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A Different Kind of Governor...Tennessee-Style

Sick of all those ads flying back and forth between Meg Whitman and Jerry Brown? Now for something different. We give you Basil Marceaux:

$75 Billion or Else: Local Govt. Leaders Seek Additional Federal Aid to Avoid Major Cuts

 The United States Conference of Mayors released a survey recently that urged federal aid was necessary for municipal and county leaders to avoid making further cuts, such as laying off workers and closing services. The survey indicates that without additional aid, it is possible that as many as 500,000 workers could lose their jobs for this fiscal year. Local government leaders are hoping Congress will pass the Local Jobs for America Act so that $75 billion in direct aid is provided to areas that have high poverty rates. The Christian Science Monitor reports:

“Local officials say they are eliminating entire classes for police academies, closing public parks, and increasing class sizes as teachers get laid off. The reductions come at a time when demands for social services are increasing because of the high unemployment rate. […] ‘It’s vital to the survival of cities and towns throughout this country,’ said James Mitchell, a city council member from Charlotte, N.C., and a vice president at the National League of Cities, in a telephone press briefing.”

However, many experts believe that such legislation has little chance of passing in the Senate, as legislators are wary of bills that will add to the mounting deficit. But CSM points out that despite these concerns, Philadelphia Mayor Michael Nutter, an officer with the United States Conference of Mayors, stated, “I don’t care what the mood is in the Senate. I am more concerned about the mood of the people and they are [angry] that they don’t have a job.” Read more here.

27.6%: El Centro Ranks at the Top for Highest Unemployment in the Nation

According to the latest figures from the U.S. Bureau of Labor, in around three-quarters of major U.S. metropolitan areas, unemployment rates rose in the last month. It was reported that the rate rose in 291 of 374 areas in June from May and fell in 55 areas. Unfortunately, in cities with unemployment rates of 15 percent or higher, there are 10 California cities that match that description. In fact, the city with the highest unemployment in the nation is in the Golden State: El Centro, with a rate of unemployment at 27.6 percent. Despite the bad news, these metro areas also employed more workers than a month ago, so the labor force did grow. Here is a list of cities with the worst unemployment in the nation. You’ll notice that 9 California cities form the top 10:

Read more here. And what city had the lowest unemployment rate: Bismark, North Dakota.

City Shakedown: Bell Council Members Cut Pay; Finances to be Audited; DA Probe Ongoing

In the ongoing shakedown of city officials in Bell, pay cuts, resignations, and investigations are flying left and right. Earlier this week and under tremendous pressure, Bell’s City Council voted to take a 90 percent pay decrease so that council members will only earn $673 a month. Four council members were reported to be earning salaries close to $100,000. The LA Times also reports that Mayor Oscar Hernandez and Vice Mayor Teresa Jacobo will finish their terms with no pay and Hernandez has indicated that he will not seek reelection. For many residents of Bell, however, the pay cuts are not enough, as they expected council members to resign.

Pedro Carrillo is serving as the city’s the interim chief administrative officer and he has asked State Controller John Chiang to conduct an independent audit of the city's finances to meet demands for more transparency. Also, it has been announced that a probe into allegations of conflicts of interest involving municipal business and voter fraud has been expanded by Dist. Atty. Steve Cooley. The Times reports:

“Cooley also said investigators were looking at whether council members had received pay for meetings they did not attend or meetings that lasted only a few minutes. Most of the pay that Bell council members received came not from their City Council salaries, but as stipends for serving on the boards of city panels, such as the Public Financing, Surplus Property, and Solid Waste and Recycling authorities. City records indicate that those boards performed little work and that their business was routinely conducted during council meetings. In some cases, the board meetings would last no more than a minute, according to the records.”

Several elections are being reviewed, including possible issues with absentee ballots. For more on the pending investigations, read here.

(Photo: Don Bartletti, Los Angeles Times)

Budget Updates: More Furloughs; Guv Steadfast; Min. Wage Hearing Pushed Back

It was announced Wednesday that effective this Sunday, furloughs are once again back on the table, less than one month after they were ended for 200,000 state workers. The governor’s latest executive order will require that employees take three unpaid days off per month. And to tie it into the budget battle, this furlough period is not set to end until lawmakers pass a budget. Notably, those who will be exempted from this latest furlough are those working for departments that collect revenue. Workers in the six unions that agreed to pension reform are also excluded. The Bee reports that Schwarzenegger spokesman Aaron McLear said of the order: “We have a fiscal crisis. We're doing what we have to do to conserve cash.” Read more here.

If you’re hoping to see Governor Schwarzenegger sign a budget anytime soon, then you might want to prepare for the fact that it could be his successor that actually approves a spending plan because Schwarzenegger is remaining steadfast about his claim that he will not sign anything unless it includes pension and budget reforms. The governor stated, “If I do not get all of the things that we need … I will not sign a budget, and it could actually drag out until the next governor gets into office.” So are Democratic leaders willing to wait it out? Senate President Pro Tem Darrell Steinberg countered that if the governor insists on having things only his way, then he's up for playing the waiting game.

In another budget update, the hearing date over when Controller John Chiang will have to issue minimum wage paychecks has been pushed back. What does that mean for state workers? They will not have to worry about receiving minimum wage until after September (and perhaps beyond). The Bee reports:

“It's not clear when the court will hear infeasibility arguments. The case hinges on expert testimony and analysis, so the two sides will need time to compile their evidence and witnesses, exchange the information and then break down the opposition's arguments. ‘So by our understanding," Endean said, "we're looking at full wages at least through September, if not beyond.’ The caveat: If the budget fight drags on, Gov. Arnold Schwarzenegger could order more furloughs.”

In his analysis of the budget stalemate that is approaching four weeks, KQED’s John Myers writes, “Meantime, legislative talks continue over how to end the stalemate but seem stuck on what's a fairly easy thing to understand -- neither Democrats nor Republicans are willing, for now, to sacrifice anything more than they've already given up.” Read more here.

Tax Time: Cities Look to the Ballot Box for Approval of Measures to Hike Sales Tax

In an effort to avoid cuts to a variety of services, cities across the state are looking to November’s ballot to have voters weigh increases in sales tax through local initiatives. Take the cities of Antioch, Concord, Santa Rosa, and San Francisco. In Antioch, the city council agreed to place on the ballot a measure that would hike the sales tax by a half-cent. If it is passed, the city’s tax rate would climb to 9.75 percent and supporters of the measure hope it will generate $4 million annually for local services. However, there were objections to the initiative from Antioch Chamber of Commerce and businesses.

Next is Concord, which also recently approved a half-cent sales tax increase initiative for fall’s ballot. Even though Concord has made many cuts, it still has a $5 million deficit and supporters of the measure suggest that the sales tax hike will reduce the city’s deficit. Just like Antioch, if the measure is passed, its tax rate would also climb to 9.75 percent. Concord is the third city in Contra Costa County to look to the ballot with such a measure.

And with the hope of generating an additional $6 million a year, the city of Santa Rosa has approved a ¼-cent sales tax for the November ballot. The city council voted unanimously in favor of the measure that supporters say will help the cash-strapped city avoid further cuts. Vice-mayor Gary Wysocky reluctantly supported the measure but suggested it would raise more funds than the city would need. According to the city’s chief financial officer, sales tax revenues have decreased for 15 consecutive quarters and property taxes are suffering from lower property values. Read more here.

Finally, for the first time in many years in San Francisco, voters will face a crowded ballot with proposals for three tax hikes, in addition to an increase to the vehicle registration fee. The taxes in question are an increase to the hotel tax by 2 percent to reach 17.5 percent to raise an estimated $35 million annually, an increase in the real estate transfer tax on transactions worth $5 million or more, and a measure that competes with the hotel tax that would close a loophole to tax online hotel reservations. Finally the increase in the vehicle registration fee would be hiked by $10 and it is hoped it would generate $5 million each year. Efforts to defeat these taxes are being arranged by a coalition of business groups. Read more here.

Decline in Cigarette Sales Matches Decline in Revenue for State and Health Services

Smoking cigarettes in undeniably bad for your health, and with higher taxes and prices for lighting up, it appears the health of the state’s economy has been affected by more people ultimately kicking their smoking habit. With the decline in smoking, the state has lost out on $74 million in tax revenues, which means that many health programs have had to find other sources for funds when revenue from cigarette taxes have proven less substantial in recent years. Currently, on average it costs over $5 for a pack, and the higher price has caused sales to plunge. Case in point, in 1980, 2.8 billion packs were sold in the state and last year the number sold was 972 million. Last year, cigarette sales were at their lowest level in a decade and the state Board of Equalization points out that “the 8.1 percent sales drop was the largest year-over-year decline since 2000.” The Bee reports:

“In all, the state collected $839 million in cigarette tax revenues during the just-completed fiscal year, compared with $913 million the year before. ‘It's definitely a bit of good news and bad news for us,’ said Diane Levin, chief deputy director of First 5 California, which gets most of its funding from state cigarette taxes to pay for anti-smoking education services and other programs that promote healthy living among Californians with young children. ‘Declining revenue isn't a new issue for us. We've been expecting it, and we've been planning for it,’ she said. ‘We're having to strategize to do more with less, to concentrate our focus in these tough times.’

Since funding health services has been a point of contention in budget negotiations, the drop in tax revenue has made providing services more difficult during tough economic times. Reportedly only 13 percent of the state’s population smokes cigarettes. Read more here.

State of the Internet: CA Cities Dominate List of Best-Wired Locations in the Country

With the release of its 1st Quarter, 2010 State of the Internet report, Akamai Technologies, Inc. has compiled data to offer insights on Internet statistics and accessibility to broadband technology around the world. The connection speed of cities around the world was examined to rank areas with the fastest broadband speed. There is a new city that places at the top of the list, but it’s not in the States, as its Masan, South Korea. The Bee points that the major highlights of the report include: Asia dominates the list, with over half (61) of the top cities in Japan; Only 12 U.S. cities made the list, with more than half (7) of such cities being in California; and Umea, Sweden is the fastest city in Europe, ranking #18 out of 100. In last quarter’s rankings, it was U.S. cities at the top, specifically Berkeley, Chapel Hill, and Stanford (CA). When looking at global average connection speeds, the U.S. is ranked 16th globally and overall Delaware is the state with the fastest average connection. So if we’re looking just at the 10 best-wired cities in America, who ranks at the top? It’s in the good old Golden State, as California cities form the majority of the list, which can be found here:

1. Monterey Park, CA
2. Riverside, CA
3. Fairfield, CA
4. Capitol Heights, MD
5. Hayward, CA
6. Walnut Creek, CA
7. Staten Island, NY
8. Oakland, CA
9. San Mateo, CA
10. Olympia, WA

The list can be viewed here. Read more about the rankings and Akamai here.

Temecula Mosque Provokes Protest; City’s Planning Commission Pushes Back Hearing Date

The city of Temecula’s Planning Commission has pushed back a hearing on a building plan for a 25,000-square-foot mosque that has created controversy and a scheduled protest from local Tea Partiers in Southwest Riverside County. The City Council noted that a traffic study would have to be completed so a commission reviewing the structure would probably not occur until November. The Islamic Center of Temecula Valley wants to build a new mosque to replace a 12-year-old facility with a larger facility. Even though the current mosque has been around for years, the creation of a new building has drawn criticism from some Tea Partiers in the region who are planning the protest for Friday. The Press-Enterprise reports that a web site for the Southwest Riverside County Tea Party was critical of Islam and urged protestors to bring Bibles, flags and dogs to the event. The LA Times reports that Hussam Ayloush, executive director of the Greater Los Angeles Area chapter of the Council on American-Islamic Relations, stated the following of opposition to the mosque:

“Opposing the rights of certain Americans to freely practice religion is not only shameful and immoral, but unconstitutional. I am confident that our fellow Americans from all faith backgrounds will join us in rejecting such KKK tactics of intolerance, bigotry and intimidation.”

Some reports have circulated that the protest may be canceled now and leaders at the Islamic center have said that while they are disappointed by the reaction, they don’t want any counter-protesting, which may only escalate tensions. Some Tea Partiers in the region have called those orchestrating the protest a fringe faction. You can read more here and here.

(Photo: Irfan Khan / Los Angeles Times)

Cities at the Coffee Shop: Rankings of Most Caffeinated Metro Areas

Does your city need even more coffee shops? You might think so if you love a cup of joe and live in one of the nation’s most caffeine-addicted cities. The Daily Beast has compiled a list of the country’s most caffeinated cities by crunching the data with a list of cities with the largest number of coffee shops, most caffeine consumption, and average monthly spending. Unsurprisingly, the Pacific Northwest came out on top, specifically the cities of Seattle and Portland. Residents of Seattle on average spend around $36 a month of coffee. However, out of the top 10, California has three cities that some of the most addicted to a morning jolt of coffee. The Daily Beast reports that “Coffee is a $60 billion global industry with outposts on nearly every urban block” and Americans take in 280 milligrams of caffeine each day. Here’s a list of the top 10 caffeinated cites:

1. Seattle, Washington
2. Portland, Oregon
3. San Jose, CA
4. Denver, CO
5. San Francisco, CA
6. Chicago, Illinois
7. Phoenix, AZ
8. Los Angeles, CA
9. New York, NY
10. Boston, MA

 For the full list of the top 20, view here.