By Andrew Edwards
Staff Writer

SAN BERNARDINO -- Rev. Patrick S. Guillen pushed a school bus "off a cliff" on Thursday.

So did Moises Escalante. And they weren't the only ones.

"Today we are gathered here together to say the governor is driving California off a cliff," said Guillen, who is also executive director of Libreria del Pueblo, which teaches English language and citizenship courses.

The figurative bus of state was represented not only by words but toy plastic school busses that Guillen, Escalante and others pushed from tables set up outside City Hall.

About a dozen others, including children, stood joined Guillen and Escalante in protesting California's budget deadlock. The protesters, organized by the left-leaning California Partnership, called for increased taxes on oil companies and tobacco to offset potential budget cuts to social services.

"Isn't that just common sense, that we tax the big corporations? Not only for good health, but to give life to others," Escalante asked.

Protester Victoria Pelayo of San Bernardino said while others gathered that she stands to lose $1,400 in In-Home Health Services payments that she needs to care for her bed-ridden sister-in-law.

"How come (Gov.) Arnold (Schwarzenegger) isn't taxing from the rich and giving to the poor? That's what he should be doing," Pelayo said.

Conservatives would likely disagree with the California Partnership's policy choices, but there's probably no disputing that the state is in extreme financial trouble. The state Controller is expected to start issuing interest-bearing IOUs for some state obligations Tuesday.

A ground-breaking for the Speicher Skate Park is scheduled to be held Saturday.

Sun colleague Debbie Pfeiffer-Trunell informs me that the park is being built with built with $500,000 in Community Development Block Grant funds, $100,000 in donations from the San Manuel Band of Mission Indians and $98,000 in funding directed from Third District Supervisor Neil Derry.

The bill for the event advertises pro skaters are scheduled to be in attendance. The event is scheduled to begin at 9 a.m. Saturday at Speicher Memorial Park, 1535 North Arden Street.

The Los Angeles Times has an interactive feature that gives readers a chance to fill a $24 billion deficit for California government.

The billions can be saved, or generated, only by cutting popular programs like K-14 education or big, fat tax increases. In other words, there's no way it can be done without making a lot of people angry.

City Manager Charles McNeely writes in an email that a credit agreement between City Hall and the San Bernardino Economic Development Agency has not yet been drawn up.

"No, an agreement has not been drawn up at this point. Staff recommendation was to move forward with the adoption of the budget and finalize the terms of the agreement between the City and EDA during the next few weeks," McNeely wrote. "At this point I am told that it will take several weeks to complete this before it is presented to the City Council after which I am hoping we can move forward with the budget adoption."

The EDA is officially separate from the city and has its own budget. McNeely has proposed that the city balance its budget by borrowing up to $5.4 million from the EDA. City Attorney James F. Penman said during a budget workshop Monday that his office needs more time to review the credit proposals to determine if it conforms with California law. The council did not adopt the budget Monday, postponing that decision to an undetermined date later this month.

In a memo written to the the Mayor and CIty Council dated June 26, McNeely wrote that he expected to draw $2.4 million that would be repaid this year and that the credit agreement would include options for two one-year extensions.

Penman has said one of his concerns is that the extensions could be contrary to state law requiring the money to be repaid in a single year. He has also said that he has not seen any tentative agreement between the EDA and City Hall for a line of credit and first learned of details regarding the proposal morning of Monday's budget meeting.

The City Council did not approve a budget Monday, but did OK a funding shift designed to keep two city swimming pools open for the summer, which has already gotten pretty hot.

The council shifted $25,000 from the Mayor's Office that had been set aside to support a preschool program to Parks, Recreation and Community Services to run the pools.

I stopped by the Gottschalks store at Inland Center this morning to see if it was still around. It's not.

The store is completely clear of inventory. Where there were still discounted coats and jeans a week a ago, there are empty storefronts.

Gottschalks liquidation leaves Inland Center with two vacant anchor stores. Mervyn's was scheduled to fill one of those vacancies last year but that chain went kaput before it could set up shop in the mall.

By Andrew Edwards
Staff Writer
SAN BERNARDINO -- The City Council chose to wait until approving its budget for the coming fiscal year after the City Attorney questioned the legality of some aspects of current proposals.

The council voted unanimously Monday night to adopt a continuing resolution that maintains spending city business for July at levels provided for in the city's current budget.
The city's next fiscal year begins Wednesday.

City Attorney James F. Penman said during a budget workshop Monday that his office needs time to review whether proposals that include the borrowing of money from the San Bernardino Economic Development Agency comply with state law.

Monday's budget workshop was the first time Penman raised these concerns in a public forum. City Manager Charles McNeely introduced the preliminary budget and proposal to borrow $5.4 million from the EDA during a June 4 public meeting. The council has met a total of four times, including Monday, to discuss the budget.

But Penman said that information his office received Thursday and Monday have convinced him that San Bernardino's legal team needs more time to examine budget proposals.

McNeely said after the meeting that Monday was the first time he learned that Penman had legal questions regarding the budget. McNeely also said he did not see the proposals as being out of the ordinary realm of city finances.

During Monday's meeting, Penman said a news report regarding the anti-tax Howard Jarvis Taxpayers Association gives city officials a reason to be cautious.

The foundation is looking for a plaintiff in Redlands who would be interested in challenging that city's recent budget tactics. Redlands' council recently accepted a plan that would have the effect of directing residents' water and sewer payments to Redlands' general fund instead of its utilities.

Penman also allowed the possibility that EDA funds may not have always been used properly in years past.

"If you're asking me, have we broken the law? Perhaps," Penman said.

Seventh Ward Councilwoman Wendy McCammack, who joined Penman in questioning the budget plan, said Monday's meeting was the first time council members were given time to raise substantive issues.

There was additional controversy Monday night when several representatives of San Bernardino towing companies and other business community representatives rose to speak against a proposal to create a city operated tow yard.

San Bernardino officials do not yet have a business plan for a city-operated tow yard, but project that the city could take in about $680,000 in net revenues if a yard opens Jan. 1, 2010. Police Chief Keith Kilmer also said that a city-run yard would allow police to control cars that are being stored as evidence.

But opponents said creating a city-run yard would steal business from the city's six tow companies, which pay a franchise fee to the city.

"Are we saying we have a zero tolerance policy, we're just going to go out and impound cars to balance the holes in the budget," one speaker asked?

San Bernardino's preliminary budget, which could be approved at an unspecified date in July, sets aside more than $142.7 million in general fund spending over the next 12 months.

San Bernardino's annual Independence Day parade is scheduled to begin at 5 p.m. Saturday at Feldheym Library. The parade route is set to end at the crossing of Second and E Streets.

A fireworks show is scheduled to be held after the conclusion of the Inland Empire 66ers game versus the Lancaster JetHawks. The game is scheduled to begin at 7:05 pm. Saturday and ticket prices start at $5.

The San Bernardino Bicentennial Committee is accepting donations for festivities planned for 2010.

Donors can make out checks to the City of San Bernardino and write "Bicentennial Committee" on the memo line. Donations are tax deductible, according to the city's Web site.

Checks can be mailed to the following address:

San Bernardino Bicentennial Committee
San Bernardino City Hall
Office of the Mayor
300 N. D Street, 6th Floor
San Bernardino, CA 92418

Those who want to donate can also use their credit cards to give money on the city's Web site.

Mayor Pat Morris is set to throw the first pitch Sunday night before the Inland Empire 66ers game versus the Rancho Cucamonga Quakes.

Suspended Los Angeles Dodgers power hitter is expected to don the 66ers' uniform as he prepares to return to Major League play. Ramirez was suspended for violating the League's ban on performance enhancing substances.

Mayoral chief of staff Jim Morris said the mayor will be on the hill for the ceremonial pitch and threw also the first pitch for the 66ers first home game at Arrowhead Credit Union Park this season.

Recent news that Ramirez played for the the Dodgers Class AAA affiliate the Albuquerque Isotopes helped fuel speculation that the controversial slugger would make a stop in Berdoo.

MLB.com reporter David Ely posted news at 5:46 p.m. Friday that Ramirez is set to play for the 66ers on Saturday in the team's road game against the Lake Elsinore Storm and then suit up for the 66ers three-game series against the Quakes.

The 66ers' management is evidently anticipating a big turnout for Sunday's game. The parking lot is scheduled to open at 2 p.m. Sunday, and game time is not set until 6:05 p.m.

By Andrew Edwards
Staff Writer

]A bill that would require radio broadcasters to pay royalties to recording artists is being called a move toward fair play by its supporters and an unwelcome "tax" by its opponents within the broadcasting industry.

Radio stations across the United States must already pay royalties to those who hold composers' rights to songs, but are not obligated to pay a performance right to musicians whose sounds are broadcast across the airwaves. A pending bill called the Perfomance Rights Act would require broadcasters to pay both songwriters and performers.

Debate over the bill centers around whether yesteryear's musicians are missing out on deserved earnings, whether broadcasters can afford to pay additional royalties.

There's also the question of who makes money off of who. Do radio stations attract listeners -- and thus advertisers -- by being able to play songs without having to pay for musicians' labor or do performers and record labels get a break from broadcasters whose playlists essentially serve as free advertising for recordings?

Jeff Parke, general manager for oldies station KOLA 99.9 FM and hard rock station KCAL 96.7 FM,says its the latter and that the bill would be disastrous for broadcasters.

Parke anticipates that if stations had to pay another set of bills to clear performance rights, music stations would either have to forego local content in favor of programming from syndicators who would pay for the right to broadcast songs, or just give up on music.

"You're going to see a lot more news talk, sports talk," he said. "It's just going to destroy the idea of music radio.

The bill would also create a burden for news stations, said Dennis Baxter, general manager of KCAA 1050 AM. Baxter said the station would face the burden of paying for the "bumper music" that plays between talk segments.

Baxter is also a San Bernardino city councilman.

Parke said KOLA and KCAL combined pay about $500,000 to clear songwriters' rights. He said he was not able to disclose the stations' revenues, but his biggest expenses are payroll and songwriters' clearances, and that he's laid off a dozen employees to stay afloat.

He said that if musicians are not getting a fair deal for their recordings, that's a problem to be solved among artists, composers and record labels.

But proponents of the bill organized as the Music First Coalition argue that radio stations are trying to avoid the very payments that satellite and Internet radio providers are required to make.
Music First spokesman Martin Machowsky said the bill does not set the amount of royalties that stations would have to pay, but that the money would be divided between rights holders and performers.

"Some of the money goes to the folks who do the drum solos and guitar solos that you recall," he said.

Machowsky said the legislation would not require major payments on the part of about three quarters of American radio stations.

The bill provides stations earning less than $1.25 million per year would only have to pay a $5,000 fee to clear rights and public, educational and religious stations would pay $1,000.

Music First's spokesman also said proponents believe that radio stations often stick to a well-known mix of hit songs, which limits the promotional value of free radio airplay.

Support and opposition to the bill crosses party lines. The House version of the bill passed the Judiciary Committee in May.

Sixth Ward City Councilman Rikke Van Johnson and Police Chief Keith Kilmer are scheduled to meet the public at a town hall meeting scheduled for Thursday.

San Bernardino Employment and Training Agency staffers are also set to be on hand to share information on youth job opportunities for the summer.

The meeting is scheduled to begin at 6:30 p.m. Thursday at Inghram Community Center, 2050 North Mount Vernon Avenue.

The budget hearing that was scheduled to be held Wednesday has been postponed.

Councilwoman Esther Estrada said the meeting is now set to be held June 29.

"I guess we're still looking for money, and the more time we have is more time to look," Estrada.