Well, here’s a bright spot in the phenomenally late, phenomenally messy 08-09 budget writing process: the Governor kept his word about taking whatever step necessary to compel Controller Chiang to implement his executive order. The Governor’s Department of Personnel Administration filed suit Monday afternoon in Sacramento Superior Court just a couple of hours after a wishy-washy, non-committal response out of Chiang’s office.

Let’s be clear: if Chiang were working as chief financial officer for any business, rather than for state government, he would have been fired long ago for even suggesting that we spend hundreds of millions of extra dollars on Wall Street for high-interest loans just so we don’t have to temporarily lay off 4 percent of our bloated workforce. He would have been fired long ago for failing to update his computer system so that it can easily comply with a 5-year-old court ruling.

The Governor did the right thing by suing to force him to comply with the state constitution, the state Supreme Court, common sense, and fiscal responsibility. We have a serious cash crisis coming – on that point, no one disagrees. And separate… Read More

The IRS doesn’t want charitable organizations to have links to political campaigns on their websites, and on July 28, the director of IRS Exempt Organization Examinations issued a ukase on "Political Campaign Activity on the Internet."

The IRS will now open examinations of charities that have a direct link to a political action committee or candidate website on the charity’s website. They will also open an examination if they find a charity has linked to an unrelated501(c)(4) advocacy organization or commerical sitethat itself links to a candidate or PAC site whereit isintended by the charity to indirectly link the viewer to the political site.

Cases involving "related" 501(c)(4) organizations are more complicated and the IRS is less likely to take action to indirect links to political sites by that route. However, a "fact and circumstance" is how many clicks it takes to get to the political site. If it is really easy, that is a problem.

I’m sure IRS agents love this duty, siting in front of a computer 8 hours a day and websurfing. Must be… Read More

It’s being reported that pressure is being applied to termed-out Republican legislators, trying to garner support to get them to either support an increase in taxes, or to vote to place a proposal that includes a tax increase on the November ballot.

We have blogged here before about how proud we are of our Republican legislators and their uniform opposition to increased taxes. Every termed-out Republican has actually signed a pledge from Americans for Tax Reform to oppose efforts to raise taxes.

That said, we are looking for statements from termed out Republicans re-iterating their pledge to oppose ANY efforts to raise taxes on Californians, period.

If you are terming out, and would like to send us a statement for FR readers, just e-mail it to me here, and we’ll get it up on the FR blog. Or if you don’t want to put out a statement, but do want to let FR readers know you aren’t budging, you can let us know that, too.

We will also start the process of reaching out to these folks directly, and we’ll report back on the progress.

As I said, I have no reason whatsover to… Read More

It’s being reported that pressure is being applied to termed-out Republican legislators, trying to garner support to get them to either support an increase in taxes, or to vote to place a proposal that includes a tax increase on the November ballot.

We have blogged here before about how proud we are of our Republican legislators and their uniform opposition to increased taxes. Every termed-out Republican has actually signed a pledge from Americans for Tax Reform to oppose efforts to raise taxes.

That said, we are looking for statements from termed out Republicans re-iterating their pledge to oppose ANY efforts to raise taxes on Californians, period.

If you are terming out, and would like to send us a statement for FR readers, just e-mail it to me here, and we’ll get it up on the FR blog. Or if you don’t want to put out a statement, but do want to let FR readers know you aren’t budging, you can let us know that, too.

We will also start the process of reaching out to these folks directly, and we’ll report back on the progress.

As I said, I have no reason whatsover to… Read More

My family just returned from an amazing two week trip to Italy, where we traveled to Rome, Venice and Florence. It was an amazing trip, the memories of which I will cherish forever.

I wanted to extend my sincere appreciation to the awesome team that we have here at the FlashReport. While I was away, the site continued to provide our daily news roundup, insiteful columns, and great commentaries and blogs from our contributors (I did manage a few blog posts from abroad myself!).

Thanks again to the team!… Read More

For many reasons, a race to the political middle has blurred the once-clear philosophical lines dividing the two major political parties. Today, the Wall Street Journal (subscription and / or registration required) does an exceptional job of erasing the muddled middle and aligning politicians with philosophy. The paper ran columns by Attorney General Brown and Newt Gingrich each outlining what could be done with $10 billion.

Brown showcases myriad government regulations and controls as well as grant programs that can come, he says, to achieve energy efficiency and other goals.

Gingrich, on the other hand, outlines seven separate goals to be set and a corresponding billion dollar (in some cases multi-billion dollar) prize(s) to incentivise private sector progress toward worthwhile goals.

California’s present fiscal reality shows the limits of excessive spending and pursuit of problems arguably addressed elsewhere. While the federal government is… Read More

No pressure here to raise taxes in this years budget.I amfirm on this point as is our caucus.

We seek a true spending limitation so we don’t keep doing this everytime the state economy and subsequently, tax revenues are down. The economy and most other things [global temperature]run in something called cycles. We cannot always count on high revenue to sustain year over year new spending. The rainy day fund, which should really be called a drought fund is an important tool to help in budget drought years. However, we won’t see many deposits into such a fund as rainy day/high revenueyears are less likely without a spending limitation on budget spending.

As it is, I don’t see howwe will see the type of excess revenue to sweep into the "drought fund" fora while. Not this year, not next, and probably not 3 years out. Which makes the chatter about a rainy day/drought fund as this years bigfix, bogus. It’s not a fix without a spending limit. It’s as simple as that.

If you want to prolonga stale economy, go ahead and raise taxes to… Read More

Assemblywoman Mimi Walters isn’t termed out, but she is leaving the Assembly at year’s end to go to the State Senate, but she send in this statement in response to this morning’s commentary… (Keep ’em coming!)…

“I will not vote for any budget bill or any other bill that raises taxes. The state’s budget deficit was caused by over-spending. Raising taxes and giving the Legislature more money to spend on new and bigger government programs does not solve the problem – it makes it worse. We need to pass a balanced budget using current resources and also pass a strong deficit prevention measure to constitutionally limit the growth in state government spending.”… Read More