California Democrats seize super majorities in both houses of Legislature

SACRAMENTO -- Democrats appear to have seized a super majority in both legislative chambers, which would give them the ability to approve taxes without Republican support.

Under the radar, with all the attention focused on Proposition 30, California voters ushered in a new era in state politics not seen in nearly eight decades: Now, for the first time since 1933, the ruling party would have two-thirds majorities in both chambers and free rein in a startling transformation that neuters Republicans in Sacramento to a new level of irrelevancy.

Assembly Speaker John Perez, D-Los Angeles, announced early Wednesday morning that he is confident Democrats have captured the two extra seats they needed to secure 54 seats, a two-thirds majority.

And Senate President Pro Tem Darrell Steinberg has also said he is confident Democrats will hold a two-thirds majority, though with two Democrats leaving for Congress, they will have to hold special elections early next year to maintain it.

"A working two-thirds majority will allow the Senate to move forward with balanced solutions to spur economic growth and improve our system of governance," said Steinberg, D-Sacramento. "At the same time, this newfound capability means the Democratic majority will be held accountable for those decisions. We intend to exercise leadership with humility."

In a news conference Wednesday, Brown reiterated his pledge to not sign taxes without a vote of the people,setting up a potential clash with legislative Democrats who may be eager to fill more funding holes.

But he said "we're not into the threat game here," and that he wasn't "drawing lines in the sand" with veto threats.

Brown, who was governor for two terms in the late 1970s and early '80s, called his relationship with the Legislature "better than it ever has been in my 10 years" as governor.

With almost 54 percent of the vote, Brown refused to call the victory of Proposition 30 a mandate, but it "vindicated my confidence that the people of California can make very sound judgments." Still, he said, he didn't want to "overread" the message of voters.

"But given the massive opposition and skepticism about whether or not state government can handle any more money, I see this as a vote of confidence, with some reservations," he said. "The real lesson is voters have trusted their elected representatives, and maybe me to some extent, and we've got to meet that trust. We've got to make sure over the next several years that we pay our bills, invest in the right programs but we don't go out on any spending binges."

Brown spoke of a busy agenda for next year that included regulatory reform, water reform, getting the high-speed rail project off the ground, education reform and the budget.

Before the election, most observers expected Democrats to take a two-thirds majority in the Senate but considered an Assembly super majority to be a long shot at best.

Assembly Republican Leader Connie Conway, R-Visalia, conceded the loss, though she warned Democrats against overreaching.

"The voters have spoken, and I respect the voice of the people," Conway said. "By no means should the majority party interpret these results as a mandate. Millions of Californians opposed the governor's tax hikes and shared our view that job creation is the best revenue generator for the state.

"Republicans will hold the majority party accountable for delivering their promise to voters that these tax hikes will go to our classrooms and not big government."

via Mercury News

Federal budget cuts will have local impact

President Obama triumphed and Proposition 30 passed, but the looming federal fiscal cliff and California's budget woes could result in drastic reductions in funding for public safety, social services, health care and transportation.

More political gridlock in Congress could be devastating for the economy and for people who rely upon government agencies in times of need. Indeed, the destruction caused by going over the fiscal cliff would impact residents at all income levels.

Alameda County could see declining federal funding for programs for seniors, assistance to needy families, the Supplemental Nutrition Assistance Program and other safety net programs.

For example, the substance abuse primary prevention programs run by Alameda County Behavioral Health Care Services could be affected by a $275 million nationwide cut.

A $92 million nationwide cut to the Community Oriented Policing Services grants could affect Alameda County. That funding pays for 50 percent of the sheriff's bulletproof vests and partially funds 15 community policing deputies.

Even though Proposition 30 passed, California faces a fiscal year-end deficit of about $3.6 billion, according to the Legislative Analyst's Office. Much of this shortfall is due to inaccurate revenue projections and budget solutions that were not fully implemented or have been held up in court.

In this climate of federal and state funding rollbacks, local elected officials are working with their hands tied behind their backs as they fight to maintain essential operations and, under the governor's realignment plan, take on additional operations such as jailing inmates who previously would have gone to state prison.

Americans have shown they agree with President Obama's policies. Now Congress must acknowledge the voters' vision and work cooperatively with the president to achieve a reasonable compromise to reduce the deficit without decimating safety net services that residents depend on.

Alameda County Supervisor Keith Carson represents District 5 and serves on the executive board of the California State Association of Counties.

Read more: http://www.sfgate.com/opinion/editorials/article/Federal-budget-cuts-will-have-local-impact-4024233.php#ixzz2C2Xemz3z

Questions and answers about the new California budget landscape Read more here: http://www.sacbee.com/2012/11/12/4978347/questions-and-answers-about-the.html#storylink=cpy

Gov. Jerry Brown and state lawmakers are looking at a new budget landscape afterCalifornia voters last week approved a $6 billion annual tax infusion and apparently gave legislative Democrats supermajority power.

State leaders and the Capitol lobbying corps are still sorting out the implications. But the changes will undoubtedly embolden groups who felt victimized by recessionary budget cuts.

From state workers to social service recipients to schoolteachers, almost everyone who relies on public dollars has faced rollbacks in some form.

The governor, for his part, suggests he will focus first on paying down debt and bring the state's expenses in line with its revenues. But pressure will be significant to bring back programs rather than simply retire debt.

We answer some budget questions:

>Wasn't Proposition 30 just supposed to help schools?

That was the sales pitch, but as The Bee and others pointed out during the campaign, the money would benefit the entire state budget – of which education is one substantial part.

In the current school year, Brown and lawmakers focused the impact of Proposition 30 almost entirely on K-12 districts and higher education, threatening to cut them if voters rejected the initiative.

But in future years, Brown and state lawmakers will have to balance education demands against a host of needs elsewhere in the nearly $100 billion general fund budget. Education may stand to gain the lion's share of new money, but labor unions and social service advocates will also fight for relief from past cuts.

>What does that mean for state workers?

They face 12 days of furloughs this year, equal to a 4.62 percent cut in hours and pay. That expires in June.

Given that Proposition 30 passed, it is unlikely that Brown will find sufficient reason to extend furloughs after using the state's massive budget deficit as justification this year. It did not go unnoticed that Service Employees International Union Local 1000 President Yvonne Walker, who leads 93,000 state workers, stood beside the governor as he celebrated his tax initiative victory on election night.

The governor will negotiate new contracts with all but two labor unions, which may feel empowered not only by Proposition 30 but also by Democrats' legislative gains.

The legislative leaders are union advocates. Assembly Speaker John A. Pérez made his mark as a labor organizer, and Senate President Pro Tem Darrell Steinberg walked a picket line last week at the Raley's supermarket in South Land Park.

>How does this affect the local economy?

Jeffrey Michael, who runs the Business Forecasting Center at the University of the Pacific, says Proposition 30 is a "net positive" for the region, although not an overwhelming factor.

"Any time you're taxing millionaires, which are not found frequently in Sacramento County, and sending money to state government, it's a positive," Michael said.

He agreed that new tax dollars and Democratic gains make government pay cuts less likely in years to come, and state employees remain the biggest source of wages in the region.

Education is also a significant job driver locally, at both K-12 and colleges, so avoiding cuts there is another boost.

>When does the sales tax hike start?

The statewide sales tax increase – a quarter-cent on the dollar – kicks in Jan. 1. That will hike the sales tax in most of Sacramento County from 7.75 percent to 8 percent. However, city of Sacramento voters approved an additional half-cent tax hike that starts April 1, increasing their rate to 8.5 percent. Galt also will be at 8.5 percent.

Elsewhere, Placer, El Dorado and Yolo counties go from 7.25 percent to 7.5 percent, though several cities will have higher rates.

>When does the income tax hike start?

It already has, retroactive to Jan. 1 of this year. The Department of Finance expects most of the new 2012 revenue from top earners to come in April.

The three-tiered increase starts hiking taxes by 1 percentage point on income above $250,000 for individuals and $500,000 for joint filers. Their underpayment penalties are waived this year because of the late enactment.

>What happens at our local public school?

Impacts will differ district by district, but the school year will remain as scheduled.

Any future improvement is likely to be gradual as school officials wait to see how much more money they will receive as the economy recovers and new taxes flow.

For years, the state has delayed payments to K-12 districts and community colleges, forcing them to borrow against their own reserves or from outside lenders to pay their bills.

Brown wants to reverse that borrowing, which helps districts shore up their financing. But just like a consumer who focuses on paying off credit card debt, it means less money will be available for spending.

Education groups and parents are sure to clamor for more money for teachers, potentially adding school days back to the calendar, reinstating courses that had been eliminated or shrinking class sizes.

Also look for the governor to push hard for a new K-12 funding formula that gives extra money to urban districts serving low-income students and English learners.

The extent to which Brown and lawmakers allow school program growth remains to be seen, as it will be a balancing act against other state needs.

>What are those needs?

Advocates for low-income residents are already talking about providing dental coverage for adult Medi-Cal recipients, as well as podiatry services and incontinence creams, among other services. The state cut those benefits in 2009 in the face of a massive deficit.

"One of the things we've been pushing for is restorations to some of the most egregious cuts to Medi-Cal benefits," said Marty Omoto, an advocate for residents with disabilities.

Labor unions want to restore In-Home Supportive Services hours and pay – a 3.6 percent cut ends in June and Brown will find that difficult to extend. Democrats may also try to soften rules that cut benefits for welfare-to-work recipients after two years.

Universities are likely to seek more money, though tuition hikes are still expected at the University of California and California State University. Pérez has said he wants to revive his idea of providing scholarships for middle-class families.

Finally, counties were grateful that Proposition 30 locked in several billion dollars annually to pay for housing inmates and watching parolees previously overseen by the state, as well as a host of social service responsibilities.

© Copyright The Sacramento Bee. All rights reserved.

Via Sacramento Bee

Read more here: http://www.sacbee.com/2012/11/12/4978347/questions-and-answers-about-the.html#storylink=cpy

California Propositions: An Election Night roundup (KPCC Report)

By Julie Small | November 7th, 2012, 4:51am


The results for the 11 propositions on Tuesday's ballot reinforced one thing: California voters remain unpredictable. They softened the Three Strikes law, but kept the death penalty intact; our supposedly health-conscious denizens don't care to know if their food is genetically modified; and they voted for a tax hike, even as the state economy continues to struggle. Go figure.

Prop 30 — Temporary taxes to fund education: The Governor’s initiative rebounded after a precipitous drop late in the polls (54%-46%). The threat of $6 billion in cuts to public schools and universities was the motivation for a majority of voters. (For more, click here.)

Prop 31 —Establishes two-year state budget cycle: This cornucopia of government reforms fell flat with voters, who rejected it by a wide margin (60%-40%). While Californians consistently give state lawmakers low approval ratings, they were not convinced the proposed changes would make much of a difference.  Some politicos think the measure was too confusing for voters.

Prop 32 — Prohibits unions from using payroll-deducted funds for political purposes: A majority of voters disapproved of doing away with the ability of unions to raise money for political contributions (56%-44%).  While many Californians agree that unions hold too much sway over Sacramento, they disliked the idea of giving unions less sway than corporations.

Prop 33 — Auto insurance prices based on driver history: Voters resoundingly rejected the measure funded solely by the Chairman of Mercury General Insurance (55%-45%).  The proposal would have allowed insurance companies to offer discount to new customers who've maintained coverage.  But Consumer Watchdog countered that insurance companies would offset the savings to those drivers by merely increasing rates other drivers pay.

Prop 34 — Repeals death penalty and replaces it with life imprisonment without possibility of parole: Californians aren’t ready to give up the death penalty (53%-47%). Opponents of the measure argued that the state should maintain capital punishment for the most heinous criminals. That message resonated with voters despite a slow appeals process and legal challenges to the state’s methods that have delayed the execution of 3,100 inmates sentenced to death.  California’s has executed just 13 inmates since it reinstated capital punishment.

Prop 35 — Increases criminal penalties for human trafficking: The measure gained an early lead and maintained it through the night (81%-19%). The coalition of victims groups, prosecutors and politicians in support faced no formal opposition.

Prop 36 — Revises three strikes law: Californians overwhelmingly supported easing the Three Strikes law, which is the toughest in the nation (69%-31%).  Until now, anyone convicted of two serious or violent felonies could be sentenced to 25 years to life if they committed a third crime — even if that last crime was relatively minor. Now the third conviction would have to be violent or serious in nature.  The change allows 2,800 three-strikers to apply for a reduction of their sentences.

Prop 37 — Genetically engineered foods labeling: Voters sided with large agriculture companies who warned that forcing growers and food manufacturers to label all genetically modified foods would raise food prices (53%-47%).  Opponents spent $46 million to defeat the measure.  Supporters raised just $9 million, relying heavily on social media to reach voters.

Prop 38 — Tax for education. early childhood programs: The revenues from this sliding scale tax increase would have infused public schools with billions of dollars over more than a decade, but it proved less popular with voters than Prop 30 which raises income tax on just the wealthiest Californians (73%-27%).  The measure's main proponent and funder, civil rights attorney Molly Munger, conceded defeat early in the night.
Prop 39 — Business tax for energy funding: Voters overwhelmingly favored getting rid of a law that allows multi-state companies to choose the most favorable sales tax method (60%-40%).  Removing that option will generate an extra $1 billion annually for California.  That turned out to be a no-brainer for voters.  It also helped that no corporation chose to oppose the change.

Prop 40 — Redistricting, State Senate: Two years ago, voters approved new districts established through a bi-partisan citizen commission.  State Republican lawmakers had challenged the new political maps in court.  But after the California Supreme Court rejected the legal effort, Republicans withdrew their support for Prop 40, which ended up losing by a wide margin (72%-28%).

Drug Policy Alliance: VOTE YES on Prop. 36 tomorrow!

Vote YES on Prop. 36 tomorrow! Click here for your local county election office's contact info. Dear John, Tomorrow, your vote could reform the disastrous Three Strikes Law in California and bring us one step closer to ending severe penalties for people who use drugs. California has the harshest and least effective sentencing law in the country. Prop. 36 will reform the Three Strikes Law by ensuring no more people are sentenced to life in prison for minor and nonviolent drug law violations. The fate of this crucial initiative is now in your hands. And the fight is so close that every single vote matters. Vote YES on Prop. 36 tomorrow. If you don't know where to go to vote, click here for your local county election office's contact information. As a resident of California, you're in a unique position to bring an end to cruel, lifetime prison sentences for people who use drugs, and we need you to get out and vote. Vote YES on Prop. 36 tomorrow, and make sure your friends do too. Click here for info on where to vote. Three strikes reform will only happen in California if voters turn out in force tomorrow. Do whatever it takes to make sure you get to the polls and cast your ballot. Together, we can ensure less Californians are put behind bars for nonviolent drug law violations. Tomorrow, vote YES on Prop. 36!

The few wealthy individuals who bankroll most California propositions

Physicist and GOP activist Charles T. Munger Jr., seen in 2008, has spent $36 million on behalf of Proposition 32. That's about $1 million more than he's spent opposing Proposition 30, Gov. Jerry Brown's proposed tax hike. (Brian Baer / Sacramento Bee / Associated Press)

California voters have not been kind to wealthy people who spend millions of dollars trying to pass a ballot initiative. For every Rob Reiner and Stephen Bing, who combined their ample wallets to push through a cigarette tax in 1998, there are multiple more like T. Boone Pickens, whose natural-gas company spent millions in vain on an initiative to subsidize clean-energy vehicles and projects. Or like Bing, who flushed a boatload of cash in 2006 on an initiative to fund alternative energy by taxing oil wells.

Yet those with exceptionally deep pockets can't resist the temptation to try to impose their political will on the state.

This year, eight of the 11 measures on the ballot have drawn between 35% and 99% of their support from single individuals, according toMapLight, a nonprofit campaign-finance watchdog.

ENDORSEMENTS: The Times' recommendations for Nov. 6

The Nicolas Berggruen Institute Trust, a philanthropy funded by financier Nicolas Berggruen, has thrown more than $1.5 million behind Proposition 31, which would implement a number of reforms in the state budget process.

Physicist and GOP activist Charles T. Munger Jr. has spent$36 million on behalf of Proposition 32, a "clean campaigns" measure whose main effect would be to make it harder for unions to raise political war chests. That's about $1 million more than he's spent opposing Proposition 30, Gov. Jerry Brown's proposed tax hike.

Munger has also backed Proposition 40, a measure to uphold the state Senate districts drawn by a new citizens' commission, to the tune of $600,000. That's pocket change for Munger, but it's close to 100% of the money on the "yes" side of that initiative.

Mercury Insurance founder George Joseph has spent more than $16 million on Proposition 33, which would allow insurers to grant discounts to people who'd been insured by their competitors. It's his second attempt at a ballot measure to overturn part of 1988's Proposition 103, which barred insurers from charging drivers higher premiums solely because they weren't already uninsured.

Chris M. Kelly, a former executive at Facebook and unsuccessful candidate for California attorney general, has poured more than $2.3 million into Proposition 35, which would crack down on human trafficking.

Liberal financier George Soros has donated $1 million to support Proposition 36, which would limit how California's three-strikes law is applied to nonviolent felons.

Civil rights lawyer Molly Munger -- sister of the aforementioned Charles Munger -- has ponied up more than $44 million for Proposition 38, which would raise the state income tax to raise money for public schools and early childhood education.

Finally, financier and clean-energy advocate Thomas Steyer has provided more than $28 million for Proposition 39, which would eliminate a tax break for multi-state corporations to temporarily fund energy-efficiency projects.

The polls suggest that Propositions 36, 39 and 40 are on track to passing, but the others on this list have murkier prospects. For the record, those three have all been endorsedby The Times' editorial board, which opposes Propositions 32, 33, 35 and 38.

Via LA TIMES

Election quiz: How well do you know California's propositions?

Do you know the difference between the tax propositions, 30 and 38? (Illustrations by Max Kornell / For The Times / November 3, 2012)

Click here to take the quiz!