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THE NOONER for September 9, 2011

[jump to the headlines]

DISTRICT UPDATES

  • AD11 - Added Oakley councilmember Jim Frazier (D)

LIBERATION DAY

TWEET DU JOUR: @ShaneGoldmacher - Steinberg: "If you don't enjoy tomorrow then you belong in a different business." #endofsession

JERRY BROWN, TAX CUTTER: Indeed, there is a lot to get done before the gavel comes down on the first year of the two-year session later today. The biggest may be Jerry Brown's tax package, which was put into ABX1 40, and which squeaked through the Assembly with the support of all Democrats and Republicans Nathan Fletcher and Cameron Smyth.

The package is a stark difference from the budget debate the governor led through the first half of the year, which was focused on the need for increased state revenues. ABX1 40 actually results in a net reduction in taxes in each of the next three years in an effort to focus on job creation in California. Specifically, the bill moves the corporate to a single sales factor, resulting in $926 million in increased revenue in 2012-13, and then spends those tax revenues on seven corporate and personal income tax changes. According to the floor analysis, the package will result in net state revenue reductions of $44 million in 2012-13.  

What is amazing is that this package could easily have been authored by Republicans earlier this year. While it may not meet Grover Norquist's definition of never-ever-never vote to alter a tax structure that might lead to one taxpayer (i.e. out-of-state tobacco companies), it is a huge win for California manufacturers and businesses located in California. From a political standpoint, it'll be a hell of a lot easier crafting campaign mail next year about the job-creating and tax-cutting provisions of the bill than trying to expain why the system of choosing behind the "single sales factor" and "Four Factor apportionment" methods, particularly when single sales is used in Rick Perry's "job-stealing" Texas.

BALLOT BUMPER: We hear that the idea of bumping ballot measures from June to November is still in the mix, but no bill language has surfaced. On that note, Dan Walters writes about mushroom bills today. Really, there's not THAT much work left to get done, but don't be surprised if the more, uh, sensitive bills aren't voted on until after tonight's evening newscasts.

PENSION POLITICS: So, I ribbed a Joe Simitian and Warren Furutani yesterday about the two bills that state the intent of the Legislature to create a conference committee on pension reform. In fact, the bills aren't useless. However, legislators are so wary of pension reform that they nobody wanted to vote on any substantive bills to send them to a conference committee. So, they will in fact not concur on these two bills, likely setting up a very high profile pension reform supercommittee.

THE OTHER CAPITOL: You know the president's poll numbers are bad when neither Joe Baca nor Loretta Sanchez tried to get a handshake. Antonio Villaraigosa got a nice shot, however, sitting in the gallery playing "Here's the church; here's the steeple."

ICYMI: When I was on the same flight to LAX yesterday with the former Lite Gov, it reminded me of this gem that I failed to include yesterday: Bustamante pitched as ambassador to India

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On to the hottest headines on atc...

Kamala Harris Rejects GOP Request To Review California Budget - Kevin Yamamura @ blogs.sacbee.com
State Attorney General Kamala Harris has rejected a GOP request that she opine on whether the state budget signed by Gov. Jerry Brown is constitutional.

Gov. Jerry Brown, Assembly legislators reach tax deal - Anthony York @ latimes.com
Gov. Jerry Brown and legislators in the state Assembly have reached a tentative agreement on a $1-billion tax swap that would end a major tax break for out-of-state businesses, lower personal income taxes for millions of Californians and give more incentives to smaller, California-based companies.

Gov. Jerry Brown, Assembly Legislators Reach Tax Deal - latimesblogs.latimes.com
Gov. Jerry Brown and legislators in the state Assembly have reached a tentative agreement on a $1-billion tax swap that would end a major tax break for out-of-state businesses, lower personal income taxes for millions of Californians and give more...

Senate GOP Leader Asks Brown For Special Session On Tax Plan - Torey Van Oot @ blogs.sacbee.com
Senate GOP leader Bob Dutton has asked Gov. Jerry Brown to hold off pushing his corporate tax package in the final two days of the legislative session and instead call a special session on jobs and tax reform.

Harris Won't Evaluate Budget's Constitutionality - sacbee.com
California Attorney General Kamala Harris has rejected a Republican request that she opine on whether the state budget signed by Gov. Jerry Brown is constitutional.

Capitol Alert; Senate GOP leader asks Brown for special session on tax plan - Torey Van Oot @ blogs.sacbee.com
Senate GOP leader Bob Dutton has asked Gov. Jerry Brown to hold off pushing his corporate tax package in the final two days of the legislative session and instead call a special session on jobs and tax reform.

Bill Limiting Local Governments' Ability To Privatize Libraries Passes Senate - Timm Herdt @ vcstar.com
A controversial bill restricting local governments' authority to outsource and privatize public libraries passed the Senate Thursday and will likely make its way to Gov. Jerry Brown's desk next week.

Bill Allowing Child-care Providers To Unionize Clears Senate - Torey Van Oot @ blogs.sacbee.com
Last-minute legislation that would allow unions to organize child-care providers who work out of their homes was approved by the Senate this evening.

Sacramento County Sheriff Wants Governor To Delay Shift Of Prisoners To Counties - sacbee.com
Conceding he is "going rogue" shortly before the state is to start diverting prison inmates to county jails, Sacramento County Sheriff Scott Jones is calling on Gov. Jerry Brown to postpone the Oct. 1 realignment plan until problems can be worked out.

Legislature's 'Gang of 5' Reunites On Assembly Floor - Dan Walters @ blogs.sacbee.com
There was a reunion of sorts on the Assembly floor Thursday morning as Assemblyman Charles Calderon was joined by four other members of the "Gang of 5" that made a spectacularly unsuccessful bid to grab control of the Assembly more than 20 years ago.

Panel: The Key To Ca Politics Is Latino Vote - Joel Fox @ foxandhoundsdaily.com
A panel at the Ronald Reagan Presidential Library prior to the Republican presidential debate focused on the problem for Republican candidates in California -- the Latino vote.

In Jobs Speech, Obama Urges Passage Of $447 Billion Package - Carrie Budoff Brown and Jennifer Epstein @ politico.com
In a last-gasp attempt to jolt the economy and his reelection prospects, President Barack Obama on Thursday put forward a $447 billion jobs package, challenging Congress to shut down the “political circus” and pass his bill as soon as possible.

Virginia federal court throws out health care law challenges - mercurynews.com
A federal appellate court in Richmond, Va., Thursday threw out two cases challenging the constitutionality of President Barack Obama's 2010 health care law, ruling for varying reasons that the plaintiffs did not have legal standing to sue.

Jerry Brown To Announce Bipartisan Tax Deal - Kevin Yamamura @ blogs.sacbee.com
Gov. Jerry Brown has scheduled a 12:15 p.m. press conference to announce a corporate tax deal with Republicans, but it remains to be seen whether he has enough votes from the Senate GOP.

Council President Eric Garcetti Says He Will Run For L.A. Mayor - latimesblogs.latimes.com
Los Angeles City Council President Eric Garcetti said Thursday he is the latest candidates running to replace Mayor Antonio Villaraigosa, promising to provide "leadership that brings people together."

Assembly passes Jerry Brown's business tax changes - sacbee.com
In an eleventh-hour bid to claim victory on job creation, Gov. Jerry Brown will work today to push a corporate tax deal through the state Senate on the final day of this year's legislative session.

'Open Carry' Ban Wins Approval In California Senate - Torey Van Oot @ blogs.sacbee.com
The state Senate has approved legislation today that would make it a crime to openly carry an unloaded handgun in public.

Bill Would Let Governor Protect Large Projects From Lengthy Challenges - Patrick McGreevy and Anthony York @ latimes.com
The effort to redefine the landmark California Environmental Quality Act was unveiled with only one day left in the legislative session. The impetus is the football stadium proposed for downtown L.A.

Senate Report Warns Of Rising Costs Of Tax Breaks - californiawatch.org
As Gov. Jerry Brown heralded a last-minute tax deal yesterday, a Senate report warned of the unexpected ballooning costs of corporate tax breaks.

Harris won't evaluate budget's constitutionality - sacbee.com
California Attorney General Kamala Harris has rejected a Republican request that she opine on whether the state budget signed by Gov. Jerry Brown is constitutional.