Wednesday, February 4, 2009

California News Roundup - February 3, 2009

California bond rating drops lower than any other state's California's bond rating was downgraded below that of every other state Tuesday by a major Wall Street rating agency, as lawmakers trying to resolve the state's financial problems faced growing resistance from powerful interest groups.


Skirmish over state prison yoga rooms intensifies The battle over California prison inmates' constitutional rights has come down to this: finger-pointing over who dreamed up the idea of giving convicted criminals taxpayer-funded bingo and yoga rooms.


California Supreme Court to hear Prop. 8 arguments The California Supreme Court announced Tuesday that it would hear arguments March 5 over the constitutionality of Proposition 8, the November ballot measure that reinstated a ban on same-sex marriage.


Money & Co.: California's low credit rating: Investors win, taxpayers lose When the state of Georgia sold 10-year bonds on Monday, it paid an annualized tax-free interest yield of 2.99% to the investors who bought the IOUs.


It's too easy to amend California's Constitution The Proposition 8 battle showed that the process to get an initiative amendment on the state ballot should be more rigorous.Proposition 8's ban on same-sex marriage unleashed a storm of controversy that has moved to the state Supreme Court. The cases filed there grapple with, among other issues, the fact that the measure isn't just a garden-variety statute passed by the people but an addition to the state Constitution. Amid all the other debates caused by Proposition 8, we need to open one more: Does California make it too easy to amend its Constitution?


State's Big Five keep talks secret for fear of dooming budget deal Five Californians are trying to solve the state's budget crisis, in part by keeping the other 38 million residents in the dark.


Controller, unions keep California furlough fight alive in 2 courts With thousands of state workers facing their first unpaid day off on Friday, the fight over whether Gov. Arnold Schwarzenegger can legally cut employee hours and pay split into two courts on Tuesday.


California Supreme Court sets date for hearing on gay-marriage ban The California Supreme Court announced Tuesday it will hear oral arguments in the challenge to Proposition 8 on March 5, setting the stage for one of the most anticipated hearings in the court's recent history.


Delayed system updates a drag on state jobless claims Seven years after the federal government gave California $66.1 million to modernize its unemployment insurance call centers and claims processing systems, state workers are still manually processing claims that the jobless now submit online.

Million-dollar home sales plummet in CaliforniaBy Dale Kasler The million-dollar home became something of a rare bird in California last year, a victim of the continuing collapse in the housing market.

Capitol Alert: O'Connell: State of education is 'precarious' The Bee's Bill Lindelof and Melissa Nix have a rundown of State Superintendent of Public Instruction Jack O'Connell's State of Education speech.

Dan Walters: State budget now officially a "high-risk" zone State auditor's office maintains a list of "high risk" issues facing California and monitors their condition constantly - and now has added the deficit-plagued state budget to that list in a report that frames the difficulties inherent in balancing the state's fiscal situation.


Capitol Alert: Video: Feinstein flirts -- again -- with governor run Sen. Dianne Feinstein appeared on MSNBC's Hardball program last night with Chris Matthews.


Dan Walters: Just the facts on financing schools Schools consume more than 40 percent of the state budget and are, therefore, a centerpiece of the convoluted politics of closing the state's whopping budget deficit, but few people - even few legislators - understand the complex manner by which California finances education.


Capitol Alert: Details of furloughs in governor's office Over at our sister blog, The State Worker, Dan Smith has posted a memo that the Schwarzenegger administration has sent to its own staff detailing the furloughs they must take.


Schwarzenegger's restructuring proposals Gov. Arnold Schwarzenegger recently released 18 proposals to streamline government, a scaled-back version of his 2004 California Performance Review. His office projects the total cost savings at $126 million in the first year. Here are his proposals:


Dan Walters: Corporate tax issue has hidden agenda Senate Bill 28X was one of many "budget trailer bills" pushed through the Legislature last September with little or no debate or even analysis as part of a political deal to end a record-long stalemate on the state budget.


Daniel Weintraub: Seeds of growth ready for fertile ground As California's economy struggles to rebound from the collapse of the housing bubble, it is difficult to imagine what will lead us out of this hole. We had the dot-com boom and bust, and then a housing-led recovery that turned out to be a mirage. Is there some industry, some idea that can reignite sustainable growth in this once-golden state?


Jerry Brown: Prison czar's plan unrealistic, intrusive California is staring down fiscal catastrophe, yet the prison health care czar believes he is wholly immune from the harsh realities of the state budget, saying the crisis is "unfortunate, but irrelevant."

Censure resolution makes little sense With California facing a $41 billion shortfall and the state nearly insolvent, a Republican Party activist has drafted a resolution to censure any GOP lawmaker who votes for a tax increase.

Threats but still no solution to state crisisThere's no state budget yet, but already the henchmen of California politics are blackmailing those who may not toe their line.

Bill would drive many car dealers out of business A BILL that would require automobile dealers in California to post the nation's highest bond to operate their businesses is well-meaning, but it is a bad idea especially in fragile economic times.

Calif. EDD call centers won't shut for furloughs California's Employment Development Department offices will be closed two days a month due to furloughs, but the call centers will remain open and workers will staff the phone lines, EDD says.


LA county supervisors consider withholding funds from state The Los Angeles County Board of Supervisors today discussed withholding locally generated revenues from the state, if the state begins withholding funds from the county.


Education needs more freedom, not more taxes Schools chief should try to do more with lessIt would be refreshing to hear tax-supported service providers say they will do more with less, as increasingly is being done by countless businesses and individuals in the private sector.

California judicial panel weighs inmate release A federal judicial panel heard closing arguments Tuesday in a long-running legal battle over crowding in California prisons, a case that will have far-reaching consequences for the state's corrections system, its budget and public safety.

State budget woes disrupt payments to foster The state of California comes closer every day to running out of cash, and now it is foster parents who are feeling the squeeze.


Supervisors vote to sue Riverside County supervisors voted Tuesday to sue the state to compel it to pay billions of dollars in funding for county-run social services, payments the state began delaying this week to conserve cash.


Housing delusion? Californians need to be realistic about the prospects of an economic turnaround. Despite federal efforts to stem foreclosures and boost home lending, the state will not return to the freewheeling days before the mortgage meltdown. Nor should it: That heady housing market relied on unsustainable practices.

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