California’s Next Governor Faces Four Years of Fiscal Hell

The first term of California’s next governor will be a fiscal nightmare with a cumulative budget shortfall over four years of nearly $83 billion, according to the fiscal forecast released November 18 by the Legislative Analyst. 

During his last year in office, Gov. Arnold Schwarzenegger and the Democratic majority Legislature face a $21 billion gap between revenues and spending commitments, a problem whose solution is made more difficult by the political timidness that usually marks election years.    Read more »

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Some Facts About the Golden State’s Constitution

According to the State Archives:

At 65,000 words, California’s current constitution is one of the longest in the world. 

One reason is that the constitution has been amended 503 times from 1880 to 2000.

By contrast, the state’s first constitution — approved by the delegates of California’s first constitutional convention on October 13, 1849 after 37 days of debate in Monterey — was amended only three times in 30 years: 1856, 1862 and 1871.     Read more »

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“Easy,” “Prudent” and “Likely” Ways to Balance the Budget

(Editor’s Note: At a meeting with the Fresno Bee editorial board on November 9, Gov. Arnold Schwarzenegger said the state will end the current fiscal year, which concludes June 30, 2010, between $5 billion and $7 billion out-of-balance. The GOP governor’s Department of Finance, based on July revenue estimates, predicts the budget for the fiscal year beginning July 1, 2010 already has a $7.4 billion gap between revenue and spending commitments.    Read more »

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Legislation Becomes Law to Aid Small Business Loan Program

In an October 7 post, California’s Capitol discussed legislation pending in the Senate allowing the state’s Small Business Loan Guarantee Program to continue guaranteeing loans.

During the final throes of budget negotiations in July, the loan program, whose supporters say is one of the few positive things the state does for small businesses, was added to a list of entities whose unencumbered funds were to be swept into the state’s cash-starved general fund.    Read more »

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Major Recycler Sues Over Beverage Container Fund Insolvency

California’s largest single recycling services provider sued the state November 9 claiming $416 million in so-called loans made to the cash-starved general fund from the Beverage Container Recycling Fund are illegal and must be repaid.

In a lawsuit filed in Alameda Superior Court, Tomra Pacific Inc., which operates nearly one-third of the state’s 1,200 supermarket parking lot recycling centers, claims the loans have driven the recycling fund into insolvency, causing the state Department of Conservation to eliminate payments to recyclers and irreparably harming the state’s 23-year-old effort to reduce can and bottle waste.    Read more »

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State Water Board Gains Some New Powers and Hard Tasks

Charlie Hoppin almost became one of the most powerful persons in state government.

He has plenty of power as chairman of the State Water Resources Control Board but the Yuba City rice farmer was going to be presiding over a body with significantly greater powers to halt water scofflaws – at least when the recently concluded special session on water began in late October.    Read more »

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“Historic” Water Bond Would Contribute to Historic Debt

Passage of an $11 billion water bond by the Legislature comes just a few weeks after the state treasurer warned that lawmakers cannot keep issuing debt willy-nilly and need a master plan to set priorities for its issuance.

Apparently, lawmakers didn’t read the treasurer’s report on debt levels.

The water bond, which began at $9.4 billion in the Senate and was inflated to $11 billion in the Assembly, is part of what Gov.    Read more »

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Setting Records for Legislative “Extraordinary” Sessions

At seven, the California Legislature has a record number of special sessions this year.

The previous record was five during one two-year legislative session and, now with the special session on water, lawmakers are at seven –in just this year alone.

These “Extraordinary sessions,” as they’re known, are called by the governor to focus legislative attention on a particular issue.    Read more »

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Legislature to Governor: Don’t Smoke ’em If You Got ’em

Occupying legislative office space above the central courtyard of the governor’s office and Gov. Arnold Schwarzenegger’s smoking tent can be a drag – literally – a drag off a bunch of big cigars.

Smoke crawls up the chimney-like enclosure and enters the Capitol ventilation system, infusing the upstairs offices with a very pronounced eau du cigar.    Read more »

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The San Francisco Symphony Gets a Break Under New Law

Champagne corks will be popping at the San Francisco Symphony November 2 – Gov. Arnold Schwarzenegger signed legislation allowing the symphony to accept monetary contributions and alcoholic beverages from makers of beer, wine and distilled spirits.

A small portion of the symphony’s facility has a retail license to sell alcohol, which prevents them from accepting alcohol from manufacturers under California’s “tied house” laws.    Read more »

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