All posts by Brian Leubitz

Tim Draper Submits Six Californias Ballot Measure Signatures

Measure splitting the state looks set to appear on ballot

by Brian Leubitz

I’ll admit that I sort of thought this was some sort of joke that would never make it to the ballot. I was surprised when word filtered out that serious signature gathering was moving forward in the spring and summer. Apparently that has now borne fruit:

Tim Draper said he will file the signatures in Sacramento on Tuesday morning. State officials still need to review the petitions to ensure the initiative can qualify.

“California needs a reboot,” Draper’s campaign said in a statement on Monday. “With six Californias, we can refresh our government.” (LA Times)

Well, he’s got the awkward technology lingo thing going on, but just because you can say “reboot” doesn’t mean it is a good idea. An LAO report from earlier in the year showed a bunch of flaws in the proposal including higher costs and greater inequalities. Yes, Silicon Valley would be a dynamic and wealthy state, but what about the rest of the state(s)?

And then there is the whole question of this being entirely powerless until Congress acts. With the Senate divided, would either party want to roll the dice on 10 new Senators?

In the end, Draper will spend his few millions on this, the state will pay to count these votes, and not much will happen.

General Fund Ends Fiscal Year with Positive Cash Balance!

Controller John ChiangMilestone follows budget stability since 2012.

by Brian Leubitz

It’s been a long time, but we did it! Positive cash!

State Controller John Chiang today released his monthly cash report for the month of June, and announced that the state’s General Fund — the primary account from which California funds its day-to-day operations and programs — ended the fiscal year with a positive cash balance for the first time since June 30, 2007. A positive cash balance means that the state had funds available to meet all of its payment obligations without needing to borrow from Wall Street or the $23.8 billion available in its more than 700 internal special funds and accounts.

Now, this is more of a symbolic milestone than anything else. The Controller can shift money around so that there isn’t a huge cost to the taxpayers of having a general fund deficit on one particular day. And the close of a fiscal year isn’t really that much different than any other day.

That being said, this still speaks volumes about where we have come from over the past two years. Since the majority vote budget rules and the Prop 30 tax increases passed, we are on solid footing. We still need to do more to focus on what comes next when the Prop 30 taxes expire, as a simple expiration would just put us back to the boom/bust cycle that we’ve seen for the last 20 years.

But for today, hooray!

SF/LA Look towards $15 Minimum Wage

California Cities look to follow Seattle’s lead

by Brian Leubitz

San Francisco voters will have a chance to vote on a $15 minimum wage proposal this November in a gradually increasing wage compromise announced last month:

The mayor, city supervisors and business and labor leaders came together on the compromise – even the Chamber of Commerce was on hand – but service industry representatives warned the plan would be hard on restaurants and other hospitality-related businesses.

The compromise announced at City Hall would increase the city’s current hourly base pay, $10.74, to $12.25 next May 1, then to $13 in July 2016 and $1 each subsequent year until it reaches $15 in 2018. That would bring the annual pay for a full-time minimum-wage worker to $31,000. (SF Chronicle)

Meanwhile, in Los Angeles, unions are working to get a requirement of a $15 minimum wage for city contractors:

Currently, Los Angeles has a living wage ordinance that requires that city contractors pay at least $12.28 per hour without health benefits, or slightly less with health benefits, according to its Bureau of Contract Administration website.

The Coalition of LA City Unions, which includes unions representing more than half of city workers, wants to raise that minimum to $15, Chairwoman Cheryl Parisi said Tuesday. It also wants to set the same bar for city employees.(LA Times)

Now, both of these proposals are not nearly as dramatic as some in the social justice movement would like. There is concern on the lower end of the labor market that some employees could be squeezed out. However, the data on these questions is very mixed, and in fact shows no statistical proof that minimum wage. As you can see from the chart to the right, all of the studies basically say that there will be very little economic impact. It may confound many of the free-market people, but data is data.

Seattle is facing its own hurdles in implementing the $15 minimum wage, with recent news that some business interests have filed signatures to put the measure to a referendum.

Betty Yee Finishes 2nd, Faces Swearingen in November

Yee defeats former Speaker John Pérez

by Brian Leubitz

Maybe you see races decided by 484 votes for some City Council races, or in some some states in exceptionally close elections. But in a California statewide election? That razor’s edge is extremely rare:

A month after the primary election, Democrat Betty Yee finished 484 votes ahead of John A. Pérez for second-place in the state controller’s race, officials announced Monday.

Lake County Registrar Diane Fridley used nearly all of her allotted 28 days to certify the results in the down-ballot contest that sparked a daily ritual of political junkies refreshing their web browsers. (SacBee)

Just how close is that? It is 12 thousandths of a percent of the vote total.   Or approximately the same as the vote difference in Florida in 2000 (percentage wise).

Pérez can seek recounts of specific precincts, but there is always the risk of going the other way. There is no guarantee of picking up votes in any one precinct. Because Lake County took so much time, there is a limited decision period for Pérez to decide if he wants to seek that recount. But as of right now, Betty Yee looks to be the favorite over Fresno Mayor Ashley Swearingen in November.

Gay Conversion Therapy Ban Upheld

Supreme Court declines review of gay treatment ban

by Brian Leubitz

While there was some very disappointing news coming out of the Supreme Court today, there was some positive as well:

The justices on Monday let stand an appeals court ruling that said the state’s ban on so-called conversion therapy for minors doesn’t violate the free speech rights of licensed counselors and patients seeking treatment.

The 9th U.S. Circuit Court of Appeals ruled last year that California lawmakers properly showed that efforts to change sexual orientation were outside the scientific mainstream and have been rejected for good reason.(SacBee)

This is very good news for teenagers that had been subjected to the harmful practice. It has no basis in anything resembling science, gives credibility to homophobes, and can irreparably damage the self-esteem of its victims.

In short, there is clear evidence that reparative therapy does not work, and some significant evidence that it is also harmful to LGBT people.

In contrast, there is ample evidence that societal prejudice causes significant medical, psychological and other harms to LGBT people. (HRC)

As you can see from the statistics in the image to the right, LGBT youth face many challenges already. There is no place for this practice in anything resembling a medical setting, and it should never be forced upon children. This ban is a big step forward in the fight against homophobia.

Yee and Pérez still waiting on Lake County

Lake County holds the last remaining uncounted ballots.

by Brian Leubitz

UPDATE June 30: Lake County News has an update:

The Board of Supervisors will meet in a special evening session next Tuesday to take up, among other things, the final canvass for the June 3 election. The board will meet beginning at 6 p.m. Tuesday, July 1 … Registrar of Voters Diane Fridley has until 5 p.m. Tuesday to complete the count, according to the Secretary of State’s Office.

Fridley’s office is the last of the 58 county election offices statewide to complete the final count for the June 3 primary, according to the unprocessed ballot posted by the California Secretary of State’s Office on Friday.

Maybe tomorrow we’ll have an idea of what is going on in Lake County for those last 6,000+ ballots.

The Controller’s race is now sitting at a 861 vote lead for BoE member Betty Yee over former Speaker John Pérez. And the only remaining outstanding mail-in ballots come from Lake County:

But before any decisions are made on a possible recount, there are about 6,000 ballots to count in Lake County, where Pérez outpolled Yee by about seven percentage points in election day results. Diane Fridley, the Lake County registrar, said Tuesday that the office plans to process 5,263 vote-by-mail ballots Thursday morning and will sometime later deal with 743 provisional and 47 damaged ballots. The office will finish its work no later than next Tuesday’s deadline, said Fridley, who is on light duty following surgery and has only a skeleton staff to help with the ballot work.

Fridley said it’s the first time in her 36 years at the office that any statewide race could come down to Lake County. Both campaigns have been in touch and plan to have representatives in her Lakeport office on Thursday.

“We’re working as fast as we can,” she said.(SacBee)

It does seem a bit odd that Lake County is now the focus, but we are still waiting on those results. In the results previously announced in that county, Pérez and Republican David Evans basically tied with 2326 and 2325 votes. Yee trailed behind with 1662 and Swearingen with 1134. If the proportions are the same with those 5,263 votes, Pérez (and Evans) would pick up about 390 votes on Yee. That would still leave Yee ahead by over 400 votes.

But to be clear, this is an extraordinarily close race. In the end, it could come down to a few thousandths of a point. In an election with about 4 million votes, the odds of that happening are just mind-boggling.

Lake County said that they would be counting on Thursday, but no results have been released on the web yet. I’ll update this post if results are released

Field: Big Lead for Brown, Legislature’s Approval Slips Back

Field Poll shows Legislature took hit after recent controversy

by Brian Leubitz

Field is in the midst of their most recent data dump, and you can’t help but feel that Gov. Brown is all smiles. First, there’s the fact that he has a 20 point lead over Neel Kashkari

The results of the latest Field Poll show incumbent Democratic Governor Jerry Brown leading Republican challenger Neel Kashkari by twenty points, 52% to 32%, among likely voters in this year’s gubernatorial election.  … Brown is regarded favorably by 54% of likely voters, while 31% have an unfavorable opinion. Following his second place showing in the June primary, Kashkari is viewed favorably by 28%, while 16% of voters hold an unfavorable opinion of him.

In addition, the Poll finds 54% of voters approving of the job Brown is doing as governor, while 29% disapprove. (Field PDF)

The Governor’s approval rating during this term has been as low as 43%, before reaching a high of 59% in April of this year. While it did slip, when combined with his mound of campaign funds, the contest between Brown and Kashkari doesn’t really seem a fair fight. Barring some major shift of the political landscape, you have to feel that Brown should defeat Kashkari handily.

Now, on the other side, the Legislature was so close to actually having a net favorable rating. The institution’s ratings were trending up from a low of 19% in May 2012 before Prop 30. In December 2013, it hit 40% for the first time since 2002. In other words, a really long time. And then in the late March poll, approval was trending even higher, with a 46-40 split in the first few days of polling. Then the Leland Yee story broke, and the numbers fell back to earth.

Slightly more voters believe California is generally on the wrong track (46%) than say it is moving in the right direction (41%). In addition, more voters disapprove (47%) than approve (35%) of the job performance of the state legislature.

Opinions about both matters are directly related to the party registration of voters. Democrats offer a much more optimistic assessment of the direction of the state and hold more positive views of the job the state legislature is doing than Republicans. (Field PDF)

Still, this says a lot about the harmony of the post Prop 30 days. There are still budget fights, but they aren’t nearly as toxic as they once were. The majority vote budget means that the fights are basically all within the party. The scandal can’t help, but beyond a bad apple or two, this is a legislature that works for California.

With SF Ellis Act Bill dead, local housing advocates forced to look elsewhere

Ellis Act reform would have required waiting period before evictions

by Brian Leubitz

Well, after a lot of drama getting out of the Senate, the SF Ellis Act reform legislation died in the Assembly:

The Ellis Act reform bill introduced by Sen. Mark Leno, D-S.F., will not be moving forward this year, according to his office. The proposed legislation, Senate Bill 1439, sought to limit evictions in San Francisco by requiring new property owners to wait five years before invoking the Ellis Act, a state law that allows a landlord to evict their tenants if they intend to leave the rental business. …

“I am profoundly disappointed that the Assembly Housing Committee failed to pass critical legislation that would help mitigate the negative impacts of a recent surge in Ellis Act evictions in San Francisco,” said Leno in a statement following the Assembly Housing Committee vote. (SF Examiner)

The bill took a couple tries to get it through Assembly, and ultimately trying to make law for one county at the state level was just too high of a hurdle to clear. The bill only applied to SF because of the unique housing conditions, something of a perfect storm. Rising housing costs in both the rental and ownership markets, combined with a complicated rent control system leave a lot of loopholes to exploit and a lot of incentive to exploit them for speculators.

But ultimately, this was never any sort of silver bullet. It dealt with a small, but high-profile, loophole. San Francisco needs to look at a kitchen sink approach to try to bring housing costs under something resembling control, or the beautiful City by the Bay will lose the diversity that helped make it great.

The water bond and the tunnels

windlessWater bond still faces tunnel stumbling block

by Brian Leubitz

There is little disagreement that our water infrastructure needs some work. Across party lines and the north-south divide, there is a consensus that we need to invest in our water system. The amount of the bond package is still in dispute, but those are minor disagreements.

But the one big stumbling block are the twin tunnels that Gov. Brown wants to build to bring water to Southern California from the Delta. The administration released a report on the potential job gains from the project:

The study’s author, Dave Sunding, a UC Berkeley agricultural and resource economist, predicts that construction of what is called the Bay-Delta Conservation Project would create an average of about 15,500 jobs a year over a decade of construction and habitat restoration. Once built, the project to make water supplies more reliable would spur an additional estimated 19,600 jobs a year over 50 years, he said.

“In the short, medium and long range, the Bay Delta Conservation would provide economic benefits to California,” said Nancy Vogel, spokeswoman for the Department of Water Resources. “The plan is essentially an insurance policy against species extinction and inadequate water supplies.” (LA Times)

To call these figures controversial is a big understatement. The job figures are being called highly speculative, on both construction and the long-term prospects. The tunnels, which were rejected by the voters during Brown’s first stint as governor in the 80s, are back again with the same controversy. Like then, the questions of drought are still very much present. If our current drought continues, or another, more vicious dry spell hits, there simply won’t be any water there.

Sen. Lois Wolk, who represents much of the Delta has been trying to move past this issue, and is taking the right tack. She is working hard to get a water bond on the ballot without any sort of authorization for the tunnels. And in the NBCLA clip below the fold, this is what Sen. Steinberg is endorsing, and warning against a bond that includes them.

The tunnels are a big conversation of their own, and tying the bond up with that political melee could backfire at the ballot. But with the deadline for the ballot getting closer, we should have a resolution soon.

What does Kevin McCarthy’s Ascension Mean for California? HSR? Immigration?

Kevin McCarthy - CaricaturePotential new majority leader not normally in step with his home state’s leadership

Kevin McCarthy looks all but assured of assuming Eric Cantor’s old job as Majority Leader in the House. Raul Labrador is having troubles controlling his own state’s convention, let alone trying to wrangle votes for leadership, and there don’t appear to be any viable challengers. So, it appears that is just a matter of time until both the Majority and Minority Leaders are Californians.

Now, you might think that awesome for California. We’ll be flush with federal dollars for infrastructure and other development. Well, you may want to hold that thought. McCarthy is a Republican. In 2014. That means he must act like all federal programs are ridiculous and that states are awesome. Except California and our San Francisco values.

As I noted on the budget post below, McCarthy has been on the harshest HSR critics for years now. He does not like the project for a multitude of reasons. The cynical would say that it may have something to do with his overall chumminess with energy companies. And if you look at his energy policy, you won’t find too many disagreements with Big Oil. But if you ask him, it is about funding and protecting the California and federal budgets.

He aimed most of his ire at the bullet train project, which would receive $250 million in the next fiscal year and in subsequent years. The funds are 25% of revenues from the state’s cap-and-trade program, which collects fees on polluters.

“Time and again, the high-speed rail boondoggle has proven to be an unfeasible project that will put undue and damaging pressure on our state budget, ultimately hurting taxpayers,” McCarthy said in a statement. (LAT)

There area a multitude of other issues where he disagrees with a majority of the state. On water, he is hard-core in the agricultural corner, a stalwart for the farmers over fish people. And that isn’t really surprising considering his district. It is a strong GOP district, with Obama not managing to break 40% in either election.

But there are some other dynamics to his district. Check these demographics:

Race: 75.8% White, 6.8% Black, 5.2% Asian, 1.4% American Indian (National Percentages: 72.4% White, 12.6% Black, 4.8% Asian, 0.9% American Indian)

Ethnicity: 64.6% Non-Hispanic, 35.4% Hispanic (National Percentages: 83.6% Non-Hispanic, 16.4% Hispanic) (Politics USA)

McCarthy has never been hard line anti-immigrant. To be honest, it is hard to find a big difference on that front from Cantor. As he has a large farmworker population, and many large agricultural operations that rely on them, he is in a tough position with his more reactionary colleagues when he has support like this:

“There is no reason for Congressman Kevin McCarthy, as leader, not to take leadership on this issue,” said immigration reform activist Arturo Rodriguez, president of United Farm Workers. “Everyone will expect it and demand it. And we will step up all of our activities as a whole.” (CNN)

But McCarthy is a smart man. You don’t move up the ladder as quickly as he has if that wasn’t true. He sees the math, and understand the Republican predicament if they keep turning off Latino voters. In a district like his own, it would be hard to miss.

A few years ago, we thought we would have a great opportunity for reform. Republicans like Cantor and Boehner knew that the party had to change on the issue, or would continue to haunt them. But with Brat’s win over Cantor, will McCarthy continue to press the issue?

“I think his (McCarthy’s) views on immigration are similar to Cantor’s,” said Steven Camarota, director of research for the non-profit Center for Immigration Studies. “But after this week’s results, it seems much less likely he would push it. And even less likely still that he would move his members to push it.” (CNN

But McCarthy is capable of building coalitions, sometimes despite his own party’s reluctance. If he is willing to work with Boehner and Democrats, he could probably muster the votes. The question is how he deals with his own members. It is a question of threading a very, very fine needle. But it is a needle that he, and his party, need to thread. Electorally, Democrats would be better if he didn’t, but clearly comprehensive immigration reform would be the right course for the nation.

But on the plus side, he frequently says funny/incomprehensible things, so there’s that.