Pacific Progressive

Alabama's Unemployment Insurance Woes Have Roots in a Happier Time

by Olga Pierce from ProPublica

The State of Alabama’s unemployment insurance trust fund is the latest to collapse under the weight of the Great Recession.

A year ago, the state’s fund had $395 million in it, but by the end of last month, it was nearly empty. Since then, the state has borrowed more than $27 million just to keep benefit checks flowing – triggering a hefty tax increase on businesses and potential cuts for unemployed workers just as the economy is struggling to recover.

Alabama’s trust fund was able to break even over the past few years, despite having a very low tax rate (the 38^th lowest in the U.S.), because an economic boom kept unemployment low, and the state offered bare-bones benefits.

Ideally, a state’s fund grows during boom times so that when recession hits, reserves are available to keep it afloat. Alabama’s reserve level, however, stayed put at about six months-worth, below the national average and far below the eighteen months many experts recommend.

(Read more about states’ poor unemployment insurance planning here, in our collaboration with public radio’s Marketplace.)

CSUF Students Discuss Issues with President Milton Gordon

from the Daily Titan, in two parts

Harvey Milk Day Recognized and Same-Sex Marriages Pre-Prop 8 and Out-of-State Recognized

Today Governor Schwarzenegger signed into law two historic LGBT rights bills - recognizing the contributions of slain civil rights leader Harvey Milk and a bill that underscores that same-sex couples married before the passage of Proposition 8 are entitled to full recognition as married spouses in California, regardless of whether they married in California or out of state. Both bills were sponsored by Equality California (EQCA) and were introduced by Senator Mark Leno (D-San Francisco). The bills were the top priority of EQCA, the state's leading LGBT rights organization and were targeted by right wing anti-gay groups who worked to defeat the bills first in the legislature and then by urging the Governor to veto the measures.

"We are grateful to the Governor for signing these critical and groundbreaking measures into law and rising above partisan politics to improve the lives of LGBT Californians," said EQCA Executive Director Geoff Kors.

The Harvey Milk Day bill marks the first time in the nation's history that a state will officially recognize and celebrate the contributions of an openly LGBT person with an annual "day of special significance."  "Californians will now learn about Harvey's amazing contributions to the advancement of civil rights for decades to come," Kors said. "He is a role model to millions, and this legislation will help ensure his legacy lives on forever."

Bills Signed and Vetoed by Gov. Schwarzenegger

At the close of the Legislative session, 700 bills were sitting on Governor Schwarzenegger's desk for signature.  This is first in a series that chips away at the stack of bills.  These are just some of the high/low lights.

Signed Into Law

SB 36 - Senator Ron Calderon (D-Montebello) - Sets up licensing and registration requirements and background checks for mortgage loan originators and loan brokers.  Currently, anyone holding a California real estate license can go into mortgage lending or loan brokering without any additional training, licensing or registration required.

SB 117 - Senator Ellen Corbett (D - San Leandro) -  Improves access to adult day care thru Medi-Cal

SB 150 - Senator Roderick White (D-Inglewood) - Allows some flexibility in sentencing by amending Prop 21. 

SB 224 - Senator Lou Correa (D-Santa Ana) - Extends CalHome grants to mobilehome owners and allows down payment assistance loans to be subordinated to allow refinancing of the home.

SB 283 - Senator Mark DeSaulnier (D-Concord) - Allows buildings to have both drinking water (potable water) and recycled water (grey water) plumbing systems. This is huge because it's a step towards using grey water more effectively.

Central Valley Water Transfers Could Become Easier Under 2 Congressional Bills

Congress is considering two bills which would help to make transfer of water in the Central Valley of California easier.  The Central Valley is the center of California's agriculture, growing crops for both use in California and sold world wide.  Stone fruits like apricots and plums, lettuce, nuts, and tomatoes are just some of the crops grown in the Central Valley. 

A bill introduced by Senators Dianne Feinstein and Barbara Boxer wold allow voluntary water transfers of up to 250,000 to 300,000 acre feet of water per year to the Bureau of Reclamation, the manager of the Central Valley Water Project.  Under the bill, the Bureau of Reclamation would have authority to approve water transfers in the San Joaquin Valley.  Environmental reviews would be streamlined by allowing reviews to be conducted on a program basis instead of a project-by-project basis as is currently done.  

“Many communities in California’s Central Valley are in desperate need of more water as a result of a three-year drought, but there are some parts of the Valley that have surplus water to sell,” Senator Feinstein said. “This bill would grant the Bureau of Reclamation new authority to allow surplus water to be transferred to those who need it on an expedited basis. It is a reasonable and timely solution to the water crisis that would streamline the environmental review process and cut out unnecessary delays. It will allow struggling farmers to access roughly 250,000 to 300,000 more acre-feet of water while ensuring that these transfers comply with critical environmental regulations.”

OCTA Looking to Eliminate Routes - Give OCTA Feedback on These Proposals

OCTA is looking to restructure bus service to fit the available budget. Staff has prepared several proposals for bus service reductions and have taken the presentations to public meetings to get input.  OCTA has also bought ads and put comment cards on buses to get feedback on proposals.  

If you use one of these buses, please tell OCTA what will happen if the bus is no longer available to you. These routes are targeted for possible elimination.  When you buy a bus pass, drop off a comment card or a letter.  Attend the public meeting on October 26 at 9 AM at OCTA headquarters in Orange. Fill out a comment card and drop it in the mail. But, please, for your sake, let OCTA know if these bus service cuts will impact you.  If your school is impacted, have your teachers, professors, principals and deans call.  If your business is impacted, have the managers and human resources department call OCTA to let them know this is a problem.

The routes listed for elimination are given below, along with the major landmarks along the route.  If implemented, the routes will be eliminated starting in March 2010.

Route 20 - La Habra to Yorba Linda via Imperial Highway - Yorba Linda Middle School, Yorba Linda Community Center, Downtown Yorba Linda, Brea Gateway Center, Brea Promenade, Brea Mall, Imperial Middle School, La Habra Marketplace

Route 21 - Fullerton to Huntington Beach via Valley View St/Bolsa Chica Rd - Buena Park High School, John F. Kennedy High School, Centerpointe, Cypress High School, Cypress College, Hilton D. Bell Intermediate School, Marina High School, Boeing, Huntington Beach Industrial Area, Sunset Beach

RFP for Sale of OC Fairgrounds Released - Profit Participation Required and No Use Restrictions

The RFP for the sale of the Orange County Fair and Exhibit Center (OCFEC) (aka OC Fairgrounds) has been released.  Regarding profit participation, the RFP states, "In addition to the initial cash payment for the Property, the State will retain the right to profit participation in the Property in the event that all or a portion of the Property is no longer used for fairground and event uses.  The State will exercise this right through the recordation of the profit participation covenant as a deed restriction on the title to the Property."  In other words, if the Fairgrounds becomes retail or residential, the State still gets a cut of the profits from the sale and lease of the subsequent development.

As far as the future use of the Fairgrounds, the only restriction is that the mineral rights belong to the State.  After the property is sold, Costa Mesa becomes the planning authority.  The RFP also states that even though there was a Master Plan adopted in 2003 by the 32nd District Agricultural Association calling for the continued use of the property as a Fair and related activities, Costa Mesa never adopted the Master Plan. The RFP states, " It is important to note that the Master Plan has not been adopted by the City of Costa Mesa, and that upon the Property's transfer to a private entity, the Master Plan will carry no authoritative backing."

In other words, once sold, with enough votes on the Costa Mesa Planning Commission and City Council, the OC Fair could be carved up into retail, residential, an entertainment district or other uses.  Costa Mesa would be left to police that, and, depending on the whims of Council, a hotel district or lots of condos or retail may look very attractive from a tax base standpoint.  Fasten your seatbelts, it's going to be a bumpy ride.

Download OCF_RFP_2009FINAL

Key Dates

Taking of Transit Funds Not Allowed - California Supreme Court Rejects State's Appeal

On September 30, 2009, the California Supreme Court declined to hear the appeal by the State of California regarding the taking of transit funds to close a budget gap.  (If you are looking up the case, use Shaw v. Chiang.) 

The original suit was filed after $1.19 billion was taken from the Public Transportation Account (PTA) to close a budget gap during 2007-08.  The suit argued that the taking of the funds was unconstitutional and violated a number of voter enacted  measures including Prop 116 and Prop 1A.  The suit also argued that the PTA was a trust fund for mass transit money and, as a result, the money could only be spent on mass transit.

The State countered saying that they were spending the money on transit, just different forms of transit like repayment of Prop 42 loans and Prop 116 bond debt service.  The Appellate Court denied the argument and ruled that the takings were unconstitutional.  In response, the State appealed to the State Supreme Court, which denied the appeal on September 30. (If you want more detailed information on this case which is reliable and readable, California Transit Association has information on their site.)

What does this mean for transit riders and OCTA? This ruling opens up possibilities of money trickling back sometime in the future, but not immediately.  In a big case like this, there will be other moves, both legal and legislative, to keep the money in the State's bank account and not released to transit agencies.  If  you have ever won a judgment in court, you find out getting the judgment is only the first battle. Actually collecting the money is the second battle, and often takes you back to court again.

Then, when the money does start coming back, there is the question of how much and how it will be divided.  OCTA could see some funds coming their way, but it's too early to tell when and how much.

In the meantime, OCTA still needs to figure out how to keep a workable bus system in Orange County. There is a possibility that other funding sources could be tapped or could "loan money" to the bus system for a few years to get over the current crisis.  There is still the shrinking sales tax revenue problem to deal with.  Other transit funds have been raided or cut since the taking of funds which led to the court case.  There are multiple funding issues to be understood and dealt with.

OCTA, like all other transit agencies in the state, has to figure out how to maintain service with a diminishing budget.  The Supreme Court action is a step in the right direction and does bring hope to the rather difficult bus transit situation in the area.

 

Impact of State Budget Cuts on Orange County

State budget cuts caused by an obstructive minority of Republicans in the State Legislature are causing hardship for all Californians. Even though the majority rules when it comes to deciding elections, a minority in the State Legislature can force the rest of California to live in a way that they didn't vote for.

In Orange County, the pain is made worse by the Supervisors unwillingness to backfill programs cut by the State or to aggressively seek other sources of funding.  At the most recent Orange County Board of Supervisors meeting, the pain of budget cuts was laid out in detail. 

• Eliminate Prop 36 Substance Abuse and Crime Prevention Act Funding  -  $1.1 M Probation Department, $328,483 District Attorney, $328,483 Public Defender , $4,1114,760 OTP 10 full time positions in Probation Department, 9 other positions
• CalWORKS - $481,491 and 5 full time positions
• HIV Reduction- $1,399,109 and 9.5 full time positions'
• Early and Periodic Screening, Diagnosis, and Treatment Services (EPSDT) - $470,066
• Eliminate Maternal, Child,  and Adolescent Health - $65,304
• Children's Dental Disease Prevention - Healthy Smiles - $240,219
• Adolescent Family LIfe Program - $550,762
• HIV Prevention - $441,482
• Mental Health Managed Care - $4,313,800
• Statewide System Automation for Social Services Agency - $249,691
• Medi-Cal Administration - $700,000
• In Home Supportive Services (IHSS) Public Authority - $578,397
• Child Welfare Services - $5 M
• Foster Care Administration - $2,809,703
• Transitional Housing Program (THP) Plus - $313,877
• Redevelopment Agency Revenue Shift - $8,788,594
• Community Based Services Programs - $268,390
• General Fund Fund Prop 1A Suspension - $37 M
• OC Parks Prop 1A Suspension - $4,100,000
• OC Libraries Prop 1A Suspension - $3,100,000
• Flood Control District Prop 1A Suspension - $5,300,000
• OC Fire Authority Prop 1A Suspension - $13.8 M

The documents presented to the Board of Supervisors are here:

Download StateBudgetImpactsSept09

Download CountyBudgetImpactsSept09

States Will Drag on Economic Growth and Job Recovery

State Deficits Will Continue Through 2009 and 2010

by Christian E. Weller, Scott Levy, Amanda Logan at the Center for American Progress

State budgets are in trouble. State legislators, faced with declining tax receipts and a larger share of their populations requiring more government-provided services, have been forced to make deep cuts into their already stretched budgets. And this round of budget cuts will not be the last that states are forced to make as a result of the recession that began in December 2007. In fact, according to the Center of Budget and Policy Priorities, 48 stateshave either addressed or are now facing shortfalls in their budgets for the 2010 fiscal year, and 36 states are already anticipating shortfalls in fiscal year 2011. The situation may continue to worsen for many states, even if we are nearing the end of the recession.

Our analysis shows that state and local governments typically support the economy by increasing spending and employment levels during the first year of a recession when the private sector is declining. States have limited ability to modify the level of taxes and services for a fiscal year after they pass a budget, which means there is a lag between the decline in economic conditions and responses from the states. It also means that state and local governments tend to maintain their spending at pre-recession levels for the first year after a recession begins. State and local government employment levels therefore continue to rise during the first year of a recession, which moderates the intensity of the recession by providing the labor market with additional jobs.

State and local spending and employment have indeed helped prop up the currently weak economy. But the realities of state and local government budgets catch up during the second year of a recession as public sector employment growth slows and spending decreases. This is generally not a big problem because the private sector is usually already in full recovery mode, adding growth and jobs. Yet this recession is already in its second year and has lasted longer than any recession since 1933.

Bring Majority Rule to California

Under current terms of the State Constitution, the elected voice of the majority of Californians can be drowned out by an obstructive minority.  The minority can stop school funding, stop protections for abused women and children, stop aid for the elderly and disabled.  The elected majority, which is the elected voice of the people, can't be heard.   George Lakoff writes more about how to restore majority rule and bring sanity back to California. 

72nd AD Special Election Dates Announced

Candidate filing for the vacant 72nd AD seat created by the resignation of Assemblyman Mike "Spanky" Duvall starts immediately today, September 22, 2009.  Candidates have until 5 PM on Monday, October 5 to file papers.

The election schedule is as follows:

September 22 - October 5, 2009 - Declaration of Candidacy and Nomination Papers Filing Period. During this time, the Statement of Economic Interest and Candidate Statement of Qualifications for Legislative Office must be filed.

September 22 - November 3, 2009 - Write-candidate nominations

October 5 - 15, 2009 - Public Review for Candidate's Statements of Qualifications and Ballot Designations

October 6, 2009 - First Pre-Election Campaign Disclosure Statements Due

October 12, 2009 - Certified List of Candidates

October 6 - November 7, 2009 - County Sample Ballot Pamphlet Mailing

October 19 - November 10, 2009 - Vote by Mail Voting

November 1 - November 16, 2009 - Last Campaign Contribution Reporting Period

November 2, 2009 - Last Day to Register to Vote in Special Primary Election

November 5, 2009 - Second Pre-Election Campaign Disclosure Statement Due

November 11 - November 17, 2009 - Late Vote by Mail 

November 17, 2009 - Special Primary Election Day - All vote by mail ballots are due to Registrar of Voters by 8 PM.

**** If a candidate receives a simple majority (50% + 1 vote) during the Special Primary Election, that candidate is the winner.  If there is no simple majority winner, a Special General Election will be held with the highest vote getter from each party going on the ballot.

21% of California Medical Claims Denied by Insurers

Insurance companies are the real death panels - they are the ones who decide if you get treatment that will allow you to live or if you will be denied treatment because you will cost the company too much money.  A recent study by the California Nurses Association (CNA) and National Nurses Organizing Committee (NNOC) found that from 2002 thru June 30, 2009, 22% of all claims were rejected by the six largest insurance companies operating in California.  That is over 47 million rejected insurance claims or over 17,000 per day.

The data was submitted by insurers to the California Department of Managed Health Care, which oversees health care insurance in California.

The claims denial rates for the first six months of 2009:

39.6% - PacifiCare

32.7% - Cigna

30% - HealthNet

28.3% - Kaiser Permanente

27.9% - Blue Cross

6.4% - Aetna

"With all the dishonest claims made by some politicians about alleged "death panels" in proposed national legislation, the reality for patients today is a daily cold-hearted rejection of desperately needed medical care by the nation's biggest and wealthiest insurance companies simply because they don't want to pay for it," said Deborah Burger, RN, CNA/NNOC co-president.

2009 Legislative Review - How States Closed Budget Gaps

From the Pew Center on the States, part of the Pew Charitable Trusts

State lawmakers this year made deep cuts, raised taxes, and borrowed funds to cover a staggering $215 billion in estimated budget gaps for 2009 and 2010—the equivalent of nearly $700 for every man, woman and child in the country, according to the annual 2009 Legislative Review released this month by Stateline.org, a project of the Pew Center on the States (PCS).

The report, online at http://www.stateline.org/live/static/Legislative_Year_in_Review_2009, offers:

• Summaries of how each state closed its budget gap and used federal stimulus funds; and
• Trends developing in key areas, such as education, energy and health care.

“This was a year of fiscal reckoning for states of every size, in every region of the country,” said Sue Urahn, managing director of PCS. “The challenges are far from over — states will face even tougher choices in the next couple of years.”

OC Fairgrounds Sale - Staff Changes, Lack of Information and Too Many Rumors

The pending sale of the grounds of the Orange County Fair and Events Center (OCFEC) in Costa Mesa has vendors upset and rumors swirling.  Vendors are upset because of the lack of clear information about what is going on and changes in staff at the fairgrounds. The rumors about what is or is not happening don't help make the situation calmer.

At the August 27, 2009 meeting of the fairgrounds board of directors, two vendors who use the fairgrounds in the non-fair season spoke about problems they face in doing business with the fairgrounds staff.  Memory Rose from Extreme Motorsports Expo and Camila Richter of the Sugar Plum Arts and Crafts Festivals discussed their recent experiences.

90 Day Booking Window?

Memory Rose is the show manager for the Extreme Motorsports Expo.  The expo was at the fairgrounds May 15, 16, & 17 2009, and drew over 35,000 during the three days of the expo.  Buildings 10 and 12 were filled, along with the vendor space between 10 and 12 (Parade of Products).  The areas around the buildings were also rented by exhibitors. An Extreme Truck Show, Monster School Bus Rides, and the Ball of Steel Stunts were featured entertainment.  Sterling BMW of Newport Beach was a major sponsor of the show.