Actually, there are a thousand things you need to know about this budget crisis, but let’s do three, real quick:

1. We haven’t even sold the "infrustructure" bonds passed last November, and now we really can’t due to our budget situation. This is why the Lincoln Club of Fresno County opposed the bonds in the first place. Most journalist don’t know what a bond is, so this isn’t being mentioned in budget crisis coverage.

2. Working on a "health care deal" during this crisis isn’t even stupid – its just plain political malpractice. The resulting ballot initiative in November, 2008, aimed at raising our taxes, will be a defining issue for the GOP and actually give the State GOP something to do this year. Yes!

3. Assembly Leader Mike Villines yesterday to me: "tax increases are dead on arrival in the State Assembly, there isn’t a revenue problem." The Governor better get his meat cleaver out. Villines told me yesterday that even termed out Republicans won’t support new taxes.

Even the most elemental analysis of the state budget over the past several… Read More

As this year winds down, it is only appropriate that we have the ultimate wasteful story to help us go out with a bang. Insurance Commissioner Steve Poizner deserves many thanks for providing this story. If it weren’t for his direction of the Department of Insurance, hundreds of millions of dollars may have been squandered without notice. Fear not, “the Ghost of State Fund Past” has now come to haunt former Insurance Commissioner and current Lieutenant Governor John Garamendi in the form of the biggest audit released this year.

According to the Los Angeles Times (December 11, 2007), a hard-hitting state audit reveals that "California’s scandal-plagued government-run workers’ compensation insurance company spent more than half a billion dollars over the last decade for outside marketing help that often provided ‘minimal services’….[T]he report paints a picture of an obscure rogue operation with more than $22 billion in assets, little oversight, minimal public checks and balances, and indiscriminate spending with little attention until… Read More

Now that I am not making a living at politics, I think I understand why people get so frustrated by what they see going on in politics. These guys must think we are stupid.

Nunez says yesterday he wants to raise the car tax. John Laird, chairman of the Assembly Budget Committee, says "this problem cannot be resolved by cuts alone. It will take a combination of tax increases and spending cuts."

Raising the car tax was in the talking points of Steve Peace, chairman of the Senate Budget Committee in the Gray Davis years. He actually put in a bill to allow the Governor to raise the car tax unilaterally, without a vote of the Legislature. When the Governor tried to do that, he got recalled. Of course, the people that counseled the Governor to raise that tax didn’t lose their jobs, they just went to work for the next Governor.

Tax increases and budget cuts were in the talking points of John Vasconcellos, Chairman of the Assembly Budget Committee in the 1991-92 budget crisis. Then Governor Pete Wilson bought into that line, and in a $14 billion deficit (on a $41 billion budget as opposed to today’s $111 budget), supposedly cut… Read More

Today we are pleased to feature this guest commentary from Jon Coupal, President of the Howard Jarvis Taxpayers Association…

Shades of Gray Davis

The State Capitol is hemorrhaging red ink. The non-partisan legislative analyst’s office (LAO) has released a report showing that the revenue shortfall from the budget just passed in August could exceed $10 billion. Fortunately, the governor and the Legislature established a modest $4 billion reserve or the deficit would be much higher. How did we get into this mess? If this seems like déjà vu all over again, you’re right. It’s been just seven years since then Governor Gray Davis, who inherited a budget surplus, began to run up massive state deficits… Read More

Today we are pleased to feature this guest commentary from Jon Coupal, President of the Howard Jarvis Taxpayers Association…

Shades of Gray Davis

The State Capitol is hemorrhaging red ink. The non-partisan legislative analyst’s office (LAO) has released a report showing that the revenue shortfall from the budget just passed in August could exceed $10 billion. Fortunately, the governor and the Legislature established a modest $4 billion reserve or the deficit would be much higher. How did we get into this mess? If this seems like déjà vu all over again, you’re right. It’s been just seven years since then Governor Gray Davis, who inherited a budget surplus, began to run up massive state deficits… Read More

Lest anyone doubt the power of earmarks, various people (including yours truly) proposed that one way to close the budget stalemate between Republicans and Democrats would be to eliminate all $20 billion in earmarks from the budget. We would do this regardless of whether those earmarks were proposed by Republicans or Democrats. This idea got some traction for a while. Then, following a meeting with her caucus, Speaker Pelosi rejected the idea and said that they would cut other spending to try and close the gap. Similarly, the Intelligence bill is riddled with abusive earmarks, but a proposal to eliminate them was defeated on the floor.

Earmarks should be the first thing we cut when we are looking for money. Apparently, this Congress believes that earmarks should be the last thing we cut.

Chaos in Congress: Well, this was supposed to be the last week Congress would be in session for the year as we were to resolve many of the disputed issues which have impending deadlines.

It was supposed to be. But in fact, not a single one of these issues was brought to a vote. One of the most dysfunctional Congresses in history reached a new level of… Read More

Just off the transom, Assembly Budget Committee Vice Chairman Roger Niello (R-Fair Oaks):

“With recent reports showing that next year’s budget deficit has grown to $14 billion, it’s clear that lawmakers must act to get the deficit under control. I’ve been disappointed to see some in the Legislature immediately seize upon our growing deficit with a call to raise taxes rather than reduce state spending. As the old saying goes, the first thing you should do when you find yourself in a hole is stop digging. Proceeding with a course of action that the voters have summarily rejected will only deepen the current budget crisis. We must remember that frustrated Californians sent a powerful message to Sacramento the last time taxes were irresponsibly raised by recalling the Governor.

Now is also not the time to grow government. Our state simply cannot afford the massive government-run health care program that will be voted upon next week, which includes, at a minimum, an $8 billion tax increase. Taxpayers deserve responsible leadership that will make the necessary decisions to deal with California’s spending problem,… Read More

It appears we will be taking up a highly amended form of AB 1X Monday, first in Appropriations Committee in the morning and, zowie, ‘if’ it passes out of Committee,the Assembly floor session is already scheduled for 1PM.

Not much detail yet on what the Guv’s office and the Speaker’s officeare including in the plan. Talk is the Senate isn’t too interested and will not be convening.… Read More