Assembly Republicans have one representative* on the Joint Budget Committee who has consistently opposed tax increases as part of solving the state’s fiscal crisis — Assemblyman Jim Nielsen. Nielsen serves as the Vice Chairman of the Assembly’s Appropriations and Budget Committees, and he has shared with us some thoughts about what has been taking place in that key committee.

Less than a month ago, Californians went to the polls and soundly rejected tax increases, gimmicks and massive borrowing to solve California’s budget crisis. In spite of that resounding message to the Legislature, the majority has turned a deaf ear to voters and repeated the tired mantra of more taxes and increased spending.… Read More

For years, Rep. Loretta Sanchez has fooled too many people into thinking she’s some kind of conservative "Blue Dog" Democrat, even as she amasses a reliably left-wing voting record.

Sanchez punctured that myth yet again today, casting the deciding vote to cut off funding for Guantanamo and going along with the new, dainty, squeamish sensibility of the Age of Obama that will somehow win the War of Terror (that is, if we still called it that).

But Sanchez first voted against cutting off funding. Then the hammer of House Speaker Nancy Pelosi came down hard of Loretta, who 10 minutes later changed her vote.

Spineless, on top of being plain wrong. What a combo.

Plus, Loretta hands yet another issue to GOP Assemblyman Van Tran, prepping a run to take out Loretta in 2010.

You can read more about it on RedCounty.com.… Read More

Today on the Assembly floor, Democrats tried to push through some legislation that would have authorized the State Controller John Chiang to, in essence, issue junk bonds for California — where we would borrow on the short-term at huge interest rates. Governor Schwarzenegger has said that he opposes this kind of borrowing, which is costly and does not solve our state’s problems.

Assemblyman Pedro Nava (who aspires to be California’s next Attorney General) and his Democrat colleagues apparently think this kind of borrowing is a good idea — not a surprise, as they will do anything to avoid telling union bosses that real cuts are coming.

Assemblywoman Diane Harkey, we was tapped recently by Assembly Republican Leader Sam Blakeslee as the Republican Lead for Solvency Strategies, took to her microphone in the Assembly Chambers to make the case for why this kind of borrowing is bad, and why Nava’s bill should be rejected.

The bill required a two-thirds vote to pass. Did Harkey prevail on enough of her colleagues to kill the bill? You’ll have to watch this video to find out… … Read More

FR friend Carla Marinucci, a veteran political reporter over at the San Francisco Chronicle, is apparently so bored at the office that she is looking for something, anything to write about.

Is there any FlashReport reader out there that doesn’t know this startling piece of California political intelligence — Jerry Brown is running for Governor?

I didn’t think so.

Carla, though, is hyper-obsessing on looking for clues about whether he is running. You can see two posts on this here and here. As we said above, either Carla is that bored — or perhaps there is an ulterior motive? Our current theory is that she is so upset about the recent retirement of her colleague and friend John Wildermuth from the Chronicle that she is not thinking straight.

Anyways, you can always see if he is running by checking the Los Angeles Times.… Read More

WALTERS IS BLOGGING THE BUDGET CONFERENCE State Senator Mimi Walters, one of three Republicans on the Budget Conference Committee who opposed the ill-fated big taxes/big budget/open primary deal last February, has set up a blog (www.waltersreport.com) to keep interested parties up to speed on what is going on in that key committee…

Senator Walters had this to say to FR:

There are many negative effects throughout both the private and public sectors that have resulted from the plummet of stock values on Wall Street. In the public sector, throughout the country, public pension funds were heavily invested in the market — and the results have been a plummeting of the value of these funds. The problem, of course, is that while nationally there has been a massive "evaporation of value" — the liabilities on these funds remain — with public employees expecting their defined benefit pensions to be fully funded and paid on promptly.

Here in California, the California Public Employees’ Retirement System (which is the fund for most state and local government employees and pensioners) has seen the value of its holdings fall by literally tens of billions of dollars. According to the Los Angeles Times, it’s holdings were around $240 billion last July — but have now (with the downturn and then a slight upturn in the market) down around 23% — a massive drop. The Times goes on to say that in order to make sure… Read More

There are many negative effects throughout both the private and public sectors that have resulted from the plummet of stock values on Wall Street. In the public sector, throughout the country, public pension funds were heavily invested in the market — and the results have been a plummeting of the value of these funds. The problem, of course, is that while nationally there has been a massive "evaporation of value" — the liabilities on these funds remain — with public employees expecting their defined benefit pensions to be fully funded and paid on promptly.

Here in California, the California Public Employees’ Retirement System (which is the fund for most state and local government employees and pensioners) has seen the value of its holdings fall by literally tens of billions of dollars. According to the Los Angeles Times, it’s holdings were around $240 billion last July — but have now (with the downturn and then a slight upturn in the market) down around 23% — a massive drop. The Times goes on to say that in order to make sure… Read More

As foretold the South Pasadena Unified School District’s parcel tax passed. It was a little closer than I thought. The margin was 67.26%. It takes a 2/3rds vote to pass parcel taxes. This was the first of four tax elections in school districts in Los Angeles County. Voters seem have very few problem passing these taxes.

Local control seems to be the key for many of these communities. They feel they get their monies worth and have a say in how it is spent. How many can say that about Sacramento?… Read More