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July 23, 2008

The Vallejo Debacle: A Fiscal Crisis Solution for California Cities

Tedcosta Ted Costa, father of the Gray Davis recall that set in motion the gubernatorial ambitions of Arnold Schwarzenegger, has been closely watching the financial demise of Vallejo. Often regarded as the state's perennial gadfly, Ted Costa has arguably utilized (and certainly been a part of) enough revolutionary initiative movements in California to merit close scrutiny of his prognostications.

His latest prediction: The impending financial tidal wave resulting from bloated pensions and overextended cities will wipe out many a municipality. This pension tsunami will lead to a government shake-up and taxpayer revolt as significant as Proposition 13 -- a measure he had something to do with as an associate of Paul Gann -- whose organization, People's Advocate, Costa now heads.

Today, in conjunction with economic consultants Laffer Associates, he contends that rather than piecemeal solutions or higher taxes, "there is a smarter solution to the predicament in which local governments find themselves."  He proposes a fiscal responsibility solution made up of six concrete steps and calls out those cities and counties that face imminent financial danger.

Read the full report here. Remember to post comments on this serious subject below, but also know that Ted Costa has asked CCN to request that city officials write him with your thoughts directly at tedcosta@tedcosta.com

Polling Numbers Dip For Governor And Legislature As Budget Problems Worsen

Arnold Senate Pro Tem Don Perata has scheduled a vote on the State Budget for next Tuesday, according to a report in the SacBee.  This news comes in the same day that Governor Schwarzenegger has suggested he will cut all state worker pay to the federal minimum wage ($6.55 an hour) while the budget standoff continues, and a new Field Poll pegged the Guv's approval rating at 46%.  He's doing better than the legislature, who's hovering at 36%, which is somewhat inexplicably about twice the U.S. congressional approval rating. 

The Field Poll, among the most respected surveyors of Californians political attitudes, released troubling data for the states lawmakers - and perhaps for some cities considering tax measures on the ballot in November. "Voters are increasingly worried about the budget shortfall" scream the headlines of The Riverside Press Enterprise in summing up the sentiments of the states voters.

More than two-thirds of voters think the state's budget problems are "very serious," up by about 10 points since December, according to a non-partisan Field Poll released today.

The percentage of voters with "not much" confidence in Schwarzenegger and the Legislature's ability to resolve the state's $15 billion-plus shortfall correctly has grown by several points, the poll found. "I think they're going to hit us with more taxes. They're not going to do it the right way," said Field Poll respondent Thomas Rhynes, 48, of Victorville. The two-time Schwarzenegger voter said the governor "has sold out."

"I think he's going along with the Legislature up there. He wants to be popular," said Rhynes, a Republican. For an in-depth look into the polling numbers visit The Sacramento Bee here.

Congress Acts To Slow Mortgage Meltdown

After President Bush withdrew veto threats the US House of representatives passed sweeping legislation that had been actively lobbied by the nation's mayors and city leaders as an effort to stem the problems arising from the mortgage crisis enveloping the country.

CNN reports on the particulars of the bill that was also lobbied by The League of California Cities and The National League of Cities.

City Selling Public Toliets on eBay

Ebay Deeming its $5 million investment in self-cleaning public restrooms as money down the toilet, Seattle is scuttling the program and dishing the commodes on eBay.  Starting bid is $89,000... and you can still be the first to bid on these pieces of public restroom history!

Bid here, or read more on MSNBC.

Cities Can Now Make Energy Saver Loans

Cities and counties can now make low-interest loans to homeowners and businesses to install solar panels, high-efficiency air conditioners and other energy-saving improvements, thanks to a state law going into effect this week. 

The law owes its passage to a couple unlikely bedfellows, the cities of Berkeley and Palm Desert.  Read more in the LA Times report here.

Laguna Beach Opposes Efforts to Curb Same Sex Weddings

Citing the city's "live-and-let-live attitude," the city council of Laguna Beach voted unanimously to oppose November's Proposition 8, an effort to ban same sex weddings throughout the state.  The council, most of whom are Republican, followed in the footsteps of the City of Los Angeles, reported as the first to oppose Prop 8.

Read more in the LA Times.

No WiFi in Sebastapol

Wifi1 Has the worry over electro-magnetic waves returned?  Residents in Sebastapol expressed vehement concerns about a proposed city-wide wireless internet network, so much so that the council was forced to ground the program this week.  "I take seriously the fears of some of our citizens and respect their concerns, although I believe that their fears regarding wi-fi are misplaced," said councilman Larry Robinson.

Read more here.

Plastic Bags are Out in City of LA

Come 2010 you may never hear "paper or plastic?' in LA grocery stores again -- that is, unless the statePlasticbagban steps up and imposes a 25 cent tax on the environmentally unfriendly sacks.  According to the LA Times report, "The ban was proposed by Councilman Ed Reyes, who called plastic bags "the graffiti of the L.A. River."

Read the full story here.

"George W." Sewage Plant makes the Ballot

You've heard of the Kennedy Space Center, now San Francisco residents have a choice of imparting a new kind of legacy on outgoing President George W. Bush.  The movement to rename a city sewage plant in W's name has officially made the November ballot, and Willie Brown is voting yes.

July 21, 2008

Anti Gang Tax in Sacramento?

You've heard of sales tax measures to cover public safety costs, but specifically anti-gang measures?  That's precisely what the Sacramento City Council is pondering Tuesday night.  The proposed quarter cent sales tax would go towards "gang prevention, intervention and enforcement measures."  The SacBee reports the measure would generate about $16 million a year.

Read the full story here.