California Businesses Continue To Shed Jobs – 68,000 More Jobs Lost In May

“The state lost 68,900 jobs in May as unemployment rose from a revised 11.1% in April and 6.8% in May 2008. This is the highest rate since the national record-keeping system began in 1976. Out of every four jobs lost nationwide since the recession began in December 2007, three have been lost by men.” (Marc Lifsher and Alana Semuels, “California Unemployment Rises To Record 11.5% In May,” Los Angeles Times, 6/20/09)

“Job losses slowed across much of the country last month – but not in California. In May, the state’s payrolls shrank at the fastest rate since February, wiping out 68,700 jobs, including more than 14,000 in the public sector, according to figures released Friday. Employment fell across all major sectors of the economy except health care, pushing the jobless rate to a modern record of 11.5 percent. Economists ticked off a familiar list of causes, from the housing bust and the contraction of the financial sector to a state budget crisis that’s soaking up federal… Read More

It has been some time since we here at the FlashReport have bestowed the infamous “Golden Trashcan” award. As long time readers know, it takes a particularly onerous piece of legislation, or in this case a regulation, to “get the can” – but the dubious honor goes to the California Energy Commission’s (CEC) proposal to ban big screen televisions.

If you are like me, you may have heard a rumor about this, and dismissed it as being nonsensical. That’s what I did after I read a brief item written about this by Orange County Register editorial writer Steven Greenhut back in March. In his posting, Greenhut cited a statistic that under the proposal, as many as 25% of big screen televisions today would no longer… Read More

The news that Juan Arambula switched his Party designation from Democrat to DTS is not a big deal. Juan is now and always has been one of the most left leaning Assemblyman in the State. He is a sensible, rationale person, however, and not an angrynut job like most of his former caucus members. Even he sees that taxes in this economy are off the table. That isn’t a moderate position –its an obvious position. Juan may be wrong about a lot of issues – but he is at least thoughtful, and a gentlemen, and able to see the obvious.

His party switch is not about moderation, but distancing himself from colleagues that honestly, need to be locked away in a mental institution for the strategies they are embracing in our budget crisis.… Read More

As you read this, the State Legislature is gearing up to attempt its first raid on local government. The urgency of this warning can’t be overstated; If they achieve this smash-and-grab by taking (not even borrowing) the Highway Users Tax Account gasoline tax, cities and counties will see their ability to maintain their streets and roads crippled.

San Bernardino County currently relies on these gas tax dollars for potholes, rehabilitation and resurfacing of 2,700 miles of paved roads in the unincorporated areas alone. If the County were to lose just the HUTA dollars alone (about $32 million), an estimated 200 essential public works personnel would lose their jobs immediately.

Among budget proposals that will likely be voted on are billions in additional raids of transportation dollars, including deferring the first two quarterly payments of the local (city and county) share of Proposition 42 state sales tax on gas, equal to approximately $300 million, which would further hinder local road safety projects, maintenance and repairs.

These raids would disproportionately impact transportation funding, especially when the industry is facing 20%+ unemployment.… Read More

On the Sacramento Bee’s Capitol Alert website, they have an entry Sparks Begin To Fly Over Dems’ Budget Plan where it is made clear that Republicans will not support any additional tax increases. But Senate President Darrell Steinberg suggests that Republicans will support the non-taxes portion of their package.

"Why isn’t it better to solve $21 billion instead of zero?" says Steinberg in the piece. Even if you ignore, for the sake of discussion, that some of the "non-tax" solutions in that $21 billion figure involve shameful gimmickry like paying state employees perpetually on July 1 instead of June 30, thus perennially… Read More

Rep. John Campbell penned an excellent op-ed last Friday for the Investors Business Daily, in which he discussed the comparative chances entrepreneurism vs. Obama-Pelosi statism for reviving the American auto industry. Campbell, naturally, comes down on the side of liberty and common sense — which unsurpor5isiingly dove-tail with his 25 of experience in that industry:

INCYMI: Entrepreneurs Will Reinvent GM’s Castoffs

By Rep. John Campbell

Before I lost my mind and entered politics, I was in the car dealership business for 25 years. In fact, I was the first Saturn retailer chosen back in 1988, and served on the Franchise Operations Team. I opened one of the first 25 stores in 1990 and eventually owned and operated five Saturn Facilities in Orange County, Calif.

… Read More

I missed the original report last week but was a little surprised that Mark Jacoby, who ran a business that focused on increasing Republican voter registration, plead guilty to a misdemeanor and was sentenced for filing a "false" voter affidavit in Los Angeles when he actually lived elsewhere. The two concepts of "domicile" and "residence" that appear in the California Elections Code have always had a little fuzzy correlation, allowing some wiggle room, but with the heat on ACORN and other liberal groups for vote related fraud issues across the country, last fall in the closing weeks of the 2008 general election, Jacoby became sort of a "fall guy" for the Los Angeles District Attorney’s office and Secretary of State Debra Bowen. The back story is officials employed a fleet of local police squad cars to arrest this fellow at a temporary residence in the Inland Empire,creatinga prosecutorial media event in late October. And the irony was that amid national claims againstliberal groups for fudging the election for Obama, that California was prosecuting a Republican on seemingly similarclaims.

… Read More

Today’s LA Times has a story on study being released today that places blame for the loss of almost 80,000 California-based manufacturing jobs on our regulatory and tax structure. Recently, a group of us joined Assemblyman Dan Logue on a fact-finding trip to Nevada. We had a hearing with companies that have left California and heard stories firsthand just like the ones you can read about in this column. With rising unemployment, the state should be taking action to help create jobs…