Today on the Assembly floor, Democrats tried to push through some legislation that would have authorized the State Controller John Chiang to, in essence, issue junk bonds for California — where we would borrow on the short-term at huge interest rates. Governor Schwarzenegger has said that he opposes this kind of borrowing, which is costly and does not solve our state’s problems.

Assemblyman Pedro Nava (who aspires to be California’s next Attorney General) and his Democrat colleagues apparently think this kind of borrowing is a good idea — not a surprise, as they will do anything to avoid telling union bosses that real cuts are coming.

Assemblywoman Diane Harkey, we was tapped recently by Assembly Republican Leader Sam Blakeslee as the Republican Lead for Solvency Strategies, took to her microphone in the Assembly Chambers to make the case for why this kind of borrowing is bad, and why Nava’s bill should be rejected.

The bill required a two-thirds vote to pass. Did Harkey prevail on enough of her colleagues to kill the bill? You’ll have to watch this video to find out… … Read More

FR friend Carla Marinucci, a veteran political reporter over at the San Francisco Chronicle, is apparently so bored at the office that she is looking for something, anything to write about.

Is there any FlashReport reader out there that doesn’t know this startling piece of California political intelligence — Jerry Brown is running for Governor?

I didn’t think so.

Carla, though, is hyper-obsessing on looking for clues about whether he is running. You can see two posts on this here and here. As we said above, either Carla is that bored — or perhaps there is an ulterior motive? Our current theory is that she is so upset about the recent retirement of her colleague and friend John Wildermuth from the Chronicle that she is not thinking straight.

Anyways, you can always see if he is running by checking the Los Angeles Times.… Read More

For the past week conservative talk show hosts have been following the unfolding scandal of President Obama’s firing of AmeriCorps inspector general Gerald Walpin. Sacramento Mayor Kevin Johnson is actually at the center of this scandal, as it was his non-profit organization Walpin discovered was abusing federal grants.

It was alleged that Johnson’s charity St. HOPE Academy misused the federal money for political purposes and personal errands—such as car washes—for Johnson. Johnson and his charity agreed to pay back $847,000 worth of grants they received from AmeriCorps between 2004 and 2007. Sacramento voters will recall that last year during the campaign for mayor, this scandal threatened to derail John’s bid to unseat incumbent Heather Fargo. But Johnson was able to survive the bad publicity and ultimately defeat Fargo.

Late last week Fox News Channel host Glenn Beck brought national attention to the fact an independent inspector general had been unceremoniously fired from his job and questioned the possible political motivation behind it. It was suggested that the firing… Read More

As foretold the South Pasadena Unified School District’s parcel tax passed. It was a little closer than I thought. The margin was 67.26%. It takes a 2/3rds vote to pass parcel taxes. This was the first of four tax elections in school districts in Los Angeles County. Voters seem have very few problem passing these taxes.

Local control seems to be the key for many of these communities. They feel they get their monies worth and have a say in how it is spent. How many can say that about Sacramento?… Read More

When spending season rolls around on Capitol Hill, Americans cringe, and for good reason. But this season something is different. Yesterday evening when Congress began debate on its spending bills, it was brought to a screeching halt at the first sign of a Republican amendment, 30 minutes in.

It has been a long standing tradition that the spending bills that Congressconsiders are doneusing what is called an ‘open rule’ which allows for an unlimited amount of amendments to the bill, but the cabal led by Speaker Pelosi, President Obama, and Senator Reid has squelched the voice of opposition once again. Instead, they have decided to limit the number of Republican amendments, breaking with the open-rule precedent for the first time in as long as anyone can recall.

We’ve seen it in the automotive industry in the abrogation of dealer contracts and moving Americans out of cars, and now we are seeing it in how Congress spends the money of the American people. This is just further indication that if Obama, Pelosi, and Reid can’t coerce you into doing what they want, then they will force it upon you. They are trying to control much of our lives and now they… Read More

WALTERS IS BLOGGING THE BUDGET CONFERENCE State Senator Mimi Walters, one of three Republicans on the Budget Conference Committee who opposed the ill-fated big taxes/big budget/open primary deal last February, has set up a blog (www.waltersreport.com) to keep interested parties up to speed on what is going on in that key committee…

Senator Walters had this to say to FR:

There are many negative effects throughout both the private and public sectors that have resulted from the plummet of stock values on Wall Street. In the public sector, throughout the country, public pension funds were heavily invested in the market — and the results have been a plummeting of the value of these funds. The problem, of course, is that while nationally there has been a massive "evaporation of value" — the liabilities on these funds remain — with public employees expecting their defined benefit pensions to be fully funded and paid on promptly.

Here in California, the California Public Employees’ Retirement System (which is the fund for most state and local government employees and pensioners) has seen the value of its holdings fall by literally tens of billions of dollars. According to the Los Angeles Times, it’s holdings were around $240 billion last July — but have now (with the downturn and then a slight upturn in the market) down around 23% — a massive drop. The Times goes on to say that in order to make sure… Read More

There are many negative effects throughout both the private and public sectors that have resulted from the plummet of stock values on Wall Street. In the public sector, throughout the country, public pension funds were heavily invested in the market — and the results have been a plummeting of the value of these funds. The problem, of course, is that while nationally there has been a massive "evaporation of value" — the liabilities on these funds remain — with public employees expecting their defined benefit pensions to be fully funded and paid on promptly.

Here in California, the California Public Employees’ Retirement System (which is the fund for most state and local government employees and pensioners) has seen the value of its holdings fall by literally tens of billions of dollars. According to the Los Angeles Times, it’s holdings were around $240 billion last July — but have now (with the downturn and then a slight upturn in the market) down around 23% — a massive drop. The Times goes on to say that in order to make sure… Read More