All posts by David Dayen

Culture Of Arnold Claims First Victim

I wrote last week about the growing scandal among Schwarzenegger cabinet officials, who were living very well on the public dole while the rest of the state sunk into a deep recession and double-digit unemployment.  Well, after additional disclosures, the scandal has claimed its first victim.

Gov. Arnold Schwarzenegger appointee Rosario Marin resigned Thursday from her post as secretary of the State and Consumer Services Agency after accepting tens of thousands of dollars in speaking fees in defiance of administration policy and possibly state law.

Marin faces an investigation by the Fair Political Practices Commission after declaring the speaking fees on income statements she must file as a public official.

The Los Angeles Times reported Thursday that Pfizer paid $15,000 in 2007 for Marin to speak, while Bristol-Myers Squibb paid $13,500 in 2008 for another speech. Both companies indicated on state forms that they had business before departments under Marin’s authority.

It’s amusing that taking speaking fees from pharmaceuticals was enough to force a resignation – and I agree that it’s unseemly and possibly illegal – but there’s no mention of the same cabinet official and practically all the others stealing, essentially, from the state treasury to finance their lifestyles.  That’s because in the culture of Arnold, such largesse is completely acceptable.

This is one reason why the Governor has worn out his welcome with the people of California and can’t poll above 31% in a Republican primary anymore.  He has lost the trust of the electorate.  He also happens to be a piss-poor lawmaker who has pushed the state to the brink of collapse.  But you know that.

More Ballot Measure Courtroom Action!

There is actually another major hearing going on in the state today, in Sacramento Superior Court.  Various plaintiffs are suing to change the title and summary on two of the ballot measures in the May 19 special election, on the grounds that they were fraudulent and misleading.  And there’s already been one victory today.

The May 19 ballot measure to temporarily take money from a 2004 mental health initiative has a new overview that will be presented to voters, after a settlement to a legal challenge was reached this morning.

The challenge to Proposition 1E’s ballot title and summary, and its ballot label, was centered on charges by opponents that the Legislature wrote a “false and misleading” overview, in order to make Prop 1E’s redirection of some $450 million in mental health funds more palatable.

The new summary makes it more clear that earmarked mental health funds will be taken away from the voter-approved Prop. 63 and used to balance the state budget.  Earlier, the weasel words “provides temporary flexibility” were used.

The other dispute is over Prop. 1A, the state spending cap.  John Myers is Twittering from the courtroom, and the plaintiffs are making the same clear and obvious points about the legislature’s treachery in this matter that George Skelton made this morning.  The title makes no reference to the spending cap OR the extension of tax increases that was part of the deal, and the summary only alludes to the taxes near the end of the description as part of the fiscal analysis.  The summary uses words and phrases like “rainy day fund” and “overspending” and “reform” in ways clearly designed to persuade the voter.  Defense lawyers claim that the fleeting reference to revenue in the fiscal analysis is all that is needed, and anyway voters “already understand all the underlying budget issues” so there’s no need for any changes.

As I’ve said, this now is starting to look more like a cover-up, which is very bad for a legislature and a Governor who aren’t seen by the voters as trustworthy, and in at least the Governor’s case, for good reason.  If the aftermath of the ruling is a court order that the legislature deliberately wrote the title and summary in a way to obscure the truth about what Prop. 1A would do, there’s your fodder for commercials for the next 2 months.  And it’s a potentially fatal blow.

We’re awaiting a decision…

UPDATE: So here’s the answer – the judge would like some of the more misleading language removed, but isn’t inclined to add in big bold letters “THIS MEANS YOUR TAXES ARE GOING UP.”  This obviously can be exploited by whatever campaign coalesces around the No side – the “hidden tax,” et al. – but it won’t be on the ballot beyond the bit in the fiscal analysis.  We’ll see what the final language will read.

CA-48: Could Beth Krom Beat John Galt?

Last week, OC Progressive (which has really attracted a good group of writers and provided a vital progressive voice in Orange County) revealed that Beth Krom, an Irvine City Councilwoman, is considering a run against Rep. John Campbell.  In a subsequent post, Joe Shaw explained why Krom would make a worthy challenger.

She can win elections.

Beth Krom has won five campaigns, In 2006, she garnered 60% of the vote in her re-election as Mayor and in 2008, won her current City Council seat with 8000 votes more than the next candidate.

She gets things done.

We need elected officials who have experience getting things done for their constituents. Beth Krom is a strong advocate for environmental stewardship. Her vote was instrumental in cleaning up the water along the Orange County coast: she was the first “inland” representative to advocate for full secondary treatment of the effluent the OC Sanitation District pumped out into the ocean and was the “swing vote” in getting the board to fund implementation.  

She’s a visionary.

Beth Krom understands that Orange County needs leadership that will advance innovative, integrated transit solutions, sustainable development practices and green technology and jobs initiatives.

She can work across party lines.

Beth Krom has the respect of so many people throughout Orange County because she works with people, regardless of political affiliation, to get things done.

Irvine is one of America’s best run cities.

What other Orange County elected, at the local, state or federal level, can lay claim to the legacy of forward-thinking leadership that Beth Krom has provided in the City of Irvine? “Safest City in America” four years straight; a balanced budget and more than tripling city reserves during her term as Mayor, and advancing a project of regional importance – the Orange County Great Park.

I’m a little gun-shy to out and out predict victory in these California Congressional races.  We are know that they are tough slogs, and were disappointed by the performance of many promising candidates last cycle.  Nonetheless, we cannot leave these red areas behind, and there’s no question that the threat of candidates like Bill Durston and Debbie Cook forced the national GOP to spend money where they didn’t want to spend it, leading to other losses around the country.  Everything is connected, and thus solid candidates should continue to be recruited everywhere.

What’s more, President Obama actually beat John McCain in CA-48, despite the district’s Republican tilt.  And, far from distinguishing himself, Campbell has most recently looked to Ayn Rand novels for inspiration in setting public policy:

Rep. John Campbell (R-Calif.), who gives his departing interns copies of Ayn Rand’s novel “Atlas Shrugged,” told me today that the response to President Obama’s economic policies reminded him of what happened in the 51-year-old novel.

“People are starting to feel like we’re living through the scenario that happened in ‘Atlas Shrugged,'” said Campbell. “The achievers, the people who create all the things that benefit rest of us, are going on strike. I’m seeing, at a small level, a kind of protest from the people who create jobs, the people who create wealth, who are pulling back from their ambitions because they see how they’ll be punished for them.”

It would be a terrible thing if the titans of industry that have burned through trillions of dollars in American wealth were to pull back and not be so ambitious, wouldn’t it?  And it’s certainly a rational reaction, to forcibly crumble what’s left of the American economy due to an increase of 4 cents in the top marginal tax rates.  Even more certainly, there’s no question that it would turn out just like the fictional novel – that every high-earner would leave their job and nobody would pick up the slack.  Conservatives are nothing if not selfless.  And daring, rational men who live by their minds.

This guy is obviously a buffoon, but we know that is sadly not enough in these districts.  And repeat candidates, who have built up their name ID and volunteer base, always have a better shot.  If I were to forecast the early prospects for a flipped seat in California right now, I would go:

CA-44: Bill Hedrick is already announced as a candidate, and he lost by just 2.6% to Ken Calvert last time.

CA-03: The trendlines in the district are favorable, but it’s unclear if Bill Durston will make a third try.

And then, pretty much, nothing, until there’s clarity about who’s running.  Charlie Brown writing an op-ed in the Auburn Journal trashing Tom McClintock suggests he might try again in CA-04, but I’m not sure.  Given the current state of affairs, I’d say CA-48 isn’t looking too badly, though it’s early.

DiFi Can’t Handle The Truth

Yesterday the Senate Judiciary Committee held a hearing on Patrick Leahy’s call for a truth commission to investigate the crimes of the Bush Administration.  Obviously the events of the past couple days, with the release of OLC memos that really transformed the concept of democracy in the Bush era, is revitalizing this debate.

Justice Department officials said they might soon release additional opinions on those subjects. But the disclosure of the nine formerly secret documents fueled calls by lawmakers for an independent commission to investigate and make public what the Bush administration did in the global campaign against terrorism.

The chairman of the House Judiciary Committee, Representative John Conyers Jr., Democrat of Michigan, said the revelations, together with the release of new information about the Central Intelligence Agency’s destruction of 92 interrogation videotapes, had underscored the need for a commission that would have the power to subpoena documents and testimony.

The OLC memos are still extraordinary, so horrifying in the picture they paint of executive power that the head of the OLC, Steven Bradbury, felt the need to disavow them near the end of the Bush regime.  It’s likely that he did so to take the heat off of himself.  But there ought to be no get-out-of-jail-free card for the actions taken as the result of these memos.  Glenn Greenwald looks at one of the documents.

The essence of this document was to declare that George Bush had the authority (a) to deploy the U.S. military inside the U.S., (b) directed at foreign nationals and U.S. citizens alike; (c) unconstrained by any Constitutional limits, including those of the First, Fourth and Fifth Amendments.  It was nothing less than an explicit decree that, when it comes to Presidential power, the Bill of Rights was suspended, even on U.S. soil and as applied to U.S. citizens.  And it wasn’t only a decree that existed in theory; this secret proclamation that the Fourth Amendment was inapplicable to what the document calls “domestic military operations” was, among other things, the basis on which Bush ordered the NSA, an arm of the U.S. military, to turn inwards and begin spying — in secret and with no oversight — on the electronic communications (telephone calls and emails) of U.S. citizens on U.S. soil.

As Harper’s Scott Horton says, “We may not have realized it at the time, but in the period from late 2001-January 19, 2009, this country was a dictatorship.”   More on the memos from Jack Balkin and Anonymous Liberal.

Yoo, who is hiding out in Orange County at Chapman University, admitted in an interview to the OC Register only that his memos “lacked a certain polish,” in a profile more concerned with how he’s enjoying the beaches and Vietnamese food of Southern California rather than the “hippies, protesters and left-wing activists” of Berkeley.  Somehow, he’s still teaching law.  Jay Bybee, the other major player in the composition of these memos, is a 9th Circuit Appeals Judge in San Francisco.  Bruce Ackerman recommends impeachment.

Despite the calls of apologists to the contrary, we have to have a reckoning on this.  The previous President, aided by his allies, asserted broad executive powers far outside Constitutional strictures, and the results were illegal wiretapping, torture, extraordinary rendition, indefinite detention, and a series of other crimes against the state and violations practically every amendment in the Bill of Rights as well as international law.  

But one member of the Judiciary Committee wasn’t at the truth commission hearing yesterday – Dianne Feinstein.  Through a spokesman, she sidestepped whether or not she supports a commission, saying she “hasn’t seen a proposal.”  But she is instituting a competing investigation, from her perch at the Senate Intelligence Committee, that is bound to be a whitewash:

The inquiry is aimed at uncovering new information on the origins of the programs as well as scrutinizing how they were executed — including the conditions at clandestine CIA prison sites and the interrogation regimens used to break Al Qaeda suspects, according to Senate aides familiar with the investigation plans.

Officials said the inquiry was not designed to determine whether CIA officials broke laws. “The purpose here is to do fact-finding in order to learn lessons from the programs and see if there are recommendations to be made for detention and interrogations in the future,” said a senior Senate aide, who like others described the plan on condition of anonymity because it had not been made public […]

The senior aide said that the committee had no short-term plans to hold public hearings, and that it was not clear whether the panel would release its final report to the public […]

Senate aides declined to say whether the committee would seek new testimony from former CIA Director George J. Tenet or other former top officials who were involved in the creation and management of the programs.

The Senate investigation will examine whether the detention and interrogation operations were carried out in ways that were consistent with the authorities and instructions issued in the aftermath of the Sept. 11 attacks, officials said.

The panel will also look at whether lawmakers were kept fully informed. Sen. Dianne Feinstein (D-Calif.), the chairwoman of the committee, and others have said that the Bush administration improperly withheld information from Congress on the CIA’s operations.

This is basically a turf war.  Feinstein wants control of the investigation process in her committee, over Patrick Leahy.  And she wants the hearings to be private as well as the final report.  Emptywheel writes:

Pat Leahy will have an investigation regardless of what DiFi says–and he’s going to start it now. So DiFi issues a vaguely formulated leak saying that she’s going to cover the CIA’s role in torture. And, voila! Now the CIA and DiFi can say try to circumscribe Leahy’s investigation. And of course, by doing an investigation that starts with the premise that it is “not designed to determine whether CIA officials broke laws,” even while admitting that CIA officers may have gone beyond the “instructions issued in the aftermath of the Sept. 11 attacks,” it ensures no accountability even for those who went beyond Cheney’s torture regime. And, finally, absolutely no current plans to make public the results, either through public hearings or by releaing a report.

Call DiFi at (202) 224-3841. Thank her for recognizing the importance of understanding the mistakes we made in the past. Remind her that even Pat Roberts’ investigation into CIA Iraq intelligence was released publicly. Demand that she meet at least the level of transparency adopted by her Republican predecessors as SSCI Chair.

Agreed.  This is too important for it to be done in the secret bowels of official Washington as a “fact-finding mission” yielding a white paper that will wind up collecting dust on a shelf.  Feinstein is trying to let criminals off the hook, plain and simple.  History tells us that the inevitable return of criminals like this will only be emboldened to go further as a result.

LA City Election Wrap – Villaraigosa Wounded By His Own Hand

First of all, the turnout was indeed 15%, down from 28% for the primary just four years ago.  That’s mainly due to the top of the ticket, which was competitive last time around and featured just Antonio Villaraigosa and a bunch of tomato cans this time.  But I don’t think Villaraigosa should be celebrating about his performance.  Despite 4 years of work as the Mayor, despite a field of underfunded nobodies, he actually got LESS votes in 2009 than he did in 2005.  His support has diminished and not increased.  And the seas are about to get a lot choppier.

Flanked onstage by Weiss, sometime-rival City Atty. Rocky Delgadillo and labor leader Maria Elena Durazo, Villaraigosa turned to the mounting challenges ahead from the city’s looming $1 billion deficit to the possibility of widespread layoffs.

“I know these are troubled times for many of our families — you see I’ve traveled around the city for the past few months and I witnessed the anxiety rising,” Villaraigosa said. “I have a simple message for Los Angeles tonight, we’re going to rebound out of this economic crisis and we will emerge stronger than ever.”

The guy who is less likely to emerge stronger than ever is Villaraigosa.  He ended up with just 56% of the vote after running a dismissive non-campaign where he refused to debate and spent almost no time in the city.  One of his top lieutenants, Jack Weiss, is now in a runoff for city attorney despite spending millions on his campaign.  And Measure B, the solar power initiative which the mayor backed, is too close to call at this hour, as provisionals and late absentees are tabulated.

That’s an objectively terrible performance.  And it should stop the Mayor from thinking about his next campaign so quickly.  The enduring image of the Villaraigosa tenure is a crane alongside a half-built skyscraper.  He is full of good ideas that never get the follow-through they deserve.  That’s what this election was like – he was already thinking about the Governor’s race before finishing his re-election campaign.  This may now be a fatal blow, but it doesn’t look good for him.  The Mayor of Los Angeles is a challenging, maddeningly complex position.  It would be nice if the current occupant paid more attention to it.

Save The Spending Cap Three

As Becks mentioned in an eloquent diary on the Rec list, Karen Bass has made a baffling, counter-productive move to punish Sandre Swanson, Warren Furutani, and Tony Mendoza, lawmakers who did the right thing for their districts and their state by opposing the spending cap part of the budget.  The LA Times has a good story on this.

Like a military commander busting down insubordinate troops, Assembly Speaker Karen Bass (D-Los Angeles) has stripped committee chairmanships from a trio of wayward lawmakers after they refused to join fellow Democrats in support of a key budget provision.

The three assemblymen — Sandre Swanson of Alameda, Warren Furutani of Gardena and Tony Mendoza of Artesia — voted last month against a measure to cap state spending, which will appear on a special statewide ballot this spring […]

By removing the three lawmakers from their posts, Bass takes away key staff assistance, clout on policy issues and potential fundraising power.

She’s hurting those lawmakers, but as the above sentence makes clear, she’s hurting their constituents as well.  All because they couldn’t go along with a plan that will make it impossible to deliver basic services to Californians, even in good economic times.  And the spokeswoman for Bass trying to sidestep the rationale for this is pathetic.

“Having now had a couple months to see this class in action,” the speaker felt changes were needed “to ensure the Assembly can continue to do the best job for the people of California,” said spokeswoman Shannon Murphy.

She declined to elaborate, calling the changes “an internal caucus matter.”

You’ll notice that Darrell Steinberg did not mete out this punishment to, for example, Loni Hancock, who voted against the spending cap in the Senate.

I understand the desire for leadership to have control of their caucus, but unless we’re concluding that Karen Bass really really wanted to cap state spending, there is no good reason to enforce party discipline on a terrible vote.  When the spending cap goes down because of the arrogant way that Bass and the legislature hid the true costs, both on the spending side and on the taxation side, these three members who were right all along will appear to be the only ones who suffer.

I think it’s worth writing or calling the Speaker and asking her why she wants to punish progressives for voting to protect services for Californians.  And you might ask her, politely, to reinstate the Spending Cap Three.

District Address

5750 Wilshire Boulevard

Suite 565

Los Angeles, CA 90036

Phone: (323) 937-4747

Fax: (323) 937-3466

Capitol Address

P.O. Box 942849

Room 219

Sacramento, CA 94249-0047

Phone: (916) 319-2047

LA City Elections: Promise, Pitfalls, Potential

Today is Election Day in LA City, and given the turnouts we’ve seen in other off-year elections, as well as the fact that the mayoral race, the biggest ticket on the ballot, is basically a coronation, turnout is likely to be very small, save for the wide-open 5th District City Council race, which is really anybody’s to win (very unusual in LA politics).  The expectation is about 15%.  Despite the fact that Los Angeles actually has a fairly rich culture of political activism, from the Latino student sit-ins to recent Prop. 8 actions and hundreds more, the recent history is that city elections do not draw much of a crowd.  That’s a shame in a city that’s larger than the total populations of many states, and it reduces accountability on the elected officials.

I don’t live in Los Angeles, but I work here, and I have a conflicted view about the way the city runs.  I think if every resident were forced to watch The Garden, the Oscar-nominated documentary about South Los Angeles residents being forcibly evicted from a community garden, nobody would vote for anyone currently on the City Council, least of all Mayor Villaraigosa.  The film, almost a real-life version of The Wire, revealed a city government of backroom deals and power-brokers able to make their voices heard well beyond the needs of the community.  You can add to that the rare bit of journalism from the LA Weekly about the City Council, and you could be convinced that the lack of accountability from the electoral process has bred a toxic atmosphere at City Hall.  The likely consolidation of power that would result from Villaraigosa allies in the city attorney and city controller offices would lead you even closer to that conclusion.

Yet among the morass, there are some very earnest public servants trying to manage a very unwieldy city, with a host of unique problems and challenges that would vex any lawmaking body on Earth.  Set aside this year’s $1 billion dollar budget; the problems of immigration, gang violence, income inequality, traffic, health care, air pollution, education, and much, much more all converge in this city.  From 10,000 feet these problems look intractable, and yet there are gradual, slow steps toward mitigation, and even areas where Los Angeles is a national model.  The sales tax receipts from Measure R may finally bring sustainable transit infrastructure to fruition for more than a handful of the city’s residents.  The Green Trucks Program is an innovative, first-in-the-nation effort to bring labor and environmental groups together to reduce pollution, create living wage jobs and help save the planet.  And the city’s Green Jobs Training program is seen as so potentially game-changing that it was used as a model in a White House staff report from their Middle Class Task Force:

The City of Los Angeles has undertaken or is in the midst of undertaking several initiatives that, together, begin to constitute a model for how cities can maximize the benefits of “going green” for working families.  As is often the case, necessity was the mother of policy innovation.  A few years ago, the city faced a number of stark challenges including: a state renewable energy mandate (a statewide “portfolio standard” requiring 20% renewable energy by 2017) and a state cap on greenhouse gas emissions; an impending shortage of skilled construction workers; entrenched poverty and joblessness in many low-income neighborhoods; and toxic levels of diesel pollution that were imposing huge health costs and blocking the growth of the nation’s largest port complex.  

In the past year, Los Angeles has adopted a comprehensive approach to redevelopment which will ensure that city-subsidized development projects are built green and serve as vehicles for moving low-income residents into middle-class construction careers.  The Port of Los Angeles has also begun to implement a comprehensive solution to freight-related air pollution that will increase efficiency, enhance security, and improve work conditions and living standards for port truck drivers.  Most important is the fact that these initiatives are being undertaken on a large scale: the city’s construction policy is expected to impact 15,000 jobs over five years while the Clean Trucks Program (discussed below) could affect as many as 16,000 port truck drivers.

In 2008, the City of Los Angeles Community Redevelopment Agency (CRA) adopted a landmark policy designed to protect the environment, safeguard the interests of taxpayers, and ensure that city-supported projects create good construction jobs and career pathways for city residents.  The Construction Careers and Project Stabilization Policy establishes minimum labor standards and a process for avoiding labor disruptions by means of a master agreement between the CRA and local building trades unions.  The policy requires participating contractors and unions to make construction job opportunities available to local residents, including individuals who face barriers to employment such as a criminal record or a limited education.

The policy is being implemented alongside a requirement that large subsidized projects meet the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) standards.  In this way, city leaders have begun to lay the foundations for building a green-collar construction workforce in Los Angeles.  The UCLA Center for Labor Research and Education projects that the policy will make at least 5,000 apprentice-level construction jobs available to residents of neighborhoods with high levels of unemployment over the next five years.  At least 1,500 jobs are expected to go to individuals who might otherwise remain homeless, unemployed, dependent on welfare programs, or caught up in the criminal justice system.  But the most important result of the Construction Careers policy will be to leverage public investments in economic development to turn short-term jobs into long-term careers in the construction industry.

I wish there was more structural accountability in Los Angeles, from the Mayor on down.  I wish the city wasn’t so dominated by big-city machine politics and red-letter projects that often fail to follow through on their promise.  And where criticism is warranted, I’m sure to be first in line.  But Los Angeles is a very complex and hard-to-pigeonhole place, and that is true of its politics as well.

May 19 Special Gets Field Polled

A Field Poll released today shows support for 6 items on the May 19 statewide ballot (they neglected to poll the new and improved Prop. 13, which deals with prohibiting seismically retrofitted buildings from being classified as “new construction” for property value purposes, and will also be on the ballot).  These are baseline numbers, as the awareness of the election is low and the turnout model is unclear.  But I think we can conclude that this initial support is in no way firm, and at least two items are in peril.  Here are the raw numbers:

Proposition 1A (Spending cap/tax extension)

Registered voters

Yes: 54 percent, No: 24

Likely voters in May special election

Yes: 57, No: 21

Proposition 1B (Education funding)

Registered voters

Yes: 59, No: 27

Likely voters

Yes: 53, No: 30

Proposition 1C (Lottery)

Registered voters

Yes: 48, No: 37

Likely voters

Yes: 47, No: 39

Proposition 1D (Early childhood services funding (Prop. 10))

Registered voters

Yes: 62, No: 20

Likely voters

Yes: 54, No: 24

Proposition 1E (Mental health funding(Prop. 63))

Registered voters

Yes: 61, No: 23

Likely voters

Yes: 57, No: 23

Proposition 1F (No raises for officials in deficit years)

Registered voters

Yes: 74, No: 17

Likely voters

Yes: 77, No: 13

The softest support is for Prop. 1C, the measure to sell the lottery, cashing in now to fill a budget hole in exchange for a long-term revenue loss.  That’s under 50% and could easily be tipped over if a No campaign explained that this will hurt long-term future revenues.  A loss on this measure would put a $5 billion dollar hole in the signed budget that would have to be dealt with by June 15.

Most interesting is the case of Prop. 1A, the spending cap.  The ballot language is going to be crucial here.

when told that the “rainy-day” measure, Proposition 1A, triggers as much as $16 billion in higher taxes through 2013, four out of 10 initial supporters said they were less inclined to vote for the measure, particularly Republicans and fiscal conservatives.

“I’d vote ‘no’ on that,” said William Tate, 49, a South Lake Tahoe voter who said he’d support Proposition 1A before learning of the taxes. “They should just save some money and put it in a ‘rainy-day fund’ without taxing people. We’ve got too much bureaucracy in this state.”

This of course is an expression of magic pixie-fairy Santa Claus conservatism at its worst, but there’s no doubt that a sliver of the electorate will view things this way.  And unlike other potential ballot measures around taxes, this is very tangible (your taxes will go up X) and there’s no counter-argument of what voters are getting in return.  In fact, they’re getting an unpalatable spending cap that would ratchet down state services and tie the baseline to a budget put together during the worst economic crisis since the Depression.  There’s something for pretty much everyone to hate in Prop.1A, and the construction of it was a pure play to keep interest groups on the sidelines, and just to make sure no mere voter knows about it, they hid the truth from the ballot language.

When the Legislature places a measure on the ballot, however, it often bypasses the attorney general by specifying the ballot title and even indirectly designating those who write ballot pamphlet arguments. In other words, the Legislature, in league with the governor, tries to fix the election by fixing how measures are portrayed.

Cases in point are the six measures that the Legislature and Gov. Arnold Schwarzenegger are asking voters to approve in a hurry-up May 19 special election to implement much of their state budget deal.

The most important of the measures, Proposition 1A, would create a state spending limit and direct excess revenue into a “rainy day” account to be used when the economy and state revenue dip. But a very important provision of the package is that billions of dollars in new taxes would be short-circuited if Proposition 1A is rejected.

That “poison pill” is designed to discourage unions and other left-of-center groups – which despise state spending limits – from campaigning actively against the measure. But it indirectly gives conservative anti-tax groups, which despise the new levies, a potential weapon.

Voters won’t be told any of that in the official title written by the Legislature, which reads this way: “RAINY DAY BUDGET STABILIZATION FUND. Reforms the budget process. Limits future deficits and overspending by increasing the size of the state ‘rainy day’ fund and requiring above-average revenues to be deposited into it, for use during economic downturns.”

That’s misleading on a whole host of fronts, not just on taxes but on the role of the spending cap.  Our friend Anthony Wright at Health Access is teaming with the Howard Jarvis Association to file a lawsuit to overturn the ballot title and summary.  The question is whether the larger groups will jump into the fray.  That the legislature allowed this subterfuge can only empower the argument that they are trying to stealth tax everyone and will hurt future efforts at reform.  It may well cause someone like a Meg Whitman with designs on the Governor’s mansion to spend some of her fortune to beat it, and given that support drops from 57% to 34% at the mere mention of the tax issue (and particularly how its hidden from view), it wouldn’t take that much.  With progressives like Loni Hancock committed to killing the spending cap, this could be a strange bedfellows election.

Top-Down Grassroots Leaders Decide Unilaterally To Make Budget Reform More Impossible

Since it’s Don’t Curse Week here in LA County, I will be forced to be brief.  Last night a group of grassroots activists, including remnants of the Obama organizers in California, various progressive advocacy groups, and Democratic Club leaders, discussed a potential citizen-led ballot initiative to reform the California budget process.  Nobody disputes that something drastic must be done to permanently end the conservative veto and restore democracy to the process.  If you ask 100 activists what needs to be done you will get 105 answers.  Arriving at the conclusion that offers the best opportunity for success, both in being adopted as a reform by the voters and as a practical matter for the legislature, ought to be opened to a vigorous debate and a deliberative process.

That is the direct opposite of what happened yesterday, when a group of self-appointed leaders tried to dictate the form in which the reform will take, and sought to invite the remainder of the group to join their already-decided-upon course of action.  So the fight to restore democracy has begun with an undemocratic edict, from the grassroots no less, that is based in the same kind of mushy, don’t-make-waves approach that has devastated the state for decades upon decades.  If it sounds topsy-turvy, you’re not alone.

In short, the self-appointed leadership has decided to put up a website to “eliminate the two-thirds rule” and “restore majority rule” to the budget process.  This is a very tightly controlled statement based on, essentially, the fiction that eliminating the two-thirds rule is what these folks are seeking to do.  They are not.  As you may know, there is a 2/3 rule for passing a budget, and a 2/3 rule for any changes in the tax code that involve increasing revenue.  To the layman, this might seem like two discrete parts, but that’s really not true.  A budget includes taxes, spending, and a few other priorities.  Changing one without the other does actually nothing to overcome the conservative veto.  And yet this is what the self-appointed grassroots leadership’s proposal would do, only covering the repeal of 2/3 for passing a budget and not for taxation.

This is really the final blow in what was a long slide away from progressive leadership at the grassroots level.  I’ve heard a lot of justifications and rationales for not including fully half of the equation of settling a budget in the process of reforming the budget, most of them so twisted with pretzel logic as to be indecipherable.  Some say that there’s no way tax changes could pass in the current environment, so we should strive to make whatever progress we can.  That’s the kind of tissue-soft, gutless, out-of-touch-with-where-America-is-right-now statement that has made California a political basket case.  Those who bow down to the keepers of the tax revolt are usually the same people that are saying a spending cap that includes tax increases is destined to pass, or the same people saying a constitutional convention will take care of the tax problem even though it, too, is subject to a vote of the people.  It doesn’t make any sense.  There’s an argument that the polling shows any tax issues are a loser.  That’s just not true.  The latest PPIC poll shows very little difference between repealing two-thirds for the budget and for taxes – within the margin of error.

The other argument is that California lawmakers, given a majority vote on the budget, will have powerful leverage to bend the Yacht Party to their will on tax issues, or go directly to the people with tax solutions.  These are the same people who spend every day of their lives lamenting the terrible negotiating skills of Democrats in the legislature, and laughing at those who claim the Yacht Party is surely just a little bit more pressure away from folding.

I’ve made my position on this well-known, and I’ll repeat it here.

Changing the (repeal of 2/3 for the) budget but not taxes is TOM MCCLINTOCK’S view of things.  It makes Democrats own a budget that can only be modified with expenditure cuts.  In the event of a deficit, Democrats would have to either cave and cut services or hold out with the exact same dynamic that we saw this year.  And it will not allow the legislature to tackle the structural revenue gap that comes from a tax system too closely tied to boom-and-bust budget cycles.  This is perverse consultant-class thinking that is dangerously outdated, constantly compromising, and believes in political reality as static rather than lifting a finger to change that reality.  Thinking that March 2004 and June 2010 are the same is just ridiculous, and thinking that no argument can be made to the public, after the longest and most self-evidently absurd budget process in decades, that the system is fundamentally broken and has to be changed to allow the majority to do their job, is in many ways why we’re in this position to begin with.

And this is where the self-appointed grassroots leadership will take us.  This was carried out through perhaps a deliberative internal process (“Several hours!” we were told), but with no input from the broader grassroots.  The website set up has no ability for public comment, no discussion of why the position was taken, and, most crucially, no explanation that “restoring majority rule” as conceived by the proposed ballot initiative does not restore majority rule.  You can call that a lot of things, but the most accurate would be “a lie.”  It is a lie to suggest that this proposal would repeal 2/3.  It does not.  And it is being carried out in a top-down process that reminds one of the worst aspects of the Sacramento consultocracy rather than progressive leadership in the grassroots.

The working theory is that everything is on the table and this effort is initially to gauge support in the process.  That it is being done through misleading means really doesn’t inspire confidence in how open the process will be.  They can go down that road, and I actually support signing on to the site as a show of support.  But caveat emptor.  And if you do sign, maybe contact the leaders and ask them why they aren’t being truthful about their intentions or transparent about the decision-making process.

Ellen Tauscher’s Insatiable Appetite For More Homeless People

Late last week, Democrats temporarily shelved a bill that would allow bankruptcy judges to modify the terms of mortgages on primary residences (also known as “cram-down”).  Moderates who put the hold on this legislation, particularly former Wall Street investor Ellen Tauscher, crowed about it to the media.

This hardly amounts to a breakthrough win for party moderates – or a major concession by the speaker. But it was a consequential moment in the minds of moderate leaders who often find themselves marginalized in a caucus dominated by liberals.

“It shows we have bench strength, and it shows we can flex,” said California Rep. Ellen O. Tauscher, who chairs the New Democrat Coalition and played a central role in negotiations over the bankruptcy bill […]

Moderates worry Pelosi is routinely staking very liberal positions to push House versions of big bills as far to the left as possible to enhance their standing in negotiations with the historically centrist Senate. This might be a smart tactic, but it often hurts Democrats who rely on Republican votes to win reelection. Put bluntly, it makes them look too liberal […]

That prompted lawmakers, like Tauscher, to limit the scope of the bankruptcy bill as much as possible, even though this measure is only loosely related to the president’s broader proposal.

Tauscher’s New Democrat Coalition teamed with their natural allies in the Blue Dog Coalition to impose 10 significant changes, including requirements that bankruptcy judges use federal guidelines to determine the fair market value of a home and that modified loans must be “unaffordable and not just underwater” to prevent wealthy homeowners from taking advantage of the process, according to a widely distributed e-mail from Adam Pase, executive director of the New Democrat Coalition.

This, of course, angered some liberals. “The New Dems’ position is the banks’ position,” a senior Democratic aide involved in the bankruptcy negotiations complained on Friday. “New Democrats are shills for the banks.”

It’s confounding that any New Democrat thinks their constituents give a ring-a-ding about banking industry concerns, and are not in fact the very people struggling to keep their homes that this legislation would help.

More, including Tauscher staffers lying to bloggers, on the flip…

When Chris Bowers used Tauscher as the face of the moderate backlash against working people facing foreclosure, her office responded by saying they supported the rule on the bill (HR 1106), and that their changes would “strengthen” the bill, and that they didn’t meet with anyone in the financial services industry about it.  But David Waldman explains why that, simply put, is a crock – she voted for the rule because it incorporated the changes she wanted to make.  And if that was the only hurdle, why didn’t the legislation get a vote last week?

Now, that amendment was approved by the Rules Committee last Wednesday night, the 25th of February, and the rule was adopted on Thursday morning, the 26th. That locked in place that the voting on the bill would include a vote on an amendment incorporating Tauscher’s list of changes.

So why, if she supports the bill, would work on it be suspended on the afternoon of Thursday, the 26th? She “supports the bill,” and voted for the rule that locked in a shot at making the changes she proposed to the Judiciary Committee, and yet here we are, waiting over the weekend for… what, exactly?

Ellen Tauscher supported the rule because it made an amendment in order that would incorporate her list of demands. That’s all. But she must clearly want more changes, because even after winning these concessions, the bill is still stalled, and the news reports on the stall have Tauscher’s name all over them.

Jane Hamsher has a lot more on Tauscher, who is clearly putting banking industry interests ahead of her constituents’.  She doesn’t have to necessarily talk to anyone in the financial services industry personally, because Adam Pase, the chairman of the New Dmocrats, works out of her office:

Pase is is a former lobbyist for the Twenty First Century Group, whose client, the Coalition for Fair & Affordable Lending, is an astroturf group, financed by the banking industry, that lobbied on behalf of. . . you guessed it. . . sub-prime lenders. Contrary to what you might hear on Morning Joe, it was national civil rights leaders who joined together to fight the Coalition’s predatory lenders as they tried to pass the Ney-Kanjorski bill, which would have enabled banks to get around predatory lending laws and make more bad loans. This they justified based on the oh-so-high-minded need to provide loans to low income and minority borrowers. It was true scumbaggery.

Pase was also the senior policy adviser for Dennis Moore when Moore organized Blue Dogs to oppose mortgage write-downs on behalf of the banking industry in 2007, and he is evidently the one driving policy on this one for the New Dems. But one has to wonder — what is Tauscher thinking? Her district is one of the hardest hit by the mortgage crisis, as you can see from the map. Why is she trying to limit mortgage write-downs to subprime loans only, on behalf of banks, when every foreclosure brings down the value of all houses in a neighborhood? Her claim to care so very much about people still struggling to pay their mortgages rings hollow.

Shaun Donovan, the HUD Secretary, is headed to the House today to whip support for the bill.  This legislation would save perhaps 800,000 families from foreclosure without one penny of cost to the taxpayer.  All the bill would do is give leverage to homeowners who have been screwed by their lenders at practically every step of this process.

Homeowners burned by Blue Dogs and New Dems like Tauscher are not likely to forget the treachery.  Firedoglake has some action items.

We’re asking you to do two things:

Write a letter to the editor of your local papers (just enter your zip code) saying you expect your Member of Congress to represent you, not the banks, and you’ll be watching to see if they oppose Tauscher and her bank lobbyist cronies.

Sign a petition to Nancy Pelosi telling her not to “buckle” to pressure from bank lobbyists working through greedy corporatist Members of Congress, and to act swiftly to give judges the authority they need to write down mortgages.  The banks must take responsibility for their own bad judgment; taxpayers shouldn’t be expected to pick up the tab.

These same people killed efforts in 2007 to allow bankruptcy judges to write down mortgages at that time, which could have helped us from ever getting to this place.  It’s time they stop pretending that they care about their constituents when they’re only being tools of the banking lobby.

I think it’s more about telling Pelosi we’ll have her back if she stands up to these cretins.  You know what to do.