For those state vendors who have been given warrants rather than checks from the state, the Board of Equalization will vote at our July 21st meeting whether to accept the warrants from these vendors for their tax obligation on sales to the state. I have received a legal opinion that it is permissible for the Board to do so. However, that opinion states that if the warrant is greater than the tax liability, then the Board cannot issue refunds until the warrant has reached its maturity date.

It is important for the BOE to accept these registered warrants as a sign of good faith to the people of California, and those who receive these IOUs from the Controller that they really do have value.… Read More

California is officially insolvent and has begun paying its bills with IOUs. While certain sacred cows are protected from getting IOU’s, taxpayers are first in line to get hosed.

Assemblyman Joel Anderson has authored critical legislation, Assembly Bill 1506, to provide relief to taxpayers and businesses who will be receiving IOUs from the state.

So far, $50 million worth of IOUs are on their way to taxpayers who are owed a refund. Next in line are vendors, private businesses that provide services to the state on a contract basis. Assembly Bill 1506 allows IOUs to be used as payment for any obligations to the state.

For example, if you are a business with state contracts and you receive an IOU for $50,000, you could use that IOU as payment for your payroll taxes, DMV fees or any other obligation to the state. Without AB 1506, many businesses will be forced to close their doors and layoff employees. This bill is about protecting jobs and the economy from onerous, irresponsible government.… Read More

We’ve gotten a lot of "tips" today that there are leadership runs at least being talked about against both Senate President Darrell Steinberg and Assembly Speaker Karen Bass. I don’t follow the internal politics that take place on the left side of the aisle too closely. There are those that do, but will they blog about it somewhere? Who knows.… Read More

Check out this video of SEIU "Budget Bullies" Storming the Capitol Building today.… Read More

Well, I guess I played a role in an Orange County politician resigning from office today. Another dubious distinction for my resume.

Readers know I have been reporting here about the apparent jihadthat is ongoing by the Secretary of State, Debra Bowen, and the Los Angeles District Attorney, to nail people involved in politics who are registered to vote at one address, but apparently live most of the time at another. Mark Jacoby, a petition gatherer, was charged with a felony along these lines late last year and pled to a misdemeanor a couple weeks ago. I was surprised by the plea, I thought he might have gotten off if he fought the charges. But after his plea, the same authorities nailed liberal Latino activist Nativo Lopez with the same type of wrap, but with FOUR felony counts. He won’t enter a plea until next week, and is out on $55,000 bail. Ouch!

So on the 28th, when I read Teri Sforza’s story appearing in the Orange County Register on the 26th, (I was a little behind on my reading) about Metropolitan Water District of Southern California board member Ergun Bakall, who repsents… Read More

June’s local school tax elections went 3 for 4. Yesterday La Canada Unifiedapproved a parcel tax with over 70% of the Vote. They join Palos Verdes Peninsula and South Pasadena Unifiedin passing parcel taxes. Yours truly went 4 for 4 when Rowland Unified’s attempt to pass a parcel tax got a little over 51% of the vote. Parcel taxes need a two-thirds vote to pass.

It seems that these votes were referendums on their local school districts. Most local taxes are viewed through that lens. Each of these communities had rejected 1A on May 19th. That was a referendum on the state.… Read More

I have to admit that I was pretty impressed when I got off of the phone with Insurance Commissioner Steve Poizner last Sunday night. When my phone rang, and Poizner was on the other end, I expected to have a chat about his campaign for the GOP Gubernatorial nomination. But actually, he was calling me, in his capacity as Insurance Commissioner, to let me know about a bold new policy that he would be announcing on Monday, launching a funding probe from the Department of Insurance targeting investments made by insurance companies in Iran.

"Jon, using my authority as Insurance Commissioner, I will be announcing tomorrow a terror funding probe targeting direct and indirect investments by insurers in Iran."

As I am sure that many FR… Read More

That "mega" number (my eyes glaze over) is now the size of the projected shortfall in the state’s 2009-10 fiscal year budget.

It’s time for the Democrats in the State Legislature to step up and deliver a plan to deal with this shortfall. Every minute, hour and day that goes by without a comprehensive solution, the more difficult it will be to resolve this shortfall.

Hopeful the resolve of Republicans to not allow a piecemeal approach to solving this shortfall is very, very clear to Capitol Democrats. Republicans are committed and united to protecting taxpaying Californians from being hit with higher taxes to resolve this problem. Republicans understand that a piece-meal approach to trying to resolve this shortfall, passing cuts a few billion at a time will eventually lead to a time, mid-fiscal year, when Democrats can simply stop agreeing to cuts at all — leaving our state more vulnerable to a play to raise taxes. Especially since the ability to implement cuts becomes more dubious once you are well into the fiscal year. Funny how that works — cuts take considerable time to implement, while tax increases seem to go into… Read More