As the latest budget stalemate continues, IOUs and BBB credit ratings are popular topics of conversation in California. In fact, while waiting for a table in the bar of my favorite local restaurant Friday night, nearly everyone I talked to asked what I know about those state issues and what I think is going to happen.

I said I don’t know. But one thing I do know is that in February, all of the Democrats and a few Republicans figured higher government revenues would result from the largest state tax increase in U.S. history. And four months later, Controller John Chiang announced that tax receipts were $1 billion lower than projected. Chiang was quoted in the Los Angeles Times as saying, “[the legislature] must craft a new budget that recognizes California’s recovery has yet to begin.”

State Treasurer Bill Lockyer announced on CNBC on July 6 that California “should be able to pay its IOUs back in October.” Note the word “should,” coming from a guy who has a fiduciary duty to instill maximum confidence in California’s creditworthiness. One bond-rating service even lowered California’s bond rating to… Read More

Last we checked, Monday is a "work day" for full-time legislators. Also, last we checked, the state is still dealing with a massive budget short-fall that is only going to be fixed by legislative action — which is needed, like, yesterday.

If you looked around the building today for a meeting of the Fab Five (OK, that’s "Big 5" in Capitol parlance) — you won’t find one.

The Governor’s around. The Senate Republican Leader is around. The Assembly Speaker is around. The Assembly Republican Leader is around.

But someone is missing…

Who could it be?

Senate President Pro-Tem Darrell Steinberg has DISAPPEARED. Rumor has it that he isn’t even in California.

WHERE’S DARRELL?… Read More

It didn’t take long for split roll property tax advocates to make their way into the headlines. Bottom line–split roll property tax and any similar tinkering with Proposition 13 will kill jobs in California. Below is a recent op ed I wrote for the North County Times on the subject:

Forum: Split-roll property tax proposal a job killer By NATHAN FLETCHER — 75th District assemblyman

In a crisis a lot of new ideas are put on the table. Many of these are welcomed additions to the debate. I’m particularly fond of new ways to make government work better-more accountably, more efficiently, and more transparently. There are some reform proposals that focus on using technology to open up state government for review and reorganization. There are other ideas for structural change-two-year performance-based budgets, term limit changes, instituting a part-time legislature, even calls for a constitutional convention. I have read about some cutting-edge steps to once again make California a competitive place to start and grow a business and to create jobs. All of these ideas have merit… Read More

The BoE has released its 2007-08 Annual Report that breaks down the $53.1 billion in revenue collected by the BoE in year ending June 30, 2008. The BOE collected approximately $700 million less than the previous fiscal year, a decrease of 1.3 percent.

It is clear the economy was getting softer in the first half of last year and that retail sales were declining even more than other revenue categories. In light of this, February’s decision to raise the sales tax by one percent was a punitive and destructive decision. The Governor and legislators that signed off on it claimed raising the sales tax would bring in $6 billion more in revenue, despite the dynamic revenue analysis of the BoE’s chief economist showing that a … Read More

Speaker Bass has to go!

California’s budget crisis cannot be solved until those responsible are removed from leadership. Last February the “big five’ leaders from both parties in both houses plus the Governor, rammed down billions in new taxes and put to vote more billions on the May 19th ballot. That didn’t work.

Everyone knows the new taxes didn’t resolve the budget gap and the voters in a 2-1 vote scuttled the new new tax increases.

**There is more – click the link**

View Full Commentary… Read More

Speaker Bass has to go!

California’s budget crisis cannot be solved until those responsible are removed from leadership. Last February the “big five’ leaders from both parties in both houses plus the Governor, rammed down billions in new taxes and put to vote more billions on the May 19th ballot. That didn’t work.

Everyone knows the new taxes didn’t resolve the budget gap and the voters in a 2-1 vote scuttled the new new tax increases.

So far of the original gang of 5, two have been removed. If the budget log-dam is to be broken we need new more flexible leaders.

Speaker Bass is ineffective to do the job. She has to go. Sadly, Bass has only one constituency she must answer to. Government unions are her only and sole concern. They elected her. They funded her. They control her. Since 2003 California government has grown with over 50,000 net new state employees, all union members. Don’t let anyone tell you there a hiring freeze either.

Bass doesn’t have the background for… Read More

In the coming weeks, every kind of commentator from every corner of the state is going to have a recommendation about how to solve the budget crisis. Democrats are going to pound their chest and say they won’t "cut" government any more. Thousands of articles are going to be written attacking Republicans for being obstructionists (and that will be the nicest things they say), everyone is going to have a solution, an idea, a comment, a thought, every kind of way of "solving" the crisis, most of which will tell legislators that they have to "leave their ideology" at the capitol steps, and become "problem-solvers." These are media speak for "Republicans have to raise taxes."

In my opinion, there is only one strategy that will actually solve this crisis, and the crises that will occur in the future. Republicans must stand firm. I realize that is asking a lot. Republicans have never stood firm. Republicans have always given in. Republicans in the Legislature are as responsible for today’s collapse because past leaders have given in to Democrat demands for bigger government, and have never stood up… Read More

Last week the San Francisco Chronicle published a story in which they “broke the story” that former Hewlett Packard Chief Operating Officer and ersatz United States Senator Carly Fiorina may not have complied with required government filings concerning two business entities which she owns – Carly Fiorina Enterprises and the Fiorina Foundation.

Fiorina, who has been prepping behind the scenes for a run for the Republican nomination for United States Senate next year – even as she undergoes treatments for breast cancer – was quick to respond to the allegations through her spokesman and Chief of Staff Deborah Bowker. Bowker contacted me with the following statement…