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A Fox, A Hound, and a Friendship

If political differences are destined to leave us divided and friendless, how do you explain the life of Joel Fox?

Fox died on January 10 after more than a decade of living with cancer. He was California’s most prominent taxpayer advocate since Howard Jarvis, for whom he worked, and whose anti-tax organization he led from 1986 to 1998. Fox, a Republican, advanced conservative ideas on TV and op-ed pages. He advised the campaigns of Gov. Arnold Schwarzenegger, Mayor Richard Riordan, and U.S. Sen. John McCain.

That profile, in our polarized times, might make you think Fox was one of those political ideologues who are driving the country apart. But the opposite is true.

Fox, more than any person in California politics, built deep relationships with people across the political spectrum. And he did not do this through consensus or compromise. Instead, Fox built friendships on disagreement itself—a warm, open, and curious style of disagreement.

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Going Green Key to Making Green

One thing was clear recently at the California Travel & Tourism Commission’s (CTTC) first-ever California Sustainable Tourism Summit – going green is key to the travel industry’s economic future.

An astounding 170 stakeholders – more than double the anticipated participation – flocked to Asilomar near Monterey to discuss the future of sustainable tourism in the Golden State. Representatives from destination marketing organizations (DMOs), parks, wineries, transportation companies, restaurants, accommodations, media outlets, conservation groups, universities and local governments came to share best practices and learn more about how we can all ensure that tourism maintains its economic vitality while protecting the environment and community for future generations.

In California, sustainability is integral to the tourism landscape, attracting a fast-growing niche of eco-savvy travelers who are looking for green travel products and services – and are willing to pay more for them.

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Deeper Cuts Could Light the Fuse on Tax Measures

Governor Arnold Schwarzenegger’s announcement that the current fiscal year budget is already $5 to $7 billion dollars in the red may have repercussions beyond the expected legislative budget battle.

With the budget heading toward another large deficit (including the projected structural deficit of an additional $7 billion-plus), the governor is suggesting across the board spending cuts again.

That will not sit well with the spending lobby, which has been mulling over tax raising initiatives in light of the polling numbers that indicate little interest in more taxes from the voting public. The cost of a full on initiative drive has made a number of the big money players have second thoughts about launching campaigns given the sour mood of the public and the down economy. Money is even in short supply for political wars.

However, the governor’s pronouncement will surely become part of the calculus when public employee unions and other pro-tax organizations decide whether to go ahead with tax increase measures. They’re thinking a roll of the expensive campaign dice might be worth the gamble when facing more deep cuts.

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Fiorina Wants to Ignore DeVore

A veteran Democratic consultant was talking about next year’s Senate race recently and suggested that Carly Fiorina could be the toughest opponent Sen. Barbara Boxer has ever faced.

“That is, of course, if she wins the primary,” he added.

If you listen to the former Hewlett-Packard CEO, that June GOP primary is just a barely noticeable dip on her road to a fall face-off with Boxer, the Bay Area Democrat who’s held the seat since 1992. Since Fiorina finally admitted last week that well, yes, she really is running for Senate, she’s been on a none-stop attack against Boxer, who she described as “the opponent” at one campaign stop.

But some recent statewide polls, not to mention Irvine Assemblyman Chuck DeVore, suggest that Fiorina might want to delay putting down a deposit on an election night headquarters for November.

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A Budget Reform That the People Might Like? Celibacy

Here’s the core of the fix California is in. Californians hate the way things are in their state government. But they don’t want to do anything – change taxes, change the budget process, reform the constitution – that might fix the system.

Instead, as a recent USC-LA Times poll shows, they prefer scapegoats: “special interests”, big-spending legislators, and population increases that they blame on illegal immigrants.

The problem is: when voters look at these scapegoats, they’re really looking in the mirror.
When it comes to the power of interests, it is voters who have empowered such interests by electing candidates promoted by those interests and passing ballot initiatives written by those interests.

When it comes to big-spending legislators, voters have a point. But voters themselves are big spenders, passing billions in bonds and other spending programs without identifying money to pay for their priorities. And California’s legislators all have voted for budget cuts; voters haven’t.

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Legislation and Bond Package Offers Comprehensive Plan to Modernize California’s Water System

California has a chance to seize control of its water destiny.

Thanks to Governor Schwarzenegger’s leadership over the past three years and leadership of legislators from both sides of the aisle representing our entire state, we have achieved a 2009 legislative package that can modernize our aging water system and make wiser use of California’s precious water resources. Water supply reliability will be improved, but so, too, will our stewardship of the environment and governance of the Delta, a vital water source for two-thirds of California.

The water plan now before us is the most comprehensive in decades. The new plan is comprised of four vital water policy bills recently passed by the Legislature and signed by the Governor, and an $11.14 billion water bond, timed for voter approval in 2010. As a package, it can help meet our water needs deep into the 21st century, keeping our economy vibrant and our people, farms, fish and habitat provided with the lifeline of water they all require.

The four-bill legislative package establishes a Delta Stewardship Council, sets ambitious water conservation policy, ensures better groundwater monitoring, and provides funds for increased enforcement actions to thwart illegal water diversions.

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Economic Incentives, Jobs — They’re EZ!

It’s all about jobs. How many times do we have to say it? A lot, I guess. Business wants to hire, to thrive, but we get pummeled every day from neighboring states to move to lower tax, less onerous regulatory locales. In fact–true story–even OCBC was solicited by Henderson, Nevada’s economic development team to “move” to Nevada!

I know–it was an unsolicited email, but that’s how crazy things are for California business.

There’s one economic incentive this state does have: enterprise zones or EZ. EZ is a designated area where businesses earn tax credits by hiring certain qualified, unemployed workers, buying equipment and growing in an economically depressed area. Great idea. And Santa Ana is Orange County’s success story, retaining businesses, hiring unemployed and attracting new enterprises. Anaheim also qualifies for an EZ, but the state currently caps the number allowed and there were 15 applications for only 4 spots, out of 42 total.

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Making Jobs a Priority at City Council

Good news to report from L.A. City Hall this week: The L.A. City Council introduced a motion that would create the L.A. Area Chamber-proposed Office of Economic Analysis to help answer the question, “How would this law impact jobs?” Enacting this motion will encourage city officials – and the public – to discuss how new policy proposals would affect private sector job creation, business growth and the overall economy here in Los Angeles.

This proposal – based on the model established in San Francisco – would establish a small office of trained economists charged with analyzing legislation that may have a direct impact on the economy. The goal is to provide unbiased, quantifiable information that lawmakers can use to assess or improve legislation and avoid counterproductive policy proposals.

Independence and objectivity are essential to making this new office a success. The Chamber along with our fellow business organizations will be vigilant in ensuring that the new office is structured to be as free from political influence as possible.

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Money Flows for PG&E Power Initiative

If money talks in politics, it positively shouts when it comes to California initiative campaigns.

Take, for example, the ongoing effort to qualify a ballot measure that would require a two-thirds vote before local governments could spend the first nickel to get into the public power business.

The effort is being run by a group with the populist-friendly name of “Californians to Protect Our Right to Vote,” although the required disclaimer adds that it has “major funding from Pacific Gas & Electric, a coalition of taxpayers, environmentalists, renewable energy, business and labor.”

Actually, that wide-ranging coalition of disparate interests is pretty much invisible, since every dollar of the $3.5 million that’s flowed into the effort so far comes from PG&E.

And where has the cash gone? Well, at least $1.5 million has been used to collect the nearly 700,000 signatures needed to qualify a constitutional amendment for the ballot, either for the June 2010 primary or the November 2010 general election.

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The Fourth Kind … of Government

The movie The Fourth Kind, now in theaters, refers to the fourth level of interaction with extraterrestrials. We are told by the movie promotions the first kind is sightings, the second kind is evidence, and the third kind is contact. The fourth kind is abduction.

There appears to be a Fourth Kind of government entity that the people of California are dealing with themselves. The familiar first three kinds of government are federal, state and local. The fourth kind is the people through the initiative process.

A few might even say the initiative process is an abduction of government.

The people of California have not felt that way — at least not yet. Polls in the past have revealed that about 75% of those polled support the initiative process. Ironically, that number 75 is nearly the total of initiatives that have been filed with the Attorney General for title and summary during this election cycle.

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