The replacement of Dave Cogdill by Dennis Hollingsworth bodes well for California Taxpayers. Here is the question. Now that Cogdill is no longer the leader will he feel comfortable enough to vote the way he knows is right, as opposed to the way he has been convinced is "responsible."

Every Republican knows that the Democrats created this budget crisis by spending like drunken sailors on leave (with apologies to those sailors, since they are at least spending their own money). They then cry about the bankruptcy they have created, and then whine when Republicans won’t raise taxes to cover their spendthrift ways. Unfortunately, in the past, the general Republican response has been to "be responsible" and bail the Democrats out. Democrats are the bad teenagers, enabled by years of Republican indulgence, who have been arrested for breaking the laws of economics, and are asking Republicans to hire the lawyer and post the bail for their irresponsible behavior in the past. Too often, Republicans have indulged this bad behavior because they "cannot let the people" suffer.

First, the people won’t suffer. Some people… Read More

Readers of today’s Flash Report main page probably noticed some articles about the Assembly Judiciary Committee passing an anti-Proposition 8 resolution yesterday, HR 5. This news was probably lost in the intense focus on budget debates, but taxpayers should be outraged about this for two reasons.

First, why on earth is the legislature spending taxpayer dollars to hear a resolution (non-binding pontificating) on an issue that voters decided twice (at great expense to the state already)? Maybe it had something to do with that fact that anti-Proposition 8 organization Equality California had been planning a lobby day for their supporters for months and Democrat leadership didn’t want to disappoint them. (If only conservative organizations could coordinate with the legislature on the timing of our committee hearings!)

Packing committee room 4202 with their supporters, including the ubiquitous attorney Gloria Allred, the Assembly held an… Read More

We have confirmed that after a lengthy caucus meeting, there is a new Senate Republican Leader — Dennis Hollingsworth!

This decision was made in the midst of tense negotiations over a state budget deal.

While we don’t go into the internal politics of caucuses, it is fair to say that it was unusual that the former leader, Dave Cogdill, was supporting a budget plan that was not supported by a majority of his colleagues.

Congratulations Senate Leader Hollingsworth!!… Read More

Senate Republican Leader Dave Cogdill, of Modesto, today issued the following statement: My primary goal in leading this Caucus has always been to maintain unity within our dynamic membership. I knew this would be a daunting task with the state’s precarious fiscal situation, but it was a challenge I was honored to take. While there are many things to dislike in this budget, I am proud it contains the vital reforms our Caucus has been pushing for – fixing our broken budget system, making government more efficient, giving flexibility to schools to direct more money to the classroom and creating more jobs in our state. It is now painfully apparent that this package will not achieve the votes needed to pass the Legislature.… Read More

Diane Harkey’s campaignmay have been illegallybankrolled to the tune of nearly $1 million taken out of a busted real estate deal, according to an article on the cover of the Business Section of the Los Angeles Times today, a KNBC televised report last night, and a federal racketeering case filed by investors against Dan Harkey in Riverside county. Readers can access this information at www.dianeharkeywatch.com..

Yes, I am a critic of Assemblywoman Harkey (but I did not oppose her in the recent general election and turned down offers to help other non-Republican candidates in her race). I’ve decided to write this blog because I note the information is not covered elesewhere in FlashReport today. We did not see eye-to-eye while we were both on the Dana Point City Council. But I supported her failed race for State Senate wholeheartedly, vouched for her endorsement with certain anti-tax organizations, and even contributed to her campaign and attended an event with Chuck DeVore. Chuck knows the whole story. After telling me she would stay out of my own… Read More

Republican Insurance Commissioner and Gubernatorial candidate Steve Poizner sat down with reporters with the Sacramento Bee this morning. He made a common sense suggestion on how to keep the state from going insolvent without ANY tax increases. Rather than pursuing an 18 month solution, perhaps we should look more short term, so that we don’t have to raise taxes? A novel thought.… Read More

Kudos to CalTax for picking up on the Board’s reluctance to give up extra resources with regard to the new Flavored Malt Beverage regulation (link).

When we adopted the regulation last year, over my objections, the Board told the Department of Finance to expect $38 million in revenue for the fiscal year. As I warned repeatedly, it turns out the regulation is unenforceable and easily dodged.

The companies this regulation sought to punish simply changed the formula in their products so they no longer contain distilled alcohol. As a result, year-to-date, the state has collected only $6,000 of revenue. (Yes, that means our expert revenue estimates were off by 6,333%) To gear up to collect this tax we asked the Department of Finance for more money. Finance now understands how ridiculous this tax is and they want the BoE to completely withdraw the request. I agree with Finance. With a hemorrhaging state budget this should be a very simple decision to save the state money.

The BoE is asking for $1,328,000 (General Fund) in Fiscal Year 2009-10. Now that we… Read More

Today GOP Gubernatorial aspirant Meg Whitman gave the first of three major speeches she intends to make this week. With all of the politics taking place in Sacramento right now, I don’t really have much time to cover and analyze her remarks — right now. We’ll be able to pivot back to 2010 politics soon enough (Whitman conducted a couple of interviews with newspapers that are certainly worthy of commentary).

Whitman spoke today in the Silicon Valley (which she would know well) at the Tech Museum of Innovation in San Jose. I have attached below a link to her speech. If you’re following this primary, you should read it — as it is Whitman’s first major address as a candidate.

Ironically, I was last at the Tech Museum a couple of years back, to attend the swearing-in ceremony of newly elected Insurance Commissioner Steve Poizner. How poetic. (*Note,… Read More