Tuesday, March 30. Good morning, here is the top of the news in California.
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Governor appeals court order ending unpaid ‘furlough Fridays’ this week
Governor Schwarzenegger has asked an appeals court to delay a lower court order that would end his “furlough Friday” program this week. Experts say the appeals court will probably act quickly. The lower court ordered an immediate halt to the unpaid days off for about 75,000 state workers whose agencies are funded by sources outside the deficit-ridden general fund. The next of those unpaid days off is scheduled for Friday.
San Jose says 10% of employees will lose jobs unless unions OK pay cuts
San Jose will lay off at least 658 employees, 10% of its workforce, and reduce a wide range of services, including police patrols, unless unions agree to pay cuts, the city manager said. A proposed 10% pay cut would only reduce the city’s $116 million gap between revenues and projected expenses by $63 million, a report from the manager said. A union official blasted the “outrageous reductions” cited in the report and said the city should instead “transfer revenue from special funds.” City officials complained that unions have failed to make formal counterproposals.
Crime advocates sue in San Diego to block early releases of inmates
Crime victim advocates have filed suit in San Diego challenging a law that would ease prison crowding and save the state $500 million by releasing 6,500 inmates early. The suit filed by Crime Victims United says the law violates a provision of voter-approved Proposition 9 designed to prevent early releases. A prison official said that the law does not violate Proposition 9 and said the state will not release sexual predators and other violent criminals. The law shortens sentences of inmates who attend vocational classes or earn a high school diploma. The state has yet to free inmates early but county jails have released hundreds in response to the law.
Marin bucks trend, plans tax, fee increases to help close budget gap
Bucking an anti-tax mood in other parts of the state,Marin County is planning to increase fees and taxes to help close a $20 million gap between revenue and projected spending for 2010-2011. The county will also cut spending $12 million with a variety of actions including elimination of 170 vacant employee positions. Voters will be asked to approve a $49 library tax in June. The county is also planning on increasing many fees, including those for legal documents, park services and inspections. The increases would raise $1.5 million.
Los Angeles electric rate increases scaled back at least temporarily
A plan to increase electric bills in Los Angeles as much as 28% over a year is likely to be scaled back at least temporarily. Mayor Antonio Villaraigosa has agreed to a plan to put three of four proposed increases on hold while implementing the first, which would add 6% to residential bills and 7% to business bills. Businesses have complained they will be forced to lay off workers if their rates are increased the full 22% originally proposed. The rate increases would be used, in part, to pay for renewable energy the mayor wants to use to replace cheaper but dirtier coal-fired plants.
Budget woes stall 16,000 housing units, many of them for the poor
Plans to build 16,000 housing units, many of them for the poor, have been stalled since July, collateral damage in the state’s budget battles. Voters approved nearly $3 billion in bonds for 121 projects in 2006. A first series of projects is under construction but the second stage has fallen victim to a combination of budget-related causes, including the closing of an agency that provided bridge loans and a reluctance of investors buy bonds offered by the deficit-plagued state. The state finally put the $714 million in bonds for the projects on sale last week.
Unemployed could begin receiving debit cards, direct deposit in fall
The state’s unemployment insurance office plans to begin making payments in the fall using direct deposit and electronic debit cards instead of mailing checks. The Employment Development Department mailed 41 million checks last year as the number of people receiving unemployment benefits soared to1.5 million. Electronic payments would be cheaper and could be safer, EDD says. The unemployed would use debit cards at ATMs and businesses. Federal officials say recipients are being charged unfair fees to use the cards in some of the 43 states that use electronic payments. EDD says there will be no charges in California.
Youth prison agency says it has reduced violence, increased education
The state’s youth prison agency says it has cut down on violence and improved its education programs dramatically in response to a court order that grew out of a lawsuit filed six years ago. A new state report says inmate credits for good behavior have more than doubled while the number of inmates who have sentences lengthened for discipline problems has dropped 73%. The number now in education and vocation programs has tripled, according to the Department of Corrections and Rehabilitation’s Juvenile Justice Division. A critic of the system said it had made “substantial improvements” but said “they still have major hurdles to overcome.”
Part-time legislature ballot measure falls short
An effort to return to a part-time Legislature has failed to gather enough signatures to qualify for the November ballot. Backers said they raised only $30,000 but gathered half of the 700,000 signatures needed to qualify. The measure would have limited the Legislature, which now meets nearly year-round, to 95 days per year and cut salaries of lawmakers in half.
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Sources
- Marin Independent-Journal
- San Jose Mercury News
- Los Angeles Times
- Sacramento Bee
- San Diego Union-Tribune
- San Francisco Chronicle
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Monday, March 29. Good morning, here is the top of the news in California.
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State’s jobless rate stays at record high but economists see bright spots
California’s unemployment rate stayed at a record high 12.5% as employers cut payrolls by 20,400 jobs in February. Economists said that despite those numbers, the state’s economy appeared to have hit bottom and may even be growing. Businesses, uncertain about the strength of a recovery, remain hesitant to add to their payrolls, Workers who had been on the sidelines are beginning to again seek jobs. Many employers, however, are increasing production using the current employees and temporary help rather than hiring permanent employees. The 12.5% jobless rate was the same as in January but 2.3 percentage points higher than the 10.2% rate of February, 2009.
Backers, critics debate costs and benefits of ‘green’ industry tax break
Governor Schwarzenegger says the state won’t lose money because of a new law that exempts companies from paying sales taxes on green technology purchases. Critics, including a UC Berkeley economist, say that’s unlikely. The bill is designed to lure solar, wind and other green industries that create jobs and new products to battle global warming – and in the process generate new tax revenue. A state analyst said the law would have cost $13.5 million in tax revenue if it had been in effect year. Critics say because their impact is difficult to predict small tax breaks can quickly become big ones. An “enterprise zone” tax credit costs the state $400 million a year.
Short sales will run up big bills if state doesn’t renew income tax break
An estimated 35,000 Californians face tens of thousands of dollars each in additional state income taxes unless Governor Schwarzenegger and the Legislature agree on how to treat real estate “short sales.” In those deals, homeowners sell their homes for less than their mortgage balance and the lender forgives the bill. That amount, at times hundreds of thousands of dollars, would be treated as income unless state law is revised. Federal law exempts that money from the income tax. So did California for 2007 and 2008 but not for 2009. Experts say the tax break may be renewed, but not before the April15 tax filing deadline.
Teachers, administrators union leaders agree to shorter school year in L.A.
Leaders of Los Angeles public school teachers and administrators unions have agreed to shorten the school year to save 2,100 jobs. The move will cut $140 million from the school district’s $640 million budget deficit. State aid is usually tied to the number of school days but a new law gives local districts full funding even if they shorten the school year. The Los Angeles district will cut five days this year and seven next year. That will mean less pay for employees but unions expect members to approve the deal because it will prevent layoffs of teachers, administrators, nurses and counselors.
Sacramento teachers union resists concessions despite prospect of layoffs
The leadership of the Sacramento public school teachers union is resisting calls for concessions in the face of a $30 million budget deficit next year. The district superintendent says hundreds of teachers will likely lose their jobs and class sizes will increase unless the union accepts concessions that could include a three day shortening of the school year and cuts in benefits. Union leaders are refusing to reopen a contract that continues through the next school year. Dozens of teachers told the Sacramento Bee that they are willing to accept cutbacks despite the opposition of union leadership. Teachers who favor concessions include younger ones who would lose their jobs because layoffs are based on seniority.
Paroling comatose inmates could save millions, prison health czar says
A proposed medical parole law could save the state at least $213 million over five years by releasing 32 comatose and other severely incapacitated inmates, according to J. Clark Kelso, the court-appointed receiver who runs California prison health care system. The state could save an additional hundreds of millions of dollars a year by releasing hundreds of more prisoners who are similarly severely disabled, according to Sen. Mark Leon, author of the bill. The state now spends more than $100,000 each on 1,300 of these inmates annually. The costs would be shifted to the federal government after the inmates are paroled.
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Sources
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Sacramento Bee
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Fresno Bee
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Los Angeles Times
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San Jose Mercury News