A “No Tax” Message From Voters

For Republicans and smaller government types who celebrated national victories there was little joy in California because their candidates struck out. However, buried amongst the wreckage of a long election night, the message of no new taxes came through pretty clearly.

The only actual tax increase on the ballot, Proposition 21, a vehicle tax dedicated to parks, was crushed with a 58% NO vote. Proposition 24, which would have wiped out legislation from last year that promised a tax cut for businesses was also defeated by the voters allowing the tax cut to go through.

Proposition 26 passed requiring a two-thirds vote to raise fees that, in essence, were disguised taxes. Even Proposition 25, which lowered the two-thirds vote requirement to pass a budget to a majority vote, emphasized in its commercials that the two-thirds vote for tax increases was preserved.

Brown Led Democratic Sweep Makes Business Nervous

Congratulations to the once and future governor, Jerry Brown.

With Brown capturing the governorship, on top of the Barbara Boxer win in the US Senate, the legislature staying solidly in the hands of the Democrats and Proposition 25 passing to require a majority vote budget, the Democrats and public unions had a big night and got much of what they wanted.

With the Democrats firmly in control, Brown will now have to lead the state in a “breakthrough” of it fiscal difficulties, as the governor-elect put it. However, he faces some big obstacles in his path.

During the campaign, I heard many times that Brown would be in position to fulfill the role of Nixon going to China – in other words, Brown was the only one who could stand up to the budget pressures created by the powerful public employee unions. The big question is can he convince the unions to make changes, and how hard will he try, given their important role in his victory. The unions for their part will begin the drumbeat for more taxes in the shadow of the win on Proposition 25.

SF Giants: The Republicans’ Secret Weapon?

Congratulations to the World Series Champion San Francisco Giants!

Perhaps the Giants victory signifies the beginning of the turnaround for California. After all, California finally beat Texas. One can only hope.

But is the Giants victory also a way for another underdog, Meg Whitman, to pull off an upset win in her version of a World Series?

Here’s the theory. With the Giants capturing the World Series, Giants fans in San Francisco and environs go into joyous celebration. Being San Francisco, the partying lasts through the night. Groggy, many citizens of the City by the Bay barely make it to work and struggle through the day. One thing they don’t do is vote!

With voting in the Democratic stronghold suppressed, Whitman and her fellow Republicans pull ahead in the voting.

No on 25/Yes on 26

The direction the state will take on the big issues of taxing and spending will be set by tomorrow’s election. While the result of the gubernatorial and legislative races will certainly affect that direction, the most immediate impact on budget/tax policy will be determined by the results on Propositions 25 and 26.

Proposition 24 is also an important tax-related measure, which should be defeated. Encouraging job growth in California is essential to getting us out of our deficit hole. If passed, Prop 24 would cripple job growth legislation put in place last year. However, Prop 24 is not as far reaching as its neighbors on the ballot, Prop 25 and 26, so I will concentrate on the latter.

Say it Ain’t So: “Texas is the New California”

After looking at the state unemployment numbers that came out last week, the Wall Street Journal declared in an editorial that Texas cities have become the destination for investment and entrepreneurship. The paper flatly states: "Texas is the New California."

Has the Golden State dropped so low that we have lost our reputation as the home of innovation and bright beginnings? Have entrepreneurs found a more comfortable, happier place to call home? It sure looks that way.

Matt Lauer Involved in Another CA Governor’s Race






Of course, Jerry Brown would take the deal offered by Matt
Lauer to pull his "negative ads." Brown benefits from such a deal.

Today Show host
Matt Lauer, conducting an interview session with Governor Arnold Schwarzenegger
and governor hopefuls Jerry Brown and Meg Whitman at the Women’s Conference, brought
a rather sedate session to life by proposing the two candidates pull "negative"
campaign ads.

Prop 27 is Evidence Politicians Deserve Those Low Ratings

This election season gives understanding to observers of the electoral process why politicians seem to score so low with the public when tested in polls. Sure, many people give a thumbs down to politicians for their performance in office, but looking at the standards they set during election campaigns only strengthens the negative feeling toward politicians.

What is sleazy is that politicians use this anti-politician attitude to their advantage.

Small Business Key to California Recovery

"California doesn’t recover until small business recovers," declared Kevin Klowden, Managing Economist and Director of the California Center at the Milken Institute. Klowden took part in a panel discussing California small business at the Milken Institute’s annual State of the State conference this week.

Klowden stated that California is a small business mecca. Over fifty-percent of California employees work for small businesses defined as businesses with 500 employees or less.

Don’t Count Whitman Out

The new Public Policy Institute poll was released showing Meg Whitman eight points behind Jerry Brown in the race for governor. While this is the largest deficit Whitman has faced against her rival, this race is not over.

Whitman shows weaknesses in a couple of areas that could be corrected over the next two weeks and strengths in a couple of areas that are important to the voters.

The poll shows that one in ten Republicans is supporting Jerry Brown. In addition, there is a 15-point gap with Brown leading among women voters. Whitman needs to and can shrink these numbers.

Panel at Milken Conference Pounds Whitman Campaign

The political panel analyzing the coming California election at the annual Milken Institute State of the State Conference in Beverly Hills yesterday spent a good amount of time criticizing the Whitman gubernatorial campaign.

Playing off a recent poll that showed Jerry Brown leading Meg Whitman by seven points, Democratic consultant Bill Carrick, Republican consultant Don Sipple, pundit and former Democratic campaign manager Susan Estrich and panel moderator and Fox TV commentator Frank Luntz disparaged the campaign. Only Republican consultant Steve Schmidt argued that the race was not over and that Whitman was in striking distance of Brown.