The Sacramento Bee has sent out an alert saying that there is a budget deal. What does this mean? I guess we’ll find out. But I am troubled because the theory is that any "deal" means Republicans "blessing" massive tax increases. If you think taxes are a bad idea, NOW is the time to call your Republican Senator and Assemblymember.

The dynamic of a "deal" is that the Big 5 members agree to take a product to their respective caucuses. Billions of dollars in tax increases should be a "work product" soundly rejected by the Senate and Assembly Caucuses.

Republicans cannot afford the damage to our brand name that comes with being the facilitators of a massive tax increase. We’ll lose seats next year for sure, don’t you think?… Read More

Rumors abound that there is progress on a budget deal. Unfortunately, if the rumors are true, such progress involves major tax increases: A once cent hike in the Sales and Use tax, an across the board income tax hike, a gas tax increase, and a higher vehicle license fee.These are all bad ideas.

The sales tax is a destructive, unfair tax. America is becoming a service oriented economy to such a degree that the sales tax no longer works. Raising this tax makes an unfair situation for retailers worse. Look around at just about any strip mall in California and you will see storefront after storefront that is the former home of a failed retail business. This is the devastation wrought by the combination of a recession mixed with a high tax. The rumored budget deal proposes to hike the state’s portion of the sales tax from 5 percent to 6 percent. This is a 20 percent increase in the state rate. This will suppress consumer demand, and/or divert it to online vendors. In many jurisdictions it would take the overall rate to 10 percent. This would be a catastrophe for our retailers.… Read More

Plastered all over the news today are stories about 10,000 layoffs in the State workforce. That might be signficant, but can it be understood on it own? No.

We need to ask: how many employees, new, were hired by the State since 2004. I have heard the number 50,000 thrown around as the answer, but I don’t know. But if it is, then we are still 40,000 higher than we were, and it unlikely that anyone can put up a rationale defense that we needed the extra (insert number) of employees.… Read More

This just in from longtime FR friend Jamie Fisfis over at Chariot Research, a respected public opinion research company from the Bay Area that actually does quite a bit of world all over the globe. They are just out of the field with some survey data on California issues, and I think that the results are definitely worth looking over in the context of the current debate in Sacramento over how to deal with the financial shortfalls due to chronic overspending.

From Fisfis:

Chariot LLC just completed another statewide omnibus survey and the budget debate was one of our main focuses. We have fresh budget debate numbers and they are pretty decisive on the issue of how Californians want the crisis solved. By a 63%-25% margin, Californians believe in spending cuts rather than tax increases to solve the budget crisis – even when education is mentioned specifically. … Read More

Capitol staffers experienced some unique lobbying today: Valentine’s condoms courtesy of Planned Parenthood. In recent years I had heard Planned Parenthood takes the opportunity of Valentine’s Day to distribute condoms to capitol offices. But this year’s valentine didn’t just wish its recipients affection and love on February 14th, it also lobbied for continued funding. The packet pictured below contained several information sheets touting Planned Parenthood’s accomplishments, including just how much money it saves the state every year by preventing unintended pregnancies ($1.35 billions).

Using the tag line “a health budget = a healthy California,” the valentine implores lawmakers, “don’t break our hearts,” which one assumes means by cutting their piece of the budget pie.

And just in case legislators were concerned about having to answer to their spouses about listing condoms… Read More

This just in from longtime FR friend Jamie Fisfis over at Chariot Research, a respected public opinion research company from the Bay Area that actually does quite a bit of world all over the globe. They are just out of the field with some survey data on California issues, and I think that the results are definitely worth looking over in the context of the current debate in Sacramento over how to deal with the financial shortfalls due to chronic overspending.

From Fisfis:

Chariot LLC just completed another statewide omnibus survey and the budget debate was one of our main focuses. We have fresh budget debate numbers and they are pretty decisive on the issue of how Californians want the crisis solved. By a 63%-25% margin, Californians believe in spending cuts rather than tax increases to solve the budget crisis – even when education is mentioned specifically. … Read More

If you have been involved in multiple battles, statewide or local, to oppose taxes on the ballot, then you know that it is significantly more difficult to defeat measures that “seek to extend the life of an existing tax” than it is to stop the creation of a new tax.

Legislators flirting with the idea of voting to increase taxes “temporarily” (my good friend Assemblyman Martin Garrick can remind any legislators of the fallacy of raising taxes now, temporary or not) need to keep in mind that once it is created, there is a very good likelyhood that it will eventually become permanent.… Read More

I know people like rumors so here is one.

In Southern California the whole KFI John and Ken Show and their campaign against some Republicans keeps coming up. There isn’t a meeting I go to someone doesn’t talk about it.

It appears to have gotten the attention for former State Senator Dick Mountjoy. Mountjoy conveyed to me he was thinking of running for Assembly in 2010. He was really upset about Republicans voting to raise taxes.

Of course I relayed that no one has voted to raise anything at this point.

Dick has one more term left in the Assembly. The Democrats kicked him out of the State Assembly in 1994. Mountjoy had been elected at the same time in a special election to the State Senate, but stayed in the lower house to try to help the Assembly Republican keep their majority. (Remember Paul Horcher?)

In that GOP Senate Primary he beat Horcher and future Assemblyman and Congressman Gary Miller despite being outspent.

Mountjoy represented half of the current 59th (Monrovia, Glendora etc..)as a State Assemblyman and State Senator. He lost a bid as the GOP nominee for U.S.… Read More