Tag Archives: Don Perata

Budget

Dems Pushback: No Budget Borrowing

Yesterday’s news that Democrats were considering borrowing to balance the budget, specifically the plan to raid transportation and local government funds, brought a  vigorous response from Democratic leaders in the legislature. Don Perata, Karen Bass, and John Laird all issued statements claiming to not support budget borrowing, although the parsing of the words matters.

Perata’s statement:

Today’s Los Angeles Times story about state budget negotiations is inaccurate and misleading. Democrats have never entertained massive borrowing as a solution to this year’s budget problem. In particular, Democrats have never advocated nor believed in taking money from Propositions 1A, 42 and 10.”…

“Doing another get-out-of-town-alive budget would do nothing to help this state but rather would endanger Californians’ standard of living and economic future.”

Denise Ducheny chimed in with her own statement along these lines, and later in the day Bass and Laird added their stance. Karen Bass:

“Major borrowing is not part of the Democratic budget plan, and we don’t believe it should be part of the final solution. Our proposal balances the budget with a mix of billions of dollars in difficult spending cuts and new revenues, similar to those proposed by a previous Republican governor. It’s gimmick-free and honest. It closes our budget gap in a straight-forward manner, and eliminates out-year deficits.”

John Laird:

Any proposal to borrow from voter-approved propositions is not coming from those of us who want to balance the budget without borrowing or gimmicks.

Strong words – but nowhere in them did anyone explicitly rule out borrowing from the transportation and local government funds. It’s comforting to know that Democrats did not propose these plans and that they do not wish to use budget gimmicks – but a firm rejection of the plans is what we really needed to hear.

Sure, some might say we should not be negotiating in public. But if Republicans get to say “no new taxes” then surely Democrats are able to say “no new raids.” As I argued yesterday raiding these funds would not only cause the state serious economic harm, but it would severely weaken the Democrats’ political fortunes in the process.

Californians’ opinion of the Legislature is low, and many don’t trust their politicians. That gives the right wing a major opening to push through damaging things in the guise of populism. Democrats need to stand up to Republicans and protect working Californians. Refusing to even consider raiding the Prop 1A, 10, and 42 funds is a small but necessary place to start.

Budget

They Can’t Be Serious

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After having made an excellent tax revenue proposal to solve the budget, are Democrats setting themselves up for an epic FAIL on the budget? Unfortunately it seems that way as they seriously considering raiding transportation and local government funds to balance the budget:

Legislative leaders are drafting a complicated scheme to help close the state’s massive deficit by raiding funds voters have set aside for transportation and local government services, Gov. Arnold Schwarzenegger said Thursday, adding that it probably would force a state sales tax hike….

The legislative plan would balance the state budget with the help of $1.1 billion voters set aside for transportation projects and at least $1.4 billion earmarked for local governments under Proposition 1A, which was approved in 2004, Schwarzenegger said. State law requires that the money be paid back — at a steep interest rate — in three years.

To say this would be a bad idea is an understatement, and not only because it relies on a very bad form of borrowing to balance the budget. No, it is flawed because it would make the state’s economy much worse. This plan is being floated to stave off a cash crisis in August, but is that crisis worse than cutting buses and trains from mass transit? At a time when Californians are flocking to transit to avoid gas prices we need to be increasing service, not cutting it and thereby turning away from a crucial opportunity to shift our state in a more sustainable direction. And of course public transit cuts will worsen the strain on working families.

The impact on local government is even more damaging. By raiding their funds there will be mass layoffs in cities across the state – libraries, street maintenance, permit approvals. Firefighting would also be hit, as during the last budget crisis when many cities balanced their budgets by cutting back on fire department staffing. Surely the fires in our state right now would suggest the risk of this approach.

Dems might respond that they have little choice because of Republican obstinacy on taxes. But that is absurd. Democrats have done almost nothing to sell their budget plan, which was agreed to rather late in the process. They haven’t done the public work to explain why the budget cannot be closed via cuts. And make no mistake – raiding transit and local governments IS a budget that emphasizes cuts. It gives Republicans everything they want with little in return.

Republicans claim they don’t negotiate in public but we all know that’s untrue. Californians perfectly well understand what their stand is – no new taxes. What have Democrats responded with?

Democrats should not embrace this plan. All it will accomplish is increased distrust of the Legislature – if possible – and sour voters on Democrats due to their leadership failure. Dems will have difficulty generating the public support necessary for long-term fixes if they agree to a plan which will cause confidence in government to plummet. This will only hurt Democrats over the long-term and they would be smart to take a step back and consider what they’re doing.

[Update] I wrote this in a panel here at Netroots Nation on building progressive activism to help the “middle class” that includes our own Juls Rosen and David Sirota. The panelists are making brilliant points about how tax reform is the key to addressing the collapsing middle class – and how the right has effectively used taxes to pass themselves off as populist. People want tax fairness. Democrats need to be forced to take a stand on taxes. California Dems are once again looking to punt and are going to hurt working Californians in the process.

Uncategorized

Why The Perata/CDP Scandal Threatens The Fight for Congressional Seats

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“It just seems to me it is improper. It reduces confidence in government and also particularly the Party. I think the Party is going to have a tough time with all this publicity raising money from the smaller donors.”

-Bob Stern, President, Center for Governmental Studies on KCRW last night talking about the California Democratic Party wasting $450,000 on Senator Don Perata’s criminal defense fund. CDP flack Roger Salazar refused to go on at the same time as Stern and Rick Jacobs to debate the scandal.

Yesterday, David Dayen explained Why The Perata/CDP Scandal Threatens The Budget Fight. Yet that isn’t the only casualty from the culture in Sacramento that has put the California Democratic Party in crisis.

TPM Election Central is reporting on the target list for $34 million in DCCC reserved TV time this fall. Of the 31 races targeted, zero are in California.

Which brings me back to last night’s ill-timed fundraiser with Speaker Karen Bass. The actblue page to RSVP for the account said the money was going to support the California State Democratic Committee – Federal Account. Great idea, Madame Speaker Bass helping Madame Speaker Nancy Pelosi pick up more seats and be able to overcome the Blue Dog Caucus siding with the GOP to obstruct Pelosi’s leadership.

With California unable to count on DCCC ad money against any of the very vulnerable Republican Representatives, it is clear California Democrats need to plan to win on our own. Which is why yesterday’s LA Times editorial on the CDP wasting money on Don Perata is so counterproductive. We need the resources to win on our own and we need small dollar donors to get there. Yet the actions of the CDP discourage small dollar donations. The results are clear, including last night, the CDP has only raised $6,630 ALL CYCLE in federal money on actblue. To put in perspective, San Diego County Democrats have raised more than 20 times that much federal money on actblue — from more than 30 times as many small dollar contributions.

It could be another landslide year, but it probably will be yet another year when Democratic Congressional challengers don’t get the support they could and should count on from the CDP. In fact, when taking into account outstanding debt, the CDP Federal Account had less than $300,000 as of the end of May. And Democratic state senate challengers have already seen $450,000 wasted on not helping elect Hannah-Beth Jackson and Lois Wolk. We can trust in the CDP if the goal is to seize defeat from the jaws of victory (which it might be, Perata already called uncle on two state senate races so far this year). Or we can reform and begin fighting to beat Republicans instead of coddle the Democratic Party establishment. The first step is accountability. Again, Senator Don Perata needs to give back the $450,000 and Art Torres should step down as CDP Chair for wasting $4,450,000 not electing Democrats this fall.

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Fabian Nunez Plunders Democratic Voter Registration Committee

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DaDonGate has been receiving all of the attention this week, but Assemblyman Fabian Nunez apparently decided he wanted some of the limelight:

A campaign committee set up to boost Democratic voter registration has transferred $600,000 into a committee controlled by former Assembly Speaker Fabian Nunez.

The payment from the Voter Registration 2008 Committee to Nunez’s Committee to Protect California’s Future , was dated July 2, just one day into the new filing period for political contributions.

The shift of funds marks the latest infusion of cash into a committee controlled by Nunez. After the 2005 special election, the California Democratic Party paid $4 million into a Nunez-controlled committee.

Nunez will be termed out of office in November. He has not made public any future political plans. Under state rules, he could choose to spend the money without limits on a statewide initiaitve campaign, or he could transfer portions of the money to a campaign for future office, subject to state contribution limits.

“I don’t know what’s going to happen with that money, but we need it today for registration,” said Assemblyman Charles Calderon, D-Montebello. “Without knowing what the circumstances surrounding that transfer, it looks like it’s no longer available for voter registration. That’s a problem.”

In somewhat related news, Assemblyman Nunez also scored some ink today when the LA Times editorial board wrote he was enhancing, “the suspicion that a lawmaker’s real bosses are the special interests that make contributions and expect something in return, and not the constituents back home who send the lawmaker to Sacramento and whose taxes supposedly pay the salaries.”

How many new Democrats do you think could be registered with $600,000?

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A Tale Of Two Parties

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Here’s a story I’d like to see from top Democrats someday:

The California Republican Party poured $345,000 into Assemblyman Greg Aghazarian’s state Senate campaign last week, a sign that party leaders hope to make a run at the seat of termed-out Sen. Mike Machado, D-Linden.

The party followed up that donation by giving $595,000 to former Assemblyman Tony Strickland, the GOP nominee in another fall Senate campaign.

The races are the only two of the 20 Senate seats up for election in November where competition is expected.

By the Bee’s calculations, by the way, Aghazarian has a 9:1 fundraising advantage over our candidate, Lois Wolk.

Meanwhile, on our side, the lump-sum payments go… elsewhere.

If the apologists don’t see how bad this looks, I can draw them a map later.

[UPDATE by Brian]: Well, we can’t compete with these sums, but how about we throw a little love towards our two candidates in these districts. Both Hannah-Beth Jackson and Lois Wolk are strong progressives and would make excellent Senators. So, let’s Pick up the slack at ActBlue.

Budget

Why The Perata/CDP Scandal Threatens The Budget Fight

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As many have noticed, the Leadership has moved on the offense in the budget fight.  They’re not negotiating with themselves, instead staking out a fairly strong position for changing the revenue model and rejecting a stop-gap, borrow-and-spend, cuts-only approach.  Media wags, who normally act like two year-olds and talk about “working together” as if this would solve the problems in Sacramento, are responding to the aggressive approach.  George Skelton writes today about how California voters “can’t handle the truth,” how they want unlimited services without paying for them, and how they need to face reality.  He also specifically cited the 2/3 requirement as crippling the state.  Dan Walters says it’s about time for a “budget cage-match,” the ideological battle to once and for all address the structural deficit and budgeting-by-catastrophe that has become commonplace.  

Yet at the same time, the California Democratic Party hands $250,000 to the Senate President Pro Tem to pay for his legal bills, causing oodles of outrage.  Over the last two days I’ve been given a lot of reasons for this.  “The money was earmarked for Perata,” they say.  Perata has his own campaign account already and he’s perfectly capable of raising his own cash.  If people want to hide their donations by legally laundering them through the CDP, that’s nothing the state party should involve itself with.  There ought to be transparency.  “He’s being railroaded,” they say.  That’s certainly possible in an era of Bush league justice, but nobody is making that case credibly, just talking about how long the investigation has dragged on.  

And then there’s this excuse.  “If the Senate leader is indicted, that will hurt downticket races.”  But the appearance of impropriety in the CDP legally laundering contributions and paying for Perata’s legal defense fund is doing the EXACT same thing, and at a crucial time.  The LAT op-ed that Bob mentioned is just the beginning.

Furthermore, I have no idea why Sen. Perata is still the leader.  Sen. Steinberg, who did a $10 fundraiser in Sacramento a couple days ago and who I feel represents a breath of fresh air, is perfectly capable of carrying out the duties, and having someone this tainted as the face of the budget fight is incredibly damaging.  It won’t be long before the press connects this story and the budget story, and then all the mostly laudable efforts to cast a stark difference between Democrats and Republicans on the budget will be compromised.  For the life of me, I can’t figure out why the caucus has not demanded immediate leadership elections.  I believe Steinberg is scheduled to take over on August 11, when we’ll already be down the road in budget negotiations.  It is the height of stupidity to thrust someone into the leadership at that late date.  He should have been in there a month ago.

At the least, Perata can return the money and throw himself fully into this budget fight as a means of preserving what’s left of his legacy.  The CDP can return to its core mission of electing Democrats, and if it has to give back this $250K to donors, so be it.  But at a time when the momentum is on Democrats’ side and the budget fight is going to consume all the oxygen for the next couple months, allowing a distraction like this is a huge mistake.

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Art Torres to Embarrass Speaker Karen Bass Tonight

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Disgraced California Democratic Party Chair Art Torres apparently intends to attend a small dollar fundraiser with Speaker Karen Bass this evening and make our Speaker look ridiculous by asking for Democrats to give $50 on actblue while the CDP is wasting $450,000 not electing Democrats. Those attending Reggie Jones-Sawyer’s home will be in the awkward situation of having wasted a contribution to the CDP while the latest scandal is being ripped on the editorial page of the LA Times:

Meanwhile, the Sacramento Bee reported that the California Democratic Party used $250,000 of its contributors’ money to pay the legal expenses that Perata (D-Oakland) has racked up defending against a criminal probe by the FBI.

It’s all perfectly legal, but it sure stinks. […]

As for Perata, Democrats not just in his district but anywhere in the state must wonder what their party is doing. They have every right to expect that contributors’ money will be pumped into districts where Democrats are locked in tough election fights with Republicans, or into struggles with the GOP over the budget. Instead, it’s paying the legal bills for Perata, who simultaneously is leading the fight against a redistricting measure on the November ballot.

When politicians demonstrate contempt for Californians, Californians respond in kind. Term-limits reform, badly needed to fix the state’s broken political system, lost at the ballot box in large part because voters mistrusted Perata, Nuñez and Schwarzenegger, and with some reason. The notion that elected officials are paid by the public to do the public’s work has become distressingly quaint.

This is clearly indefensible, which is probably why Bob Mulholland chickened out on debating the issue with Rick Jacobs on KPFA this morning. According to the host, Perata’s flacks also refused to go on the show. With today’s editorial rightly blasting the CDP, the press is trying to get people on record and the word on the street is that the CDP and Perata’s team are refusing to try and defend the indefensible. Props to any press organization that can get the CDP or Don Perata to debate this in public.

There isn’t a debate because there is no excuse for this waste of money. Don Perata needs to immediately refund all $450,000 and Art Torres must resign in shame before tonight’s fundraiser to avoid making a fool of Speaker Karen Bass. And then both should apologize to Hannah-Beth Jackson and every Democrat on the ballot this fall for having such contempt for the concept of trying to win elections.

[UPDATE by Dave]: The problem here is transparency, and it’s not limited to funding.  Watch palace courtier Bob Mulholland respond to the fact that his boss essentially lied about Sen. Feinstein and the FISA bill:

So I contacted the party today to see if Torres would comment on today’s votes. I got a callback from party political advisor Bob Mulholland, who noted Obama voted for immunity today too as a compromise. “Our attitude as a political party is, let’s win the election and we can start cleaning up the constitutional mess Bush gave us,” Mulholland said.

In other words, shut up and trust us, we know what we’re doing.  I think it would be easier to win the election if they weren’t laundering half a million dollars to the Senate leader’s legal defense fund and embarrassing the entire party.  Speaking of which, why IS he still the Senate leader?  Why haven’t there been immediate caucus leadership elections in the wake of this?  Nuñez at least had the sense to step aside.

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California Democratic Party in Crisis; Art Torres Should Resign

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Every political insider in the state woke up this morning, opened the Sacramento Bee and read:

Perata aid angers some Dems

$250,000 to help with his legal bills should go to 2008 races, they say.

The California Democratic Party’s decision to spend another $250,000 on Senate leader Don Perata’s legal bills has angered some party activists, who say the money would be better spent electing Democrats this year.

The Oakland Democrat has racked up nearly $2 million in fees fending off an ongoing FBI corruption investigation in the last four years. With the latest donation, made July 1, the party has now given a total of $450,000 to help cover Perata’s legal bills.

“The California Democratic Party is in business to defeat Republicans and elect Democrats,” said Rick Jacobs, co-founder of the Courage Campaign, a left-leaning online activist group. “It’s not really to keep corrupt politicians out of jail.”

Steve Cummings, vice president of the Democratic Club of Ventura County, said that while he had not personally formed an opinion, “People are going to be livid.”

Democratic activists who want to take advantage of what could be another tidal wave year should be livid to see the CDP waste money like this. Wasting money on an impotent lame duck who should have passed the batton to Darrell Steinberg long ago instead of electing Democrats is plain stupid. There is no excuse. Art Torres should resign in shame. With this latest scandal, on top of the $4,000,000 he wasted on Fabian Nunez, it is abundantly clear that Torres has no intention of doing his job.

Tomorrow, Speaker Karen Bass is hosting a small dollar fundraiser for the CDP. How can Speaker Bass honestly ask Democratic activists to go to Actblue and make a two figure donation when the CDP is writing six and seven figure checks that have nothing to do with electing Democrats? Chair Torres is embarrassing Speaker Bass with this crap and putting her in an awful position thanks to legal crisis created by the clear appearance of impropriety by Senator Don Perata.

At the heart of the crisis rolling the CDP is money. While DNC Chair Howard Dean and Democratic Party presidential nominee Barack Obama have crossed the bridge to the 21st century and inspired small dollar donors to build people-powered political operations, the CDP is actually going backwards and Chair Torres is running things worse than when he was first anointed by then President Bill Clinton a decade ago. Chair Torres is either unable or unwilling to lead the CDP in this direction. As such, he has no business being Chair and should resign immediately.

When I hear the name “Art Torres” I have a sour taste in my mouth. My first thought is how far the $4,450,000 he has wasted could have gone to register and organize Democrats. Think how far that could have gone towards actually helping Charlie Brown this cycle, or Debbie Cook or Russ Warner or any of the great challengers who should be receiving strong support from the Party. If we lose Proposition 8 and California codifies discrimination into the state constitution, I’m going to think how far that money could have gone towards registering and turning out Democrats. Think how many organizers could be hired and trained with such a large sum.

The California Democratic Party is lost and the first step to set a new course is to admit that the CDP is FUBAR with Art Torres at the helm. Chair Torres needs to step down, preferably before he shames Speaker Bass at tomorrow night’s small dollar fundraiser. For as long as he stays, it makes no sense for small donors to contribute and every Democrat on the ballot this fall in a tight race is at an extreme disadvantage. It is time for reform, for progress. It is time to start winning.

[UPDATE by Dave] – Might as well add this here – the FISA Amendments Act passed today, and Sen. Feinstein voted for cloture, for the final bill, and against stripping out immunity.  Art Torres told us all that last year, she “led the fight” to stop telecom immunity in the United States Senate.  Draw your own conslusions.

Uncategorized

Your CDP Donations At Work

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It wasn’t enough that $4 million passed to Fabian Nuñez’ accounts through AT&T as a thank-you for the cable franchising bill, now CapAlert reports that the Democratic Party is paying off some of Don Perata’s legal bills:

The California Democratic Party has donated $250,000 to help Don Perata pay off his legal bills, as the Senate Democratic leader continues to rack up expenses fending off an ongoing FBI corruption investigation.

The party made the quarter-million dollar donation on July 1, according to campaign filings.

The money comes just in time for Perata, who, according to a May disclosure, had only $273 cash on hand in his legal defense fund and $250,000 in unpaid bills.

Jason Kinney, a spokesman for Perata on legal issues, said the donation — and the continuing expenses — are “no indication of anything.”

Actually, it’s an excellent indication that the CDP is interested in protecting their own rather than moving the state forward.

How many regional organizers throughout the state for the fall would $250,000 buy?  How many pieces of direct mail?  How many registration drives?  How many door-hangers?  How many Google ads going after California Republicans?

Don Perata is not the Democratic Party, and in a few months he won’t be a Senator.  His recent efforts have included ensuring that the party won’t get to a 2/3 majority in the State Senate and protecting his Republican pal Abel Maldonado.  And as a reward, he gets his legal bills paid.  It’s good to be the king.

Whether the FBI investigation is legitimate or a fishing expedition is actually irrelevant.  At a time when a progressive wave and massive expected turnout could sweep a whole new generation of Democrats into office, the CDP is paying fucking legal bills for their leaders.  The locals are doing a great job registering new voters and working to victory in November.

They don’t deserve the party they have.

Budget, education

California Education as A Children’s Soccer Match

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Have you ever seen a game of youth soccer? Not the ones when the kids start getting good, but when they are like 6 years old.  They don’t really get the strategy other than the ball should go in their net not ours. So they all run after the ball, and as soon as they get there, they just kick it in any which way is convenient.

That is kind of what’s going on in California education right now. Not from the teachers really, they’re only able to watch from the sidelines like a worried coach. Sure, they can advocate for a position, and do their best to provide a strategy. But the real problems are emerging from the purported leaders in Sacramento, it’s chase, chase, chase, kick, chase, chase, chase, kick, chase, chase, you get the point.

Yesterday, the Assembly passed Senator Perata’s bill blocking the compromise between Superintendent Jack O’Connell and the Governor. The compromise would have allowed outside administrators to exercise great amounts of authority over districts that didn’t meet the bizarre and onerous standards of the No Child Left Behind Act. Perata’s bill includes some important provisions, as the so-called compromise left our school districts and teachers in jeopardy. While local control can lead to not making the tough decisions required, it cannot totally be ignored. Schools are the heart of a community, and localities must have a strong voice in the process.

Now, the hitch here is that we need some form of this legislation to be signed into law in order to get $17 million in federal funding. The Governor says he prefers the Republican form of the bill, which, of course, stands no chance of passage. At any rate, we don’t need this “strong father” mentality on our education. We don’t need more top-down organization from the state, we need to provide the resources and let our teachers do their jobs.

But if you look closer at this bizarre soccer match, you see that the real problem is the size of the ball. California spends far less money per pupil than states like New York and Connecticut, despite the enormous challenges our students face. This is a measure of priorities and which end we want to score on.  On one side, you have the goal of a quality education for all of California’s children.  On the other, you have low taxes and wanting something for nothing. Yet that is the way the Republican kiddos elected officials are going.

And the worse part of this whole metaphor? For the life of me, I can’t figure out who the ref is.