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Initiative Would Restore Citizen-Legislators

DEC. 13, 2011

By KATY GRIMES

Is California ready to return to citizen-legislators?

In 1966, voters passed Proposition 1A, creating a full-time legislature and an annual state budgeting process. Today, California is one of only a few states with a full-time legislature, and has the longest scheduled session of any state legislature in the country.

With 120 legislators working diligently to justify their full-time jobs, the full-time Legislature has created a culture of career politicians in California, and a labyrinth of heavy-handed state laws and regulations. Under the Democratic Party and organized labor control, not everyone in the state is happy with the way politics have become a profitable cottage industry.

There have been many legislative reform attempts to limit the power, size and scope of California’s Legislature. But these bills are forever assigned to stagnation on a dark shelf in the legislative Rules Committees, which refuses to assign reform bills to the committee process for hearings. This is just one of the reasons that many in California believe that the political process is broken and needs a complete facelift.

Ballot Initiative Filed

The California State Assembly, known as the lower house, has 80 members, 52 Democrats and 28 Republicans. The upper house, the California State Senate, has 40 members, 25 Democrats and 15 Republicans.

California for two decades has had gerrymandered legislative districts. Although that might change a little next year thanks to Proposition 11, which voters passed in 2008. It created the California Citizens Redistricting Commission, which has devised supposedly less-gerrymandered districts.

Under the current system, and likely the new one, most of the 120 ruling state legislators are dependent for existence on labor unions and the ever-expanding public-employee tax waistline.

This has led to the filing of a constitutional amendment ballot initiative last week to make California’s Legislature part-time. The aim is to diminish the power of professional politicians and return control of the state to citizen-legislators.

Attempts to Limit the Legislature

In 1990, California voters passed term limits on the California LegislatureProposition 140 limited state Assembly members to three two-year terms and state senators to two four-year terms. Term limits impose a lifelong ban against seeking the same office, but that hasn’t prevented politicians from making soft landings to other appointed positions within state government.

Instead of leaving Sacramento after their terms are up, California’s legislators commonly either run for a seat in the other house, or find a way to get appointed to a well-paying state board or commission until they can run for another political office.

That’s what grates on voters. America’s government was formed using a citizen legislature, primarily with citizens who have a full-time occupation besides being a legislator. James Madison, the fourth President of the United States and primary author of the Constitution, wrote that legislators should be “called for the most part from pursuits of a private nature and continued in appointment for a short period of office.”

The Founding Fathers must be rolling over in their graves by now.

States with part-time, citizen-legislatures include Idaho, New Mexico, North Carolina, Oregon, Utah and Wyoming. Even Texas, with 25 million people, has a legislature that meets only every other year for 140 days.

Some states, by contrast, have a full-time, professional legislature.

However, the states with full-time legislatures — California, Michigan, New York and Pennsylvania — have all suffered massive budget deficits, out-of-control public employee unions and unfunded public-employee pensions.

Initiative Filed

Assemblywoman Shannon Grove, R-Bakersfield, filed the constitutional amendment ballot initiative, along with People’s Advocate CEO Ted Costa, renowned for his leadership in the gubernatorial recall election of Gov. Gray Davis.

Grove ran for her Assembly seat as a private-sector businesswoman, and plans on going back to her business when her legislative terms are up.

If the ballot initiative is passed by voters, the California Legislature would meet no more than three months per year: 30 days in January, and 60 days in May and June. Governors would be permitted to convene special sessions, lasting no more than 15 days. Legislators’ pay would be scaled back from nearly $9,500 per month now to $1,500 per month, according to Grove.

But Grove has said that this is not an attack on legislators, and instead is only an attempt to take the perks and appeal out of the full-time job and bring it back to real public service, allowing anyone to run for office.

Most of the states pay lawmakers less than half of what California legislators are paid. Some pay much less than that: Nevada pays just $137.90 per day maximum for 60 days of session. New Hampshire pays $200 for a two-year term. Alabama  pays $10 per session day. Texas pays $7,200 per year. New Mexico only pays for legislators’ expenses; there’s no salary.

The larger, union-dominated states pay closer to California’s legislative wages, but not as high. Pennsylvania pays $78,314.66 per year. New York pays $79,500 per year. And Michigan pays $79,650 per year. Wisconsin only pays $49,943 per year.

The ballot initiative would require the Legislature to submit a balanced, two-year budget by June 15 in every other odd year, and would forfeit legislators’ pay for every day it’s late.

But the most significant change could put an end to the careers of the political elite: Legislators would be prohibited from accepting political appointments to state boards and commissions while in office, and for five years afterward. Many involved in the campaign say that this is probably as significant a change as making the Legislature a part-time body.

A long-time joke around the state Capitol is that the California Unemployment Appeals Board was created as a place for career legislators to land after they were termed out, to prevent them from being unemployed. There are currently four former state legislators on the board.

Critics and Supporters

There are critics of the measure in both parties. Some say that the Legislature needs to remain a full-time body in order to govern a state as large and economically diverse as California. Others say that Democrats don’t want to give up the power structure they have created, dominated by organized labor.

Last June, Assemblywoman Diane Harkey, R-San Juan Capistrano, said she had mixed feelings about a part-time Legislature. She would rather see a limited schedule requiring lawmakers to work exclusively on the budget before any other legislation is introduced.

Assemblymen Dan Logue, R-Linda, and Martin Garrick, R-Solana Beach, have signed on as early supporters.

The Sacramento Bee reported, “John Vigna, spokesman for Assembly Speaker John Perez, said a part-time Legislature makes little sense in a state with one of the world’s largest economies. He also took a jab at Grove’s job performance.”

“This is an irresponsible proposal coming from someone who hasn’t put forward any real solutions to our long-term challenges,” Vigna said.

But that isn’t entirely accurate. Grove has proposed several government reforms, but can’t get the Democrat-controlledAssembly Rules Committee to assign the bills to other legislative committees.

Others ironically express support for a part time Legislature, saying that less damage can be done to the state with a limited, part-time body.

Some within the ballot initiative campaign are concerned that the Attorney General’s office could sit on the ballot proposal as long as possible, cutting into signature-gathering time. There are only 150 days to gather the 807,615 signatures needed to qualify the constitutional amendment initiative to the ballot.

“If the ballot initiative is passed by voters, we will see more Shannon Groves in the Legislature and fewer career politicians,” said one campaign insider. “They won’t be able to work on protecting their jobs anymore, and instead will work for the people of the state.”

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The Assault on American Tradition

DEC. 9, 2011

A school district in Stockton has outlawed Santa and the poinsettia plant. But snowmen and snowflakes are okay.

The latest assault on Christmas is so ridiculous, it’s barely worthy mentioning. However, it makes clear that what is happening in America is not just an assault on Christmas, it is an all-out attack on American traditions, and the erosion of the American way of life.

Santa and poinsettias are not religious, but they are part of the American Christmas tradition, as is Christianity, also under assault. Yet according to a 2007 survey by the Pew Forum on Religion & Public Life, nearly 80 percent of Americans identify themselves as Christian. In 2009, a Gallup poll found that 78 percent of Americans identify as Christian.

A recent Rasmussen poll found that holiday shoppers, as they have for several years, would prefer to be greeted with signs reading “Merry Christmas” rather than “Happy Holidays” this season.

Americans’ time-honored expressions of Christmas tradition and Christian faith have become prime attack issues.  It would not be Christmastime in America without some small group of crazies being offended by it, and demanding the removal of Christmas trees, wreathes, decorations, and now Santa.

But scores of people find the generic “Holiday Trees” even more offensive. What holiday is being celebrated?

Self-Appointed Ruling Elites

Popular American culture has been terrorized for years by a self-appointed elite ruling class.  Ignoring the beliefs of most Americans, this small minority in government, academia and the mainstream media has dominated any rational discourse on American traditions, insisting that it possesses the conventional wisdom we all must follow.

Christmas As A Tradition

For most of America, Christmas is a tradition more than it is a strict religious holiday. The federal government recognizes Christmas as a federal holiday. But school districts across the county have taken it upon themselves to rid schools of Christmas, and all of the traditions that go along with the American holiday.

One teacher in California recently tried to change the words in “Deck The Halls,” replacing “gay apparel” with “bright apparel.” Fortunately, the school superintendant put an end to that absurdity.

The ACLU in Broward County, Florida told the community of Plantation that it could not put up its annual display of Christian and Jewish symbols, or the ACLU would sue, tying the community up in court for years. According to the ACLU, the display was “inappropriate.”

Political Correctness

Years ago, atheists demanded that public schools stop producing traditional Christmas pageants. Unfortunately, many Catholic schools followed suit. Instead of just answering children’s questions about the traditional holiday, teachers and school officials chose to ban all talk about Christmas.

While schools have been the hotbed of political correctness and the total destruction of Christmas, banks, and other public businesses have succumbed to the pressure of a tiny minority of radicals.

“Misinterpreting it as a freedom ‘from religion’ rather than the freedom ‘of religion’ it was intended to secure, our public squares have long since been stripped of nativity scenes, and the very word ‘Christmas’ is taboo in many of America’s school systems,” George Skaggs wrote recently in The American Thinker. “The federal government’s continual and insistent assault on the First Amendment’s establishment clause provides a perfect illustration of how the process works.”

However, America has always been an exceptional country, freer and more democratic than others, and where the individual is honored. But this is rapidly changing.

The erosion of rights and liberties in America is finally hitting home with many Americans. As children come home from school carrying official memos from district officials denying the practice of traditions, parents are outraged.

It’s not just an assault on Christmas; it’s an attack on the backbone of America.

Erosion Of Rights Through Government Expansion

The erosion of rights is exemplified by the increasing level of government spending, the bank bailouts, increasing state and federal regulations, Obama health care and cap-and-trade legislation. With every increase in spending by the government, working America must pay for it. But we are not just paying with increasing taxes; we are paying with our constitutional rights.

Americans cannot ignore that something fundamental is changing in this country. It’s not just excessive government spending, but also the attacks on American culture, the individual, and the core meaning of America.

Religious freedom and wealth creation opportunities in America inspired many immigrants to come here. People are free to worship as they choose in America. Our wealthy are wealthier than most of the rest of the world, and our poor have satellite television, cars, homes and cell phones.

But as long as the liberal elite continues to expand government entitlements, the political tension in America will only get worse. More handouts do not create more wealthy Americans. Handouts and entitlements only create a permanent class of Americans dependent on government, resentful of the private sector.

The Occupy protestors are evidence of the entitlement generation. Their demands of having a university education without having to pay for it, high-paying jobs, and higher taxes for the wealthy, are all unsustainable. We recognize their angst, but also see that it is not rooted in economic reason.  They should be protesting the enlarging government, and excessive government intrusion in their lives. They are a conundrum wrapped in an oxymoron.

The assault on Christmas is just one of many assaults on the American people. Americans need to protect our foundational identity — the very identity which has allowed the America to be a magnanimous, progressive, and tolerant country.

Merry Christmas, to you and yours.

– Katy Grimes

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Leg Hearing Crashes High-Speed Rail


DEC. 7, 2011

By KATY GRIMES

At a hearing on Monday held by the Senate Transportation and Housing Committee and the Select Committee on High-Speed Rail, rail authority board members continued to push legislators for approval to build the new rail system, while evading answers to legislators’ questions.

Legislators from both parties expressed skepticism in moving forward with rail construction plans. Committee Chairman Sen. Alan Lowenthal, D-Long Beach, said that he was concerned with the role of the private sector in the project – or more accurately, the lack thereof.

Throughout the four-hour hearing, legislators repeatedly asked members from the California High-Speed Rail Authority Board of Directors where the money for the $98.5 billion project was going to come from. No answers or specifics were offered by Board Chairman Thomas Umberg, or from board members Dan Richard and Jim Hartnett.

With the lack of affirmative answers to legislators’ questions, it was surprising that the High Speed Rail board members did not say,  We have to build the rail system in order for you to find out how much it will actually cost.

They instead offered comparisons to the cost of air travel and the increase in gas prices as reasons to support the construction of a High-Speed Rail in California. When legislators pressed for information about the decision to build the Central Valley rail segment ahead of sections in higher density urban areas of the state, Umberg and Richard admitted that they were motivated by $3.5 billion in American Recovery and Reinvestment Act funds — federal stimulus money.

The string attached to the ARRA funds is that the Central Valley segment must begin construction by the third quarter of 2012, and be completed in 2017.

“I am getting frustrated by getting jammed by the authority,” Sen. Joe Simitian, D-Palo Alto, said. “It is time for us to start planning as a state. I get a stiff back when I hear we have to start doing something. That we are getting $3 billion but spending $100 billion is a concern.”

Federal Control

Sen. Doug LaMalfa, R-Richvale, a vocal opponent of the operations by the High-Speed Rail Authority, said he is increasingly frustrated that the project was now in the hands of President Barack Obama and U.S. Transportation Secretary Ray LaHood. “How much effort have you made and discussions have you had with LaHood or the Obama administration, so we are not hurrying through? What have your conversations been like?” La Malfa asked Umberg, Richard and Hartnett.

“We have to be under construction by September 2012,” Umberg said, dodging the question. “ARRA funding was created to stimulate the economy.”

Despite the elimination of federal high-speed rail funding by Congress, in September LaHood met with Gov. Jerry Brown in Oakland, where they had a “long discussion” about the high-speed rail project. “We are not gonna [sic] be dissuaded by a little bit of background noise of criticism, because there’s a loud, loud amount of support for high-speed rail in California,” LaHood famously said.

“Why do we have to accept it?” Sen. Ted Gaines, R-Roseville, asked Umberg, about taking the federal stimulus money. Gaines suggested that the authority should not accept the stimulus funds, and instead engage private-sector companies to build the most profitable segment of the rail system.

“Every year the project is delayed, we add several billion dollars to the cost,” Umberg said. “Around the world, every High-Speed Rail project is operating at a profit.”

Members of the audience at the hearing quietly gasped, and a hum of quiet comments could be heard immediately after Umberg’s comment, while others laughed.

Business Plan Inconsistencies

A recent report by the Legislative Analyst  found that future funding sources are “highly speculative,” and the economic impact analysis included in the rail authority’s plan “may be incomplete and imbalanced, and therefore portrays the project more favorably than may be warranted.”

Interestingly, the project has not completed all of the necessary environmental reports, and it is not likely that the rail authority will receive all of these approvals prior to the expected 2012 date of initiating construction, according to the LAO.

Legal Troubles

Adding to an already shaky reputation, a lawsuit filed in November in Superior Court alleges that the present High-Speed Rail business plan fails to meet crucial requirements of California law, and asks the court to prohibit California lawmakers from allocating the Proposition 1A bond money until the requirements are met.

Stating that its plan for the Central Valley portion of the rail line violates sections of Proposition 1A, the lawsuit contends that an operating subsidy will be needed for construction of the Central Valley segment. An operating subsidy is outlawed under Prop. 1A. And complicating matters, the first segment of the rail system won’t even run high-speed trains until the entire system is build.

With unrealistic cost estimates and poor management charges, even the least expensive segment of the entire system is becoming a financial and political nightmare.

Sen. Michael Rubio, D-Bakersfield, who represents the Central Valley, even questioned why the Central Valley segment would be the first to be constructed. Since this segment runs through California’s farming areas and less-populated Central Valley cities, Rubio suggested that bringing water back to the Central Valley would be far more advantageous to the area than a high-speed train. “Why the Central Valley? Why not build from Bakersfield to Los Angeles or San Jose to Fresno? Get to the heart of the project.”

———————————————————

Background

In the three years since voters passed Proposition 1A, the $9 billion High-Speed Rail bond measure, the High-Speed Rail Authority has spent $800 million. But no new track has been constructed, no new, super-fast trains are running and no private investors have committed.

In November, the High-Speed Rail Authority released its long-awaited business plan. However, the plan leaves many important operations and funding questions unanswered, and it does not address how the authority will acquire private investors.

Many are deeply concerned that the authority will attempt to start construction of the grossly overpriced Central Valley segment, leaving taxpayers with the bill. The $98.5 billion current estimate has many questioning the ongoing out-of-control spending in California, on this plan, and many other state agencies.

Following a scathing report from the Legislative Analyst’s Office in November about the draft High-Speed Rail business plan, a recent Field poll found that 37 percent of voters, who supported the High-Speed Rail bond measure in 2008, would vote against it today.

“The poll finds that if such a re-vote election were held, Californians would reject the $9 billion bond package by a wide margin – 59 percent to 31 percent, with 10 percent undecided,” the Field website states.

The LAO report found that the earlier High Speed Rail plans lacked critical detail, and said that the 2012 plan had “inconsistencies, deceptive numbers, and missing details.”

Glaringly absent from the plan was any acknowledgment or estimate of the cost of anticipated economic losses resulting from negative impacts to businesses because of right-of-way acquisitions and construction activities, or losses from increased traffic near rail stations.

Further damning the project, the LAO said that the rail authority’s business plan does not comply with provisions in Proposition 1A. And the LAO expressed concerns about questionable and apparently inflated cost comparisons of building a new High-Speed Rail system, to the cost of increasing highway, road and airport capacity.

“The plan includes limited information about the initial 130 mile long construction segment that would run through Fresno,” the LAO stated, critical about missing plan details.


This and other stories about High-Speed Rail can be found at CalWatchdog

http://www.calwatchdog.com/2011/12/07/legislators-skeptical-of-high-speed-rail/

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Jobless Rate Manipulations

Katy Grimes: Anyone who has taken a high school statistics class knows that it’s often just a bag of tricks. As one high school teacher told me many years ago, “Numbers are made to be manipulated.”

With the current election season ramping up, it appears that political consultants and politicians have brushed up on high school statistics, and are using the tactics to make lemonade out of a sour economy.

Jobless rate drops sharply to 8.6 percent” read headlines all across the country. Only 140,000 jobs were gained in November. Here is the Bureau of Labor Statistics report.

But left out of most of the stories is that the rate dropped because the federal government doesn’t count the 487,000 additional people who stopped looking for work in November – 347,000 more people gave up looking for work, than actually got a job.

The real unemployment rate should be upwards of 11 percent, if only the federal government actually counted people who stopped looking for work, as unemployed, and didn’t count them as “out of the labor force.”

Interestingly, the Los Angeles Times had a different spin: ”But the numbers also touched off the kind of partisan reactions that are likely to shape the debate over the 11 months remaining before the presidential election.”

Partisan reaction? The numbers don’t lie. It takes people to lie about statistics.

Here is great overview of November Jobs Report, from Mike Shedlock at Townhall.com.

  • US Payrolls +120,000
  • US Unemployment Rate Declined .4 to 8.6 percent
  • Civilian labor force fell by 315,000
  • Those Not in Labor Force rose by 487,000
  • Participation Rate fell .2 percentage points to 64.0%, nearly matching a low last seen in 1984
  • Actual number of Employed (by Household Survey) rose by 278,000
  • Unemployment fell by 594,000
  • Civilian population rose by 172,000
  • Average workweek for all employees on private nonfarm payrolls was unchanged at 34.3 hours for the second consecutive month.
  • The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged down 0.1 hour to 33.6 hours in November.
  • Average hourly earnings for all employees in the private sector fell by 2 cents to $23.18
  • Government employment decreased by 20,000
  • The private sector has only recovered 33 percent of jobs lost in the peak-to-trough period of January 2008 to February 2010.
Shedlock added a couple more statistics:
  • In the last year, the civilian population rose by 1,726,000. Yet the labor force fell by 67,000.
  • In November, those “Not in Labor Force” rose by a whopping 487,000. If you are not in the labor force, you are not counted as unemployed.

“Digging under the surface, the drop in the unemployment rate is nothing  but a statistical mirage,” Shedlock wrote. “The official unemployment rate is 8.6 percent. However, if you start counting all the people that want a job but gave up, all the people with part-time jobs that want a full-time job, all the people who dropped off the unemployment rolls because their unemployment benefits ran out, etc., you get a closer picture of what the unemployment rate is.”

1,793,000 people have stopped looking for work in the U.S. How do you put a spin on that number?

DEC. 3, 2011

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Disgraced First 5 Bureaucrat Gets Taxpayer-Funded Golden Parachute

Imagine what your boss would do if you misplaced millions of dollars and failed to keep crucial records.

He or she probably wouldn’t hand you over a  bonus check for $250,000. Yet that’s precisely what happened to Evelyn Martinez, the former director of First 5 LA, according to a recent Los Angeles Times report.  Martinez was forced to resign last month by the First 5 Board of Directors, after an audit uncovered gross mismanagement within the children’s services agency.

In a letter to the board, "Martinez said she was entitled to a lump sum payment equal to 12 months of salary and health benefits and her unused vacation. Martinez, who earned more than $240,000 annually, also said she should receive an additional month of pay and health benefit costs because she was not given a 30-day written notice," the Los Angeles Times reported.

While those conditions were included in her contract, she was to receive them only if she was fired without cause. She was not eligible for severance pay if she resigned or was fired for cause, according to the contract, the Times reported.

Among the findings of the audit were that First 5 LA had a surplus of “hundreds of millions of dollars that had not been applied to any educational programs” and First 5 staffers failed to keep “enough documentation to show that competitive bidding took place,” according to the LA Times. Now Martinez, who earned $240,000 annually, will receive a full year’s severance plus health benefits, the LA Times reported.

A Similar Program Format

The First 5 program, which Martinez administered in Los Angeles, bears a striking resemblance to one proposed by a ballot measure scheduled for the June election. The so-called California Cancer Research Act seeks to build a First 5 like bureaucracy run by political appointees that would oversee the proceeds of nearly $1 billion in additional taxes. This includes $16 million per year for bureaucrat salaries that continues year after year regardless of whether California can afford it or not.

Martinez and the First 5 bureaucracy is a perfect example of how voters were snookered into growing government under the auspices of a health program. 

While there are a myriad of ideas about how to fix California’s broken fiscal situation, creating a brand new bureaucracy with hundreds of new staffers that can only be fired at great expense to the taxpayer surely doesn’t rank among the most intelligent. Californians deserve better than this, and fortunately, they’ll have a chance to say so come this June’s election.

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Cancer Research Ballot Boondoggle

California is only four months into the new fiscal year and already the budget has sprung a sizable leak. As predicted, the much-touted revenue infusion that Gov. Jerry Brown and Democratic legislators relied on to close the budget gap in June, has failed to produce ongoing funds.

Responsible leaders would address the current shortfall before taking on additional burdens. However, expecting today’s politicians to do the right thing is naïve - especially politicians like those behind the suspiciously titled “California Cancer Research Act.”

There are 64 ballot proposals already filed with Attorney General Kamala Harris for the November 2012 ballot. If the California Cancer Research Act initiative is approved by voters, the tax on cigarettes in California will skyrocket by $1 per pack. Opponents of the measure say that the $1 per pack increase is a tax increase of nearly one billion dollars on California taxpayers, designed to pay for a new government-spending program, and create a new state bureaucracy to oversee it. The California Legislative Analyst's Office determined that the new cigarette tax revenues would generate of approximately $855 million annually by 2011- 12.

Budget Outlook Bleak

The Legislative Analyst’s Office released its 2012-13 fiscal outlook report this week, announcing that the education and social services spending trigger cuts are looming. However, the cuts are no surprise, as they were pre-determined by Democrats in the budget – to feign surprise is fallacious.

Unless California comes up with $2 billion dollars immediately, the state will be forced to make severe cuts to K-12 education. Round two of the trigger cuts will be following for community colleges and universities.

While the LAO is warning of severe education and social service cuts, others attached to state government are scheming to grow government.

Spending Money We Don’t Have

Politicians already have plans for the $885 million annual tax revenue.

Ballotpedia reported:

$75 million annually would maintain existing tobacco tax revenue streams to ensure that the Proposition 99, Proposition 10, General Fund and Breast Cancer programs funded by existing tobacco taxes are not negatively impacted by the new excise tax.

$468 million annually would to go research of cancer and tobacco-related disease "for the purpose of grants and loans to support cancer research.

$117 million annually would go to facilities and capital equipment for research.

$156 million annually would go to tobacco prevention and cessation to the state’s existing tobacco control program. These funds would be divided between the California Department of Public Health, and the California Department of Education, for their existing programs to prevent and reduce the use of tobacco.

$ 23 million annually would go to tobacco law enforcement.

Approximately $16 million annually would go to administration, including the collection, auditing, and distribution of revenue.

Who Is Behind The Cancer Cure Initiative?

Former Senate President pro Tem Don Perata authored the measure, which has opponents wary.  Perata has been a controversial politician, tied to big labor, and linked to several scandals. More recently, Perata was was tied to Oakland City Councilman Ignacio De La Fuente, who received a $25,000 consulting fee in August 2009 from "Hope 2010," a ballot measure committee controlled by Perata, the supporting campaign's co-chairman. De La Fuente was hired to contact 10 labor groups for petition signatures, and 10 business groups for campaign contributions in the Sacramento and Oakland areas.

Supporters of the measure created a coalition called "Californians for a Cure,” which hosts the website for the ballot measure.

Haven’t We Learned Anything?

Californians should have learned that emotionally charged ballot measures are usually a cover for another scheme. This boondoggle ballot measure will have much of the expected revenue going towards more administrative buildings, bureaucracies and salaries for an unelected governing committee.

And much of the budget for the new bureaucracies will duplicate the work of existing programs across the state.

That’s how it’s done in California.

Reckless spending programs such as this ballot measure got California into the mess it’s in today. High-Speed Rail, tribal gaming, Proposition 98, and similar ballot measures, cost Californians a fortune in government expansion, mandates and concessions.

Instead of creating more bureaucracy and another program taxpayers have to pay for, California politicians need to act like adults and find a way to pay for the programs we have, and make serious cuts to government bureaucracies. 

- Katy Grimes

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Cancer Research Ballot Boondoggle

California is only four months into the new fiscal year and already the budget has sprung a sizable leak. As predicted, the much-touted revenue infusion that Gov. Jerry Brown and Democratic legislators relied on to close the budget gap in June, has failed to produce ongoing funds.

Responsible leaders would address the current shortfall before taking on additional burdens. However, expecting today’s politicians to do the right thing is naïve - especially politicians like those behind the suspiciously titled “California Cancer Research Act.”

There are 64 ballot proposals already filed with Attorney General Kamala Harris for the November 2012 ballot. If the California Cancer Research Act initiative is approved by voters, the tax on cigarettes in California will skyrocket by $1 per pack. Opponents of the measure say that the $1 per pack increase is a tax increase of nearly one billion dollars on California taxpayers, designed to pay for a new government-spending program, and create a new state bureaucracy to oversee it. The California Legislative Analyst's Office determined that the new cigarette tax revenues would generate of approximately $855 million annually by 2011- 12.

Budget Outlook Bleak

The Legislative Analyst’s Office released its 2012-13 fiscal outlook report this week, announcing that the education and social services spending trigger cuts are looming. However, the cuts are no surprise, as they were pre-determined by Democrats in the budget – to feign surprise is fallacious.

Unless California comes up with $2 billion dollars immediately, the state will be forced to make severe cuts to K-12 education. Round two of the trigger cuts will be following for community colleges and universities.

While the LAO is warning of severe education and social service cuts, others attached to state government are scheming to grow government.

Spending Money We Don’t Have

Politicians already have plans for the $885 million annual tax revenue.

Ballotpedia reported:

$75 million annually would maintain existing tobacco tax revenue streams to ensure that the Proposition 99, Proposition 10, General Fund and Breast Cancer programs funded by existing tobacco taxes are not negatively impacted by the new excise tax.

$468 million annually would to go research of cancer and tobacco-related disease "for the purpose of grants and loans to support cancer research.

$117 million annually would go to facilities and capital equipment for research.

$156 million annually would go to tobacco prevention and cessation to the state’s existing tobacco control program. These funds would be divided between the California Department of Public Health, and the California Department of Education, for their existing programs to prevent and reduce the use of tobacco.

$ 23 million annually would go to tobacco law enforcement.

Approximately $16 million annually would go to administration, including the collection, auditing, and distribution of revenue.

Who Is Behind The Cancer Cure Initiative?

Former Senate President pro Tem Don Perata authored the measure, which has opponents wary.  Perata has been a controversial politician, tied to big labor, and linked to several scandals. More recently, Perata was was tied to Oakland City Councilman Ignacio De La Fuente, who received a $25,000 consulting fee in August 2009 from "Hope 2010," a ballot measure committee controlled by Perata, the supporting campaign's co-chairman. De La Fuente was hired to contact 10 labor groups for petition signatures, and 10 business groups for campaign contributions in the Sacramento and Oakland areas.

Supporters of the measure created a coalition called "Californians for a Cure,” which hosts the website for the ballot measure.

Haven’t We Learned Anything?

Californians should have learned that emotionally charged ballot measures are usually a cover for another scheme. This boondoggle ballot measure will have much of the expected revenue going towards more administrative buildings, bureaucracies and salaries for an unelected governing committee.

And much of the budget for the new bureaucracies will duplicate the work of existing programs across the state.

That’s how it’s done in California.

Reckless spending programs such as this ballot measure got California into the mess it’s in today. High-Speed Rail, tribal gaming, Proposition 98, and similar ballot measures, cost Californians a fortune in government expansion, mandates and concessions.

Instead of creating more bureaucracy and another program taxpayers have to pay for, California politicians need to act like adults and find a way to pay for the programs we have, and make serious cuts to government bureaucracies. 

- Katy Grimes

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Could a Gas Explosion Strike Again?

A culture of complacency still exists after the Sept. 9, 2010 natural-gas explosion in San Bruno, in which eight people were killed and a neighbored leveled. Seventy homes sustained damage and 18 homes adjacent to the destroyed dwellings were left uninhabitable.

In October, the California Public Utility Commission created an independent review panel of industry experts  to investigate the explosion in San Bruno. The panel’s June report ripped into Pacific Gas & Electric Co.

But nothing has happened since.

Among many allegations, the reportcharged that PG&E and the CPUC are more concerned about filling out reports and “checking boxes” than actual safety.

The CPUC’s Web site says it “serves the public interest by protecting consumers and ensuring the provision of safe, reliable utility service.”  But in a press statement released the same day as the independent report, the CPUC offered a shallow excuse for the lack of oversight of the utility.  “The report concludes that the pipeline rupture was ‘a consequence of multiple weaknesses in PG&E’s management and oversight of the safety of its gas transmission system,’ and that the CPUC ‘did not have the resources to monitor PG&E’s performance in pipeline integrity management adequately or the organizational focus that would have elevated concerns about PG&E’s performance in a meaningful way.”

The same day, however, CPUC President Michael Peevey chose more appropriate words and said the report highlighted a “culture of complacency” at the CPUC, and was “damning of PG&E across the board.” They were tough words and made great sound bites, but appear to have fallen on deaf ears.

With three components to the report, the first was to find underlying reasons for the incident.  The second was to delve into the complexities of pipeline integrity management and regulatory oversight.  The third was to offer recommendations to diminish the likelihood of future incidents.

Shocking Conclusions

Many of the report’s conclusions were devastating, as well as shocking. The National Transportation Safety Board’s findings identified that both the material and the fabrication welds of the section of pipeline that failed did not meet engineering standards for natural gas pipelines.

The independent panel made pipeline integrity management the primary focus of the report. “As a result of our investigation, the Panel concludes the explosion of the pipeline at San Bruno was a consequence of multiple weaknesses in PG&E’s management and oversight of the safety of its gas transmission system,” the panel wrote. The panel even found that PG&E had provided incorrect pipeline data.

However, delivering a one-two punch, the panel also found that “the CPUC did not have the resources to monitor PG&E’s performance in pipeline integrity management adequately or the organizational focus that would have elevated concerns about PG&E’s performance in a meaningful way.” The CPUC actually admitted that it was less effective in dealing with PG&E than any other utility because of the ‘culture’ of PG&E. Critics of the CPUC report that there is a revolving door for employees and executives between the regulator and PG&E, as well as with Southern California Edison.

story published this week in the San Francisco Examiner highlighted this revolving door: “Exhibit A is Michael Peevey, commission president and onetime CEO of SoCal Edison, one of the utilities his agency regulates. But he’s not alone: the agency’s top lawyer, Frank Lindh, worked at PG&E for 16 years, leading Peninsula Assemblyman Jerry Hill to question Lindh’s involvement in investigating the San Bruno blast.”

And the Examiner found even more incestuousness: “Consumer advocates point to other examples. Delaney Hunter, former CPUC government affairs chief, became an energy lobbyist in 2008. Former Executive Director Steve Larson left the CPUC in 2007 to work at a natural gas company. Ex-Commissioner Jessie J. Knight now leads San Diego Gas & Electric.”

Additionally, according to the independent panel’s report, PG&E management had focused primarily on the safety of its employees, but lacked an equivalent focus on public safety. “But the goals (PG&E) sets for management compensation purposes, its investments, and its practices do not suggest its focus is on achieving an industry leading pipeline safety and integrity program,” the report stated. Unfortunately, PG&E appears concerned with image than safety.

More Findings

Additional findings by the independent review panel include:

* “PG&E has no overall strategy to improve how it assesses the integrity of its system.”

* “In reviewing the pipeline 2020 program, we did not find it to be well-reasoned or based on a thoughtful examination of alternatives. The plan appears to be reactive.”

* “PG&E’s management acknowledged to the panel that the implementation of field force automation is not as advanced as what other companies in the industry have available.”

In 2007, a PG&E Enterprise Risk Management program identified that gas and electric system safety was one of the top 10 catastrophic risks facing PG&E. The report said that the utility acknowledged “a major natural gas transmission accident would  expose PG&E to financial exposure anywhere from $100 million to $500 million, cause significant injury, illness or environmental impact, and national or international attention resulting in a severe negative consequence to the company’s image or reputation with regulators, consumers, or the general public.”

Dysfunctional Culture

The damning report also identified “five factors as contributing to a dysfunctional culture at PG&E: excessive levels of management, inconsistent presence of subject matter expertise in management ranks, appearance-led strategy setting, insularity, (and) overemphasis on financial performance.”

It would appear to anyone reading the report that the CPUC has allowed PG&E to operate with little accountability and perhaps only cursory oversight.

While PG&E is a privately held “Investor Owned Utility,” it is difficult to ignore the utility’s excessive spending practices and failure to invest in important pipeline upgrades.

Last fall, The Utility Reform Network (TURN) released PG&E memos proving that the utility considered the San Bruno pipeline among its top 100 riskiest sections needing replacement.

After the San Bruno explosion, PG&E acknowledged that it took nearly two hours to close the manual shut-off valves on the pipeline. State officials reported that if the valves had been automatic, the loss of life and property damage would have been measured in minutes, instead of hours.

Prior to the explosion, some San Bruno residents had reported smelling gas fumes in the neighborhood numerous times, and had reported this to PG&E.

And Mike Wiseman, a transmission pipeline worker, filed a lawsuit filed before the San Bruno blast, alleging a cover up involving a supervisor who ignored safety procedures as well as grievous safety violations. Wiseman claimed that PG&E management knew about the safety violations.

PG&E Executive Enrichment

Critics of PG&E’s spending say that a great deal of money has gone to personal enrichment at the utility instead of improving pipeline safety. In the Manteca Bulletin, Dennis Wyatt listed some of the excessive spending at PG&E:

* $46 million into the Proposition 16 campaign in a failed attempt to get voters to amend the California constitution to provide PG&E with a guaranteed monopoly.

* $35 million to sweeten departed chief executive officer Peter Darbee’s severance package.

* $12 million to buy a new corporate jet.

* More than $10 million into bonuses paid to top executives as a reward for steering the company to the edge of bankruptcy.

“That’s $103 million in just four instances that could have gone into improving pipeline safety,” Wyatt wrote.

And Wyatt reported, “[T]hat is on top of a $35 million fine for state-imposed building and collection violations, $26 million in fines for a 2009 Christmas Eve natural gas pipeline explosion that killed a customer in Rancho Cordova, and millions more in fines for wild land fires started due to failing to maintain power line right-of-ways.”

It has been alleged by many utility reform activists that the CPUC rarely imposes fines or penalties against PG&E, making the CPUC appear to be just as complicit as PG&E in its blasé attitude about customer safety.

Activists and customers are asking for investigations into the cozy relationship between the regulator and utility, particularly in the aftermath of the San Bruno devastation and revelations of PG&E’s many safety violations. And many hope that the report does not become just another exercise in futility, as do most reports involving state agencies and oversight in California.

– Katy Grimes

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Today’s Hottest Petitions

Katy Grimes: I am on an email list for a left-leaning environmental organization called Care2.com, Inc., which is somehow tied to Al Gore’s enviro organization.  Care2 sends out the most insipid, whiny emails, including the one today, shilling for the State Parks Department and asking for readers to sign a petition “so California can keep its state parks open.”

“It’s scary to think that budget cuts and proposals from logging companies could threaten our most precious lands, but it’s true,” read the email from “Emily L.”

Emily L.’s email encouraged action. “We need to tell Governor-Elect Jerry Brown, loud and clear, that we want state parks preserved for generations. Sign the petition so California can keep its state parks open. »

Apparently, even though California voters did not vote to approve Proposition 21 to add an $18 DMV fee/tax for state parks, that won’t stop the Care2 people. They claim that in order “to retain California’s brilliant state parks for generations,” we must sign a petition.

But the petition doesn’t say anything, nor does it state a clear purpose, other than (in bold), “Don’t let any state parks go extinct. Help keep the pressure on California’s new Governor to make sure California keeps its state parks open and healthy.”

They do however, identify the threats to state parks: “But numerous threats to our parks have come up in the past years, including budget cuts and logging proposals.” Hmmm. I thought that environmentalists already successfully rid the state of big logging companies.

If the subject of state parks doesn’t tickle your fancy, the Care2 website offers “free petitions” for anyone pushing a cause. Well, maybe not anyone… But if you want to support animal rights causes, save the wolf, thirsty bushmen, whales, Haitians, students, oceans, Buddhist relics, or just look at today’s hottest petitions, this is the website for you.

The website provides easy instructions on how to start a petition, “share with your friends, and change the world.”

Apparently the need to belong – to anything – defies any sense at all. There are 18,406 people who signed the “Don’t Swim While Bushmen Go Thirsty” petition. 53,763 people signed  on to the “Protect Wildlife Habitat From Climate Change” petition, but only four signatures are on the “Petition to get our class of 2011 senior t-shirts.” I just hope I don’t know one of these people.

At least the “petition to stop the discrimination of tattoos and piercings in the workplace,” sponsored by the Alliance of Tattooed or Pierced Professionals, has a purpose. The 107 people who have already signed the petition (and left unbelievable comments), think it has merit.

NOV. 19, 2010

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Rockefeller Wants FOX, MSNBC Eliminated

This week, United States Senator Jay Rockefeller said that the country would be a better place if the “endless barking” by news networks FOX and MSNBC was stopped – eliminated – shut down. Rockefeller said he wants to see the Federal Communications Commission shut down Fox News and MSNBC.

“There’s a little bug inside of me which wants to get the FCC to say to FOX and to MSNBC: ‘Out. Off. End. Goodbye.’ It would be a big favor to political discourse; our ability to do our work here in Congress, and to the American people, to be able to talk with each other and have some faith in their government and more importantly, in their future,” said Rockefeller.

What next for Rockefeller – eliminate all new media? Conservative blogs? Or just the media critical of him?

Demonstrating that he is not only part of the problem in Washington, Rockefeller has shown just how out of touch he is with the electorate that he finds so pesky. Accountability is a funny thing and something Rockefeller does not appear to support – at least for himself.

To suggest that the United States electorate will be better informed if we eliminate two very different media outlets would make his life easier, only proves that FOX and MSNBC have an impact.

Rockefeller didn’t just stop with his desire to eliminate the news networks. “When it comes to developing content, our entertainment machine is too often in a race to the bottom. Even worse, our news media has all but surrendered to the forces of entertainment. Instead of a watchdog that is a check on the excesses of government and business, we have the endless barking of a 24-hour news cycle. We have journalism that is always ravenous for the next rumor, but insufficiently hungry for the facts that can nourish our democracy. As citizens, we are paying a price.”

It has become a common theme amongst government officials, to complain about the 24-hour news cycle. I hear the complaints at the state Capitol regularly. Rockefeller and others of a like mind are probably just fearful of the push by the electorate to shrink the size of government.

Ironically, the chairman of the powerful Senate Committee on Commerce, Science, and Transportation, Rockefeller didn’t seem to realize that the FCC only regulates broadcast airwaves, not cable television.

I hope that someone runs against Rockefeller in the next election and silences his endless barking. Let the American electorate demonstrate how freedom of speech works, and send him a message… and right back home to unemployment line.

NOV. 19, 2010

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Obscuring Truth About Prop. 23's Backers

In the Sacramento Bee Sunday Nov. 14, there were five different stories about climate change, including stories about the recently defeated Proposition 23, California’s global warming law (AB32), which Prop. 23 sought to suspend until the state’s economy improved, as well as stories warning of giant sheets of ice and looming catastrophe’s along coasts, all told of human-induced global warming and the need to enact more governmental solutions and policies.

Only buried deep in one story however, was the disclosure that “scientists’ estimates of the potential of coastal flooding due to warming could be wrong.”

One column by Ann Notthoff, California advocacy director for the Natural Resources Defense Council, celebrated the defeat of Proposition 23, said that it meant that people who voted to defeat the initiative that would have only suspended California’s global warming law, “transcended politics as usual,” because it “wasn’t about championing liberal or conservative values.” Notthoff wrote that the defeat of Prop. 23 “was about hope and determination against fear and retreat.”

Apparently those of us who wish to see California’s economy improve before the state goes completely insolvent championing green businesses, instill “fear and retreat.”

The NRDC’s mission is “to safeguard the Earth: its people, its plants and animals and the natural systems on which all life depends.” The group claims, “We seek to break down the pattern of disproportionate environmental burdens borne by people of color and others who face social or economic inequities.”

Information about the National Resources Defense Council and its funding, revealed (courtesy of Guidestar) that the Tides Foundation kept popping up, along with all of the usual environmental players: Greenpeace, the Union of Concerned Scientists, the Environmental Working Group and the Ruckus Society, several of which gave large sums of money to defeat Prop. 23. The Heinz Endowment and the Tides Foundation continue to fund many of these aggressive environmental groups, which are often in the forefront of left-wing political issues.

Missing from nearly every story or opinion piece, was the economic information about the substantial subsidies that are supporting green technology and green companies. “Jobs in this sector are growing at 10 times the rate of any other industry. Companies are moving to California to participate in this bonanza,” Notthoff wrote.

The “bonanza” Notthoff is referring to would be the government subsidy bonanza. A Google search of “green tech subsidies in California” brings up many Web sites hawking how to start a green business, and where to get green tech grants.

However, Notthoff’s claim of a business bonanza is completely refuted by Wall Street Journal contributor George Gilder. “In a parody of supply-side economics, advocates of AB32 envisage the substitution of alternative energy sources that create new revenue sources, new jobs and industries. Their economic model sees new wealth emerge from jobs dismantling the existing energy economy and replacing it with a Medieval system of windmills and solar collectors. By this logic we could all get rich by razing the existing housing plant and replacing it with new-fangled tents,” wrote Gilder.

A column by Bee Senior Editor Dan Morain, ostensibly about governor-elect Jerry Brown, prominently featured hedge fund manager and billionaire Thomas Steyer, a major donor to the “No on Prop. 23″ campaign which used “big oil” as the evil justification for defeat of Prop. 23. But nowhere in Morain’s opinion piece does he mention the personal fortune Steyer made in big oil. Morain even stated, “Steyer, who has no financial stake in the future of AB 32…”

In a CalWatchdog story, Wayne Lusvardi recently wrote, “Steyer runs an investment firm that holds stock in ‘dirty coal’ and nuclear plants, oil and gas companies in Texas, Oklahoma and Louisiana.  Additionally, Steyer’s investment firm holds stock in the leading photovoltaic solar panel supplier in California, Yingli Green Energy Holding Co. of China. Steyer’s firm, Farallon Capital Management Co., also is an external fund manager for CalPERS.”

A pre-election debate over Prop. 23 between Republican Assemblyman Dan Logue (author of Prop. 23) and Steyer shed light into Steyer’s holdings, as well as the source of his wealth. I attended the debate and wrote afterward, “A representative from the Howard Jarvis Taxpayer’s Association asked Steyer, ‘Who truly profits with AB32’s implementation?’ She also asked him about his ‘$100 million of gas and oil holdings,’ and if profiting off of AB32 was a conflict of interest.”

Unwilling to address the source of his wealth, and clearly ducking the question, Steyer only answered, “We make investments through a number of private industries, but I do believe that Proposition 23 is a disaster for the state.” He offered no other comment and instead, changed the subject.

Only at the end of the Bee story about the dangers of melting ice was the statement,  ”Strictly speaking, scientists have not proved that human-induced global warming is the cause of the changes.” The story titled, “Scientists find troubling new data on ice,” explained, “The strongest reason to think that the level of the sea could undergo big changes is that it has done so in the past. With the waxing and waning of ice ages, driven by wobbles in Earth’s orbit, sea level has varied by hundreds of feet, with shorelines moving many miles in either direction,” without human involvement.

So while California global warming threats continue to deplete the bank accounts of middle and working-class taxpayers and drive business owners out of the state, wealthy guys like Steyer shill for those looking to claim some of the government subsidy bonanza.

Gov. Arnold Schwarzenegger’s recent claim, “The oil companies flexed their muscles trying to overturn our laws but we flexed back,” about the Prop. 23 defeat, is misleading given that it was revealed that the campaign to defeat Prop. 23 and save AB32, spent more than $31 million, while the Prop. 23 campaign received just $10 million from “big oil.” Joining Steyer and his $5 million commitment to defeat Prop. 23, were venture capitalists from Google and Intel. Former chair of The Gap clothing empire, Robert Fisher, contributed $1 million.

Sneaky “environmental” groups and PACs such as a No on Prop. 23 campaign committee, backed by the Ella Baker Center for Human Rights and founded by Van Jones, reported more than $697,000 in contributions.

Californians for Clean Energy and Jobs received more than $23 million by the end of the campaign.

And the Yes on Prop. 23 campaign hardly reported staggering donations from big oil, according to the Secretary of State.

Climate change is big business in California. It is difficult not to predict that the green industry is headed for collapse, like the banking and housing industries, but only after the state has spent billions to prop it up. Don’t get in the way of the bonanza.

–Katy Grimes

Nov. 18, 2010

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Union Candidate Quiz Ignored Education Issues

I used to think school boards were about schools, and the kids they are charged with educating. At one time this was the case. But today, the majority of school board positions appear to be union labor representatives.

My friend Paige Powell ran for the Sacramento City Unified School District board this past election against an incumbent, known for union allegiance. Powell is not a politician, and has never run for public office before. She’s a credentialed high school English teacher, a parent and a resident within the city school district. She is also a member of the California Teachers Association.

As part of the endorsement process for running for the school board, Powell received a nine-page questionnaire from the AFL-CIO, a labor federation of 57 national and international labor unions. Since when does the AFL-CIO get involved in local schools? This is standard operating procedure. CTA is part of the AFL-CIO umbrella.

Powell’s reasons for running for school board were simple, particularly for any concerned parent: The lack of academic achievement for students, the financial stability of the school district and a lack of community involvement in the schools. Powell said she is a staunch advocate of financial responsibility for schools and districts, as well as teacher accountability.

The union questionnaire asked surprisingly probing personal and ideological questions, not one questions was about education, or the students. The nine-page questionnaire was an entirely about employment and the employees within a school district.

Powell said that upon receipt of the labor questionnaire, she started to immediately fill it out. And then she stopped herself. However, at the moment she made the decision not to complete the union questionnaire, Powell said she knew she would lose the race.

Powell announced during the campaign that she terminated her contributions to the California Teachers’ Associationpolitical action fund to protest its endorsement of her opponent, the incumbent, who is not a teacher.? “It is amazing to me that the union would rather support the reelection of an incumbent non-educator rather than help elect at least one public school teacher to a school board badly in need of educational expertise, particularly an award-winning public school teacher who enjoys the broad support of both her teaching colleagues and administrators,” said Powell.

“It was clear from my interview with union officials that they were only willing to support a candidate who would oppose independent charter schools like Sacramento High,” added Powell.

Citing some of the questions within the AFL-CIO questionnaire, Powell said they were entirely about labor and employment. “Do you believe in involving employees, through their union, in coming up with creative ideas to improve the work place (employee empowerment)?

Another question asked, “As a board member, would you vote to spend school district budget money to hire certified staff to educate teachers about implementing “Labor History” courses into the curriculum?

An entire page of the questionnaire was devoted to “The Right To Organize,” and stated, “The quality of our life depends on the quality of our jobs. Union membership gives employees a voice at work, improves productivity and contributes to the economic vitality of our communities.”

Powell said she was appalled at the blatant union organizing language within the questionnaire, and felt that the election should not be about unions, but about how to provide a quality education to students.

Critical of the current school board Powell said, “An observer of board meetings will hear a lot of discussion about adults but very little about students. This board has spent a lot of time in workshops and meetings talking about how they should govern themselves.”

The AFL-CIO questionnaire included a section about “Public sector privatization/contracting out,” and asked if the school board candidate supported the concept of privatization. One of the questions in this section asked if the candidate supported requiring a cost accounting analysis of Requests For Proposals, contracts, change orders and “other hidden costs of contracting out.”

The questionnaire asked if the candidate supported the idea of using prevailing wage calculations on projects using public funding, and the use of project labor agreements.

And in the questionnaire section titled “Labor Appointments,” it asked “Would you as a school district official, agree to have your prospective appointees to boards/commissions/committees, meet jointly with the leaders of the Sacramento Central Labor Council, and Sacramento Building & Construction trades Council to ensure working people have a full voice in school district policy decisions before you make a commitment to appoint them?”

Powell said she is supportive of the charter school movement, and received the endorsement of Sacramento Mayor Kevin Johnson, founder of Sacramento Charter High School, which has been under attack since it’s founding, for bucking the local teachers union.

Powell was critical of the unions’ attacks on Sacramento high and said, “While the teachers union is obsessed with trying to shut down a single charter school, they are largely ignoring the chronic educational and financial problems that are besieging the rest of Sacramento schools.”

Powell said she was frustrated during the campaign because union supporters would not address the poor academic achievement of a majority of public school students, or even the Sacramento school district’s ballooning debts, which threaten to devastate the school district.

Nowhere in the entire nine-page AFL-CIO questionnaire were students’ needs ever addressed, which Powell said was her primary purpose for running. “Our student dropout rate is scandalous,” said Powell. “I ran for school board because we need board members who are close enough to kids to know that every decision they make has an impact on the children’s lives – and not to be a union tool.”

– Katy Grimes

CalWatchdog.com

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Is California Ungovernable?

I jokingly referred earlier in the week to Meg Whitman’s gubernatorial campaign as the worst campaign ever. Now I’m not joking. And while I am sure it’s not the worst ever, it was really bad.

Running against former California Governor Jerry Brown should have been a slam dunk. Instead Whitman ran on the fence, trying to appeal to everyone, about every issue… and she came off appearing to stand for nothing.

Whitman could and should have run as the anti-Arnold, expecially when the Governator refused to endorse her. She could have very simply run as anti-Washington, D.C. by asking voters if we wanted California to end up looking like President Barrack Obama’s Washington.

But she didn’t, and frankly, she didn’t even run against Jerry Brown.

By election night, voters still had no idea who Meg Whitman was. Instead of connecting with her on any level, people who had never met her told me that she is “cold,” “mean” and “cruel.” Women didn’t like her. Ditto men union employees, teachers, liberals, conservatives and even the California Republican party, which didn’t exactly did not go out on a limb to support her.

Whitman talked often during her campaign of her “spine of steel” and her disinterest in whether she was liked. “If you have a huge need to be liked, if you have a huge need to be popular, I think in the near term this is a very bad job for you,” she said.

Whitman is not the first big company executive to think business experience neatly translated into political success. No, the road to California’s Capitol is paved with the broken bodies of business men and women – which is why the successful business-to-politics candidates usually start small by running for city or county seats. Or by voting.

But one of the most disturbing issues during Whitman’s campaign was that during press interviews Whitman’s “people” would interrupt her answers to reporters’ questions. It was clear from the beginning of her campaign that Whitman was not driving the campaign bus.

And that’s one of the many reasons she lost. California voters made clear that they did not want Whitman’s consultants running the show in the state (or for that matter, ever working again in California). But will anyone in the Republican party listen?

Voters were looking for a leader, now said to be ungovernable. But I do not believe California is ungovernable. And the next two years will prove it.

With big national wins, any successes the Republicans have will be felt, even in California. If Congress is successful at cutting taxes, California wins. If Obamacare is rolled back or repealed, California wins. If strict environmental regulations are modified, or cap and trade is tabled for the next few years, California wins.

While California is a mess – and there’s no doubt that the state is in a heap of trouble – if Republicans in Congress make headway in shrinking government, California wins.

But it’s a really big “if.” The flip side of this scenario is that California politicians will likely thumb their collective noses at the rest of the country and forge ahead with their liberal social and economic agendas. They’ll finish implementing California’s global warming law, AB 32, and state-mandated and funded health care, as well as new tax and fee increases, increased strict environmental regulations and government ‘redevelopment” schemes that will only lead to more Californians fleeing the state, which will further erode the tax base.

Ironically, this comes at a time when the debt-drowning United Kingdom is cutting spending by 20 percent and will eliminate nearly 500,000 government jobs by 2015. Germany has reined in unnecessary spending and now their economy is booming. Unemployment there is down to 7.5 percent, while America’s hovers around 9.6 percent (it’s still 12  to 13 percent in California).

If anything needs fixing, it’s the decision making coming out of the Republican party , save for only a few reasonable voices. The  arrogance, abuse, waste and insider party cronyism epitomizes just how out of touch the party leadership is with the voter base.

California is not ungovernable, but the Republican Party just proved that it is sorely unfit to take up the task of trying to govern. The time is ripe for a leadership change, which would make the California Republican Party the party of “yes” once again.

- Katy Grimes

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Dark Days Ahead For Solar Company

Katy Grimes: The day after the election, the Los Angeles Times reported that Solyndra Inc., a solar power system manufacturing company in the San Francisco Bay area, is closing one of its factories, laying off 40 employees and letting the contracts for more than 150 temporary workers expire.

It’s hard not to question the timing of this information.

Even with substantial government subsidies, credits and loan guarantees, many are wondering if Solyndra was enticed by the Schwarzenegger administration and/or opponents of Prop 23 to keep the news of the downsize quiet until after Tuesday’s election, in order to guarantee failure of the proposition. It certainly appears so.

The Times reported Solyndra had received “a $535-million federal loan guarantee, more than $1 billion in private equity funds and supportive visits from dignitaries such as  Gov. Arnold Schwarzenegger, Energy Secretary Steven Chu, Vice President joe Biden and President Barack Obama.”

Backers of AB32, California’s overreaching 2006 global warming act, promised green jobs for everyone. The governor has been an aggressive, vocal proponent of the green industry in California – a position that now only looks like an attempt to gain a legacy – any legacy.

Proponents of Prop. 23, the ballot initiative that would have suspended AB 32 until California unemployment drops to 5.5 percent, have been warning that California’s manufacturing jobs are leaving the state due to business-stifling regulations in the state, and that China has become a formidable competitor.

And now suddenly it’s news that a large, publicly subsidized solar manufacturer is scaling back?

Joe Vranich, a California Business Relocation Coach, has been keeping track of the companies leaving the state, including many solar manufacturers who have been relocating to Oregon, Georgia  and other business-friendly states.

By October 12, Vranich had counted 158 companies leaving California, which is more than three times the total of 2009. Readthrough Vranich’s list and notice how many of the companies are green-tech companies.

It’s more than just a downsizing for Solyndra – it’s a slap in the face to the Department of Energy. The DOE used Solyndra as an example of a company benefitting from the stimulus package and loan-guarantee program, expecting that it would create green jobs. It was a very expensive program built on hope and change.

Is anyone in California listening?

NOV. 5, 2010  www.calwatchdog.com

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Going green – more hype than reality

Going green is costly, and not as popular as the government would have you believe. Many voters agree, and now a new report confirms this.

report released just this morning by auto analysts at J.D. Power Associates states that by 2020, the majority of new cars sold around the world will still run on gasoline, and not electricity, according to the report “Drive Green 2020: More Hope Than Reality.” In ten years, only 7.3% of passenger vehicles sold globally will be hybrids or plug-in cars of some kind, the study predicts.

A CNNMoney.com story reported this morning, “Percentages for the U.S. will be higher — about 14% of the total new car market — but the vast majority of those will be “conventional” non-plug-in hybrids like the Toyota Prius or Ford Fusion Hybrid, said Mike Omotoso, director of powertrain forecasting for J.D. Power.”

According to the report, it will be difficult to convince large numbers of consumers to switch from conventionally powered passenger vehicles to HEVs and BEVs. A consumer migration to alternative powertrain technologies will most likely require either one of the following scenarios, or some combination of these scenarios:

  • A significant increase in the global price of petroleum-based fuels by 2020
  • A substantial breakthrough in green technologies that would reduce costs and improve consumer confidence
  • A coordinated government policy to encourage consumers to purchase these vehicles

In a press release by J.D. Power, John Humphrey, senior vice president of automotive operations at J.D. Power and Associates, said, “Based on our research of consumer attitudes toward these technologies—and barring significant changes to public policy, including tax incentives and higher fuel economy standards—we don’t anticipate a mass migration to green vehicles in the coming decade.”

What does this mean for aggressive, green governmental regulations? Humphrey said because of the lack of consistency in governmental regulations, global automakers are forced to hedge their options by seeking alliances and technology-sharing agreements. The heavy fixed costs associated with developing multiple powertrain options simultaneously are prohibitively expensive. When combined with the projected lower sales volumes of these products, collaboration between auto companies is almost a necessity to control costs and remain competitive.

Auto writer Phil LeBeau with CNBC correctly identified the exorbitant costs of purchasing the electric and hybrid vehicles, as the reason the cars are not selling more. “Even with a $7,500 federal tax credit and additional tax breaks from state governments, the person who buys the Volt will still have to take out a loan/pay $41,000 when they go in to get the car.”

LeBeau says, “The car will wind up costing far less in the long run after people do their taxes,” but I disagree. I’ve run the numbers on hybrids, and it turns out that even with the (exaggerated) mileage estimates advertised, because the purchase price is so high, a lower-priced regular fuel car that gets good mileage is still a better financial deal, during the life of the car. Which is exactly why the government is offering subsidies on the new electric cars, as well as subsidizing the industry.

This report is good news for supporters of Proposition 23. Even J.D. Power is not buying the green, enviro-hype.

Information about the report is available at JDPowers.com

OCT. 27, 2010 

 

CalWatchDog


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