Don’t Give Up On Tax Commission Yet

Recent reports on the recent internal battles at the Commission on the 21st Century Economy have been greatly exaggerated (and in many cases, inaccurate). You would think, by reading the pessimistic commentary of Joel Fox and Dan Walters, that the commission has broken apart and is unlikely to produce anything of value. That’s pure nonsense.

Yes, there are ideological divisions among the group. Yes, commissioner Fred Keeley has been advancing an alternative plan after consultation with Democrats. And yes, two commissioners – Anaheim Mayor Curt Pringle and economist Michael Boskin – recently emailed their frustrations about Keeley’s activities.

But I’ve just re-read all the internal email and correspondence of the commission, which are posted on the panel’s web site. (Whatever you think of the commission, it has been great on open records). And what’s striking is how much the various commissioners seem to agree on the direction of tax reform. When you consider how divided Californians and their legislators are on such questions, it’s a remarkable level of consensus.

Cities Have a Golden Opportunity to Save Millions. Will They Grab it?

Are California cities getting the most out their ability, under the California Constitution, to exercise “home rule”? According to a comprehensive report released today by the Associated Builders and Contractors, California Cooperation Committee (ABC-CCC), the vast majority of California cities are not using important tools at their disposal that could dramatically help control spending and protect taxpayer funds. The report released today is an important blueprint for cities looking to exercise greater autonomy over their municipal affairs.

The ABC-CCC report entitled "Are Charter Cities Taking Advantage of Prevailing Wage Exemptions?" examines the prevailing wage policies of the 114 California charter cities to determine how many of them choose to exempt themselves from onerous state wage regulations when constructing municipally-funded public works projects. Surprisingly, it found that 58 percent of those cities continue to follow state mandates regarding prevailing wage despite the fact they have granted themselves the ability to take greater control over municipal affairs. By clinging to the state’s prescribed wage demands, municipalities are often paying a premium of anywhere from 6 to over 15 percent on municipally-funded public works projects. By cutting the cord from Sacramento, these cities could realize millions in savings and ensure that more local companies have the opportunity to bid on important jobs.

California’s Fiscal Mess Viewed from Nevada

I doubt if you’d see an analysis such as the following in a California editorial page. But, the Las Vegas Review Journal had a lot to say about the way California is handling its fiscal mess.

The editorial headline reads: If Only We Could Tax More
The subhead reveals what the editorialist really thinks: And Other Fairy Tales From Our Neighbor to the West

And, yes, of course, one of the reasons I’m reprinting the editorial here because it quotes me!

Here’s the editorial from July 11:

As California teeters, Democrats are left to contemplate how this living laboratory of liberalism — with its smothering taxes, intrusive regulatory apparatus, generous social services and well-fed, heavily unionized public sector — could now find itself on the brink of collapse.

Grim Reminder of L.A.’s Heyday

Los Angeles popped into the international spotlight last week because of the slick gala service for Michael Jackson. Celebrities flocked to Staples Center. Fans flew in from overseas. The city demonstrated that it is capable of handling the Big Event.

Indeed, Los Angeles was at the center of the entertainment world again.

As one observer was quoted as saying, the Jackson memorial event branded Los Angeles in the eyes of the world as the capital of pop music, celebrity and lunacy.

And that was striking because, unfortunately, such moments are becoming rare. The Jackson memorial seemed almost an anachronism, a throwback to the times when the celebrity industry thrived in Los Angeles.

New wrinkle to environmentalism: Stop building, retain workers, make magic

Recently, Stephen Colbert opined humorously that "Corn plus magic equals gasoline!"   The Contra Costa County Superior Court and environmental plaintiff’s quipped similarly last week on a Chevron upgrade and expansion, only it went something like this: "Shut down facility, retain workers, make magic."

A Chevron project that had hired approximately 1,000 temporary Contra Costa Building and Construction Trade workers was ordered to stop construction.  The facility was being upgraded for efficiency — to make 7 percent more gasoline from the same amount of light to medium crude it was already taking in.  The shut down was absurd on its own, after a 3-year long permit approval process, but it got even more nonsensical when the environmental plaintiff’s claimed that Chevron should keep the workers on payroll because the closure was not their fault.  What?  See paragraphs 11 and 13.