Category Archives: Jerry Brown

Budget, Jerry Brown

Budget Goes to Governor’s Desk: Republicans Freak Out About HSR

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Budget Based on Compromises Leaves Questions

by Brian Leubitz

First, let’s get this out of the way: the budget ($156bn for those counting at home) has now been passed and just awaits a few formalities. It is a budget of compromises, but a solid foundation for California’s priorities.  And there are no big public fights, no big accusations, and no sleepovers in Sacramento. This is all good, and says a lot about the improved process under the majority vote budget system. (And Prop 30, which gives the revenue breathing room that we need.)

All that being said, the Governor wanted to maintain a hard line on spending. It’s nice and prudent and all that, but there are a lot of gaping holes in the budget that should have been addressed. George Skelton’s review of the completed product outlines some of those holes:

But the governor refused to reverse a 10% cut in pay rates for doctors who treat patients in the Medi-Cal program that is greatly expanding under Obamacare. Because of the measly rates – lowest in the nation – more and more doctors are refusing to accept Medi-Cal patients.

And, shamefully, no one even tried to restore previously cut funding for the most vulnerable: the aged, blind and disabled poor living entirely off federal and state subsistence programs (SSI/SSP) – $880 (sic, it is actually $877.40 – BL) monthly for singles and $1,480 for couples. There are roughly 1.5 million Californians receiving SSI/SSP, which was reduced to the federal minimum during the recession. The state is still stiffing them. They’re not unionized and can’t make campaign contributions. Meanwhile, legislators keep raising the minimum wage, bumping up inflation and squeezing these impoverished folks even more.

So the governor and Democrats shouldn’t be patting themselves on the backs all that much for their budget compromise. ([George Skelton / LATimes)

There have been a few good editorials about the Medi-Cal question, including this one in the SF Chronicle. Boiling it down, our reimbursement rates are among the lowest in the nation. And while there is a sharp need to control medical costs. As you can see from the graph in this tweet, our costs are still out of control. But the problem here is that if the tightest controls are isolated to Medi-Cal, doctors simply won’t take Medi-Cal patients. And that is exactly what is happening. As you can see from the ad up top, this was a big deal for the state. But under the current budget, reimbursement rates are still far too low.

In addition to the heartbreaking failure to restore SSI/SSP funding for some of the state’s most vulnerable, the state’s contributions to CalSTRS are taking a big chunk out of the restoration of funding to K12 education. And even with the $250+ million for both early child education and vocational education, there are still big funding problems at all levels of California education.

The other big issue: yeah, that would be Republican Majority Whip Kevin McCarthy’s non-stop tirade over the high speed rail project. (Seen here looking hilarious in flick user donkeyhotey’s cartoon.) The budget allocates $250m from cap and trade revenue, but long-term funding issues are still out there. At this point, HSR leaders can point to several billion of funding that is out there for the project, but are still a ways off from the full price tag. And if McCarthy becomes Majority Leader as expected, comments like these could mean it becomes a lot more challenging to get federal assistance for the project:

“Governor Brown’s persistence shows he is more interested in protecting his legacy than communities that will be uprooted by its intrusion,” he added. “As long as I am in Congress, I will do whatever I can to ensure that not one dollar of federal funds is directed to this project.” (Melanie Mason / LAT)

But those decisions are for another day. Today, we have a budget that will keep the lights on throughout the state, and that’s good thing.

Budget, Jerry Brown

Budget Negotiations Continue

Process looks set for this weekend

by Brian Leubitz

The budget deadline is this weekend, and without the need to pull a few Republican votes, harmony seems to reign. Well, not so much real harmony, but something that passes for harmony in Sacramento when you look at the past budget fights before the majority vote budget and Prop 30 votes.

With closed-door negotiations bearing fruit, the joint budget committee is expected to meet Wednesday afternoon to nail down more details on state spending.

“We’ll get through most of it,” Assemblywoman Nancy Skinner (D-Berkeley), who is chairing the committee, said in an interview.(LA Times)

Everybody seems to be all happy-go-lucky on getting a deal done. But to be clear, there are a lot of tough choices to be made. K-12 funding is still too low. Court funding is getting a boost, but is probably still too low. Skinner and Steinberg are still fighting Brown’s intention to end overtime pay for homecare workers.

The bigger issue overhanging much of this is whether to include an additional $2.5 billion in projected capital gains revenue, with some sort of compromise likely.

Yes, the negotiations are more civil than in the past, but the issues are very real. Gov. Brown seems to be a bit hesitant to restore funding levels anytime soon, but there is a lot of gap to fill between how much the state needs in services and how much we are providing. The higher end of our economy has clearly recovered, but that is far from universally true across the income spectrum.

Jerry Brown

Primary Election a Boon for Workers, Bust for Big Corporations

By Steve Smith

The results are in. While workers are celebrating some huge victories this morning, the corporate crowd is wondering what went wrong in some key races. Last night’s California primary election presented some very clear choices to voters that are critical to the direction of our state.

The corporate political machine went all in, spending big in an effort to defeat labor champions in a number of races, and for the most part, came up empty. Union workers, who pounded the pavement in the final weeks to talk to voters face-to-face about the importance of the election, likely made the difference in a number of races.

Five reasons last night was a boon for workers (and mostly a bust for big corporations):

It was a bad night for corporate Democrats and a good night for worker-friendly candidates.

In a number of races around the state, big business spent heavily to elect corporate Democrats to do their bidding in the legislature. The most high-profile of these races was Assembly District 16, where a coalition of oil companies, tobacco firms, developers, realtors and other business interests sought to advance corporate Democrat Steve Glazer over former teacher and Dublin mayor Tim Sbranti. Sbranti easily beat out Glazer for a spot in the general election, garnering 29% of the vote to Glazer’s 22%. It was a stinging defeat for Glazer, who, backed by a gaudy $3 million in corporate cash, made attacking union workers central to his campaign.

In another important race, corporate interests spent hundreds of thousands of dollars attacking labor champion Connie Leyva in Senate District 20, only to see Leyva advance to the general election. Leyva, the president of UFCW Local 1428 and the California Labor Federation, is a lifelong advocate for working families who will be a strong voice for workers in the legislature.

Governor Jerry Brown wins BIG.

There was no doubt Gov. Brown was headed to the general election, but by running up the score on his Republican counterparts, Brown showed just how formidable he will be come November. After the masterful job he’s done in turning California around, there’s simply no credible case to be made that he doesn’t deserve another term as Governor. And while the Republican establishment was happy to avoid the party bus to crazy town, population Tim Donnelly, they may not fare much better with former Goldman Sachs executive Neel Kashkari. Like Meg Whitman before him, Kashkari is the type of Wall Street candidate that California voters have little appetite for. In fact, given Kashkari’s involvement in the bailout of big banks at the expense of taxpayers, his resume may even be less palatable than Whitman’s. And his platform of cutting taxes on big corporations and eliminating regulations that protect workers and the environment isn’t going to sit well with working people.

Pro-worker candidates advance in every statewide constitutional race.

California is poised to retain the most worker-friendly slate of constitutional officers in the country after a number of huge wins by labor-endorsed candidates in the other statewide constitutional races. But just because big corporations took a drubbing last night, don’t think they won’t reload for the fall. Look for big corporate money to come in to support anti-teacher candidate Marshall Tuck against education champion Tom Torlakson. The California GOP will also likely throw in big for their only viable statewide candidate, Fresno Mayor Ashley Swearengin, who likely faces off against former Speaker of the Assembly, labor champion John Perez.

Mike Honda wins big in Congressional District 17.

Honda has been a champion for workers for decades, standing with labor in many key workers’ rights battles. He received an unexpected challenge from Democrat Ro Khanna in the primary. Khanna has done some good things for working people during his career, so it was a bit of a head-scratcher as to why he’d challenge a labor stalwart like Honda. Regardless, Honda showed his support in district is rock solid by garnering a decisive 49% of the vote in last night’s primary. The two will face off again in November, and working people are likely to ensure the same result, sending Honda back to Congress for another term.

Measure to provide much-needed assistance to homeless veterans cruises to victory.

The California Labor Federation was a huge supporter of Prop 41 as part of our ongoing effort to advocate for our state’s veterans. It was great to see voters show such strong approval (65%) of a measure to support our heroes in uniform, especially given the desperate need for increased housing options for veterans. The Labor Federation and affiliate unions look forward to continuing our efforts to support veterans through our new program, Veterans and Labor – Partners in Service. Learn more at www.veteransandlabor.com

Jerry Brown

Rainy Day Deal: 1.5% of General Fund

May help resolve long-term credit rating issues

by Brian Leubitz

S&P has never had much faith in the California legislature. Even after the majority vote budget amendment passed, and after Prop 30’s additional revenues, S&P never really had faith.

Earlier this week, in a memorandum supportive of a budget reserve, the Wall Street credit-rating agency Standard & Poor’s said that “when it comes to reaching a legislative supermajority on fiscal matters, California has a weak track record,” raising concerns about the possibility that Brown and lawmakers might fail to reach an accord.

S&P called the negotiation “a test of sorts for the state,” adding that “if the Legislature succeeds in assembling the consensus necessary to move the measure forward, it could mark another step in California’s ongoing journey toward a more sustainable fiscal structure.”(SacBee / David Siders)

Now, despite voters continually supporting revenue and large Democratic majorities, the late 2000s budget fights never really went away. Sure, the players are completely different, but that kind of madness leaves a mark. Yes, we’ve made wholesale reforms to the system, we’ve never actually missed any debt payments, and we have a constitutional requirement to pay debt before anything (save Prop 98 requirements). But, the credit bureaus like to see reforms that make them and their Wall St. friends happy.

That brings us back to the rainy day fund. California has always struggled with boom-bust cycles, and the idea was to stash away some of that boom money to spend during the busts. In general a good concept, but the very ominous devil is in the details. And with the recent indictments and subsequent suspensions, the Senate Republicans are relevant again. But, Brown’s framework brought a little bit of something for everyone to build off, and today we get this:

But on Thursday, following several weeks of private negotiations, Brown and the legislative leaders of both parties announced an agreement on a proposal to set aside 1.5 percent of total general fund revenue every year, plus revenue from capital-gains taxes when the economy is especially robust. (SacBee / David Siders)

Republicans get their rainy day fund and something to list as an accomplishment. (Giving them an extensive list of…1 accomplishment). Steinberg and the Senate Democrats got a commitment to use half of the 1.5% to pay down debt, rather than having to argue that issue later in the budget fight. That could have been a huge problem down the road, and the inclusion here is a big victory for Steinberg and could be enough to get a much broader base of support.

Jerry Brown

Gov. Brown looks to fix Rainy Day Fund measure

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Looks to fix 2010’s ACA 4 that will appear on November ballot

by Brian Leubitz

Gov. Brown has always been fond of the concept of a rainy day fund. He’s included the concept on many occasions, speeches, budgets, etc. Add “special session” to that list:

Gov. Jerry Brown on Wednesday called a special session of the Legislature to replace the “Rainy Day Fund” measure on November’s ballot with a dedicated reserve to let the state to pay down its debts and unfunded liabilities.

“We simply must prevent the massive deficits of the last decade and we can only do that by paying down our debts and creating a solid Rainy Day Fund,” Brown said in a news release, which accompanied a proclamation convening the special section next Thursday, April 24. (Josh Richman / Political Blotter)

It seems that pretty much everybody in Sacramento, across the political spectrum, supports the move, with Richman pulling supportive quotes from the Speaker, Senate minority leader, and the Chamber of Commerce. But, of course, they all have different ideas of what this means. Brown wants to account for the wild swings in revenue we get due to stock options and the like, while Huff and the Chamber focus first on spending one-time revenue on ongoing expenses.

What exactly this means for the November ballot is unclear. Any changes could push the ballot measure to 2016, but there is some flexibility with a lot of time still remaining.

Jerry Brown

Field Poll: Governor Up, Legislature Down

Yee arrest shifts legislative numbers

by Brian Leubitz

It turns out having one of your members arrested for involvement in a gun running scandal hurts your approval numbers. Who’d have thunk it?

Following Yee’s arrest, voter sentiment of the legislature has turned negative. The proportion of voters expressing disapproval jumped six points from 40% to 46%, and now is greater than the proportion approving (43%), which declined three points. Thus, voter opinions of the legislature swung a net nine points in the negative direction in the days following news of Yee’s arrest.(Field poll PDF)

Now, that being said, 40% is still relatively strong compared to the dark days of the budget fights a few years ago. In September 2010, approval of the legislature hit a rather abysmal 10%. The majority vote budget and the wiggle room afforded by Prop 30 should probably get most of the credit for that rebound. But the Yee arrest, following the other Senate legal issues, drags that down. Perhaps some of that will be resolved when those members are officially gone from the chamber, but with the Yee story likely to linger in the news, don’t expect an immediate bounce at the end of the year.

Meanwhile, Gov. Brown is riding high. Field has him at an all-time high of 59%, with just 32% disapproving. Those are numbers that will be hard for any competitor to overcome in June or November. But the field of candidates that are actually in the race? The odds grow even longer. Right wing extremist Tim Donnelly leads the pack at 17% with no other candidate exceeding 3%. Neel Kashkari hopes to spend his way to relevance, but time is running quite short.

Jerry Brown

PPIC Poll shows Brown with huge lead, Donnelly in distant second

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Endeavour Grand Opening Ceremony (201210300002HQ)Poll shows right-wing anti-immigrant Tim Donnelly could be GOP standard bearer in November

by Brian Leubitz

WHo really wants to be the one to get steamrolled by Gov. Brown and his huge warchest come June/November? Well, there are a few folks vying for the privilege, but few show any sign of making any inroads. Barring a bizarre calamity, Brown seems a prohibitive favorite over the field. And that instinct is borne out in PPIC’s poll:

When primary likely voters are asked how they would vote in the governor’s race, 47 percent choose Brown and 10 percent choose Republican Tim Donnelly. Fewer support Republicans Andrew Blount (2%) or Neel Kashkari (2%)-the other candidates included in the survey-while 3 percent name someone else and 36 percent are undecided. (PPIC)

Now, Donnelly, who is a well known right wing extremist better known as a Minuteman vigilante than as a serious legislator. Not exactly the type of candidate a 21st century party is really looking for in a state with a minority majority. But while some party leaders are kind of rooting for Neel Kashkari, and his much more compelling, and modern, story, the grassroots of the party seems to prefer Donnelly’s anti-immigrant right-wing platform.

Had Kashkari been able to keep up his initial strong fundraising, you would have to like his odds to pull out the number two spot. But with that fundraising rapidly slowing, Donnelly may be able to carry a right-wing base vote to the second line of the November ballot.  The other candidate, Andrew Blount, Mayor of Laguna Hills, says he is raising no money at all. Unless he plans to self-finance, Donnelly’s slightly higher name ID would likely be enough to push him over the edge. Here’s the current cash situation:

Donnelly reported Monday that he has less than $11,000 in cash on hand, with unpaid bills of $149,068. Kashkari, meanwhile, has banked more than $900,000, while Brown has nearly $20 million on hand.(SacBee)

Perhaps this will improve when one of them squeaks onto the November ballot. However, the numbers right now are all looking strong for Gov. Brown. His current approval rating is at 49% approval, down a bit from his all time high in January of 58%, but more than solid given the other factors in the race.

Jerry Brown

Jerry Brown Waxes Nostalgic with Maureen Dowd

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Governor looks solid for next election, looks back and forward with Dowd

by Brian Leubitz

Neel Kashkari, despite being something of a modest frontrunner to make it to the general election with Gov. Brown, is now struggling with fundraising. Apparently Hank Paulson can only max out once, and Kashkari is having some issues getting contributions beyond the ranks of Goldman Sachs. Kashkari now has less than $1mil, compared to Brown’s nearly $20m.

That all leads up to Maureen Dowd’s puff piece with the Governor entitled “Palmy Days with the Governor.” There are no hard hitting revelations here, just a few rememberances, many of which have to do with the Clintons:

So how does he reconcile what he said in 1992 and now? Have the Clintons changed, or has Brown changed?

He crosses his arms and gives me a flinty look, finally observing: “In retrospect, after we see all the other presidents that came afterwards, certainly, Clinton handled his job with a level of skill that hasn’t been met since.”

Take that, President Obama. (Maureen Dowd / NYT)

It goes on to cite the heckling at the CDP convention, but Gov. Brown is a fighter at heart. Despite his discomfort at the heckling, he closed his speech with “keep protesting.” He has changed a lot since his first go-round, but maybe he is still much the same.

photo by Alan Light

Jerry Brown

Gov. Brown’s Re-election Announcement Letter

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Governor pens letter to the state

by Brian Leubitz

Gov. Brown filed his papers for re-election today after writing a letter to the people of California, highlighting his record of working with everybody and ability to forge a compromise.  With his approval rating approaching 60%, and a weak field of competitors, Brown looks very strong in his reelection campaign.

You can read the full letter at the Governor’s website or you can read it over the flip.

To my fellow citizens of California:

Four years ago, I asked that you support my candidacy for governor based on my bringing an “insider’s knowledge but an outsider’s mind” to fix the budget breakdown and overcome Sacramento’s poisonous partisanship. Now, four years later, a $27 billion deficit has become a surplus and our credit rating and public confidence are rising. State budgets are not only balanced but they are on time and free of the rancor of past years.

I said that I would work with both Democrats and Republicans, oil companies and environmentalists, unions and business, and I have.

I pledged that there would be no smoke and mirrors in the budget, and there aren’t.

I promised that there would be no new taxes unless you the people voted for them, and you did.

I also said that we would return decisions and authority to local government and schools, and we have–through Prison Realignment and the Local Control Spending Formula for schools.

The goal was to get California working again–both its government and its overall economy, and that is happening.

For our schools, where once there were thousands of layoffs and widespread elimination of arts and science programs, there is now local control, new hiring and restoration of programs–$10 billion in additional funds this year alone. As for health care, millions of Californians will now either be covered for the first time or enjoy more affordable and better plans.

With Congress failing to reform immigration laws, California acted on its own, passing the Dream Act, making drivers’ licenses available and protecting immigrants from employer retaliation or being deported for minor offenses.

Since the recession, California created a million new jobs, raised the minimum wage, and reformed workers compensation to increase benefits and cut costs.

After more than a fivefold increase in the prison population, California has now embraced a series of major reforms that place responsibility and funding for lower level offenders with local governments. As a result, the prison population is down dramatically and significant funding is going to treatment and rehabilitation.

But, of course, there is much more to do. The many laws that have been passed need oversight and wise administration. Despite the passage of solid pension reform, our pension and retiree health care plans remain underfunded. And California still faces huge liabilities in the form of long deferred maintenance of our roads and public buildings. In short, the current budget surplus, if it is to endure, requires vigilance and a resolute will.

At this stage of my life, I can say–without any hesitation–that I am prepared and excited to tackle these challenges and the many others that lay before us. In fact, there is nothing I would rather do. So today, I have taken out the papers to run for re-election.

If you had asked me 40 years ago–when I first ran for governor–what I would be doing in 2014, I could never have guessed. Nor could anyone else. Yet, by the grace of God and habits of perseverance instilled in me by my family, the Dominican nuns and the Jesuits, I am here and ready to go.

We live in unprecedented times. The tasks ahead are not simple or mundane. The climate itself is changing, threatening catastrophic and irreversible damage to the oceans and natural systems on which human beings and other forms of life depend. In many respects, California is leading the way and we will continue to do so by encouraging many kinds of innovation and by joining with other states and nations. But this is a global problem and only by acting both locally and globally do we have any chance of reducing the unrelenting increase of heat-trapping gasses.

California is now formally committed to obtaining at least one third of its electricity from renewable sources. We are also building the nation’s only high speed rail system and linking it closely with improved local and regional rails systems. Finally, California is strongly encouraging electric and other low emission vehicles, along with better land use to get people and jobs closer together. In all these endeavors, my goal is to decrease the use of fossil fuels while fostering vibrant communities and a sustainable environment.

The current drought is a portent of weather to come. It should awaken us to the actions we need to take this year and in the years to follow. Water is more than a resource. It is a vital and fundamental element of our wellbeing. In the next few years, we need to make solid progress in managing our water both above and below the ground. I pledge my full commitment to bringing all the disparate parties together and working to achieve sensible, scientific and sustainable water policies.

California is known for its brilliant innovation and Nobel Prizes. Yet, millions of our families are struggling and too many men and women cannot find work or the living wages they deserve. My policy is to encourage both new jobs and to protect workers’ rights and environmental values. Balance here is key but what constitutes balance is contested on all sides. I won’t make everyone happy every time but I will listen and I will seek to find the best and fairest way forward.

I’ve lived here my whole life. I love this state and will do my utmost to enable California to keep faith with its past and pave the way for a future as bold as our forebears would expect.

Respectfully,

Jerry Brown

Jerry Brown

Gov. Brown Talks Drought and Bay Bridge

Governor looks to maintain cautious approach

by Brian Leubitz

Carla Marinucci of the San Francisco Chronicle has a way with a video camera like few else. She readily acknowledges the less than high tech camera work, even going so far as to name her video series “Shaky Hand Productions.” But she has a way of being in the right place at the right time to ask some very pertinent questions.

Yesterday she posted another such video, this time a dimly lit interview of Gov. Brown. He covered the drought and the frustrating Bay Bridge situation. On mandatory water restrictions he hewed his refrain of letting local governments ride lead:

I like to focus attention and responsibility on local government, local school districts, whenever possible. So I certainly encourage every local community to do exactly what they need … and when it becomes necessary for the state to take over and actually order (rationing) … I’ll certainly do that. “

Cruise on over to her blog post to get the full transcript. Looks like he’ll officially kick his campaign off soon.