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LOS ANGELES Friday, May 29th 2015 6:58

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  • WHO WE ARE-Earlier this month, I arrived in San Diego following five days of driving across the country from Wisconsin. I pulled into my friend’s driveway, brought my things inside, and went back to my car to park it on the street. Almost immediately, a cop’s siren and flashing lights went off. I’d left my license in my friend’s apartment, so I…
  • The Hunting Ground: Human Truths of Campus Rape

    Susan Rose
    CALIFORNIA MOVES AGAINST RAPE-On May 13, California moved aggressively against rape on campuses, issuing a directive to all state colleges to “notify authorities when a sexual assault is reported.” Attorney General Kamala Harris and U.C. president Janet Napolitano jointly issued a set of guidelines to encourage collaboration between campuses and…
  • Santa Barbara Spill Underscores Why We Can’t Allow Arctic Oil Drilling

    Ryan Schleeter
    PLANET WATCH-Last week, a major oil spill in Santa Barbara County made headlines after a ruptured pipeline dumped as much as 105,000 gallons of crude oil on the California coastline. The spill stretches across roughly nine miles of state beach with tens of thousands of gallons entering marine protected areas in the Pacific Ocean. The spill took…
  • How Will David Ryu Honor His Campaign Pledges?

    Jack Humphreville
    LA WATCHDOG-In a race that focused on local issues, outsider David Ryu (photo) outpolled City Hall insider Carolyn Ramsay by almost 10 points (54.8% to 45.2%), representing a margin of over 2,300 votes. Yet, since less than 16% of Council District 4’s 153,000 registered voters bothered to vote, Ryu was supported by less than 9% of those eligible…
  • $15 an Hour: If This Ain't Socialism, Then What SHOULD We Call It?

    Ken Alpern
    CONSIDER THIS-Funny how when you accuse, or even suggest, to a liberal (or is it "progressive"? or is it "reformist"?) that he/she is socialist, they get all bent out of shape. One reason that Senator Bernie Sanders of Vermont is so respected is that he says it like it is--he's a sincere socialist who means what he says and says what he means. One…
  • California Dreaming: Booms to Busts, the Optimists are Still Searching for the Gold

    James Preston Allen
    AT LENGTH-At a meeting I attended recently with the management of the Port of Los Angeles, a civic leader voiced his enduring optimism for a bright and successful future. I gave the unsolicited reply, “an ounce of skepticism is worth a pound of optimism.” Others at the meeting said aghast, “Oh, no. How would anything ever get accomplished?”…
  • LA’s Homeless: Not a lost Cause

    Denyse Selesnick
    MY TURN-I was both surprised and rather pleased about the reaction to my recent article. Apparently, many people in Los Angeles are realizing that the Homelessness isn’t just City Hall’s challenge but affects all of our neighborhoods. Even more important, it doesn’t just affect us economically but impacts our sense of humanity and fair play. Yes,…
  • Senate Race: Choosing Kamala or Loretta Comes Down to North vs. South … California

    Joe Mathews
    CONNECTING CALIFORNIA-Are you a Kamala or a Loretta? Attorney General Kamala Harris and Congresswoman Loretta Sanchez—the two leading candidates for the state’s open U.S. Senate seat next year—confront Californians with a choice. But it’s not a choice about competing policies or political visions. Californians don’t have political arguments about…
  • From Tragedy, Healing

    Mike Newhouse
    GUEST WORDS-In the days after Brendon Glenn was killed, in the heart of Venice, I was starkly reminded of one of our community's biggest challenges. But, my perspective may surprise you. What first came to mind was not how we police. It was not about racism or homelessness. It was not about mental illness, or the insidious nature of drug or…

 

  • Can Strawberries Help Fight Cancer?

    Christian Cristiano
    WELLNESS-There have been a number of studies over the years that could show evidence of strawberries fighting off cancer. Tong Chen lead a study…
  • Study: The Best Way to Quit Smoking … Bet On It

    Francie Diep
    WELLNESS-Oftentimes, money speaks louder than words. Apparently, that aphorism applies to cigarettes too. A new study finds that money incentives…
  • Exercise Can Help Anxiety … Here’s How

    Christian Cristiano
    WELLNESS-Statistics show that over 3 million American adults suffer from anxiety and there is no evidence that number will be declining any time…




Alert! World’s 10 most dangerous animals

Smashing good job. World’s leaders beating each other up

Trevor Noah warming up for takeover of the Daily Show

 

 

 

 

  

 

 

 

Jerry Brown Pulls a Nixon

CALIFORNIA FINANCIALS - “Only Nixon could go to China” is a political metaphor referring to the ability of a politician with an unassailable reputation among his supporters for staunchly representing and defending their values, to take actions that would draw vicious criticism and fierce opposition if taken by someone without those credentials.
With California’s financial condition in free fall, ultra-union friendly Gov. Jerry Brown demanded public-employee unions cut  compensation by 10 percent.  If the People’s Republic of California is adopting fiscal responsibility, perhaps America can too.

For unions, Jerry Brown has been the governor who always kept on giving.  In 1977, he approved the Dills Act, collective bargaining for California government workers.  Last November, he signed SB 922, protecting “project labor agreements” that force non-union workers to apply for union membership, and pay dues, in order to work on public projects.

While predicting a $9.2 billion budget deficit in January, Brown sought to protect public service union jobs by cajoling private sector retailers to support a voter initiative to raise sales taxes. As state tax revenue had fallen by $4.9 billion in February, Brown focused on raising $630,000 in contributions for his tax increase initiative from unions, Indian tribes and crony capitalists.  As revenue continuing to fall last month, Brown extended union contracts representing tens of thousands of workers that increased the state’s health benefits by 9.5 percent.

Brown’s good-old-boy support for his union brothers and sisters may have come to a screeching halt as California State Controller John Chiang published a devastating April Financial Statement showing monthly income, sales and corporate tax revenue came in 20.2 percent below the governor’s latest projections; and sales tax collections fell by an astounding 61 percent below last year.

Looking closer into the numbers, California missed the national economic recovery.  As U.S. Gross Domestic Product grew by 2.2 percent, California employment grew by only 1.3 percent.  Given that the workforce expands by 1.5 percent annually as more young people begin looking for jobs, this explains why California unemployment rose to 11 percent in March from 10.9 percent in February — as U.S. employment fell to 8 percent.  Chiang ominously stated:

“Without a timely, financeable budget plan, the State will be unable to access the working capital needed to pay its bills later this year.”

This is bureaucratic speak for: We are insolvent, our credit rating should be junk and we will default when we can’t borrow any more money!

Standard & Poor’s, in a new credit report last week, warned that California lawmakers’ resistance to steep cuts in welfare and health care programs is to blame for failure to balance the state budget:

“As the most important month of the year for [income tax] collections, April receipts are not only failing to solve part of the state’s projected problem, they are deepening the estimated budget gap.”

With the state needing to borrow $20 billion in July to finance operations until collecting property payments in mid-December, this is S&P speak for: We will cut your rating.

California rolled over an $8.2 billion deficit from last year’s budget disaster and this year’s growing deficit has forced the state to increase borrow another $7.7 billion.

The state did cut $1.8 billion, or 8 percent, from operations; and school funding was flat this year. But spending on health and human services jumped by a stunning $3.7 billion, or 6.2 percent.

President Richard Nixon had a reputation as the leader of hardcore Republican anti-communists when he announced he was going to improve relations with China by personally visiting the country in 1972.  No Democrat at the time could have absorbed the political blowback of such a spectacular change in America’s foreign policy.  Over the next 40 years, America and China have become each other’s most important trading partners

Just as Richard Nixon was the strongest ally of anti-communists, Jerry Brown has been the strongest ally of public-sector unions.  Chief Executive Magazine’s survey of best and worst states for business ranks California dead last.  According to one CEO:

“The leadership of California has done everything in its power to kill manufacturing jobs in this state. As I stated at our annual meeting, if we could grow our crops in Reno, we’d move our plants tomorrow.”

Given that high taxes and onerous regulatory enforcement were championed by Brown in California and then spread out across the nation, Brown is best positioned to unwind these job killers.  When Jerry Brown told state employee union leaders his next budget would include a 10% cut in state worker compensation, there has been little opposition.  

Perhaps California’s financial distress may require Jerry Brown to be America’s pro-business governor.

(Chriss Street is nationally recognized financial writer. His latest book, “The Third Way,” now is available on  www.amazon.com Read more of Chriss Street and reach him at chrissstreetandcompany.com)

-cw

Tags: Chriss Street, Richard Nixon, Jerry Brown, China, John Chiang






CityWatch
Vol 10 Issue 39
Pub: May 15, 2012

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