There is finally a budget deal. The Democrats agreed to only spend the total budget amount that the President had asked for. That saves you nearly $150 billion over the next 5 years (because the base for future increases is lower) which is enough to avoid the increases in the Alternative Minimum Tax that many want to see. I feel particularly happy about this because this all really started with the letter I circulated this spring on which 147 members of Congress agreed to uphold the president’s veto of any spending bill over his requested amount. Bills went to the president, he vetoed them and the vetoes were upheld which is why majority Democrats had to make a deal. That all worked out quite well. However, I still voted against the spending bill, and here’s why:

•First of all, I actually thought the President’s spending number was too high also. We cannot continue to increase spending by, or in excess of, the growth in the economy or we will never get to a balanced budget. •Secondly, the deal included $11 billion in one-time new spending. •Third, it has at least 8000 earmarks in it for nearly $20 billion. Much of this… Read More

Today,as reported in the Sacramento Bee (here and here), the Sacramento City Council voted to moveahead with a threatened eminent domain proceeding to be commenced on property downtown, just 2 blocks from where the Legislature tramples the rights of the rest of California, the State Capitol.

Under previous eminent domain threatby the city, Mr Moe Mohanna had agreed to swap land and buildingswith adjacent lands that the city had bought up and allow the city redevelopment gang to do their thing. But the properties the city wanted to deal him caught fire, were ordered demolished, and of course suffered a great loss of value due to its "material adverse change" thereby rejecting the swap without some greater consideration. The city claims to not have money lying around [good, it should be going to pay for cops, fire fighters and fixing streets] to sweeten the threat/deal for Mr Mohanna.

… Read More

AB 1X [technically known as AB 1 X1] passes right on time to the floor for our scheduled 1PM session on a party line vote from Assembly Appropriations Committee, all Reps voting "no" on this 239 page document, still warm off the press.… Read More

Last week was a bit crazy, so I am playing a little bit of catch up.

We linked to a story by Nancy Vogel in the Los Angeles Times where, after much controversy swirled about Fabian Nunez buying thousands of dollars in french wines on a European junket, it turns out that Nunez foisted the wine on the California Democratic Party.

Well, last Friday the fine folks at the No on 93 campaign gave a gift to Speaker Nunez. They had delivered to his office a bottle of Charles Shaw Chardonnay. Those in the know refer to Shaw as "Two Buck Chuck" because that’s all it costs. It’s thrifty, its American, and I am sure it ended up in the Speaker’s sterling silver trash can.

The No on 93 folks say that, "Admittedly, the bottle of Two Buck Chuck was purchased at a Trader… Read More

With looming tax increasesneeded to fund it, AB 1X passes off the Assembly floor, on a party line vote of 46-31. The voters will likely be asked to pass a package of tax increases in November ’08 that would raise taxes on hospitals, employers payroll from 1-6.5%, and tobacco,to fund the projected, at least in Year 1, $14,000,000,000 health program, toprovide benefits for users at up to 400% of the federal poverty level.

With the Democrat drumbeat for tax increases to fix the current $14,000,000,000 budget messstarting up, I wonder what Dem tax increase ideas will be left over for eitherbudget or health. Tobacco tax was bumped up a few years ago, the sales tax also, 9% in some lucky jurisdictions. The richest Californians[or those at the 700% of poverty level I like to say] were hit by Prop 63 a couple years ago.It will be much more difficult to raid counties or the transportation funds now, with propositions rightly passed by voters to safeguard these funds from a hungry state budget.

The taxes on these 3 items are seen inDem floor arguments as a "self-funding" mechanism for… Read More

This just in from Joel Fox, President of the Small Business Action Committee. We wanted to get it posted right away. Attention Assembly Democrats: This plan HURTS the economy! We urge a NO vote…

From Joel Fox…

Small and medium sized businesses will ultimately carry more than a “fair share” of funding for the health care plan now being constructed in Sacramento. The plan requires businesses to fund health care for employees according to a formula based on wages and social security payments. Other funding mechanisms are a tax on hospitals, mandated individual insurance and a possible doubling or even tripling of the cigarette tax. Under the business revenue formula, businesses up to $250,000 in payroll must cover their employees’ healthcare or pay 1% of payroll into a state run pool for healthcare. Those employers with payrolls of $250,000 to $1 million will pay 4%. From $1 million to $15-million the tax is 6%. Over $15-million the levy is 6.5%. However, there is no inflation escalator clause being discussed for the funding measure. If that doesn’t change, then as time goes on many small and medium sized… Read More

Some things are so absurd they make you LOL (laugh out loud).

Proponents of the massive healthcare entitlement and tax increase package are calling it the “Health Care Security and Cost Reduction Act.”

Nothing could be further from the truth. In fact, it’s quite the opposite. It would be more aptly entitled the “Health Care Insecurity and Cost Increase Act.”

Government intervention will ultimately reduce access to and quality of health care. And how you can call a multi-billion dollar tax increase a “cost reduction” is beyond me…

I guess this is what happens when Adam Mendelsohn and Steve Maviglio are double-spinning together.… Read More

Before I ran for California state assembly in 2006, I was what you might call a “political fan.” I wore my team’s colors, cheered in the stands, and never missed a game/debate on TV. I knew the stats on all my team’s players, and the stats of the players on the opposing team. Every Election Day was a Superbowl.

When I ran for office, I got to get down on the field a little bit. I got to know some of the players up close, heard them talking away from the press and the fans, and in some cases, became disillusioned and disappointed by what I saw behind the scenes.

Since that experience, it’s been much more difficult for me to feel that same heady rush when I see something good happen in politics, because I am suspicious that there is some selfish motivation behind what I see. However, today, I let myself be thoroughly inspired again. I let myself believe that our country still has people in politics that care more about our nation than themselves. I let myself see real leadership in politics,… Read More