Last week saw the final dips and dives of California’s budget debate roller coaster, as the legislature’s leaders came to agreement on how to most responsibly bridge the gaping $26.3 billion deficit. 

The Big 5 and Governor Arnold Schwarzenegger had come to what was believed to be final resolution on an agreement by Monday evening, but it was too much to assume the controversy would end there.

On Tuesday, there was concern in some circles that the newly minted deal would fall apart, as some members of the Assembly wrongly feared that the proposed cuts to the Department of Corrections would result in the early release of dangerous prisoners.

By late afternoon, Corrections Secretary Matthew Cate had given legislators and the public his assurances that such was not the case, and the path to a budget deal was clear once again.

Marking a key victory in a painful budget year, we were able to ward off the threat to suspend Proposition 98.  With the current budget agreement, schools will continue to be guaranteed 40 percent of general fund revenues and will be reimbursed nearly $10 billion in the future for needed 2008-09 cuts.

I am grateful that the state Assembly strongly rejected Schwarzenegger’s proposal to give a single company authority to skirt strict coastal environmental standards and issue the first off-shore drilling contract in California since the disastrous Santa Barbara oil spill of 1969.

Four decades ago, California’s central coast was decimated by 200,000 gallons of crude oil, soiling 35 miles of coastline with tar and dead and dying sea animals – from seals to diving birds, to dolphins whose blowholes had been clogged with crude.

There was no reasoning that would have allowed me to vote, in the dead of night, for a measure that plays fast and loose with the safety of our coastal resources when one of the biggest oil and natural gas reserves finds of my lifetime is right here in Kern County, as reported in last Wednesday’s Californian.

The budget agreed to last week pulls California out of its immediate cash crisis, allowing the state to stop issuing IOUs and demonstrating to our creditors that we — the leaders of both parties — will continue to work together in good faith to keep California’s economy strong.

Senate Majority Leader Dean Florez, D-Shafter, represents the 16th Senate District and is a candidate for lieutenant governor. His weekly column appears in The Californian on Tuesdays.

The enormity of February's federal stimulus bill is evident when you consider Kern County has already been awarded more than $200 million in projects, as we reported Sunday.

Take a look at what we've gotten so far and let us know what you think. We've already gotten some questions about the list and will try to answer them — send us yours, too.

Update: We were asked why stimulus money isn't being used to repair the Isabella Dam.

The Army Corps of Engineers just said that's because there's already plenty of money budgeted for the project.

The current fiscal year budget (for the year that ends this coming Sept. 30) had $8 million for the dam and the project is tentatively scheduled to get another $8 million in the fiscal year that starts Oct. 1.

— Government team leader Christine Bedell

We compiled this information today — local impacts of the state budget deal...

KERN COUNTY GOVERNMENT

General Kern County budget
• Loss of $28.8 million in property taxes and Williamson Act money.
• Loss of an estimated $13 million in gas tax money

Department of Human Services
• State would eliminate CalWORKS funding for the children of 4,100 adults. That money provides housing, food and clothes for 11,000 Kern County children.
“We are going to see a real increase in homelessness and crime,” said Director Pat Cheadle. “Most people will do things they would never do to feed their children.”

Aging and Adult Services
• Reduction in In-Home Supportive Services for non-critical clients.
• Would end services to between 400 and 500 seniors who need help around the house such as cleaning, cooking and errand running.

Mental Health Services
• Cut $3 million.
• Possibly require layoffs.

Source: Agency directors

CITY GOVERNMENT
City officials figure Bakersfield could see a $13.8 million hit this fiscal year, which started July 1, and another $4.8 million next fiscal year. (The city’s operating budget is about $368 million.)
Here’s the breakdown:
• $6.5 million of property tax revenues, to be repaid by the state in three years.
• $4.8 million of gas taxes — with no repayment to the city expected — to be repeated next fiscal year.
• $2.5 million in redevelopment funds with no repayment expected.
Bakersfield City Manager Alan Tandy called the grabs “massive amounts of money” that will worsen the city’s existing service cutbacks due to shrinking revenues.
Whether Bakersfield will join a possible lawsuit against the state, which Los Angeles County supervisors approved Tuesday, is up to the city council, Tandy said, though city staff believes the snagging of gas tax and redevelopment funds is “clearly illegal.”

HIGHER EDUCATION
Cal State Bakersfield President Horace Mitchell spoke to The Californian minutes after leaving a meeting of the CSU Board of Trustees in Long Beach on Tuesday.
With $584 million in cuts system wide and a $13.5 million cut approved for the Bakersfield campus, CSU trustees initiated a four-point strategy:
• Raise annual student fees by $672 for full-time undergraduate students. This 20 percent increase comes on the heels of a 10 percent increase approved in May.
• Staff furloughs approved by the board in all labor groups, although the faculty has not yet finished voting on whether they can live with such a measure.
If furloughs are taken twice a month — a 10 percent cut in pay for most employees — the CSU system would expect to save about $275 million this fiscal year, Mitchell said.
If the faculty do not approve furloughs, the contract will call for layoffs.
• Additional reductions in on-campus spending: this may include reductions in groundskeeping, student services and temporary instructors.
• Enrollment will be reduced by nearly 10 percent, or about 40,000 students, over the next two years.

HIGH SCHOOLS
Dennis Scott, associate superintendent for business at the Kern High School District, said officials have known for months that massive cuts are coming, so preparation has been under way. Here’s the basics:
• State funding cuts for the combined 2008-2009 and 1009-2010 school years stands at about $50 million district wide. Some federal stimulus dollars are expected to provide one-time assistance.
• The KHSD will begin this school year with 190 fewer teachers, counselors and administrators — and 117 fewer classified employees. Student enrollment is expected to remain fairly steady this year.
• If state revenues do not improve significantly — and Scott has little reason to believe they will — he anticipates additional and quite severe cuts in the 2010-2011 school year.
• This is not good for kids,” Scott said. “That’s what I care about.”

Mark Fulmer, assistant superintendent of financial services for the Kern County Superintendent of Schools, said all Kern County educators are anticipating deep and painful cuts from the state, so he doesn’t expect any of Kern’s dozens of school districts to be caught off-guard when more details from the budget deal emerge.
• “I think we are already seeing the impact,” he said. Layoffs, program cuts and class-size increases are the most visible impacts, he said. “Most districts have braced for this.”
• Both Fulmer and Scott said it will be important to watch how the state cuts are distributed — whether they come primarily in revenue limit funding or in categorical programs. The former is the primary state funding process, while the latter is supplemental funding often tied to specific programs.
Both men used the term “shell game” to describe the state’s pattern of education funding that has been anything but straightforward.

ALSO...
Healthy Families
Since July 17, there has been a freeze on new enrollment in Healthy Families, a low-cost health insurance program for children in families that make too much money to qualify for Medi-Cal but too little to afford private coverage, said Jan Hefner, director of the Children's Health Initiative of Kern County.
She said that was estimated to keep 350,000 new children statewide — including 10,500 in Kern County — out of the program a year and save California $80.5 million.
Also under that action, the state was to disenroll 220,000 children statewide — including 6,200 in Kern — starting in March 2010.
It was unclear how the state would implement the additional cuts contained in the new budget plan, Hefner said. It could expand the disenrollment and start it earlier, or roll back eligibility.
It is also looking at reducing administrative costs and the rates paid to providers for some of the savings, she said.

Just had an interesting chat with Sen. Roy Ashburn on the state budget deal and what it means for Kern County. You may need a primer before you read this post.

My favorite part of my chat with Ashburn so far? He doesn't have too much sympathy for Kern County, which may lose a lot of  local government funds, given that it cried about its finances and then "found" $36 million.

"There isn't a lot of credibility over there," Ashburn said.

Ouch!

Ashburn said he's glad to see the budget package includes reforms in the In House Supportive Services program (checking out recipients and caregivers more) and in CalWORKS (getting tougher on people who aren't looking for work and stay on the dole too long).

It's great for Kern, he said, that the oil severance tax died and Williamson Act funding didn't — though it's still cut.

He's waiting to see whether a provision he's been working on to soften the blow to local government made it into the package. That is, extending the lives of redevelopment agencies and letting those agencies borrow against the money that would be generated in those extra years.

As for whether the deal will pass, he's not sure. The package will consist of many different bills and it's unclear how many of those bills will need a 2/3's vote or simple majority vote to pass. So it's unclear whether GOP votes are needed, Ashburn said.

Meanwhile, Assemblyman Danny Gilmore, R-Hanford, said he doesn't know enough about the package to be able to comment. I have calls and e-mails in to Assemblywoman Jean Fuller, R-Bakersfield, and state Sen. Dean Florez, D-Shafter.

— Government team leader Christine Bedell

Kevin McCarthy opened up the pages of The Californian today on the House floor to advocate against taxes and to support small business.

He argues "If Americans aren't working, America isn't working."

Here's Lois Henry's take on his comments.

Last week brought to Sacramento a renewed sense of optimism that the darkest days for our state’s economy may soon be behind us.  The leaders of both houses and parties have continued negotiating in good faith over these last weeks and appear to have reached agreement on a framework that will give us the stability needed in this cash crisis to begin to focus on long-term reforms.

That news could not come soon enough for the thousands who are receiving IOUs in place of checks, the many state workers already furloughed and bracing for the threat of being out of work four days a month, or for the state’s ability to borrow in the future.  I heard pointedly from mayors and city managers in my district how local government services would be impacted if IOUs continued to be issued for a period of months, and the scenario is not one any of this state’s leaders wants to see.

Last Tuesday, as I previously predicted here in The Californian, several top investment rating companies lowered California’s credit rating two full steps to just slightly higher than junk bond status.  As Bloomberg notes, the last time it had sunk so low was when Schwarzenegger followed through on his campaign “pledge” to cut the vehicle license fee, which had been designed to go down only when economic realities allowed for it.

While some additional cuts were needed beyond what the legislature had agreed to in conference committee, it appears we have been able to avoid suspending Proposition 98.  The threat to completely eliminate CalWORKS also appears to have been averted.

I am hopeful we will have the full agreement available shortly to review the details, with a vote by as early as this Thursday. No one can say there will not still be painful and difficult cuts, but folks elected us to make difficult decisions in tough times. As we emerge from this cash crisis, it is time to turn our focus to the reforms we need to secure long-term economic stability for our great state.

Senate Majority Leader Dean Florez, D-Shafter, represents the 16th Senate District and is a candidate for lieutenant governor. His weekly column appears in The Californian on Tuesdays.

Bill Thomas has no business investigating the nation’s financial meltdown as “he’s one of the best friends that big government had in the Republican Congress,” conservative political consultant Jon Fleischman says on his Flash Report blog.

Thomas, Bakersfield’s former congressman and a moderate Republican, was picked by GOP congressional leaders to be vice chairman of the 10-member Financial Crisis Inquiry Commission. The panel will try to root out the causes of the terrible recession and recommend financial reforms to Congress.

“This appointment, frankly, makes a mockery of the entire panel,” Fleischman wrote.

“As the long time Chairman of the House Administration and then House Ways and Means Committee, Thomas was known in the former role for consolidated power away from conservatives in the conference, and in the latter role for empowering the growth of the federal government. The most specific and egregious example of Thomas' quixotic quest to fatten government spending was the pivotal role he played in a massive expansion of medicare benefits in the area of prescription drugs ("Part D"). 

“American taxpayers will be trying to figure out how to pay that off for many years to come. Apparently the other Californian on this panel is Democrat Phil Angelides. What does it mean when I feel more comfortable with Angelides serving on this panel, than with Thomas.”

He even called on Republican congressional leaders to “axe” Thomas’ appointment — though they’re the ones who picked him in the first place.

Conservatives have long been at odds with Thomas politically, some considering him a RINO — Republican In Name Only.

The Wall Street Journal, meanwhile, quoted “some congressional aides” as predicting friction on the commission, in part to Thomas’ “aggressive style.”

I have a call in to Thomas but haven’t heard back.

On Wednesday, Rep. Kevin McCarthy, R-Bakersfield, praised Thomas’ appointment.

“This appointment is a testament to his leadership, no-nonsense approach, experience, and intellect to critically examine problems,” McCarthy said.

— Government team leader Christine Bedell

The financially struggling Bakersfield nonprofit that’s trying to get communities to display the “In God We Trust” motto will hold a fundraiser July 30.

The 5th annual “in God We Trust — America Inc.” event starts at 6 p.m. at the FIrst Assembly of God Performing Arts Center, 4901 California Ave. in Bakersfield.

Single tickets cost $53; half a table of four goes for $500; and various types of tables of eight run from $1,000 to $5,000.

The event program is called “The Greatest Generation” and includes a big band live musical show and a historical presentation. Attendees can RSVP by calling 327-4141.

The group really needs the money, according to its 2008 tax filing.

Contributions to the group dropped from $83,097 in 2006 to $34,575 in 2007 and to $11,145 in 2008. It ended 2008 with $6,776 in assets and $16,896 in liabilities (money owed to officers and directors, who invested in the group to get it going), leaving its net assets or fund balance at -$10,120.

Last year was a particularly tough fundraising year. It collected $11,145, filings show, and spent $14,687. The biggest reported cost was $10,696 in fundraising expenses.

The group’s seen contributions drop largely because of the economy, said its president, Bakersfield City Councilwoman Jacquie Sullivan. It has concentrated on lowering the cost of its annual dinner — while still offering attendees a good time — to help boost finances.

This year’s is being held on the anniversary of the nation adopting the “In God We Trust” motto.

Group organizers are committed to the cause long-term, Sullivan said. So far the group has led 54 California cities to vote to display the motto in their City Hall chambers, she said.

— Government team leader Christine Bedell

The Fresno Bee is reporting that former Assemblywoman Nicole Parra will leave the job Governor Arnold Schwarzenegger  hand-crafted for her at the end of this month.

Check out E.J. Schultz's story here.

Here's state Sen. Dean Florez's latest column on what he's been up to this past week:

While the leaders of the legislature continued to meet and work toward a budget that can garner support on both sides of the aisle, as well as the governor’s signature, Assembly committees moved ahead on trying to meet their constitutional deadlines. 

As our governor took to the airwaves to mock legislation aimed at helping the agriculture community raise much-needed revenues and boost our economy, the Assembly was making progress on a number of bills I authored in protection of public health, from clean air to safe foods and classrooms.

This past Monday, Assembly Natural Resources took up my Senate Bill 382, which aims to further reduce air pollution in our smog-shrouded valley through equity in no-burn rules.  The measure simply states that agricultural operations may not burn waste on days where air quality has been deemed too unhealthy for residents to light a fire in the fireplace. 

The bill, strongly supported by the San Joaquin Valley Air Pollution Control District, passed by a vote of 5-3.

On Tuesday, Assembly Business and Professions passed my Senate Bill 550, a measure designed to give consumers one last line of defense against food-borne illness at their supermarket check-out.

The bill calls for retailers with scanner technology to institute a warning that advises checkers when a scanned item has been recalled, so an item recalled after it has been shelved will not inadvertently be sold and eaten by an unsuspecting customer.

Meanwhile, on Wednesday of last week, Assembly Education approved my Senate Bill 212, which seeks to prevent the spread of communicable diseases in our schools.

The measure provides for the annual cleaning and sterilization of school sites, athletic equipment and locker rooms, which have been linked to a rising number of cases of antibiotic-resistant staph infections in youths.

Assemblyman Danny Gilmore, R-Hanford, is catching heat for his vote against a bill banning ag waste burning when the rest of us aren’t allowed to light up our fireplaces.

Gilmore voted against Senate Bill 382 in committee Monday. The measure still was approved.

The bill’s author, Senate Majority Leader Dean Florez, D-Shafter, whacked him for it, citing the bad air in Gilmore’s district, which includes parts of Bakersfield and western Kern County.

“When you represent a region where one in six children has to carry an inhaler to school, you do whatever is in your power to help those kids breathe easier,” Florez said in a news release.

(It should also be noted Gilmore beat Florez’s mother for the 30th District seat last year and she may run against him next year).

Then the Center on Race, Poverty and the Environment kicked Gilmore around Tuesday. Agriculture is one of the San Joaquin Valley’s largest sources of air pollution, it said.

“We all need to do our share to clean the air, and Gilmore wants to give agricultural air pollution a free pass,” said Daniela Simunovic, a community organizer with the group.

Gilmore said Thursday agriculture is regulated enough and this kind of rule is what’s helping drive businesses out of California.

“We all want clean air and clean water but we have very strict rules for ag burning,” Gilmore said. “Agriculture in the valley is dying. We’re losing jobs left and right” due to such things as water restrictions and economic pressures on dairies.

“In an economy absolutely struggling, I think we should be doing everything we can to keep jobs.”

Florez’s legislation will next be up for consideration by the full Assembly. It has already passed the state Senate.

larger view

A 27-year-old transportation broker from Visalia announced Tuesday he will run as a Republican for the 20th Congressional District seat held by Jim Costa, D-Fresno.

This would be Josh Miller’s first run for public office. He said he wants to get things done for the district, especially in the areas of jobs and water supply.

Costa has “every intention of” running for a third two-year term next year, his spokesman said. The primary is next June, the general election November 2010.

The 20th District includes all of Kings County plus parts of Fresno and Kern counties including Arvin, Delano, McFarland, Shafter, Wasco and sections of Bakersfield.

More on Miller is available on his Web site at www.joshmillerforcongress.com.

A bill by Senate Majority Leader Dean Florez, D-Shafter, to ban ag burning on days the air is deemed too dirty for folks to light a fireplace fire passed out of the Assembly Committee on Natural Resources Monday, according to Florez.

Senate Bill 382 will next be up for consideration by the full Assembly. It has already passed the state Senate.

The San Joaquin Valley Air Pollution Control District prohibits lighting fireplace fires on days where air quality has been deemed unhealthy.

In the past, ag has been allowed to continue open-field burning of agricultural waste until pollution has reached higher thresholds.

Florez introduced the bill after The Californian reported farmers were allowed to burn agricultural waste — in some cases hundreds of acres of it — on days when fireplace burning was prohibited.

Also after the story, the air district eliminated the double standard.
 

Dean Florez has topped the $1.25 million-in-contributions mark in his bid for lieutenant governor, the state senator from Shafter announced Monday.

No other Democrat mentioned as a potential candidate in the June 2010 primary has “raised any significant amount of money for the race” based on donations of at least $5,000 that must be reported within 24 hours, Florez said.

Florez, the senate majority leader, thanked donors who “stormed the internet” in the last few hours before the June 30 reporting cut-off date with $30 donations.

The official campaign-finance reports detailing money raised and spent as of June 30 are due July 31. Florez released his numbers early, as have numerous gubernatorial candidates.

Florez said he had nearly $900,000 cash on hand at the end of June.

Kern County Supervisor Michael Rubio has taken his quest for the 16th District State Senate seat to the Web.

This past weekend he achieved a June campain goal by passing the more than 1,000 supporter mark on the Facebook social networking site before the month expired on Tuesday.

By Thursday afternoon he had 1,118 supporters, including local business, media, non-profit and government luminaries as well as bigger fish from out of town.

State Senate President Pro Tem Darrell Steinberg is a fan.

According to an e-mail alert sent out this week Rubio has also topped another, more traditional, campaign goal.

He's collected over $400,000 to back up his campaign for the top spot on next year's ballot.

No formal challenger, Republican or Democrat, has materialized to challenge Rubio for the seat at this time.

Rubio's campaign looks like its aimed at keeping it that way.

OMG, no wonder we don't have a budget deal. Look at what's going on in Sacto, courtesy this press release from Dean Florez's office:
 
SACRAMENTO -- Senate Majority Leader Dean Florez, D-Shafter, called on Governor Arnold Schwarzenegger to “stop tweeting his obsession with cow tails and start tweaking the Budget to move us toward a solution.”
 
While Florez has been meeting with Senate leadership to negotiate a Budget that would allow the state to avoid issuing costly IOUs, Schwarzenegger has been repeatedly posting on Twitter to mock legislation aimed at ending animal cruelty -- which California voters identified as a high priority with their overwhelming support of Proposition 2.
 
The Governor even sent a camera crew to videotape the Assembly Agriculture Committee hearing at which Florez’s legislation to end the crude amputation of cows’ tails was presented by Assemblymember Fiona Ma, D-San Francisco, who was already set to be present as a member of the committee. 
 
Senate policy committees for Wednesday were cancelled.
 
Florez derided the use of staff for the taping and subsequent YouTube posting as a clear waste of the state’s resources.
 
“I do not understand why the Governor would spend his time and the state’s resources mocking the prevention of animal cruelty.  For my part, I am proud to have introduced the bill, thankful that it passed, and continuing to focus on my work to help prevent the state from going to IOUs.  I can’t imagine the Governor doesn’t have better things to do with his time as well during this crisis,” Florez said. 
 
“We are still waiting for the Governor to sit down at the table with the State Senate and lay out what it will take to get him to support a Budget that does not hurt the most vulnerable citizens of this state.”
 
Below are the Twitter posts, which include a link to the YouTube video:
 
• Let me know what you think about this video: http://bit.ly/WbODz

• Instead of working on budget, the Legislature is about to debate whether cows can keep their tails while we're in a fiscal crisis http://twitter.com/Schwarze...

• From TwitterBerry http://orangatame.com/produ...