As I watched Bernie Madoff finally head to prison earlier this week after pleading guilty to one of the biggest Ponzi schemes in history, I couldn’t help but think of the similarities between what Madoff did to his investors and what the Governor and the State Legislature are doing to the taxpayers of this state.

We were told just last week that the largest tax increase in state history was, “a comprehensive solution to the state’s $41.6 billion budget shortfall.” The non-partisan Legislative Analyst’s Office just announced yesterday that even if the blackmail measure, Proposition 1A, is approved by the voters in May and the state of California gets every dollar of the federal economic stimulus it hopes to get, that California will face an $8 billion deficit through June 2010. In addition, the Legislative Analyst projects continuing deficits of up to $25 billion. What makes this even worse is that the figures don’t take into account the billions more that the state is going to have to pay… Read More

As I watched Bernie Madoff finally head to prison earlier this week after pleading guilty to one of the biggest Ponzi schemes in history, I couldn’t help but think of the similarities between what Madoff did to his investors and what the Governor and the State Legislature are doing to the taxpayers of this state. We were told just last week that the largest tax increase in state history was, “a comprehensive solution to the state’s $41.6 billion budget shortfall.” The non-partisan Legislative Analyst’s Office just announced yesterday that even if the blackmail measure, Proposition 1A, is approved by the voters in May and the state of California gets every dollar of the federal economic stimulus it hopes to get, that California will face an $8 billion deficit through June 2010. In addition, the Legislative Analyst projects continuing deficits of up to $25 billion. What makes this even worse is that the figures don’t take into account the billions more that the state is going to have to pay in the future to cover… Read More

Apparently, union bosses have now resorted to equating union membership to serving in the military. It was recently reported that mailings going out in our state and directed at Senator Dianne Feinstein say, “Americans should be able to join a union the same way we join the military…by signing our name.” This demonstrates such a profound misunderstanding of the Employee ‘Forced’ Choice Act (EFCA) that one has to question whether the message’s advocates had any intention of making intellectually honest arguments or whether outright deception was their goal. Unfortunately, as the debate on EFCA has evolved, advocates of taking away a secret ballot from workers and mandating government arbitrators on small businesses have decided that they are not able to argue about the merits of their case. In turn, they have resorted to making comparisons that stretch both the imagination and truth. First off, the men and women that voluntary decide to join our military do so to protect every American and deserve the highest level of praise and respect. Likewise, many that join unions do so to provide for their families and better… Read More

Take a minute this weekend to answer the following question:

The Legislative Analyst’s Office announced today that revenue in the recently adopted State budget will fall short of projections by $8 billion, with significantly increasing budget shortfalls in subsequent years. Should that news be filed under:

A) Color me surprised,

B) We told you so,

or

C) Fill in the blank ?

If you select C, please provide an answer as to where you believe the news should be filed. Be creative. Post it in the comments or shoot me an email. Let’s not assume that "Tax increases should have been higher" is the best answer.

In the meantime, read Senator Dennis Hollingsworth’s take on the matter:

Senator Hollingsworth Statement regarding Legislative Analyst’s Office Projecting $6 Billion Deficit “The fact that the LAO is projecting a $6 Billion deficit for the 2009-2010 Budget is not a surprise. I… Read More

Insurance Commissioner and GOP gubernatorial hopeful Steve Poizner opposes Proposition 1A, his spokesman, Kevin Spillane, assured me last night.

I felt compelled to give Kevin a call for clarification because there were conflicting statements coming out of the Poizner campaign. Yesterday longtime FR blogger Jennifer Nelson wrote about Poizner’s remarks to a Bay Area Republican group whose meeting she attended, at which, in a response from Nelson, Poizner was clear that he opposed 1A, going even further to say that he would be taking a “major role” in leading the opposition effort.

Here is the relevant excerpt from Nelson’s blog post:

Insurance Commissioner and GOP gubernatorial hopeful Steve Poizner opposes Proposition 1A, his spokesman, Kevin Spillane, assured me last night.

I felt compelled to give Kevin a call for clarification because there were conflicting statements coming out of the Poizner campaign. Yesterday longtime FR blogger Jennifer Nelson wrote about Poizner’s remarks to a Bay Area Republican group whose meeting she attended, at which, in a response from Nelson, Poizner was clear that he opposed 1A, going even further to say that he would be taking a “major role” in leading the opposition effort.

Here is the relevant excerpt from Nelson’s blog post:

I am not one to reprint press releases — but this missive from the Poizner campaign was awesome…

Does Jerry Brown Oppose Both the Budget Deal and Proposition 1A Over Taxes?

Political chameleon Jerry Brown is at it again. This week he's claiming to be a born-again taxpayer advocate who'll oppose new taxes.

Brown made his claims in a lengthy interview with the San Francisco Chronicle's Carla Marinucci that she posted on the newspaper's politics blog on Tuesday. The column states at one point:

The California governor's job this time around could be a no-win situation, he acknowledged. It's an era when just the state deficit is out of control and budget battles are bloody. There's no one easy answer, “there's just pain,” he said.Still, “I would not be advocating new taxes, I'll tell you that,” he said. Already, California is “one of the highest tax states around,” he said. “So we've got to be competitive. We can't drive all the jobs out and tax the few people who stay.”

It's a given that this is ironic coming from… Read More

It seems appropriate on a day when the FlashReport is looking at the issue of earmarking to note that California Congressman Darrell Issa has announced that he is no longer going to be requesting earmarks.

Issa joins four other California Republicans, and 28 other Members of Congress nationally.

The other California Representatives who are on a diet of "no pork" include John Campbell, Duncan D. Hunter, Tom McClintock and Devin Nunes.… Read More