The latest barrage of “news” reports that California is enjoying an economic recovery is evidence that this is most likely being driven by Gov. Jerry Brown’s office.

Ya sure, you betcha, we’re fine.

Given that the California Department of Finance works only for the governor, the pressure is on to provide numbers and information which presents a picture favorable to the governor.

This was never more clear than when a report showing the unemployment rate in the U.S. fell below 8 percent in order to boost to President Obama’s re-election campaign right after his first dismal debate performance with Republican challenger Mitt Romney.

It was the numbers from California that gave the boost needed.

Conveniently, the Labor Department reported in Sept. that the nation’s jobless rate improved to 7.8 percent. The unemployment rate had not been that low since Obama took office in January 2009.

The latest monthly jobs report was released by the Bureau of Labor Statistics the first week of October. The unemployment rate miraculously decreased to 7.8 percent in September, the BLS reported.

According to The Associated Press, “the… Read More

In the wee hours of the night, at the end of the last legislative session, language was added into a bill to push forward reforms to California’s 40-year old environmental policy, the California Environmental Quality Act.

The reforms were sponsored by the CEQA Working Group, a business-labor-government coalition. Intended to reduce frivolous environmental litigation and duplicative government oversight, the reforms ended up being part of a smoggy deal.

Before anyone could stop them, the Democratic leadership swooped in on the bill and changed it.

SB 317

Because of California’s stringent environmental laws and project-killing local planning requirements, nearly all public and private projects in the state are legally challenged under CEQA, even when a project meets all other environmental standards of state law.

SB 317, co-authored by Sen. Michael Rubio, D-Shafter, a gut-and-amend bill, would not have actually changed CEQA, but instead would have introduced a companion law to dictate how CEQA is enforced. The new legislation would have restricted certain types of lawsuits, and would have exempted some projects from CEQA… Read More

The swearing-in of new legislators is usually a party atmosphere. Lawmakers feel celebratory after long campaigns. Yesterday’s swearing-in was not a disappointment however, along with the celebratory mood, there was an air of fantasy and fairy tale.

This is the largest freshman class, with 39 newly elected lawmakers, since 1966.

Perhaps the party mood was because of the new Democratic supermajority. While Democratic Senate President Pro Tem Darrell Steinberg insists that Democrats will not go hog wild with their unobstructed power, not everyone believes that. “I just don’t think we should come hurtling out of the gates talking about a bunch of new taxes,” Steinberg told media Monday.

“It’s in their DNA,” one Capitol staffer told me, but asked to remain anonymous. “It would go completely against everything they stand for. They can’t help themselves.”

Fractured fairy tales

When it came time to nominate the Assembly Speaker, the Capitol sergeants should have handed out airsick bags.

Assemblyman Wesley Chesbro, D-Humbolt, nominated current Assembly Speaker John Perez, D-Los Angeles. Chesbro said Perez… Read More

When a business closes it’s doors forever, the impacts are far-reaching.

The announcement of the upcoming closure of the Campbell’s Soup plant in Sacramento will have regional and statewide impact.

Econ. 101

I may have been a political science student, but my husband is a longtime Sacramento manufacturer. For many years I lived and worked Econ. 101 lessons alongside 250 employees.

My businessman husband was an economics major in college and frequently reminds me that economics education in college has seen a dramatic shift. There weren’t many Keynesian economists in universities back then. Unfortunately, today, Keynesian economics seems to be the only economic theory coming out of universities.

Keynesian economics is an economic theory stating that aggressive government interventions in the marketplace and monetary policy are the best way to ensure economic growth and stability.

Economist Walter Williams has explained for many years the reality of the free market economy in which businesses must make a profit in order to survive: ”In the market, when a firm fails to please its customers and fails to earn a… Read More

There are 230 bond, tax and fee increase proposals on the 2012 ballot in California. Gov. Jerry Brown’s Proposition 30 tax increase measure is the least of voters’ problems this election.

There are 100 school bond measures on the ballot throughout California. There are more than 30 sales tax increase initiatives, business tax increases, parcel taxes, utility taxes, and hotel taxes. There are even tax increase measures for sodas and abandoned-cars.

How many tax increases will “fix” California?

The answer is easy. None.

What’s really wrong California?

Local governments would have everyone in the state believe that they are struggling to make ends meet. But they grossly misuse the word “struggle.” The only downsizing done in local government has been to cut the lower paid employees who probably weren’t eligible for pensions anyway.

In Sacramento, the City Council is pushing hard to pass several ballot initiatives:

* Measure Q: Sacramento City Unified School District;

* Measure R: Sacramento City Unified School District;

* Measure T: Sacramento (City of) Mandates on Garden and Yard Refuse… Read More

It’s bad enough that California’s gas tax is among the highest in the nation. It’s even worse that the gas tax goes up whenever gas prices rise.

Today I released data showing that high gas prices have resulted in a record windfall for government at the expense of California consumers.

California motorists paid a record $8.3 billion in state and local fuel taxes during the 2011-12 fiscal year.

From July 1, 2011 to June 30, 2012, the California State Board of Equalization collected $6.9 billion in motor vehicle fuel taxes, up from $6.7 billion the prior year. Excise tax revenues accounted for $5.2 billion, while sales tax revenues accounted for $1.7 billion.

Over the same time period, the state collected $1.4 billion in diesel fuel taxes, up from $1.2 billion the prior year. Excise tax revenues accounted for $343 million, while sales tax revenues accounted for $1.1 billion.

… Read More

Anyone who still has the hope of reforming California knows that it must begin with the political system. Far too many politicians in California are so heavily influenced by big money that constituents seem to be nothing more than an afterthought and a group to pander to for political advertisements.

For many years politicians have sought political contributions from corporations and unions, then voted the way those special interests ordered.

And, unfortunately, too many politically ambitious Republicans have gone along with the big-government party plan instead of thwarting the political dominance from unions and big corporations.

The only way to begin real reform in the Golden State is to neuter the money influences. Proposition 32, the “Paycheck Protection” ballot initiative, could begin the reform process.

Big bucks… Read More

A new survey of 500 small businesses claims that a majority of small business owners want high income earners to be taxed more. This is difficult to believe, and amazing timing with the election less than two weeks away.

I participated in an early morning conference call on Thursday with Small Business Majority. They just published the survey titled, “Scientific Opinion Poll Finds Majority of Small Businesses Support Letting Tax Cuts for High Income Earners Expire.”

But during the conference call, when I heard the CEO claim that the majority of entrepreneurs “see a productive role for government in helping small businesses achieve success,” I nearly flipped.

John Arensmeyer, the founder and CEO of Small Business Majority, also claimed nearly six in 10 small business owners “agree that government can play an effective role in helping small businesses thrive.”

The Small Business Majority is a liberal Democratic group based in San Francisco. They… Read More