When I wrote about AB 2451 about a week ago, it had just passed out of the State Assembly on a lopsided bipartisan vote. This legislation, by Assembly Speaker John Perez, could only be characterized as a “give away” of public funds to satisfy the state’s greedy public safety employee unions. As we sit here in the midst of a fiscal crisis, with several cities already in the midst of bankruptcy and a whole host of others in very poor fiscal condition, Perez’s bill represents a significant increase in survivor benefits after the death of former public safety workers. Since I have already extensively written on this legislation here, and since we already featured a column from our friend, and C.P.A. Bruce Bialosky exposing this terrible legislation, I will pick up where I left off.

This legislation seeks to enhance a benefit that public safety retirees should not have in the first place. No, I’m not saying that if you die as a… Read More

The latest economic confidence figures show an American public with a negative view of the economy that remains stable. Unless there is a sudden and unexpected stream of good economic news over the next 60 days, the economy will continue to be a major drag on President Obama’s re-election prospects.

Gallup reported the latest data on August 21.

While no President in modern times has been re-elected with an unemployment rate over 7.2%, the race remains extremely tight despite the low marks Americans give to the economy. The Gallup five day rolling average culminating the day before the onset of the Republican National Convention shows Barack Obama and Mitt Romney tied at 46%.

Historically, conventions tend to produce a 5-point bounce for their Presidential nominee. The Democratic convention will take place just a few days after the GOP meets, meaning any bounce is likely to be short lived.

We should have a clear idea of the post-convention… Read More

Republican National Committeeman from California, is a well known fixture here at the FlashReport. He’s already in Tampa in advance of next week’s Republican National Convention, and will be “live-blogging” from on the ground… Here’s his third update from Florida.

A confident Romney campaign managed to engineer a breathtaking coup at the Republican National Committee.

As a result of a lopsided vote, for the first time in memory, the RNC Committee itself will now be able to change the party’s rules. This is a marked change from the current system where the RNC rules could only be modified… Read More

Contrary to what you may have heard, the sky is not falling in California—at least not as it pertains to sales tax revenue. I’m pleased to report that sales and use tax revenues are doing just fine.

On August 13, the State Controller reported that sales and use tax general fund revenues for the month of July were down $295 million, 33.5% below expectations.

However, BOE actually received $1.527 billion in July, $17 million more than the Department of Finance budget projection.

The competing revenue numbers are the result of payment timing combined with differing accounting methods. As required by statute, the Controller looks at “money in the bank,” which does not include pending deposits. BOE numbers, as well as those used for state budget estimates, reflect “money in the door,” which includes all payments—including those received but not yet deposited.

BOE received more than $900 million in sales tax revenue in the final days of July. These dollars were not included in the Controller’s report because they had not yet been deposited into state coffers.

Retail sales tax… Read More

I am not one to say I told you so, so I won’t say it. However, late yesterday, Darrell Steinberg killed CEQA reform, after John Perez promised Brian Nestande that Nestande’s vote for a tax increase would result in CEQA reform and a better business environment for California. Perez lied, Nestande’s political career died.

I was hoping I was wrong, but I wasn’t. I don’t blame Nestande, this is an old trick of the Democrats, done time after time.

I had an advantage when I first joined the Legislature. I was a part of the first class of Legislators elected under term limits, which meant there were a number of Legislators who had been there for years. Legislators like Pat Nolan, Ross Johnson, Frank Hill, Bill Leonard, John Lewis, Bill Jones, Trice Harvey, Dick Mountjoy, and many others would take time to talk to us new guys about how the Legislature “really worked.” These weren’t policy discussions, they were discussions about rules and tactics, and how we could be misled. I used to hang on every word, to learn about what happened. One fun discussion, had with Charles Calderon and Steve Peace sometimes in… Read More

The Romney team at the convention in Tampa pulled a surprise move that will make RNC meetings under President Romney much more interesting.

With the control of the vast majority of the convention delegates and therefore the rules committee in Tampa, the Romney team has broad powers to reshape the rules of the national Republican Party. Historically the convention, and only the convention, adopts the rules that govern the national Republican Party for the next four years.

Until now.

Under a rules change adopted today on a 63-38 vote, the convention’s Rules Committee adopted a change which will allow the 168-member RNC to alter party rules going forward.

Here’s what that means.

The RNC Chairman is technically elected by the 168 members of the RNC, but when we hold the White House, that’s an illusion. The practical reality is that President Romney will appoint the RNC Chairman and other RNC leaders. In effect, the RNC will become an extension of the White House political operation.

Under the new rules, the Romney White House will be in a position to use its considerable sway over the RNC to change almost any rule at an RNC… Read More

Republican National Committeeman from California, is a well known fixture here at the FlashReport. He’s already in Tampa in advance of next week’s Republican National Convention, and will be “live-blogging” from on the ground… Here’s his second update from Florida.

Before the Republican National Convention officially kicks off, the members of the Republican National Committee meet in advance, to address internal party issues, before tens of thousands of delegates, alternates and guests descend on Tampa.

Today’s general session featured 56 banners representing the 50 states as well as six for the U.S. Territories. The total membership of the RNC is some 168 members — the Party Chairman and a Committeeman and Committeewoman from each state. I am so proud to represent California Republicans… Read More

Fellow FlashReport contributor Jim Lacy, in blog post below this one, makes the case for why legislation that has suddenly “popped up” to change the way elections to take place so that election day no longer the cutoff for voters to have their ballots received by the County Registrar of Voters, but instead becomes the last day that an absentee postmarked. Jim is spot on.

But I feel compelled to augment Jim’s observations by addressing the “gaming of the system” by the majority party with regards to this bill. My first issue, which unfortunately is not an uncommon one, is that this bill is a classic case of the use of what is referred to as “gut and amend” where an unrelated bill that has already been vetting through policy committees and advanced through the normal process is stripped of its original language, only to have this new language inserted in its place. Using this process, transparency and outside involvement in the legislative process are thrown out the window. There is no notice of the… Read More