OK, it’s getting hard to format what is nowa back-and-forth between Pacific Research Institute Economist Dr. Benjamin Zycher and Mike Genest, the California Director of Finance. In a nutshell, they are going back and forth over the language of the potential spending cap that is in the Big-5 Big-Tax deal. So, below you have in RED summaries of Zycher’s observations as penned by Genest (you can see all of Zycher’s original observations here). Then in GREEN are Genest’s responses. Now, in BLUE are Zycher’s responses to Genest.

I HAVE FAITH IN ENTERPRISE LEGISLATIVE STAFF MEMBERS TO MAKE SURE THIS IMPORTANT EXCHANGE GETS TO THEIR BOSSES DOWN IN CAUCUS… :-)

Oh yes – this is a great opportunity to make a further editorial comment about how this process is being rushed way too quickly. Heck, we can’t even get policy experts to agree on what should be very objective issues. Isn’t it time give this a few more days and let all of these questions be answered in a less harried environment?… Read More

We’ve all seen those "what they’re saying" PR missives organizations send: round-ups of media quotes praising the pet project or cause of the transmitting organization.

But it’s downright depressing to see one from the Senate Republican Caucus promoting tax increases!

It was surreal to open my "Republican Budget Solutions" e-mail the Senate GOP Caucus this morning, and find it chockful of quotes from liberal editorial pages, heaping praise upon the massive tax increase package being touted as a Budget solution."

We have entered through-the-looking glass territory. opposing higher taxes and supporting tax reduction is one of the few issues on which California Republican retain credibility with the voters — and it’s absolutely insane to believe it is worth pawning our party’s soul in exchange for a budget deal that is certain to fail as a solution to the budget deficit.

Sen. Dave Cogdill is dead wrong to claim this is the "best deal" we can get. Enabling the state to gobble an even greater portion of the people’s wealth while simultaeously forsaking the Republican Party… Read More

Tomorrow is the big day. Instead of spending Valentine’s Day with my wife, I will have the privilege of voting on a state budget.

As of this posting, my offices have received 246 phone, faxes or emails from actual constituents opposing the proposed tax increases and 20 phone calls supporting them.

The media talks about the pressure on legislators. It is always easy when you are on the same side as the constituents.

See everybody tomorrow.… Read More

Apologists for the massive $14 billion tax increase being advanced as a solution to the chronic state deficit like to point to 1991 as validation of this strategy.

Then, as now, California was in the depths of recession. Then, as now, the confronted a historically huge budget deficit — which at the time was $14 billion.

At the end of the day, Gov. Pete Wilson struck a deal with the Democratic majority to erase the deficit with $7 billion in tax hikes and $7 billion spending cuts, and succeeding in toppling Assembly GOP Leader Ross Johnson and pealing off the necessary 7 Republicans to vote for the deal.

Conventional wisdom, viewing that deal through the gauzy mists of time, hails it as a grand compromise of statesmanlike proportion that restored health to the budget, and as a model that we should emulate today.

Too bad it’s a myth, because inflicting a massive tax increase on a weak economy had the opposite effect, and the next year the state was faced with a $3 billion deficit.

Former Sen. Ray Haynes laid out the truth of what transpired in this 2005… Read More

From John Fund of the Wall Street Journal:

I feel like I am watching a split screen – and both are depicting horror movies in public policy. As I write, one screen shows our lawmakers in Congress rushing a gigantic spending bill through so quickly that Democratic Senator Frank Lautenberg admitted that none of his colleagues would be able to read a final version before they vote on it. Lobbyists with goodies in the bill had copies of the bill yesterday, even before lawmakers did. The second screen I am watching is one focused on my home state of California. There “Five Men In A Room,” the state’s… Read More

Friday at noon, San Bernardino County Assessor Bill Postmus officially resigned and vacated his elected office.

It is a significant milestone, if not likely the end of a once-promising political career.

Some of you may have been curious as to why I have been silent on the ongoing controversies involving Bill as well as his indicted former top assistant, Adam Aleman. This is only fair considering the fact that Bill and I worked together for many years before he moved on to the Assessor’s Office.

Frankly, I should let you know that I haven’t talked to my old friend for quite some time, for a variety of good reasons. One of these reasons was the fact that the San Bernardino County Board of Supervisors is the only board in the state with the authority to remove a county elected official. It involves a quasi-judicial process, which required me to maintain a significant degree of impartiality.

I have no idea where the ongoing investigations involving Mr. Postmus will now lead. It is, however, a shame that the good things Bill accomplished in office will be necessarily overshadowed for some time by his actual, alleged and perceived… Read More

Senator Dutton just released the following statement on why he will not be voting for the budget proposal:

Senator Dutton Voting No

By Sen. Bob Dutton

As California suffers through the worst economic crisis since the Great Depression of the 1930s, I think often of that dedicated employee who just found out he or she has just lost their job and is going home to tell their family.

I can’t get the image out of my head of that person walking in the front door and deciding exactly how to break the news to their spouse and kids – how to tell them that the life they enjoy is about to radically change.

The change they are about to experience isn’t because of what’s taking place with the economy, but rather what measures the state took to balance its budget after years of mismanagement.

That’s the image I will carry when I go to the floor of the Senate to cast my vote against a budget that will raise taxes on California residents by a stunning $14.5 billion.

This proposal includes a 1 percent increase in the state’s sales tax rate, which is already the highest in the nation; many counties will… Read More

By a vote of 61-5:

The economic state of our nation and California is being used by the Democrats in turning this state and country into a socialist paradise. Although out numbered greatly, most Republican legislators have held fast to Conservative Republican Economic principals. Those who have stuck to their guns while under intense pressure form many sides should be commended and rewarded in their future political endeavors. By the same token there are a few Republicans that are sacrificing their principals for immediate personal political gains. They should be considered traitors of the party, their names published frequently, and opposed vigorously in any future political ambitions. It is time that true Republicans stand up openly and loudly for our principals without fear or compromise.

RPLAC officially adopts this resolution commending all Republican legislators holding the line on new or more taxes and oppose big government and that RPLAC name those Republican Legislators who go against Republican values and ideals and proclaim our opposition to their quest for further political positions.… Read More