Nearly every news outlet in California has been gleefully reporting that the state economy is bouncing back. While recent newsreports show unemployment has slightly dropped, the facts show otherwise — particularly telling is how the Legislature is so focused on increasing the minimum wage, rather than improving the business climate.

Unemployment in the state, and across the country, is worse than is being reported. And, it is far more complicated than a slight economic uptick, or slight “drop” in unemployment.

We’re creating jobs at a slower pace now than at the same time last year. And with the supposed drop in unemployment, the underemployed and those “no longer in the labor force” are issues rarely reported. There is no coincidence between… Read More

Legislators can congratulate themselves on approving an on-time budget. Although this budget contains large spending increases, thankfully it does not raise taxes.

What’s missing is the broad-based tax relief we need to spur jobs and stimulate growth across our entire economy.

In addition, the Legislature missed yet another opportunity to defund the bullet train and eliminate the fire tax.

The Governor should wield his veto pen aggressively to trim wasteful spending. We can and should do more to pay down debt and bolster our rainy day fund.… Read More

With billions of dollars expected to be generated by the California Air Resource Board’s cap and trade auctions, many in the Legislature are excited with ideas of how to spend the money.

But rather than scheming on foolhardy, unsustainable spending plans, if the real goal is to reduce greenhouse gas emissions, experts involved in the process say the Legislature should give the money back to the businesses it taxed, with the proviso the money is spent helping the companies lower their emissions.

What is AB 32 and Cap and Trade?

Last week, the Senate held a very… Read More

The Governor is on the right track in proposing a budget that has no new taxes, contains ongoing expenses, pays down debt and begins to address the state’s growing pension costs.

I just wish the Governor would repeal the fire tax and stop the bullet train.

In addition, California continues to rank as the worst state to do business in an annual survey of business leaders.

The next test for the Governor will be how he deals with legislators who want to raise taxes and spend billions more. Will he hold the line?… Read More

Next month, the Sacramento Metropolitan FireDistrict is expected tomake a pitch that 220,000 Sacramento County property owners approve a large property tax assessment on their properties.

Annual assessments on single-family homes will range up to $50 per year if the proposal is approved by property owners, according to Craig Powell, president of Eye on Sacramento, a public policy watchdog. Commercial properties and apartment complexes will be significantly higher.

The Sacramento Beepublished a story Wednesday reporting about the State Controller’s most recent report on the 1,000 highest paid publicemployees in the Sacramento region, reporting payfrom 2012.

Six different California fire districts top the list of highest paid public employees:

SACRAMENTO — Gov. Jerry Brown delivered his2014 State of the Statethis morning. It was largely a recap of his recent2014 Budget proposal press conference, but shorter.

As Brown often does, he first took on his critics:

“It occurred to me that these critics – who have long recited our state’s decline – perhaps have nothing to say in the face of California’s comeback – except, ‘please, don’t report it.’ Well, I’m going to report it, and what a comeback it is: A million new jobs since 2010, a budgetary surplus in the billions and a minimum wage rising to $10 an hour!”

Brown stressed again the need for “fiscal restraint” from the Legislature. But then he went on to discuss… Read More

A budget that demonstrates fiscal restraint is essential for California to stay on track. Yet the Governor’s high speed rail funding plan shows his funding priorities are off track.

Our increased revenues are primarily the result of temporary tax increases that will soon expire. A successful, comprehensive plan will prepare for the ending of the increases Californians imposed on themselves to get out of the fiscal hole of overspending and recession.

California cannot solve its long-term budget problems by relying on temporary solutions that undermine job creation and economic growth.

It is also vital to set aside reserves for future shortfalls, or the Legislature may push to make temporary tax increases permanent. A strong rainy day fund is an important part of ensuring our state’s fiscal stability.

Ultimately, California’s budget challenges will only be truly solved when a strong and healthy private sector is able to create jobs and opportunity for more Californians.… Read More

Government Shutdown Day 7: It wasn’t a very good weekend for my sports teams. The Kansas City Chiefs won and are 5-0. And, the Boston Bruins are 2-0. But, in car racing and baseball and college football, nothing came out as I wanted. And, my son crushed me this weekend in our NFL fantasy league, although I did win our NASCAR fantasy league this week. Ah, but there is always next weekend.

Such is not the case with the government shutdown. For, as John Boehner now quite famously quipped at a press conference on Friday in response to a question about the president saying he was “winning”, “This is not some damn game!” So, what happens next? What will break the stalemate?

It is quite clear now that this is no longer just about the shutdown and funding the government for the year, but it is also about the debt limit. The Treasury Department has been saying that by October 15th, they would have exhausted all borrowing authority and will be left with about $30 billion in cash. Independent analysts believe that the $30 billion buys them about another 7 to10 days. That gets you until October 22-26. But, those same analysts are… Read More