Everyone who lives in a city or a county who drives or rides in a car (that’s about everyone) should be concerned about this. As I have previously reported, a proposal by certain representatives of the Administration has potentially misled legislators into believing it’s o.k. to vote to take the local share of the Highway Users Tax Account (HUTA) and Prop. 42 gas tax funds from cities and counties. The justification statement goes something like this: "Counties/Cities will be receiving American Recovery and Reinvestment Act of 2009 (ARRA-federal stimulus) funds anyways — which should be more than what we will be taking from Counties". This claim is misleading, to put it mildly. Take the case of San Bernardino County alone, which stands to lose (just for its unincorporated areas), 61% of what it costs to operate and maintain2,775 miles of roads. Thatis $47 million (HUTA take) and $7 million (Prop. 42 six-month deferral). The same unincorporated areas will receive only $5.8 million in ARRA federal stimulus funds. This means they’re planning to take ten times… 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

It goes without saying that if Democrats are engaged in budget negotiations, there is going to be another clandestine effort to sneak a tax increase into the final solution.

Senate Democrats are purportedly attempting to increase the current 5 cent deposit on small containers to 10 cents. What is the big deal with a measly 5 cents?

Since the smaller containers are approximately 88% of the beverage market, this increase would result in a $980 million additional tax on consumers.

A nickel will get you a billion, which is real money in budget discussions!

The reality is that the beverage container recycling fund has become insolvent because of borrowing for the state general fund. This is an absurd consequence caused by fiscal mismanagement, which again was not the fault of taxpayers.

The Senate leadership, along with environmentalists,is proposing the10 cent deposit as a way to avoid reductions associated with the beverage fund deficits and to generate more money for their pet causes.

The voters spoke clearly on May 19th. No more taxes! That includes another nickel a drink tax on nearly every soda, juice, and water that… Read More

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

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

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

The state budget will be voted on this week in Sacramento. There are unlimited options available to figure out how the state can spend the billions of dollars available to provide state services in California.

As a local government official I have strong feelings about the ways that make the most sense. People certainly disagree with me on some of these things and that is fine.

I am not going to argue about how stupid it is to raid Highway User Tax Act (HUTA) funds on the basis of what these funds do. That could be the subject of a whole blog by itself.

What I will argue is that a budget based on this transfer is not wise because it may not be legal.

Voting for this budget suggests confidence that it will be used as a document of proposed spending that will last for the next fiscal year. However, that just isn’t going to happen.

Prop 5 (1974) provided cities and counties greater control over these funds. This is money that can be used to pay off local bonds but not state bonds. See Section 19 of the State Constitution.

Whatever you think about HUTA funds and the… 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