California is officially insolvent and has begun paying its bills with IOUs. While certain sacred cows are protected from getting IOU’s, taxpayers are first in line to get hosed.

Assemblyman Joel Anderson has authored critical legislation, Assembly Bill 1506, to provide relief to taxpayers and businesses who will be receiving IOUs from the state.

So far, $50 million worth of IOUs are on their way to taxpayers who are owed a refund. Next in line are vendors, private businesses that provide services to the state on a contract basis. Assembly Bill 1506 allows IOUs to be used as payment for any obligations to the state.

For example, if you are a business with state contracts and you receive an IOU for $50,000, you could use that IOU as payment for your payroll taxes, DMV fees or any other obligation to the state. Without AB 1506, many businesses will be forced to close their doors and layoff employees. This bill is about protecting jobs and the economy from onerous, irresponsible government.… Read More

We’ve gotten a lot of "tips" today that there are leadership runs at least being talked about against both Senate President Darrell Steinberg and Assembly Speaker Karen Bass. I don’t follow the internal politics that take place on the left side of the aisle too closely. There are those that do, but will they blog about it somewhere? Who knows.… Read More

Well, I guess I played a role in an Orange County politician resigning from office today. Another dubious distinction for my resume.

Readers know I have been reporting here about the apparent jihadthat is ongoing by the Secretary of State, Debra Bowen, and the Los Angeles District Attorney, to nail people involved in politics who are registered to vote at one address, but apparently live most of the time at another. Mark Jacoby, a petition gatherer, was charged with a felony along these lines late last year and pled to a misdemeanor a couple weeks ago. I was surprised by the plea, I thought he might have gotten off if he fought the charges. But after his plea, the same authorities nailed liberal Latino activist Nativo Lopez with the same type of wrap, but with FOUR felony counts. He won’t enter a plea until next week, and is out on $55,000 bail. Ouch!

So on the 28th, when I read Teri Sforza’s story appearing in the Orange County Register on the 26th, (I was a little behind on my reading) about Metropolitan Water District of Southern California board member Ergun Bakall, who repsents… Read More

Check out this video of SEIU "Budget Bullies" Storming the Capitol Building today.… Read More

Today Jon Coupal, President of the Howard Jarvis Taxpayers Association appropriately demanded an apology from Assembly Speaker Karen Bass after she called Californians who oppose tax increases, in a word, "terrorists.

Speaker Bass used that word several times during an interview with the Los Angeles Times. She said that Republican members of the legislature, "operate under a terrorist threat" and that they are "terrorized" against voting for [taxes]."

Bass mentioned the recall effort being mounted against Assemblyman Anthony Adams by concerned citizens, and went on to say, "I don’t know why we allow that kind of terrorism to exist." Coupal (pictured) condemned these statements as outrageous — saying, "For the State of California’s Speaker of the Assembly to call the people of California ‘terrorists’ is despicable. For… Read More

There are a lot of measures that are used in computing the viability and health of a political campaign. Given the enormous costs associated with campaigning in a state as large as California, one of the most critical metrics is a candidates ability to raise money. Yesterday marked the end of a six-month reporting period — candidates for office, in a few weeks, will have to file official statements noting what they have raised and spent from January 1 through June 30.

Meg Whitman’s campaign for Governor today announced that they have raised a staggering $6.5 million dollars in just five months — a huge financial outpouring of support for her candidacy. This does not include the more than $4 million of her own personal funds that she has given to her campaign, bringing her fundraising total for the period to above $10 million.

It will be some time before official reports will be available for review and analysis — to get more insights into who Whitman’s donors are, and… Read More

The big question looming out there for vendors and people who receive money from the state, and for the record way too many people do, is who will accept IOU’s?

Banks haven’t made up there minds. They may be waiting to see what the interest rate will be. Golden State Credit Union will take the warrants; they after all cater to government employees.

I have co-authored AB 1506 that would allow the recipients of IOUs from the state to use the warrants as payment for state services.

Today, I attended a press conference organized by Assembly Bill 1506 Author Assemblyman Joel Anderson.

If IOU’s are going to be issued by the state, the state should take them as payments. The DMV should take them, California State universities should take them, the Board of Equalization should take them etc…

If California wants banks to take them, shouldn’t California government do the same?

Think of the all the interest California will save and besides they are safe bet, right?… Read More

Today Governor Schwarzenegger was "channeling" Republican Assemblyman Bill Emmerson who has for quite some time now been beating the drum of stopping all other legislative work and focusing exclusively on the budget shortfall (Emmerson had a column on this topic just last weekend published in the Riverside Press Enterprise). Needless to say, until now, Emmerson’s been on a lonely quest — as his legislative colleagues have not been in a hurry to push thousands of pieces through the process while state government is literally going broke. Well, if Emmerson could have hand-picked one politician in the Capitol to agree with him, it would have been Arnold Schwarzenegger. I’m sure Assemblyman Emmerson was smiling as he watched this clip from the Governor’s press conference just a couple of hours ago. We’re smiling — because we agree with Emmerson and Schwarzenegger — it’s time to stop all non-budget related matters, and focus exclusively on a comprehensive solution to the massive shortfall of over $26… Read More