FLASHREPORT

WSJ's Moore: Hasta La Vista, Arnold

by Jon Fleischman - Publisher (bio) (email)(print)

From today's Wall Street Journal Political Diary E-mail...

Hasta La Vista, Arnold

Some things never change in the Golden State. Seven weeks into the fiscal year, California still has no budget and faces a Pacific Ocean-sized $15 billion deficit. On Wednesday, Governor Arnold Schwarzennegger offered a "compromise" plan that kicks the legs out from his own party with a big new sales tax increase. "It's time to put ideology aside," he insisted.

Now he faces a revolt from Republicans in the legislature who think this is precisely the time to be ideological. "Any tax increase plan won't pass with Republican votes -- absolutely not," a defiant Mike Villines, minority leader of the state assembly, told me shortly after the governor's scheme was announced. Mr. Schwarzenegger wants to raise the sales tax by one percentage point, which in jurisdictions like Los Angeles would raise the total sales levy to 10% -- one of the highest in the nation. "It will hurt the state and hurt people on fixed incomes," Mr. Villines protests.

He and his colleagues offer their own solution. First, no new taxes in a state that already has nearly the highest income and sales tax burden in the country. Second, a "hard" budget cap that limits spending increases to the rate of inflation plus population growth. Under Governor Arnold, in contrast, the budget has grown 40% in just four years.

Mr. Villines' Republican lawmakers face a stacked deck in the Democratic liberal majority, their own GOP governor, and the California media. Assembly Republicans walked out of a meeting with the governor earlier this week when he started talking new taxes, but Democrats desperately wanted an income tax increase, so Mr. Schwarzenegger views a sales tax hike as a down-the-middle "compromise."

This may be a war California conservatives can win for once in their tax-and-spend state. "There's a silent majority in California against yet another tax increase," Mr. Villines asserts. With gas prices, food prices, unemployment and mortgage foreclosures all rising in the Golden State, he may be right.

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State Budgeting for Dummies

by Supervisor Matt Rexroad - Statewide (bio) (email)(print)

As the state budget continues to unfold I am struck at how the only ways that we have to deal with the problem is to take power away from our elected leaders.

Speaker Nunez previously argued (Prop 93) that we don't allow Legislators enough time in Sacramento to be able to figure things out.  Many of us often talk about how elected leaders need more discretion.  Despite this, when they are given discretion it is abused.

In an ideal world I would oppose spending limits because I want to allow elected leaders to make good choices.  Yet time and time again that has not happened.

Revenues to the state have rocketed up over the past eight years or so.  If we were looking for a cushion to be able to set the ship straight that opportunity has passed.

The spending limits being advocated in this budget solution move us to "State Budgeting for Dummies".  In this case it will not even be taken by the voters through the initiative process. It will be offered up as a sacrifice or punishment for past mistakes.  This budgeting process and the string of initiatives on the ballot are rendering the Legislature completely without consequence.

I never want to hear the statement again about how initiatives are unnecessary.....that an end run is being made around "proper forms" of government.  The Legislature as a whole is not able to deal with the responsibility of managing the resources it is trusted to govern.

Let's just set formulas up in advance to run our state government.  We plug in the amount of revenue each year and let a computer program run the state finances.  We could eliminate the Department of Finance, Assembly  Budget Committee, and Senate Budget Committee.  We are not going to be too far off from that soon.  Most of this stuff is just minor tinkering on the edges.

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Today's Commentary: State Senator Lou Correa calls himself "A different kind of Democrat" -- We'll see...

by Jon Fleischman - Publisher (bio) (email)(print)

"I'll oppose higher taxes..." proclaimed then Assemblyman Lou Correa in a letter (see it here) he mailed to Central Orange County voters as he made his case for why he, and not his opponent, should be elected to the State Senate.  If his promise, emphased in boldfaced text, in a personally signed letter to voters wasn't emphatic enough, in terms of where Correa promised he would be on tax increases, then there was the glossy full-color mailing, with the words emblazed on the front: "Where I stand on... Taxes."  Open up the mailing (see it here), and he says, "I don't support tax increases without a vote of the people..." -- the mailer ends with Correa's campaign slogan:  "A different kind of Democrat."
 
One has to wonder what kind of treatment Correa is getting, behind the scenes, from the ever-petulant and immature Senate President Don Perata.  Assembly Speaker Karen Bass, whose demeanor compared to Perata is quite even-keeled, banished her "different kind of Democrat" to a tiny office outside of the Capitol, and killed all of her bills.  Is a similar fate in store for Lou Correa if he doesn't break his word, and his promise to voters, and vote for billions of dollars in new taxes?  Unlike Parra, Correa is only mid-way through his first term in the State Senate -- and presumably he wants to return for a second term.  Breaking a "no taxes pledge" that was as clearly articulated as Correa's would be a severe impediment to that second four-year term, as Correa won his seat by a narrow margin.
 
**There is more - click the link**

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Plumas County: Dealing with environmental regulations

by Supervisor Matt Rexroad - Statewide (bio) (email)(print)

Most of you that read this may know that Plumas or Yolo County exist -- but you just know that they are "up there".  We do exist and we often have to deal with the policies that have been advocated for by people that live in and represent the more urban areas of the state.

Please take look at this recent article from the Plumas County News.  It is an indication of things to come.

The Board of Supervisors there is dealing with forestry practices that are rarely proposed by the people that have to deal with the consequences.

When some of the rural parts of California burn in catastrophic wildfires the people of Plumas County are often put into dangerous situations.

Surely many of you have different views about climate change policy.  However, this may provide the silver bullet for people that have been unable to remove the fuel for catastrophic wildfires.  Getting rid of the fuel may reduce the amount of carbon released into the air during a fire.

Plumas County is exactly right in challenging federal forestry practices.

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SB 1407 Ron George's Revenue Gift From You

by Mike Spence - Los Angeles County (bio) (email)(print)

Come Hell or High-water Ron George like getting his way. Whether it re-defining marriage to his liking, ignoring previous decisions to get the parental consent result he wated, violating private property rights or religious rights, Ron George and the Imperial Court he runs gets his way.

Now, Georgethrough the Judicial Councilis poised to get his way with courthouses and a 10 billion dollar revenue bond through SB 1407.

SB 1407 raises fees on all kinds of court filings including parking tickets, family court filings, traffic violations and attending traffic school in order to get 5 billion dollars worth of money for courthouse construction.

Whats wrong with that? Lots of reasons.

Why are courthouses getting special budgetary treatment over other budgetary items? Shouldnt the General fund make them a priority?Howrd Jervis Taxpayers Association thinks so, they oppose the bill.

May be we could re- allocate a mere $500 million a year and not pay billions in interest. It takes 10 billion in fees to get 5 billion in buildings.

This is an end run around the people of California that rejected courthouse bonds in the past. An end run around the people that Ron George and others would love to see happen. After all going around the people is something they are used to.

Finally, the burden falls on people that really dont use the court system or can least afford it. When was the last time you heard of a parking ticket violation going to court? The vast majorities of these infractions are handled in the mail. You never even see the courthouse. Or your taillight is out and you havent fixed it because you bought gas instead and presto you have a bigger fee to pay.

If Republicans want to fund Ron Georges courthouse program they shouldnt go along with taxing and feeing the poor and those that dont use it. Take a play of the Democratic playbook. Why not a windfall profits tax on law corporations that get millions of dollars in settlements or judgments. They tie up the court system more that grandma's broken tail light.

I wouldnt hold your breath for that solution.

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Welcome To The Doghouse

by Jon Fleischman - Publisher (bio) (email)(print)

The current occupant of the Capitol's smallest legislative office welcomes Assemblywoman Parra to "the doghouse" (which is the nickname for the smallest office in the building).

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Today's Commentary: An Interview With the Sacramento Bee's Dan Weintraub: A Conversation About The Conversation

by Jon Fleischman - Publisher (bio) (email)(print)

Veteran FlashReport leaders are quite familiar with the writings of Sacramento Bee columnist Dan Weintraub.  I have actually known Dan for almost two decades, going back to when he actually worked for the Orange County Register.  Dan's insightful and inciteful columns are always great reading and we almost always provide FR readers to links to his regular columns in the Bee on our main page daily news links.  In addition to being a recognized columnist who has an important impact on policy and politics in the Golden State, Dan (pictured) was truly a pioneer in launching his Insider blog on the Sacramento Bee website years ago -- serving as an inspiration to many of us who followed him.  

In June, I had a chance to sit down with Dan in Sacramento, and he enthusiastically shared with me that he would be spearheading a new endeavor for the Sacramento Bee called The Conversation.  At the time, I told him that once it was up and running, I would love to interview him about it for FR readers.  Well, he has in-fact started in his new project, and below is an interview I conducted with Dan yesterday...

FlashReport (FR):  Dan, there are a lot of changes taking place in the newspaper business these days.  A lot of restructuring it going on, to see how newspapers, and their websites, can adapt to a new dynamic -- an interactive experience for readers.  You are heading up an exciting new project for the Sacramento Bee, for whom you have been a political columnist for many years now.  Can you share with FR readers more about the changes at the Bee, and what you will be doing?"

**There is more - click the link**

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What's the rush on the budget?

by Shawn Steel - Statewide (bio) (email)(print)

Democrats are actually counting the days since the budget was supposed to be approved. Who cares?

Not real people. Not the producers. Not the private sector workers. Not families who want to be left alone. Not those who find government a busy -body-nanny-state-regulators.




Only those on the take. Those who take state pay checks. And, they should be comfortable waiting. After all one of the key reasons for the massive hemorrhage of red ink,  are government unions greed in fleecing taxpayers at any cost.





Any budget delay is good news for taxpayers.

As government grows freedom shrinks.

Dan Walters suggested recently there remain huge structural barriers for any budget deal. In 2000 Gov. Davis's "disastrous decision"  to squander a one-time cash windfall. Secondly, democrats sharply increased state worker pensions at the cost of an additional 2 billion a year. Thirdly, doubling unemployment benefits. The UI Fund is nearing bankruptcy. 

Add the very liberal, former social worker and Jimmy Carter appointee, Federal Judge Thelton Henderson , who now threatens to exacerbate  the California catastrophe by demanding some 8 billion dollars so that convicts can have better care than many lawful Californians. 



So who wants a budget passed, without real structural reforms? 

Unless the democrats and the Governor can agree  of real reform, with the most united group of Republicans in memory...let the budget process drift along. In fact, the legislature ought to take a long vacation.

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Governor joins Dems to push for tax increases in Big 5 meeting...

by Jon Fleischman - Publisher (bio) (email)(print)

Update: 7:15pm:  In my haste to post on Big 5 meeting below, I erroneously said that the Governor was pushing an INCOME tax. That is an error. I meant to say SALES tax. But to be honest, exactly what taxes the Governor was advocating in the meeting is assumed on my part -- it's not specified in Villines' comments- Flash

"Post-Partisan" Arnold has become a royal pain in the celebrity posterior.  Post-Partisan Arnold isn't the guy who we re-elected in 2006 who ran on an emphatic platform of never raising taxes.  Post-Partisan Arnold is the guy that the Governor of the 2006 campaign trail "morphed" into after he was re-elected.  Post-Partisan Arnold has no "team" -- he is a team of one.

Today the Governor hosted a meeting of the Big 5 (The Governor and the four legislative leaders) in his office to see where everyone stands on budget negotiations.   Apparently, according to the Sacramento Bee story covering the meeting, Assembly Republican Leader Mike Villines had to walk out of the meeting.

He apparently came out of the meeting confirming that the Governor STILL is advocating a massive increase in the state's income tax.  Villines line to the press corps tells it all: "I left the meeting very frustrated.  I'm tired of being in a room where three people keep talking about tax increases."

It's very frustrating that not only is Post-Partisan Arnold a tax and spender (remember that he, along with former Assembly Speaker Fabian Nunez, proposed the largest business tax increase in the state's history to finance a massive increase in government's role in health care here in California) -- but that he would be actively pressuring Republicans to vote for a sales tax increase...  It's galling, and, frankly, a betrayal.

Thank God for our the resolve of our Senate and Assembly Republicans and their resolve against tax increases.  They are holding the line despite the fact that what the results of the 2006 election were supposed to mean is that they, along with the Governor, would be drawing the line in the sand against growing government through higher taxes.

As for the Governor, Assemblyman Chuck DeVore said it the best on the John and Ken show a few minutes ago -- our fascination with electing a celebrity launched into office someone who had no proven track record and who has placed in his key policy positions Democrats, largely those who were the closest advisors to his predecessor, recalled and disgraced Governor Gray Davis.

Oy vey!

The only bright spot is that if the budget isn't adopted by the time of the Republican National Convention, Post-Partisan Arnold has said he will not be attending the convention, where he is currently slotted to speak (undoubtedly about the need for Republicans to hitch their wagon to Al Gore's message of global warming hysteria).

[Here is a link to fill out an online form to share your thoughts on all of this with the Governor.]

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MUST LISTEN: Arnold vs. John and Ken

by Jon Fleischman - Publisher (bio) (email)(print)

I'm not sure if the Governor's pain medication for his recent knee surgery impaired his decision-making, when he picked up the phone and called into the John and Ken radio show yesterday, and defended his discussions with state legislators and his proposal to increase the state sales tax as a means to get the votes to pass a state budget.

The show is absolutely fabulous political theatre -- with the Governor trying to defend the tax increase and his battle against global warming -- while he is rather mercilously strafed by John and Ken.

There's one point in the interview where they ask, "Are you still on anethesia?"  The point I made above.

Here is the link to the John and Ken Show website.  Click on the 8/18 3 p.m. hour broadcast to listen.

While the Governor's call into the show starts around the 12 minute mark in the show, he follows a GREAT interview with FR friend Assembly Republican Leader Mike Villines -- so I actually encourage you to take a break from what you are doing, and listen to the whole segment -- first Villines and then Schwarzenegger.

For those who would say that I am hard on the Governor, and that he should get some sort of credit for calling into the show in the first place -- well, I disagree.  The Governor PROMISED me, and thousands and thousands of GOP donors and activists (and all of the voters, for that matter) that he would NEVER raise taxes.  So since he is breaking his promise as he actively lobbies the legislature for a sales tax increase, I offer him no safe quarter here. 

(h/t to Shane Goldmacher over at the Bee's Capitol Alert for tipping us off to the Governor's J&K Show appearance.)

(Assemblyman Chuck DeVore just emailed that he will also be on John and Ken -- like right now.  So you can check out his performance as well.)

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If Lieberman's In, I Am Out

by Jon Fleischman - Publisher (bio) (email)(print)

Politico.com is reporting the John McCain is seriously considering a Lieberman Surprise, tapping the Democrat-turned-Independent U.S. Senator (and former Democrat Veep Nominee) to be his running mate (the photo is of Lieberman "running" with the last guy who asked him to be a running mate).

Because I have a blog, I thought I would share my instant reaction to this news (you know, "ready-fire-aim" - my specialty)...

I choose not to put much credence in such an idea as it is sign the McCain is looking in exactly the wrong direction (to his left) for a VEEP nominee.  If you are a conservative and you win the primary, I can understand the idea of moving to the middle at this point.  But McCain beat more conservative candidates to win his primary, and he needs to use the convention, and his VEEP pick to consolidate Republicans behind his candidacy with enthusiasm.

For the record, if he does tap a non-Republican as a running mate,, the Senator will be looking for at least one new at-large Alternate Delegate for the convention -- because I will cancel my trip.

If McCain, the moderate, doesn't balance his ticket with a conservative running mate, he will make my job and that of the other State GOP officers in 50 state parties around the country -- getting out the GOP vote -- that much more difficult.

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Reminder: Senator Correa

by Supervisor Matt Rexroad - Statewide (bio) (email)(print)

Dear Senator Correa:

I just wanted to remind you of this letter that you sent out when you were a County Supervisor (click the link below)..

It might be helpful in your consideration of the state budget.

Matt Rexroad

Attachment:
     Correa Letter

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Californians Pay The Most In Gas Taxes

by Jon Fleischman - Publisher (bio) (email)(print)

In case you were wondering, Californians pay the highest prices for gasoline in the entire nation.  Check out the chart below.  If you can't read it, you can open the attachment below to see it more clearly.

Maybe it's time to give Californian's relief at the pump by decreasing gasoline taxes?  Especially given the obscene reality that as gas becomes more expenses, gas taxes (which are figured as a percentage) actualy go UP! 

At minimum, someone should introduce the, "Don't punish working Californians with higher taxes" Act, lowering the tax while prices are high, to keep California government from "profiteering" during this crisis...

Attachment:
     Gas Taxes By State

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Today's Commentary: Promise Made, Promise Broken - Parra, Galgiani Chart Opposite Courses

by Jon Fleischman - Publisher (bio) (email)