Tag Archive: Phil Mickelson

Jan 31 2013

The California Flap: January 31, 2013

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The California Legislature is in session.

Today’s schedule is here.

The California Assembly’s Daily File is here and the California State Senate’s is here.

An important deadline to remember:

  • February 22, 2013: Deadline to introduce bills.

Each member of the Assembly and State Senate are allowed to introduce up to 40 bills in this two year legislative session.

Around the Capitol today:

Lawmakers are holding a press conference pledging their support for a federal immigration overhaul. Assemblyman Luis Alejo, D-Watsonville, will be joined by Sen. Anthony Cannella, R-Ceres; Sen. Ricardo Lara, D-Bell Gardens; Assemblyman V. Manuel Pérez, D-Coachella; Assemblyman Katcho Achadjian, R-San Luis Obispo; Assemblyman Roger Dickinson, D-Sacramento; and Assemblyman Jeff Gorell, R-Camarillo. Starting at 10:30 a.m. in room 317 of the State Capitol.

On to the morning’s California headlines:

  • Controversial school bonds create ‘debt for the next generation’ – The Napa Valley Unified School District had a quandary: The district needed a new high school in American Canyon, but taxpayers appeared unwilling to take the financial hit required to build it.So in 2009, the district took out an unusual loan – $22 million with no payments due for 21 years. By 2049, when the debt is paid, it will have cost taxpayers $154 million – seven times the amount borrowed.School board member Jose Hurtado said he stands by the deal. But if it were a mortgage, he acknowledged, “we would run.”Napa is one of at least 1,350 school districts and government agencies across the nation that have turned to a controversial form of borrowing called capital appreciation bonds to finance major projects, a California Watch analysis shows. Relying on these bonds has allowed districts to borrow billions of dollars while postponing payments in some cases for decades.
  • California taxes surge in January, report says – California was flooded with tax dollars in January, according to a new report, and the state received $5 billion more revenue this month than Gov. Jerry Brown had anticipated.The Wednesday report from the Legislative Analyst’s Office shows a stark reversal for the state budget. At the end of November, tax revenue had fallen almost $1 billion short in the current fiscal year, according to figures from Brown’s Department of Finance.Now the state appears to be $5 billion ahead, which could provide further evidence for the governor’s declaration that California has emerged from its financial crisis.The analyst’s office floated three possible causes for the surge in tax revenue. The most positive theory is also the simplest — the economy has improved and there’s more income to tax.The others are less optimistic. It’s possible that wealthy residents, fearful that federal budget negotiations would increase their taxes, decided to cash out investments early. If so, that means the s…
  • PPIC Poll: Californians fear shootings, support citizenship – A new statewide poll finds Californians fearful of mass shootings and strongly in favor of more gun control, while also supporting a path to citizenship for illegal immigrants.The poll from the Public Policy Institute of California released Wednesday night also finds more optimism about the state’s economy than at anytime since 2007.”Still,” says PPIC pollster and president Mark Baldassare, “many Californians are expressing concerns about the direction of the economy and the state budget situation.”But it’s the California reaction to recent news headlines that offers an early view on what could become potent political issues during the 2013 legislative season in Sacramento and next year’s statewide elections.65 percent of those polled say the government is not doing enough to regulate access to guns, and an equal number support a nationwide ban on semi-automatic style assault weapons.
  • PPIC Poll: Californians upbeat over future, budget plan – Californians are more optimistic about the future of the state than at any time since before the recession and are giving high marks to Gov. Jerry Brown’s budgeting approach after voters approved higher taxes to help balance the state budget, according to a poll released Wednesday.The Democratic governor’s job approval rating reached a record high 51 percent in the latest poll by the Public Policy Institute of California, with even a slim majority of Republicans giving a thumbs-up to his recent budget proposal.The poll also found broad support for increased gun controls and changes to current immigration laws that would allow a path to citizenship. A majority support the federal health care overhaul that already is under way in California.The percentage of adults who said the state is headed in the right direction was 51 percent, the first time a majority of people said that since January 2007.
  • For millionaire athletes, states with highest tax rates may not make the cut – Is Lefty’s stance on California’s tax hikes a sign of things to come for millionaire athletes?The Golden State’s new 13.3 percent income tax on top earners prompted golfer Phil Mickelson to say earlier this month he was considering a move, and according to the accountants who advise millionaire athletes, he was just saying what a lot of jocks were already thinking. Federal taxes on the top income bracket just rose by roughly 5 percent, and, while there’s nothing rich athletes can do about that, they are paying attention to which states dip into their game checks — and how much they take.“They’re going to have an exodus of people,” said John Karaffa, president of ProSport CPA, a Virginia-based firm that represents nearly 300 professional athletes, primarily in basketball and football. “I think they’ll see some [leave California] for sure. They were already a very high tax state and it’s getting to a point where folks have to make a business decision as well as a lifestyle decision.”
  • Legislation proposed to help California launch healthcare overhaul – The state Legislature gaveled in a special session on healthcare Monday, pushing forward with sweeping proposals to help California implement President Obama’s healthcare overhaul.The measures, including a major expansion of Medi-Cal, the state’s public insurance program for the poor, would cement the state’s status as the nation’s earliest and most aggressive adopter of the federal Affordable Care Act. Beginning in January 2014, the law requires most Americans to buy health insurance or pay a penalty.Gov. Jerry Brown called the special session so healthcare bills that he signs can take effect within 90 days rather than next year.
  • Counties express concerns about Medi-Cal expansion – As state lawmakers propose a major expansion of Medi-Cal to help California implement President Obama’s healthcare overhaul, county officials are raising concerns that the proposal could siphon critical dollars from their safety-net programs.On Monday, legislative leaders in both houses sponsored bills that would dramatically expand the state’s public insurance program. Under the proposals, individuals earning up to 138% of the federal poverty level — or $15,415 a year — would be covered, potentially adding more than 1 million Californians to the Medi-Cal rolls.The federal government would subsidize costs for the first three years, phasing down to 90% afterward.Currently, counties receive state funding to care for the uninsured. But Gov. Jerry Brown has said that if the state were to administer the Medi-Cal expansion it may reduce the roughly $2 billion it gives to counties each year to cover the new costs. In his proposed budget, the governor said the state might also shift…
  • State ordered to pay back districts $1 billion for 20-year-old mandate – A state commission has ruled that the state must reimburse school districts about $1 billion in mandated special education costs dating back 20 years. But like many protracted mandate cases, the victory is largely one of principle. Gov. Jerry Brown is proposing to include a small payback in next year’s budget, and the dollars will come from funding within Proposition 98, so it will essentially involve shifting education dollars around.The unreimbursed expenses are for intervention plans for special education students identified with behavior problems. In the early 1990s the State Board of Education, under orders from the Legislature, prescribed interventions that teachers should incorporate into individual education plans, known as IEPs, according to Paul Golaszewski, an analyst with the Legislative Analyst’s Office who has followed the case.
  • L.A. Mayor Antonio Villaraigosa, again, cast as possible transportation secretary – L.A. Mayor Antonio Villaraigosa, again, cast as possible transportation secretaryThe departure of U.S. Transportation Secretary Ray LaHood raised new questions over what Mayor Antonio Villaraigosa would do if he is offered the job – either now or after July 1, when his term as mayor expires. | Also: Doug McIntyre on the mayor’s next moveVillaraigosa was in South Korea for the Special Olympics and is not expected to return until Thursday.
  • Phil Mickelson’s net state income tax increase: 83.6%!!!!! – Richard Rider, the dean of the small-government/low-tax movement in San Diego County, has come up with some stunning number-crunching on his blog:“Here’s the fact that EVERYONE (including me) initially undervalued concerning [Rancho Santa Fe pro golfer Phil] Mickelson and CA state income taxes. Starting in 2013, Mickelson’s NET state income tax has jumped 83.6%! And yes, this huge increase hits most Californians making more than $2 million income.“Here’s why. Until 2013, state income taxes were deductible for federalincome tax purposes. Starting in 2013, for the really rich, this deductibility largely goes away (as does deducting property taxes and many other deductions). For people with over $2 million of income, they lose 80% of such deductions.“With Proposition 30 passed in November, CA has raised its income tax on the wealthy by 29%. The combined tax increase is breathtaking. Do the math, and you find that in 2011 the net CA income tax for Mickelson was 6.7% In 2013 his net CA income tax is 12.3% — an increase of 83.6%.”This is mind-boggling. No wonder Phil said he was contemplating “drastic changes.”
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Jan 28 2013

The California Flap: January 28, 2013

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Thousand Oaks, California

The California Legislature is in session.

Today’s schedule is here.

The California Assembly’s Daily File is here and the California State Senate’s is here.

An important deadlines to remember:

  • February 22, 2013: Deadline to introduce bills.

Each member of the Assembly and State Senate are allowed to introduce up to 40 bills in this two year legislative session.

On to the morning’s California headlines:

  • Elections will bring a big shake-up on L.A. City Council – Voters across Los Angeles are poised to engineer the biggest shake-up on the City Council in a dozen years, sending seven newcomers into office in a series of contests that will unfold between March and July.Although the mayoral campaign has grabbed most of the attention this election year, with millions raised by the five leading candidates, the stakes are just as high for the city’s powerful 15-member legislative body.Term limits and other factors — illness and the election of a sitting councilman to higher office — have created the largest number of incumbent-free council races in more than a decade. Six current council members depart June 30 and a seventh — Tony Cardenas — already has moved to Congress.
  • Dan Walters: California pension funds still face huge liabilities – The California Public Employees’ Retirement System has reported – with no small elation – that it has recouped virtually all of the $95 billion in investment losses it sustained during the global financial crisis.A steadfast investment strategy and a generally rising stock market are responsible for the recovery, CalPERS says.
    The good news comes just a few months after Gov. Jerry Brown and the Legislature enacted a pension reform plan they say will shrink the long-term liabilities of CalPERS and local pension systems.
  • Secret hearings in case of Chandra Levy slaying – A judge has been holding secret hearings in the case of the man convicted in the 2001 killing of Chandra Levy, the latest twist in a high-profile murder that went unsolved for years and captivated the public because of the intern’s romantic relationship with a California congressman.The meetings, held sporadically behind closed doors at the courthouse over the last several weeks, raise questions about what comes next in a criminal case that appeared resolved by the 2010 conviction of Ingmar Guandique. The illegal immigrant from El Salvador is now serving a 60-year prison sentence in Levy’s death, but the hearings could signal a problem with the prosecution of the case.
  • Brown puts former prisons critic atop oversight agency – Gov. Jerry Brown says it’s time for the federal courts to end their oversight of medical care and other operations within the California prison system, and he’s named a somewhat surprising ally to help him make the case.Jeffrey Beard, who testified four years ago that California’s prisons were dangerously overcrowded, began work last week as secretary of the state Department of Corrections and Rehabilitation.
  • California becoming less family-friendly – Sacramento lawmakers of both parties share some responsibility. The dominant progressives’ regulatory and tax agenda continues to reduce economic prospects for younger Californians, leading many young families to exit the state. In contrast, older Anglos, the bulwark of the now largely irrelevant GOP, are committed to massive property tax breaks because of Proposition 13. Add good weather and the general inertia of age, and it’s not surprising that families might flee as seniors stay.Other factors work against parents, prospective or otherwise. The knee-jerk progressive response to our demographic problems usually entails more money be sent to the schools.But they rarely include the student-oriented reform measures such as those enacted in New Orleans (where I am working as a consultant). The poor performance of public education, clear from miserable test results and dropout rates, makes raising children in California either highly problematic or, factoring the cost of private education, extremely expensive.
  • Mickelson and the Sports Star Tax Migration – America’s top-grossing golfer Phil Mickelson drove himself into a bunker on Jan. 20 when he said that federal and California state tax hikes had made him contemplate making “drastic changes” in his life—including, it was widely assumed, moving to a no-income-tax state such as Texas or Florida. But he was only stating publicly what many professional athletes are mulling privately.
  • Obamacare & California: State media ignore coming headaches – Gov. Jerry Brown’s eagerness for California to be the first state to implement the federal Affordable Care Act is being reported matter-of-factly by state newspapers. Completely absent is any big-picture explanation of what this will mean for health providers, companies and individuals in the Golden State. We’re less than a year away from the state implementing policies that give employers a financial incentive to stop providing health coverage and that give individuals, especially the young, an incentive to not buy health insurance. I wrote about these enormous looming headaches last week for the U-T San Diego editorial page:
  • California prison reform’s unintended consequences – The prison reform law that shifted responsibility for non-violent felons from the state to the counties is also affecting the management of more serious and violent offenders who have completed their prison terms, presenting a challenge for reform supporters and potentially undermining public support for the change.Since the passage of Assembly Bill 109, also known as prison realignment, people who violate the conditions of their parole go to jail rather than prison – including those with sex offenses and other serious and violent crimes on their records.But because of jail overcrowding, some county jails can’t house people for technical parole violations — including bad drug tests and missing appointments with parole agents. That lack of consequences can make it more difficult for parole agents to compel people to stay within the conditions of their release from prison and to keep track of offenders who are released from jail early.
  • LAUSD plans to add 1,000 new campus aides for security at elementary schools – The Los Angeles Unified School District plans to make more than 1,000 new hires to bolster security at hundreds of campuses in a move some critics have called “security on the cheap.”More than 400 LAUSD elementary school campuses are slated to receive 1,087 campus aides – a minimum of two on each campus – as early as March 1, LAUSD school board president Monica Garcia told the Daily News on Friday.The $4.2 million plan comes a month after the Dec. 14 mass shooting at Sandy Hook Elementary School in Newtown, Conn. that killed 20 first-graders and six adults.

    “Another two people on each campus can help us maintain a safe environment that can ease the minds of our employees, parents and students,” Garcia said. “This way we can focus on reading and writing, teaching and learning.”

  • AEG, Koreatown developer help fund L.A. sales tax campaign – The developer of a proposed downtown Los Angeles football stadium and the company behind two planned apartment towers in Koreatown have provided about two-thirds of the funds for the group backing a half-cent sales tax increase in the city, according to the first report released in the campaign.The committee for Proposition A on the March 5 ballot reported that it had raised $185,000 by Jan. 19, with $100,000 coming from stadium developer Anschutz Entertainment Group. The City Council, which is seeking the tax increase to address a $220-million budget shortfall, approved AEG’s proposed stadium last year, which involves the demolition and reconstruction of a section of the city’s Convention Center.
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