So apparently tomorrow the State Assembly is going to put the Governor’s proposed budget up for a vote tomorrow.

After the passage of Proposition 25 last November, which allows for the adoption of a budget on a majority vote, this should be a non-event. While not one Republican will go up on Brown’s budget, not one Republican vote is needed… EXCEPT…

Oh yes, Brown’s budget has not been revised to accept the political reality, which is that there are no Republican votes to place the largest tax increase in the history of any state on the ballot this June. And Brown has not responded by putting forward the additional cuts necessary to present a real, balanced budget to the legislature.

So what we have tomorrow is a game of political theater. Which makes you wonder what the liberal Democrats will do with their votes. These committed leftists don’t support any cuts in California’s generous social safety-net spending. So will they put up votes for tomorrow’s cuts, knowing that they are just part… Read More

Senate Republican Leader Bob Dutton responded to Senate President pro Tempore Darrell Steinberg’s representation that the budget being voted on Wednesday "responsibly and honestly promises to put California’s fiscal crisis behind us once and for all."

"The simple truth is, the budget the Senate Democrats are putting up for a vote on Wednesday is not a balanced plan," said Dutton. "It is just another short-sighted tax-and-spend scheme that relies on a $50 billion bailout from California taxpayers. It does nothing to fix the state’s budget crisis or put Californians back to work. The Democrats say, "Let the people vote," but what the Democrats really want is for the people to pay for government as usual."

The Democrats’ budget proposal is not half cuts/half taxes:

For those who read Jill’s post below this one, please be advised that Ron Nehring’s proposal has now been altered to provide that any participant in a caucus who is away, on active duty, may have an alternative represent them. So while there are differences between the plan, both plans address the concern about active duty military personnel.

Clearly some electioneering was going on, as no attempt was made to get Nehring to take care of this concern before "going public" — this was just an effort to attack the Nehring plan. Nevertheless — the issue has now been addressed and is moot.… Read More

Today’s L.A. Times headlines "Investigation details deals at CalPERS." March 15, 2011 in a lengthily account by reporters Marc Lifsher and Stuart Pfeifer had this to say.

" While at CalPERS, Buenrosto [ CEO] repeated " inserted himself into the investment process in a manner inconsistent wit prior practice at CalPERS, pressing its investment staff to pursue particular investments without evident regard for their financial merits."

It is said Buenrostro intervened with staff on behalf of Aurora Capital Group of Los Angeles [ Gerald Parksy] to obtain investment money. Buenrostro told subordinates that Aurora was politically powerful, and that Aurora principal Gerald Parsky served on a state commission [appointed by Gov Schwartznegger] dealing with public employee benefits, the report said."

Aurora was a Villalbos [principal figure of the probe], and Buenrostro told the board, and those complaints "become a basis for the board’s efforts to replace him as CEO," the report said."

CalPERS is the nation’s largest public pension fund, with @228… Read More

The Sacramento Bee’s Capitol Alert Blog is reporting this morning that Assembly Republican Leader Connie Conway, who apparently spoke with some of the "Rogue 5" GOP State Senators, that their negotiations with Governor Brown craft a budget deal have broken off.

Specifically (excerpted from Capitol Alert):

Treasury Bonds: I learned something last week. I learned that fully 40% of the over $9 trillion in Treasury debt currently outstanding to the public has a maturity of 3 years or less. Put another way, it means that we are rapidly approaching $4 trillion in U.S. debt that matures by 2014 or sooner. As I write this, the yield (interest rate paid) on a 2-year Treasury note is 0.645% or about 2/3 of one percent. The yield, at the same time, on a 10 year Treasury note is 3.4%, and on a 30 year is 4.55%. In bond parlance, this is called a "steep yield curve" where interest rates get much higher as you go farther out in time.

It’s pretty clear why the Treasury is doing this. By issuing mostly short-term notes, the Treasury is paying less interest, thereby keeping interest costs and, consequently, the deficit down. In addition, the Federal Reserve is in the middle of its "quantitative easing #2" (QE2) under which it is buying $600 billion of our own Treasury debt over about a 6 month period. The Fed is not buying the short-term notes, but is buying 10 year maturities and longer in order to hold those rates down.… Read More

From today’s Wall Street Journal Political Diary E-mail… … Read More

George Skelton’s column in the LAT tomorrow is the latest in pricelesslypathetic analysis of the GOP’s position in the current budget talks. Is it just senility on his part? Selective memory? I mean, what could it possibly be? Let me remind everyone: the voters in California have spoken. They have rejected and repudiated Republican ideas as thoroughly as they can be rejected. November, 2010 was a slaughter. Georgie – Californians don’t want our freaking input, okay? Do I need to send you the numbers again?

The only reason the MSM wants Republicans at the table at all is to share the blame for the inevitable non solution that will come out of these latest budget talks, and it appears at least five of our knuckleheads are at least considering being useful idiots for the California welfare State, again. The GOP is only wanted to provide votes for high taxes. That is it.

Hey people! How did we get here in the first… Read More