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

We salute the thirteen members of the State Senate Republican Caucus who have held the line against a plan that would saddle as much as $70 billion of tax increases over the next five years on California taxpayers.

THANK YOU SENATORS AANESTAD, BENOIT, COX, DENHAM, MALDONADO, HARMAN, DUTTON, HOLLINGSWORTH, HUFF, RUNNER, STRICKLAND, WALTERS AND WYLAND.

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We have duly elected members of the Legislature under the Capitol Dome being treated like children. Let’s just assume that everyone is an adult and they all of them can generally take care of themselves. Some of you are laughing now but we are talking about grown men and women.

Recently the doors have been locked and they have been prevented from leaving.

I want to know what authority the Assembly Speaker and President Pro Tem have to do this. Under Article 4 Section 7 of the California Constitution:

SEC. 7. (a) Each house shall choose its officers and adopt rules for its proceedings. A majority of the membership constitutes a quorum, but a smaller number may recess from day to day and compel the attendance of absent members.

So who is absent? Was the leadership really compelling attendance be absent members? No one was absent. They didn’t miss anything.

If this is the only justification provided by the leadership for their actions of locking the doors… Read More

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

Purified by Fire

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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