All posts by Brian Leubitz

Tony Cardenas and Ron Calderon Announce Attempts at Congressional Districts

Both are seeking districts with no incumbents, but may face a moving incumbent

by Brian Leubitz

With seemingly final lines set for next year’s elections, expect a lot of moving trucks around Los Angeles.  But the upheaval also means that some new folks are trying to muscle their way into the term limits free halls of Congress. You can view the proposed districts here.

Two such names that announced today are Sen. Ron Calderon and Asm. Tony Cardenas.  Calderon will be seeking the proposed 38th district, which includes Cerritos, Artesia, Norwalk, and Whittier.  Cardenas is looking at San Fernando Valley’s 29th district.

But don’t expect either of these two to face a cakewalk.  The Calderon district has about 51% of voters from Rep. Linda Sanchez, and she’s drawn into a district with Grace Napolitano.  And frankly, between Ron Calderon and Sanchez, there really isn’t much of a debate as to who the better member of Congress would be.

CGS Calls for Clean Money 2.0

Model bill accounts for Supreme Court ruling

By Brian Leubitz

In a report recently released, the Center for Governmental Studies calls for a modified version of clean money to control the excessive spending and allow for additional competition.  In fact, they’ve gone ahead and produced a full model bill, complete with language that has some rather grand goals.

It establishes a hybrid system of full and partial public financing systems for statewide and legislative candidates. It provides candidates with an initial lump sum of funds  and then allows them to continue raising matching funds.  

The Act first requires candidates to qualify for public financing by raising a specified amount  of small campaign contributions, ranging from 750 contributions of $5 or more for Assembly  candidates, to 25,000 contributions of $5 or more for gubernatorial candidates. Qualifying  funds can only come from individual residents of the state. Once candidates qualify, the state  provides them with a lump sum of funding to run their campaigns, depending on the office  and the size of the jurisdiction.

The Act also places contribution limits on all state and local candidates running in California.  Specifically, it lowers California’s contribution limits and brings them into line with federal  limits-establishing contribution limits of $2,500 per candidate per election. In addition, the  Act closes a number of loopholes in existing laws, bringing under the same contribution limit  money raised by candidates and officeholders for ballot measure committees, legal defense  committees, inauguration committees and officeholder accounts. The Act also prohibits  off-year fundraising.

Of course, the Supreme Court’s decision in Arizona’s clean money system makes all of this susceptible to a court challenge.  And it is really hard to say which way the Court would go, as their regulation on campaign finance has really gone off the rails.  Ultimately to get the campaign finance system we really need for a robust democracy, we’ll need to repeal Buckley v Valeo and reject the notion that money equals speech.  Otherwise the richest among us get to speak far louder than those that can’t afford to put a million bucks worth of TV commercials on the air.

This Act would be a good start, but don’t expect it to come through the Legislature.  Republicans would fight it tooth and nail, and, of course, they have their own ideas about how to “fix” campaign finance.  Rob Stutzman, a former Schwarzenegger aide, has some suggestions:

Stutzman, however, said lowering contribution limits will put even more pressure on candidates to start raising money early. He said legislators facing term limits should be allowed to plan for future statewide campaigns. Stutzman, instead, would propose raising contribution limits to $100,000 per election and require immediate public disclosure of the donations. (California Watch)

Yes, really $100,000.  That is the Republican plan to “reform” system.  Allowing people to contribute $100,000 to a candidate.  I know that the IEs are kind of outrageous these days, but do we really think that allowing people to give $100K is really the way to solve that?  Seems like a long way down the slippery slope that just leads to unlimited contributions.  Are we eventually just going to give in and let Larry Ellison, Reed Hastings, Stewart Resnick, the gambling tribes, and Chevron sit around a table and decide who will be our next set of leaders?

I know a lot of people complain about “we can’t afford” to spend money on political campaigns, but the truth is that we can’t afford not to.  As it stands, we throw billions of dollars, from all levels of government, at stupid projects pushed by the wealthy.  Yet we can’t afford publicly financed campaigns. Funny how that is.

Brown Signs National Popular Vote Compact

By Brian Leubitz

Gov. Brown just signed AB 459, Jerry Hill’s bill to join the national popular vote compact:

Gov. Jerry Brown signed legislation this morning committing California to an interstate compact to award electoral votes to the presidential candidate who wins the most votes nationwide.

*** **** ***

For too long, presidential candidates have ignored California and our issues while pandering exclusively to the battleground states,” the bill’s author, Assemblyman Jerry Hill, D-San Mateo, said in a written statement. “A national popular vote will force candidates to actually campaign in California and talk about our issues.” (SacBee)

Basically, the Compact would become effective when enough votes in the electoral college are bound by the compact.  Before today’s signature, 8 states and DC signed up for 74 votes committed, California’s 55 gives a total of 129.  If the remaining 142 votes commit, we could be looking a vastly different political landscape.

Foster Care Policy Improving, but Threatened by Financial Risk

Increased age limit to 21 improves odds for at-risk children

By Brian Leubitz

During her tenure in the Assembly, Karen Bass made improving foster care a focus.  The biggest piece of this effort is likely AB 12:

Beginning January 1, 2012, the California Fostering Connections to Success Act (AB 12) takes effects, raising the age limit for foster care over three years from 18 to 21. During that time, kids in foster care will get financial assistance with housing – including college dorms, group homes, foster homes, shared housing and transitional housing – and have access to job skills and life skills classes, mental health counseling, advice on college or vocational education, and a host of other programs designed to help them become self-sufficient. (Silicon Valley Education Foundations)

Click through to read the compelling story of one young adult in foster care, but from a general perspective, this makes a lot of sense.  I couldn’t imagine being completely on my own when I was 18, and to expect anything but disastrous results from just releasing at-risk 18 year olds to the rather cruel world seems naive at best.

Of course, the big concern is that we don’t continue the support for these young adults.  With the recent wave of budget cuts and the likely additional cuts when that $4b doesn’t show up, a defunding could recreate the risk all over again.

Jerry Brown Takes to the National Airwaves

Governor appears on Cnn’s State of the Union Sunday talk show

by Brian Leubitz

Governor Brown appeared on CNN this morning, where talked about a wide range of topics.  Some notable points include the fact that the California budget might be falling apart already due to the possible denial of a waiver for the big MediCal cuts and Jerry’s continued insistence on hewing to the balanced budget.  Whether this means another round of cuts if parts of the budget break down is still up in the air.

Also of note, from a John Myers tweets:

Brown says on CNN that CA & US need 2nd stimulus, but it “has been stigmatized by the Republican leadership.” #cabudget

Of course, the fact that the first stimulus was too small and too laden down with tax cuts was obvious from the day it passed to those who really bothered to look at the economic reality.  But given the political climate, we’re now looking at going in the opposite direction with further government cuts.

Check out the interview to the right or at CNN’s website.

Cash For Moderates

New funding hopes to support moderate candidates

by Brian Leubitz

In June, I mentioned that SEIU was looking at getting some moderates into office, but now it seems they aren’t the only ones.  A new coalition has formed to put $600K towards electing some moderates into the legislature:

The group, Californians for Fiscal Accountability and Responsibility, received six contributions of $100,000 each from major Sacramento interest groups in June. Those include the California Dental Association, California Medical Association, California Association of Realtors, California School Employees Association, SEIU-UHW and State Building and Construction Trades Council.

California Medical Association CEO Dustin Corcoran said the coalition is interested in helping Republicans and Democrats who are willing to work on compromise deals in the Legislature. He said contributors have grown frustrated by gridlock in the Capitol, most recently during the budget process. (CapAlert)

I was more into this idea when we were talking about electing moderate Republicans over extreme tea party types.  Seeing as how they are now looking at playing in races where there are likely to be two Democrats in the general election, well, that isn’t nearly as exciting.  Then again, $600,000 isn’t really all that much in the grand scheme of things. They’ll need to come up with a lot more if they really want to have a statewide impact.

Amazon Ponies Up $3 Million to Qualify Sales Tax Measure

Investment makes it extremely likely to qualify

by Brian Leubitz

There was some thought rumbling around that Amazon was just going to use their measure to overturn the online sales tax measure as a stick to beat politicians with.  But it now seems they are intent on getting it on the ballot:

In a filing Friday with the Secretary of State, {Amazon} revealed it had already contributed $3 million to the More Jobs Not Taxes Committee, which was established less than a month after a state law taxing online purchases took effect.

The committee bills itself as a “growing coalition of taxpayer groups, consumers, small businesses, and online companies,” but so far it has only one funder: Amazon.

The company’s contribution will go toward gathering signatures to put an initiative repealing the tax on the June 2012 ballot, committee spokesman Ned Wigglesworth said. The committee must submit 504,760 valid signatures to the Secretary of State by Sept. 27. (The Bay Citizen)

I think it is at least interesting to note that Wigglesworth is a former staffer for Common Cause, who, you know, advocates for openness and is generally against large corporations buying electoral votes.  But since he also managed the campaign for Prop 26 and the expansion of the 2/3 rule, I guess that Common Cause stint is more the anomaly than the current gigs.  

Returning to the issue of speculation, there is one more side benefit for qualification for Amazon.  As soon as the referendum is qualified for the ballot, the law isn’t valid until it is approved by voters.  Of course, Amazon isn’t obeying the law now, as they aren’t gathering taxes for their California sales, but the referendum puts the legal question off for a while.  Even if they lose on the ballot measure, they likely earn back that $3 million bucks.

Of course, they’ll need to spend more than $3 million to win when this gets to the ballot, but they certainly have the easier side of the argument.

Our Austere Future: CA Democratic Congressional Delegation Challenges Transportation Bill

35W Bridge Collapse Pictures, Images and PhotosProposed legislation would stymie important upgrades to our transportation network.

by Brian Leubitz

In a letter delivered to the Chair of the House Transportation Committee, California Democrats strongly objected to proposed cuts in transportation funding:

We are writing today to express our concerns about the recently released Republican proposal for the Surface Transportation Reauthorization Act that cuts almost 1/3 of current level funding for highways and mass transit.  Specifically, we urge you to reconsider the overall proposed funding level, which would further adversely affect the fragile economy in California and the nation.

In order to compete in the global market, we must invest in our infrastructure as our biggest competitor already does.  China spends 9 percent of their Gross Domestic Product (GDP) annually on infrastructure, while the U.S. spends less than 2 percent.  More startling is the fact that the U.S. spends 40 percent less than it needs every year to improve the outdated backbone of our country.

Equally concerning is the recently released study by the American Society of Civil Engineers.  The report shows that if we do not properly invest in our nation’s infrastructure, we could lose more than 870,000 jobs, and suppress the growth of the country’s GDP by $3.1 trillion by 2020. The report also showed that in 2010, deficiencies in America’s roads, bridges, and transit systems cost American households and businesses more than $129 billion, including $32 billion in delays in travel time and $590 million in environmental costs.

In a time when the nation is clearly desperate for jobs, why are we embarking on a prolonged period of austerity? These transportation cuts would put people out of work right away, adding to our unemployment roles, and putting us on the wrong direction for the economy.

There are a great many ways that we should be spending money.  While we seem to have limitless funds for three wars, and the rich can party like it is 2006, how is it that we can’t manage to ensure that our bridges don’t collapse and that we have safe highways?

Find the full letter over the flip.

The Honorable John L. Mica

Chairman

Committee on Transportation and Infrastructure

2165 Rayburn House Office Building

Washington, DC

Dear Chairman Mica,

We are writing today to express our concerns about the recently released Republican proposal for the Surface Transportation Reauthorization Act that cuts almost 1/3 of current level funding for highways and mass transit.  Specifically, we urge you to reconsider the overall proposed funding level, which would further adversely affect the fragile economy in California and the nation.

In order to compete in the global market, we must invest in our infrastructure as our biggest competitor already does.  China spends 9 percent of their Gross Domestic Product (GDP) annually on infrastructure, while the U.S. spends less than 2 percent.  More startling is the fact that the U.S. spends 40 percent less than it needs every year to improve the outdated backbone of our country.

Equally concerning is the recently released study by the American Society of Civil Engineers.  The report shows that if we do not properly invest in our nation’s infrastructure, we could lose more than 870,000 jobs, and suppress the growth of the country’s GDP by $3.1 trillion by 2020. The report also showed that in 2010, deficiencies in America’s roads, bridges, and transit systems cost American households and businesses more than $129 billion, including $32 billion in delays in travel time and $590 million in environmental costs.

The proposal to reduce funding in the Surface Transportation Reauthorization Act will have lasting and negative effects on the California economy.  In fact, the state would lose $468 million in public transportation funds and more than $1.25 billion in highway infrastructure investments.  This means a loss of 61,054 jobs in California.

We do commend you for including an expansion of the Transportation Infrastructure Finance and Innovation Act (TIFIA Program).  This federal loan program provides direct loans, loan guarantees and lines of credit to finance transportation projects of national and regional significance. In California, this would up project delivery by allowing projects to receive low-cost federal loans or bonds up front that would be paid back with dedicated tax revenue.

We urge you to reconsider the overall funding level for the Surface Transportation Reauthorization Act.  Our national infrastructure is failing and we cannot afford to cut funding if the cost is the success of our commerce and economic growth.  We look forward to working with you to address our country’s infrastructure needs.

Sincerely,

Joe Baca

Karen Bass

Xavier Becerra

Howard Berman

Lois Capps

Dennis Cardoza

Jim Costa

Judy Chu

Susan Davis

Anna Eshoo

Sam Farr

Bob Filner

John Garamendi

Janice Hahn

Mike Honda

Barbara Lee

Zoe Lofgren

Doris Matsui

Jerry McNerney

George Miller

Grace Napolitano

Laura Richardson

Lucille Roybal-Allard

Linda Sanchez

Adam Schiff

Brad Sherman

Jackie Speier

Pete Stark

Mike Thompson

Maxine Waters

Henry Waxman

Lynn Woolsey

Paycheck Deception Makes Its Way Back to the Streets

Measure being distributed is worse than previous versions

by Brian Leubitz

Think back to the exciting days of the 2005 special election.  Calitics was just taking shape, and the Governor was pushing a series of right-wing reforms. One of these reforms, Prop 75, intended to block unions from using a members dues for political reasons without express permission every year. That one even got a critical editorial from the website of Reason Magazin. And back in 1998, voters rejected Prop 226 which did largely the same thing.

But it’s back again.  Unlike Democrats, Republicans have the resources and the wherewithal to fight these battles over and over again. After all, it only takes one victory, even if it is after 4 losses to come out the winner.  And the measure that is now circulating is a nasty bit of work:

A proposed initiative now in circulation called the Stop Special Interest Money Now Act by its supporters, would prohibit the use of payroll-deducted funds for political projects. It would still allow union members to voluntarily contribute money to political campaigns, if they authorized it in a written form to be submitted yearly.

Some four million unionized workers could be affected by this initiative. Corporations and contractors would also be affected by the new regulations, a key difference from earlier versions. However, the proposed initiative does go further, additionally preventing the unions and corporations themselves from contributing directly or indirectly to candidates and candidate- controlled committees.  (Capitol Weekly)

As noted, this one goes further than Prop 75 in two ways. It totally bans union (and corporate) contributions, but it also bans the use of any dues money at all for political contributions. Sure, you can give money to a PAC, but the soliciation of those funds would be difficult, if not impossible.  And the solicitation, even from willing members, would pretty much mean that the spending would be pretty small.

The ideal world of campaign finance would be a pure publicly funded campaign system.  But since we aren’t anywhere near there, this measure would just bring a sledgehammer to one part of the system and devastate Democratic funding for a generation.  When somebody asks you about signing a “workers protection act” be wary and step far away from that clipboard.

Amazon’s Long War on Sales Taxes

Amazon has avoided sales taxes since its inception

by Brian Leubitz

Amazon is a product of the 90s internet boom, you know that part of the story already.  But unlike many of their contemporaries, they saw not only the mere presence of the internet being the next step forward, but also a nice little legal loophole:  Quill v North Dakota.

Quill was a case from 1992 that essentially said that retailers who sent across state lines through the mail did not need to collect sales taxes for states that they had no physical connection to.  Jeff Bezos, CEO of Amazon, was keenly aware of this fact.  An article in the Wall Street Journal looks back at Amazon’s use of this natural advantage against brick and mortar stores:

Amazon’s Mr. Bezos has said he established the company in Washington partly because it has a tech-savvy but relatively small population, so state taxes wouldn’t affect many potential customers.

“It had to be in a small state,” he said in a 1996 interview with Fast Company magazine. He even mulled basing Amazon on a California Indian reservation because he thought it would allow his company to avoid collecting sales taxes in the state, he added. (WSJ)

Over the years, Amazon has gone to great lengths to ensure that they didn’t cross the very murky line into “nexus” with states that they were targeting for their sales tax schemes.  Along with California, this list included Texas and Illinois.  Just how far did they go? Well, how about this:

For travel to California, some former employees recall being instructed by lawyers and managers to use special business cards. Rather than distributing typical “Amazon.com” cards, they used ones from “Amazon Digital Services,” a wholly owned subsidiary that sells digital content such as books and music. Representing a subsidiary, rather than core retail operations, would help prevent state authorities from going after Amazon, the people said.

“It’s a very unscrupulous practice,” said Ms. Yee of the California tax board. She said Amazon employees visiting the state on business should present themselves clearly. If they don’t, she added, “I think it’s a conscious attempt to evade California’s tax laws.” She declined to comment on whether the practice was illegal. It couldn’t be determined to what extent Amazon currently uses the method.

But Amazon’s connections to California aren’t limited to the affiliates that they unceremoniously dumped after the budget bill passed, A9.com, an Amazon search subsidiary, is based in Palo Alto, and the company has many employees in the state.  However, they claim that as they do not sell within the state, most of the employees are engineers or engineering support, that these employees should not count as the nexus required by Quill.

Ultimately, something has to give, as American taxpayers really don’t need to subsidize Amazon.com anymore.  Sen. Durbin (D-IL) is now pushing the Main Street Fairness Act, a measure that would create a single national sales tax with one reporting mechanism for sell by mail retailers.  Interesting, Amazon has chosen to support the measure as an easing of reporting deadlines.  The bill is unlikely to pass in current governing climate in DC, and Amazon has to know that.  For a multi-billion company, the costs of reporting the taxes would be essentially negligible.  Whether they are using their support cynically to fight the taxes in the states is up for debate.