Bankruptcy is not the pot of gold at the end of the rainbow. But to read some of the advocacy in behalf of allowing states to go bankrupt you might think so. Want to break a labor contract why then go bankrupt. Want to reduce pension benefits why then go bankrupt.

Bankruptcy is used by families and businesses when either their expenses exceed their incomes or more likely when their debts exceed their assets. As big as California’s debt is there are a lot more assets to secure it. Regarding expenses, most all of the California budget can be adjusted downward if there is political willpower to do so. California does not qualify for bankruptcy.

The real problem is political willpower. As long as solutions exist short of bankruptcy whether it is cutting expenses or even raising taxes no bankruptcy judge is going to enter that thicket.

For those who honor the federal Constitution there is a big reason that states do not file for bankruptcy. They are sovereign entities who cannot cede their sovereignty to the Federal government. It is disappointing to hear so many conservatives ignoring the… Read More

Life is not just about politics and law! Here is a picture from my caricature party at the downtown Los Angeles Palm last Monday night, attended by your publisher and many other good friends in politics and law, celebrating my caricature being placed on a wall over a booth in the bar area. With me are my wife and business partner Janice, and my very good friend State Senator Lori Klein, (R-AZ). … Read More

MEMORANDUM To: GOP State Senators, GOP State Assemblymembers From: Jon Fleischman, Publisher, FlashReport.org RE: Heartfelt Input Concerning The State Budget And Jerry Brown’s Proposal To Place A Massive Tax Increase On A June Special Election Ballot

You don’t have to have a conversation with State Senate Republican Leader Bob Dutton for too long before you can hear the frustration in his voice. Dutton has served in the legislature for nearly a decade, and he will share with you that as long as he has been in the Capitol, he has seen the Democrats continue to enact more regulations, raise more taxes (often on majority votes, calling them fees), and all of the while continuing to increase state spending (the latter only finally abating when literally the money to spend ran out). He will tell you that the situation in which state government finds itself in today was not only totally predictable, but also was completely avoidable. Of course one only need talk to a host of retired Republican legislators to know that this has been the case going back… Read More

I recently switched over from a PC to a Macintosh computer. In talking recently with fellow FR blogger Meredith Turney, who made the same switch, she inspired me to try some video commentary, recorded right on my new computer. So, understand this is my first time playing around with it. They will get a little better with practice… (Like I will actually hold up my props a little higher — you’ll understand what I mean when you watch…) Enjoy…

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Below, you’ll find a video clip of my questioning of Fed Chairman Ben Bernanke in today’s Financial Services Committee hearing. The Fed Chairman is always very careful in his choice of language, as markets hang and react on the nuances of every word he says. These are the strongest statements, I believe, that he has yet said publicly about the peril of our national debt. I believe that they must be very worried about this at the Fed and think that the day of reckoning is more imminent, or he would not turn up his rhetoric like this.

I’d say enjoy……but, this is not good news.

At the end, I lose some of my eloquence because I was so surprised that he was as candid as he was with me. My point was that Congress won’t act until they believe the consequences of not acting on this problem are so huge that they outweigh the political risks of the decisions that solve it. We see some such political courage in Wisconsin, Ohio and New Jersey right now. But, not enough yet in Washington or Sacramento. I hope that Mr. Bernanke’s words, as well as those of others, start to scare some of my colleagues into realizing that this is not… Read More

Governor Jerry Brown swept into Los Angeles last Friday, picking up the preordained endorsement from the Los AngelesArea Chamber of Commerce for his $50 billion tax increase election. Preordained because the Los Angeles Area Chamber long ago lost its soul. It is no longera dependable ally for the small or larger business communities.

The Los Angeles Area Chamber was taken over by non-profits and lawyers. The landmark election of George Kieffer of Manatt Phelps (pictured right) in 2003 began a new assault against entrepreneurs. Since then the LA Chamber has supported virtually every tax increase from the city, county and state level. The Chamber supported the ill fated tax Prop 1A in 2009, which was rejected by angry California taxpayers by a margin of two to one.

George Kieffer is a gentleman and a… Read More

Former Assembly Speaker, Anaheim Mayor and current High Speed Rail Authority Chairman Curt Pringle was elected to head the Orange County Taxpayers Association this week.

OCTax is known for working with local government to improve tax policy andwork better with the business community. They also have a PAC that endorses and contributes to pro-business and anti-tax candidates.

In recent years the group has brought on higher profile leaders to serve on the board including former CA Housing and Community Development Director and current OC Business Council CEO Lucy Dunn and Cox Communications Government Affairs executive Jim Leach.

OCTax’s mission is to insure that taxes and tax supported programs are fair, understandable, cost effective and good for the economy.

OCTax is one of those endorsements you want to collect and feature in your voter contact if you can. The group has positive name ID and especially now, when voters are so peeved over the failed state of government budgets, OCTax’s stamp of approval is helpful to have. Organization president Reed Royalty has been around a long time and has the respect of most… Read More

I don’t really know Rancho Santa Margarita City Councilman Jesse Petrilla. Yet I think every single person that reads this blog should stand with him against the majority on his City Council.

See related Jim Lacy post here.

In 2003 I was the Vice-Mayor of Woodland and was called to active duty in the Marine Corps. When I left we had no idea how long I would be gone. Could have been months or even years. We really did not know.

The people on the City Council chose not to replace me but since my term of deployment was not clear I would have understood if they did. Petrilla will be gone for just three months.

Here is the problem for the service member that is publicly reported to be deployed. To most people in the public it says "military service is an honorable thing". To some it says that "the family of the service member is vulnerable". Not cool. I am sure that Councilman Petrilla is happy to do this training but has concerns about his wife. These are… Read More