Lt. Gov. Newsom opens fire on Cal Grant cuts

Lt. Gov. Gavin Newsom is taking aim at the governor’s proposed cuts to higher education, calling on lawmakers to reject them as unfair and shortsighted.

Newsom, who has consistently staked out political territory to the left of Gov. Jerry Brown, said in a letter Wednesday that reducing financial aid by $308.4 million would place the “burden of our fiscal problems on the very students who will help lead California out of this morass.”

In particular, Newsom criticized the proposal to raise the minimum grade-point average needed to receive a Cal Grant. Brown’s administration says an estimated 26,600 students wouldn’t make the cut, saving $131 million and focusing “limited financial aid resources on those students who are most likely to complete their degrees.”

Newsom said that will only further handicap disadvantaged students.

“If we keep cutting higher education funding and increasing the cost of getting a degree, that student is guaranteed not to complete a degree because we have priced them out of public education and told them they are not worth our support,” he wrote.

The Legislative Analyst's Office, in a report released Wednesday, also said Brown's proposal is too drastic.

The lieutenant governor has praised Brown’s efforts to tackle the state’s financial problems but has criticized his decisions on a few occasions, most recently in a radio interview with KQED last week.

Newsom said he discussed proposed cuts in Cal Grants with Brown’s administration. Asked what he would cut from the budget instead, Newsom said he replied, “You give me your finance team, give me the controller, give me your department heads, and give me 48 hours, I’ll come up with them.”

Earlier in the interview, Newsom said he was opposed to cuts to childcare programs, which would lose $446.9 million under Brown’s proposal.

“It’s very disappointing,” he said. “What’s equally disappointing, perhaps more so, is that we have a Democratic governor proposing to cut welfare support."

In a television interview the next day on KGO-TV, Newsom pointed out how former Gov. Arnold Schwarzenegger and Assembly Speaker John A. Pérez pumped more money into higher education despite the deficit in 2007.

"They added $750 million to the budget deficit," he said, adding: "If you value something, invest in it."

Gil Duran, a spokesman for Brown, said Newsom was advocating the wrong approach.

"Bigger deficits are not the answer,” Duran said. “That kind of thinking is what got us into this mess.”

H.D. Palmer, spokesman for Brown's Department of Finance, pointed out the governor wants to increase overall high education spending by 4% a year for three years.

Photo: Gavin Newsom campaigning for lieutenant governor in 2010 in East Los Angeles. Credit: Don Bartletti / Los Angeles Times

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-- Chris Megerian in Sacramento

Twitter: @chrismegerian

 

Obama administration reaffirms support for California high-speed rail

Despite a series of a cautionary reports by outside agencies and groups, the Obama administration is reaffirming its commitment to California's $98.5-billion bullet train project.

U.S. Transportation Secretary Ray LaHood traveled the state this week and met privately with Gov. Jerry Brown Thursday to discuss the embattled project, issuing a statement of support through the governor's office.

“Over the past week, I have traveled all over the Golden State and have found a strong base of support for the California High-Speed Rail project, from workers who will build it, manufacturers that will supply the trains to run on it and businesses that will benefit from using it,” LaHood said. “The Obama Administration is committed to High-Speed Rail because it is good for the economy and the nation. I look forward to working with Governor Brown to make this project as successful as possible.”

For the White House, California appears to be the lone subscriber to the president's vision for high-speed rail. Facing budget deficits and sluggish growth, Ohio, Florida and Wisconsin have all scrapped their proposals.

Brown has vowed to push forward despite mounting criticism and a growing crisis of confidence and credibility in the project.

The bullet train's initial $33-billion price tag has tripled since 2008, when voters approved bonds for what is planned to be an 800-mile network. While the California High-Speed Rail Authority has secured $12.5 billion for the first Los Angeles to San Francisco leg, the state auditor last month warned that the project has become "increasingly risky."

"The success or failure of the program" depends on obtaining up to $105 billion in additional funding, which has not been identified, the auditor said.

Nevertheless, Brown, organized labor, many members of the Legislature and business groups are pushing to start construction in the Central Valley later this year. They argue that the bullet train represents a bold vision of progress for the state and will create jobs, accommodate future growth and help the environment.

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-- Michael J. Mishak in Sacramento

Twitter.com/mjmishak

Photo: Transportation Secretary Ray LaHood in March 2010. LaHood issued a statement supporting California's bullet train project. Credit: Joshua Roberts / Bloomberg

Animal advocates blast Gov. Brown for ‘putting pets on death row’

Sure, Gov. Jerry Brown has slashed funding for social welfare programs and public universities by billions, but now, some say he’s gone too far -- he's targeting pets.

Brown has proposed repealing the Hayden Law, named after former Democratic state Sen. Tom Hayden, which gives animals more time in shelters before they are euthanized.

Brown said shortening the time that sherlters must hold strays from six days to three would save the state about $46 million per year.

Hayden criticized Brown -- who with his wife, Anne, owns a Pembroke Welsh Corgi named Sutter -- for suggesting the repeal. In an online video, he urged Brown to to "look at your dog before you allow this bill that protects animals to die."

GOP-led drive for California pension initiative dead for this year

  The Republican-led group California Pension Reform said Wednesday it is ending its campaign to put an overhaul of public retirement systems on the 2012 ballot.

The decision was made "after determining that the Attorney General's false and misleading title and summary makes it nearly impossible to pass," Dan Pellissier, the group's president, said in a statement.

The group, which includes former state GOP Chairman Duf Sundheim, proposed an initiative that would have gone beyond what Gov. Jerry Brown has proposed to reduce pension costs, affecting pension benefits for current workers as well as future hires and placing caps on how much an employer can pay toward a worker’s retirement.

Pellissier said his group would lobby elected officials to adopt pension changes this year and, if that fails, would focus on putting an initiative on the 2014 ballot.

California Gov. Jerry Brown denies parole for 71 murderers

California Gov. Jerry Brown pardoned 21 people in his first year in office and rejected parole for 71 first- and second-degree murderers who had been recommended for release by the parole board.

Brown did allow for the early release of just one person, Tung Nguyen of Garden Grove, who was convicted of first-degree murder for his role in a motel-room killing in a dispute over money. Nguyen served as a lookout and did not know that his friend had stabbed the victim in the leg, according to a report from Brown's office. The stab wound punctured the victim’s femoral artery, and he bled to death.

Nguyen was just 16  at the time.

On Nov. 3, 2010, the Board of Parole recommended Nguyen be offered parole because of his remorse, rehabilitation and “stable social history.”

Unlike the 71 other such recommendations rejected by Brown, the governor approved Nguyen’s parole, based in part on his role in helping 50 civilians to safety who were on the prison yard during a 2006 inmate riot.

“In this unique case,” Brown wrote, “I believe Mr. Nguyen’s exceptional rehabilitation dictates that he should receive an immediate release on parole.”

Of the 21 pardons granted by Brown, most were for drug offenses and all for convicted felons who had completed their sentences. Brown spokesman Evan Westrup said all of those granted pardons had received court-issued certificates of rehabilitation indicating they had been in recovery for at least 10 years.

Brown submitted the comprehensive list of pardons and parole decisions to the Legislature in an annual report required by law. You can read the reports here.

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-- Anthony York in Sacramento

Photo: Gov. Jerry Brown. Credit: Mark Boster/Los Angeles Times

Gov. Jerry Brown signs measure to boost state's cash flow

Gov. Jerry Brown signed a bill Friday expanding the state's ability to borrow from dedicated funds to cover day-to-day expenses. The bill is expected to make $865 million available to help keep California from falling into the red in early March.

The state controller warned Tuesday that the state needs to find $3.3 billion to pay its bills and keep a comfortable cash reserve. Administration officials plan to cover the rest of the gap by borrowing money from state universities and delaying reimbursements for doctors providing healthcare through a state program.

The bill passed 54 to 17 in the Assembly and 24 to 14 in the state Senate on Thursday, and some Republicans spoke out against it.

"We’re going to rob from Peter to pay Paul," said Sen. Joel Anderson (R-San Diego). "To me, this just kicks the can further down the road."

California government includes hundreds of special funds set aside for specific purposes, like transportation or scientific research. The state can tap these accounts for short-term loans to help plug gaps in its budget, and the bill signed Friday increases the total amount available to roughly $21 billion.

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-- Chris Megerian in Sacramento

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Photo: Gov. Jerry Brown introducing his budget proposal for the 2012-13 fiscal year on Jan. 5. Credit: Rich Pedroncelli / Associated Press

California needs to find $3 billion by March

Lawmakers want to tap special funds to prevent shortfall

Lawmakers voted Thursday to increase the state's ability to borrow from dedicated funds to cover day-to-day expenses, part of a strategy to keep California from falling into the red.

If Gov. Jerry Brown signs the bill, it is expected to free up $856 million from transportation-related funds. The state can already borrow from roughly $20 billion worth of dedicated funds, according to Brown's Department of Finance.

“We’re pleased the Legislature moved on this bill and we look forward to acting on it in the days ahead,” said Evan Westrup, a spokesman for Brown.

Lawmakers hope the bill will help plug a gap in the current budget year, although some Republicans spoke out against it.

"We’re going to rob from Peter to pay Paul," said Sen. Joel Anderson (R-San Diego). "To me, this just kicks the can further down the road."

The bill passed 54 to 17 in the Assembly and 24 to 14 in the state Senate.

State Controller John Chiang said in a letter Tuesday that California is burning through its cash reserves more quickly than expected and could be in the red by early March if the state doesn't increase its borrowing or delay payments.

Top Democrats and Brown's administration said the situation is not dire, and laid out a series of steps to shift money within the budget, borrow from state universities and delay medical reimbursements to make ends meet.

-- Chris Megerian in Sacramento

Twitter: @chrismegerian

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Jerry Brown's tax initiative rivals not backing down

Despite warnings from Gov. Jerry Brown that too many tax initiatives on the November ballot could cause voters to reject all of them -- including his own -- proponents of two efforts to raise revenue from California's taxpayers are not backing down.

There are a plethora of possible tax-related measures steaming toward the ballot, but the two that have grabbed the most attention in Sacramento are an income tax hike by wealthy Los Angeles attorney Molly Munger and a millionaire's tax sponsored by the California Federation of Teachers.

Both measures, like Brown's proposed combination of a temporary half-cent sales tax hike and higher levies on wealthy filers, would be used to fund education.

They are all only in their preliminary stages, gathering signatures to qualify for the ballot. That takes money.

In reports filed Tuesday, it was clear that the tax hikes' main backers aren't backing down. Munger has donated a total of $800,000 of her own money toward her initiative committee. And the teachers federation on Jan. 27 gave $500,000 to the millionaire's tax committee, Educators and Working Families To Restore California.

The California Federation of Teachers' donation came just before the state's largest teacher's union, the California Teachers Assn., endorsed Brown's initiative this weekend. It is expected to become a major backer of the governor's effort.

Munger and the teachers federation seemed to be the only significant donors to their respective causes so far. Brown has been raising money since December to fund his drive.

He reported raising nearly $2 million from a variety of traditional Sacramento power players, from Native American tribes to unions to Occidental Petroleum.

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-Nicholas Riccardi

Photo: Gov. Jerry Brown at a Sacramento news conference last year. Photo Credit: Rich Pedroncelli/Associated Press

Gov. Jerry Brown: Bullet train will keep U.S. out of Third World

 

 

Gov. Jerry Brown is on a mission to prevent the United States from becoming a Third World country, and he says the solution is a high-speed railroad in California.

"We're not going to be a Third World country if I have anything to do with it," Brown said in a Friday morning interview on KCBS-AM in San Francisco. Fourteen countries already have high-speed rail, but the United States does not.

California's high-speed rail plan has come under increasing scrutiny as cost estimates rise, and the state auditor warned Tuesday that financing is "increasingly risky." Although $12.5 billion has been secured for a rail line stretching from Los Angeles to San Francisco, the auditor said the entire project could end up costing $117.6 billion, up from an earlier estimate of $98.5 billion.

During the interview, Brown fired back at critics, saying the rail line will be cheaper than roads and airports in the long run.

"This thing is going to be a lot less than some of the critics have said," he said, adding that "this will transform Central California."

Brown has made his mark as a penny-pincher, slashing the state budget in order to downsize California’s looming deficit. But he's also sought to dream big, and the high-speed rail project is Exhibit A.

During his State of the State speech earlier this month, Brown likened the project to epic undertakings such as the Panama Canal, and he repeated such comparisons on Friday morning.

"Just like Lincoln can built the transcontinental railroad during the Civil War ... you've got to think big," he said.

Photo: An artist's rendering of a proposed California high-speed rail station. Credit: California High-Speed Rail Authority

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-- Chris Megerian in Sacramento
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Jerry Brown talks taxes, pensions at L.A. Chamber of Commerce

Gov. Jerry Brown on Thursday urged 1,500 Los Angeles political and business leaders to back his proposal for higher taxes and implored them to pressure lawmakers in Sacramento to overhaul the state's pension system this year.

"This is a call to action" Brown told the Los Angeles Area Chamber of Commerce. "We can't sit around and wait."

Just like his recent trips to Irvine and San Diego, Brown's Chamber of Commerce visit was aimed at building business support for his initiative to raise levies on sales and upper incomes for the next five years.

Last week's swing included visits to the Orange County Business Council and San Diego City Club, where Brown also implored business leaders to get behind his initiative. As he reaches out, the governor is tailoring his sales pitch with business-friendly talking points, including a reprise of his call to overhaul the state’s pension system.

Brown is currently gathering signatures to place his tax proposal on the ballot. But he opted not to seek an initiative to change public retirement system this year, choosing instead to let the Democratically controlled Legislature take the lead.

Democrats have been skeptical of some key pieces of Brown’s proposal, including his call to raise the retirement age for new public employees and creating a new pension system that mixes 401 (k)-style plans with the state’s existing defined-benefit plan. 

As he shifts into campaign mode for his tax initiative, the governor is increasing his public profile. Thursday’s speech marked Brown’s second Southland swing in the last week. Earlier in the day, Brown gave an interview to KPCC radio; and a talk with NBC's Tom Brokaw, recorded earlier this week, also aired Thursday.

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--Rosanna Xia in Los Angeles and Anthony York in Sacramento

Photo: Gov. Jerry Brown. Credit: Rich Pendroncelli/Associated Press