As a Republican, I guess you have to use some minor amount of political sophistication to figure out that if the GOP is responsible for passing the largest single tax increase in the history of any state ever, that the cynism of Republican voters with their own party will only increase (check out how many registered Republicans opted not to vote last November).

That said, it is pretty simple to understand how deadly a “Washington State” style open primary system would be to, frankly, both major political parties. First and foremost, the system ends voter registration by political party all together. Secondly, under that system, a party isn't even assured a candidate on the general election ballot.

For Dems, the taxes are a plus, the open primary, a minus. For GOPers — it's ALL Bad.

Abel Maldonado's request to place an effective termination of the political party system on the ballot should be summarily rejected. SHAME on him for advocating it.… Read More

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

There are a lot of problems with the Big 5/Big Taxes plan — some of which are a function of a broken process. The super secret-squirrel negotiations result in a scrambling of speedy analysis, trying to figure out what is really in the package.

State Senator Bob Dutton, who ironically is the Vice Chairman of the Senate Budget Committee, like everyone else has been scrambling to look into the details of the plan, having had it sprung on him just like everyone else.

One interesting analysis that his staff did was they looked over the stated $15.1 billion in cuts in the plan. Guess what they found? Yep, State Capitol "double speak" is alive and well.

Attached is a document (excel format) that details the sad truth, which is that if you apply the traditional "normal" definition of cuts (you know, were we actually reduce the amount of money on a program, as opposed to "cutting an anticipated increase" — or how about calling cuts items that have to be paid back?

Anyways, by the take you take out the "cuts that aren’t cuts" — the real cuts in this package are only $3.1 billion —… 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