Flashreport Blog

[Note: This column was posted on Tuesday evening, then updated this morning.]

Yesterday the Governor and legislative leaders came to terms on a budget (for the most part) — and then subsequent to that the Joint Budget Committee met and voted out the the agreed upon budget details. All of the state’s newspapers are carrying stories with some of the details today.

I took the opportunity to peruse a bunch of the articles — specifically, in the Los Angeles Times, the San Gabriel Valley News, the San Francisco Chronicle, the San Jose Mercury News, the… Read More

California has aggressively raised taxes over the last few years, more than any other state in the union.In 2009 Gov. Schwarzenegger signed what was then the largest state tax increase in U.S. history and just last year Gov. Brown secured a $50 billion tax increase, retroactively effective, on individuals, families, and employers across the Golden State. Last week, though, it seems California taxpayers finally dodged a bullet.

Budget Trailer Bill 415 originally included language that would raise taxes on software sales. However, in Conference Committee last week the bill was stripped of language that would have changed the definition of storage media to statutorily define a computer program “embodied or stored” on storage media as tangible personal property and therefore taxable.

This good news for the state, as this proposal would’ve resulted in a tax on economic… Read More

A massive car tax (actually a collection of various taxes and fees) that was signed into law in 2007 (with no GOP support except, of course, then-Senator Abel Maldonado), billed as “temporary” at the time, is currently set to expire in 2015. Given that Californians face some of the highest levels of taxation in the entire country, it would be some welcome relief for car owners to have these taxes expire.

Of course the adage “there is no such thing as a temporary tax” has reared its head — in the form of two bills, Senate Bill 11 and Assembly Bill 8. Both are similar — and both would authorize a new tax to begin in 2015 right on the heels of the expiring old one. This new “temporary” tax increase would last for seven years, and ultimately shift $2.3 billion dollars from the pockets of car owners into state coffers.

Given that Democrats enjoy “super-majority” status in… Read More

I’ve received a number of calls from reporters over the last few weeks seeking my reaction to the fact that many tax hike bills have stalled in the Legislature. Despite the passage of Prop 30 giving California both the highest marginal income tax rate and the highest state sales tax rate in America, the sheer number of legislative proposals seeking even more revenue is staggering. Especially common are proposals to hit unpopular products or industries like cigarettes, soda, and oil extraction. But, for now, it appears that most of these tax hikes have lost traction.

When I was younger and more naïve, I would have shared the reporters’ assumption that the Legislature isn’t as enthusiastic to raise taxes as we originally feared once the Democrats achieved their super-majority status. But I’m older, wiser and far more cynical than I used to be and, more importantly, I’ve worked within two blocks of the Capitol and have observed what really motivates its inhabitants. In a word, it’s money. And the interests targeted by these bills have lots of it.

For example, not long ago soft drink manufacturers rushed to contribute millions to Jerry Brown’s… Read More

With industrial electricity rates 88 percent higher in California than in Texas last year, the news that the San Onofre nuclear plant in is not going to be restarted is just more evidence of a government created energy crisis in the making.

Due to political pressure from Sen. Barbara Boxer, D-CA for the closure of one of California’s largest power plants, a shortage of electricity is expected, power producers agree. But they claim they can handle it. At what cost?

It is 108 degrees in Sacramento today. If this is a sign of the summer ahead, a shortage of electricity is not good news.

And it’s even tougher to take knowing my $300-a-month California electricity bill would be $61 in Texas.

Gov. Jerry Brown wants us to practice conservation measures. Could this be a Gray Davis redux? “The governor also is urging continued conservation of… Read More

At the end of my typical talk on California and our public employee problems, I usually ask my audience,“What’s the ONE important lesson you should take away with you from my presentation?”

I get the usual responses –“No new taxes!” — “Throw the bums out!” — “Vote GOP!” — “Elect Rider as dictator for life!”(that last one doesn’t come up often enough).

But then I must gently chastise my newly brainwashed disciples, presenting the REAL lesson I’m imparting:“Get a government job!”

After reading this Chris Reed article (posted previously on FlashReport), I might have to narrow that advice –get anUNSKILLEDgovernment job– ideally with a government agency that flies below the media radar (such as a water district).

Incredible pay scale, no training needed (saving YEARS of college time and cost — and thus allowing one to retire years earlier with a fat pension), no… Read More

Unreported other than in a British newspaper, is the fact that Southern California Edison bowed to political pressure from liberal Democratic Senator Barbara Boxer in making the decision last Friday to permanently shut down its two nuclear reactors at San Onofre, because of problems in one of the reactors steam generator systems. The plant had provided electricity for 1.4 million households. The closure of the facility leaves just one operational nuclear power facility in the state, the Diablo Canyon Power Plant in San Luis Obispo County.

The Guardian newspaper reports that week before last Boxer, an ardent supporter of environmental causes in the Senate, contacted the U.S. Justice Department and asked that they initiate an investigation of the plant, which was in the process of restarting one of its two reactors on a limited basis.

California’s available sources of energy have been on the downswing for sometime. Production of electricity by nuclear energy will be greatly reduced by the closure at San Onofre. Add to this that in 2007, the California Energy Commission banned energy acquisition from coal-fueled power plants, here and in other states.… Read More

On May 20, Flashreport posted my open letter to California GOP Chair Jim Brulte.In this letter I urged Mr. Brulte to consider working towards a condemnation of the Common Core Standards (CCS), the Obama administration’s signature education initiative.New CCS academic standards will cost CA $1.6 billion, per the state Dept. of Education, and will do nothing more than replace our current world-class standards.Unless you’re a stockholder of Houghton-Mifflin (new standards require new textbooks) or Educational Testing Service (new standards require new standardized tests) there is no reason to expect a dividend, educational or financial, from the purchase of these new standards.

I pointed out in my letter to Mr. Brulte that Gov. Brown made much show of approving payment for CCS out of Prop. 30 funds (although he understated the CCS cost at $1 billion), meaning that Californian’s have voted to tax themselves to pay a windfall profit to special interests in publishing and testing.On its surface that sounds like a ready target for GOP attack, but no attack… Read More