CaliforniaCityNews.org

Dems Say Budget Deal 'Very Close'

When legislative leaders say they're "very close" to a budget deal, it generally means whatever agreement is on the table is about to blow up.  Nevertheless, "very close" was the word from Senate Pro Tem Steinberg on Friday, after a 3-hour phone session with Governor Schwarzenegger (who is Idaho on vacation).

You may recall, shortly before Christmas the Democrats passed a budget package, one that included tax increases but without the requisite 2/3 majority for such a proposal.  Legislative Republicans are dug in hard against any tax increase, and even while Schwarzenegger has vowed to veto the original Democrat proposal, they continue to see a majority-only "revenue enhancement" as the "only game in town," to use the Pro Tem's own words. 

The state is set to run out of money in less than 60 days, so here's hoping the deal they're "very close" to is actually worth writing about.    

Congress Looks to Stimulate Economy Via Muni Bonds

Congressional Democrats are seeking to expand funding for public works and housing projects with a new tax break for municipal bondholders. The proposal has been advanced by Richard Neal, chairman of the House Ways and Means subcommittee, and involves relief of Alternative Minimum Tax obligations that currently go with holding municipal bonds.  Neal wants to include the plan in economic recovery legislation.

Read more from Bloomberg.

State of America’s Cities: 2008

Skyrocketing health care costs, crumbling infrastructure and failing schools are taking their toll on local governments across the U.S., according to a new survey of municipal officials released by the National League of Cities.

The report, 2008 State of America’s Cities: Annual Opinion Survey of Municipal Officials, was compiled by NLC from a survey of nearly 400 municipal officials.

Some highlights of the report:

• Six in 10 (62 percent) of city officials report that overall economic conditions have worsened during the last year, and seven in 10 (69 percent) report that overall economic conditions are either a major (19 percent) or moderate (50 percent) problem for their city.

• City officials from all parts of metropolitan areas — core cities in larger (78 percent) and smaller-mid-sized (54 percent) regions, inner ring suburbs (68 percent) and developing suburbs (57 percent) — are more likely to say that foreclosures have worsened over the past year, than to report that they have improved or not changed.

• City relations with federal (21 percent) and state (32 percent) partners have worsened over the past year, while relations with regional (35 percent) and business and civic (42 percent) partners have improved.

• One in two (54 percent) city officials say that their ability to finance city services is either a major (36 percent) or moderate (18 percent) problem for their city; a problem exacerbated by negative impacts of volatile fuel and energy costs. 

Download the full report here.

City Shuts Down for 2 Weeks to Save Money

Watsonville has shut its doors in an extreme measure to save some cash.  The closure, which started Monday, was approved by the city council earlier this month to help reduce a $561,000 deficit for the fiscal year.  It doesn't impact essential servicves, such as water delivery or grabage pickup.

Read more in the Santa Cruz Sentinel.

Tis the Season

Merry Christmas from CityNews.  Below is the tree lighting and accompanying carols in Union Square, San Francisco.

Have video of your city's tree lighting or holiday ceremony?  Email us, we'll post it.

LA Controllers' Report Points to Privatization

Los Angeles City Controller Laura Chick commissioned a report to examine city services, and the results are in.  L.A.-based Public Financial Management Inc., recommended this week that the city privatize operations in "nine broad areas, including animal shelters and city-owned golf courses."

The report also proposed privatization of the Ontario Airport and joint development with private partners of vacant or underutilized city parcels.  Read more in the LA Biz Journal.

Labor Looks to Block Guv's Furlough Plan

State employee unions filed labor complaints Monday in the hopes of blocking Governor Schwarzenegger's plan to furlough workers to deal with the state's budget deficit.

SEIU and the Professional Engineer's union are leading the charge.  Read full analysis in the San Jose Merc, LA Times and the SacBee.

In a piece of semi-related irony, the Governor will announce a special election in the coming weeks to fill the vacated congressional seat left by Rep. Hilda Solis, whom President-elect Obama is to appoint as his Labor Secretary.  Read more here.

This City is for the Boars

In one of the quirkiest stories we've come across in awhile, it seems that wild boar have run afoul in the German capital of Berlin.  A standoff between those who would cull the population and a groundswell of public support for he intelligent, though often dangerous, boars has ensued.

It seems that though hunters have shot over 500 boars in the last year, the number of sus scrofa continue to swell, prompting one observer to note " "Ultimately we must learn to share the city with the swine." We wonder what that sounds like in the original German?  

Yes, it's the heart warming story of "inappropriate boar-human mingling" and "vegans and whatnot" as told by the Wall Street Journal.   

America's Most Stressful Cities

Forbes, great giver of city top 10 lists, is out with another...the nation's most stressful cities.  All on the list are big city-types, and California cities occupy the 4, 5 and 6 spots on this ignominious roster. 

LA seems natural at number 4, with its traditionally high traffic, pollution and crime.  San Franciscans who chide Angelenos for these issues may not have much room to chortle, however, with that city clocking in just one spot behind.  High density, fuel and prices are cited as the culprits. 

But San Diego at number 6?  According to Forbes, "it's got the fifth least affordable housing of the 40 major metro areas surveyed, a 6.4% unemployment rate and car-happy residents paying $3.81 for a gallon of gas."  Well, gas prices have dropped, and housing prices may have too, so maybe Forbes oughta take another look.   

And who's number 1?  Chicago... though the Cubs' perennial postseason failings aren't mentioned among the causes.  Read the story here.

Anaheim Loses Court Fight Against Angels

One city found itself on the wrong side of the angels this week, as the Court of Appeals ruled against the City of Anaheim in its effort to take back its baseball team. 

The "Los Angeles Angels of Anaheim" will remain such, over the objections of the second city in their name.  Team owner Arte Moreno added the City of Angels to the team's moniker in 2003 in an attempt to broaden the franchise's appeal further across the Southland.  Anaheim was, as to be expected, fiercely opposed and its mayor has not darkened the door of his own luxury box ever since.

The team's lease with its stadium expires in 2016, and is not expected to negotiate an extension that does reinforce the Los Angeles branding, perhaps dropping the Anaheim reference all together. 

Read more in the OC Register.