Readers know I am not a big fan of most campaign finance laws, but the decision of Federal prosecutors to insist on a felony charge for alleged money-laundering by Los Angeles trial lawyer and Democrat activist Pierce O’Donnell is the right thing to do.

The Times reports today that O’Donnell faces money-laundering charges for reimbursing people for making contributions to John Edwards 2004 Presidential campaign. In my personal view, that in itself does not support a felony case against a first-timer, but there are least three other factors that I believe justify the federal grand jury indictment and a felony case against O’Donnell if he is found guilty:

1. This is not O’Donnell’s first brush with money-laundering charges. As the Times article indicates, O’Donnell took a misdemeanor plea for money-laundering in connection with former Los Angeles Mayor James Hahn’s first successful race for Mayor in 2001. That was a protracted procedure that started almost three years before the money-laundering activities alleged on behalf of Edwards. That is a "first… Read More

Jon asked me to comment on the debate over the "water" bond currently being proposed in the Legislature. Since there really is no water bond being proposed, the debate is a false one. We are already in a water crisis it is true. Democrats have done nothing to alleviate that crisis since sometime in Jerry Brown administration in the 70’s, that is true as well. About 6 bonds have passed since 1996 claiming to be water bonds, and they got Republican votes to get on the ballot because somewhere in the language of the bond, someone wrote the word water. Not one ounce of new water was created by any of those bonds, and not ounce of water will be created by the currently proposed bond. Simply calling a bond a "water" bond does not make it so. California needs new water, California needs it now, and nothing is being done about it, not by the administration, not by the Democrats, and not by those Republicans who insist that we have a "water" bond that doesn’t create an ounce of water.

Let’s start with a critical premise. A water bond that has above ground storage can be a revenue bond (which does not require a vote… Read More

Jon asked me to comment on the debate over the "water" bond currently being proposed in the Legislature. Since there really is no water bond being proposed, the debate is a false one. We are already in a water crisis it is true. Democrats have done nothing to alleviate that crisis since sometime in Jerry Brown administration in the 70’s, that is true as well. About 6 bonds have passed since 1996 claiming to be water bonds, and they got Republican votes to get on the ballot because somewhere in the language of the bond, someone wrote the word water. Not one ounce of new water was created by any of those bonds, and not ounce of water will be created by the currently proposed bond. Simply calling a bond a "water" bond does not make it so. California needs new water, California needs it now, and nothing is being done about it, not by the administration, not by the Democrats, and not by those Republicans who insist that we have a "water" bond that doesn’t create an ounce of water.

Let’s start with a critical premise. A water bond that has above ground storage can be a revenue bond (which does not require a vote… Read More

After reading over the Governor’s draft Executive Order to reduce the salaries of around 200,000 existing state employees to federal minimum wage (see my post below this one – also see the draft order here) — it dawned on me that perhaps the bigger news is the part that says, "take immediate action to terminate the services of the following five catagories of employees and individuals: (1) Retired Annuitants, (2) Permanent Intermittent Employees, (3) Seasonal Employees, (4) Temporary Help Workers, (5) Individuals Providing Services Under Contract…"

According to press accounts, this is nearly 20,000 people who will be terminated.

This is huge. Perhaps it is the "lemonade" of the lemon that is our state budget crisis. We always see the size of state government grow larger and larger. Seldom do we see actual reductions, Unfortunately, when the budget is approved, it is likely that most if not all of those… Read More

Looks like the Governor is going to issue an Executive Order on Monday to reduce the pay of 200,000 state employees temporary down to the federal minimum wage. Once a state budget is approved, these folks will be issued back-pay for the difference. It’s all about preserving cash flow says this breaking story at the SacBee website.

This will jack up the anxiety of public employee unions who should think about this — they have very little cache with legislative Republicans since, for the most part, they work to defeat every Republican that they can. So the question is what kind of pressure can these unions bring to bear on legislative Democrats? Perhaps it’s time for the unions to roll up their sleeves and figure out how to give state government a healthy haircut — which will then allow for a budget to pass, and their members can once again get their full pay.… Read More

Last week, the Public Policy Institute of California released a study which piqued my curiousity because it talked about the decades-old political football — the peripheral canal. I asked the fine folks at PPIC if they would produce a blog-length intro to their study, which is below. At the bottom, there is a link to much more comprehensive information…

Peripheral canal can save ailing Delta, ensure reliable water supply Public Policy Institute of California Building a peripheral canal to carry water around the Sacramento-San Joaquin Delta is the most promising strategy to balance two critical goals: reviving a threatened ecosystem and ensuring a high-quality water supply for California’s residents. That is the key conclusion of a report released this week by the Public Policy Institute of California (PPIC). Under current policy, water is… Read More

Wikopedia defines Kabuki is a form of traditional Japanese theatrical dance.. Kabuki theatre is known for the stylization of its drama and for the elaborate make up worn by some of its performers.

I am reminded of these Kabuki dancers when we see acts like the one by State Senate President Don Perata — who has called for a budget vote next Tuesday in the Senate (h/t to CapWeekly). The thing is, there has been no successful negotiation to resolve the significant policy issues that divide liberals and conservatives in approach the huge financial hole in which the state find’s itself.

So this budget vote next week is Kabuki — political theatrical dance.

I guess it won’t be a complete waste of time. We can see if Senator Lou… Read More

Today the Congress is preparing to vote on a massive mega-billion dollar "bail out" of Freddie Mac and Fannie Mae" – along with billions of other "gifts" to those impacted negatively by the mortgage crisis ("gift" – paid for with our tax dollars). Congressman Ed Royce (R-Orange County) just sent over this well written piece on this ill-advised legislation:

Socializing Risk While Funding the Left By U.S. Represenative Ed Royce Today the House of Representatives passed one of the largest taxpayer bailouts in decades. After advocating for strong GSE reforms for the better part of a… Read More