To conclude that the state is bankrupt is to suggest that the state is unable to pay its debtors even after selling all its assets and giving up all its income. That is simply not true. The reality is that the state is choosing to spend more than it takes in, which is a policy choice that needs to change, but those who believe bankruptcy would make Sacramento face reality would not like the result.

In the past I have been loose with the word ‘bankrupt,’ but even if some court could have bankruptcy jurisdiction the state would still not be insolvent to file for relief. To be insolvent is to have debts greater than assets. Our debts are roughly $131 billion in General Obligation Bonds (issued and eligible) and leasing arrangements, plus around $500 billion in present and future pension and health liabilities, for a total of around $630 billion. On the asset side, the PERS account (underfunded but still substantial), plus all state property – the buildings, state parks, beaches, oil leases etc and other investments – is greater than $635 billion. As far as debt service, according to the Treasurer’s 2009 report, our annual total debt service is around… Read More

It didn’t take long this morning before an inquisitive FR reader asked about my endorsement of Marco Rubio for U.S. Senate in Florida, and whether I am obliged to stay neutral in his showdown against liberal GOPer and Florida Governor Charlie Crist.

I checked in with the California Republican Party’s legal counsel on this very point. Bell assured me that the bylaws of the State GOP prohibit elected CRP Officers from endorsing in contested partisan primaries here in the Golden State — but do not keep us from endorsing Republicans in primaries outside of California.

Good to know!… Read More

One of the funny things in running for statewide office in California is that if you want to take advantage of the 250 word ballot statement that comes with accepting the expenditure limits under Prop 34 you have to do it prior to the filing deadline.

So if you still are planning to run for statewide office or Board of Equalization and you did not file your ballot statement with the Secretary of State by February 17th then you missed an opportunity to pay $25 a word to get your message out to every member of your own party in the state. It also makes me wonder what happens if you place the ballot statement and then don’t actually file for office.

If you are interested in reading the statements they are available for public review until March 15th. Read them here.

After looking at these a couple things jump out.

1) Senator Barbara Boxer claims to be helping small businesses thrive. That is just crazy.

2) Ted Costa paid $25 to have a one word ballot statement get sent out in his campaign for State Controller —- www.tedcosta.com.… Read More

One of the most anticipated races in the county this year (if not the most) is for San Diego County Sheriff, due to the "open seat" status resulting from the early departure of Sheriff Bill Kolender and the subsequent appointment of Bill Gore to the position by the Board of Supervisors.

At this point the race is being defined by the money trail, through December 31 of last year, focusing on the all important cash-on-hand category:

Jim Duffy, former Sheriff Department lieutenant and former chief of staff to Supervisor Ron Roberts-Raised (July-Dec 2009): $34,225 -Cash on Hand: $47,421 -Debt: 0

Bill Gore, appointed San Diego County Sheriff-Raised (July-Dec 2009): $103,488 -Cash on Hand: $111,981 -Debt: $35,886 (no personal loans)

Jay La Suer, former Department Undersheriff and retired 77th District Assemblyman-Raised (July-Dec 2009): $30,363 -Cash on Hand: $10,337 -Debt: 0

Bruce Ruff, retired Sheriff Department sergeant and three-time prior Sheriff candidate -Raised (July-Dec 2009): $5,300 -Cash on Hand: $942 -Debt: $8,000 (all personal… Read More

The JP Morgan Chief warns in the UK Telegraph that California’s credit situation could be riskier that the disaster we are seeing in Greece. This of course is under the "leadership" of our great GOP Governor and the six consecutive horrendous budgets crafted by his crack finance team and agreed to by the Democrat leadership and stunningly compliant -and duped Republican leaders.

As the GOP heads into the State convention in a couple of weeks, I wonder how much the Party will have to say about the miserable performance of the Governor and Legislative leaders past.

Does anyone even remember the sales tax increase last Spring? The celebration of a budget that was a farce and a disaster from day 1 last year?

Voter registration numbers and fund raising are a key indicator of how State residents think about both political parties. We seem to be all too ready to celebrate failures of Obama / Pelosi and Reid without thinking of how those failures will actually translate into… Read More

The soon-to-close winter Olympics have been fun to watch, though CPAC diverted my attention for a few days. I saw today that a Polish female skier won that nation’s first cross-country gold. It got me thinking……..

When I was a kid, it was fairly common for the grown-ups, especially when speaking to emigre in-laws, to refer to Europe as "the Old Country." This thinking was pervasive enough that it was not uncommon to see restaurants named "Old Europe." I think there was even a small chain with this name with a couple places in West L.A. I recall the great pea soup….

My grandfather was an emigre to California. He was born in Grodno, Poland, two centuries ago, when it was under Russian control. (It still is, though it has been tossed back-and-forth like Alsace-Lorraine). A Russian speaking, Russian citizen of ethnic Polish blood, and a Catholic, he moved to the Siberian maritime province when he was a teenager with his family, at a time in Russia when making that move was akin to "Go West, Young Man," in the U.S. He went to college at a Jesuit school in Shanghai, China. Then… Read More

Sunil Sharan, former director of the Smart Grid Initiative at GE, writes about the green job myth today in the Washington Post asking the question: “How valid is the assumption that a ‘clean-energy’ economy will generate enough jobs to mitigate today’s high level of unemployment – new jobless claims were up 22,000 this week – and to meet the needs of future generations?”

“The facts challenge the prevailing thinking among some policymakers and officials that green jobs are a principal reason for transforming the economy,” Sharan continues.

Sharan, who has worked in the clean-energy industry for a decade, uses the installation of “smart meters” as one example of green jobs that don’t amount to much.

“Although a surge of new digital meters will be produced, the manufacturing process is highly automated. And with much of it accomplished overseas, net creation in domestic manufacturing jobs is expected to be only in the hundreds,” Sharan says.

Finally, Sharan says something Conservatives have been saying for a few years now: “For the purpose of creating jobs …a… Read More

Quote of the week: "Is there any chance that the Camry Hybrid will be recalled…I just want to find out if you expect it ever to be on the recall list, for any reason." – Delegate Eleanor Holmes Norton (D-D.C.) questioning Toyota CEO Akio Toyoda and COO Yoshimi Inaba in the House Oversight and Government Reform Committee.

Toyota: The staged "health care summit" is going on as you read this missive, but until that, the biggest thing going on in D.C. has been the Toyota hearings. As most regular readers of theFlashreportknow, I was in the car dealer business for 25 years before I lost my mind and went into politics. Before I get into my thoughts on this, let me make it clear that I have never worked for, or had a Toyota, Lexus, or Scion dealership. In fact, Toyota was the "enemy" since most of the cars I sold were in direct competition against Toyota vehicles. Unfortunately, Toyota generally won that competition since they are now the largest car manufacturer in the world. So, I have no loyalty to, nor any ties with Toyota. And, truth be told, I actually don’t personally… Read More