My reliable Capitol sources are telling me that a new budget deal will be announced this afternoon. It is a deal that includes all parties in the Big 5. The Governor will get his entire Budget Reform package as he articulated in his veto announcement (though as we have pointed out, this is a good start but far short of a Gann-style limit on spending). As for the trading points to get there, well, I have that info but unfortunately have been embargoed from sharing at this time. But now that you know this much, start shaking the trees and maybe you'll find out… Or just wait for the press conference…… Read More

Before Fleischman e-towel slaps me for this entry not being "California enough," it is coming from a CA-based consultant, so I’m goin’ with it.

Either Jennifer Kerns at K Street Communications’ blog is putting herself out there on this one, quoting an anonymous "high-placed DNC insider," or — if she is somehow correct — no one will soon forget….

The Street is hearing from a source this morning that a high-placed DNC insider has confirmed that Vice Presidential pick Joe Biden will step down from the Democratic ticket. The report is that on or about October 5, Biden will excuse himself from the ticket, citing "health problems," and he will be replaced by Hillary Clinton. This follows weeks of a post-Palin bounce following the RNC Convention, and significant… Read More

The fine crew at Capitol Weekly (www.capitolweekly.net) have the details I could not give. Ah, the constraints of being fair but totally biased…… Read More

Legislative Republicans, not having had a majority in the legislature since 1958, and only twice had a majority in one house of the Legislature since then (1968-70 and 1994-96) won a big one. Despite the Governor’s bluff and bluster, he ultimately agreed to a couple of small changes in the deal cut by the Legislative leaders, and it appears that the budget will now be signed.

Without new taxes.

Let’s face it. That is what this fight was all about, and the Republican Legislators won that fight hands down, no questions asked. They did a Pacquiao on the Democrats and the Governor, and got a budget without new taxes. Not a good budget, but, quite frankly, no budget has been good in the last 10 years. Ever since Gray Davis began the spending splurge that this current Governor continued, the budget roller coaster has sailed up and down with the economy, from spendthrift to crisis to spendthrift to crisis. If the Democrats and the Governor don’t end the spendthrift times, we will move from the current crisis to the next very soon.

As I said before, the one good thing about a budget that uses gimmicks to balance a budget is that the… Read More

The Senate will go into session at4 PM Friday and the Assembly will thenmeet at 5 PM to vote on the fixes that were hammered out this afternoon with the Governor and the other Big 4 leaders, avoiding the veto and the veto override threats.… Read More

OVERRIDE CHALLENGE #1 It would appear that the first major sticky wicket has popped up in efforts to override the pending veto by Governor Schwarzenegger of the budget that has been shipped his was by the legislature. One (unfortunate) component of this compromise budget is that around $5 billion dollars of the "gap" (the shortfall that needed to be made up because Republicans correctly refuse to raise taxes and Democrats refuse to make more needed cuts in spending) is "made up" by forcing California taxpayers to, in essence, pay their taxes earlier in the year.

That particular component of the budget deal was in a trailer bill which required only a majority vote. To my understanding, no GOPers went up on that rather ugly part of the sausage-deal.

Well, if the Governor does veto the budget and trailer bills, suddenly that component part will need a 2/3 vote — which means a pretty good number of Republicans would have… Read More

OVERRIDE CHALLENGE #1 It would appear that the first major sticky wicket has popped up in efforts to override the pending veto by Governor Schwarzenegger of the budget that has been shipped his was by the legislature. One (unfortunate) component of this compromise budget is that around $5 billion dollars of the "gap" (the shortfall that needed to be made up because Republicans correctly refuse to raise taxes and Democrats refuse to make more needed cuts in spending) is "made up" by forcing California taxpayers to, in essence, pay their taxes earlier in the year.

That particular component of the budget deal was in a trailer bill which required only a majority vote. To my understanding, no GOPers went up on that rather ugly part of the sausage-deal.

Well, if the Governor does veto the budget and trailer bills, suddenly that component part will need a 2/3 vote — which means a pretty good number of Republicans would have… Read More

We can dither about California politics all we want here, but Wall Street is imploding on the watch of Securities and Exchange Commission Chairman Christopher Cox (pictured right, Cox was a long-time Californai Congressman before being appointed to his SEC post by President Bush in 2006), and he needs to be fired or resign immediately. There are many components feeding the crisis in banking and equity markets, but the SEC has failed in its oversite responsiblities under Cox.

The "regulations" set to go into effect tomorrow are merely enforcement actions of laws on the books already. Christopher Cox needs to exit the stage – now. His lack of proactive leadership has cost Americans trillions of dollars of net worth already.… Read More