In response to Jennifer Nelson’s post below, the Governor’s office has responded. Below is a brief commentary from David Crane, Special Advisor to Governor Schwarzenegger on Jobs and the Economy…

FR readers HAVE to check out the details on how Democrats plan on raising income taxes, the car tax, gas taxes and more — without a 2/3 vote.

This is sick.

I’ve been intently looking for a statement from our Republican Governor announcing that such an end-run against the spirit of the 2/3 vote for new taxes would be DOA. Still waiting..… Read More

This was published in today’s edition of Investor’s Business Daily. It outlines a few of my thoughtsand ideason the path towardsrestructuring our financial regulatory system.

Bold Changes Should Prevent Another CrisisBy REP. JOHN CAMPBELL

The credit markets continue to unfreeze. The general economy continues to sink. There are new stock market lows and unemployment highs and we don’t know where and how it will all end.

But it will end. And we need to start thinking about what regulatory structure will replace the one that failed us so miserably this time. We came perilously close to an abyss (or collapse or Armageddon, depending on who is describing it).

I looked down into that abyss and what I saw was way scarier than any Stephen King movie. Therefore, I think we need dramatic changes to ensure that this sort of calamity does not befall us again.… Read More

Despite what you are hearing in the news these days, taxpayers are not to blame for California’s recurring budget crisis. Trust me on this one.

Overspending is built into our state’s budget system and the Democrats have long insisted that Republicans in the Legislature are simply obstructionists blocking the passage of state budgets filled with spending increases. They argue that if the two-thirds vote requirement was abolished, California would have on-time and fully-funded budgets. Even Governor Schwarzenegger has suggested that he might support eliminating the two-thirds vote requirement for passing a budget bill.

The voters of California reaffirmed their strong support of the two-thirds threshold by rejecting Proposition 56 in March of 2004 by a resounding 66% to 34%.

Well, we have learned that in California politics, if at first you do not succeed, just rig the system to get what you want—that is exactly what the Democrats are trying to do with their budget proposal. They have devised and schemed up a proposals that rob or eliminate voter-supported initiatives—such as Proposition 42 funds for transportation projects—and added fees on the… Read More

Today I am pleased to offer this guest editorial from longtime FR friend State Senator Jeff Denham…

So California can’t sell its bonds because the outside world has no confidence in our leadership’s ability to manage the state’s finances. And now public works projects are shutting down—projects that the public approved at the governor’s urging. If only he had shown as much leadership throughout his tenure in fighting for budget reform. Instead, when that issue wasn’t an easy win and didn’t come with accolades from the Democrats and the media, he shifted his attention to global warming. For once, a politician’s chickens are coming to roost when he is still in office. I’m glad that the Schwarzenegger is having to deal with this mess. He could have avoided it—or at least the deficit wouldn’t be this big and his options would be better—if he had stayed true to his word when he first ran for office and shepherded through real budget reform early on.

… Read More

Today I am pleased to offer this guest editorial from longtime FR friend State Senator Jeff Denham…

One important step in solving the state’s budget crisis is to eliminate wasteful resources and look for potential opportunities to create new revenue without raising taxes.

One significant opportunity is to sell the 432 acres of pristine California land that houses San Quentin State Prison. This state property sits on a prime bay front section of Marin County and has the potential to provide the state with substantial revenue.

**There is more –… Read More

A reminder that once a year, the elves here at the FlashReport take our annual vacation. Every year, the FlashReport publishes daily through the Friday before Christmas, and we restart our daily routine on January 2. For those looking at a calendar, that means that this Friday will be the last time our main page is updated for the year. This is traditionally a very slow time for political news.

That said, this particular year, because of the chaos caused by the chronic overspending of legislative Democrats, and the resulting budget mess, we will be keeping the FR blog open through the holidays, and will encourage our readers to check in regularly (normally we would shut that down, too!).

When we come back after the holidays, look for one new major feature on the site, and we’ll also be revamping our blogger row, with some new, awesome contributors joining our blog team.

As always, if you have any thoughts or suggestions about how we can improve FR, please share them with us. You can e-mail me here.… Read More