In the course of explaining how and why California still has a daunting budget deficit – $25.4 billion for the current and next fiscal years – Legislative Analyst Mac Taylor delivered some numbers-free straight talk:
 
On patching over deficits:

“Too often, discussions of California’s budget situation are framed in extreme terms: the state about to go “bankrupt,” debt-service payments hypothetically poised to default, the state government on the verge of collapse. None of these scenarios is remotely likely to occur. History tells us that the state can find ways to temporarily “patch over” its annual budget problems in ways that prove sufficiently palatable to policy makers of both major parties. Periodically, large influxes of capital gains allow for temporary relief, and this too aids in patching over the state’s now-recurrent budget challenges. The Legislature and the new Governor will be tempted in the next few years to continue patching over the budget problems with temporary fixes. Unless plans are put in place to begin tackling the ongoing budget problem, it will continue to be difficult for the state to address fundamental public sector goals—such as rebuilding aging infrastructure, addressing massive retirement liabilities, maintaining service levels of high-priority government programs, and improving the state’s tax system. Accordingly, the state faces a basic choice: begin to address today’s huge, frustrating budget problems now…or defer the state’s budgetary and policy problems to future Californians.”

Leandro Soto passed away last week in Marin at the age of 89. Though his passing attracted little attention in California’s media, Lee was an important figure in California’s community job training world. His career started in California’s tumultuous job training of the 1960s and continued to the more business-oriented training model of the 1990s and today.

Lee, as he was widely known, was born in Los Angeles in 1921. Lee often referred to the variety of jobs he held growing up in the California of the 1920s and 1930s, including as a shoe shiner and as a farm worker in the San Joaquin Valley. Lee graduated from Fresno State and worked for a time as a newspaperman for a series of small newspapers.

He was in his forties before he became involved in job training, starting as a job developer with the Urban League. On May 13, 1965, Lee, Herman Gallegos and James McAllister founded the Organization for Business, Education and Community Advancement in San Francisco’s Mission District, initially as a social services/job training agency for the Mission’s growing Latino population. The agency’s name was changed in 1967 to Arriba Juntos (Upward Together).

Governor-elect Jerry Brown’s goal of reforming and restructuring California will surely follow the well-worn path of tax reform. Brown’s two immediate predecessors, Gray Davis and Arnold Schwarzenegger, both called together state commissions to study restructuring the state tax system.

California’s roller-coaster budget ride is created by its current mix of taxes, particularly the state’s heavy reliance on the steeply progressive income tax. Brown’s effort to smooth the ups and downs of California’s budget problems will bring him around to the tax system.

Davis’s commission, known formally as the California Commission on Tax Policy in the New Economy, was headed by current Los Angeles City Councilman Bill Rosendahl. Among other recommendations, the commission suggested that sales tax rates be lowered but extended to services, that the vote requirement to raise special taxes on the local level be reduced, and that a long look be taken at periodically reassessing non-residential property to market value.

During the last six months, Governor-Elect and former Governor Jerry Brown pledged to voters and taxpayers throughout California that he had both the experience and the courage to lead California out of its economic malaise and financial doldrums. The voters endorsed his candidacy because they believe that California’s economy and budget deficit are fixable. His combination of experience and courage gave them hope. Now is the time for Governor-Elect Brown to build on that support and take immediate action.

The phrase “it’s the economy stupid” has been used by many elected officials, candidates and pundits over the years, but it has never had a greater ring of truth than today. Last Tuesday’s elections and exit interviews emphasized that Americans are frustrated by the lack of jobs and economic growth and they want their elected officials to respond. California voters also indicated support for efforts to improve their environment and opposition to tax increases.

Given this backdrop, a future of economic growth, new jobs, larger tax revenues and a cleaner environment will depend entirely on the ability and willingness of businesses to invest in California.

In the aftermath of a decisive win for clean energy last week, supporters of the status quo have resorted to more distortions and name-calling, claiming the promise of green jobs was a lie. I am not surprised by this uneducated and irresponsible statement, as it just a sampling of the misinformation that was disseminated by proponents of Proposition 23 during the election campaign.

For example, despite Ms. Kerns’ claims, Solyndra isn’t shutting down its plant – the company is consolidating its operations and is sticking to its plans to increase production next year. (Source)

Let me offer a few additional facts about a California industry actually creating jobs in the midst of this economic downturn. Hundreds of solar companies – contractors, distributors, and manufacturers – throughout California have been growing their businesses, mostly without fanfare or press releases. Here are a few of the manufacturers who have been in California for some time but seldom receive the attention of the press:

A couple of follow up thoughts post election – then maybe I can put it behind me and move forward.

The well-to-do Governor Stanford

On election night I was talking to KNBC-TV political reporter Conan Nolan about rich candidates who were elected governor of California. I don’t know the history of all of California’s governors, but one that Conan immediately identified was Leland Stanford, eighth governor of California elected to a two-year term in 1861.

Stanford, of course, was a founder of Stanford University named after his son and became wealthy in the railroad business as a member of the Big Four who ran the Central Pacific Railroad.

While Stanford was a well off businessman when he won the governorship, his big dollars would come later. Some have argued he used the governorship in ways that benefited his business and increased his wealth.

Granted, Jerry Brown is crazy. But in this screwball state, he might be crazy in a good way.

Who knows what Governor Brown will do? I don’t. I doubt Jerry knows either. But, oddly enough, I predict that, from a fiscal conservative viewpoint, he’ll be far better than any of us imagined.

Not great. Perhaps not even good. Just better than conservatives expect — a lot better.

I would have preferred Meg Whitman as governor. But not by much. I viewed her as Arnold in a skirt. I ended up voting for the Libertarian Dale Ogden, and felt good about it afterwards.

Jerry Brown is an iconoclast who has reached the final office of his long political career. He was put back in the governorship by the Democrats — especially the labor unions. But there is no political reason for him to pander to his supporters.

Cross-posted at SacMidtown.com

That’s the splendor of sports, the ability to give oneself over to a cause that is more than you. It’s to care deeply for the unexpected – to be captivated through times of elation and anguish.

It’s to share a passion for the strangers who you root for and those strangers who you root with.

And, in the end, to have absolutely no power over the outcome.

That’s the beauty of it.

As a lifelong San Francisco Giants fan, I have given myself to those moments of celebration and seemingly inevitable heartache.

Another wealthy candidate has failed to gain political office in California and you have to wonder what Meg Whitman will do now when it comes to politics and public affairs. Will she pull an Al Checchi, one time Democratic candidate for governor, and chalk up her run for the state’s top spot as an interesting experience and move on, making an occasional newsworthy comment now and again, or will she stay in the political game one-way or another?

I don’t know Meg Whitman well and don’t presume to know what she is thinking about her future in politics, but given who she is and what she recently endured during the campaign, there are certainly many ways she could stay involved in California politics if she so chooses.

If Whitman is considering a future run for office she might establish a record of working on public issues and coming up with solutions for California’s many problems. This suggests perhaps funding a think tank or financially supporting on-going efforts on reform, such as those being conducted by California Forward or the newly announced Think Long Committee funded by fellow billionaire Nicolas Berggruen.