Good Tuesday morning!
The California Legislature is in session. Today’s schedule is here.
Jon Fleischman’s FlashReport is little-read but much-feared
The FlashReport and a few other sites, including middle-of-the-road Rough & Tumble (www.rtumble.com), offer an up-close view of California politics once available only from the mainstream media. Fleischman stands apart, though, because he both covers the establishment and works inside it as a former executive director of the California Republican Party and a consultant to myriad candidates and causes.
“I’m not only Jane Goodall, who’s looking at the monkeys, I actually am one of the monkeys,” Fleischman said in an interview at his Newport Beach office. “The monkeys will talk to another monkey before they will talk to a reporter.”
His insider’s niche enabled the FlashReport to be first on the story when, for instance, a clutch of GOP congressmen recently decided to leave office. It also helped Fleischman sniff out evidence that a Democrat who hoped to run for a Central Valley state Senate seat didn’t live in the district.
Fellow Republicans praise Fleischman for dogged self-creation and ideological purity. U.S. Rep. Darrell Issa (R-Vista) described him as a bellwether on “the heart of conservative party activism.”
Chamber takes no position on Gov. Jerry Brown’s tax plan; opposes rivals
The California Chamber of Commerce announced its opposition today to two of Gov. Jerry Brown’s tax rivals but remained silent on the governor’s own plan, tacitly giving his proposal a boost as he tries to thin the field.
The Chamber’s board voted to oppose a tax on millionaires circulated by the California Federation of Teachers, as well as a progressive income tax hike on most earners backed by wealthy attorney Molly Munger. It did not take a vote on Brown’s initiative, according to Chamber president and CEO Allan Zaremberg.
“I can just say we wanted to take up those things we felt were urgent to position on, and we’re opposing these two tax measures along with a couple of other things members asked us to take a leadership role in,” Zaremberg said.
Brown has asked industry groups to at least remain neutral on his plan to raise taxes on sales and high-income earners, and he has tried to portray his plan as unique for its lack of business opposition. But CFT has shown little indication of vacating its measure and donated another $1.15 million toward its signature-gathering drive this month, according to a statement filed today.
Brown seeks tax-hike support from police chiefs
Gov. Jerry Brown appealed Monday to chiefs of police for support of his November tax initiative, even as he conceded the ballot likely will be crowded with tax proposals.
Brown noted that his plan is the only one of the three proposals that would dedicate some of the revenue to local law enforcement.
His address to the California Police Chiefs Association came as Brown faces significant hurdles in his bid to persuade voters to approve his measure, which would raise the state sales tax by half a cent for four years and increase the income tax on those making more than $250,000 a year for five years.
The biggest challenge could come from competing proposals that seek similar ends but could confuse voters and end in defeat.
“We’ve got a plan. There will be other plans, but at the end of the day we’ve got to get the choice. And I think people will make the right choice if people who know speak out,” Brown said at an annual awards ceremony for community policing programs.
Bankruptcy not ruled out to solve Fresno’s financial crisis
Fresno Mayor Ashley Swearengin on Monday warned that the city is in “severe financial stress” that demands immediate action and presented a 10-year plan calling for more concessions from city workers.
But the presidents of the city’s two public-safety unions said they sense Swearengin is being overly dramatic for political reasons, and urged the public to get all the facts before choosing sides.
Fresno’s budget season has come early this year, and it’s already turning into a war.
At a morning City Hall news conference where she was joined by City Manager Mark Scott, Swearengin warned that “there is no Plan B” to the cost reductions, and Scott warned that even bankruptcy could not be ruled out if expenses don’t come down.
“It is not in our employees’ best interest for their employer to be so financially unstable,” Swearengin said. “I hope they will see that.”
The plan, which lays out the city’s financial health, projects a skyrocketing long-term deficit if cost-cutting measures are not taken. The deficit would be $15.1 million in 2013 and rise to $65.8 million by 2017. The causes for the red ink include the national economic downturn, unsuccessful city investments and “unaffordable future commitments to labor groups and others.”
Those less-than-stellar investments include Granite Park, the former Fresno Metropolitan Museum and an overly ambitious downtown baseball stadium. Each of them saddled the city with long-term debt.
Dan Walters: Proposition 13’s ‘third rail of politics’ touched in Capitol
Proposition 13, the landmark property tax limit voters enacted 34 years ago, has been termed the “third rail” of California politics – to touch it is to commit political suicide.
The measure passed overwhelmingly, and recent statewide polls indicate that it’s still very popular with voters, the vast majority of whom are homeowners who benefit from its provisions.
Jerry Brown, who was governor when Proposition 13 passed, is very aware of its iconic status. He opposed it then, but after its passage, quickly proclaimed himself to be a “born-again tax cutter” and championed a state income tax cut.
Brown, governor again, lightly touched on Proposition 13’s history Monday while touting higher sales and income taxes to local police chiefs.
He lamented that as the state “stepped in with a bailout” of local governments and schools after Proposition 13’s passage, it became increasingly dependent on income taxes, which tend to rise and fall steeply, contributing to chronic budget deficits.
Brown’s remarks were just a tuneup for a fuller debate over taxes in the Capitol later Monday, keyed to efforts to change Proposition 13’s provisions that would keep its limits on homes, but allow taxes on business property to rise.
Enjoy your morning!