California’s economy has been powered for decades by technology, trade and tourism — businesses and jobs mostly near the coast from San Diego to Los Angeles and around the San Francisco Bay Area. The state’s great inland valleys, while serving as a breadbasket for the world, have not been a land of high-paying employment or [...]

California’s notorious tax-revenue roller coaster is on the way up again. How many times do we need to see this movie before we remember how it ends? Tax receipts in January soared nearly $5 billion above the projections Gov. Jerry Brown’s best experts made just a month earlier. Withholding from paychecks was 12 percent above [...]

Crossposted on Healthy Cal It’s conventional wisdom in political circles that California, like the rest of the country, has become more polarized in recent years. Just watch any election campaign or session of the Legislature and it seems clear that we are a hopelessly divided people. But is that really true? It might not be. [...]

As the calendar moves toward the Legislature’s June 15 deadline for passing a budget and the June 30 expiration of billions of dollars in temporary taxes, pressure is building on Democrats to cut a deal with Republicans, on mostly Republican terms.

Republican leaders have already said they would go along with calling a special election on the taxes if Democrats will accept a series of reform the GOP lawmakers are pushing.

If a handful of Republicans will also vote to extend the taxes from July 1 until Election Day, they will be able to extract maximum concessions from the Democrats.

But if June 30 comes and goes and there is still no deal, much of that Republican leverage will disappear.

A new independent poll released Wednesday suggests that a scaled back plan to increase taxes and dedicate all of the money to local government might be Gov. Jerry Brown’s best hope of finding new revenue to help balance the budget.

The poll by the Public Policy Institute of California finds that likely voters overwhelmingly want local government officials to have more say in how state money is spent in their communities.

The poll also shows that of all the major services, prisons are the ones voters least want to protect with their pocketbooks.

Finally, voters think they should be asked to weigh in on the tax plan, although many of those who want to vote apparently want to vote against it.

But the secret to overcoming that opposition might be to play on the voters’ preference for keeping government close to home.

The U.S. Supreme Court’s decision ordering California to reduce its prison population by 30,000 over the next two years has sent shockwaves through the Capitol as legislators and the Brown Administration struggle with how the state will comply.

Some are hoping that the ruling, and the attention it is getting, will give new momentum to Gov. Jerry Brown’s proposal to extend about $11 billion in temporary tax increases that are expiring this year. Brown wants to use some of that money to reimburse counties for taking control of inmates who have short sentences or have been returned to prison for violating the conditions of their parole.

Voters, the thinking goes, will be more likely to approve the tax hikes if they think one of the consequences of not doing so will be the release of dangerous felons to the streets.

Setting aside the question of whether such releases really need to happen, is this really an issue that can drive voter sentiment?

Maybe. But it depends on how it is framed.

The revised budget Gov. Jerry Brown released Monday does not
seem any more likely to win Republican votes than the governor’s original plan.

Brown is still pushing to extend billions of dollars in
expiring taxes, except now he wants the Legislature to vote directly on the
taxes rather than simply scheduling an election. 

The election would come later, and voters would be asked to
ratify the Legislature’s decision.

But if Republicans wouldn’t vote for an election on taxes,
why would they vote for the taxes themselves?

That’s a tough sell for Brown. Making it even tougher,
ironically, is the $6.6 billion increase in the state’s revenue projection for
this year and next.

Days before Gov. Jerry Brown releases his revised budget proposal for the coming year, Republicans in the state Assembly have offered their own outline they say would balance the budget without renewing temporary taxes that have expired or about to do so.

Republicans are clearly hoping to corner Brown and Democratic lawmakers by making education funding the centerpiece of their plan. They say they are proposing the same level of spending Brown has already offered for education, and no further cuts to the state’s universities.

Brown is widely expected to say that unless the state extends the temporary taxes, deep cuts to schools are inevitable. With their plan, Assembly Republicans will claim that education spending can be protected without extending the temporary taxes.

The Republican plan also spares $500 million in local public safety funding and scraps Brown’s proposal to shift an array of services to cities and counties.

Gino
DiCaro of the California Manufacturers and Technology Association calls me out here  for not being understanding enough
about the plight of his bosses in the California manufacturing sector.

His
beef is with a recent piece  in which I pointed out that
employment growth in California last year actually outpaced the nation if you
remove the effect of government layoffs and ongoing problems in the
construction industry, which was particularly hart hit by the collapse of the housing
market in California.

A new poll released
Wednesday has good news and bad news for Gov. Jerry Brown.

The good news is that
his public approval ratings have rebounded slightly since March, according to
this survey by the Public Policy Institute of California. About 40 percent of
adults now view him favorably, compared to 34 percent a month earlier.

More good news: a
majority of Californians still like the idea of a special election to vote on
the budget, and they say they like Brown’s plan to balance the budget with a
mix of cuts and taxes.

Then there is the bad
news, for Brown.

The voters don’t like
some of the taxes in the package he is advocating, even if they are tied
explicitly to maintaining funding for the schools.