The Obama administration has threatened to rescind billions in stimulus money if Governor Schwarzenegger and state legislators do not restore wage cuts to unionized home healthcare workers. These cuts amounted to less than $100 million in cuts, but they represent an important initiative by state government to try and reduce its size during an unprecedent budget shortfall.

Simply put, California needs to call the bluff of the President. If anyone thinks that President Obama and the Congress won't make whatever emergency modifications in order to accomodate our situation is nuts.

Resolve is necessary because an important principle is at stake – home rule. Who is in charge of California's spending priotities? Washington, D.C., or Sacramento?

Oh yeah — there is also some shame due to the SEIU, who have complained (typically) against any cuts, and have promulgated the Obama Administration's blackmail move.… Read More

At a time when Californians are experiencing brutal tax increases and cuts to vital services, it’s unthinkable for the state to secretly give away a billion-dollar asset to wealthy sports team owners. But that’s exactly what might happen. It’s corporate welfare gone pro.

Cal Expo – the publicly-owned home of the state fair and harness racing venue – is exploring a deal with the National Basketball Association to build a new “Entertainment Venue” as part of potential $1.6 billion deal. The arena portion is estimated to cost as much as $700 million and would be essentially given "free" to the billionaire owners of the Sacramento Kings.

Now, I love having a professional sports team here in Sacramento. I go to games, concerts and other activities at the current ARCO arena (pejoratively referred to as Echo Arena.) But public assets should be for… Read More

Like all average Californians, I am working away while listening to the John & Ken Show via the internet (isn’t that what most people do?).

They just announced that on May 15th, State Senator Abel Maldonado will be coming onto their show.

Good grief.

That’s like that Hatfields asking to come have dinner at the McCoys (did I just insult the Hatfields?).

LOL — you can be sure we’ll provide a link to the podcast of that appearance!… Read More

This in from California Congressman Ed Royce (R-Fullerton)…

The Federal government Must Get Out Of The Business Of Picking Winners And Losers Congressman Edward R. Royce Tuesday the House Financial Services Committee held a hearing on proposed legislation that would make whole local municipalities with failed investments in Lehman Brothers, an investment bank that filed for Chapter 11 bankruptcy last fall. Orange County’s Treasurer, Chriss Street testified.

By all accounts Lehman Brothers was and is today a failed… Read More

Capitol Alert has confirmed (they have the advantage of being IN the Capitol, not in Orange County) that this morning, as anticipated, Assembly Republican Leader Mike Villines has announced he is quitting his post.

But he didn’t announce that he is leaving today — but he is departing at the end of the month. That’s in just a few weeks, so no big deal, right?

Well, MAYBE.

To be honest, I am not really too caught up in whether the actual change in position happens now or in 24 days.

What I am focused on are two things — one very significant, and the other important, but not as significant (given the limited time window up Villines’ chosen date to step down).

The significant question, given the severity of the state’s fiscal crisis as a result of overspending, is from today forward, who is the point person for Assembly Republicans in providing leadership on this issue? If a… Read More

Third term Assemblyman Van Tran, a Republican from Orange County, yesterday announced that he was forming an exploratory committee to official look at running for Congress in California’s 47th District, currently represented by Democrat Loretta Sanchez.

I had an opportunity to sit down with Tran, and ask him some questions about this major decision in his life. Here is that interview…

FLASHREPORT PUBLISHER JON FLEISCHMAN INTERVIEWS ASSEMBLYMAN VAN TRAN

**There is more – click the link**

View Full Commentary… Read More

This morning at 9am, Assembly Republicans will enter into a special caucus meeting. The purpose? Apparently Central Coast Assemblyman Sam Blakeslee has put together the votes to become elected Assembly Republican Leader. This morning the current occupant of the job will announce that he is stepping aside (which is the politically correct way of saying that he was "let go" from his duties as leader).

Having had some time to absorb this turn of events, I thought I would make the following observations…

As FR readers know, the current leader, Michael Villines of the Central Valley, was one of the key architects behind a budget deal in February that ultimately gave California’s the largest tax increase in the history of any state. In addition, he along with former State Senate Republican Leader Dave Cogdill (as well as Governor Schwarzenegger and legislative Democrat leaders) concocted the Proposition 1A "toxic cocktail" — a measure that would apply "revenue smoothing" measures into state law, but also triggers, if it passes, an addition $16 billion in higher taxes for Californians. The campaign to pass 1A is… Read More

Third term Assemblyman Van Tran, a Republican from Orange County, yesterday announced that he was forming an exploratory committee to official look at running for Congress in California’s 47th District, currently represented by Democrat Loretta Sanchez. I had an opportunity to sit down with Tran, and ask him some questions about this major decision in his life. Here is that interview… FLASHREPORT PUBLISHER JON FLEISCHMAN INTERVIEWS ASSEMBLYMAN VAN TRAN

FlashReport (FR): Van, I’m glad that you could spend some time with the Flash Report… Read More