The hot story out of Sacramento today: Gov. Arnold Schwarzenegger wants to borrow money against future lotto sales to eliminate the deficit.

Here are some excerpts from the AP story by Juliet Williams that ran in our paper today:

The $144.3 billion budget plan for the fiscal year that begins in July is a byproduct of a slowing state economy. Tax revenue has been falling far short of what California needs to keep pace with spending, leading to a $15.2 billion shortfall.

The other $10 billion would remain in a reserve fund the governor wants to create to help the state get through rough financial times in the future.

Williams reports the proposal still requires voter approval come November.

If not....

...the governor would ask the Legislature to approve a temporary 1 cent increase in the state sales tax to pay for the reserve fund. It would last no more than three years.

Ugh, death amd taxes...you know the saying.

Posted by Tania Chatila at 10:16 AM | Permalink | Comments (1)

Mike Sprague reports that Whittier is facing a $1.8 million deficit.

WHITTIER - The days of easily balancing the city's budget are over, thanks to rising sales and property taxes.

Instead, City Manager Steve Helvey will go to the City Council during an 8 a.m. Saturday study session looking for ways to balance the fiscal 2008-09 budget.

While the overall budget of $99.7 million is balanced, the key general fund isn't. It has a projected deficit of about $1.8 million.

"On Saturday, we'll give a list of ways we can balance the budget," Assistant City Manager Nancy Mendez said. "There's eight to 10 different ways to balance the budget."

Posted by Jennifer McLain at 10:14 AM | Permalink | Comments (0)

CSU fee hikes approved, the Associated Press reports

CSU committee approves 10 percent tuition hike Associated Press Last Updated 11:02 am PDT Wednesday, May 14, 2008

LONG BEACH -- The cost of attending a California State University campus is likely to go up again in the fall.

A committee of the CSU Board of Trustees on Wednesday authorized raising yearly undergraduate tuition by $276, or 10 percent. The increase means that undergraduates will pay an average of $3,797 next year, twice as much as what a CSU school cost in fall 2000.

The 23-campus system is under orders from Gov. Arnold Schwarzenegger to reduce campus spending to help make up a statewide budget deficit. Several trustees said they had to ask students and their families to shoulder some of the burden.

The proposal approved by the Board of Trustees' finance committee is scheduled to be considered by the 23-campus system's full board late Wednesday

Posted by Jennifer McLain at 11:08 AM | Permalink | Comments (1)

Are you serious? The man who Mayor Antiono Villaraigosa wants to nominate as the finance director is requesting a $290,000 salary, which is $70,000 more than the outgoing CAO is getting. The increase comes at a time when the city is dealing with a $406 million budget shortfall, the Daily News reports.

It's amazing to me that as we all deal with a crappy enonomy and many of us can barely finagle a minimal cost of living adjustment that our governmental officials are generously giving themselves raises on our dime.

Mayor Antonio Villaraigosa's nominee to oversee Los Angeles' finances is facing growing opposition from the City Council over his lobbyist connections and his request for a $290,000 salary - far higher than the pay of the current city administrative officer.

The mayor nominated his former chief deputy, Marcus Allen, in March and since then Allen has been meeting with council members to lay out his plans for the post and discuss his salary request, which is $70,000 more than the salary of outgoing CAO Karen Sisson.

The pay request comes even as the city faces a $406 million budget shortfall and would make Allen the fourth-highest-paid official in the city - making even more than the mayor.

The mayor also has the option to give general managers a 5 percent merit bonus that could boost Allen's pay to $305,000 a year.

Posted by Jennifer McLain at 10:20 AM | Permalink | Comments (0)

Sen. Jack Scott, D-Pasadena, has a new $200,000 gig lined up once he terms out of office by the end of the year, the Associated Press reports.

SACRAMENTO -- State Sen. Jack Scott of Pasadena has been named the next chancellor of California's community colleges.
The Board of Governors for the 109-campus system voted unanimously for Scott on Thursday.

Scott, a Democrat and former teacher, is chairman of the Senate Education Committee. Before he was elected, he served as president of Pasadena City College for nearly a decade. The 74-year-old will be termed out of office at the end of the year. He says he is thrilled to take on the new role, where he will continue to push for more funding for education.

The chancellor's position pays nearly $200,000 a year and includes a state-paid car. Scott replaces interim Chancellor Diane Woodruff.

Posted by Jennifer McLain at 2:59 PM | Permalink | Comments (0)

The city of Vallejo is going to declare bankruptcy, the Associated Press reports. The city's horrible financial woes are due to generous pensions and salaries given to the firefighters and police officers. Those funds make up between 75 and 80 percent of the city's general fund.

It's a little scary knowing that cities could actually declare bankruptcy. The story states that immediate impacts that residents will see are that potholes won't be filled or that more detectives won't be added to the force. Yeah, like that's the worst it. I wonder what the long term effects will be on the city and its residents.

Here's part of the story:

Vallejo is set to become the largest California city to declare bankruptcy after leaders voted in favor of the solution to its spiraling budget crisis.

The city council voted unanimously Tuesday night following hours of public comment and months of failed negotiations with police, fire and other unions.

City Manager Joseph Tanner and the city's finance director had advised filing for bankruptcy before its fiscal year ends on June 30 because Vallejo faces a projected budget deficit of $16 million and has no money in its reserves.

The San Francisco suburb of 117,000 people also is expected to generate $5 million less in revenue than projected because retail sales and property values are down amid an economic slowdown and slumping real estate market, according to a report issued by Tanner.

Many officials and residents attribute Vallejo's fiscal troubles to overly generous pay and benefits to the city's police and firefighters. The salaries for police and firefighters currently take up 75 to 80 percent of the city's general fund.

Read more

Posted by Jennifer McLain at 2:36 PM | Permalink | Comments (1)

What every city council should be focusing its time on: Roosters. The Los Angeles City Council is taking on the issue of limiting one rooster per property because the birds are noisy, dirty and used in animal fights, City News Service reports.

Los Angeles Seeks Limits on Roosters

By ALICE WALTON

City News Service

LOS ANGELES - Concerned that roosters are noisy, dirty and often used in animal fights, the Los Angeles City Council today discussed a plan to restrict ownership of the birds to one per property.

The city's Animal Cruelty Task Force was instructed to report back in 30 days on the
ramifications of limiting possession of roosters, but not chickens.

Neighbors complain that roosters can be noisy and create sanitation issues, and Animal
Services officials warn that in many cases, roosters are used for cock-fighting.

"Animal Services has told me they receive 50 complaints a day about roosters," said City
Councilwoman Janice Hahn.

I wonder how the number of complaint calls compare to, say, graffiti.

Posted by Jennifer McLain at 2:13 PM | Permalink | Comments (1)

As you may have noticed, there have been more stories and blog entries about water agencies, water officials and water issues. That’s because I am now assigned to the water beat.

The stories that I would like to focus on are those of malfeasance. There are about 45 public water agencies in the San Gabriel Valley and Whittier areas, and about half of them have elected water officials. As we’ve seen from Dolores Holguin, Xavier Alvarez and Albert Robles,* elected water officials certainly have their share of legal troubles.

And these people are responsible for making decisions that affect nearly 2 million people, and are running budgets that are larger than those of many cities.

But there is more to water – just like in government — than corruption. Gasp. So, the Tribune will also be running stories covering the water crisis we are in now.

So far, it hasn't been easy learning about water. The learning curve is extremely high. Last weekend, I went on a trip to a Metropolitan Water District of Southern California trip to the Colorado River Aqueduct with a bus full of people invited by director John Morris, who represents the small and affluent community of San Marino. San Marino is one of 26 member agencies of the MWD, and was part of the original 11 when the district formed in 1926.

During the two-day trip, we stopped at several reservoirs, dams and pumping stations. What I found amazing was that the technology in the 1930s and 1940s was enough to provide water to millions of residents, even until today.

During the trip, I asked everyone dozens of questions about water, the challenges of water, how we get our water and how we should prepare for future water problems. For each answer, I felt as though I had five more questions. The complexity of the water industry is one of the reasons that no one pays attention – including the media – to water. As one director put it, “People go the faucet, water comes out, so the public doesn’t think there is a problem.”

As the water industry deals with increasing environmental pressures, that means that we will pay for it. That’s not just on our water bills. But just as it took a nearly $220 million bond measure approved by voters during the Depression, building new canals or developing new technology is going to come with a price to tax payers.

What I’m hoping is that within the next six months, my stories on water will expose corruption, tell the story on water, and make it easier to understand how water works. That way, when we’re asked to pay for new water projects, we’ll know what the issues are.

*Dolores Holguin is a former Valley County Water Director who is being investigated for misusing public funds. Valley County is out of Baldwin Park. Xavier Alvarez is a Three Valleys Municipal Water District director who is being investigated for lying about having received the Medal of Honor. There are also charges now that he lied about still being married to his wife, who has been receiving health benefits. Albert Robles, a director at the Water Replenishment District, is facing misdemeanor charges for allegedly distributing illegal mailers.

Posted by Jennifer McLain at 1:41 PM | Permalink | Comments (2)

Can you imagine paying $20 a beer at a Dodger's game? As if they aren't expensive enough. Well, if a San Jose lawmaker gets the hike he wants on the beer tax, those baseball games -- and any other beer purchase -- just got a whole lot more expensive.

Lawmaker seeks to raise beer tax
By Mike Zapler, Sacramento Bureau
Article Launched: 04/10/2008 11:34:34 PM PDT

Joe Sixpack will have to pay a lot more to get his buzz on if Assemblyman Jim Beall has his way.

The San Jose Democrat on Thursday proposed raising the beer tax by $1.80 per six-pack, or 30 cents per can or bottle. The current tax is 2 cents per can. That's an increase of about 1,400 percent.

Beall said the tax would generate $2 billion a year to fund health care services, crime prevention and programs to prevent underage drinking and addiction.

"The people who use alcohol should pay for part of the cost to society, just like we've accepted that concept with tobacco," Beall said.

He added that the beer tax hasn't been touched since 1991, and the increase then was meager.

*********

Dan Gordon, co-founder of Gordon Biersch Brewing Company, calculated that the tax on a barrel of beer would go from $6.40 to $89. "We would all be looking for jobs," he said.

Posted by Jennifer McLain at 8:22 AM | Permalink | Comments (0)

Crazy story about water board member Albert Robles who is facing criminal charges yet he has decided to challenge District Attorney Steve Cooley for his job, Whittier Staff Writer Airan Scruby reports.

Albert Robles, director on the Water Replenishment District Board, is charged with four misdemeanor counts and appeared in Downey court Tuesday.

Robles, 39, said he is running for district attorney despite the charges because he did not believe anyone would run against Cooley, and he felt voters should have another option on June 3.

"Steve Cooley is the worst district attorney in the history of the county," Robles said. "I was just hoping to present myself as an alternative."

At least one reader so far claims that Cooley is a "bully:"

Cooley and his inner circle knew over a year ago that Albert Robles was preparing to run against Cooley, that's why they filed three misdemeanor charges against him. Why? Could it be that they are afraid of a run-off or they are just bullies?

C'mon Cooley don't be a bully, why do you abuse your power and betray the trust of all the democrats who voted for you?

Im voting for STEVE IPSEN - all should do the same.

BTW: WRD director Albert Robles should not be confused with former South Gate mayor councilman, treasurer and deputy city manager Albert T. Robles, who in 2005 was convicted of plundering more than $20 million from the city. In November 2006, he was sentenced to 10 years in federal prison. 

Posted by Jennifer McLain at 4:17 PM | Permalink | Comments (6)

Assemblyman Mike Eng, D-Monterey Park, will be hosting a community town hall meeting from 6 p.m. to 8 p.m. on Thursday at Alhambra City Hall to talk about the state's $8 billion budget deficit and its possible effects on the 49th Assembly District.

Posted by Jennifer McLain at 7:26 AM | Permalink | Comments (1)

"More Americans would rather have cheaper gas than a cure for cancer."

I just heard that on Channel 2, and sure enough, here's a Reuters story about a survey of 700 people -- Yeah, because 700 people is fair sampling of Americans -- that suggests that Americans would prefer more money be invested to solve the nations energy crisis than to cure cancer.

NEW YORK (Reuters) - A nationwide survey of nearly 700 people suggests that Americans would prefer more money be invested in technology to solve the nation's energy ailments than to cure cancer or other diseases.

Some 37 percent of respondents to the poll, conducted by the Fairfax County Economic Development Authority in Virginia, said they would rank spending to raise energy efficiency and develop alternative fuel technology a top priority for future investment. That compares with 30 percent who ranked more cash for medical breakthroughs as most important.

"I think it's a combination of things like high gas prices and the need for alternative fuels, but also things that are emotional like greenhouse effects, global warming and the need for reducing carbon emissions," said Gerald Gordon, chief executive of the FCEDA. Read more.

Posted by Jennifer McLain at 7:00 PM | Permalink | Comments (0)

Are you preprared to pay more at the pump, only this time in the name of global warming? One reader pointed this story out to me today, and I'm thinking it's because he doesn't want to see yet another increase at the pumps.

The Los Angeles Times reported yesterday that a bill could require Los Angeles County drivers to pay an extra 9 cents per gallon at the pump, or an additional $90 on vehicle registration.

SACRAMENTO -- -- Motorists in Los Angeles County could end up paying an extra 9 cents per gallon at the gas pump, or an additional $90 on their vehicle registration, under proposals aimed at getting them to help fight global warming.

Voters would be able to decide whether to approve a "climate change mitigation and adaptation fee" under legislation being considered by state lawmakers and endorsed by the board of the Los Angeles County Metropolitan Transportation Authority.

The money would fund improvements to mass transit and programs to relieve traffic congestion at a time when transportation dollars from Washington and Sacramento are hard to come by.

"At this point the people of the Los Angeles region have just had it when it comes to traffic and air quality," said Assemblyman Mike Feuer (D-Los Angeles), author of the legislation, AB2558.

The additional funding would be used to fight global warming. Or so they say.

But opponents already are rallying against the measure, saying it exploits public concern about climate change to tap taxpayers for the MTA's regular services: providing bus and rail lines.

"This seems to be a cashing in on public sympathies on global warming to generate additional funding for programs that already exist," said Jon Coupal, president of the Howard Jarvis Taxpayers Assn.

Posted by Jennifer McLain at 5:49 PM | Permalink | Comments (0)

This reminds me. I still have to do my taxes. Ugh. For those business owners that haven't filed their taxes, here's a bill that could impact you:

A bill proposed by Assemblyman Mike Eng (D-Monterey Park) that would help collect $1.4 billion in outstanding taxes was passed today by the Assembly Business and Professions Committee. AB 1925 authorizes the Franchise Tax Board (FTB) to suspend the licenses of professionals approved to practice by the California Department of Consumer Affairs.

Current data indicates that there are over 25,000 delinquent taxpayers that possess an occupational or professional license. California loses approximately $1.4 billion annually as a result of uncollected tax liabilities that apply to professional and occupational licensees.

Posted by Jennifer McLain at 11:23 AM | Permalink | Comments (3)

Dan Abendschein reports that sample ballots for a Covina city measure that would renew the city's $5.5 million user's tax - which was previously voted against - will be missing opposition arguments. Covina claims that it rejected the argument because it was filed late.

[City Clerk Amy] Turner did get a copy of the argument from the county Tuesday, one day after the deadline. She said that she consulted the city attorney about including the argument on the ballot.

"He told me that I had to follow the boundaries set by the City Council, so my hands are tied," said Turner.

Opponents said that the city did not tell them how to correctly file the arguments.

Paul Drugan, of the Registrar-Recorder/County Clerk's office, told [Steve Millard, an anti-tax activist who opposes the measure] that the county schedule would have required him to turn in the argument to Covina by 11 a.m. March 17. Turner's instructions to Millard said he had until the end of the day to turn in the argument.

"If it were time-stamped for any time past 11:00, it would not have been valid," said Drugan. Turner said the schedule she received from the county did not have a time of day listed on it.

This story ran alongside the city's announcement that it would be laying off 99 employees, which will come with nearly $1 million in severance packages and paid leave. Considering the layoffs, I could understand why the city needs the utility tax so badly. But what about the "spirit of the law?" If a group opposing the measure missed the deadline by one day, do you think they should be allowed to get their opposition on the sample ballot or should they get over it and realize that they missed their chance?

To view the opposition, click here.

Posted by Jennifer McLain at 1:51 PM | Permalink | Comments (1)

Assemblyman Mike Eng, D-Monterey Park, is proposing legilsation that could result in cost savings by reducing reliance on IT contractors, the Sacramento Bee reported today.

Union decries increasing number of outsourced IT contracts for state of California By Aurelio Rojas - arojas@sacbee.com Last Updated 12:23 am PDT Wednesday, March 12, 2008 Story appeared in MAIN NEWS section, Page A3

The number of information technology contracts awarded by the state of California has tripled since 2003, and the state could save up to $100 million annually by reducing its reliance on contractors, according to a new union study.

The report, titled "Too Many, Too Costly, Too Little Oversight," was compiled by the Service Employees International Union in preparation for a hearing today in the Legislature and based on information provided by the Department of General Services.

SEIU represents 7,800 state IT employees, 80 percent of whom work in the Sacramento region. The union is sponsoring AB 2603 by Assemblyman Mike Eng, D-Monterey Park, that would require state departments to report IT contract expenditures so that they could be compared to the cost of state employees doing the work.

According to a 2006 report by the independent California Research Bureau, outsourcing IT work cost 50 percent more than doing the work in-house.

"At a time when we have so many budget issues and a ($8 billion) budget deficit, it's very important that we pursue any avenues in which might save money," said Eng, who will chair today's joint hearing of the Assembly Committee on Business & Profession and Public Employees, Retirement & Social Security.

Posted by Jennifer McLain at 12:00 AM | Permalink | Comments (1)

Posted by Jennifer McLain at 12:01 AM | Permalink | Comments (1)

The Los Angeles Times today reported that there is a proposed rate increase by the Metropolitan Water District. Why should you care? Because if you live in one of the cities represented by the 26 districts that are part of the MWD, than that means more money out of your pocket. The increase is proposed at 14.3 percent, but Water Replinishment District of Southern California Director Willard Murray is suggesting that cost go up to 20 percent.

MWD board to vote on rate hike

By Deborah Schoch, Los Angeles Times Staff Writer

March 11, 2008

Some Southern California households would pay up to 14% more per month for water in 2009 under a plan unanimously approved Monday by a key regional water panel.

The water rate increase, driven by shortages in supplies, would vary widely depending on how much water cities and local water agencies buy from the MWD, which serves 18 million consumers in six counties.

The controversial rate hike goes before the entire Metropolitan Water District board today, with some members saying an even larger increase might be needed.

Although the 14.3% increase unanimously passed the MWD's budget committee Monday, some members voiced concern that the hike does not cover the full cost of bringing water to the region and will force them to take $117 million from shrinking reserves. Rates would have to go up 20% next year to cover expenses, said Brian G. Thomas, the agency's chief financial officer.

Board member Willard H. Murray Jr. said he plans to propose a 20% increase when the full 37-member board meets at noon today at MWD headquarters in Los Angeles.

"We should collect enough to pay for the services we provide," said Murray, who represents the Carson-based West Basin Municipal Water District. He failed in a Monday motion to force a vote on a 20% increase. Read more

Posted by Jennifer McLain at 4:00 PM | Permalink | Comments (2)

The Sacramento Bee posted the economic interest forms for all statewide elected officials. Among them are Sen. Ron Calderon, D-Montebello, who received nearly $1,000 worth of golf trips, $264 in Disneyland tickets and a $1,700 trip to Taiwan; Assemblyman Bob Huff, R-Diamond Bar, who received a nearly $3,000 trip to France; and Sen. Jack Scott, D-Altadena, reported receiving $264 worth of Disneyland tickets, Rose Bowl parade and game tickets, totalling $390, and a three month gym membership at Capitol Athletic Club totalling $285. By the way, I also learned in reviewing these statements that Scott is a part-time minister at the Sierra Madre Church of Christ.

Have fun looking these over!

Posted by Jennifer McLain at 11:26 PM | Permalink | Comments (0)

The Sacramento Bee looks at California state workers and their recent salary increases over the past several years.

Four years ago, barely three dozen California state workers earned a base salary of more than $200,000. Today, as the state faces a fiscal crisis, close to 1,000 state workers make that much.

***********

In fact, four of the top five highest-paid workers in the state worked for the University of California as of 2007, though two of them have since moved on. When the UC is included in the analysis of state government employees, California's highest-salaried worker is Mark Laret, chief executive officer at UC San Francisco Medical Center. Laret earns a base salary of $566,838.

However, when gross UC salaries including bonuses and other compensation – not available to compare all state workers – were included, several UC doctors actually earned over $1 million last year. And Cal football coach Jeff Tedford came out on top, grossing about $2.7 million.

Posted by Jennifer McLain at 3:26 PM | Permalink | Comments (0)