All posts by Brian Leubitz

Tax Vote without 2/3?

Michael Salerno, a professor at UC-Hastings, thinks that the Democrats do not need a 2/3 vote of the Legislature to get the tax extensions on the ballot:

While the state constitution requires a two-thirds vote to raise taxes, a proposal to extend taxes by placing the question on the ballot would not raise taxes – it would leave that question to the voters. Because the constitution is silent, it does not limit the ability of the Legislature to place a measure on the ballot effective only if approved by the voters. The Legislature has that power.

However, if the Legislature passed a resolution to place the extensions on the ballot without further action, the question would appear on the next regularly scheduled election in 2012. Obviously, this would not address the current crisis, which needs near immediate action. The Legislature may pass a bill by a majority vote to call a special election at the earliest time that is logistically feasible. If signed by the governor, that bill would take effect immediately. Why would it take effect immediately? Again, the answer is in the constitution – a bill calling an election is one of the few instances the constitution specifies that goes into immediate effect with a majority vote.(SacBee)

At which point do we give up looking for political cover to get a sane budget through?  I understand the political reasons for the Governor’s caution.  Democrats, taxes, yeah, I get it.  But there has to be a time where we just ask the people of California what kind of state that they really want to live in.  A state for the super rich? Or one for all Californians to succeed and thrive?

Salerno’s legal take on the issue is sound, though sure to be quickly tested in the courts.  To be honest, we really can’t wait much longer.  Brown and the Democratic leaders in the Legislature need to make up their minds as to whether they think getting Republican votes is a viable option within the next couple of weeks.  If not, we need to adopt some more creative solutions, whether Prof. Salerno’s plan or otherwise.

Brown to Veto Budget Today

Well, Jerry Brown, you fooled me.  Yesterday I said that you would probably wait on the budget bill for a week or two as you tried to negotiate a deal with the Republicans.  Well, apparently you didn’t even want the stench of it on your desk:

Gov. Jerry Brown will veto his own party’s budget on Thursday, less than 24 hours after Democratic lawmakers sent him a majority-vote plan balanced with risky solutions, according to sources in the Legislature.

The Democratic governor said during his campaign and throughout this year he would not sign a budget filled with “gimmicks,” though he suggested earlier this week he had relaxed that stance.(SacBee)

Well, back to begging and pleading then?  Check the veto message here.

UPDATE: The Governor has posted a video about the veto, basically saying that he’s not going to kick the can down the road.  Good for him, and likely good for the people of the State of California.  At least we can hope that we’ll never see the stupid sale/leaseback again.

Now, as to the question raised about the legislators’ salaries, commentor DarwinBG is right, they will continue to get paid.  Basically Prop 25 requires that the Legislators pass a budget, not actually impliment it.  I’ll check back if the June 30/July 1 deadline has any significance on that front, but I don’t think so.

UPDATE 2: Well, it appears that John Chiang isn’t quite so sure whether yesterday’s budget passed the smell test.

Controller John Chiang spokeswoman Hallye Jordan said Wednesday that Chiang had not yet reviewed the budget bills. The Democratic controller, who issues state paychecks, determined earlier this month that Proposition 25 requires lawmakers to send the governor a “balanced budget” to meet the pay requirement.

Brown said in his letter to lawmakers Thursday, “Unfortunately, the budget I have received is not a balanced solution” and that it was “not financeable.” Jordan was not immediately available Thursday to say whether the controller would issue paychecks to lawmakers in light of the governor’s message and veto. Proposition 25 does not speak to a balanced budget requirement, but Chiang included that interpretation two weeks before the deadline.(SacBee)

If this lingers on for very long, the question of “balanced” might end up becoming the stuff a legal case is made of.  For the time being, if they miss a week or two of paychecks, no legislator is going to make a big stink.  If it runs longer, well, maybe a termed-out legislator decides that he (or she) wants that paycheck after all and doesn’t like Chiang’s interpretation.  But that will still be a while.

Farm Workers Need a Fair Shake

For a couple of years, Sen. Steinberg has been pushing a bill to allow farm workers to organize in a way that is actually feasible.  You see, the traditional method of organizing can be rather difficult over thousands of acres of corporate farm land. I’ve called it the California Employee Free Choice Act, but really it is more basic, and critical to these workers.

Well, fortunately, it was passed this week as SB 104 and will head to the Governor’s desk soon.  From the United Farm Workers (UFW):

Without this bill, farm workers will continue to face unbearable conditions and pressure. Many workers don’t have access to basic things like shade, water, heat training or even breaks during the hot summer days. And nothing will change. Wage and hour violations will continue. Overexposure to pesticides will go unchallenged. Sexual harassment will remain rampant and the health crises caused by a lack of sanitation and lax safety standards will continue to plague farm workers.

This is a big step forward for California, even as we move back in other areas.  In fact, you might have heard a few words from Chris Bowers at dKos about this issue in your inbox.  Please consider signing UFW’s petition to the Governor.  With farmworkers literally dying in the fields, they desperately need the strength offered by the union.

Budget 2.0 Appears Destined for Governor’s Desk

Photo courtesy John Myers, KQED Update: And now it is done, the package has now passed

The reworked, gimmicked-up budget appears set for the Governor’s desk, after the Assembly passed the bill cutting the Redevelopment agencies.  But John Myers tweeted a rousing finale on those redevelopment arguments:

:

That looks 2 be it. Legislature, mostly but not all on Dem votes, approves #cabudget bills on time & off they go 2 Guv.

36 minutes ago Favorite Retweet Reply

#Redevelopment nix bills pass Assembly. Running 2 rework NPR national story & do KQED work.. #cabudget

42 minutes ago

Furutani & Wagner go face 2 face. Wow..everyone rushes in. #cabudget Photo: http://ow.ly/i/d07r

1 hour ago

#Redevelopment debate in Assembly turns volatile. Wagner (R) seems 2 makes some sort of Mafia reference..Gatto (D) & Furutani (D) explode

1 hour ago

KQED_CapNotes John Myers, KQED

Hard 2 see full #cabudget not going 2 Guv at this point. Assembly Dems can afford more defections on #redevelopment nix. But…

1 hour ago

Nothing like a good mafia reference to get everybody’s blood boiling, but it looks like everybody settled down and remebered that they are aging, out of shape dudes that weren’t going to look anything but foolish.  Incidentally, my money would have been on Gatto in that little dispute.  He’s young and agile.

I imagine that Brown is going to let the bills sit on his desk as he tries to play Houdini and cobble something together to get the budget he really wants.

Internet Tax Bill Clears Senate

I’ve mentioned the so-called “Amazon tax” a couple of times recently, and now it looks like it has passed the second big hurdle by clearing the Senate.  It was actually packaged up into a bill by Sen. Hancock with two other bills:

Hancock added, “Out-of-state online merchants are able to underprice local stores and California-based online businesses by as much as 10% by simply refusing to collect state sales tax.  We’re finally on our way to changing that in a way that will help small business and brings in more revenue.  It’s only fair.”

The three bills that are part of today’s legislative package include:

* Senator Hancock’s SB 234, which insures that the state tax board (Board of Equalization) has the authority to enforce collection of state sales tax by out-of-state retailers.

* Assemblyman Calderon’s AB 158, which specifies that retailers have a business “nexus” or connection with the state if any member of their corporate family is located in the state.

* Assemblyman Skinner’s AB 153, which obligates Amazon and others that use in-state affiliates to promote their sales to collect state sales tax immediately.

The measure incorporating the three bills now goes to the State Assembly, where a vote is also expected later today.

Hancock’s bill should pass the Assembly on a majority vote basis today, and head to the Governor’s desk.

The Republican Plan to Privatize the Parks

Once upon a time, there was a place so magical, that there were places that anybody could go.  Rich and poor could, heaven forbid, mingle in the glory of nature.  These places were even free to enter.  It was a magical place.

Of course, the days of free state parks has long since passed by the wayside. While we all would have loved to see Prop 21 pass, thereby ensuring a steady revenue stream for the parks system, it did not.  And so we are back to fighting about which parks to close.

Republicans have previously floated the idea of park sponsorships, but today, in an email from the Senate Republican caucus, they outright call for privatization of our parks system.

Privatizing park operations can provide significant benefits to taxpayers. When a contractor agrees to run a park or group of parks on behalf of a public agency, that agency removes the subsidized units from its ledger. On top of that, the state can receive lease payments in return. It is common for contractors to pay 10% or more of gate receipts, similar to what is charged for many concessions.

Park goers also benefit from private operations, as the operators have a financial incentive to enhance the visitor experience. Though they are limited by contract parameters, contractors can create a host of added benefits for visitors such as: Improved maintenance,Potential expanded facilities, Reduced risk of park closures or service cutbacks.  …

As the budget ax falls on state parks, multiple measures are making their way through the process to look at new ways of managing them. SB 356 (Blakeslee) requires DPR to allow cities and counties the first shot at operating a state park proposed for closure, while SB 386 (Harman) requires the posting of any proposed park closure, and the posting of contact information for potential vendors interested in bidding on the park. AB 42 (Huffman) authorizes the use of nonprofit entities to manage parks that would otherwise be closed.

In fact, state law already allows DPR to lease state parks and facilities to private vendors, but the department has been reluctant to use it. In a March response to a letter from Sen. Tom Harman, the department claimed it is “considering the option” of leases. Still the department has not issued any contracts for bid for an entire park, and has reported only one new concessions agreement in the past year.

Ultimately the Legislature must force the bureaucracy’s hand. There may be better ways to manage our parks, and keep them open during difficult fiscal times, but it will not be charted by the current management.

Wow, just wow.  This whole premise is still based on one, supremely messed up, underlying notion: parks are something that should be monetized.  But what if you view parks as something else entirely?  The birthright of all Californians that should be free for them to enjoy as nature intended.  In other words, they should be free.  

Now, this isn’t to blame those that care for our parks when the state can’t.  In Sonoma County, I’m a big fan of LandPaths.  They run and maintain, through donations and people-power, several large parks in Sonoma County, including the Willow Creek Extension to Sonoma Coast State Park.  These are some damned dedicated people who are extremely worthy of our support.

But yet I return to the central premise of how treat each other in California.  Do we care for each other enough to invest in our society, or are we really okay with the Social Darwinism?  We own these parks, and why exactly can we not afford to maintain them without bringing in a for-profit company to manage them?

Oh that’s right, the rich don’t want to pay taxes anymore.

Field Poll Shows Dip in Brown’s Support

Well, this should come as no surprise at all:

Gov. Jerry Brown still has public support for his tax plan, but the margin has slipped, and so has his public approval rating, according to a Field Poll released today. … Though Brown’s public approval rating has   slipped just two percentage points since March, to 46 percent, many Californians who previously were undecided about Brown made up their minds against him. Thirty-one percent of voters disapprove of Brown’s job performance, up from 21 percent in March.

“Three months ago he was still in his honeymoon period with voters,” Field Poll director Mark DiCamillo said. “Now I think what you’re seeing is more of a return to normal.”

Fifty-two percent of registered voters surveyed said they would be willing to extend temporary tax increases to close the state’s remaining $9.6 billion budget deficit, a drop of nine percentage points from March.(SacBee)

That last number, for the tax extensions, is in some highly dangerous territory.  It is not hard to imagine the campaign that could lure away 3% of those voters to vote no.  Also, turnout models for a September election would be extremely difficult to model, so take some grain of salt here.

These numbers correspond with May numbers from PPIC showing a similar drop, though PPIC has support for the extensions a bit lower.

Do or Don’t Get Paid: Budget Deadline Looms As GOP Stays Loyal to their Owners

Yesterday we had the reports of an impending gimmicky budget, but today we get a few more details:

Here’s some of what’s on the table without a bipartisan budget deal:

• Raising the state sales tax by one-quarter cent.

• Raising vehicle registration fees by $12 a vehicle.

• Adopting the so-called “Amazon” tax requiring online retailers to collect sales taxes.

• Adopting firefighting fee for rural homeowners.

• Cutting the budgets for the University of California and California State University systems by another $150 million each.(SacBee)

Now, some of these items aren’t entirely bad.  In fact, I’ve written a couple  of times in support of some of these measures, the Amazon tax fairness thing especially.  However, each of these items should get a full hearing on its own merits, not a rushed process shoved into the budget fight.  And of course, the additional cuts to UC and CSU continue to mock the long-dead dream of a California Master Plan for higher education.  Sorry Pat Brown!

But, really, this is  what we get with a bloc of legislators that won’t do anything other than complain about taxation.  The fight today is really something of a bizarro world.  It is like the 80’s Me-firsters decided that they were totally not down with helping anybody else.  And they wanted all of their own damn money.  And along the way they helped the super-rich game the system.  As Robert Reich describes in the video, the top 1% of earners take home 20% of the nation’s income, twice what they did in 1980.  Yet at the same time, they pay lower taxes than ever before, as the capital gains cuts have lowered their taxation down to the mid-teens.  Meanwhile, as a nation we are only at 15% of income coming through to taxation nationwide.  This is an astonishingly low figure considering our many military endeavors. In fact, it is the lowest rate in over 60 years.

Today we’ll get some sort of Frankenstein budget, but Brown will keep pressing in his Sisyphean task of getting some additional revenue into the system.  At this point, I’m really past the point of surprise, all news is old news in Sacramento.  In the end, it is hard to put this in anything but a class struggle construct.  The rich are dominating governments the world over as they seek to increase their share.  We can’t even protect our food supply anymore, and yet the rich still want tax cuts?

Amazing isn’t it?

Prop 8 Trial Stands

In a ruling that will surprise exactly nobody, the Prop 8 legal team’s hail mary pass fell incomplete nowhere near the closest receiver:

A federal judge on Tuesday refused to invalidate last year’s ruling against Proposition 8, deciding the gay jurist who overturned the same-sex marriage ban had no obligation to step aside because of a possible conflict of interest.

The decision by Chief Judge James Ware of the U.S. District Court in San Francisco left the ruling by retired Judge Vaughn R. Walker in place. Walker’s decision remains on hold pending a separate appeal to the U.S. 9th Circuit Court of Appeals. (LA Times)

I suppose this means that we’ll not need to probe the minds of every individual judge on every civil rights case to determine who is the most “unbiased.”  I’m thinking they could have hired Spock to mind meld with every judge upon confirmation.

UPDATE: Check the full decision here: Denial of Motion to Vacate 06-14-2011, but suffice it to say that Judge Ware didn’t find too much of the proponents argument convincing.

Out Come the Gimmicks

With the Republicans continuing their obstinacy, Democrats in the Legislature are looking for some way, any way, to make sure they don’t lose their pay after tomorrow’s Constitutional deadline.

The alternative plan would keep paychecks coming even though talks between Gov. Jerry Brown and Republicans have snagged on the issue of taxes.

“We will have a budget,” said Nathan Barankin, a spokesman for Senate President Pro Tem Darrell Steinberg (D-Sacramento).

Barankin and others close to the process declined to provide details. But a fallback blueprint would almost certainly rely on accounting moves and other measures that would merely paper over the state’s remaining $10-billion shortfall: Democrats, who have sharply cut back many programs already, have little appetite for further reductions.

Barankin acknowledged that any plan written without a renewal of some tax increases or more drastic cuts would not fully restore the state’s financial health.

“There’s no way to solve our long-term fiscal problems without taxes],” Barankin said, and “Republicans are simply unwilling or incapable of supporting a budget that includes [more] revenue.” ([LA Times)

The Governor has already walked back from his hard-line “No Gimmicks” stance from the election.  Certainly that would appear to be what he wants, but he is trying to make some accommodation to get something, anything passed.  Most likely, some of that will be borrowing and a bunch of accounting tricks.

They have about 36 hours to pass something, who knows what we’ll get.