Democratic Party Supporters’ Money Backs Redistricting Reform
There appears to be a widening crack in the wall of Democratic Party opposition to redistricting reform.
Recent ballot measures attempting to reform the redistricting process, which creates district boundaries from which candidates run for legislative offices, has often pitted one major political party against the other.
Not this time.
While some Democrats are claiming that Proposition 11, the redistricting reform on the November ballot, is a “Republican power grab,” and the state Democratic Party is officially opposed to Proposition 11, usually faithful donors to Democratic causes are putting up money in support of the measure, reports the San Francisco Chronicle’s John Wildermuth.
Will A Real Spending Cap Complete the Budget Deal?
Is there a budget deal?
Senate President Pro tem Don Perata says he has reached an accommodation with Governor Arnold Schwarzenegger on the budget, although as of this writing there is no confirmation from the Governor’s office.
The key trade-off is reported to be a temporary sales tax increase for a rainy-day fund, spending cap and some spending cuts.
If there is a deal, Perata will bring the measure to a vote in the Senate, and the buzz around the Capitol is that he may have the votes in the Senate to pass the compromise, including the two Republican votes he needs.
If so, the budget end game will fall on the Assembly. Pressure will build to get the deal done. The Key — the spending cap. What exactly is it, and how tightly can the cap be screwed on?
Jerry Brown’s New Ballot Labels
Attorney General Jerry Brown successfully altered the title of Proposition 8 on the November ballot. Initially, Brown had labeled the initiative to declare marriage only between a man and a woman: Limit on Marriage. After the California Supreme Court ruling allowing same-sex marriages Brown changed the label to: Eliminates Right of Same Sex Couples to Marry. He then beat back a court challenge by the initiative’s proponents and kept the new title in place.
Emboldened by this blessing from the Court, the AG considered looking at some of the other propositions so as to reveal a better understanding of these initiatives.
Here, reveled for the first time, is a list of the old ballot labels and the AG’s new improved ballot monikers.
Proposition 1. Safe, reliable, high-speed passenger train bond act for the 21st century
New Ballot Label: Safe? Reliable? High Speed passenger train bond act, hopefully to be finished in the 21st century
Governor’s Spending Reform Proposals Are Tough Stuff
Friday’s San Diego Union Tribune editorial revealed some of the budget reforms Governor Arnold Schwarzenegger is supporting in the state budget negotiations. The editorial said the inside look was provided by a party to the discussions. If correct, then the governor is standing behind some real reforms to the budget process.
As also stated by the Union-Tribune editorial, the sales tax increase that has been discussed in the budget negotiations would be a mistake for the state economy. However, focusing just upon the reforms, if implemented, they would be a step toward ending California’s boom and bust budget cycles.
The reported reforms are designed to take political wiggle room out of current spending rules, establish a rainy-day fund with strict requirements to release the funds tied to provisions provided by the Gann spending limit passed by voters in 1979; and allow for gubernatorial authority for mid-year budget corrections, including the power to suspend cost-of-living increases for state programs during revenue shortfalls.
Tough stuff.
The Veto Strategy
Governor Arnold Schwarzenegger said he will not sign any bill that comes his way until a budget is passed.
He made this statement at a press conference in which he called for consequences for legislators who do not complete their responsibility of passing a budget on time. He had another plan for the legislators’ failure — cut their pay if no budget is in place and don’t make it up with back pay once the budget is passed.
The second idea is wishful thinking. The former, he has the power to do. If he applies his veto pen to all measures that come to his desk before a budget is signed, many legislators will be disappointed. And, probably only a handful of bills, if that, will be able to muster the two-thirds vote to override the veto.
This veto plan is a good one. Not only because the governor can put pressure on the legislature to pass the budget, but because it may focus attention on the myriad of new laws we face in California every year.
Last year the legislature passed 964 bills. The governor vetoed 214, a bit less than a quarter of the total but he signed 750 into law.
Schwarzenegger Move No Surprise
Those of you who were surprised when Governor Arnold Schwarzenegger floated the idea of a temporary sales tax increase as part of a budget solution, raise your hands.
As I thought, not many. It was hard not to see this proposal coming. The governor suggested a temporary sales tax solution as a back-up to his lottery lease plan months ago. As I wrote at the time, he dipped into former Governor George Deukmejian’s playbook in which Duke proposed a temporary sales tax be triggered by a certain time if the hole in the state budget hadn’t closed.
In budget negotiations, the governor apparently floated a package of a firm spending limit and structural budget reform along with the temporary sales tax, which he moved from back-up status to be part of the end game. In Arnold Schwarzenegger’s post-partisan world, he is the only one who would make this call.
And he may be the only one with an official say in the matter who likes this plan.
I’m from L.A. — Tax Me
Taxpayers in the Los Angeles area are facing an amazing array of tax increase proposals on the November ballot. The question is how will voters respond when faced with multiple requests for more of their dollars?
The MTA wants a ½-cent sales tax hike for thirty years to cover various transportation projects. When implemented (if passed), L.A.’s sales tax will be 8.75%. That assumes there will be no state sales tax increase that may come along in a state budget deal. If that happens, along with a successful MTA sales tax increase, Los Angeles residents will be looking at a sales tax over 9%. A quick search reveals that only certain parts of Tennessee have a sales tax above 9%, but Tennessee has a small income tax, taxing income only derived from dividends and interest.
The City of Los Angeles put a $36 dollar a year parcel tax on the ballot to fund anti-gang programs. No question the gang problem is serious and must be met. But city officials are just now trying to coordinate better oversight on current gang program funds. Many programs will be brought under the Mayor’s office. Some observers claim the reorganization of current gang programs should be given a chance to work before new funding is called for.
Name That State
The state budget hole is huge but familiar ideas have been put forward to deal with the problem:
- lease the state lottery
- cut Medicaid aid
- possible layoff of state workers
- sell state assets
- public/private partnerships
- hiring freeze
- across-the-board agency cuts
And, oh, by the way, it’s not California.
Name that state.
(A tip of the hat to Jack Dean for pointing this out.)
Trading Deadline
Today’s trading deadline for Major League Baseball has approached with a flurry of trades, and one wonders if this same furious kind of trading activity is making any headway in negotiations over the state budget. In the case of the budget, California also has a trading deadline, it’s in the state constitution, but it is ignored every year. Major League Baseball is more responsible in adhering to its rules.
Still, you can imagine what’s going on in the heated negotiations.
REPUBLICANS: OK, we’ll give you new revenue. But you can’t call them taxes. You got to call them fees. You give us a spending limit tied to inflation and population.
DEMOCRATS: Make the revenue come from loophole closings and we’ll throw in a rainy day fund but no spending limit.
REPUBLICANS: And, what are those loopholes?
DEMOCRATS: Businesses, rich folks and yachts.
REPUBLICANS: You can have the yachts. Those other things make our team weaker if we let them go so we say no.
New Legal Action Possible Over Minimum Wage Dispute
The Howard Jarvis Taxpayers Association is considering jumping into the legal fray over the question of whether Controller John Chiang can resist Governor Arnold Schwarzenegger’s proposed order to pay public employees the minimum wage if no budget is in place.
Lawyers at the Jarvis Association feel the group has a good understanding of what can and cannot be paid under state law. The law was interpreted in a case handled by Jarvis attorneys, White v. Davis, which took five years to run through the courts with a final decision by the California Supreme Court in 2003.
Controller Chiang said his constitutional powers allow him to ignore the order from the governor. Schwarzenegger has yet to sign the order, but his office said he plans to do so on Thursday if no budget agreement is reached, meaning there is no legal basis for making appropriations. The governor is trying to force the legislature to make a budget deal.
The legislature’s legal counsel, Diane Boyer-Vine, backed Chiang with an opinion that argued court decisions indicate the controller can wield power independent of the governor.