Tag Archives: karen bass

Calitics (sort of) Exclusive: Campaigning on the Budget

Earlier today, Robert suggested we campaign on the budget. That would be excellent, wouldn’t it?  Well, the Assembly Dems have made this excellent little mini-infomercial. It’s on Speaker Bass’s Supporter Facebook page, but other than that, you’re seeing it first here. It’s about 5 and half minutes long, but it packs a lot of information in there.

It goes through the background of the budget fight, talks to a few assembly folk, and has some nice narration about how Arnold wants to cut schools.  Good stuff, but my favorite part is when Speaker Bass goes after the requirement of 2/3 to agree to a budget.  Go Bass Go!

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.

They Can’t Be Serious

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.

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

“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.

Art Torres to Embarrass Speaker Karen Bass Tonight

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.

In Depth on the Democrats’ Budget Solution

(I added the Speaker’s Web report on the budget. There’s some good information in there. – promoted by Brian Leubitz)

I will be on KRXA 540 at 8 tomorrow morning to discuss this and other California political topics

I’ve been looking over the Democrats’ budget proposal and the more I see it, the more I really like it. It’s a testament to the leadership of Speaker Karen Bass and of Assembly budget wizard John Laird (not his official title but it might as well be) that they put together such a good plan. Of course it will be a starting point for future negotiations, but Californians should rally behind this plan, which provides for the public services this state needs to survive a tough economy without hurting working Californians with a tax increase.

The plan is smart, fair, and above all progressive. It would reverse the trend toward regressive taxation in California by finally making the wealthy pay their fair share. Just as Bush’s tax cuts have blown a hole in the federal budget, so too have the McClintock Republican tax cuts done the same to ours.

The first thing to understand is that, as Speaker Bass explained on a conference call earlier today, that we already have cut the budget. Over the last 3 years some $15 billion in cuts have been made, particularly back in February. We will hear the usual “more cuts!!!” from Republicans – but there really is nothing left to cut. We’ve cut fat, we’ve cut muscle, we’ve cut bone. We’re reduced to sucking out the marrow and leaving a bare rickety skeleton.

Second, the tax increases – some of which are temporary, some of which are permanent – are not designed to be the final solution to the structural revenue shortfall. Speaker Bass made a good point that while the income tax increase is permanent, it can and perhaps should be changed when the tax reform commission unveils its proposals next year.

Third, the increases will hardly hurt the economy. Many of these tools were used in 1991-92 with the severe budget crisis at that time and they did not prevent the state economy from going into recovery by 1993-94. Of course we need to get away from the notion that tax increases by themselves hurt economic growth – firing teachers, cutting public transportation, and closing hospitals are really what produce severe and lasting damage.

That all in mind I discuss the specific plans over the flip.

Going off the SacBee summary:

New income tax brackets

Revenue generated: $5.6 billion

Reinstates 10 percent and 11 percent tax brackets for wealthiest Californians. Income tax rates range in California from 1 percent to 9.3 percent. The new proposal would raise the rate to 10 percent for “taxpayers filing joint returns with taxable income above $321,000 and 11 percent for those with incomes above $642,000.”

This title from the Bee is misleading – the brackets are NOT new. They were created in 1991 and then recklessly cut in 1998 when Tom McClintock insisted on new tax cuts at the height of the dot-com bubble. This tax would be permanent but, as Speaker Bass noted, these wealthy individuals can deduct that amount on their federal income tax return. It’s a wash for them an a boon to the state.

In any event this revenue solution is smart, fair, and desperately needed. Even if the other proposals are abandoned, this one should stay.

Suspend “net operating losses” for corporations

Revenue generated: $1.1 billion

For three years, big business would lose its “net operating loss” deduction. That allows companies to carry forward losses from one year to the next and use them as a deduction in taxes.

This would only apply to businesses making over $5 million in profit, protecting small and medium businesses. Again it is a progressive solution that pushes the tax burden onto the rich to benefit the masses.

Suspend inflation indexing of state income tax brackets

Revenue generated: $815 million

This plan would suspend the adjustment of income tax brackets for inflation. As a result, Democrats say, a single filer with a taxable income of $50,000 a year would pay $34 more, while a taxpayer with income exceeding $97,000 would pay about $180 more.

$34 per person is a very small price to pay. Especially considering that wages are not rising much due to this current inflation – indexing of tax brackets was done in the 1970s in response to the “bracket creep” that stagflation produced.

Eliminate dependent credit for those with incomes above $150,000

Revenue generated: $215 million

The dependent tax credit was $294 last year. The LAO proposed lowering the credit to $94 — the amount of the individual exemption. The legislative Democrats have proposed lowering the tax credit for those taxpayers with adjusted gross income above $150,000.

This is a necessary tax loophole closure, but it is right to protect those middle-income families who have children.

Raising the franchise tax

Revenue generated: $470 million

The top tax rate for corporations is currently 8.84 percent. The proposal returns the tax rate to 9.3 percent, where it was in 1997.

This will finally undo one of McClintock’s reckless 1998 tax cuts that blew a hole in the state budget during the temporary dot-com boom. Republicans cut taxes during the flush times, not leaving Californians with enough during the hard times.

Steps up tax enforcement

Revenue generated: $1.5 billion

This is a plan to collect taxes already owed to the state, to be “modeled after successful tax amnesty efforts in the past,” according to legislative Democrats. They said some of the $1.5 billion in revenue “will be an acceleration of revenues that would be paid in the future.”

A no-brainer.

All in all these are smart and fair solutions that will protect vital state programs and services from radical Republican slashing. We cannot afford more cuts, but we CAN afford new revenues.

California Democratic Party in Crisis; Art Torres Should Resign

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.

Democrats Ceding Ground On The Budget

L.A. teachers walked out of their classrooms for one hour yesterday to protest proposed education cuts in the budget.  In West LA they stopped traffic.  Speaker Bass, at LA Trade Technical College for a ceremonial swearing-in event, offered support to the teachers.

State Assembly Speaker Karen Bass (D-Los Angeles) said the demonstrators — who included teachers in red T-shirts, parents with young children and students — were heard by the governor and state lawmakers wrestling with a $17-billion budget shortfall. She said Democrats in the Assembly and Senate will not accept any budget that is balanced through cuts only.

“I absolutely support the action taken by the teachers, and if it wasn’t for the swearing-in activities, I would have walked on the picket line right along with them,” said Bass at her ceremonial inauguration as Assembly speaker at Los Angeles Trade Technical College. “What the teachers did today was they sounded the alarm for the people of Los Angeles to understand how serious this crisis is.”

Of course, it would be nicer if this show of support translated into a revenue solution more robust than picking up the Governor’s ridiculous lottery borrowing idea and running with it.

Democratic lawmakers made an opening pitch Thursday for closing the state’s $15.2 billion deficit, using lottery borrowing as well as unspecified proposals to close tax loopholes […]

Assembly Democrats have supported the governor’s plan to borrow from the lottery but rejected his proposal to put the money into a so-called “rainy day” account. Instead, they would like to use the money to pay down debt.

Democratic leaders in both houses proposed giving schools more than the governor recommended. They include cost-of-living increases for teachers.

I think the move here for Bass is to get the necessary short-term revenue by whatever means necessary to balance the budget this year, and then put her taxation task force in motion thereafter and make the real fight through the next two years of her leadership.  But that’s unfortunately a shortsighted proposal.  Borrowing from the lottery means greater deficits in the future, and Californians understand this and have rejected the idea.  Every year that we fail to address the revenue side is a year where we have to borrow more and more to get the budget balanced, meaning that we’ll need more revenue when we finally get around to structural change.

What a beautifully surreal week…

(Cross posted at Living in the O.) 

This week has been kind of amazing, in an extremely surreal way. It seemed almost appropriate that we had 90+ degree weather in Oakland during the end of the week – a perfect setting for so many historic events to take place in…

On Wednesday, Karen Bass was sworn in as the Speaker of the Assembly. She is the first African-American woman to lead any state or federal legislature, and it was inspiring to read her speech. From what I heard from those who were in Sacramento, it was even more incredible to be part of the excitement.

But the real excitement for me came yesterday morning, when I received an alert from Equality California about the California Supreme Court’s decision (PDF) to overturn the ban on same-sex marriage. I was a bit surprised at my reaction – I was teary eyed at the moment I heard and those tears have returned several times as I’ve thought about what this means.

It’s odd because for most of my life, I haven’t thought much about marriage. It never really seemed that necessary or even desirable to me. But yesterday, when I found out that I could now marry my girlfriend if we wanted to, I realized that this right is incredibly important to me. (My girlfriend certainly helped me come to this realization by showing up at my office unannounced yesterday afternoon with popsicles for me and all my co-workers.)

Today, it hit me again when I got another email with an FAQ about marriage, in light of the decision. It became so concrete when I found out that I could get married almost immediately to anyone I wanted, no matter his/her gender (well, assuming s/he wanted to marry me). Really, I could get married next month, and the gender of my partner wouldn’t be an obstacle.

I know this probably all sounds obvious considering the ruling, but it’s taken a day and a half to fully settle in. It completely alters my life options, and I couldn’t be much more elated by this.

This evening, riding home on the bus, I ran into Rebecca Kaplan. I hadn’t realized until I read her Daily Kos diary earlier this week, but if elected to the Oakland City Council, she would be Oakland’s first openly lesbian elected official. In this surreal and wonderful week filled with firsts and changes, it seemed appropriate that as I ended the week, I ran into someone who’s poised to make history on June 3rd.

Speaker Bass swearing-in speech

“To the former Speakers who joined me today as my escorts – you honor us with your presence the way your service honored this house and this state. Thank you for taking the time to be here today. Since I have been in the legislature I have sought each of you for your guidance, critique and solidarity. And I thank you for that – and assume you’ll be available for many more phone calls.

Members….honored guests…dear friends and family….since my election on February 28th to be the 67th Speaker of the Assembly, I have had the opportunity and experience to be part of an incredible transition –  part of a complex and comprehensive process of receiving the torch from the 66th Speaker of the Assembly, Fabian Núñez.

I know the job ahead of me as Speaker will be both easier and harder because of the example set by Speaker Núñez.

Easier because of the outstanding processes he has put in place for this house. Harder because of the high threshold he has set for results.

Mr. Speaker, thank you so much for your leadership, your friendship, and, especially, for the enormous generosity of spirit you have shown me during this seamless transition.

Members, as Mr. Speaker mentioned, I do feel the weight of history on my shoulders today – as the first African American woman in U.S. history elected to head a state legislative body.

Consistent with the African side of African-American tradition, I begin today by acknowledging and honoring those people who have shaped my life but are no longer here to share my life.

My mother who taught all of us that the most important words in our vocabulary must be dignity, integrity and honor.

My last image of her was watching her walking down the hospital corridor – she held her head high – yet I knew she knew her life was about to end.

My father who never wanted me to run for office – because he was afraid I’d be hurt.

But yet he was the one who introduced me to politics, watching the civil rights movement on the nightly news and trying to help me understand the concept of legal segregation in the South where he was from–he instilled in me the passion to fight for justice and equality.

They are not here, but their presence is constantly felt and is represented today by my three brothers – Kenneth, Keith and Kevin Bass.

Will my brothers please stand.

My beloved daughter and son-in-law – who I miss every single day.

I look out on the floor – I sat where Assemblymember Eng sits and the memory is seared in my mind – of my daughter Emilia, who sat next to me during my first swearing in and giggled at the formality.

Her then boyfriend – Mike – who would soon become my son-in law, sat in the gallery with eyes as big as saucers at the enormity of it all.

Emilia and Mike are not here, but their presence is constantly felt and she is represented today by her siblings – my step children – who have been in my life since the day you were born—Scythia, Omar and Yvette Lechuga – please stand.

And Emilia’s best friends – my other daughters – who are very much a part of my life – Denise-Julia, Rolanda, Sterling, Ebony and Tiffany – will you please stand.

Members, throughout the past 18 months I have experienced the best of your hearts – and I’m not sure I can fully express how much that has meant to me.

So many of us have faced personal tragedies and losses – we have stood with each other – we have embraced each other – and helped each other though the bad times.

And we’ve embraced each other through new children – Lori Krekorian – and grandchildren – life’s blessings as well.

If we could only harness the power of our common humanity, I don’t think there’s anything we couldn’t do for the people of this state.

And members, they truly do need us now.

People are losing their homes. People are losing their jobs. People are scared about the future in a state that should be all about hope for the future.

Think about it. We represent California – the 8th largest economy on the planet. If California was our own nation, we would be better off than Russia or India or Spain.

We have it all.

The movie studios I represent in the 47th Assembly District use software created in Ms. Lieber’s district.

Professors at Ms. Wolk’s UC Davis help Mr. Berryhill’s farmers improve their crops.

And who wouldn’t enjoy a glass of Ms. Evans Napa Valley chardonnay watching the sun set over Mr. Plescia’s La Jolla coast?

More than 50,000 companies in our districts export products around the globe.

20% of all U.S. trade – about a half a trillion dollars – passes in some way through California. Workers at our ports handle more than 40% of the nation’s container cargo.

Almost one-third of all U.S. biotech firms are located in California, and we have more biotech jobs here than all the other states put together.

And it’s no coincidence the biotech industry was founded here when more than 50 Nobel Prize winners have been associated with the University of California.

We are a $94 billion tourism industry and the nation’s top travel destination. Millions of visitors come here every year to enjoy 1100 miles of coast and 300-foot redwood trees.

The laptops on our desk should remind all of us that the California visionaries who founded Silicon Valley in a garage, have changed the way the world lives, learns and leads.

Thanks to California you can find anything you could possibly want on Google…and then when you get tired of it you can turn around and sell it on E-bay.

Our 80,000 farms and ranches produce more than $30 billion worth of goods.  And we export more than $10 billion of those goods – 350 commodities in all – everything from almonds and artichokes to turkeys and tangerines.

Among us we represent Koreatown, Little Saigon, Little Ethiopia, Little India and Little Armenia- little pieces of a lot of places.

California is a giant of a state – but we are a giant in crisis.

Over the last two months I have visited with business leaders in the Silicon Valley who are relocating overseas….I’ve met with farmers in the Central Valley who can not afford to plant crops-resulting in the abandonment of the workforce in nearby small towns. I have visited schools and met with teachers and school board members in San Diego and Norwalk where teachers received layoff notices.

I have met with students who are saddled with debt when they finish college – we should be able to provide more opportunity than that for the next generation.

California is a giant in crisis – and now it is up to us to solve that crisis.

It is up to us to take the fear out of California’s future.

Tomorrow, the governor will unveil his May budget revision.

By all accounts it will not be good news. We have to decide how we will address that news. We have to decide how we will come together to mobilize the incredible assets and resources at this state’s command to solve the budget crisis.

If we can mobilize our resources to respond to major disasters like Northridge and Whittier and Loma Prieta – we must be able to respond to the budget crisis.

The wildfires in Sierra Madre in April reminded us all too well of the infernos we faced in 2007.

The combination of economic recession, the mortgage meltdown and skyrocketing prices for food and fuel are having the same destructive force as an earthquake or fire.

When you lose your home, can’t feed your family, or can’t afford health care for your kids, it’s an earthquake.

When there is a disaster like that, an earthquake or a fire or a flood, leaders put their ideologies aside and step up and say “people are suffering – what do we do to alleviate the pain?”

Members, we have to respond to the current economic crisis the same way we would a natural disaster.

We have to toss aside the boxes we put ourselves in and the labels we place on others and come together to get the job done.

I believe part of that job has got to involve looking at the big picture and really examining California’s overall economic structure.

Most importantly, we have to ask the question of whether a tax structure that was established in the 1930s is sufficient to meet the needs of Californians in 2008.

And, frankly, members I think we need an answer to that question that is developed outside the day-to-day give-and-take here in the legislature.

To answer this question I have asked for help. I have asked 2 former Governor’s – Governor Pete Wilson and Governor Grey Davis to assist the legislature in identifying the leadership and membership of an independent Commission to examine California’s tax structure.

This will be a bipartisan group of California’s brightest to work together for one year to develop recommendations on how we can identify more consistent sources of revenue – the way 12 other States have already accomplished.

As we work to resolve the immediate challenge before us, the efforts of this commission can help us find ways to prevent California from cycling through crisis after crisis after crisis.

Mr. Villines, I am just as committed to working with you and your team. I want to continue and maintain the high level of civility that has been a hallmark of Speaker Núñez tenure.

I want to urgency of our cause to be marched by the unity in our commitment.

The weight of history is not just on my shoulders.

As we all move forward, it should be with the understanding that a society will be judged on the way it cares for its people.

As Speaker, I want you to judge me on how I am able to bring together the best of your talents, your experience, and, yes – the best of your hearts – to help build the kind of society that California deserves.

Thank you members. Let’s get to work.”