The Roundup

Jan 12, 2009

Countdown

With Armageddon Day approaching, the U-T's James Sweeney reviews the impacts of a state cash crunch.

"People dependent on local health and welfare programs, businesses that have contracts with the state, anyone due a state income-tax refund and college students expecting state grants are expected to be among the first to feel the squeeze.

"Most state employees should continue to be paid, although they have been asked to accept two furlough days a month, a de facto pay cut and partial shutdown of the state government.

"To accomplish the furloughs, the administration on Friday ordered most state offices to close on the first and third Fridays of each month, starting Feb. 6. Thousands of state workers also could be laid off beginning next month under an executive order issued by the governor.

"California's 120 legislators as well as 1,600 elected state officials, judges and appointed staff members probably would receive IOUs instead of paychecks, state Controller John Chiang has said."


"Bond repayments and public-school revenue should be safe, because the state will continue to receive billions in tax revenue – just not enough to pay all its bills. But some are warning that schools could be forced to close if a stalemate drags on too long. And schools probably will face at least some midyear cuts in any budget agreement."

 

Meanwhile, Josh Richman says the treasurer and the governor are in a little political showdown of their own

 

"Gov. Arnold Schwarzenegger wants to require state workers to take two mandatory, unpaid furlough days — the first and third Fridays of every month — in order to help defray a tiny fraction of the state’s whopping budget deficit. State Treasurer Bill Lockyer  is having none of it.

 

"Gubernatorial directives can’t be imposed on constitutional officers such as the Treasurer, or the agencies they head; Lockyer sent a letter Friday to DPA  Director David A. Gilb rejecting the governor’s request."

 

And yet, they're lining up to spend millions to hold what would appear to be the worst job in the western universe. "With almost 18 months to go before the June 8, 2010, primary, a host of likely candidates already are positioning themselves to become California's next governor, replacing termed-out Republican Gov. Arnold Schwarzenegger," reports John Wildermuth in the Chron.

"That's not nearly as long as it seems, particularly for the power players, donors and political junkies those early moves are aimed at.

"'It's important to remember that no normal person could possibly care about the governor's race yet,' said Dan Schnur, head of the Jesse M. Unruh Institute of Politics at the University of Southern California and former aide to GOP Gov. Pete Wilson."

 

That might explain why we care so deeply.


"The conventional wisdom has a shorthand description of the 2010 race: For the Democrats, U.S. Sen. Dianne Feinstein clears the field if she runs, with Attorney General Jerry Brown the big favorite if the former San Francisco mayor stays in the Senate. On the GOP side, it's a battle between megarich Silicon Valley types Meg Whitman and Steve Poizner, with former Rep. Tom Campbell of San Jose hoping to sneak by both of them."

 

Ouch...the Golden Boys don't even get a top paragraph mention anymore.  Those darn affairs...

 

"But there's a reason governors are chosen in elections and not by polls taken 18 months out. The political world can alter dramatically in a year and a half, and there are plenty of governor wannabes hoping any changes can put them in the governor's office.

"'People who belong in Gamblers Anonymous are attracted to politics,' said Darry Sragow, a Southern California attorney who ran Democrat Al Checchi's unsuccessful run for governor in 1998. 'You're at the mercy of a political environment that's always precarious and can't be predicted.'"

 

The Bee's Peter Hecht writes that the magnitude of the budget crisis hasn't yet reached the street .

"Sacramento lobbyists, state worker unions and advocates for health, education and welfare may think of little more than the state's financial mess. Yet the Capitol isn't being overwhelmed by calls or letters from average Californians demanding a budget.

"In Sacramento, the action movie-star governor furiously warns of the costs of inaction on a budget deficit that could reach $40 billion over 18 months. Lawmakers fight over taxes, state worker furloughs and slashing cuts for schools and services.

"Outside the capital, they will draw little notice – or scrutiny – until they actually make decisions and act or let state government go belly-up.

"'Certainly voters are aware of the (state budget) problem,' said California Field Poll Director Mark DiCamillo. 'But it hasn't really reached their own pocketbooks or own lives in a direct way. You're just waiting for the train wreck to happen.'


"'At the point when the state stops paying its bills or starts issuing IOUs to creditors, that's when this will really hit the fan.'"

 

"Efforts to bridge California's budget abyss collapsed last week as talks hit a formidable roadblock -- Gov. Arnold Schwarzenegger's demand that long-standing environmental protections be stripped from 10 big highway projects.

"The governor's aides say his plan would give the financially strained state a $1.2-billion economic boost and create 22,000 jobs over the next three years. Environmentalists say the governor is backpedaling from the heavily publicized push to curb global warming that landed him on magazine covers delicately balancing a globe on a beefy finger.

"Schwarzenegger is proposing that the California Department of Transportation forge ahead with some construction projects that are tied up in court over environmental issues. One is a $165-million carpool-lane expansion on U.S. 50 in Sacramento that a judge has delayed because of the amount of greenhouse gas emissions it could generate, among other concerns.

"Protections would also be lifted on a freeway-widening project through an ecologically sensitive area of coastal San Diego County and on a controversial plan to drill a tunnel into the Berkeley Hills. And Schwarzenegger wants to empower a panel of his appointees to waive environmental rules on other projects.

"Schwarzenegger has infuriated the Sierra Club and other groups with such proposals and with a letter he sent to President-elect Barack Obama last week asking that federal environmental reviews be waived on the highway projects.

"'This is a stunning turnaround by the governor, and I am baffled by it,' said Tom Adams, board president of the California League of Conservation Voters."

 

While others may be suffering economically, Jim Sanders writes that 55 senior Assembly staffers are sitting pretty, thanks to former speaker Fabian Nunez.

 

"Dozens of California Assembly employees can thank the state's fiscal crisis for padding their pensions through a controversial program pushed by Assembly Speaker Fabian Núñez before he was termed out last year.

 

"Fifty-five Assembly employees received "golden handshakes" that can be worth thousands annually by awarding two years of extra service credits for retiring by last month, records show.

 

"Recipients included nine aides to Núñez – eight of whose salaries exceeded $90,000 per year.

 

"Prominent retirees included Danny Eaton and Steve Maviglio, who left jobs paying $212,000 and $175,000, respectively, the former as Núñez's chief of staff and the latter as press secretary for the Assembly speaker's office."

 

"A decade of academic advancement due to class-size reduction, tougher curriculum, higher standards, testing, accountability and other reforms could be stalled -- even reversed -- by the necessity to cut spending," writes George Skelton in the Times.

"But there's no way around it. When the state's general fund is projected to be nearly $42 billion in the hole by the middle of next year and the cost of kindergarten-through-community college eats up roughly 40% of that fund, schools must take a hit, even after the probable tax increases.


"Gov. Arnold Schwarzenegger has proposed shorting schools $2.1 billion during the rest of this academic year and $3.1 billion the next. Perhaps most eye-opening, he'd save the state $1.1 billion by cutting off money for one week's worth of instruction. The number of school days would be reduced to 175 from 180.

"'It's a loss of learning opportunities,' notes state Supt. Of Public Instruction Jack O'Connell. 'Only eight states have fewer than 180 days.'

"Also in jeopardy are class-size reduction, advanced placement programs for the university-bound, extra help for English learners, special ed, summer school, counseling, gifted programs, arts and music and a long list of other "categorical" programs that local districts would be free to cannibalize to make ends meet."

 

Dan Walters writes that CTA's sales tax proposal is reminiscent of the discussions leading to 1988's Proposition 98, and wonders if it's real or a budget negotiating ploy.

"The new CTA measure not only recalls the 1980s-vintage battle but echoes a CTA-sponsored initiative eight years ago that would have compelled California to match the national average in per-pupil spending but was dropped when then-Gov. Gray Davis agreed to boost school spending by $1.8 billion a year.

"That makes one wonder whether the new measure is for real, or merely a bargaining chip in this year's jousting over school money."

 

Matier and Ross review the report recommending standards for the new prison hospitals.

 

"Aerobics and yoga classes, workout rooms and open-air courtyards were just a few of the amenities recommended for California's hospitalized felons in a draft report for the court-appointed receiver tasked with overhauling the state's prison health care system.

"The recommendations called on the cash-starved state to spend $8 billion on seven new hospitals - each roughly the size of 10 Wal-Mart stores - to replace a decrepit health care system that a federal judge says is killing an average of one inmate per week. Judge Thelton Henderson said state officials were incapable of fixing the system and handed the job to receiver Clark Kelso.

"The report also said there should be day rooms for patients featuring a 'quiet room for reading and study, as well as a separate room for group TV watching.' Each should include 'a liberal use of sound attenuation materials and be designed to maximize natural light to create a normative environment,' the document said.

"The report also recommended plenty of landscaping along the perimeters of the lockups to hide the fences and electronic surveillance systems."

 

We really wouldn't want inmates to know that they're still in prison...

 

"The overall idea is to create something that doesn't resemble a prison, the document said - hence, designers should "explore a unique blend of hospital, community college and residential scales as a basis for the site plans."

 

We interrupt this Roundup to bring you a breaking news alert. Authorities have warned us to be on the look out for a ... fat ninja

 

"The Palm Beach County Sheriff's Office says a heavyset man with a visible potbelly and a ninja costume unsuccessfully tried to steal two different ATMs over the past two weeks.

 

"Security video from the automated teller machines showed the unidentified man dressed in a black ninja outfit with a hood that showed only his eyes.

 

"Authorities say the first attempt was made at a bank on Dec. 29 and the second at a Walgreens on Tuesday. Authorities did not say how the man tried to steal the machines."

 

But they did make this authentic surveillance video available.

 

 
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