I appreciate that Insurance Commissioner Steve Poizner has come out strongly against the budget deal with its $14 billion tax hike (although I cringed at his "they don’t have the guts to raise taxes on the rich" comment. Can we please not lend any credibility to progressive taxation?).

So why is Poizner headlining an event to raise money for Anthony Adams, one of the three Assembly Republicans who is voting to pile this mass of taxes on the rest of us?:

This tax hike isn’t an ordinary issue on which Republicans of good will can disagree. This is elemental. It goes to the heart of the Republican Party’s reason for being. It is a political Rubicon that shouldn’t be crossed without penalty.

One penalty is party luminaries should shun tax-hikers like Adams and refuse to raise money ffor them. I’d like to see Poizner put some teeth into his rhetoric and say, "Sorry Assemblyman Adams, but I can’t ask republicans to… Read More

Given that Senate Republican Leader Darrell Steinberg has lectured his colleagues to "bring their toothbrushes" as a statement of his willingness to "lock down" the State Senate until somehow, out of pure physical exhaustion, he can gather votes for his major tax increase (good luck) —members of the State Assemblyare well prepared if Speaker Karen Bass follows uses the same sort of strong-arm tactics the legislature’s lower chamber.

Assemblyman Bill Emmerson, an orthodontist by profession, has provided his Assembly colleagues with toothpaste and toothbrushes.

In a note with his small gift of hygiene products to his colleagues, Emmerson wrote, “I hope this small tube is enough to get you through these trying budget negotiations.”… Read More

We have duly elected members of the Legislature under the Capitol Dome being treated like children. Let’s just assume that everyone is an adult and they all of them can generally take care of themselves. Some of you are laughing now but we are talking about grown men and women.

Recently the doors have been locked and they have been prevented from leaving.

I want to know what authority the Assembly Speaker and President Pro Tem have to do this. Under Article 4 Section 7 of the California Constitution:

SEC. 7. (a) Each house shall choose its officers and adopt rules for its proceedings. A majority of the membership constitutes a quorum, but a smaller number may recess from day to day and compel the attendance of absent members.

So who is absent? Was the leadership really compelling attendance be absent members? No one was absent. They didn’t miss anything.

If this is the only justification provided by the leadership for their actions of locking the doors… Read More

Today GOP Gubernatorial aspirant Meg Whitman gave the first of three major speeches she intends to make this week. With all of the politics taking place in Sacramento right now, I don’t really have much time to cover and analyze her remarks — right now. We’ll be able to pivot back to 2010 politics soon enough (Whitman conducted a couple of interviews with newspapers that are certainly worthy of commentary).

Whitman spoke today in the Silicon Valley (which she would know well) at the Tech Museum of Innovation in San Jose. I have attached below a link to her speech. If you’re following this primary, you should read it — as it is Whitman’s first major address as a candidate.

Ironically, I was last at the Tech Museum a couple of years back, to attend the swearing-in ceremony of newly elected Insurance Commissioner Steve Poizner. How poetic. (*Note,… Read More

Republican Insurance Commissioner and Gubernatorial candidate Steve Poizner sat down with reporters with the Sacramento Bee this morning. He made a common sense suggestion on how to keep the state from going insolvent without ANY tax increases. Rather than pursuing an 18 month solution, perhaps we should look more short term, so that we don’t have to raise taxes? A novel thought.… Read More

In addition to Jon’s kudos to the Gang of 13 this morning, let’s also send a big birthday wish to Senator Tony Strickland. Keep in mind he missed both a Valentine’s Day weekend as well as a birthday weekend, holed up and locked down while protecting the taxpayers of California. That’s the best gift I ever received from someone else on their day.

Happy Birthday, Tony! 39?… Read More

There are a lot of problems with the Big 5/Big Taxes plan — some of which are a function of a broken process. The super secret-squirrel negotiations result in a scrambling of speedy analysis, trying to figure out what is really in the package.

State Senator Bob Dutton, who ironically is the Vice Chairman of the Senate Budget Committee, like everyone else has been scrambling to look into the details of the plan, having had it sprung on him just like everyone else.

One interesting analysis that his staff did was they looked over the stated $15.1 billion in cuts in the plan. Guess what they found? Yep, State Capitol "double speak" is alive and well.

Attached is a document (excel format) that details the sad truth, which is that if you apply the traditional "normal" definition of cuts (you know, were we actually reduce the amount of money on a program, as opposed to "cutting an anticipated increase" — or how about calling cuts items that have to be paid back?

Anyways, by the take you take out the "cuts that aren’t cuts" — the real cuts in this package are only $3.1 billion —… Read More

Kudos to CalTax for picking up on the Board’s reluctance to give up extra resources with regard to the new Flavored Malt Beverage regulation (link).

When we adopted the regulation last year, over my objections, the Board told the Department of Finance to expect $38 million in revenue for the fiscal year. As I warned repeatedly, it turns out the regulation is unenforceable and easily dodged.

The companies this regulation sought to punish simply changed the formula in their products so they no longer contain distilled alcohol. As a result, year-to-date, the state has collected only $6,000 of revenue. (Yes, that means our expert revenue estimates were off by 6,333%) To gear up to collect this tax we asked the Department of Finance for more money. Finance now understands how ridiculous this tax is and they want the BoE to completely withdraw the request. I agree with Finance. With a hemorrhaging state budget this should be a very simple decision to save the state money.

The BoE is asking for $1,328,000 (General Fund) in Fiscal Year 2009-10. Now that we… Read More