This morning the “Big 5” will gather to put the finishing touches on a budget deal – so we’re told. Of course, from all accounts, the deal that has been put together is a mixed bag. First and foremost, the fact that there are no tax increases on the table demonstrates how budget negotiations can go differently when Governor Schwarzenegger stands tall for taxpayers, as he pledged to do in both of his elections – and it is also a significant feather in the cap of Republican Leaders Dennis Hollingsworth and Sam Blakeslee, both of whom took on the leadership of their respective legislative caucuses after their predecessors rather notoriously used their positions to become architects of over $16 billion in higher income, sales and car taxes – “in return” for faux reforms and selective tax breaks for major corporations.

So while the wallets of taxpayers appear to have been protected from direct assault by state government this go-around, there are some aspects of this budget deal that are extremely troubling – and frankly show that liberal Democrats Darrell Steinberg and Karen Bass worked very hard to maintain what we believe are unsustainable levels of… Read More

Quote of the Week: “It must be said, that like the breaking of a great dam, the American descent into Marxism is happening with breath taking speed……….. The final collapse has come with the election of Barack Obama. His speed in the past three months has been truly impressive. His spending and money printing has been record setting, not just in America’s short history but in the world. If this keeps up for more than another year, and there is no sign that it will not, America at best will resemble the Weimar Republic and at worst Zimbabwe.” – Editorial by Pravda (Russia’s largest newspaper) April 27, 2009

Socialized Medicine: If there was any doubt that the House Democrat Health Care plan would be anything but full-blown, single payer, socialized medicine it has now been cast aside with the release of the 1,017 page bill this week. The bill has already passed two of the three committees to which it has been referred to in the House. Not a single Republican voted for it in either committee, so any pretext of bipartisanship should also be cast aside. The bill will be… Read More

While Speaker Bass may be upbeat about a tentative Big 5 budget deal today, sanity still says that a long-term solution — over the next few years if not part of this budget — must include addressing the inherent inefficiencies in a bureaucracy gone mad. You know, what the Governor once called blowing up boxes.

As an example, FR friend Janelle Riella contacts us with this story…

My family is in the trucking business. When we receive renewal notices from the DMV, they are usually sent back to the DMV in bundles with one check for all of the vehicles. Just today, my mother received a note from the DMV that is was TOO EARLY to be paying the registration (the due date is September 2009), so they will be sending her a check back in the mail. The DMV sent her the renewal notice in the first place!! Now, they are going to reimburse her (which on average is $25 plusto get a check cut in the private sector) and she will have to turn around and pay the bill in August? They can’t just send her the new tags?

What is wrong with this state???? OK, for those thinkingthat… Read More

Word from all sources is that the confidential meetings of Governor Schwarzenegger, Senate President Darrell Steinberg, Senate GOP Leader Dennis Hollingsworth, Assembly Speaker Karen Bass, and Assembly Republican Leader Sam Blakeslee – with only their most senior staff members present – has resulted in the framework for a deal to balance the state’s current budget, which currently is projected to spend $26.2 billion more than the tax revenues coming into fund it.

The last time the so-named “Big 5” came to a budget deal, it was February and it was a raw deal for California taxpayers. Not only did the secret meetings results in well over $16 billion in higher sales, income and car taxes, as well as a families with children losing a key tax exemption – but that deal also produced the ill-fated Proposition 1A, which required “adult supervision” from California voters to reject any more tax increases to deal with the state’s fiscal woes.

As I look back at the terrible big budget/big taxes/open primary deal of February – one of the biggest problems with the deal was not even the terrible public policy within it, but the flawed “secret” process,… Read More

Word from all sources is that the confidential meetings of Governor Schwarzenegger, Senate President Darrell Steinberg, Senate GOP Leader Dennis Hollingsworth, Assembly Speaker Karen Bass, and Assembly Republican Leader Sam Blakeslee – with only their most senior staff members present – has resulted in the framework for a deal to balance the state’s current budget, which currently is projected to spend $26.2 billion more than the tax revenues coming into fund it.

The last time the so-named “Big 5” came to a budget deal, it was February and it was a raw deal for California taxpayers. Not only did the secret meetings results in well over $16 billion in higher sales, income and car taxes, as well as a families with children losing a key tax exemption – but that deal also produced the ill-fated Proposition 1A, which required “adult supervision” from California voters to reject any more tax increases to deal with the state’s fiscal woes.

As I look back at the terrible big budget/big taxes/open primary deal of February – one of the biggest problems with the deal was not even the terrible public policy within it, but the flawed “secret” process,… Read More

Apparently we are getting closer on agreement of a fix for the massive state budget shortfall. From what I hear, the deal does not include tax or fee increases, which is great news. That needs to be the first priority for budget negotiators as California taxpayers already are carrying too much of a burden with their current obligations to state government.

That said, I am wondering whether or not Sacramento politicians are tightening the proverbial belt enough. I recognize that trying to deal with a shortfall of over $26 billion is not an easy task. Especially for Sacramento Democrats who are either union-controlled and don’t have the latitude to make many needed cuts, or are liberal ideologues who would rather push California to the brink than see a decline in redistributive wealth policies.

The reason that I say this is that from talking to sources and reading newspaper reports, it would appear that borrowing and gimmicks will make up billions of dollars of “solutions” for this crisis. Current negotiations call for borrowing billions of dollars from local governments – which is a terrible idea (if raising taxes is the worst alternative,… Read More

Today, I am particularly proud of the candidate that I support for Governor – Steve Poizner. Steve was the only candidate running for Governor, from either party, who attended the meeting of Commission on the 21st Century Economy in San Francisco. The commission is responsible for reforming California’s tax system. After the meeting, Steve released a statement saying, “…there is one thing that is already very clear to me: we need to cut taxes in California. There is no better way to create jobs and grow the economy than through a tax cut and this will be a cornerstone of my campaign for governor.” I could not agree more. Increased taxes will not stimulate economic growth and they will not solve the budget crisis created by the irresponsible spending by the state. Steve spent years creating jobs as an entrepreneur in the Silicon Valley and he is the only candidate running for governor who has actually cut waste from the state budget — almost 15% at the Department of Insurance. I know that he is prepared to use his unique experience to tackle the tough issues and I cannot wait to … Read More

Apparently we are getting closer on agreement of a fix for the massive state budget shortfall. From what I hear, the deal does not include tax or fee increases, which is great news. That needs to be the first priority for budget negotiators as California taxpayers already are carrying too much of a burden with their current obligations to state government.

That said, I am wondering whether or not Sacramento politicians are tightening the proverbial belt enough. I recognize that trying to deal with a shortfall of over $26 billion is not an easy task. Especially for Sacramento Democrats who are either union-controlled and don’t have the latitude to make many needed cuts, or are liberal ideologues who would rather push California to the brink than see a decline in redistributive wealth policies.

The reason that I say this is that from talking to sources and reading newspaper reports, it would appear that borrowing and gimmicks will make up billions of dollars of “solutions” for this crisis. Current negotiations call for borrowing billions of dollars from local governments – which is a terrible idea (if raising taxes is the worst alternative,… Read More