CaliforniaCityNews.org

One City To Cut Up To 500 Jobs During Budget Crisis - Others Laying Off Outside Firms - Does It Pay To Be A "Contract" City?

The Sacramento Bee reports that up to 500 jobs may be cut to make ends meet in the river city - That is roughly 10% of the entire cities workforce. The state of California and many local governments are facing significant revenue shortfalls as a result of the weakening economy and real estate market crunch. In fact, the state is facing an estimated $16 billion shortfall.

Sacramento is facing a budget shortfall of $48 million to $58 million next fiscal year. The city's general fund budget is about $450 million.

Already, City Manager Ray Kerridge has ordered a hiring freeze with some exceptions, has told departments to cut travel and other unnecessary expenditures, and has asked each department to put together plans to cut from 10 percent to 20 percent of its budget.

This month, the city's Development Services Department has given pink slips to 28 full-time employees.

Meanwhile the cities of Elk Gorve, Rancho Cordova and Citrus Heights arent sweating layoffs - they'll be laying off firms instead.

Carson City 'Smackdown' Case Set To Go To Trial

In our inagural edition of California City News, we included three classic video clips of what came to be one of the most popular features on our site - The 'Gadfly Hall of Fame'. Perhaps the most famous California City clip was that taken during a Carson city council meeting where a bail bondswoman softly swipes at a commissioners head with a handful of papers as she passes her by.

The commissioner takes a dive and proceeds to fake a painful episode that would have made Danny Ainge blush during his time with the Boston Celtics in the 80's. And just like those old Lakers-Celtics rivalries - reliving the past is often a good thing to do...so here's the link to the Los Angeles Times story on the coming court case.

But, better yet...here's the video one more time...

Vallejo Staving Off Bankrupcty Vote?

The SF Chron is reporting a tenative deal between the city and its public safety unions may save the City of Vallejo from declaring bankruptcy at a hearing scheduled for tonight.

Full story here.

LA Times' Owner Stands to Profit from Eminent Domain Measure

The Capitol Weekly is reporting that the parent comapny for the LA Times, owned by Sam Zell, stands to gain up to $15 million if the Eminent Domain Prop 98 intiative passes in June.  Could be why they just donated $50,000 to the effort. 

It seems that the eliminations of rent control contained in the measure would result in substantial savings for Equity Lifestyle Properties Inc, who shares its chairman, Mr. Zell, with the Tribune Company, which owns the LA Times.  The Capitol Weekly has the story.

Governor Schwarzenegger May Be Considering An Executive Order To Begin Work On A Peripheral Canal

Developing Story...In a significant statement surrounding the water crisis in the state, Governor Arnold Schwarzenegger responded to suggestions that he may be on the verge of issuing an executive order to begin the planning and engineering of a peripheral canal.

In no uncertain terms, the Governor made it clear that the state is facing an unprecedented water crisis and that more storage and conveyance systems are required for a growing state. The building of a peripheral canal has long been the centerpiece of the agricultural communities vision for meeting the states water needs in California. The controversy surrounding the canal pits environmentalists,as well as Senate leader Don Perata, Senate Leader elect Darrel Steinberg, and other angry Senate Democrats who immediately responded with a letter of "shock" to the Governor against farmers, most Republicans concerned about water issues and the business community who see the movement of water as essential to meeting a growing states needs.

Underlying this issue is the Governors position on Proposition 98, a measure designed to eliminate rent control but that also has hidden provisions that would eliminate the use of eminent domain to construct a water project like the peripheral canal. CCN will continue to monitor this story and the Governor's position on Proposition 98 as the measure flies squarely in the face of his vision for meeting the states water needs.

From the Sacramento Bee:

Schwarzenegger's response to canal query

At an education event today in Sacramento, Gov. Arnold Schwarzenegger fielded a question about his administration's possible plan to move toward building a peripheral canal.

Asked by a reporter whether his administration is considering signing an executive order, Schwarzenegger said:Full Story (including the Governors statement) here in the Sacramento Bee.

California State Assembly Chooses Karen Bass As New Assembly Speaker

Wednesday, February 27th

It's Bass

Assemblywoman Karen Bass captured the speakership Wednesday night to replace Speaker Fabian Nunez following a round of closed-door meetings in the Capitol.

Bass, a Los Angeles Democrat and the Assembly's majority leader, received a majority of support in the Democratic caucus to win the job. Nunez engineered the deal that put her over the top. Several legislators, including some who had hoped to be speaker themselves, announced as they left the meeting that  Bass had won.

"She's got it," said Assemblyman Hector de la Torre, D-Southgate, after the final meeting.The action is expected to be formally ratified on March 11 at a Democratic caucus meeting.

Karen Bass will be the first African-American woman to serve in the post.

For more details, the following press stories: The Sacramento Bee ,Capitol Weekly, Greg Lucas weblog.

'In God We Trust' to Grace Another City Hall

The City of Cypress is the latest of over two dozen California cities to place the "In God We Trust" motto in their council chambers.  The OC Register has a thoughtful interview with Cypress City Councilman Leroy Mills on his views (and the Register's, of course) on the issue... or non-issue, as it appears in that city. 

Spay/Neuter Bill a Reality in LA

After a legislative effort -- backed by 'Price is Right' host Bob Barker (no pun intended) -- failed last year, LA Mayor Villaraigosa signed Tuesday an LA city ordinance requiring most dogs and cats to be spayed or neutered by the time they are 4 months old.  As written up by the AP, it is considered one of the nation's toughest laws on pet sterilization.  We say most as there are some exemptions, including pups chosen to serve on the LAPD's K-9 force -- thus increasing the desirability for that job among the city's pooch population. 

This also gives occasion to highlight one of our favorite, as yet unpublished, gadfly videos.  This one deals with the humane -- vs. inhumane -- approach to controlling the animal population.

Victorville the Next Charter City?

The Victorville Daily Press is reporting that Victorville is considering becoming a Charter city -- largely to combat unfunded mandates presented by the state government.  Mayor Terry Caldwell is quoted in the report as indicating "a charter could give the city more freedom to structure projects for less dollars and on a faster schedule than it can through the current state bureaucracy."  Any charter would have to be placed before city voters for approval. 

Fewer than a quarter of California cities are Charter cities, visit the League of California Cities' website for info on charters if your curiosity is peaked. 

Vallejo a Step Closer Bankruptcy

Talks with the city's labor representatives broke down early this week, and Vallejo is set to consider Chapter 9 bankruptcy tonight.  If the city moves forward with the filing, it would be the first city in California to go bankrupt, and the largest locality to do so after Orange County. 

Vallejo faces a $6 million shortfall and won't have money left to pay salaries as soon as March 31, according to this report in Bloomberg.  What happens next if the city does file?  According to the San Jose Merc, "a federal bankruptcy judge would sort through the city's finances, labor and other contracts, and then work out a fiscal plan to move forward."  In the meantime, city employees could be asked to stay home while the coffers are empty, though the city would likely have to find some way to provide essential services.

This would include public safety -- whose salaries and benefits currently comprise up to 80% of the budget.