In a stunning setback for Arnold Schwarzenegger’s state-employee mandatory furlough policy, an Alameda County Superior Court judge has ruled the furloughs illegal, since they were implemented under a state of emergency that no longer exists.
In a ruling handed down late Thursday, Judge Frank Roesch said the governor’s reliance on provisions of the state’s Emergency Services Act to order mandatory furloughs was flawed and illegal, saying "the emergency necessitating them was the failure of the Legislature to pass the budgets" yet the administration continued the furloughs even after the budgets were passed.
Roesch also said that the furlough plan has "interfered with the objectives of agencies" whose activities were funded with special funds, not general fund revenues, including the processing of Social Security disability reviews.
These are employees whose salaries (and the benefits they administer) are funded by federal money or state set-asides and therefore are not subject to the general fund’s being held up by the legislature — but Arnold furloughed them anyway and refused to hear appeals. This slowed disability reviews as well as processing of special federal assistance administered by state employees. In some cases, it has led to reduced federal payments to the state, an absurd situation when the Governor is asking the federal government for more than eight Billion dollars in emergency budget-balancing assistance.
The governor’s controversial executive order used his emergency powers to impose twice-monthly furloughs on more than 200,000 state workers in February when the general fund was sloshing in $40 billion of red ink. He added a third "Furlough Friday" in July to cover a portion of what was then a $24 billion budget hole.
The administration had said the policy was expected to save $2.2 billion in payroll costs this fiscal year.
This ruling, which Schwarzenegger spokesman Aaron McLean says will be appealed, shows that, at least for the moment, the Governator can’t balance the budget on the paychecks of state employees and the citizens they serve, in many cases the least fortunate among us.
Think about it for a moment: most people work 20 days in a month, so twice-monthly unpaid furlough days mean a ten percent cut in pay, at a time when benefits costs are increasing, energy costs are volatile, and child care costs are increasing. Other jobs are scarce, especially part-time jobs you might use to backstop such a furlough, since so many other Californians are fighting for them too.
This is a win for workers over Arnold. Happy New Year, California state employees! It’s great to see the good guys win one!



94 Comments







I have reason to deal with state workers occasionally for a California benefit I receive, and I can’t even begin to tell you the kind of chaos these furloughs have produced in most offices. Think about how bureaucracies process paperwork, and then envision how having ten percent of your workforce absent on any given day hurts every single process. People are really struggling to keep their service to the public up to par — many are very apologetic, but can’t do better under the circumstances.
It’s just another kick in the teeth for public sector employees, started by another ambitious governor of Californa who’d gotten a promotion and immediately fired all our air traffic controllers. Labor’s been in a fight against management since then.
And don’t get me started on the extra-long lines at the DMV up the block since the furloughs began — lots of frustrated citizens trying to register their cars, renew their licenses, or get state ID pictures. Usually, the line goes outside the building nowadays.
I was shocked when I went to the DMV last October. Took hours to renew my license. Absolutely NOT the California I have lived in for the last 25 years.
Sounds like Illinois when I used to live there.
I have pretty good luck with our DMV here in central Illinois. Gotta go during the optimum time periods.
Yeah when they first open:)
Mid to late morning (but not too close to the lunch hour) or 2-4 pm.
The amount of waste this kind of delay builds into daily lives of Californians is amazing. I walk past the DMV most afternoons and am constantly startled to see folks waiting patiently in line. Someday soon, people may stop utilizing their services, and just “go without.”
That way lies anarchy.
Let’s call it collective civil disobedience, for now . . . ;-)
One thing that’s always confounded me is the familiarity with which those California Democrats and laborites who are always attacking Schwarzenegger bring to the game by always calling him Arnold. That humanizes him on his terms and is part of the reason why they’ve been unable to gain traction against him.
Arnold evokes Sargeant Schultz, Kindergarten Dad.
Schwarzenegger carries no such favorable and cute connotations and makes you think Terminator.
The failure to frame Schwarzenegger in their own negative terms has cost the Democrats dearly in California, another case of holding most all cards and still fucking it up, as if they felt compelled to.
‘Ahnold’ is not a friendly nickname.
He’s called Ahnold because it evokes all brawn, no brain incompetence. I don’t know of anyone in my area, R or D, who doesn’t see referring to him as Ahnold an insulting comment on his intelligence and seriousness, or lack thereof.
Teddy’s headline said “Arnold” most all of the liberal and labor commentators always refer to him as “Arnold.” The only time that people generally refer to a politician by their first name is when they are acquainted.
Again, we need look no further than the posture of the California Democrat Party and labor unions to figure out the wrong way to prevail politically despite huge structural advantages. And, yes, my household is a public sector SEIU household.
Great news! Arnold was elected to fix the budget and the economy back when people thought the GOP understood business Bwahahaha! Just how naive were we before Bush destroyed that meme.
Whats next for Arnold stall until he is out of office so he doesn’t have to pass a tax increase and ruin his ruined legacy?
I hope Arnolds kids are not thinking of running for office Arnold has wrecked that.
And it pisses me off that so many Californian’s seem to think that all State employees are lazy and laggards when the fact of the matter is that CA has the 2nd lowest number of full-time equivalent state government employees relative to population among all states.(PDF link)
Now that is a 2007 number so lets see what the CA Department of Finance has to say.(PDF link)
Note “The numbers of personnel years listed do not reflect certain position reductions after the enactment of the July amended Budget Act.”
Also note that DESPITE the continued growth of State employees as defined by the DOF, in 2007 CA still had the 2nd lowest number of full-time equivalent state government employees relative to population among all states.
The Schwarz is a schmuck.
Yeah, Californians think state employees are lazy or laggards — until the state firefighters show up to knock down that canyon fire threatening their home or the state rescue workers show up with sandbags when a levee fails in the Sacramento delta or a CHPs employee guides traffic around an accident in the rain. Until the furloughs, even the DMV had become a model agency, getting people in and out within 20 minutes, and offering online renewal of licenses.
But we can’t have government looking like it works too well, or people won’t go along with shock doctrine solutions in bad times.
I think state government employees are heroes in California — can you imagine going without ten (now fifteen!) percent of your pay suddenly? Who are you going to not pay this month, Mr Landlord, Mr SchoolFees, Mr CarPayment? It’s not like these people have an extra ten (or fifteen!) percent slack in their personal budgets.
But Arnold and Maria wouldn’t understand that.
Ronnie Raygun’s tentacles will haunt us forever.
state employees in FL – with whom i am very close – were threatened with furloughs the last coiuple of years. to the point of being asked “how would you prefer to take it?” didn’t happen but I know at least some of our knuckle headed, knuckle-dragging legislators will take notice of this decision and follow it through the appeals process. from the little i’ve read here it makes sense.
is Alameda county Oakland ?
Yes, Oakland is in Alameda County (gosh I hope I typed that right). Unlike San Fran, which is both a city and a county, Oakland is a city and Alameda is the county.
got it. does that mean anything? probably not. i mean, judges there more liberal, legislate from the bench, make up the law from thin air types ? but there’s usually a balance at the trial level, i assume.
Yes, Oakland is in Alemeda County.
I wonder how the government of California is rated on service then? Because if they still have good state services then their bureaucracy is amazing.
The agency I deal with asks its clients, “Just don’t call on Friday. You can only leave a message, and we spend most of Monday cataloging and catching up on Friday’s messages, since no one is here then. Please call Tuesday, we’re usually here and able to take calls.”
Illinois 45 minutes if your lucky and I went to school with the DMV clerks daughter thankfully he confirmed my identity once when I lost all my ID and needed a new license.
i am so glad i moved from ca. arnold made the state impossible for me to live on my retirement. his revamping of the worker’s compensation to benefit employers and not the injured employee was the nail in my coffin’s lid.
i lived on $100 month for food for 18 months. thank goodness i was able to utilize a local church’s food bank.
the safety net has large holes in it — holes created by arnold.
I wonder if Arnold could live on that:) Thats the kind of question the press should ask him. Just how much weight would arnold lose on beans and rice for a month?
It would have been difficult even without Ahnold.
My parents moved from CA to TX after my father retired – in 1980. They couldn’t afford to stay in CA on their retirement funds, a lot of which was the money from selling the CA house.
Arnold doesn’t need to eat, his ego can sustain him for years, hence no empathy for mere mortals.
Your story echoes that of a dear pal of mine, he was CalTrans, with a disability, work comp.
Arnold screwed him lifetime, he’s been living in Pahrump, NV, for 5 or more years now.
We miss ya in CA, but you did what ya had to do . . . and ya got that beautiful bay, too . . *G*
Happy New Year, Suz . . . thanks for all ya do!
But at least President Obama gives us a New Year’s thought (via HuffPo):
Those are nice words, Loo. I need more than words from him, though.
Determination can get one only so far.
The only words I want to hear Obama say are, “I resign to leave the fight for peace, prosperity, justice, and equality for all Americans to people who will hopefully be better suited to the task.”
To Joe The Biden!!!!
Granted, there is no one trustworthy in the current line of succession but also no one who would be worse.
I would trust Biden. He tends to shoot from the lip, I know, but he has some fire in him. Obama is just too laid back about everything – makes me nervous.
i’ve always liked Biden. I’d like to thinbk he would have done more on HCR and done less on Afghanistan. But who knows.
A revealing comment, suggesting you are credit card free!
“Sen. Joe Biden was one of the few Democrats who sided with credit-card companies that were trying to make it harder for people to declare bankruptcy.”
Happy New Year BfL!
yup. Joe Biden (D – MBNA)
Biden can at least remember a time when Dems occasionally delivered something beneficial to average Americans.
see. He didn’t mention the word terrorism once.
wuss.
True. Not mentioning terrorism shows a total lack of respect.
anybody buzzed yet?
Working on it.
Alert the media!
keep up the good work, eCahn
Left you a note.
You can’t really have a tourist economy without state services no police crime goes up. Cut the fire budget and the red wood forest goes up.
Welcome to The City Beautiful !
Judge Roesch rocks and rules. Ahhhhhnold stumbles. Good.
Did you hear his farewell speechin the Senate? It was pretty moving. He remembers why he went there. At least he did that day.
Dooods! A video thread upstairs!
OT
Montana 3rd State to Allow Doctor-Assisted Suicide
http://www.nytimes.com/aponline/2009/12/31/us/AP-US-Physician-Assisted-Suicide.html
More good news sneaking in.
As if DrDick wasn’t busy enough already. :-)
Its a jobs bill
That is good news, thanks for passing it on. I watched some one die of alzheimer’s and another die of parkinson’s and their last year of life was miserable. If given a diagnose like that it is good to know there is some where I could go for relief.
so this is the same judge who wouldn’t let parents pull their kids out of classes they said taught a “pro-homosexual agenda.”
I like him, man.
Who is going to be The Third Way Clintonista running to fuck California for good?
Villaraigosa? Difi?
whats the word in the street?
If I have my way Sci Fi will never see another day of erected orafice in her short lifetime left.
She will retire, and peacefully go to ground and stop killing the masses.
Jerry Brown but I don’t think he’s a Clintonista. He’s pretty independent.
Oh crap, – Mr Prop 13 himself.
Used to like him, but that was long ago.
No, that was Jarvis and Gann (may they spend a long time in a hot place).
Prop 13 happened under his father, Pat Brown.
He’s a total clusterfuck, was a total clusterfuck, and I just can’t imagine what he’ll do to CA this time around, but he’s preferable to any Repugs, or SciFi . . . Teddy P For Gov!!!!
You seem to be confusing him with Ronny and Deukmejian and Wilson, all of whom did their best to screw the state. Brown merely wanted people to live more sanely: less trash, more recycling, don’t expect to be bailed out.
Speaking of Republican governors getting their asses kicked:
What ever happened in the investigation of the bridge collapse? Is Pawlenty popular in his state is he serious about running for President?
It was kinda-sorta resolved, but in a way that had most folks thinking (if not saying out loud) “whitewash”. And no, he’s not that popular. He lucked out in 2002 and 2006, when the Dem candidates were problematic and third-party candidates sapped enough votes from them to allow Pawlenty to win; but one reason Governor Gutshot‘s trying to fail upward and get onto the 2012 GOP presidential ticket is that he knows he’d have a tough reelection campaign.
Boggles the mind to think of someone running for prez ’cause he needs a job. Scary.
Another repuke Governator goes too far!!
>
>
ha ha ha ha ha ah
the governater is put in his place!! Hopefully soon the repukes & BlueDogs will be put in their place as they are replaced by true progressive who have the “People’s” interest first and foremost!!
Glad the Governator got a punch in the nose. Now all we need is a few major rebukes to the President from Congressional progressives on health care reform.
Hate to break it to everyone, but our state employees are one reason the state is in such terrible financial shape. You see, our public employee unions are the backbone of getting Dems elected. (I’m a lifelong Dem, BTW.)As a result, they exert tremendous influence with the Dem-controlled legislature. So back when the dotcom boom was filling the state treasury with extra money, these unions convinced the state to change the retirement formula. It was calculated at 2% of final year’s salary x the number of years worked. Hence a 30-year employee got a pension equivalent to 60% of their final year’s pay. But the new formula was 3% and it was retroactive, covering all years worked. So immediately, overnight, a $30K pension became a $45K pension, a $60K pension became a $90K pension, and so forth. In PERPETUITY. For-ever.
On top of that, pension “spiking” is allowed. Volunteer for all the overtime you can in your last year, because it bumps the figure on which your pension is calculated. Don’t take a vacation that last year, because the value of that unpaid vacation time will be added on as well. We have public safety employees retiring at age 50 on 90% — or more! — of their salary. Regular employees doing the same at 55. And they’re allowed to keep drawing their pensions even after they’re hired back by the same agencies to do the same (or essentially equivalent) jobs as independent contractors. (Double pay for the same work. Nice, huh?!)
In addition, until government fiscal years beginning after Jan 1, 2006, state and local governments were not required to account for their future pension obligations on an accrual accounting basis. They only had to make room in their current FY budget for their pension assessment set-asides for that year. Consequently, nobody was putting away enough money to cover future public employee pension obligations. Moreover, CALPERS and most of the other big pension funds were consistently using overly optimistic projections of the returns on their investments in stocks, bonds, real estate, etc.
At the time all this was going on, many fiscal experts were warning that this was a formula for disaster and that in the future, money for these exorbitant pensions would crowd out money for on-going government services. Guess what? We’ve arrived at that “future”. These figures may not be up to date but the last I heard, the state CALPERS retirement fund is around $140 billion (repeat Billion), in the red and is taking even GREATER investment risks in hopes of closing the gap. In other words, CALPERS is like a gambling addict doubling down over and over again hoping to get back to break even. Several prominent financial analysts have predicted that CALPERS cannot save itself, that no combination of achievable and politically palatable tax increases and investment returns will right the ship. (In addition to CALPERS there’s also CALSTERS for teachers and ed system employees plus several more funds for the CHP and major city and county police and fire departments — LAPD, SFPD, San Berdoo County Sheriffs, etc. ALL of these funds except those for the LAPD and LAFD are in the hole, big time.)
And, oh, BTW, when the state increased the formula from 2% to 3%, it allowed all other public employee jurisdictions to do the same. There was an immediate, successful push to get local school districts, local cities, counties, etc., to raise their formula to match the state’s. This was accomplished through the use of the fear card: raise our pension rate or all of our good employees will rush over to work for similar state agencies. And since those employees all pay into CALPERS or CALSTERS, they don’t lose any seniority or pension vesting when switching employers.
Big Jess – That 3% Rule only applies to Public Safety Unions [Highway Patrol/Prison Guards/Firefighters]
Most of the other Unions get capped at 2% or less.
http://www.calstate.edu/benefits/retirement/cr.page.shtml
At the store today, they were petitioning to help police and firefighter salaries by increasing retirement. I didn’t even read the petition, just walked on by. The safety officer retirement rules were stupid even before they raised to 3%. They talk people into voting retirement rules based on the hazards of their job, but then they apply to everyone in uniform, even the old fat guys in desk jobs whose hernias or age won’t affect their ability to do their job at all. Some unions get as greedy as Wall Street bankers. I still like them better because they don’t bilk people in the multi-billions, but greed is destructive no matter where you find it.
Trash collectors are statistically the most endangered in the workplace as a matter of course.
The 3% ratio may not have migrated over to the state college/university system, but it is definitely NOT restricted to just public safety personnel. Many local governments have been coerced into matching that ratio because the classified employee unions have argued that it is unfair to give that higher ratio just to the cops and firemen. And you can bet your sweet ass that CALPERS is not $140 BILLION in the red just because public safety workers got a ratio bump. Cops, firemen, and prison guards make up only a small portion of the total number of people covered under CALPERS, esp. since some departments like the LAPD have their own, separate pension fund. I also think you’d be surprised if you did a digging around the net and found some of the sites where they list the top pension beneficiaries. I believe there’s one site which lists more than 500 former teachers and school principals who are knocking down pensions in excess of $100K a year. In my little city of 65,000 we’ve got former planning directors and assistant department managers with pensions in excess of $100K.
Right, it’s all the unions fault. The unions created the middle class. So go piss in someone else face and tell them its raining. We are not buying it. A lot of you voted that greedy,self absorbed ditto head into office. I don’t know why anyone should be surprise that he drove your state off the cliff. And his solution is to stick to the poor. Maybe the poor need to pay attention and get out and vote losers like arnold out of office.
Hey, mekarri, just for your information I’M A PROUD UNION MEMBER. And previously a member of two other unions. My parents met at a union hall where my father was a member and my mother worked for the business agent. Later she went to work for a local city and was a member of the CA Public Employees Union for 25 years. My father served three terms on the Executive Board of his union, and on the AFL-CIO joint unions political committee that decided which candidates to endorse and support each election cycle. So don’t go feed me either line — that unions are all wonderful or that unions are the cause of all things bad. It varies according to the union and the situation. Private industry unions built the middle class in this country, but they negotiated with businesses that had to make a profit. I’m all for public employee unions negotiating wages and working conditions for employees. But public employee unions should not be allowed to endorse or give financial support to political candidates because that makes the officials that get elected with that support beholden to the union. You end up with NOBODY on either side of the bargaining table who represents the taxpayers, whose money those elected officials get to spend.
Unions also control the majority of the positions on the CALPERS board. You can’t avoid the fact that they bear an enormous responsibility for the financial abyss that CALPERS has become. 2% times the number of years worked (min 20 years, max 30) is a fair pension. 3%, applied retroactively to people who, in some cases, either had a few years to go to reach eligibility or were ALREADY eligible, is not. What’s interesting is that just about the only public employee pension in the state that’s not underwater is the LAPD’s. You wanna know why? Because — and I HATE to have to acknowledge this — a Republican, Mayor Riodan, forced the City Council to put that fund on a accrual accounting basis right after he came into office. Best, most farsighted, fiscally responsible move the City of LA has made in the last half-century. As for voting losers like Arnold out of office, hey, I’m no fan of the guy. I think he’s a lot like Obama: came into office on a reform platform, had a greats opportunity to affect real change, then either chickened-out or sold-out. But you gotta face facts: Dems have controlled the legislature for a very long time. They could pass a balanced budget, but they don’t have the balls to go up against the unions or the private industry special interests. People say Obama can’t wave a magic wand; well, neither could Arnold. (That does not excuse either one for not taking their case to the people, not standing up to special interests, not putting sufficient heat on Congress or our state legislature to FORCE change and reform to happen.)
How about Ca stop putting flouride in city water? I bet they could save billions of dollars over 10 yrs or so. Our teeth may need it but our inside organs does not.
Also, Ca needs to have mega churches and non profits pay taxes.
Oyyy…..
Water treatment is a local, not a state, function. (If you want to have bad teeth, that’s your problem, but fluoride in the amounts used is not dangerous to anything but cavities.)
Also, we need a lot fewer megachurches.
“Hydrofluorosilicic acid is used to fluoridate your water. This is a crude industrial waste product of the aluminum, phosphate fertilizer and other industries. The hydrofluosilicic acid specs lists the % of ingredients: 24% H2SiF6, 18.5% fluorine, 1% HF and many other toxins including Pb (lead), Hg (mercury), Ag (silver), Fe (iron), As (arsenic), and Cd (cadmium). This occurs even at one ppm.
Cities are using the tax dollars of the citizens to pay the phosphate fertilizer and aluminum industry for the privilege of getting rid of their toxic industrial waste by forcing the people to drink it under the guise of fluoridation. Some cities spend between $60,000 and $70,000 to fluoridate the water supply. Some of this may come from the State Department of Health and Mental Hygiene.
EPA states that HF (hydrogen fluoride) is the 6th most common air pollutant in the U.S. It is the 3rd most emitted pollutant from industry.”
http://www.litalee.com/shopexd.asp?id=176
http://www.fluoridealert.org/health/infant/index.html
Look, the CA Democrat Party has had time and resources to craft an alternative to Schwarzenegger, but they’re Dead in the Water on that front.
Our local then-assemblymember, a charming fellow and I were discussing the recall in 2003. I told him that they were playing for keeps and that the Democrats had better respond in kind. He gave me the standard schtick that the recall would cost tens of millions of dollars and we should avoid it. The still don’t realize that the voters would have spent hundreds of millions to dislodge dingy gray davis.
The Dems and Labor have done nothing to fix Prop 13, nothing to split the tax rolls between corporate and individual, nothing to change the 2/3 budget requirement. This stuff takes educational campaigns that go on for a year before the election. And they’re not even at the point where they’re using their resources to change things. Once there are solutions, the game of political metronome is over, no more gala dinners or fundraisers.
Prop 13 was in the late 1970s under Jerry Brown, not 1950s and 60s under Pat or 60s-70s under Reagan.
It is not just California that is failing as a state, NY is as well. We have the tatters of a 21st century economy and a government and revenue regime largely remnant from Pat Brown’s day, tempered by Prop 13, Gann and 218. Again, we can either decry the decay or put forth something positive to change the game.
If anything, government now needs to become like an accordion, where employment stays constant but hours flex in accordance with resources until revenue reform can be enacted.
Labor? Democrats? Hello?
Well, for one thing, it would take another f*cking initiative to fix Prop13, and, I think, a supermajority vote in the lege.
You might be able to get the initiative on the ballot, but beyond that, you’d have to convince a whole lot of people that it would be an improvement, and a lot of people have bought into the idea that taxes are bad (as long as they’re paying them).
It would take several buttloads of petitions or 2/3 in the lege, which might be peel offable in some budget deal.
But this is arcane wonky crap, but it is critical if we’re to reconcile our public revenue structure with the economy that’s to support it.
Please beware the notion of the Constitutional Convention, as the Bay Area Council and Jim Wunderman are bent on creating a 21st Century corporate state.
We need reform, but not from the greedy corporate interests which have run California into the ground in partner with the right wing tax whiners.
There ain’t no free lunch, and Californians have had it with big business shifting their costs onto the public.
But Meg Whitman will fix all that. I keep wondering when I hear her commercials if Joe Public has the same reaction of horror when she touts her corporate CEO experience as I do. CEO isn’t the cool resume builder with the public that it might have been in the past, is it? But it is disgusting to me that we have so few Dem alternatives when things are so screwed up we really need someone good to step up.
And a word or two about Prop 13.
Prop 13 is NOT the boogeyman many in government and public employee unions like to make it out to be. All Prop 13 did was impose a “means test” on property taxes. It was reasoned that if you can afford to buy the property at price “x”, you can afford taxes based on that price, and which increase by 2% per year after that until you sell the house, at which time it is reassessed at the new sales price and the process starts all over again. Before Prop 13, and in those states without a similar protective mechanism, your property taxes were (are) based not on your income or your means but on the income and means of your richest neighbor. The value of your house was based on the value of THEIR house. This negated the land value element. Developers on my block have paid in excess of $800K just to bulldoze old houses and get at the land underneath to build McMansions.
Without Prop 13, some 40-50 year old houses in my neighborhood, even those less than 1,000 square feet and owned for decades by the same people, would have property taxes way out of line with the actual utilitarian value of the house itself. (And way, waaaay beyond the ability of these people to absorb that big a tax hit.)
There is a huge cognitive disconnect going on among foes of Prop 13. They think that if Prop 13 was repealed, California’s revenue problems would go away but there wouldn’t be traumatic, detrimental, real-world effects on people. More money for government would magically appear without any of it coming out of the pockets of what’s left of the state’s middle class and its senior population. This is just not so.
In fact, up until 2008 when the financial meltdown changed everything, California government had more money — adjusted for both population growth and inflation — than it had in the pre-Prop 13 days. The problem isn’t revenue, it’s spending. Since the early 1990′s, California government spending has increased 50% faster than population and inflation, combined.
I also found it interesting that earlier this year HuffPo linked to an article about the ten states which are in the greatest financial distress. Seven of those ten have no Prop 13 equivalent. In other words, they have no limit on property tax revenues yet they’re up shit creek financially.
NJ has had a problem with runaway, inflated property taxes for most of the last decade. Corzine’s first campaign was build on a pledge to lower property taxes 10% a year. Of course, he never got the rate lowered by even a fraction of a percent and this, along with his Guvmint Sachs connection, helped sink his re-election. The reason I bring up NJ is that for the past several years NJ and CA have been in a “competition” to see which state imposes highest cumulative tax burden on its citizens.
It’s also interesting to note that in mid-2008, the L.A. County Tax Assessor wrote an Op-Ed for the L.A. Times explaining that Prop 13 was actually beneficial to local governments because its 2% a year annual increase provision built an ever-increasing floor under revenues. So even though local governments don’t get the temporary, huge, fluctuating bump in property taxes during real estate booms, they don’t suffer a complete collapse during the inevitable bust periods that follow.
A final note: without Prop 13, during real estate bubbles, even though your property’s actual live-in value to you as a domicile doesn’t increase, your property taxes go up astronomically. However, when the boom goes bust, you don’t get any of that money back. With Prop 13, the base assessed value of your house goes up a set amount, year-in and year-out, regardless of what your moron (current or former) neighbors did. You didn’t pay a penalty for their property speculation, their subprime liar’s loan, etc.
Prop 13 does a whole lot of stuff, including restricting local property taxes to 1% of assessed value. It also treats residential and commercial property equivalently.
One progressive proposal would be to retain Prop 13 protections on assessed value increases and the 1% limit for residential properties, but to lift the restrictions for commercial properties. Many of downtown SF’s big buildings have not changed ownership in 30 years because they’re held in trusts and court rulings have favored corporate interests. This means that these lucrative buildings do not pay their fair share. The split roll would rectify this problem.
In the old days, state and local government would decree new valuations and tax rates at will. That will never happen again in California for residential properties.
The other issues involve 2/3 to pass revenue, which had been successfully whittled down to 55% for school finance measures, and the 2/3 to pass the budget. This means that 2 seats in the State Senate which swing Republican control the entire $100b+ budget, total antidemocratic insanity. That said, the Democrats do need that kind of a check on their tendencies.
Democratically, I’d like to see no law pass that imposes a supermajority on future comers unless it passes with that majority itself.
Our government is based on 1950s revenue models, we need to think of new ones that are designed for the economy we currently have and for future economic growth that further California values.
!Q@#$%^&*()
And to the extent that spending is the problem, I think that we need look no further than the California Department of Corrections and insane CCO and police salary and retirement packages for the black hole.
Stuff is more expensive now. We know that we have to actually build stuff to seismic codes and we’re competing with the rest of the world for materials.
And, yeah, we want to take the environment into account, and for the time being must do so via CEQA which sucks.
CA used to be at the top of per pupil funding, now it is at the bottom, clearly not spending enough. That lack of investment is one that will cost in the “out years.”
Most of us around here don’t want to see government lead the way in a race to the bottom for California’s working families. Most of us disagree with the economic policy of the past 30 years that has allowed financialism to consume the economy, doubling the population while halving the number of good middle class jobs.
To the extent that government yanks the rug under some of the most adequately paid grunt workers, it slaps all working Californians in the face. But had labor done its part, and bought working Californians into the relative prosperity they enjoy instead of reveling in benefit packages few of us will ever know, had they generalized demands for livable wages and benefits, then they’d not be isolated and vulnerable.
The tax rates in the 50s and 60s when the Golden State was built would give anyone to the right of Barack Obama conniption fits, combined rates around 90%. Ever since the Reagan tax revolts of the 1970s and Prop 13 then Prop 218, that goose has long since been killed and those eggs revealed as fools gold.
We deserve the government that we can make the wealthy and corporations pay for to do our bidding.
The prison guards and the police have so much power because they can pull the ‘soft on crime’ bit out every time they want something. (Look at the stuff the police unions endorse, and how they do it.) I don’t think any other unions can get away with that, including the teachers and the nurses.
There are very few states that are going to come through the next couple of years unscathed. New Jersey currently has the highest debt to population ratio. Even higher than California. Pennsylvania has one of the most useless corrupt, pension oversight systems around. New York is run by Wall Street.
So now states are seeing dramatically lower tax revenues, previously depleted pensions that can’t be funded because revenues are down and very few politically safe ways to raise taxes. The currently popular idea that we will just spend our way to prosperity could even have an very slim chance of working if it were narrowly targeted to improving middle-class jobs and helping very small businesses to prosper enough to hire help while raising tax revenues on corporations and the wealthy. Since none of these things will happen spending will just lead to greater governmental debt on all levels, even fewer jobs and lower tax revenues.
The Federal government can play their game in great part because of their opaque application of fiat currency. The states, their employees, and the services they provide, on the other hand, can only play hot potato for a while longer and then the devil will have his due.
It is fairly clear that the furlough idea is a desperate attempt to kick the can down the road for just another year or so. They want to create the impression that things are manageable until election time so that next crew can argue that the whole thing is not their fault.
“I ran outta gas! I had a flat tire! I didn’t have enough money for cab fare! My tux didn’t come back from the cleaners! An old friend came in from outta town! Someone stole my car! There was an earthquake! A terrible flood! Locusts!! It wasn’t my fault I swear to God!!!”
This is great news for me. I work in state government and they have started layoffs. They only apply to departments funded from state revenues. The program I work for gets state and federal money in nearly equal measure, so maybe my dorky little job will either stick or be one of the last to go.
Even better, of course, would be not cutting any jobs. Only solution I know of to that problem is to put better people in local government who would find ways to cut costs without doing it at the expense of working families.
I’d also point out that this decision doesn’t effect most California employees who are not funded by Federal Funds or set-asides. University lecturers and school teachers aren’t part of the decision.
Awwwnold can’t do what He did in the movies.