CalChamber Unveils List of 2015 “Job Creator” Bills

Since 2008, CalChamber has been identifying bills that will improve the state’s job climate and stimulate our economy.  We put them on our annual “Job Creator” list hoping to put a spotlight on proposals that will encourage investment in our economy.

Last week, we released the 2015 “Job Creator” list.  This year’s list includes 11 bills that will improve our legal climate, lower costs for employers, spur tourism, and create construction jobs. The list follows recommendations made in our annual business issues guide, called “Foundation for a Better California.”

Each year we hope to have as many job creator bills on our list as we do on our job killer list.  Let’s hope our policy makers make that possible in the years to come! 

The list of 2015 job creator bills includes the following proposals:

Creates Construction Jobs

AB 35 (Chiu; D-San Francisco) Creates Affordable Housing Opportunities. Expands the existing low-income housing tax credit program, making the state better able to leverage an estimated $200 million more in Federal Tax Credits.

AB 323 (Olsen; R-Modesto) Expedites and Reduces Cost for Roadway Repair and Maintenance Projects. Streamlines infrastructure development by extending indefinitely the current CEQA exemption for certain roadway repair and maintenance projects.

AB 641 (Mayes; R-Yucca Valley) Expedites and Reduces Cost for Housing Projects. Streamlines and reduces regulatory burdens for the approval and construction of housing developments by providing an expedited review process under the California Environmental Quality Act.

Improved Legal Climate

AB 52 (Gray; D-Merced) Disability Access Litigation Reform.  Seeks to improve access for disabled customers and limit frivolous litigation against businesses for construction-related accessibility claims by providing an opportunity for the businesses to timely resolve any potential violations.

AB 54 (Olsen; R-Modesto) Disability Access Litigation Reform. Seeks to improve access for disabled patrons without harming businesses through frivolous lawsuits by providing businesses with a 60-day right to correct the violation for a claim based upon a constructed related accessibility standard that was changed or modified in the prior three years.

AB 588 (Grove; R-Bakersfield) Reduces Frivolous Litigation. Seeks to limit frivolous litigation under the Labor Code Private Attorneys General Act, by allowing an employer a 33 day right to cure technical violations on an itemized wage statement that did not cause any injury to the employee.

AB 1252 (Jones; R-Santee) Protects Businesses from Proposition 65 Lawsuits. Provides needed relief to small businesses by prohibiting a person from bringing a Proposition 65 lawsuit against a business employing fewer than 25 employees. Failed passage in the Assembly Environmental Safety and Toxic Materials Committee, 04/14/15. Reconsideration Granted

AB 1470 (Alejo; D-Salinas) Reduction of Costly Employment Class Action Litigation. Limits frivolous class action litigation against employers in California who are creating high paying jobs by creating a rebuttable presumption that employees earning at least $100,000 and performing non-manual labor and at least one exempt duty are exempt from overtime requirements.

SB 67 (Galgiani; D-Stockton) Disability Access Litigation Reform. Seeks to limit frivolous litigation against small businesses and those that have sought to comply, by limiting remedies to injunctive relief and expanding the current period to correct any violation from 60 to 120 days.

Tourism

SB 249 (Hueso; D-Logan Heights) Enhanced Driver’s License. Encourages international trade and tourism by authorizing the Department of Motor Vehicles to issue enhanced driver licenses to U.S. citizens to expedite legal traffic at the border.

Workplace Improvements/Training

AB 1038 (Jones; R-Santee) Flexible Workweek. Provides employers with the opportunity to accommodate employees’ needs as well as business demands by allowing employees to request a voluntary, flexible workweek agreement that can be repealed by the employee at any time with proper notice. Failed passage in the Assembly Labor and Employment Committee, 04/22/15. Reconsideration Granted.

Cumulative Job Creator Signatures

2014: 14 job creator bills identified, 5 sent to Governor, signs 5

2013: 16 job creator bills identified, 2 sent to Governor, signs 2

2012: 34 job creator bills identified, 9 sent to Governor, signs 9

2011: 5 job creator bills identified, 0 sent to Governor

2010: 16 job creator bills identified, 4 sent to Governor, signs 4

2009: 18 job creator bills identified, 2 sent to Governor, signs 2

2008: 3 job creator bills identified, 2 sent to Governor, signs 2

Originally published by Fox and Hounds Daily

Denise Davis is vice president, media relations and external affairs at Cal Chamber

New Desal Plant in the Works at Camp Pendleton

The dramatic announcement by Gov. Jerry Brown earlier this month of a 25 percent cut in water use across much of California triggered harsh commentary in the state and across the nation over the lack of preparation by government agencies and water districts for a long-term drought. A typical focus was incredulity over a dry coastal state’s failure to embrace desalination plants, as has been done in Israel, Saudi Arabia and other arid coastal nations.

But almost none of the coverage has reflected the fact that formal, official planning has been going on for years for one of the world’s largest desal plants along the coast of the Camp Pendleton Marine base in north San Diego County. Any construction is years off, but necessary preparatory work is well under way.

The image above of a proposed desal plant there comes from a 2010 presentation by the San Diego County Water Authority. It shows how sky-high water planners are on the potential of the 17-mile Camp Pendleton coast. Attention is now focused on a site in the southwest corner of the 125,000-acre base, just north of Oceanside and about 20 miles north of the Carlsbad desalination plant that is scheduled to open in coming months.

The Carlsbad plant will be the biggest in the Western Hemisphere and is expected to produce 50 million gallons of water a day — 7 percent of the San Diego region’s needed supply.

The Camp Pendleton project would be far bigger, with desalination experts saying 150 million gallons of water a day is realistic. That would make it one of the largest desal plants in the world.

A Saudi Arabian desalination plant will produce 264 million gallons a day when its first phase is complete, Bloomberg News reports.

A 2009 San Diego County Water Authority report didn’t take it for granted that the Pendleton project’s supplies are needed. It spoke of only expanding the project to the full 150 million gallons a day “as supply and demand conditions warranted.”

After four years of drought, there’s not much doubt that California needs far more reliable water sources — especially in the San Diego region, given that local water officials have spent 20-plus years fighting with the giant Metropolitan Water District over supply and costs.

The water mega-wholesaler has long opposed San Diego’s efforts to diversify its water supply by partnering with Poseidon, a private company, to build the Carlsbad plant and by striking a deal to shift Colorado River water from agricultural uses in Imperial County to supplies for homes and businesses in San Diego County.

Originally published by CalWatchdog.com

Despite record tax haul, CA legislators seek to raise rates

tax signWith a big tax surplus flowing into state coffers, California shattered records last year with a historic haul dwarfing those of other large states around the country. This year, meanwhile, legislators planned still further increases.

“During the 2013-14 fiscal year that ended last June,” the Sacramento Bee reported, “California collected $138.1 billion in taxes of all kinds, 16 percent of all state taxes collected in the nation and more than the next two states, New York and Texas, combined.” The majority of the sum came from personal and corporate income taxes, according to the Bee.

Money maze

At first blush, California’s cash-in promised straightforward results. “Through the end of March, state general fund revenue was about $1.3 billion ahead of projections,” Jason Sisney, California’s chief deputy legislative analyst, told the San Francisco Chronicle. “April revenue is likely to add at least $1 billion more than projected.”

But thanks to the Golden State’s arcane fiscal requirements, revenue was set to be apportioned in counterintuitive ways:

“Under the state’s budget formulas, ‘virtually all or more than all of the additional revenue, relative to projections, may be required to go to schools and other statutory and budgetary commitments, such as the state’s rainy-day fund and debt payments,’ Sisney said. As a result, ‘The amount of extra state money available for other purposes could be little or nothing, and in some scenarios, reducing non-school spending on programs could be required.’”

Tax watchers, the Chronicle noted, paid special attention to a surge in taxes amassed through payroll withholding. In a report cited by the Chronicle, Standard & Poor’s called the increase “a sign that California’s economy is firing on all cylinders.” But that interpretation did not extend to the Golden State’s self-employed economy, since entrepreneurial taxpayers don’t have their taxes withheld in advance by an employer.

New hikes foreseen

Despite the influx of revenue, legislators have not been satisfied with tax rates. Assembly Bill 464, introduced by Assemblyman Kevin Mullin, D-South San Francisco, “would give local governments the power to add another 1 percent to the combined state-local sales tax rate with voter approval,” the Bee reported.

Senate Bill 16, meanwhile, introduced by state Sen. Jim Beall, D-San Jose, would hike several of California’s car-related taxes and fees. “The measure would increase the state gasoline tax by 10 cents per gallon, raise the state vehicle annual registration fee by $35, and levy a $100 per year surcharge on zero-emission vehicles that don’t use gasoline,” The Bond Buyer noted. “Beall’s plan also would phase in a 3.5 percent increase in state vehicle license fees over five years.”

On at least one issue where elected officials remain divided, the prospect of higher taxes has deepened. Although the push to legalize marijuana in California would presumably bring more tax revenue to Sacramento, Colorado’s uneven experience with the process has led to increasing reticence among Californians who don’t want to struggle with similar problems. As CalWatchdog noted previously, Coloradan legislators have divided over what to do with the excess tax revenue.

Up in smoke

marijuana-leafThe indirect tax consequences of legal marijuana could also mount. At a recent panel convened by the Northern Californian chapter of the ACLU, “Paul Gallegos, a former district attorney in the marijuana-growing heartland of Humboldt County, noted that a pot plant needs 6 gallons of water each day over its 150-day growing cycle,” according to ABC News. Amid California’s protracted drought, water rates and rationing penalties could be dramatically effected.

Finally, more comfortable on more familiar ground, some legislators have re-trained their attention on increasing taxes on tobacco products. State Sen. Richard Pan, D-San Francisco, “wants to raise California’s tobacco tax by $2 a pack, to bring in $1.5 billion a year for smoking prevention and smoking-related medical costs now borne by taxpayers through Medi-Cal, the state’s healthcare program for the poor,” the Los Angeles Times reported.

Originally published by CalWatchdog.com

Teachers’ Union Propaganda Is Creeping Into CA’s Public School Curricula

To say California’s teachers’ unions wield outsize influence over state education policy is hardly novel. From setting tenure rules to rewriting dismissal statutes and blocking pension reforms, the California Teachers Association and the California Federation of Teachers roam the halls of the legislature like varsity all-stars. But less well known are the unions’ efforts to remake curriculum — and thereby influence the next generation of citizens and voters.

According to labor expert Kevin Dayton, organized labor has been trying to get its collective hooks into classroom content since 1981, when the City University of New York developed the “American Social History Project.” The idea was to present the history of marginalized and oppressed groups — including labor unions — to a “broad popular audience.” In California, the project took a great leap forward in 2001, when Assembly Speaker Bob Hertzberg cooked up the Speaker’s Commission on Labor Education, which, as Dayton explains, was established “to address issues of labor education in California’s public school system.” At the commission’s behest, Governor Gray Davis signed a bill that encouraged school districts to set aside the first week in April as “Labor History Week” and “commemorate it with appropriate educational exercises to make pupils aware of the important role that the labor movement has played in shaping California and the United States.”

By 2012, labor’s “week” had morphed into “Labor History Month,” and California’s teachers’ unions began advancing their politicized agenda. The CFT’s elementary curriculum includes a story about a “mean farmer” and his ticked-off hens that organize against him. The CTA meantime offers up a passel of lessons with a heavy emphasis on issues such as “tax fairness.” The University of California’s Miguel Contreras Labor Program joined in, adding an anthology of stories promoting the IWW, a radical union noted for its ties to socialism and anarchism, as well as a biography of America’s singing Stalinist, Pete Seeger.

The unions were on the move again in 2014, as the California Department of Education began its periodic review of the state’s history framework. In November, the CFT sent a proposal to the Instructional Quality Commission, an advisory body to the state board of education on matters concerning curriculum, instructional materials, and content standards. The union’s suggestions included downplaying the Second Great Awakening—the eighteenth-century religious revival that had a profound effect on the temperance, abolition, and women’s rights movements—in favor of greater emphasis on anti-Muslim discrimination after the 9/11 attacks. The union also wants the United States described as an “empire” that regularly “dominate[s] other civilizations,” despite the nation’s record of rebuilding countries we have defeated in war, such as Germany and Japan after World War II.

Naturally, the CFT makes a case for a “Labor Studies” elective. California is considering a lesson that would let students “participate in a collective bargaining simulation to examine the struggles of workers to be paid for the value of their labor and to work under safe conditions. They can examine legislation that gave workers the right to organize into unions, to improve working conditions, and to prohibit discrimination.” The Speaker’s Commission on Labor Education co-chairs, Fred Glass and Kent Wong, weighed in with a letter of their own urging the Instructional Quality Commission to establish the labor studies elective.

Will the unions advocate a full and fair treatment of labor’s history, including routine episodes of union violence and intimidation? Can students expect thorough exploration of labor economics, including how collective bargaining lowers the pay of many workers due to wage compression? Probably not. It’s even less likely that students will hear anything about the teachers’ unions twenty-first century political ventures—such as how the CTA spent more than $26 million in 2000 to defeat a school-voucher initiative that would have let families escape failing schools, or how, in 2012, it successfully lobbied to defeat SB 1530, which would have simplified the process of firing pedophile teachers.

The teachers’ unions are clearly lobbying for changes to a curriculum they believe presents a sanitized version of U.S. history, but they would simply replace disfavored “myths” with their own versions. As an American history teacher for much of the last decade of my career, I was faithful to the state framework and taught extensively about slavery and other injustices in our collective past. Most other history instructors I knew did the same. We didn’t browbeat the kids, however, into believing that American history was riddled with treachery and malevolence. If parents and citizens don’t take action, a bundle of America-bashing lessons, distorted history, and indoctrination into the glories of collective bargaining may become a part of the Golden State’s curriculum.

Originally published by City Journal.

The California Introduction Machine

Much is made during presidential election periods that the state is merely an ATM machine for candidates. As a solid blue state that has not voted for a Republican for the White House since 1988, California is considered safe for whoever the Democratic nominee will be (we’re talking to you, Hillary Clinton.)

Yet, candidates from both major parties come to the Golden State for the gold – dollars for their campaign accounts.

In this coming election, however, at least on the Republican side, the race is wide open. Before GOP candidates can hit up the California ATM machine, many need to introduce themselves to California voters and donors. And that’s been happening now.

Potential Republican candidates have been making the trek to the Left Coast to meet and greet without necessarily asking for money. There have been, and are scheduled, a number of non-fundraising events.

Wisconsin Governor Scott Walker recently made a number of appearances in Orange and Los Angeles Counties. On Monday of next week former Texas Governor Rick Perry will be in Los Angeles and Ventura County for gatherings. Tuesday will find Florida Senator Marco Rubio speaking to Town Hall Los Angeles and a month later at the same venue Ohio Governor John Kasich will make an appearance. Ted Cruz is expected to be back in May and Rand Paul in June.

Carly Fiorina, who should need no introduction to California Republican donors after her U.S. Senate run in 2010, is expected to make the rounds here next month.

With so many potential candidates, California donors want to get to know the candidates before they decide whom to back.

So the mating ritual is in full swing. But let’s not be fooled – in the end its all about the money.

Joel Fox is editor of Fox & Hounds and President of the Small Business Action Committee.

Originally published by Fox and Hounds Daily

Global Warming ‘Pause’ Extends Nearly 18 And A Half Years

Global WarmingSatellite temperature readings show there has been no warming trend for nearly 18 and one-half years, meaning there has been no statistically significant warming since the late 1990s.

Two satellite datasets show that warming has been more moderate than predicted by the United Nations and most climate scientists. The Remote Sensing Systems satellite dataset shows there has been a warming trend of only 0.01 degrees Celsius per century since December 1996.

RSS shows the least amount of warming of the two main satellite temperature datasets, the other dataset is run by scientists at the University Of Alabama in Huntsville. Taken together, both datasets shows a warming trend of just 0.35 degrees Celsius (or 1.37 degrees per century) since 1990 – about half of what was initially predicted by the United Nations.

“The RSS satellite dataset shows no global warming at all for 220 months from December 1996 to March 2014 – more than half the 435-month satellite record,” says Christopher Monckton, an English lord and noted global warming skeptic. Monckton has been researching and tracking global warming data for years.

“The global warming trend since 1900 is equivalent to 0.8 Cº per century. This is well within natural variability and may not have much to do with us,” Monckton says.

Satellites measure the lowest reaches of the Earth’s atmosphere and that data is formulated into temperature readings. Most government climate agencies, however, rely on land and sea surface temperature readings to come up with their global climate measures. While both measures have their setbacks, they both show that warming a has been much more moderate than predicted.

new study by Duke University researchers found that the world has not warmed as fast as previously predicted. Duke scientists found that “natural variability” has dominated the temperature record, causing observed changes in the temperature record from year to year.

Researchers reconstructed a 1,000-year temperature record and “found that climate models largely get the ‘big picture’ right but seem to underestimate the magnitude of natural decade-to-decade climate wiggles,” said Patrick T. Brown, a doctoral student in climatology at Duke University.

“Our model shows these wiggles can be big enough that they could have accounted for a reasonable portion of the accelerated warming we experienced from 1975 to 2000, as well as the reduced rate in warming that occurred from 2002 to 2013,” Brown said.

What does all this mean? Brown said it means that predictions of dire global warming are likely overblown and that a “middle-of-the-road warming scenario is more likely, at least for now.”

“Statistically, it’s pretty unlikely that an 11-year hiatus in warming, like the one we saw at the start of this century, would occur if the underlying human-caused warming was progressing at a rate as fast as the most severe [UN] projections,” Brown said. “Hiatus periods of 11 years or longer are more likely to occur under a middle-of-the-road scenario.”

Originally published by the Daily Caller News Foundation

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CA Tax Freedom Day Comes Late Again

California lags behind much of the country when it comes to high taxes and creating an atmosphere that allows businesses to create jobs.

Another area where California fails to meet the national standard — National Tax Freedom Day. This year, California residents will work nine days longer than the national average to meet their annual tax obligation.
taxes
California’s byzantine tax structure continues to create a difficult economic environment in which to live and work. Unfortunately, Californians must work 123 days to pay their tax bill. We can do better.

Tax Freedom Day, calculated annually by the Tax Foundation, is the day Americans have earned enough money to pay their annual tax obligations at the federal, state and local levels.

This year’s national Tax Freedom Day arrives on April 24. According to the Tax Foundation, Americans total tax bill comes to $4.8 trillion and collectively will spend more on taxes in 2015 than they will on food, clothing and housing combined.

Compared to other states, California’s Tax Freedom Day, which won’t arrive until May 3, is the fourth latest in the nation. Only Connecticut, New Jersey and New York have later dates.

Learn more about Tax Freedom Day at www.taxfoundation.org/taxfreedomday.

SoCal’s Housing Crisis: Middle Class, Minorities May Not Survive

urban-housing-sprawl-366c0What kind of urban future is in the offing for Southern California? Well, if you look at both what planners want and current market trends, here’s the best forecast: congested, with higher prices and an ever more degraded quality of life. As the acerbic author of the “Dr. Housing Bubble” blog puts it, we are looking at becoming “los sardines” with a future marked by both relentless cramming and out-of-sight prices.

This can be seen in the recent surge of housing prices, particularly in the areas of the region dominated by single-family homes. You can get a house in San Francisco – a shack, really – for what it costs to buy a mansion outside Houston, or even a nice home in Irvine or Villa Park. Choice single-family locations like Irvine, Manhattan Beach and Santa Monica have also experienced soaring prices.

Market forces – overseas investment, a strong buyer preference for single-family homes and a limited number of well-performing school districts – are part of, but hardly all, the story. More important may be the increasingly heavy hand of California’s planning regime, which favors ever-denser development at the expense of single-family housing in the state’s interior.

In both the Bay Area and Southern California, plans are now being set to force the building of massive new towers in a few selected “transit-oriented” zones. In a bow to political realities, the planners say they won’t bring superdensity to the single-family neighborhoods beloved by Californians; the wealthy – including those who bought early and those with access to inherited money – will still be able to enjoy backyard play sets, barbecues and swimming pools. 

Home prices skyrocket

The rest of you had better get used to cramming. House prices over the past two years in Orange and Los Angeles counties have risen at a rate more than 10 times the relatively paltry increases in weekly paychecks, among the nation’s worst ratios of home prices to income. Now, you can’t buy a house in much of Orange County or West L.A. without a triple-digit income; in Manhattan Beach, buying a median-price house requires an income of more than $300,000 a year.

With development on the periphery basically shut down for lack of sufficient transit usage, the bright folks at SCAG, MTC, ABAG, SANDAG (the regional planning agencies in Los Angeles, the San Francisco Bay Area and San Diego, respectively) foresee a future of ever-increasing density, with apartment towers interspersed throughout the cities.

To be sure, city life and density might seem great, and could even work to some extent in smaller, scenic areas like Laguna Beach or Santa Monica, with their accessible walking districts. But such locales are only a small part of Southern California.

To live in a high-rise in Ontario or Garden Grove might please planners, but density without much amenity – and nothing that will ever be close to a New York-style transit system or even a system as good as that serving downtown Los Angeles – seems more a ticket to a neo-tenement purgatory than paradise.

For areas that lack ocean breezes or scenic views, we are looking at something more like the congested chaos of Mexico City or Tehran than the tourist’s Paris on the Pacific (more than 80 percent of Paris, France, is outside the compact core).

The biggest losers, as usual, will be those people – working and middle-class families as well as minorities – who have looked to the periphery for housing opportunities and a chance for a better life. Los Angeles County is already a majority-renting community, and attempts to force densification in other counties could bring this reality to Orange, San Bernardino, Riverside and Ventura counties as well. 

Where minorities can thrive

Until recently, the periphery has offered housing salvation for younger middle-income homeowners, particularly families. Homeownership rates are more than 25 percent higher in the Riverside-San Bernardino area than in the Los Angeles-Orange County area. Minorities also do much better. The homeownership rate inland is a quarter higher among African American and Asian households. The rate for Hispanics is nealy half again higher than in Los Angeles-Orange.

But as housing prices have soared, and opportunities to move outward have shrunk, Southern California has developed some of the worst crowding in the nation. Three of the most crowded areas – based on people per room – are in Los Angeles County: South Los Angeles, the Pico Union area near downtown LA and Huntington Park. Southern California trails only Miami, Fla., for the highest percentage of residents who spend 40 percent or more of their incomes on rent or a mortgage.

The impact of high prices extends well beyond the poor and minorities. As a recent report from the state’s Legislative Analyst’s Office suggests, the lack of affordable housing is one reason why California companies have trouble attracting employees, particularly those with families. To keep the digital hearths going in places like Silicon Valley, companies rely on either young people (often with family money) or, increasingly, low-wage workers, called “technocoolies” by some, imported from Asia.

The LAO is spot on about the disadvantages of California housing, which now costs two and half times the national average, and rents that are 50 percent higher than in the country as a whole. Homeownership rates now stand at 48th among the states. Unfortunately, the proposed solutions follow the same script adopted by our planning elites that seeks to further densify large swaths of central Los Angeles and the San Francisco Bay Area, which, since 2000, have accounted for roughly 10 percent of all growth in the state. 

Affluent exempt

This planning fiat is sure to spark fierce resistance. Don’t expect to see high-rises sprout amid the expanses of single-family housing in Malibu or Beverly Hills, due to the organized power of their overwhelmingly “progressive” residents. Higher-density development likely will be jammed, instead, into already denser, less-affluent and less politically powerful areas, such as the east San Fernando Valley, North Orange County and some inland communities.

There’s nothing wrong with appealing to a market for apartments, but limiting the expansion of single-family construction will only exacerbate our looming demographic dilemmas. Southern California’s family population is decreasing more than any of the nation’s other large metro areas. Homes are increasingly owned by an aging population lucky enough to have bought before the new planning regime helped drive prices into the stratosphere. Young workers may be amused by dense, high-cost rental space, at least until they desire to start families and own homes. But the crucial middle-class households headed by thirty- and fortysomethings may find themselves forced out of the region if they are unwilling to accept a lower quality of life.

Some of the logic behind densification was based on the perception that the suburban dream is dead. Yet, despite persistent claims by planners and pundits, this turned out to be less a matter of altered market preferences than of temporary effects of the Great Recession. Roughly 80 percent of Americans still prefer single-family homes. So do Californians: In the past decade, single-family units represented the vast majority of all new homes built in the state.

Now that the economy is coming back to life, suburban communities, particularly the much-disdained exurbs, appear to be on the demographic rise again around the nation. By rejecting this option for the next generation, we are essentially putting the California Dream on ice, all but pushing upwardly mobile, but not rich, families to pursue their futures in notably lower-cost, less-regulated places, like Texas.

All this is for a dubious philosophy that has long derided suburban communities and their single-family homes as an environmentally wasteful, anti-social extravagance. Yet, today, many new suburban developments are eco-friendly, including such features as high-efficiency construction and renewable solar power, and employment patterns increasingly allow for work from home or in nearby firms. Business growth near homes in Irvine, often pilloried as the epitome of sprawl, notes former California State University, Los Angeles demographer Ali Modarres, has resulted in some of the nation’s shortest commutes and highest rates of people working at home.

Add to the equation more fuel-efficient cars and the environmental justification for forced sardinization becomes even less compelling. Densification might well increase over time as some people prefer more urban lifestyles. But the opportunity to own a single-family home should not be limited to the very rich, or to aging baby boomers, by Sacramento bureaucrats and unelected regional planning agencies. Yet, precisely this is the inevitable result of the massive attempt at social engineering now advancing throughout the region and state.

This piece is cross-posted at Citywatchla.com

Joel Kotkin is executive editor of NewGeography.com… where this piece was most recently posted …  and Roger Hobbs Distinguished Fellow in Urban Studies at Chapman University, and a member of the editorial board of the Orange County Register. He is also executive director of the Houston-based Center for Opportunity Urbanism is now available at Amazon and Telos Press. He lives in Los Angeles, CA

Dem v. Dem State Senate Battle Reflects New Political Split in CA

Photo credit:  Capitolweekly.net

Photo credit: Capitolweekly.net

California’s politics remain polarized, but not just via the traditional division of Republicans vs. Democrats. As reported here two months ago in the post “Issue of Government Unions Divide Candidates More Than Party Affiliation,” there were two California State Senate contests that remained unresolved after the November 2014 election. One of them, pitting Republican John Moorlach against Republican Don Wagner for the 37th Senate District, was settled on March 17th. Moorlach, who has fought to restore financial sustainability to public employee pension systems, was opposed by government unions. Wagner, also a conservative, but less outspoken than Moorlach on the issue of pension reform, was endorsed by government unions. Moorlach won.

The other race, originally pitting three Democrats against each other for the 7th Senate District, has narrowed to a contest between two candidates that will be settled on May 19th, Democrat Steve Glazer vs. Democrat Susan Bonilla.

It will be interesting to see how voters in a largely Democratic district respond in a race that is not between candidates from opposing parties. Glazer is a fiscal conservative who is progressive on virtually all of the issues important to Democrats. Bonilla offers up many similar positions, with one important exception: Glazer has stood up to government unions on critical issues, to the point where government unions do not consider him reliable. As a result, Bonilla is receiving cash and endorsements from the unions representing our public servants, all of it, of course, money that originated from taxpayers.

Here’s a list of some of Bonilla’s government union endorsements:

California Association of Highway Patrolmen
California Professional Firefighters
California State Sheriffs’ Association
California State Coalition of Probation Organizations
CALFIRE Local 2881
Peace Officers Research Association of California
Deputy Sheriffs Association of Alameda County
Antioch Police Officer’s Association
Concord Police Officer’s Association
Contra Costa County Deputy Sheriffs Association
Contra Costa County Deputy District Attorney’s Association
Brentwood Police Officers Association
Livermore-Pleasanton Firefighters, Local 1974
Livermore Police Officer’s Association
Pittsburg Police Officers Association
Pleasanton Police Officers Association
Probation Peace Officers Association of Contra Costa County
San Ramon Valley Firefighters Association, Local 3546
United Professional Firefighters of Contra Costa County, Local 1230

Bonilla campaignOne has to ask why so many public safety officials are endorsing Bonilla rather than Glazer, and it is fair to wonder if their endorsement has anything to do with the positions of these candidates on issues and policies relating to public safety. Take a look at this flyer from the Bonilla campaign:

As can be seen, Contra Costa County District Attorney Mark Peterson and Alameda County Sheriff Greg Ahern, both apparently Republicans, are touting the pro public safety record of Susan Bonilla. But would they have made these statements if Susan Bonilla was challenging their unions on fiscal issues relating to pensions and compensation?

From that perspective, candidate Steven Glazer is a threat to government unions. For ten years starting in 2004, Glazer was a councilmember, then mayor, in Orinda, one of the most fiscally responsible cities in the state. In a California Policy Center study released late last year entitled “California’s Most Financially Stressed Cities and Counties,” every city and county in California was ranked in order of its risk of insolvency. Orinda was ranked 369 out of 491, putting it in the top 25% in terms of financial health. More significantly, in a subsequent California Policy Center study entitled “California City Pension Burdens,” every city in the state was ranked according to how much pension contributions strain their budgets. Orinda wasn’t even on this list, because they are among only nine cities in California who don’t have a defined benefit plan for their employees. They use a defined contribution plan instead.

Hopefully the reader will forgive this prurient dive into personal financial data, but when public employees endorse political candidates, how much they make is relevant. Contra Costa County District Attorney Mark Peterson made $322,180 in 2013, an amount that included $111,897 in employer paid benefits. Alameda County Sheriff Greg Ahern made $556,268 in 2013; an astonishing $266,130 of that in the form of employer paid benefits. The vast majority of these benefit payments were to cover the required employer pension contributions. These men would have to be saints to have an objective perspective on an election that could result in a fiscal conservative holding office who is conversant in pension finance and formerly presided over a town that offers defined contribution plans to their employees instead of defined benefit pensions.

To drive the point home, take a look at the salaries and benefits for Alameda County workers, the pensions for Alameda County retirees, the salaries for Contra Costa County workers, and the pensions for Contra Costa County retirees. No conflict of interest there.

In the race for California’s 7th Senate District, Government unions have already spent over $2.0 million to support Susan Bonilla and oppose Steve Glazer. Download this spreadsheet to view the latest contributions through 4-20-2015, or click on the following four links to follow the money pouring in to make sure a fiscal conservative Senator does not head to Sacramento on May 19th:

Bonilla for Senate 2015, Putting the East Bay First
Bonilla for Senate 2015
Bonilla for Senate 2016
Working Families Opposing Glazer for Senate 2015

California’s Republican leadership, to the extent they tepidly claim to support pension reform while taking money from public sector unions and doing nothing, should understand as clearly as the Democratic leadership who avoid the issue entirely: It doesn’t matter what else you believe, or what you stand for, or what’s in your platform. Government unions support candidates who fight to preserve and increase the pay and benefits of unionized government employees, at the same time as they fight to minimize the accountability of unionized government employees. Across California, their demands, almost invariably fulfilled by politicians they control, have taken money away from other services, including infrastructure investment, and nearly destroyed California’s system of public education.

This is having a polarizing impact in both parties, and rendering the distinction between Democrat and Republican less important than whether or not they are willing to stand up to government unions.

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Ed Ring is the executive director of the California Policy Center.

Harshest water conservation targets unveiled

As a closely-watched court ruling threw California’s tiered water pricing system into disarray, the Water Resources Control board made public its latest and harshest conservation targets for municipalities across the Golden State.

Detailing the plan, MarketWatch reported that “Angelenos must save another 16 percent for the year ahead, the water board said,” despite saving over 9 billion gallons, or 7 percent, over the previous year:

“By comparison, San Francisco lowered its water usage (22,351 gallons per resident) between June 2014 and February 2015 by more than 1.6 billion gallons, a saving of 8 percent from the same period a year earlier. As such it has just an 8 percent target water reduction for the 2015-2016 period, the state said.

“San Diego, which depends on water imported from outside of the city for 90 percent of its usage, must cut back on demand in the next year by 16 percent, the state water board said.”

Meanwhile, the 4th District Court of Appeal in Orange County sided with a challenge to the constitutionality of San Juan Capistrano’s tiered water pricing system. As the San Jose Mercury News reported, the court held that tiered rates “violated voter-approved Proposition 218, which prohibits government agencies from charging more for a service than it costs to provide it.”

A blow to Brown

For Gov. Jerry Brown, the ruling was an instant headache. He had recently issued an executive order, The Los Angeles Times noted, “directing water agencies to develop rate structures that use price signals to force conservation.”

In a prepared statement issued by the governor’s office in the wake of the ruling, Brown did not shy away from making his frustration plain. “The practical effect of the court’s decision is to put a straitjacket on local government at a time when maximum flexibility is needed,” he said, invoking a bottom-up view of political efficacy most often associated with Republicans. “My policy is and will continue to be: Employ every method possible to ensure water is conserved across California.”

Making waves

As CalWatchdog.com previously observed, the sweeping ramifications of the case put regulators and cities on edge. Providers could fall back on technicalities to make increased consumption more costly — charging more for water drawn from certain areas, for instance — the bureaucratic challenge involved in finding and implementing workarounds could be substantial. According to the Times, experts surmised that between two-thirds and four-fifths of water agencies in California charged tiered rates for usage.

Especially in Southern California, the ruling has thrown a monkeywrench into major plans for an overhaul of the tier system. “The Los Angeles Department of Water and Power currently uses a two-tier rate structure, but agency officials have said they are preparing to roll out a revised system that would employ four tiers and that would make high water use even more costly than it is now,” the Times reported.

Tim Quinn, executive director of the Association of California Water Agencies, told the Sacramento Bee that the ruling was currently under legal review by attorneys. But plaintiffs’ attorney Benjamin Benumof told the Bee that, on their view, government could effectively promote conservation by, for instance, increasing rebates for low-flow appliances and devices.

A turn to penalties

An approach utilized in Santa Cruz offered perhaps the quickest option for municipalities straining to meet new standards without tiered rate pricing. There, the Mercury News reported, the city’s recently reinstated mandatory rationing program hits high users with a flat $50 fee per “unit” of consumption in excess of 11 units:

“That fee, which sent some water guzzlers’ bills skyrocketing, will not be affected by Monday’s court ruling, however, said Rosemary Menard, Santa Cruz’s water director, because it is clearly labeled a “penalty” in the city ordinance, and is not used to pay for daily operations of the water system.” 

Originally published by CalWatchdog.com