectly well he’s raising taxes. He’s just hoping the rest of us are greedy enough to allow ourselves to be convinced otherwise.

We’re going to have three and a half more years of this nonsense, of this focus on short-term glitz at the expense of long-term security.  We are getting played, and I would like to see some of our Democratic leaders in this state make this point forcefully.

Pressuring Arnold on Prisons

It’s well-known that Senate President Pro Tem Don Perata wasn’t particularly happy with the sellout prison construction bill that the Governor signed last week.  It’s also well-known that none of the “reforms” in that prison bill will do anything to lower the prison overcrowding rate before the fast-approaching deadline for the state to appear before a judge and prove that the situation has changed.  So Perata is using some old-fashioned arm-twisting to get some real reforms in the corrections system.

The Senate Democratic leader is urging Gov. Arnold Schwarzenegger to use his administrative power to change parole rules to ease severe prison crowding, possibly by as many as 8,100 inmates.

Senate President Pro Tempore Don Perata, D-Oakland, said Republican opposition kept parole reform out of a $7.8 billion plan to ease overcrowding through a building program and transferring some prisoners to other states.

Perata said speculation at the Capitol that the bill signed by the Republican governor last week includes an unwritten “side deal” to have Schwarzenegger bypass the Legislature and administratively enact parole changes is inaccurate.

“I wouldn’t call it a deal,” Perata said of talks with the governor. “What we said is we couldn’t put it in the bill because the Republicans wouldn’t support it.

“We said further that if you don’t do something with parole, you can’t make any of this work,” said Perata. “So you’ve got the ability to do it. It’s up to you to do it.”

Of course, I’d rather they tried to put this in the bill, dared the Republicans to block it, and then run on the consequences.  But clearly, Perata is trying to leverage the judicial deadline (which is the only reason anything got done on a prison bill in the first place) to bring about a saner policy.  I don’t like that the Democratic leadership appeared to cave on this policy and gave the Governor most of what he wanted; I personally think that, without real reform, they’ll have to do the same damn thing five years from now.  But at least Perata is trying to use the deadline to his advantage, after it was used to his detriment previously. 

Perhaps Perata could get Mike Jimenez of the CCPOA, who’s disinclined to the Governor’s plan, to join him in calling for parole reform.  And he should go further and introduce Sen. Romero’s legislation for an independent sentencing commission.  But this is making the best of a bad situation.

Let’s See What Ellen Tauscher Is Made Of

Ellen Tauscher sits on the House Armed Services Committee.  Today they may attempt to put a rider in the defense authorization bill that would restore the great writ of habeas corpus, which allows detainees to petition the courts to understand why they are being held.  This time-honored tradition of civilization, dating back to 1215 and the Magna Carta, was shamefully stripped out by the Military Commissions Act of 2006.

Matt Stoller is urging everyone to contact members of the panel to ask them to support the restoration of habeas corpus.  If you have a free moment today, call Ellen Tauscher at 202-225-1880 and ask her to defend the Constitution by making it whole again.  We cannot be credibly considered any kind of moral leader in the world if we detain people indefinitely without telling them why they are charged.

The full list of members of Congress to call is here.  But I would pay particular attention to Congresswoman Tauscher, who claims to be in line with the concerns of her district, who claims to be a progressive.  The progressive position is not to torture and not to store people away in secret prisons without end.

UPDATE: Tauscher “vows to support habeas corpus” and “will be an original co-sponsor of Skelton’s bill, which is expected to be introduced next week.”  This is good news.

Pelosi Smeared Again, House GOP in the No-Facts Zone

We don’t do enough on this site to defend our own Speaker Pelosi from ridiculous media hit jobs.  Sure, blogswarm put this one in the Quick Hits, but it deserves wider attention because it falls into a predictable pattern.  The nutjobs in the House Republican Caucus put out some kind of non-factual press release, a still-unsuspecting-after-all-these-years news organization dutifully types it up, Drudge and the right-wing noise machine links to it, and by the time the charges are completely discredited, the media schoolchildren and Republican outrage-bots have moved on to the next thing.  The entire idea is to “get it out there,” to plant a seed of malfeasance in the mind of the voter despite the complete disregard for the facts.  This has happened at least four times that I can think of, in just the first four months-plus of the Pelosi Speakership.  And I’m sick of it.

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In this instance, the right is claiming that Pelosi inserted Port of San Francisco waterfront improvements into a water redevelopment bill passed by the House last month. (Ever wonder why they always catch these things long after they’ve voted on them?  It’s like they don’t care about the legislation, just having an issue.  Hmmm…)  They claim that the improvements would benefit Pelosi’s husband’s rental properties.

Except the properties are a mile away from where the improvements are to be built, and the Port of San Francisco requested the improvements.  This was confirmed within five minutes by Greg Sargent.  But the writers and editors at the AP let that slip by, and just uncritically printed the “controversy” that was made up out of whole cloth without any factual basis.

You can add this to the Speaker requesting a phat jet so her Entourage (including Turtle) can party on the way to DC, her lowering the minimum wage in American Samoa to benefit Starkist Tuna, her going to Syria and undercutting American foreign policy, etc etc.  None of these allegations where even close to being true, and all of them folded under scrutiny.  Of course, that wasn’t the point.  The point was to get Suzanne Malveaux to call Pelosi “the most controversial Speaker yet!”  The point was to make sure the low-information voter has this vague sense from Rush and Fox News headlines that Pelosi is some corrupt politician who’s robbing the federal treasury for perks for her friends and allies.  And this is done so that, when GOP Congressman have their houses raided and some actual tales of corruption come out, the Republicans can stamp their little feet and scream “Pelosi too!!!”

We’re way too forgiving of this tactic.  It’s because we have actual respect for the truth.  But the Republican operatives who keep feeding the AP this obvious bullshit have none.  And what’s more, they count on the fact that once-proud news organizations like the AP are too lazy to know the difference between reality and lies, and they’ll print virtually anything as long as they can put it in the familiar “he said/she said” context, keeping them one step away from reporting the story.  There’s no value placed on objectivity anymore, which isn’t just going to each side for a quote.  There are incontrovertible facts here, and that ought to go into the decision to run with a trumped-up “story,” especially when delivered by political operatives.  I’m fuming at this incident, and while certainly Speaker Pelosi can take care of herself, she needs to know that the progressive movement, at least out here in California, has her back and will not let this stand.

Early Projections: CA House Races

There are no Senate seats up in California in 2008, and no statewide offices up for election, so the biggest seats outside of the Presidency will be in the House of Representatives.  While we’re 18 months out, I thought I’d give a snapshot of what races are most inviting for a Democratic pickup.

I’m going to concern myself solely with pickup opportunities, because the only realistic possibility of a GOP pickup is in CA-11, and I’m confident that Jerry McNerney and his grassroots army can handle whatever’s thrown at him, plus he’ll have the power of incumbency and the focus of the CDP.  There may be some retirements that would make things interesting (Lantos, Stark, Woolsey), but those are very blue areas.  So let’s look at the best opportunities to add to the Democratic majority:

1) CA-04 (Doolittle): The Doolittle watch continues, and what is most clear is that the best thing for California Republicans would be for Doolittle to just go away.  Charlie Brown has a $200,000 CoH advantage and the taint of the intensifying Abramoff scandal won’t be as easy to wash off the second time around.  If it’s a fresh challenger and an open seat, Brown will still have a higher name ID, but it would be more difficult.

2) CA-26 (Dreier): Hekebolos has mentioned David Dreier’s fundraising troubles.  Plus, as a member of the GOP Leadership, he can be very much tied to their failures over the years.  And the Partisan Voting Index (PVI) in the district is only +4 Republican, comparable to McNerney’s district, and has been shrinking over the years.  It’s the third-closest PVI district in the entire state, and yet Dreier is anything but a moderate.  Russ Warner ran in the 2006 primary (losing to 2004 candidate Cynthia Matthews, who then raised almost no money for the general) and will be running again, and appears to have the right makeup to pull off this upset.

3) CA-50 (Bilbray): The replacement for the Duke-Stir has not distinguished himself (does Bilbray live in that district yet?), and Howie Klein, at least, is intrigued by the potential candidacy of Michael Wray, a former Busby campaign worker and rocket scientist.  I think he’d have a somewhat better chance than Francine Busby.  This would be tough, but not a hopeless district.

4) CA-24 (Gallegly): Elton Gallegly maintains that he’s running.  He tried to retire in 2006, and then abruptly returned to the race because California election law mandated that his name would appear on the ballot regardless.  He eventually defeated Jill Martinez with 62% of the vote.  The word is that Martinez is running again.  Ventura County Democrats have done an amazing job turning around voter registration numbers in the region of late, adding to hope that this could be winnable even against the incumbent.  The PVI is R+5.

5) CA-42 (Miller): See above.  Not hopeless but tough.  The fact that it’s more Republican than CA-50 is balanced out by the fact that Gary Miller is a thieving scumbag who is under investigation by the feds.  Unlike last year, there will be a candidate, and the race is definitely on the CDP’s radar screen.  If we win this one, it’ll be a very good year.

6) CA-25 (McKeon): Buck McKeon is always a threat to retire, and this is a R+7 PVI, so it’s not impossible.  And this is one of those seats, in northeastern LA and San Bernardino Counties, that we have to start competing in, because the job growth in the inland areas of Southern California are outstripping the coasts. Robert Rodriguez did a decent job here in 2006 (McKeon won 60%-36%).  I hope he runs again.

7) CA-52 (open seat): The only Republican open seat to date, but it’s almost not open at all, because Duncan Hunter is trying to give the seat to his son, also named Duncan Hunter, and he’s likely to be fighting in Iraq during the election.  Kind of hard to compete against someone with that circumstance.

8) CA-45 (Bono): David Roth raised a decent enough amount of money in 2006 to at least make Mary Bono sweat.  The PVI is only R+3.  But it was one of the lowest-turnout races in the entire state.  If we can excite people out in the desert, ya never know.

9) CA-41 (Lewis): The Jerry Lewis investigation has gone cold, but the fact that Debra Yang appears to have been bought off the probe by the law firm representing Lewis means that the scandal might have a different set of legs.  And again, this is a part of Southern California where we need to have a presence; eventually there will be more and more people in this region, and probably more seats.  And the fact that they are likely to be coming from liberal Los Angeles means it’s an opportunity to get some infrastructure going.

10) CA-44 (Calvert): This district has actually less of a PVI (R+6) than CA-25.  And Calvert has some earmark and lobbying problems.  And the guy was caught with a prostitute in his car back in 1993.  So the atmospherics are there.  But Democrats have done little in this district.  His challenger last year raised 8 grand.  Total.  And he STILL got 38% of the vote!  It’s time to give this guy a real challenge.

Realistically, 2 pickups would be a really good tally; 3 would be amazing.  But the goal should be getting some of these incumbents to around 55%.