politics

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They may not play nice

Byuclafaculty

Competition from rival tax measures on the ballot may sink the governor’s Prop 30 which the Regents have endorsed.  In particular, there is concern about Prop 38 – the Munger tax for schools.  Excerpt today from an LA Times blog: …Sens. Dianne Feinstein and Barbara Boxer sent a letter to the head of the California State PTA, the sponsor of Proposition 38, imploring them to stop what they call “personal attacks against Gov. Jerry Brown” that they fear could sink the governor’s tax measure, Proposition 30. Proposition 38, which has been financed by wealthy Pasadena attorney Molly Munger, seeks to…

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Prop 30 Campaign Officially Starts

Byuclafaculty

Governor Brown kicked off the official campaign for his tax initiative – Prop 30 – which, as readers of this blog will know – was endorsed by the Regents. Early polling has shown a bare majority of voters favor it (and the other two tax initiatives on the November ballot are polling poorly).  It is unclear how much funding the opposition to Prop 30 will be able to raise for a negative campaign.  However, Prop 38 – the “Munger tax” initiative which is focused on schools – does have money behind it and its campaign will push the argument that…

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Follow Up on Close-Loophole-for-Tuition-Cut Bill

Byuclafaculty

Yesterday, we noted the passage in the state assembly of a bill that closed a corporate tax loophole and used the money for higher ed tuition cuts.  The bill required a 2/3 vote and squeezed by with one independent vote (a former Republican who quit the party) and one from a renegade Republican – Brian Nestande – who deviated from the party line. The renegade – depending on which story you read – either stepped down from chairing the Republican caucus in the assembly or was forced out. The stepped-down version is athttp://www.sacbee.com/2012/08/15/4726584/california-republican-leader-gives.html The forced-out version is athttp://www.camajorityreport.com/index.php?module=articles&func=display&ptid=9&aid=4877 It probably…

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And in the State Senate?

Byuclafaculty

From the Sacramento Bee‘s Capitol Alert blog last night: By a razor-thin margin, the California Assembly passed legislation today to raise a billion dollars annually for middle-class college scholarships by altering tax law for numerous out–of-state corporations. The measure, Assembly Bill 1500, passed 54-24, the bare-minimum two-thirds vote needed for tax or fee increases. Democrats supported the measure, as did Republicans Brian Nestande of Palm Desertand Independent Nathan Fletcher of San Diego Assembly Speaker John A. Perez proposed the bill as a companion to his separate legislation, Assembly Bill 1501, which would spend the billion dollars raised to assist college and university students whose families earn less than $150,000 per year……

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The Legislature is Watching

Byuclafaculty

From the publication “Supplemental Report of the 2012-13 Budget Package” put out by the Legislative Analyst’s Office (LAO): Item 6440‑001‑0001—University of California (UC) Audit Report. It is the intent of the Legislature, and in follow‑up to State Audit Report 2010‑105, that by July 31, 2012, UC provide to the appropriate legislative budget subcommittees and LAO the recommendations of the systemwide working group established to examine variation in funding across the system.  Further, it is the intent of the Legislature that UC identify the amount of revenues from the general funds and tuition budget that each campus received in 2012‑13 for…

The Golden State of Electoral Affairs

Byuclafaculty

As readers of this blog will know, there will be all kinds of exciting propositions on the state ballot this coming November, including the governor’s tax initiative that the Regents have endorsed. Since this is a sleepy weekend with not much happening UC-wise, here is a little lesson in direct democracy. Apart from the various tax and other initiatives, there is a referendum, Prop 40. A referendum is a proposition which – like an initiative – is put on the ballot via a petition. But while an initiative creates legislation or a constitutional amendment, a referendum repeals legislation that has…

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Talk to the Legislature

Byuclafaculty

If UCOP wants to keep its Regents-enacted pension system modifications from being overridden by some statewide legislative action, it will have to talk with the legislative leaders – very, very soon it appears – and not just the governor.  From the San Jose Mercury-News: Senate President Pro Tem Darrell Steinberg said Monday that legislative Democrats will deliver on “comprehensive” pension reform over the next four weeks, even if their labor allies don’t like it. “Will it cause some discomfort and unhappiness? Yes. Do you sometimes disagree with your allies and friends to do what you think is the right thing?…

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Legislative Agenda

Byuclafaculty

From the San Francisco Chronicle: After a monthlong break, the Legislature returns to work at the Capitol on Monday to take on one of the Golden State’s thorniest issues:public employee pensions. The Senate and Assembly have just four weeks to vote on hundreds of bills before the two-year session concludes at the end of the month, but the main focus will be on changing the pension compensation system. Just what those changes will entail is unclear. Gov. Jerry Brown has proposed increasing the retirement age and creating a hybrid system that includes a 401(k)-style benefit, among other things, but lawmakers have yet to approve those or anything else. Legislative leaders…

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Can’t Help: Part II

Byuclafaculty

Yesterday’s posting noted the scandal of undetected state park funds and the negative impact that affair could have on the likelihood that the governor’s tax initiative on the November ballot will be approved by voters.  In fact, any news item that suggests misspending of state funds is likely to have a negative effect.  Today’s Sacramento Bee carries a story related to the rebuilding of the Bay Bridge.  It was found that a Caltrans employee – since departed – had faked certain safety test data.  There were assurances that everything was OK nonetheless and it was just one bad apple. Turns…

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Can’t help

Byuclafaculty

You may have noticed various headlines about hidden funds the state was holding for parks. Usually, when we talk about the state budget, we are referring to the general fund which is the operating budget for the state.  However, many other funds have been created for specialized purposes.  Some have earmarked taxes that feed them, e.g., the gasoline tax for transportation. Transportation is the biggest area of such non-general fund budgets.  But there are many other funds – some containing a few thousand dollars. When the general fund gets into trouble, the state borrows from the other funds. It puts…