Wednesday, October 31, 2012

For Governor Jerry Brown So Loved Public Education ...


For Governor Jerry Brown so loved public education, he sought to eliminate California's 2nd-year science requirement to save money.  This came soon after California's 8th graders ranked near the bottom nationally on the National Assessment on Educational Progress (NAEP) test, just ahead of Washington, D.C. (with some of the nation's highest educational spending) and Mississippi but tied with Alabama.

"California budget proposal would end a science requirement:  Under Gov. Jerry Brown's revised budget proposal, a second year of science would no longer be required for high school graduation. The aim is to save the state money."


For Governor Jerry Brown so loved public education, he says he WILL NOT CONSIDER and THREATENS TO VETO any attempt to soften the blow of his "trigger cuts" to public education.  That's a little strange since he so rarely ever used his veto power against spending.  I guess we know where public education falls in his spending priorities.  Here are just a few examples.

"California Gov. Jerry Brown Signs $200 Million Movie/TV Production Tax Credit Extension"
http://www.hollywoodreporter.com/news/governor-jerry-brown-200-million-tv-movie-production-tax-credit-extension-375223

"Gov. Brown signs bill spending $2.6B on high-speed rail"
http://www.dailynews.com/news/ci_21102650/gov-brown-signs-bill-spending-2-6-billion

"Jerry Brown signs Dream Act for illegal immigrants"
http://www.sfgate.com/news/article/Jerry-Brown-signs-Dream-Act-for-illegal-immigrants-2327890.php

"Top-paid California legislative employees get pay raises"
http://www.sacbee.com/2012/07/20/4643546/top-paid-california-legislative.html

Californians, we've been played for suckers before.  Remember when 1984's Proposition 37 was going to solve education funding via the Lottery?  Remember when 1998's Proposition 98 was going to end the problem of funding public education?  Remember when 2000's Proposition 20 was going to solve education funding by better spending the Lottery money?  Proposition 30 is just another money-grab by an irresponsible California Legislature and Governor.

VOTE NO ON PROPOSITION 30.  Here's why.
http://soquelbythecreek.blogspot.com/2012/07/california-proposition-30-governor.html

Friday, October 26, 2012

California Governor Brown Accuses Proposition 30 Opponents of Being "Orwellian," Needs to Look in Mirror


California Governor Jerry Brown is such a hoot!  In a bit of apparent irony, Governor Brown accuses opponents of his Proposition 30 tax hikes of using "Orwellian propaganda."


"Orwellian" comes from George Orwell, the British author of a number of great books that are as pertinent today as when they were originally written.
  • In 1984, the country "Oceania" is tyrannically ruled by The Party and its Thought Police.
  • In Animal Farm, "All animals are equal, but some animals are more equal than others."
Which political party holds nearly 2-to-1 majorities in BOTH Houses of the California ("Oceania"?) Legislature?  Which party holds EVERY state-wide elected office in California?  The answer to both questions is The Party, also known as the California Democratic Party.

Which two of the biggest political spenders in California ("Oceania") politics--who also just happen to be major donors to Governor Brown's campaign and his political party--support Proposition 30 tax hikes with large donations.  As a complete coincidence, of course, Proposition 30 would indirectly funnel more money to these same donors.

Which group was it that, until early October, had a $40 MILLION spending advantage over any opposition to his Proposition 30 tax hikes?  Even after big contributions from opponents, Jerry Brown and his cronies still enjoy a significant spending advantage.
http://votersedge.org/california/ballot-measures/2012/november/prop-30/funding


Who is it that purposely imposed cuts to public education and public safety to spur voters to pass his Proposition 30 tax hikes?  Of course, the Governor bristles at any mention of the word "extortion."

Who is it that created a tax hike that derives most of its revenues from just 2-3% of taxpayers who already pay the highest tax rates and who already pay roughly half of California's income taxes?

Who is it that specifically "electioneered" his ballot initiative to circumvent the 2/3rds majority requirement in the Legislature to raise taxes?

Who is it that, despite his heavy-handed use of official power to pass Proposition 30, calls the opposition "Orwellian"?

Governor Brown, if you want to see "Orwellian," look in the mirror!

Monday, October 22, 2012

Proposition 30 "Trigger Cuts" Threat to K-12 Public Education Adds Up to a Whole Lot of Nothing


If California voters don't pass Proposition 30, Governor Brown forecasts dire consequence that "K-12 schools will lose about $4.5 billion" via the "trigger cuts" provision the California budget that he helped create.

Are these really cuts?  As will all prognostications from politicians, it all depends on what your definition of "is" is.

Let's see what this really means.

Please point your trusty web browser at the California Budget web site.  In specific, find the document  California 2012-2013 Budget Summary Charts (May Revision).  Turn to page 4 and examine Figure SUM-06, duplicated below.
http://www.ebudget.ca.gov/pdf/Revised/BudgetSummary/SummaryCharts.pdf


Find the table entry "K-12 Education" (highlighted above) and notice that the 2012-13 budget year ADDS another $4,502 million (or $4.5 BILLION) in NEW SPENDING (highlighted in red) over last year (2011-12), a 13.2% INCREASE.

If those pesky voters don't pass Proposition 30 tax hikes, let's calculate the net effect on last year's K-12 spending.  I know that the math is difficult, but please try to keep up.  What is $4.5 BILLION minus $4.5 BILLION?  If I'm doing my math correctly, that's pretty close to $0.


This means that a no vote on Proposition 30 keeps K-12 spending roughly the same as last year (and we remember how the kids ran rampant through the streets last year, right?).  It doesn't INCREASE K-12 education by $4.5 BILLION nor does it DECREASE it by $4.5 BILLION.  That's a very much different claim than a $4.5B "cut" to K-12 education.

Is Governor Brown's claim deceptive.  I'll let you decide.

Could we do better by our kids than what the Legislature provided in the budget?  No doubt.  Public education should be a priority.  However, the state has too many other spending obligations that soak up scarce resources.  California will spend $5.4 BILLION to service our debt on General Fund bonds with $3.8 BILLION going just to interest.  See "State of California: Debt Affordability Report (October 2012)", page 22.  And those aren't the only bond obligations!  REFORM is the solution, not tax hikes.

Me? I'm voting NO ON PROPOSITION 30.  Here's why.

Tuesday, October 9, 2012

California: The Oasis of Democratic Politics


At the 2012 Democratic National Convention in Charolette, North Carolina, Debbie Wasserman Schultz, Chairwoman of the Democratic National Committee (DNC) met with the California delegation and spoke of "the oasis of Democratic politics that California is."

Really?  REALLY?!?!  As a fourth-generation native Californian, a small businessman, and attempting to raise a family, I can assure you that I don't feel like I live in heaven with the Democrats running the state.

Democrats hold solid, nearly two-to-one majorities in BOTH Houses of the California Legislature.  Likewise, Democrats hold EVERY major statewide elected office.  Yes, California is an "oasis" of one-party rule. Let's see what a tremendous record of success that the "oasis of Democratic politics" has  delivered for Californians.  I'm just surprised that the rest of the nation isn't begging for California's Democratic Party to take over the rest of the nation.


As of January, 2013, California has the nation's highest unemployment rate, persistently well above the national average although tied with minuscule Rhode Island.  Some will argue that California has had some of the fastest job growth in the nation, which is true--since June 2012 and California needs exceptionally high job growth to overcome its massive jobs deficit.  Meanwhile, 8 of the 10 cities in the nation with the highest unemployment rate are in California.

California has among the nation's highest income tax rates.  California's second-to-top rate of 9.3% is higher than the maximum tax rate in 47 other states and begins at just $48,000 in income.  California's top rate of 10.3% is second highest in the nation, behind Hawaii's 11%. Despite that, California's high tax rates don't produce enough revenue to meet the Sacramento's insatiable spending appetite.  Consequently, the latest sham budget crafted by Governor Brown and the California Legislature includes new tax hikes via Proposition 30 that give California the nation's 1st, 2nd, 3rd, 5th, and 7th highest state income tax rates.  Perhaps not surprisingly, Debbie Wasserman Schultz lives in Florida, one of only seven U.S. states that have ZERO income tax.


Likewise, Proposition 30 increased California's state sales tax rates, which were already the highest in the nation.

California has the nation's highest gasoline tax--tied with New York--about 38% higher than the national average.  California pays some of the highest fuel costs in the nation.

California has lost income-producing taxpayers to other states, according to the Tax Foundation.  Most of the migration was to lower-tax or no-tax states.


In a 2011 Kauffman Foundation survey on small business friendliness, California was one of only four states that received an 'F' rating . Why? According to those surveyed, the primary reason was California's tax code.

California is ranked among the five worst business tax climates in the United States by the Tax Foundation.

California was ranked DEAD LAST by a nation-wide survey of chief executive officers as the worst place in the USA to do business.  California ranked last for nine consecutive years.

California was ranked as the nation's least favorable business climate on a survey by Development Counsellors International.

California is ranked #46 on the 2011 Small Business Survival Index, primarily due to high taxes.

California is the nation's 2nd-most broadly and onerously licensed state.

California is ranked #47 on its lawsuit climate, deteriorating from earlier ratings.

According to an October 2012 report by the California State Treasurer, California has the lowest overall credit rating of any state in the nation.  Sure, California is only ranked second-worst by Moody's but last place by S&P and Fitch.  Why is California now 2nd place with Moody's?  Did California's new sham "balanced" budget convince the credit rating agencies?  No, it's because Moody's downgraded Illinois to below California.  California has the nation's 3rd-highest debt per capita, 2nd-highest debt to personal income, and 2nd-highest debt as a percentage of state GDP.

Despite our high debt levels, Democrats in the California Legislature further burdened California taxpayers by pushing through a new, multi-billion-dollar, not-so-high-speed rail system.  The new plan is so misguided that even the author of Supertrains: Solutions to America's Transportation Gridlock and one of the key Democrat advocates behind the original rail plan recommended AGAINST passing the new plan.

Despite our high debt levels and a supposed lack of money, the California Legislature approved pay raises for Legislative staff.

California has 12% of the nation's population but 33% of the nation's Temporary Aid to Needy Family (TANF) welfare recipients. Why is that?




According to a California Fair Political Practices Commission (FPPC) report, the two biggest spenders in California politics are state public-employee unions California Teachers Association (CTA) and the Service Employees International Union (SEIU).  A majority of that political spending goes to the California Democratic Party.  According to a former California Democrat Legislator, the CTA considers itself as a "the co-equal fourth branch of government."  Even career Democrat, former Assembly Speaker Willie Brown acknowledges that California Governor Jerry Brown (no relation) is afraid to confront the teachers union.


These same unions are the two biggest spenders supporting Proposition 30, designed to raise your taxes.  Did I mention that California is a "union-only" state?

California's 8th-graders scored 3rd worst in the nation in science--tied with Alabama and ahead of only Washington, D.C. (the nation's brain trust) and Mississippi.  Naturally, the California Legislature discussed cutting the 2nd year of high-school to save money.  But, good news everybody, we do have state-mandated "gay history" classes!  Some will argue that California's poor showing is all about student funding.  Washington, D.C. scored dead last on the science assessment by a considerable margin.  Washington, D.C. also has among the nation's highest per student spending.

Democrat super-star Antonio Villaraigosa is Mayor of Los Angeles. Los Angeles is now ranked the 2nd most corrupt region in the United States behind infamously-corrupt Chicago.  You may remember him from the Democratic National Convention when he attempted to return the word "God" and recognize Jerusalem as the capitol of Israel in the Democratic Party platform.

Forty-two-year incumbent California Democrat Senator Dianne Feinstein is afraid to debate her Republican challenger, Elizabeth Emken.  As the July 17th Los Angeles Times editorial put it, "Nothing screams 'entrenched incumbent' more than a refusal to debate an opponent."

Democrat Congressman Pete Stark has been in Congress since 1973.  Although supposedly representing California, he has declared his Maryland home to be his primary residence.  In 2010, over 90% of his campaign contributions came from out-of-state donors, primarily political action committees (PACs).  Fortunately, he finally lost his seat in 2012--a long overdue win for California voters.

California's government was ranked the nation's worst-run state government in 2011 and, in 2012, for the 2nd year in a row.

Only three cities in the United States have a net "unfavorable" rating.  Two are in California (Oakland, Los Angeles) and governed by Progressive Democrats.  California's current Governor, Jerry Brown, was former Mayor of Oakland.

I could go on, but there's not enough room to categorize all the "success" bestowed on the "oasis" of California by the Democrats. In an extra moment of hilarity, leaders from the one-party rule California Democratic Party politburo call Republicans "Nazis." If this is "heaven," I wonder what hell feels like.

Tuesday, September 4, 2012

New Jersey vs. California--The Governor Smackdown!


Recently, New Jersey's rotund and robust Governor Chris Christie and California's venerable Governor Jerry Brown entered into what might best be called a smackdown.  The entire escapade is somewhat funny given the horrible economic condition of BOTH states.  It's like the zombie telling the corpse that he stinks.

The battle began when Christie Christie, during a speech at the Republican National Convention, called Jerry Brown an "old retread" and a "bad choice".  Jerry Brown, despite his advanced age, shot back with a physical fitness challenge to the immensely obese Chris Christie, including a three-mile race.  Apparently, Jerry Brown misheard "physical" for "fiscal" fitness.

The real loser in this "Battle of the Governors" are the people of California and New Jersey.  Both California and New Jersey suffer from a variety of similar economic maladies and for similar reasons.
  • Both California and New Jersey have among the nation's highest state income tax rates.  New Jersey's top income tax rate is 8.97% and starts at incomes over $500,000 (single taxpayer).  In contrast, California's second-highest rate is 9.3% and starts at incomes over $48,000 (single payer)!  California also adds a 1% surtax on incomes over $1 million, resulting in a 10.3%, which is second nationally only to Hawaii's top rate of 11%.

    California Governor Brown wants to raise California's ALREADY-high state income tax rates via Proposition 30.  Under Governor Brown's plan, those making over $250,000 would pay 10.3%, which is the rate currently only paid by millionaires in California.  Proposition 30 adds two new tax brackets, including an 11.3% bracket at incomes over $300,000 and a 12.3% bracket at incomes over $500,000.  Both new brackets are higher than any other state in the nation.  As before, the 1% surtax on millionaires would boost California's top income tax rate to 13.3%--a full 21% higher than the next highest state, Hawaii!

  • Both California and New Jersey have among the nation's highest state sales tax rates.  California currently has the nation's highest statewide rate, although the combined state, city, county, and local rates in other states may be higher. Governor Brown's Proposition 30, if passed by California voters, would raise the state sales tax rate to 7.50%.

  • California has the nation's highest gasoline tax.  Surprisingly, New Jersey's gasoline tax is relatively low--well below the national average.


  • Both the California and New Jersey Legislatures are dominated by Democrats with close ties to powerful public-sector unions.  In California, public-sector unions are among the biggest spenders in California politics.  Both the Speaker of the California Assembly and the President pro Tempore in the California Senate have strong ties to California labor unions.  Perhaps unsurprisingly, California's public-sector unions are also major funders of Governor Jerry Brown's Proposition 30 tax hikes.



  • Both California and New Jersey are union-only states, where some jobs in the public sector require union membership. In fact, Jerry Brown expanded collective bargaining for California's teachers.
  • Both California and New Jersey have among the nation's worst-rated business climates. Both California and New Jersey duke it out for one of the "coveted" bottom five positions.


On the Kauffman Foundation survey of small business friendliness, California ranked 'F'--primarily for its tax code.  Proposition 30, if passed by voters, will no doubt lower California's already dismal ratings.


  • Both California and New Jersey have unemployment rates well-above the national average. As of July 2012, California had the nation's 3rd worst unemployment rate at 10.7%.  New Jersey had the nation's 4th worst but is almost a full percentage point better than California.  California's unemployment remained steady from June-to-July while New Jersey's rate worsened slightly from 9.6% to 9.8%.




  • Both New Jersey and California have low credit ratings, although California's currently ranks the lowest in the nation. Illinois has since been downgraded since this chart was created, but still ranks above California.

  • California has the nation's largest population of Temporary Aid to Needy Families (TANF) welfare recipients, while New Jersey's TANF population is toward the low end nationally.



While California's Governor Jerry Brown in old and New Jersey's Governor Chris Christie is fat, neither state Governor can boast he has a beautiful economy.  However, in my opinion, Governor Brown is leading California in the wrong direction with his Proposition 30 tax hikes.  I encourage California voters to VOTE NO on PROPOSITION 30 this November.

Monday, September 3, 2012

California's Willie Brown on Pension Reform

Willie Brown is a distinguished, career California Democrat.  He was California's longest-serving Assembly Speaker, never to matched due to California's Legislative term limits.  He was also former Mayor of San Francisco.  The California Legislature recently passed a long-overdue pension reform bill that is a small, but necessary, step in the right direction.  Even with the pension reform legislation, California's public pensions are underfunded by tens of billions of dollars.  California taxpayers are on the hook to make up the difference.


Willie Brown has been open and blunt about the Legislature's role in California's poor condition.  Here's his latest his column in the San Francisco Chronicle.  Scroll down as there are multiple topic in his column.
http://www.sfgate.com/bayarea/williesworld/article/Eastwood-s-act-caught-GOP-off-guard-3834031.php
"As reforms go, the pension deal that Sacramento lawmakers reached last week is just a start to correct the mistakes that former lawmakers, including me, have made over the years. 
"But for all the talk about how the changes were needed to make the governor's tax plan [Proposition 30] more palatable to voters this fall, the fact is that lawmakers bucked the unions for one reason and one reason only: They want to keep their jobs.
"The unions are really bent out of shape because they weren't allowed in the room during the negotiations, as they usually are. But why should they be in the room?
"The world is changing. Years ago it was the likes of Southern Pacific and other big businesses calling the shots in Sacramento, and we were all highly critical of them.
"These days it's labor. That's not the portrayal union leaders like to see in the media, but it's the truth. 
"Real reform would be barring labor leaders from sitting on state pension boards. The boards ought to be made up of money managers who are concerned with how much cash is going in and out of the fund. There is no justification for any trustee on a pension board being more interested in spreading benefits than paying for them."

See also ...




Monday, August 13, 2012

The Hollywood and Media Hypocrisy on California Proposition 30 and Possible Media Bias

Everybody loves higher taxes ... but only when someone else is stuck paying the bill.

Hollywood and media companies have ponied up big for Governor Jerry Brown's Proposition 30 tax hikes.  Here are the readily-identifiable contributions from various media companies to Californians To Protect Schools, Universities And Public Safety, A Ballot Measure Committee Supported By Governor Jerry Brown, which supports Proposition 30. That each media company contributed the same $100,000 makes it appear that this was part of an organized appeal campaign, organized either by the Governor's office or by the unions funding Proposition 30.
  • CBS Corporation: $100,000 (New York)
  • Disney Worldwide Services: $100,000 (California) (Disney owns ABC/ABC News)
  • NBCUniversal: $100,000 (California)
  • Sony Pictures: $100,000 (California)
  • Viacom International: $100,000 (New York)
  • Warner Brothers: $100,000 (California)
  • Dreamworks SKG: $100,000 via individual donations from founders Steven Spielberg, David Geffen, and Jeffery Katzenberg
  • Reed Hastings, CEO of Netflix contributed $1 million in support of Proposition 30.  However, he is also a major donor to many activities of the California Democratic Party.

Of course, Hollywood and the media will say that they just want to be "responsible corporate citizens" and ensure that everybody pays their "fair share," especially in these "difficult times" for the California budget.  This could be true, but don't forget that the media companies are first and foremost for-profit businesses with large public-relations staffs.

In the midst of massive multi-billion dollar California budget deficit and proposed tax hikes by the Governor, a California Assembly committee approved a bill for another $100 MILLION in tax credits for Hollywood and California media.  Of course, the fact that Hollywood and media are major contributors to the Democratic Party had nothing to do with it.  Democrats hate corporate welfare (unless you happen to be a major party donor). You scratch my back, I'll scratch yours (wink, wink).

Similarly, these same media companies also own major advertising-driven TV networks.  More than $20 MILLION has been raised so far to support Governor Brown's tax hikes, mostly from public-sector and trade unions.  Naturally, a good amount of that money will find its way back to the media companies as TV  political advertising, and that's just for Proposition 30.  Some companies also have outdoor billboard advertising, like CBS Outdoor.  NBCUniversal also own Spanish-language Telemundo.  Interestingly, California Democratic Party heavyweight, Haim Saban is executive chairman for Spanish-language Univision.  Saban is a major donor to the Democratic Party and is listed as one of the 50 most-influential California Democrats.

The two biggest spenders in California politics are the taxpayer-funded, public-employee unions California Teachers Association (CTA) and Service Employees International Union (SEIU), according to a March 2010 report by the California Fair Political Practices Commission.  Other public-sector and trade unions, traditional allies of the Democratic Party, are also major contributors to Proposition 30.  The unions spend big on TV advertising during every election cycle.  I'm sure the studio bosses see it as just good business to toe the party line.  You scratch my back, I'll scratch yours (wink, wink).




Let's not also forget that at least three of this group have "independent" "impartial" news networks, ABC/Disney, CBS, and NBCUniversal.  NBCUniveral has a number of news outlets, including NBC News, MSNBC, and CNBC.  I wonder how "impartial" coverage of Proposition 30 will be.

In full disclosure, I am a shareholder of Disney, a company I generally admire. But lets also not forget that the California Legislature just approved the latest California High Speed Rail plan involving $7.9 billion in state and federal spending.  Why does that matter?  One of the eventual stops on the high-speed rail is in Anaheim, California.  Why there?  Because that's where Disney's Disneyland and California Adventure theme parks are located.  You scratch my back, I'll scratch yours (wink, wink).

Meanwhile, California ALREADY has some of the nation's highest taxes.  Our high taxes, high costs, and ineffectual government have damaged our already ailing business climate, ranked near the bottom nationally, The California Legislature has given its staff a raise, approved additional educational spending for non-US residents, avoided a spending limit like the plague, approved an expensive high-speed rail plan that not even train lovers like, and debates just about anything other than public pension reform.  The California Legislature needs to stop the scratching and winking and perform their constitutional duty.


One of those duties it to debate tax reform and rates.  In the Legislature, tax hikes requires a 2/3rd majority as a protection for the 1/3rd minority of voters that pays the bulk of California's income taxes.  Meanwhile, Governor Brown's, union-funded Proposition 30 is purposely "electioneered" to circumvent the 2/3rd requirement.  Proposition 30 is an abuse of the democratic initiative process.

Californians, stop the obvious corruption in our political system and Proposition 30.  Vote NO on Proposition 30 this November.  You can learn more about Proposition 30 here.