All posts by Brian Leubitz

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Just how Badly does the Chamber want to Wreck California? $3,337,323 Bad

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EntityPro 26 $
California Chamber of Commerce $3,337,323  
Chevron Corporation $2,500,000
Small Business Action Committee $1,350,000
American Beverage Association $750,000
Anheuser-Busch Companies, Inc. $625,000
ConocoPhillips $525,000
Philip Morris USA Inc. $500,000
MillerCoors $350,000
Occidental Petroleum $250,000
Wine Institute $225,593
The Chamber of Commerce is pretty cool with a dysfunctional government. They don’t want laws to pass, and lord knows they don’t want to have to pay for a damn thing, even when they are responsible for those costs.  Take Prop 26, it would require that fees that are related to the industries on which they are imposed be passed by a 2/3 majority.  And, as we know, it’s not like any Republicans are going to vote for anything that brings in revenue to the state, no matter how reasonable or tied to the industry.

So these numbers shouldn’t surprise anybody.  Who is fighting these measures, members of industries that push their costs off on to the state.  Chevron? Yeah, they’re staying out of Prop 23, but they are up to their necks in this one. And look at that, the adult beverage industry seems to be very excited about this measure. Why’s that, do you think? Oh, could it be that the costs associated with drunk driving are also pushed off onto the state?

Prop 26 would be a disaster for the state, but wonderful for these companies bottom lines.  We better hope that the voters see through this naked power grab.

UPDATE: I should point out that the Yes on 26 campaign shares an account with No on 25. So, this money is also going to defeat majority vote on budget.

Arnold Schwarzenegger, Budget

Steinberg to Seek Reversal of Attack on California’s Needy

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While it isn’t likely that the Legislature will be able to come up with the 2/3, Steinberg is hoping to wait out Gov. Schwarzenegger:

Senate President Pro Tem Darrell Steinberg  will try to reverse Gov. Arnold Schwarzenegger’s line-item budget vetoes when the next legislative session begins in December, according to his spokeswoman, Alicia Trost. …

Steinberg’s strategy does not rely on overriding the line-item vetoes, which would take a two-thirds vote of the Legislature. Instead, it seems that Steinberg intends to ask Democrats to reauthorize spending for the programs slashed by the governor.

It’s unclear to what extent Steinberg’s plan relies upon passage of Proposition 25, which would reduce the state’s budget requirement of a supermajority vote to a majority vote. Even without passage of Proposition 25, lawmakers could appropriate funds for education on a majority vote – including the $256 million in child care funds that Schwarzenegger vetoed.(SacBee)

Schwarzenegger went behind the back of the Legislature and blue penciled cuts that he knew the Democrats could not abide.  Now we need to ensure that Brown wins, but one hopes that he would be amenable to these programs.

Arnold Schwarzenegger, Budget

The $1 Billion Attack on California’s Most Vulnerable

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After the budget deal was done, Arnold reached for his blue pencil.  The blue pencil was not kind to California, and for some it meant the difference between getting back on their feet, and struggling to survive…or worse.

The list of whom the $1b in cuts attacks reads like a who’s who of the most vulnerable Californians.  Foster children, the disabled, AIDS patients, struggling working families, you name it, Arnold attacked.

Schwarzenegger sliced $962 million from the spending plan sent to him by the Legislature 100 days after the start of the fiscal year July 1.

In most cases, the governor explained his line-item vetoes with boilerplate language saying the cuts were necessary to “help bring ongoing expenditures in line with existing resources and to build a prudent reserve.” In some cases Schwarzenegger pointed out that alternative funding might be available to blunt the effect of his reductions, or suggested that California will seek federal money to offset the loss of state dollars.

But those explanations did not satisfy the governor’s many critics, some of whom felt betrayed by his actions.

Sarah Jimenez, communications director for the County Welfare Directors Association, released a statement from the group calling Schwarzenegger a “hypocrite.” She noted that just last week, the governor signed Assembly Bill 12, a bill extending services to youth in foster care until age 21, and spoke about his commitment to children.(Healthy Cal)

While Schwarzenegger points out that many of these cuts may be offset by other sources of revenue, many will not. CalWORKS has now been cut to a hollow shell of its former self.  It was once a model for the type of welfare reform that the neoliberals, Clinton and many Republicans, said they could support.  Now that the Right has moved far to the right of their 1980s counterparts, that is completely out of fashion.  That it was successful at both stabilizing families and getting members of the community back into the work force seems to be secondary at this point.

Foster children will continue to be left for the most part to fend for themselves as they age out of the system, and AIDS patients have to hope that pharma wants to continue to get the federal match.  It’s government by hope and prayer, not a productive system for sustainable government.

Budget

Budget Deal is Done… For Now

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Change Amount
Expenditure Reductions $7.4 billion*
Federal Funds $5.4 billion
Additional Revenues $2.4 billion
Fund Shifts(Other Revenues) $2.8 billion
Alternative Funding $0.5 billion
Baseline Workload Adjustments $-0.3 billion
Total Solution $18.2 billion
Final Reserve $0.2 billion
We have a “deal”, but let’s face it, this budget isn’t going to last us the entire fiscal year. Both candidates for governor understand that, Schwarzenegger knows that, and basically everybody in the process knows that.  It’s optimistic at best, delusional at worst.  

The amount of federal funds expected, given the current climate lies at the center of that. Should we get that much money. Yes, much of it is already owed, money that we had to spend.  Other is money that the federal government, if they had any sense, would make a priority in the budget.  But one thing that is clear for the world to see, is that right now, sense isn’t really all that common.  Fear, paranoia, that there is plenty of.  Sense? Well, that seems to abandon DC around the time of elections.

That being said, what we’ve got is a budget that bides its time for a winner in the Governor’s race.  If Jerry Brown wins, there will be renewed momentum to at least stabilize the losses by working with the Legislature to find some solutions.  If Whitman wins, well, apparently she doesn’t want to run a functioning government and intends to fire anybody that crosses her path.

One thing to note, is that with the Governor’s public commitment to higher education, there were no cuts in that area, and even a smidgen of a boost in funding.  K12 can’t say the same thing, however.

In the photos, I’ve seen from the Capitol, Sen. Steinberg looks like a man who has just emerged from a scene in one of Arnold Schwarzenegger’s movies.

“This budget is a product of the most severe economic crisis we have faced in decades,” Steinberg said.  “While this year’s budget agreement includes billions in painful and difficult cuts, it also recognizes that our future economic success depends upon maintaining key investments in our people and our state.  I am pleased we were able to maintain the level of education funding we did, minimize cuts to vital services, achieve collectively bargained agreements and accomplish some key reforms.”

In May of this year, the Governor identified a General Fund budget shortfall of $17.9 billion.  The budget approved today enacts approximately $18.2 billion in General Fund solutions to close the gap, and provides a final reserve of approximately $200 million.  But, in the end, this is just a respite from the budget fight.  It will simmer until the election is over, and then we’ll be right back here. Fighting over what exactly we want our government to do, or in the case of Republicans, how exactly we want to dismantle it.

You’ll find a breakdown of the cuts over the flip.

































Cut Amount
Prop 98 (K-14 $3.1 billion
Higher Education $0.2 billion
Health & Human Services $0.9 billion
Corrections $1.1 billion
Employee Compensation $1.5 billion
Other cuts $0.5 billion
Total $7.4 billion

 

Arnold Schwarzenegger, Budget

SEIU Local 1000 Agrees to Deal with Schwarzenegger

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In an ideal world, labor wouldn’t have to spend their negotiations on the subject of givebacks of gains they have made in the past. But, this is far from an ideal world, and labor has been up against the wall to do just that.  However, for far too long the Governor has declined to negotiate in good faith, instead unilaterally declaring furlough days and otherwise attacking state workers.

But, of course, there is that first way. You know, where labor and the administration work cooperatively towards a shared goal of a functioning state government.  And while this isn’t necessarily the vision of a functioning government that we would like to see, at least there was some cooperation:

The contract includes a one-day-a-month “personal leave program” that amounts to a 5% pay cut for the union’s 95,000 members in the first year. It also lowers the pension levels for future employees and requires current workers to contribute an additional 3% toward their retirement.

Union workers would be exempt from furloughs or being paid minimum wage during any future budget impasses.

“This was a hard-fought negotiation but we proved that collective bargaining works,” SEIU Local 1000 President Yvonne Walker said in a prepared statement. “We reached an agreement that helps the state maintain services, during this unprecedented fiscal crisis, while providing stability for our members.” (LA Times)

The deal lasts for three years, and will clear up one of the bigger remaining sticking points for the budget approval process.

Jerry Brown

Bill Clinton’s Swing Through California

President Clinton is going to be making a swing through California to do some fundraisers and a pair of rallies for Gavin Newsom and Jerry Brown.  The CDP has the deets on the two rallies, and you can sign up at:

www.cadem.org/ClintonVote2010Rallies

Let’s get together to make some noise and spread the word about how important it is that every Democrat vote. Whether you vote by mail this month or if you come out to the polls on November 2 – we need your vote.

LOS ANGELES

Friday, October 15 – Doors open at 6:00 p.m.

UCLA – Dickson Court (outdoor location), Charles E. Young Drive and Dickson Court, Los Angeles, 90084

SAN JOSE

Sunday, October 17 – Doors open at 7:00 p.m.

San Jose State University – Event Center (indoor arena), 290 South 7th Street, San José, 95192

The Big Dog always makes for an entertaining evening, so be sure to sign up ASAP! Bonus good seats if you make some phone calls beforehand.

Budget

A Budget for the Dreamers and the Sleepers

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Some additional details have been released about the budget deal that the Legislative leaders have cobbled together through a report released by the Senate today. (PDF here) My title here signifies a few things. First, that the budget is pretty optimistic for the amount of money it expects from the federal government.  But beyond the great big sense of hope, this budget is basically something that you’d expect to see out of a Republican dream list.

Under the plan, current state employees would have their pay cut, contribute more to their pension plan and would be subjected to a payroll freeze. The combination would save the state $1.5 billion this year, the report says.

Lawmakers also would suspend the state’s education-funding guarantee, lowering school spending by $3 billion. But more than half of that cutback would be an accounting move, simply deferring payment of some school bills until the following fiscal year.

The eight-page conference report does not detail all the proposed cuts in the plan. But California’s in-home healthcare program for the elderly, blind and disabled would shrink by 3.6%, the document says. Child-care services provided by the state would be trimmed by $48 million. (LA Times)

This is hardly something to be proud of. It’s a budget, I suppose, and given the 2/3 requirements, this is what you expect.  But this budget will continue the state on a path down the road of fewer services, less investment in the future, and a bleak outlook. There is no winner in this, save those who want to push the state over the cliff.

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CA-AG: Debate at Noon Between Harris and Cooley

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UC-Davis will be hosting a debate between Attorney General candidates Steve Cooley and Kamala Harris.  As you may know, I’m on the Harris campaign, but I think the debate will be interesting even without that fact.  A recent poll showed Harris with a lead within the margin, and that’s pretty much where the race has been throughout.

But for those of you that haven’t been following the race all that closely, let me give you a progressive perspective on the race in a tweet worthy form:

Noon: CA-AG Debate http://twt.mx/R9VE GOP Cooley will defend prop 8, no position on 23, & wants to sue over health care. Vote @kamalaharris

Of course, there is a lot about SF DA Kamala Harris that I couldn’t get in there. Like her work to keep elementary school kids in school, and her work to reduce the recidivism rate by working with the business and labor communities to get young non-violent first time offenders the education and opportunities they need to get a good job.

But, watch the debate, as it will be live streamed and find out more about the candidates.