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Archive for June, 2010

Could Be Marijuana That Determines the November Election

The wild card in November’s election is marijuana.

How much more money Meg Whitman spends on her gubernatorial campaign is significant but the kind of voters drawn to the polls by Proposition 19, which legalizes marijuana and allows localities to tax and regulate it, may be the determining factor.

Asked at the state Democratic Party convention in April how Democrats can re-energize President Obama voters from 2008, Party Chair John Burton replied: “Pot.”

Without arguing the merits of legalization, Burton said the ballot measure “will turn out people.”

The already high-profile proposition would allow cities and counties to adopt ordinances that license and regulate the “cultivation, processing, distribution, transportation and sale” of marijuana.

Some estimates say taxing retail sales, which are limited to one ounce to persons 21 years of age or older, could raise up to $1.4 billion annually.

“There will be national media interest and public curiosity,” said Mark Baldassare, president and chief pollster of the Public Policy Institute of California.

“The question is how much the campaigns will work to engage voters,” Baldassare said. “Will the ‘yes’ side seek to mobilize young voters who are more inclined to support legalization? Will the ‘no’ side counter with efforts to get out the vote among older voters less inclined to support legalization?”

Supporters of Proposition 19 say no mobilization is necessary – the voters are coming to them.

The “yes” campaign recently noted its number of Facebook friends surpassing 100,000. Proposition 19 supporters note the opposition has only six Facebook friends.

“This will translate into motivated volunteers, donors, increased voter turnout and 100,000 people spreading the word to their friends and neighbors with a passion and intensity that our opponents’ lonely six fans will never match,” said Dan Newman, a spokesman for Tax Cannabis 2010.

“Our research shows that a large number of occasional voters, particularly younger voters, will show up at the polls specifically to vote for this initiative,” Newman said.

An April 2009 Field Poll found 56 percent of California voters supporting legalizing and taxing marijuana. But Newman counters the appeal of the proposition to “low-propensity” voters means polls don’t show the full level of support.

“It will be the darling of the national media, that’s for sure,” said Allan Zaremberg, president of the California Chamber of Commerce.

One of the proposition’s major sponsors is S.K. Seymour LLC in Oakland, which does business as Oaksterdam University which bills itself as “America’s first cannabis college.”

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June Taxes $200 Million Above Estimates, No Budget Near

June tax collections appear to be roughly $200 million over estimates as California reaches the end of the month with no budget in sight for the new fiscal year that begins July 1.

The higher than expected revenue eases slightly the state’s cash shortfall of $17.9 billion.  But agreement on how the rest of the cash hole is filled remains elusive.

Through June 29, income tax payments totaled $6.1 billion, $600 million more than Gov. Arnold Schwarzenegger estimated in his revised budget released in May.

Of that, $2.9 billion was withholding – the taxes businesses subtract from employee paychecks – which is sent to the Employment Development Department. There are no more withholding payments for June.

The remainder of the income tax receipts was payments to the Franchise Tax Board.

However, requests for refunds must be subtracted. Those requests totaled $332 million through June 24.

Bank and corporations tax collections fell $100 million short of the $2.1 billion the GOP governor expected, also lowering the state’s net total.

Combining the two revenue streams, totals $7.8 billion for the month, roughly $200 million above projections.

Because of changes made in last year’s budget, June, rather than April, has become the most significant revenue collection month of the current fiscal year.

To pull more future income into the current and previous fiscal year, the 2009 budget front-loaded estimated tax payments so that 40 percent, rather than 25 percent, come due in June.

Without a budget in place on July 1, the state controller can still cut checks for much of state government, as his website shows.

For example, programs required by the federal government will still be funded. Those include payments made to the state’s low-income aged, blind and disabled and in-home care for California’s elderly poor.

Welfare and Medi-Cal, the state’s health care program for the poor, will also continue to receive appropriations.

Debt service and refund checks for taxpayers will also be covered, as will be payroll for most state employees.

State elected officials, including the Legislature and their appointed staff will not be paid until a budget is signed. Nor will businesses providing services to the state after July 1.

State Controller John Chiang is the defendant in a lawsuit brought by Schwarzenegger challenging Chiang’s refusal to implement a 2008 executive order by the GOP governor to reduce the pay of most state workers to the federal minimum wage, now $7.25.

The executive order applies to state workers covered by the federal Fair Labor Standards Act. There are 314,184 state workers covered by the act and 73,194, California State University employees.

A Sacramento appellate court heard oral arguments on the case June 21. A trial court previously ruled in the governor’s favor.

It’s unclear when the appeals court will issue its ruling although Chiang contends it will be costly and probably infeasible to adjust the state’s antiquated 40-year-old payroll system, scheduled for decommissioning in 2012, to reduce pay to the federal minimum. Doing so, Chiang also argues would violate federal labor law.

It is likely Chiang will continue paying state workers their normal wage absent a ruling against him by the state supreme court.

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Asbestos Risks Drive Bid To Dump California’s State Rock

Normally, lawmakers carry legislation to add something to California’s list of “official state” symbols.

But in an unusual twist, a Los Angeles state senator wants to remove an item.

Not the dogface butterfly, California’s official state insect. Not the Golden State’s official song, “I Love You California,” words by Los Angeles merchant F.B. Silverwood, music by Alfred Frankenstein, which few people have heard of, let alone sung.

California’s state grass — nassella pulchra, or purple needlegrass – so designated in 2004, is also safe.

Sen. Gloria Romero, a Democrat, and the Asbestos Disease Awareness Organization want serpentine to no longer be California’s official state rock, a designation it has had for 45 years.


Serpentine is not unique to California although some plant species dependent on serpentine soils are. It is a mottled, dull green rock that, as the name suggests, is reminiscent of a snake’s skin.

It also contains chrysotile asbestos, exposure to which can increase the risk of mesothelioma, a cancer most commonly concentrated in the lungs.

Alan Reinstein, husband of Asbestos Disease Awareness Organization co-founder Linda Reinstein, died of mesothelioma in 2006. The organization is spearheading what it calls the “Drop the Rock” campaign to remove serpentine from the “official” list.

Reinstein and Romero’s eight-paragraph measure, SB 624, say “California should not designate a rock known to be toxic to the health of its residents as the state’s official rock.”

Romero’s bill would amend Section 425.3 of the Government Code, striking out “serpentine” and leaving a blank future legislators can fill with a new “official state rock and lithologic emblem.”

The Assembly Natural Resources Committee approved the bill June 22.

In 1965, California was the first state in the nation to create an official state rock. It did so in SB 265 by Sen. Luther Gibson, a Vallejo Democrat who had been a member of the upper house since 1948.

A newspaper publisher, Gibson founded the Vallejo Herald in 1922. His official 1957 Senate biography says that at the time he also published the Evening News-Chronicle, Sonora Union Democrat, Travis Global Ranger and Benicia Herald.  He carried the legislation creating the Carquinez Bridge, the first bridge across the bay, and what’s now known as the Martinez Bridge. He also carried legislation creating the state Maritime Academy in Vallejo.

The section of Interstate 680 connecting Interstate 80 in Fairfield to Interstate 780 in Benicia is named after Gibson. It includes, at his insistence, an off ramp to his duck club. He died at 93 in 1988.

Gibson’s bill also made gold California’s official state mineral.

In an April 14, 1965 letter urging Gov. Pat Brown to sign Gibson’s bill, DeWitt Nelson, head of Brown’s Department of Conservation, wrote:

“Serpentine indirectly is of great economic importance to California. It is a host rock for the state’s newest and most rapidly growing mineral industry – asbestos, now bringing in several millions of dollars annually.

“Designating serpentine as the state rock will increase the market for such items and improve the local economy in a number of places.”

Brown signed Gibson’s measure on April 20, 1965.

Romero is no stranger to legislation regarding official state designations.

In 2002, she objected to a bill that would give Bodie, a once bustling Mono County town now in ruins, the title of California’s official ghost town. Students from Lee Vining Junior High School, about 30 miles from Bodie, suggested the idea. Romero, who grew up in Barstow, often visited nearby Calico, a former silver mining town turned tourist attraction. She credits Calico with giving her a sense of California history.

Gracing Bodie with the “official” title might be bad for Calico’s business, she and San Bernardino County supervisors decided. The Bodie bill was killed.

But in the final two weeks of the legislative session the measure was revived as part of what then Sen. Debra Bowen, a Marina del Rey Democrat, called the “Great Ghost Town Compromise of 2002.”

San Bernardino county officials said they wouldn’t object to Bodie being “a” ghost town, just not “the” ghost town. Under Bowen’s compromise, Bodie was designated California’s official “Gold Rush” ghost town.

Calico, in future legislation, would become the state’s official “Silver Rush” ghost town.

Then Gov. Gray Davis signed the Bodie legislation in September 2002. Gov. Arnold Schwarzenegger signed the Calico measure in 2005.

One of the highest profile attempts to add to the list occurred in 1988 when a group of Redwood City Campfire Bluebirds convinced then Assemblyman Byron Sher, a Palo Alto Democrat, to carry legislation making the banana slug the official state mollusk.

Then Gov. George Deukmejian vetoed the bill, saying the measure was “not representative of the international reputation California enjoys.”

The measure drew so much coverage — statewide and internationally — that a study was conducted to compare the amount of media attention the slugs got compared to that year’s budget.

Banana slugs in a landslide.

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Bumper Sticker — “Snowmen Against Global Warming”

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June Tax Receipts Still Falling Short of Revenue Projections

With five days left in the month, state tax receipts for June are $211 million short of revenue projections.

In his revised budget released in May, Gov. Arnold Schwarzenegger estimated more than $5.5 billion in income tax revenue and $2.1 billion in bank and corporation tax payments for June.

If June payments come in above estimates, the state’s $17.9 billion budget hole shrinks. Below estimates, it deepens.

Through June 24, the Franchise Tax Board reports $3.1 billion in income tax payments and $2 billion in bank and corporations tax receipts.

The Employment Development Department to which businesses send withholding – the taxes subtracted from employee paychecks – has received $2.5 billion.

Refund requests total $189 million.

Income tax payments less refunds equals a little over $5.4 billion — $111 million below projections by Schwarzenegger’s Department of Finance.

It’s unclear whether bank and corporations tax receipts will reach $2.1 billion.

Collections are sputtering as the month winds own. For example, on June 23, $87 million in income tax payments were logged. On the 24th, $26 million.

Similarly, bank and corporations tax payments fell from $22 million to $7 million over the same two days.

Because of changes made in last year’s budget, June, rather than April, has become the most significant revenue collection month of the current fiscal year, which ends June 30.

To pull more future income into the current and previous fiscal year, the 2009 budget front-loaded estimated tax payments so that 40 percent, rather than 25 percent, come due in June.

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Going from a Circus to an Amusement Park…

A Day at the Disneyland® Resort

with

Assemblyman

Curt Hagman

Saturday, August 14th,  2010

Join Assemblyman Curt Hagman and his family for a fun-filled day at Southern California’s premier destination.

Come for lunch at Disney’s Grand Californian Hotel® & Spa, enjoy a day at the Disneyland® Resort with VIP experiences and you can even choose to stay the night at Disney’s Grand Californian Hotel® & Spa

$1,500 Family Package

Includes 4 lunch tickets and 4 Disneyland® Resort Tickets

$3,900 Deluxe Package

Includes 4 lunch tickets, 4 Disneyland® Resort Tickets and a one night stay at Disney’s Grand Californian Hotel® & Spa

Guest rooms need to be reserved by July 15th

*Additional Lunch & Disneyland® Resort Tickets can be purchased*

Space is limited so RSVP early. Detailed information will be given once you RSVP.

For more information, please contact Marian Nelson at

(909) 945-5735 or by email at nelson_m@verizon.net

Please make checks payable to:

Hagman for Assembly, ID# 1314493

PO Box 9236, Alta Loma, CA 91701

Personal, corporate and business checks are acceptable under campaign reporting requirements. Contributions are not deductible for federal or state income tax purposes. Contributions are limited to $3,900 per individual or entity per election.

Here’s What Voters WIll Be Facing on the November 2 Ballot

June 24 is the last day for the Secretary of State to determine if an initiative qualifies for the November ballot.

Any initiative qualifying after that date appears on a subsequent statewide ballot. Under normal circumstances, June 2012.

On the final day, an initiative backed by the California Teachers Association to repeal three tax breaks approved as part of the 2009 budget qualified as did a measure lowering the approval needed for a budget from two-thirds to simple majority, one to eliminate the 14-member redistricting commission approved by voters in November 2008 and another initiative sponsored by the state Chamber of Commerce increasing the vote required for “levies and charges” to two-thirds.

That brings the number of initiatives on the November ballot to nine – several of them on hot-button topics that likely will affect turnout.

By repealing the tax breaks, the CTA’s measure would put $1.7 billion into state coffers in the fiscal year beginning July 1, 2011. Under the funding formulas of Proposition 98, approved by voters in 1988, public schools receive at least 40 cents of every $1 put into the state’s general fund.

Specifically, the initiative would prevent businesses from applying operating losses to prior tax years and truncate the number of future tax years those losses could be applied to.

Two tax breaks that have yet to go into effect would also be repealed.

One would have allowed affiliated corporations to share tax credits. The other, of primary benefit to Silicon Valley companies and companies doing business in multiple states, would let businesses calculate their California taxes based on in-state sales rather than a combination of property, payroll and sales income.

Republicans insisted on passage of the three to secure their votes for the 2009 budget. They also object to efforts by Democrats in current budget negotiations to postpone implementation of the two for two years.

Here is the initiative’s Full Text.

The initiative lowering budget approval to a majority still leaves two-thirds requirement for tax increases and requires lawmakers to forfeit salary and expenses for every day past June 15 they have not passed a budget. Here is the Full Text

Increasing the vote needed to pass fees to two-thirds is an attempt by the chamber to halt the practice of the Democratic majority Legislature of imposing fees as revenue sources. Fees currently don’t require a two-thirds vote and can’t be blocked by the GOP minority. The Full Text.

Elimination of redistricting commission is sought by California’s congressional delegation which opposes another ballot measure placing the drawing of their district lines in the commission’s hands. It’s Full Text.

Also qualified for the ballot:

Legalization and Taxation of Marijuana. Individuals would be free to grow for personal consumption in a five-foot by five-foot plot. Local governments could tax and regulate sales of marijuana to person over 21 years of age. (Full Text)

Redistricting of Congressional Seats. Takes authority for redrawing district lines  from the hands of representatives and vests in an already created 14-member citizen’s commission. The commission is comprised of five Democrats, five Republicans and four voters registered with neither party. Any newly drawn lines would need to be approved by three Democrats, three Republicans and three unaffiliated members. The main bankroll for the “yes” side comes from Charles T. Munger, the son of Charlie Munger, vice-chair of Warren Buffet’s Berkshire Hathaway. (Full Text)

Ban the State from Taking Funds for Local Transportation and Services. Sponsored chiefly by the League of California Cities, this measure would also prohibit the state from delaying the distribution of tax revenues to local governments even if the governor declares a state fiscal emergency, which is a power the state currently has. (Full Text)

Impose an $18 surcharge on Vehicle License Fees to Support State Parks. This initiative is very similar to a Democratic budget proposal in 2009 rejected by Gov. Arnold Schwarzenegger and Republican lawmakers. In return, Californians would receive free park admission. Commercial vehicles, trailers and trailer coaches are exempt.(Full Text)

Suspend AB 32. Backed chiefly by oil companies the eight-paragraph initiative would suspend the law until California’s unemployment rate drops to 5.5 percent or less for four consecutive quarters. The state unemployment rate in May was 12.4 percent. The suspension would also scuttle state efforts to obtain 30 percent of its electricity from renewable sources by 2020 and create cleaner-burning fuels. (Full Text)

Safe, Clean, and Reliable Drinking Water Supply Act of 2010. This $11.4 billion bond act was placed on the ballot by the Legislature and is strongly backed by the GOP governor.

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Magnanimous In Victory? No, But Compare the Spending Ratio

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A Guest Post from Assemblyman Wes Chesbro of Eureka

Today, June 23,  my Sacramento office has taken one step closer to reflecting the diversity of California and the communities I represent. We’ve hired, full-time, our WE Include intern, Jayleen Johnson.

The WE Include program was created by California First Lady Maria Shriver and Gov. Arnold Schwarzenegger to better integrate individuals with intellectual and developmental disabilities into professional work environments, where they learn skills and forge friendships.

Maria Shriver has been a tireless advocate for persons with developmental disabilities. Jaykleen exemplifies the First Lady’s campaign to change the negative stereotypes into positive images, which Jayleen exemplifies.

When Jayleen was an intern, she performed administrative and office support duties as well as promoting the WE Include program at the Capitol. During her internship, she opened our eyes and minds even wider to the capabilities of people with disabilities.

Best Buddies International was founded in 1989 by Anthony Kennedy Shriver, and has grown in 21 years from the original chapter to an organization with more than 1,500 chapters on middle school, high school and college campuses in the United States and different parts of the world.

The mission of Best Buddies is to establish a global volunteer movement that creates opportunities for one-to-one friendships, integrated employment and leadership development for people with intellectual and developmental disabilities.

A big chunk of their fundraising stems from cycling trips of up to 100 miles. In California, the route snakes down Highway 1 from Carmel Valley to San Simeon.

The First Lady has recruited a group of riders — Team Maria  – who will participate in the “Best Buddies Challenge” on Sept. 11.

(For more information, click on the Team Maria link on the right side of this site.)

Because Jayleen has been such a positive addition to our office, I encourage everyone to learn more about WE Include and Best Buddies International, and participate in the programs.

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From Inside “The More Things Change File,” What’s the Year?

“In XXXX, the state faced a multibillion-dollar budget problem.

Initially responding to … (a) proposal to transfer authority over some mental health and health programs to counties, the Legislature considered aa number of options to simultaneously reduce the state’s budget shortfall and improve the workings of state-county programs.”

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