All posts by Brian Leubitz

The Calderons Strike Again: Say No to More Loan Sharking

I’ve been in a tiff or two with a Calderon brother in my time,  but this time Ron Calderon isn’t the object of the net roots ire.  This time it is Asm. Charles Calderon, who was carrying a bill about advertising for payday lenders.  Apparently now he has decided that he would rather carry their water, and has gutted it and replaced it with provisions that would make many a loan shark smile.  Many consumer groups were surprised by the move, but together with CREDO, they are fighting back

Just before the Assembly went into its Spring Recess, payday lenders were able to change AB 1158, a bill originally about payday lender advertising, to instead raise the legal limit of payday loans in California from $300 to $500.

Consumer advocates were completely blindsided.

With millions of Californians struggling just to get by, the last thing we should do is make it easier for predatory payday lenders to trap people in a vicious cycle of debt.

They are asking their members, and I wholeheartedly support the ask, to call the Democratic members of the banking and finance committee in the Assembly.  Click here to get the names and phone numbers and to report the calls.

This is a sneaky move, but nothing really that new from one of the slimier business sectors.  It’s time to tell these lobbyists that they can’t just skulk around in hopes that nobody notices.  Unfortunately we can’t catch all of these egregious abuses of the arcane process, but on this one, they got caught.

Time to let the Assembly know that this is not cool.

Arnold to Meg: You Kinda Stink

Gov. Schwarzenegger has been pretty quiet since he left the Horseshoe.  However, that doesn’t mean the muscle builder doesn’t have some pretty interesting thoughts running around that very interesting brain.  Fortunately, after his first interview went to Entertainment Weekly about his Governator cartoon/comic book project.  He sat down for another interview in London recently, and Newsweek got some interesting dish out of the the “Governator” on a few more items of interest to us here.  

While this is basically rehashing what we already know, that this is coming from Arnold makes it interesting, I suppose:

“She kind of took herself out of the game,” Schwarzenegger said. “What she did was play to the right, and she couldn’t come back for the general election to grab the center …. Brown was very smart to do exactly the opposite of what she did – which was to say, ‘I’m not a rich guy, all I have is my knowledge and experience, and I don’t need to cater to anyone, I will do what is right for California.’ She was not as effective as a communicator, and her ideas were too extreme.” (Newsweek, via LAT)

What he is basically saying is that Whitman just didn’t manage expectations as well as he did.  Now, by the end of his time in the Horseshoe, the people of California were pretty much done with him.  Perhaps it would have been interesting to see a showdown between Brown and Schwarzenegger, but the odds would surely be as least as stacked against the incumbent as they were against his perceived logical ideological heir, Whitman.  While we all now understand that Arnold was kind of hissing at her behind her back, the Brown campaign did an extraordinary job at tying her to the incumbent.

Elsewhere in the interview, beyond the effusive praise from former Secretary of State and longtime Arnold confidante George Schultz and the suggestion that he become the next President of the European Union, he tried to explain the situation with former Assembly Speaker Fabian Nuñez’s son and the fact that Arnold commuted his sentence down to seven years.

“I understand people’s disappointments. I understand the parents’ anger. I would probably feel the same way,” Schwarzenegger tells me in his first public comment on the commutation, which he granted hours before leaving office, arguing that his friend’s son didn’t inflict the fatal wound. “My office definitely made a mistake in not notifying the parents beforehand … and I’m ultimately responsible.” But, Schwarzenegger adds, “I feel good about the decision … I happen to know the kid really well. I don’t apologize about it … There’s criticism out there. I think it’s just because of our working relationship and all that. It maybe was kind of saying, ‘That’s why he did it.’ Well, hello! I mean, of course you help a friend.”

In the end, Arnold was close to Fabian, so it’s no real surprise.  He did it on the last day, well, because that’s when that sort of stuff happens.  But at this point, unless something extraordinary comes along, I just can’t see Arnold getting back into politics.  He’d have to be some sort of superstar executive. Perhaps the only place left for him is the EU presidency, because he’s sure not going to win any elections around here anytime soon.

Just Being Obstinate

Jerry Brown is about to hit Day 100, and it is clear the honeymoon is over.  Specifically, deals with six unions are set to be the focus of a showdown between the Governor and the Republican minority.  Needing a supermajority (yes, really) to even cut a deal that reduces benefits, Brown now finds himself looking at a fight over deals that are essentially the same deals as his Republican predecessor bargained with several other unions.

The deals negotiated by Democratic Gov. Jerry Brown last month include union concessions, but they fall far short of the savings that lawmakers from both parties said that they wanted from the contracts. … But last week, a committee on which Walters is the vice chair heard the current measure and then split along party lines: Three Democrats in favor, two Republicans against, including Walters.

“I don’t believe there will be any Republican support for these contracts,” the Laguna Nigel senator said after the vote. “Not at this point.”(SacBee)

You can take a look at what the unions agreed to, but it’s definitely nothing approaching a pay raise.  They will pay more for their pensions and will take 12 unpaid furlough days a year.  While this is an improvement from the 36 (or so) per year, this ends the punitive 15% pay cuts while at least continuing the savings (and the services to the state).

All in all, these are contracts that help the state.  Yet, we can’t get them through for what reason exactly? Oh right, it’s where the Republicans have leverage.  After all, who is going to fight for policy when there are political battles to be won. Certainly not Sen. Walters.

Maybe We Should Have Gone With Meg…Jerry Exposes His Lack Of Funds

During the campaign, folks (including me) were ridiculing Meg Whitman for flashing her cash around to do her job (which was then campaigning).  

Maybe I spoke too soon.  Maybe Meg Whitman could have opened up her gigantic wallet and exposed something more than that $26 Jerry seems to have in his wallet.

More seriously, you have to give Brown credit for speaking honestly.  Whether people are even paying attention is a different question.

It’s Not Better in Texas

I just got back from Texas the other day, after spending some time with my family.  And what do you know, I hear that LG Gavin Newsom and a crew of Republicans are heading down there to discover what is creating that awesome economy there that has got the state moving.

The problem with the whole “businesses are fleeing California” thing, is that is just one big myth fabricated out of nothing other than some political dreaming.  As Dave Johnson pointed out a few years ago, California jobs just aren’t fleeing.  And so it is appropriate that California’s leaders finally address this issue head on.

While a fair number of the people on this delegation were right-wing Republicans, Gavin Newsom is what you can fairly call a business friendly Democrat.  Not out to rid the world of all regulations, but certainly not somebody you can really attack for his embrace of those regulations. And frankly he’s not fond of Perry’s “hunting trips:”

“Candidly, the reason I came out here was out of frustration and admiration with some of the work that you’ve been doing,” Newsom said. “I’m sick and tired of Governor Perry coming to California all of the time.

***

Leading state officials in California have recently begun to ferociously counterattack the notion of the ‘Texas Miracle,’ pointing out with a certain amount of schadenfreude just how bad Texas’ budget problems are. According to a budget analysis done by the Houston Chronicle’s Texas Politics blog Texas’ budget crisis is proportionally as bad as California’s.

California Treasurer Bill Lockyer told Los Angeles Times’ Evan Halper with evident satisfaction that “someone just turned the lights on in the bar, and the sexiest state doesn’t look so pretty anymore.” (SF Gate)

Let’s get one thing out of the way, in terms of the budget of each of the states, California is in no worse of a position than Texas.  Perhaps even better.  The relative numbers are about the same, but the difference is that Texas already has decimated their public systems.  The land grant colleges, principally the University of Texas, are pretty much relying on their (massive) endowment and get little support from the state.  Even if they are going to cut that $25B from their budget, which it looks like they will, it is really unclear how they do that in a way that doesn’t leave them in the hole for years to come.  How do you catch up when you have mortgaged your public education system?  Or do you just give up on those who can’t afford private schooling?

Texas isn’t the new California.  It’s just Texas.  They have their natural resources, which, wisely, were dedicated to the public universities generations ago, and we have ours.  Where we go in the next 6-12 months will go a long way in determing if we avoid going down the road that Texas is treading right now.

Chasing Cars

We are in a huge budget deficit crisis, no doubt.  So, in response, the Citizens Compensation Commission has made the bold step of saving, well, nothing, by eliminating the vehicle fleet purchased for legislators.

California lawmakers can say goodbye to their cars provided largely at taxpayer expense.

The California Citizens Compensation Commission voted today to give legislators a $300 monthly car allowance to drive their own vehicles, effective the first week in December. … The current program’s per-vehicle cost to taxpayers averaged $7,508 annually in the Senate and $7,397 annually in the Assembly during a one-year period that ended Nov. 30. The totals equal 42 cents and 38 cents per mile, respectively.

By contrast, legislators who drive their own vehicles are reimbursed by the Senate at 40 cents per mile and by the Assembly at 44 cents per mile.(SacBee)

Now, this isn’t really that big of a deal. It’s not like any of these legislators don’t already have their own vehicles and insurance.  It’s just a stupid symbolic move that doesn’t actually save the state any money. It’s hard to argue that legislators shouldn’t be driving around for state business, that’s kind of their job.  So, instead they’ll just drive their own cars.

No big deal I suppose, but it would sure be nice if we could actually focus on the big picture rather than playing around with feel-good do-nothing garbage.  Hey, I wonder how much the Citizens’ Compensation Committee is costing us?

Lashing Out at John and Ken

PhotobucketA surprising fundraiser took place yesterday, one that will inevitably anger a portion of the Republican base.  

The event set out to mock the antics of radio personalities John Kobylt and Ken Chiampou, whose KFI-AM (640) program has put the lawmakers’ “heads on a stick” for engaging with Brown. The targeted GOPers wore paper cutouts of their own heads taped to popsicle sticks, tucked in the breast pocket of their suits. The fundraiser was billed as a celebration of “leaders on a stick.”

“This is not a commitment to a vote or anything like that, but you just can’t say no all the time,” said Assemblyman Paul Cook (R-Yucaipa), one of the hosts, of the potential budget accord.(LA Times)

Republicans don’t lightly dismiss the dual-headed scorpion of the right.  The leaders of this little event will certainly end up being excoriated on the right for even considering negotiation.  And so it is.

At the same time, what just happened at this event? A bunch of Republicans who have never really crossed party zealots on any issue this substantial are now saying they are going to do so? Hardly.  They are raising some cash by toying with a few optimists.  Could they consider voting for a revenue measure? Perhaps, but none of these legislators has any substantial record of bipartisanship.  Paul Cook is termed out and Tom Berryhill said during the winter that the “budget was not their (the GOP’s) problem.”  Hardly an inspirational group, and my confidence that these folks are just going to sing Kumbaya and support a balanced approach at the budget isn’t really all that strong.

But maybe poking a scorpion is a good way to start.

The InterWebs (and Republicans) Run on Hyperbole

Some of the more vocal critics of the prison realignment plan, which would shift thousands of prisoners from state to local control, held a press conference mildly supporting the plan in the belief that the money will be made available.  But that’s really not hypocrisy, so much as a reasoned shift of perception based on changed information.  All reasonable.

What isn’t reasonable? Well, that would be this quote from Assemblyman Jim Nielsen (R-Gerber) with some statistics that really aren’t worth repeating because they clearly emerged no more worthwhile than the soothsayer at the carnival. I’ll just get to it:

“The public safety realignment is a public safety disaster, an egregious breach of justice,” he told reporters outside the governor’s news conference. “There will be mass victimization, a great injustice. … The bottom line is you don’t mess with parole policies and sentencing policies without really seriously considering the long term impacts… The blood will be on the streets, and the citizens are going to look where the blood is, whoever the authority is that’s in charge. That’s going to be the local police and fire services.”(SF Gate)

The streets will run with the blood of a new carnage…that will never come.  At some level, this is just the same ol’ lock-em-up-and-throw-away-the-key BS that we see with Republicans (and some Democrats) all the time.  But Nielson just really outdoes himself with this little tirade, and is made to look all that much more ridiculous when the police chiefs, DAs and Sheriff’s association at least semi-support the plan.  Of course, Nielsen has no problem with a little demagoguery from time to time, check out his ranting against any tax increases over the flip.

Asm. Nielsen on Gov. Brown’s Budget* from CA Assembly GOP on Vimeo.

Disagreement on Strategy?

It’s no secret that not everybody in the Democratic institutional organizational front has been totally on board with Gov. Brown’s plan on the budget.  But until this point, dissent has been quiet and not out in the media.  The President of the California Teachers Association changed that recently:

“I believe that as much as our governor has been extremely transparent and honest in doing what he told folks he’d do – which is let the people decide – it’s too late for that,” Sanchez said in a phone interview. “Once you put it on the ballot after June, it’s no longer an extension, it becomes new taxes. And once they’re new taxes, the people won’t support that. I think the Legislature ought to do that themselves.”(SacBee)

Now, Sanchez makes some good points here.  He is correct on the ballot prospects. Most of the polling that I’ve seen shows a very difficult passage for a measure that is merely a resumption of the former taxes rather than just an extension of the Arnold Schwarzenegger increases.  It could probably be done, but it would take a fair bit of money to make it happen.

On the other hand, passing the taxes in the Legislatures is “merely” a matter of getting two Republican votes in each house.  That would be something approaching a Herculean task in the current climate.  It would mean finding legislators who were unwilling to even put it on the ballot who would want to actually pass the taxes.  Perhaps it happens as the all-cuts budget becomes the nightmare that it will eventually become, but the odds seem long, perhaps longer than passing a tax measure on the ballot.

Sure, Brown would have to ditch his campaign promise, but those things happen.  Regrettable perhaps, but political realities make for difficult choices.

But, perhaps this is a more reasoned play (and not really all that troubling to the Brown administration) than you might initially suspect.  This is a far better bargaining position than what Brown started off with of only getting Republican votes for a ballot measure. Why not demand more from them?

Going back to the ballot, whether through the initiative process or the Legislature, really isn’t looking all that attractive.  And that’s the reality that CTA and others are looking at.  Eventually, sometime this spring, some consensus will have to form on a plan to move forward, but that just needs a bit more hashing.

You shouldn’t have

Over at the Bee, they have compiled a complete list of every gift ever given to a legislator since 2002.  That’s a lot of gifts, valued at over 2 million dollars.

On a larger scale, what is the role of gifts given to legislators, nd how concerned should jbe about this practice.  If you check out the list, it isn’t like these are mostly just gifts from friends.  They are mostly from big lobbying organizations.  I’m not saying that the American Council of Life Insurers doesn’t really, really enjoy hanging out with Sen. Vargas, but that isn’t what this is about. These are gifts given to sway votes, and it is access that most constituents just don’t get.

So, what is the role of a gift, and how concerned should we be about this list? What are your thoughts?