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FlashReport Weblog on California Politics

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BOE Member George Runner

Governor’s New Enterprise Zone Proposal Just as Bad

I have reviewed the Governor’s latest budget proposals related to Enterprise Zones, and they are as bad as the original proposal that would have eliminated the program altogether.

It’s Still a Tax Increase:

First of all, this would still impose a tax increase on thousands of California businesses that would be retroactive. Many of these businesses have survived thanks in large part to the Enterprise Zone program, and have kept their employees working in California during the economic recession.

High-Tech and Bio-Tech Industries Harmed:

The Governor’s limitations on tax credit carryovers would be particularly harmful to startup companies especially in the high-tech and bio-tech sectors that would be unable to utilize the Enterprise Zone tax credits.

Governor’s Enterprise Zone Plan Would Force Job Layoffs:

The small business community has reviewed the Governor’s plan and they are alarmed. A small printing firm in San Diego had this to say about it: “Thanks to Enterprise Zone tax credits, we were able to retain employees that we otherwise would have been forced to lay off… Read More

Meredith Turney

California’s Prison Break

I’m still fuming about the Supreme Court’s decision forcing California to release 46,000 prisoners into our streets. The response from conservative, common sense pundits has been pretty universal: this is an outrageous decision that will result in more crime. The real travesty in all of this is that it could have been avoided. As I mention in the following video blog, money isn’t the issue. At least, not the amount of money, just how it’s being spent…

Even for jaded politicos, it’s shocking that Governor Brown’s initial response to the matter is to turn it into a blatant appeal for higher taxes. It’s almost like extortion: your wallet for your safety. Even the Sacramento Bee acknowledged the crass politicking with this headline: “Jerry Brown calls prison ruling a reason for taxes”

While it might be more frightening to be mugged by one of the thugs that will soon… Read More

James V. Lacy

I am not Jerry Brown’s love child

I had a chance to sit with Art Laffer, Sally Pipes and a few supporters of the Pacific Research Institute Wednesday after lunch and Art and I shared some “old times” from the 1978 Proposition 13 campaign, when he began a strong association with Howard Jarvis as a rising star in economics, and I was serving as Jarvis’ lowly but eager assistant, carrying his brief case from speech to speech. There was never much reading material in Jarvis’ briefcase, but Laffer offered that he really was a genius, a guy with guts and native intelligence who never gave up trying after several failures to reform California’s skyrocketing property taxes.

It is not confidential that right after Proposition 13 passed by a landslide in June, 1978, that Jerry Brown called Art Laffer and they spent several days together in conference about how to implement it and what to expect in the economy. It is also no secret that Jarvis and Laffer both subsequently endorsed Democrat Jerry Brown for Governor because of his pledge to fully implement the initiative, which he honestly did do. (Jarvis also endorsed the Republican candidate, but the commercial he cut for Brown was… Read More

BOE Member George Runner

Little to Cheer in Governor’s Revised Budget

Overtaxed Californians will find little to cheer in the Governor’s revised budget proposal.

Despite the Governor’s concession to postpone higher income taxes for a year, he continues to push for legislative approval of higher sales taxes and car taxes this year.

And although the Governor dropped his effort to abolish enterprise zones—and the jobs they create—he continues to miss the big picture: Californians need jobs, not higher taxes.

Our best hope for new revenues isn’t higher taxes, but new jobs fueled by a recovering economy. Unfortunately, the Governor has yet to truly lift a finger in the fight for California jobs.… Read More

Jon Fleischman

Bill Leonard: The Budget Offensive Gets Offensive

Over the next couple of days we’ll have worked out the kinks in the reformatted FR blog. Normally this post would come from Bill Leonard himself, but in this instance I am posting up from my account. Enjoy! – Flash

THE BUDGET OFFENSIVE GET OFFENSIVE The Honorable Bill Leonard Well, charm did not work. Governor Brown has been romancing Republicans for 3 months now with his do it my way and ignore the consequences message and lo and behold it has not worked. Now its no more Mr. Nice Guy. This week Brown has resorted to name calling and veiled threats. He has moved beyond the slogan of let the voters decide to the honest admission that he needs tax increases and he needs them now.

The truth is that from last Fall onwards tax increases have been the basis for his budget plan. The details of putting them on the ballot and getting the voters to approve them all were casually assumed by Jerry Brown despite obstacles that should be daunting. I love the new twist. The Governor has re-interpreted his political promise of voter approval to suggest that… Read More

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