California has a budget deficit.

The deficit was caused by (1) the Legislature
spending one time revenues on ongoing programs, and (2) most recently, the
recession.

The deficit has persisted because the Legislature
relied on gimmicks and one-time solutions instead of dialing back spending.

At the urging of Governor Brown, the Legislature
adopted $13 billion in solutions, including billions in permanent spending
cuts.

The city of Los Angeles last week shut down a "gold card"
program that allowed certain officials to expedite challenges to parking
tickets.

The
decision was understandable as public relations, given the spectacle of favored
people getting special service and privileges. But it might not have been the
right move for a city desperately in need of new revenues.

A better
solution: let any Angeleno who wants this kind of service purchase a "gold
card" instead. You pony up extra to the city treasury, you get better service.

Yes, it’s
not ideal. It’s not egalitarian. But it recognizes fiscal and political
realities. The wealthy and well connected are going to get special help any
way. So make them pay for it.

The state
and other local governments might consider doing the same thing.

Originally published in the Sacramento Bee.

The recession deserves most – but not all – of the blame for the 1,200 layoff notices mailed to Sacramento area teachers this year.

You can also blame California’s public pension system, which drains at least $3 billion from state coffers that could be saved if prison guards, California Highway Patrol officers and Caltrans workers retired with benefits comparable in value to those provided by Cisco, Chevron and Safeway.

Proposition 98, which guarantees a level of school funding, would make sure schools get their share. Teachers’ jobs would be saved and program cuts would be less severe.

The California Foundation for Fiscal Responsibility released a study earlier this month showing that private and public employees earn comparable salaries for comparable jobs, but that state and local governments provide retirement benefits that are three times as generous as those provided by California’s largest companies.

This year, a 45-year-old state employee earning $60,000 annually will accumulate retirement benefits valued at $19,000. A comparably paid employee of a large private company receives retirement benefits worth less than $6,000.

California’s tax revenues are up, the unemployment rate is
inching down, business profits are improving and people are beginning to think
that just maybe the state has finally begun turning that financial corner.

Or, as Gov. Jerry Brown would say, "Damn."

Samuel Johnson once said, "The prospect of hanging
concentrates the mind," and there’s nothing like a good, strong whiff of fiscal
disaster to convince politicians and voters alike that Something Must Be Done.

But let those same folks get a hint that things might not be
as bad as they seemed, and all thoughts of tough choices and shared sacrifice
magically disappear. Call it the
No-One-Cares-About-The-Leaky-Roof-When-The-Sun-Is-Shining rule.

In less than a fortnight, the much celebrated/often maligned
(depending on one’s viewpoint) Proposition 13 will mark its 33^rd
anniversary. Ironically, a couple of days ago, the first-year Democratic governor
of New York engineered a deal to establish one of Proposition 13’s key
protections for taxpayers in the Empire State. Governor Andrew Cuomo cut a deal
with the legislature to cap most yearly property tax increases at 2-percent.

The New York proposal is not an exact replica of
California’s iconic property tax reform measure. But the yearly cap
acknowledges one of the important features of Proposition 13’s tax shield –
stop limitless property tax increases on defenseless taxpayers. Especially,
since property taxes often measures value of property and profits on paper only
but do not measure the taxpayer’s ability to pay.

In an echo to the Proposition 13 tax revolt, it was reported
that some seniors on fixed incomes were in jeopardy of being taxed out of their
homes under the current New York property tax system.

It is not just seniors, however, who feel the pain when
crushing property taxes are levied. The whole economy suffers.

Did you know that California taxpayers are subsidizing private
development, luxury golf courses and sports arenas to the tune of $5
billion a year? 

Yes and remarkably, the independent State Legislative
Analyst’s
Office found there is no reliable evidence that these public agencies have created
any new jobs. All the while, politicians are cutting funding for police and
fire protection, parks and classrooms. 

California taxpayer, you have just been introduced to California’s
redevelopment industry, aka "The Money Pit!"

There are some 425 redevelopment agencies (RDA) in California, located
in almost every California community. These relatively unknown agencies use
their power of eminent domain to forcibly seize places of worship, small
businesses and homes only to give them to politically connected developers on
the cheap. In turn, they use your tax dollars to underwrite development
projects  – corporate welfare at its very worst. In some cases, this
scheme has led to public corruption.

If you want an iPhone 4 but
can’t afford it, it’s easy to find a similar Smartphone for less money. 
The same is true when it comes to laptop computers.  Magazines and blogs
are full of helpful tips for today’s discerning consumers to find just the
right laptop, the right phone, and even the right speakers that function
similarly to high-end models.

Some people would tell you
it’s the same with prescription drugs.  We do know that generic drugs have
the same chemical composition as the originals.  But that is far from true
when it comes to a new class of drugs known as biologics.

Biologics are complex,
large-molecule drugs.  More importantly, they are manufactured using
processes involving living cells.  They may have hundreds of compounds of
sugars, nucleic acids, proteins, or combinations in three-dimensional
molecules.  But unlike gadgets, biologics’ imitator versions, known as
"biosimilars" can never be exactly the same as the innovator model.

This morning, CalChamber is releasing our 201l list of Job Killer legislation. This year’s list features 28 bills that, if signed into law, would increase costs for employers, lead to more regulations and litigation, and create further barriers to investment for companies hoping to do business here and to hire California workers. It is important to note that the first step in an economic recovery program is to do no more harm to the economy. Yet, proponents of anti-business legislation are ignoring California’s obvious and painful economic situation. Apparently, they think California’s economy can withstand additional pressure from new regulatory and legislative burdens. They are simply unwilling to accept the unfortunate reality that California has the second highest unemployment rate in the country (even higher than Detroit’s!) and is currently ranked near the bottom when it comes to business climate.

Recently, as research for my newest book on the emerging job market, I had the opportunity to explore job placement strategies with Ms. Alyssa Gruber, Executive Director at Green Key Resources, LLC, a New York City headquartered full service professional recruitment and temporary staffing firm.

Ms. Gruber heads the executive support/office support division of the company. She deals primarily in the very rarified world of hiring for hedge funds/venture capital funds and high level corporate offices–the executive assistant who earns over $100,000 a year, the administrative assistant with college degree who starts at $50,000 or the receptionist paid over $40,000. Though her niche is office support, the job advice she gives is relevant to job placement at nearly all levels.

1. Internet Job
Boards: Job seekers should register with major job boards (Monster, Career
Builder, craigslist), and make job applications through them. There is no cost
to the job seeker, and the job seeker  is
able to identify a large number of job openings in a short period of time. However,
the flip side is that the job seeker rarely knows the review process.
Additionally, as application is so easy, the board listings usually attract a large
number of applicants.