March 14, 2012 archive

Jerry Brown and Teacher’s Union Reach Compromise Tax Increase Initiative Deal


California Governor Jerry Brown speaks in front of a Boeing 787 Dreamliner plane in Long Beach, California March 14, 2012

Two tax increase mesures for this November’s ballot have been merged with one, Molly Munger’s continuing to be circulated.

After weeks of battling in public and negotiating behind the scenes, Gov. Jerry Brown and the California Federation of Teachers have reached a compromise on a November tax initiative.

The deal would result in a smaller sales tax hike and larger tax increase on the wealthy than the Democratic governor wanted. CFT had been circulating an initiative with no sales tax hike and a two-step increase on earners starting at $1 million.

“This united effort makes victory more likely and will go a long way toward balancing our budget and protecting our schools, universities and public safety,” Brown said in a prepared statement Wednesday afternoon.

The new deal would raise the statewide sales tax by a quarter-cent rather than half-cent per every dollar of purchase. It would retain the governor’s three higher tax brackets starting at $250,000 for single filers. But the last marginal tax hike – at $500,000 for singles and $1 million for couples – would increase by 3 percentage points rather than Brown’s original 2 percentage points.

The income tax hike on the rich would also last longer than Brown’s proposal, going for seven years instead of five. The sales tax hike would still expire at the end of 2016.

As I have said before, I do not think California voters are in any mood to raise taxes with the state of the economy as it is. But, the teacher’s will spin this as a small temporary sales tax and a tax the rich scheme too.

However, if Molly Munger’s initiative qualifies for the ballot, voters may still be confused and likely defeat both.

Also, good luck for the compromise initiative to pass through the Attorney General, Secretary of State and gather the necessary signatures in time to be placed on the November ballot. Governor Brown’s original tax increase initiative will continue to gather signatures as a back-up plan.

Gee, that is not confusing enough, is it?

Stay tuned….


Flap’s California Morning Collection: March 14, 2012


Santa Monica, California

Good morning!

The California Legislature is in session. Today’s schedule is here.

Lower expectations at CalPERS; bigger bills for cities, schools

America’s largest public pension system is about to swallow a bitter pill — and the pain will be felt in most every city in California.

Critics have derided the California Public Employees Retirement System for years over its allegedly rose-colored glasses: CalPERS, and most every other public pension system in California, officially expects to earn 7.75 percent on investments.

Last year, CalPERS earned 1.1 percent.

The Orange County  Employees Retirement System earned just 0.74 percent.

One could say reality came knocking Wednesday, when a CalPERS committee argued over whether the giant retirement system should lower its expectations to 7.25 percent, or 7.50 percent.

Some have urged it to go far lower than that. Understand that the lower the assumed return, the more the state and cities have to kick in to pension plans to meet the promises they’ve made to workers. Returns change; what they’ve promised to pay does not.

The CalPERS committee finally settled on a .25 percent reduction in its expected return rate — to 7.5 percent. That recommendation will go to the full CalPERS board on Wednesday for approval.

If adopted:

  •     This means that cities will see their required pension payments rise — between 1 percent and 2 percent for general workers, and between 2 percent and three percent for more expensive public safety workers, beginning next year, according to a CalPERS “warning” that went out last month.
  •     Throw in price inflation and wage inflation, and you’re looking at cities and the state paying pension bills that are 4 percent to 5 percent higher for general workers, and 7 percent to 8 percent higher for public safety workers, CalPERS said.

Postal cuts could force change in Calif. voting

California lawmakers and election officials worried about the effect of postal closures on elections are considering extending the voting period for mail-in-ballots, a move that could delay results by days or even weeks.

Election officials are concerned that longer delivery times will disenfranchise tens of thousands of absentee voters after the U.S. Postal Service begins closing post offices and mail distribution centers this summer.

During a joint legislative hearing Tuesday, lawmakers, county registrars and Secretary of State Debra Bowen discussed the possibility of changing California election law so ballots must be merely postmarked by Election Day. Currently, they must be in the hands of election workers by the time polls close to be counted.

Bowen acknowledged the change could mean the end of same-night election results, with nearly half the California electorate voting absentee.

“You hate to make changes with a gun to your head,” she said.

About 40 percent of California voters are registered for permanent absentee ballots, compared with 5 percent in 2000. Nearly 6 million residents voted by mail in 2008, the last presidential election.

A new ‘Cathie Wright’ will be on Simi Valley ballots

Growing up the daughter of a woman who served 20 years in the California Legislature and was the Republican candidate for lieutenant governor in 1994, Victoria Catherine Wright said she learned a few things about politics from her mother.

One thing former Sen. Cathie Wright taught her is that political candidates shouldn’t put relatives on their campaign payroll, she says.

“She believed that you shouldn’t pay family,” Wright said. “They should work for you just because they believe in you.”

Last week, Wright decided to follow in her mother’s footsteps, filing to become a candidate in the 25th Congressional District. Using her middle name, she will be on the ballot as “Cathie Wright” — the same name longtime Simi Valley voters remember from the 1980s and 1990s.

She will be taking on a fellow Republican, incumbent Howard “Buck” McKeon of Santa Clarita, an elected official who hasn’t followed the Wright family wisdom about not paying relatives from campaign funds.

McKeon has long paid his wife, Patricia, as a campaign staffer. An analysis by the Capitol Hill newspaper Roll Call last year found McKeon led all members of Congress in that category, having paid his wife $264,000 from his campaign account since 2007.

“What that means is that people are donating money to his campaign and he’s pulling it out and putting it in his family’s pockets by paying his wife,” Wright said.

Calif. bill would ban violent fans from games

Call it the “no-root” list.

A state assemblyman from Los Angeles who was infuriated by the near-fatal beating of San Francisco Giants fan Bryan Stow outside Dodger Stadium last year has introduced a bill that would create a list of hooligans banned from attending professional sporting events.

It’s a roster no fan would want to make, and would be published online by the state, like the Megan’s Law database of sex offenders. Unlike typical sports rosters, this one would feature a criminal history rather than stats like batting average.

People convicted of serious or violent felonies at sports arenas would qualify for bans of up to five years. Those caught attending a game anyway would be guilty of a misdemeanor, punishable by up to a year in jail and a $10,000 fine.

“We have a situation where a lot of people are now afraid to take their kids to a ballgame,” the bill’s author, Mike Gatto, D-Los Angeles, said Tuesday. “People go to games and have a couple cans of courage, and then they take the fun out of it for the rest of us.”

And, Dan Walter’s Daily Video:

Enjoy your morning!


Flap’s California Blog @ Flap Twitter Updates for 2012-03-14


Powered by Twitter Tools