Prop. 13

#TBT: That time we called for California’s break-up

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So another scheme — in a long and rich history of such schemes — is attempting to break California into more digestible parts, and gaining national attention. Venture capitalist Tim Draper’s Six Californias is all but on the ballot, attempting to rechristen the Bay Area as Silicon Valley. Good luck with that! (Although we have to say, it might create the first openly weed-driven state economy — Northern California — which would be fun to see.)

In 2009, we, too, put forth a proposal to split California up — building on an idea from conservative Central California, and echoed in Daily Kos. It was a doozy, but a logical one, with some actual Six Californias affinity.

Our May 27 cover story, written by Rebecca Bowe and Tim Redmond, proposed to split Cali up for better management, representation, and economic/social justice, creating the playfully named states of Greenland, Sierrastan, Pinkostan, Coastland, Palm Sprawl, North Mexico, and Disney. (The accompanying cover, designed by Ben Hopfer and shown above, aped the New Yorker’s famous “New Yorkistan” cover.)  

The cover story itself grew from a Politics Blog post Tim Redmond had written in March of 2009, asking “Should California be split up?” — read the post below. As for creating states, we’ll be dreaming of Puerto Rico …

SHOULD CALIFORNIA BE SPLIT UP?

By Tim Redmond

It’s an interesting question. Nothing new, really — folks up in the northern part of the state have been talking about secession since the 1940s.

But these days, the talk has shifted from North-South to Central Valley-Coast.

There’s plenty of discussion going on — the New York Times
reports on a move by farmers in Visalia, who say those of us in the more liberal western regions don’t understand what it’s like in the center of the state:

Frustrated by what they call uninformed urban voters dictating faulty farm policy, Mr. Rogers and the other members of the movement have proposed splitting off 13 counties on the state’s coast, leaving the remaining 45, mostly inland, counties as the “real” California.

The reason, they say, is that people in those coastal counties, which include San Francisco and Los Angeles, simply do not understand what life is like in areas where the sea breezes do not reach.
“They think fish are more important than people, that pigs are treated mean and chickens should run loose,” said Mr. Rogers, who said he hitched a ride in 1940 to Visalia from Oklahoma to escape the Dust Bowl, with his wife and baby son in tow. “City people just don’t know what it takes to get food on their table.”

A former Assembly member is pushing a vertical split, too :

“Citizens of our once Golden State are frustrated and desperately concerned about the imposition of burdensome regulations, taxation, fees, fees and more fees, and bureaucratic intrusion into our daily lives and businesses,” declares downsizeca.org, the movement’s website.

And all of this comes as reformers form both the left and the right are talking about a new Constitutional Convention.

Athough some of the proponents are clearly nutty, the idea isn’t. As the noted political economist Gar Alperovitz wrote two years ago

The United States is almost certainly too big to be a meaningful democracy. What does “participatory democracy” mean in a continent? Sooner or later, a profound, probably regional, decentralization of the federal system may be all but inevitable.

He was talking about California becoming its own nation, but I’d argue that the same problem applies here. The budget crisis, the gridlock in Sacramento … all of it suggests that maybe California itself is too big to govern. There’s also clear evidence of dramatic regional differences. If you take the Central Valley from about Redding on down, and wrap in Orange County, you have a red state within a blue state where most of the residents say they want lower taxes and smaller government. Along the coast from about Sonoma County down to the southern part of Los Angeles County, you have people who generally would like to see taxes pay for public services. If the coast were a state, we could repeal Prop. 13 and build world-class schools. We’d have same-sex marriage and single-payer health insurance. And we’d still be one of the biggest states in America.

Now, I’m not sure the people in the central valley quite realize the problem with their plans, which is illustrated in this wonderful chart that comes from the office of Assemblywoman Noreen Evans of Santa Rosa (PDF).

The chart shows that the people who dislike and distrust government and don’t want to pay taxes are in fact the beneficiaries of the tax dollars that the rest of us pay. In California, tax money from the coast winds up paying for services in the central valley.

But that’s okay — if they don’t want our money any more, maybe we should tell them we’re fine with that. Maybe we should split the state not just in two but into three: Let the northern counties become the state of Jefferson, where pot will be legal and the residents will be so wealthy from taxes and exports of that cash crop that they’ll make oil-richAlaskans seem like paupers. Pot will be legal in the coastal communities, too, and will generate tax revenue.

We’ll have a Democratic governor, and overwhelmingly Democratic legislature, fewer prisons, better schools, cleaner air, no Ellis Act, rent controls on vacant apartments, more money for transit, strict gun control, support for immigrant rights … and no more of these ugly battles over budgets held hostage by right-wing Republicans.

And in the central valley, they can have their low taxes and conservative values, and watch their roads, schools, and public services go to hell. Maybe eventually they’ll figure it out.

Of course, we’d have to figure out the water rights. The folks in Jefferson would have control over much of the water that now goes South, and there would have to be some long-term water contracts between the states, but that shouldn’t be an insurmountable roadblock.

And the solution would create its own problems; The GOP would control the central state, and would move to abolish the Agricultural Labor Relations Act and make life even more miserable for farmworkers. But then, maybe Jefferson would turn off the water and big agribusiness would be SOL anyway.

As part of the break-up, all parties would have to agree to create a special relocation fund to help lonely, sad liberals from Modesto come west and to help lonely, sad Republicans in San Francisco to move east. I wonder which way the net migration would go.

Meanwhile, Evans has introduced my favorite tax bill of the year, AB 1342, and it’s related to this entire discussion. She wants to allow counties to levy their own income taxes and vehicle license fees. “We went through this difficult process of trying to arrive at a budget,” her spokesperson, Anthony Matthews, told me. “For those communities that have a different view of government [than the Republicans], this bill would let them raise their own taxes to fund their priorities.”

 

Chiu mailer highlights Guardian praise, despite our Campos endorsement

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Politics is dirty business, and I should never underestimate the willingness of politicians to turn any editorial praise they receive into an electoral advantage, distorting the context as needed, a lesson that I was reminded of this week.

Several Guardian readers have called me this week to complain about a mailer dropped on voters by the David Chiu for Assembly campaign, which includes long quotes from Chiu’s endorsements by the San Francisco Chronicle and Bay Area Reporter, as well as positive quotes from the Bay Guardian and San Francisco Examiner.

Although neither the Guardian nor the Examiner has endorsed Chiu — we enthusiastically endorsed David Campos in that race, while the Examiner is waiting until the fall rematch to do endorsements — our readers said the flyer left the impression that we had.

Chiu campaign spokesperson Nicole Derse disputes that view. “It definitely did not leave that impression,” she told me. “We were very clear about who has endorsed.” She said the Examiner and Guardian were included because “it’s important to highlight objective sources like newspapers.”

The Guardian quote was from a July 23, 2013 blog post in which I indeed wrote, “It is Chiu and his bustling office of top aides that have done most of the heavy legislation lifting this year, finding compromise solutions to some of the most vexing issues facing the city.”

It was certainly true at the time, although I received a lot criticism for what I wrote from the progressive community, which pointed out how Chiu had maneuvered himself into the swing vote position on key issues such as condo conversions and CEQA reform. And the compromises Chiu forged actually allowed fiscal conservatives to erode San Francisco’s standing as a progessive city while burgeoning his own political resume.

So I ran another blog post to air those concerns, and then we ran a hybrid of the two in the next week’s paper that closes with this line, “In the end, Chiu can be seen as an effective legislator, a centrist compromiser, or both. Perspective is everything in politics.” BTW, in that original post, I also noted that the Airbnb legislation Chiu was working on should challenge his political skills and reputation, and indeed it took many more months to introduce and has been met by a storm of criticism, becoming the marquee political fight of the summer at City Hall.

After that first post, I also heard from Campos and his supporters predicting that the Chiu campaign would use my well-meaning praise to convey support from the Guardian in a misleading way, a prophecy that has now proven prescient.

But I also think that Campos has done a good job at undermining Chiu’s greatest strength in this election, that of being an effective legislator, by hammering on the reality that things have gotten worse for the average San Francisco because Chiu and his allies have been most effective on behalf of the tech companies, landlords, and other rich and powerful interests that are undermining the city’s diversity, affordability, and progressive values.

“Effective for whom? That’s what’s important,” Campos told us during his endorsement interview, noting that, “Most people in San Francisco have been left behind and out of that prosperity.”

Chiu’s campaign counters by overtly and in whisper campaigns saying that progressives can’t be effective in Sacramento, blatantly overlooking the fact that the incumbent he’s running to replace, Tom Ammiano, has been both a consistent, trustworthy progressive, and an effective legislator who has gotten more bills signed than most of his colleagues, even as he takes on tough issues like reforms to Prop. 13 and prison conditions.

And Ammiano hasn’t just said good things about David Campos, his chosen successor — Ammiano has actually endorsed Campos. 

Guardian Intelligence: May 21 – 27, 2014

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P>Because nothing screams “invest in healthcare” like an aging Sammy Hagar: The former Van Halen rocker teamed up with Metallica’s James Hetfield, Green Day’s Billie Joe Armstrong, Train’s Pat Monahan, Nancy Wilson of Heart, and other rock ‘n roll veterans for a special one-time acoustic show at The Fillmore May 15, benefiting the Pediatric Cancer program at UCSF Benioff Children’s Hospital — what organizers were calling the first annual “Acoustic-4-A-Cure” show. That’s a lot of oversized egos for one stage, but hey, we can’t knock rockin’ for a good cause.

 

HAIL THE TRAIL

Celebrate the 25th anniversary of the San Francisco Bay Trail — still a work in progress, with 60 percent of the “ring around the Bay” having been completed — Sat/24, at a re-dedication of the Rosie the Riveter World War II National Historic Park visitor center in Richmond. The center houses exhibits dedicated to civilian efforts on the home front during World War II, embodied by the iconic female factory worker. The festive ceremony will be a vintage-themed affair, complete with WWII-era big band jazz, swing dancing, and a costume contest. And in a nod to our current century, the event will also unveil the first Bay Trail smartphone app. Let the summer hiking season begin! www.baytrail.org

 

PROP. 13 PRESSURE

Public policy group Evolve California sent out a survey to California candidates for public office, and discovered that a full 80 percent support reforming Prop. 13. The nearly four-decades-old law bases property taxes on purchase price, not current market value, and is often blamed for lost revenues that could go toward, say, rescuing California’s public education system from the dregs. The vast majority of hopefuls running for federal, state, and local office said they’d support reassessing commercial properties at market value, as long as small businesses, homeowners, and renters remain protected.

 

GUTS OF THE CITY

A daylong conference Sat/31 will expose curious participants to some of the lesser-known aspects of city life: The design and planning of public transit, water systems, wireless networks, and other kinds of urban infrastructure. MacroCity, to be held at the Brava Theater on 24th Street in the Mission, will feature talks on everything from San Francisco’s modern military ruins, to the city’s transportation history, to water systems feeding San Francisco. Visit themacrocity.com for more.

 

BISON: “YAWN”

One Bay to Breakers participant apparently heard the call of the wild, as the poncho-clad man was caught on video jumping into the Golden Gate Park bison paddock. Two officers arrested him in short order, and the SFPD Richmond station tweeted afterwards, “The bison seemed unimpressed.”

 

PORN DISCRIMINATION

San Francisco based porn star Eden Alexander was rushed to an emergency room after a near-fatal reaction to a common prescription drug. But when she tried using crowd-funding site Giveforward to cover the cost of her treatment, she was told by its payment operators, WePay, that her fundraiser would be cancelled because its terms state “you will not accept payments … in connection with pornographic items.” Alexander only sought funding for her medical costs.

 

MISSION: RUMBA

Dust off your feather headdress — it’s time yet again for Carnaval (Fri/23-Sun/25) when Harrison between 16th and 24th streets becomes one giant celebration of the music, dance, food, and art of Latin America. This year’s theme is “La Rumba de la Copa Mundial,” or a Celebration of the World Cup, which starts June 12 in Brazil. Sure, there’ll be plenty of drunken revelry, but this is also a great showcase of the deep-rooted Latino arts scene that’s holding on here, determinedly, even as the Mission changes: Look for the Arte Expo, featuring works from the Mexican Museum, Mission Cultural Center, Galleria de la Raza, Accion Latina, BRAVA, and Precita Eyes. The parade’s on Sun/25; see www.carnavalsanfrancisco.org to plan your route.

 

WANGIN’ IT

Insanely talented Chinese pianist Yuja Wang drops in on our SF Symphony once a year to tickle the ivories and steal a few hearts. Seriously: Her annual appearance here has become an event as eagerly anticipated as the return of the swallows to Capistrano or a sweet, light beating at the Folsom Street Fair. This time around (Thu/22-Sun/25, www.sfsymphony.org) she’ll be taking on Prokofiev’s magical, romping Piano Concerto No. 1 and Litolff’s whirling scherzo from Concerto Symphonique — a double treat for music lovers.

 

MEAT US SOON

We had doubts about 4505 Meats moving into the old Brother-in-Law BBQ #2 space on Divisadero — that hood moved upscale long ago, but a fancy BBQ in that particular space had the potential to be more sacrilegious than celebratory. Well, at least one local outlet is smitten: SFist has been drooling over 4505’s $18 “Big Mac” — “two beef patties lovingly caressing a block of fried macaroni and cheese” — and “famed bacon-studded hot dogs wrapped in macaroni and cheese and then deep fried.” We’ll let you know how all that goes down, once we can afford it!

Ammiano’s Prop. 13 reform bill moves forward with unlikely business community support

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Assemblymember Tom Ammiano’s (D-SF) legislation to close a state loophole that has allowed big corporations and other commercial property owners to avoid paying higher property taxes that normally come when land is sold is moving toward becoming law after yesterday getting some unlikely support from the business community.

Assembly Bill 2372 would overturn state laws passed in the wake of Proposition 13, the landmark 1978 measure capping annual property tax increases until a property is sold, that define an ownership change as occurring only when a single purchaser buy more than 50 percent interest, a threshold easily avoided by creating shell corporation and LLCs.

“It costs the local jurisdictions a lot of money that could be going to potholes, teacher, or whatever,” Ammiano Press Secretary Carlos Alcala told the Guardian. “When I buy a house, I have to pay the increased property taxes, and when you buy a commercial building you should have to pay that increased tax.”

AB 2372 changes the threshold to allow reassessment if an owner sells 90 percent of his/her/its interest in a property, not matter how many ways the new controlling interest is sliced up. The California Chamber of Commerce and the usual business groups had opposed the measure, but they withdrew that opposition yesterday as the bill cleared the Assembly Revenue and Taxation Committee, thanks to some minor amendments and political finessing by committee Chair Raul Bocanegra (D-San Fernando Valley), who has pledged to sign on a co-sponsor.

“Now we have a bill that does exactly what I wanted, and yet it has the support of the business community,” Ammiano said in a prepared statement. “I’m grateful to Assemblymember. Bocanegra for helping with amendments that would remove opposition and make it clear that we are not targeting the average property owner. The average Californian is who we are trying to protect.”

“Homeowners are consistently reassessed but other properties aren’t,” Assemblymember Phil Ting (D-SF) — a committee member and former San Francisco Assessor — also said.

A spokesperson for the California Chamber of Commerce — a powerful conservative lobby and fierce defender of maintain Prop. 13 protections for commercial property — confirmed for the Guardian that it has changed its position on the bill, citing the amendments.

The conservative California Business Properties Association and the California Tax Reform Association also followed the Chamber in deciding to support the bill yesterday, according to Ammiano’s office, and even the Howard Jarvis Taxpayers Association — named for the author of Prop. 13 — has dropped its opposition to the measure. A statement by Ammiano’s office said sudden about-face “led one Republican committee member to refer to hell freezing over and pigs flying.”

But sources close to the action also say it was the work of Bocanegra — whose committee is crucial to legislation involving business interests — and a recent Field Poll showing 69 percent of Californians support closing this loophole and just 17 percent are opposed that may have made the difference.

At the hearing, Bocanegra thanked Ammiano for tackling “something that’s vexed us policywise in the state for a very, very long time.”

Guardian endorsements

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OUR CLEAN SLATE VOTERS GUIDE TO TAKE TO THE POLLS IS HERE.

 

Editor’s Note: Election endorsements have been a long and proud part of the Guardian’s 48-year history of covering politics in San Francisco, the greater Bay Area, and at the state level. In low-turnout elections like the one we’re expecting in June, your vote counts more than usual, and we hope our endorsements and explanations help you make the best decisions.

 

GOVERNOR: JERRY BROWN

There is much for progressives to criticize in Jerry Brown’s latest stint as governor of California. He has stubbornly resisted complying with federal court orders to substantially reduce the state’s prison population, as well as shielding the system from needed journalistic scrutiny and reforms of solitary confinement policies that amount to torture. Brown has also refused to ban or limit fracking in California, despite the danger it poses to groundwater and climate change, irritating environmentalists and fellow Democrats. Even Brown’s great accomplishment of winning passage for the Prop. 30 tax package, which eased the state back from financial collapse, sunsets too early and shouldn’t have included a regressive sales tax increase. Much more needs to be done to address growing wealth disparities and restore economic and educational opportunity for all Californians.

For these reasons and others, it’s tempting to endorse one of Brown’s progressive challenges: Green Party candidate Luis Rodriguez or Peace and Freedom Party candidate Cindy Sheehan (see “Left out,” April 23). We were particularly impressed by Rodriguez, an inspiring leader who is seeking to bring more Latinos and other marginalized constituencies into the progressive fold, a goal we share and want to support however we can.

But on balance, we decided to give Brown our endorsement in recognition of his role in quickly turning around this troubled state after the disastrous administration of Arnold Schwarzenegger — and in the hope that his strong leadership will lead to even greater improvement over his next term. While we don’t agree with all of his stands, we admire the courage, independence, and vision that Brown brings to this important office. Whether he is supporting the California High-Speed Rail Project against various attacks, calling for state residents to live in greater harmony with the natural world during the current drought, or refusing to shrink from the challenges posed by global warming, Jerry Brown is the leader that California needs at this critical time.

 

LIEUTENANT GOVERNOR: GAVIN NEWSOM

Gavin Newsom was mayor of San Francisco before he ascended to the position of Lieutenant Governor, and we at the Bay Guardian had a strained relationship with his administration, to put it mildly. We disagreed with his fiscally conservative policies and tendency to align himself with corporate power brokers over neighborhood coalitions. As lieutenant governor, Newsom is tasked with little — besides stepping into the role of governor, should he be called upon to do so — but has nevertheless made some worthwhile contributions.

Consider his stance on drug policy reform: “Once and for all, it’s time we realize that the war on drugs is nothing more than a war on communities of color and on the poor,” he recently told a crowd at the Democratic Party convention in Los Angeles. “It is fundamentally time for drug policies that recognize and respect the full dignity of human beings. We can’t wait.” In his capacity as a member of the UC Board of Regents, Newsom recently voted against a higher executive compensation package for a top-level administrator, breaking from the pack to align with financially pinched university students. In Sacramento, Newsom seems to come off as more “San Francisco” than in his mayoral days, and we’re endorsing him against a weak field of challengers.

 

SECRETARY OF STATE: DEREK CRESSMAN

Although the latest Field Poll shows that he has only single-digit support and is unlikely to make the November runoff, we’re endorsing Derek Cressman for Secretary of State. As a longtime advocate for removing the corrupting influence of money from politics through his work with Common Cause, Cressman has identified campaign finance reform as the important first step toward making the political system more responsive to people’s needs. As Secretary of State, Cressman would be in a position to ensure greater transparency in our political system.

We also like Alex Padilla, a liberal Democrat who has been an effective member of the California Senate. We’ll be happy to endorse Padilla in November if he ends up in a runoff with Republican Pete Peterson, as the current polling seems to indicate is likely. But for now, we’re endorsing Cressman — and the idea that campaign finance reform needs to be a top issue in a state and country that are letting wealthy individuals and corporations have disproportionate influence over what is supposed to be a democracy.

 

CONTROLLER: BETTY YEE

The pay-to-play politics of Leland Yee and two other California Democrats has smeared the Assembly. Amid the growls of impropriety, a report by the Center for Investigative Reporting has painted Speaker of the Assembly John Perez, a leading candidate for Controller, with a similar brush. CIR revealed Perez raised money from special interest groups to charities his lover favored, a lover later sued for racketeering and fraud.

Betty Yee represents an opportunity for a fresh start. On the state’s Board of Equalization she turned down campaign donations from tobacco interests, a possible conflict of interest. She also fought for tax equity between same-sex couples. The Controller is tasked with keeping watch on and disbursing state funds, a position we trust much more to Yee’s careful approach than Perez’s questionable history. Vote for Yee.

 

TREASURER: JOHN CHIANG

While serving as California’s elected Controller, John Chiang displayed his courage and independence by refusing to sign off on budgetary tricks used by then-Gov. Arnold Schwarzenegger and some legislative leaders, insisting on a level of honesty that protected current and future Californians. During those difficult years — as California teetered on the brink of bankruptcy, paralyzed by partisan brinksmanship each budget season, written off as a failed state by the national media — Chiang and retiring Treasurer Bill Lockyer were somehow able to keep the state functioning and paying its bills.

While many politicians claim they’ll help balance the budget by identifying waste and corruption, Chiang actually did so, identifying $6 billion by his estimate that was made available for more productive purposes. Now, Chiang wants to continue bringing fiscal stability to this volatile state and he has our support.

 

ATTORNEY GENERAL: KAMALA HARRIS

Kamala Harris has kept the promise she made four years ago to bring San Francisco values into the Attorney General’s Office, focusing on the interests of everyday Californians over powerful vested interests. That includes strengthening consumer and privacy protections, pushing social programs to reduce criminal recidivism rather than the tough-on-crime approach that has ballooned our prison population, reaching an $18 billion settlement with the big banks and mortgage lenders to help keep people in their homes, and helping to implement the Affordable Care Act and the legalization of same-sex marriage in the state.

Harris has maintained her opposition to the death penalty even though that has hurt her in the statewide race, and she brings to the office an important perspective as the first woman and first African American ever to serve as the state’s top law enforcement officer. While there is much more work to be done in countering the power of wealthy individuals and corporations and giving the average Californian a stronger voice in our legal system, Harris has our support.

 

INSURANCE COMMISSIONER: DAVE JONES

We’ve been following Dave Jones’s legislative career since his days on the Sacramento City Council and through his terms in the California Legislature, and we’ve always appreciated his autonomy and progressive values. He launched into his role as Insurance Commissioner four years ago with an emergency regulation requiring health insurance companies to use no more than 20 percent of premiums on profits and administrative costs, and he has continued to do what he can to hold down health insurance rates, including implementing the various components of the Affordable Care Act.

More recently, Jones held hearings looking at whether Uber, Lyft, and other transportation network companies are adequately insured to protect both their drivers and the general public, concluding that these companies need to self-insure or otherwise expand the coverage over their business. It was a bold and important move to regulate a wealthy and prosperous new industry. Jones deserves credit for taking on the issue and he has earned our endorsement.

 

SUPERINTENDENT OF SCHOOLS: TOM TORLAKSON

This race is a critical one, as incumbent Tom Torlakson faces a strong challenge from the charter school cheerleader Marshall Tuck. An investment banker and Harvard alum, Tuck is backed by well-heeled business and technology interests pushing for the privatization of our schools. Tech and entertainment companies are pushing charter schools heavily as they wait in the wings for lucrative education supply contracts, for which charter schools may open the doors. And don’t let Waiting for Superman fool you, charter schools’ successful test score numbers are often achieved by pushing out underperforming special needs and economically disadvantaged students.

As national education advocate Diane Ravitch wrote in her blog, “If Tuck wins, the privatization movement will gain a major stronghold.” California ranks 48th in the nation in education spending, a situation we can thank Prop. 13 for. We’d like to see Torlakson advocate for more K-12 school dollars, but for now, he’s the best choice.

 

BOARD OF EQUALIZATION: FIONA MA

Fiona Ma was never our favorite member of the San Francisco Board of Supervisors, and in the California Legislature, she has seemed more interested in party politics and leadership than moving legislation that is important to San Francisco. There are a few exceptions, such as her attempts last year to require more employers to offer paid sick days and to limit prescription drug co-payments. But she also notoriously tried to ban raves at public venues in 2010, a reactionary bill that was rejected as overly broad.

But the California Board of Equalization might just be a better fit for Ma than the Legislature. She’s a certified public accountant and would bring that financial expertise to the state’s main taxing body, and we hope she continues in the tradition of her BOE predecessor Betty Yee in ensuring the state remains fair but tough in how it collects taxes.

 

ASSEMBLY, DISTRICT 17: DAVID CAMPOS

The race to replace progressive hero Tom Ammiano in the California Assembly is helping to define this important political moment in San Francisco. It’s a contest between the pragmatic neoliberal politics of Board of Supervisors President David Chiu and the populist progressive politics of Sup. David Campos, whom Ammiano endorsed to succeed him.

It’s a fight for the soul of San Francisco, a struggle to define the values we want to project into the world, and, for us at the Bay Guardian, the choice is clear. David Campos is the candidate that we trust to uphold San Francisco’s progressive values in a state that desperately needs that principled influence.

Chiu emphasizes how the two candidates have agreed on about 98 percent of their votes, and he argues that his effectiveness at moving big legislation and forging compromises makes him the most qualified to represent us in Sacramento. Indeed, Chiu is a skilled legislator with a sharp mind, and if “getting things done” — the prime directive espoused by both Chiu and Mayor Ed Lee — was our main criterion, he would probably get our endorsement.

But when you look at the agenda that Chiu and his allies at City Hall have pursued since he came to power — elected as a progressive before pivoting to become a pro-business moderate — we wish that he had been a little less effective. The landlords, tech titans, Realtors, and Chamber of Commerce have been calling the shots in this city, overheating the local economy in a way that has caused rapid displacement and gentrification.

“Effective for whom? That’s what’s important,” Campos told us during his endorsement interview, noting that, “Most people in San Francisco have been left behind and out of that prosperity.”

Campos has been a clear and consistent supporter of tenants, workers, immigrants, small businesses, environmentalists — the vast majority of San Franciscans, despite their lack of power in City Hall. Chiu will sometimes do right by these groups, but usually only after being pushed to do so by grassroots organizing and lobbying efforts.

Campos correctly points out that such lobbying is more difficult in Sacramento, with its higher stakes and wider range of competing interests, than it is on the local level. Chiu’s focus on always trying to find a compromise often plays into the hands of wealthy interests, who sometimes just need to be fought and stopped.

We have faith in Campos and his progressive values, and we believe he will skillfully carry on the work of Ammiano — who is both an uncompromising progressive and an effective legislator — in representing San Francisco’s values in Sacramento.

 

ASSEMBLY, DISTRICT 19: PHIL TING

Incumbent Phil Ting doesn’t have any challengers in this election, but he probably would have won our support anyway. After proving himself as San Francisco’s Assessor, taking a strong stance against corporate landowners and even the Catholic Church on property assessments, Ting won a tough race against conservative businessman Michael Breyer to win his Assembly seat.

Since then, he’s been a reliable vote for legislation supported by most San Franciscans, and he’s sponsoring some good bills that break new ground, including his current AB 1193, which would make it easier to build cycletracks, or bike lanes physically separated from cars, all over the state. He also called a much-needed Assembly committee hearing in November calling out BART for its lax safety culture, and we hope he continues to push for reforms at that agency.

 

PROPOSITION 41: YES

Over a decade ago, Californians voted to use hundreds of millions of our dollars to create the CalVet Home and Farm Loan Program to help veterans purchase housing. But a reduction in federal home loan dollars, the housing crisis, and a plummeting economy hurt the program.

Prop. 41 would repurpose $600 million of those bond funds and raise new money to create affordable housing rental units for some of California’s 15,000 homeless veterans. This would cost Californians $50 million a year, which, as proponents remind us, is one-tenth of 1 percent of the state budget. Why let hundreds of millions of dollars languish unused? We need to reprioritize this money to make good on our unfulfilled promises to homeless veterans.

 

PROPOSITION 42: YES

This one’s important. Last year, Gov. Jerry Brown sought to gut the California Public Records Act by making it optional for government agencies to comply with many of the requirements built into this important transparency law. The CPRA and the Ralph M. Brown Act require government agencies to make records of their activities available for public scrutiny, and to provide for adequate notice of public meetings. Had the bill weakening these laws not been defeated, it would have removed an important defense against shadowy government dealings, leaving ordinary citizens and journalists in the dark.

Prop. 42 is a bid to eliminate any future threats against California’s important government transparency laws, by expressly requiring local government agencies — including cities, counties, and school districts — to comply with all aspects of the CPRA and the Brown Act. It also seeks to prevent local agencies from denying public records requests based on cost, by eliminating the state’s responsibility to reimburse local agencies for cost compliance (the state has repeatedly failed to do so, and local bureaucracies have used this as an excuse not to comply).

 

SF’S PROPOSITION A: YES

Prop. A is a $400 million general obligation bond measure that would cover seismic retrofits and improvements to the city’s emergency infrastructure, including upgrades to the city’s Emergency Firefighting Water System, neighborhood police and fire stations, a new facility for the Medical Examiner, and seismically secure new structures to house the police crime lab and motorcycle unit.

The Board of Supervisors voted unanimously to place Prop. A on the ballot, and a two-thirds majority vote is needed for it to pass. Given that San Franciscans can expect to be hit by a major earthquake in the years to come, upgrading emergency infrastructure, especially the high-pressure water system that will aid the Fire Department in the event of a major blaze, is a high priority.

 

SF’S PROPOSITION B: YES

As we report in this issue (see “Two views of the waterfront”), San Francisco’s waterfront is a valuable place targeted by some ambitious development schemes. That’s a good thing, particularly given the need that the Port of San Francisco has for money to renovate or remove crumbling piers, but it needs to be carefully regulated to maximize public benefits and minimize private profit-taking.

Unfortunately, the Mayor’s Office and its appointees at the Port of San Francisco have proven themselves unwilling to be tough negotiators on behalf of the people. That has caused deep-pocketed, politically connected developers to ignore the Waterfront Land Use Plan and propose projects that are out-of-scale for the waterfront, property that San Francisco is entrusted to manage for the benefit of all Californians.

All Prop. B does is require voter approval when projects exceed existing height limits. It doesn’t kill those projects, it just forces developers to justify new towers on the waterfront by providing ample public benefits, restoring a balance that has been lost. San Francisco’s waterfront is prime real estate, and there are only a few big parcels left that can be leveraged to meet the needs of the Port and the city. Requiring the biggest ones to be approved by voters is the best way to ensure the city — all its residents, not just the politicians and power brokers — is getting the best deals possible.

 

SF SUPERIOR COURT JUDGE: DANIEL FLORES

Daniel Flores has an impressive list of endorsers, including the Democratic, Republican, and Green parties of San Francisco — a rare trifecta of political party support. But don’t hold the GOP nod against Flores, who was raised in the Excelsior by parents who immigrated from El Salvador and who interned with La Raza Centro Legal while going to McGeorge School of Law. And he did serve in the Marines for six years, which could explain the broad range of support for him.

Flores is a courtroom litigator with experience in big firms and his own practice, representing clients ranging from business people to tenants fighting against their landlords. Flores told us that he wants to ensure those without much money are treated fairly in court, an important goal we support. We also liked Kimberly Williams and hope she ends up on the bench someday, but in this race, Flores is the clear choice.

 

CONGRESS, DISTRICT 12: NANCY PELOSI

This was a hard decision for us this year. Everyone knows that Pelosi will win this race handily, but in past races we’ve endorsed third party challengers or even refused to endorse anyone more often than we’ve given Pelosi our support. While Pelosi gets vilified by conservatives as the quintessential San Francisco liberal, she’s actually way too moderate for our tastes.

Over her 21 years in Congress, she has presided over economic policies that have consolidated wealth in ever fewer hands and dismantled the social safety net, environmental policies that have ignored global warming and fed our over-reliance on the private automobile, and military policies that expanded the war machine and overreaching surveillance state, despite her insider’s role on the House Intelligence Committee.

Three of her opponents — Democrat David Peterson, Green Barry Hermanson, and fiery local progressive activist Frank Lara of the Peace and Freedom Party — are all much better on the issues that we care about, and we urge our readers to consider voting for one of them if they just can’t stomach casting a ballot for Pelosi. In particular, Hermanson has raised important criticisms of just how out of whack our federal budget priorities are. We also respect the work Lara has done on antiwar and transit justice issues in San Francisco, and we think he could have a bright political future.

But we’ve decided to endorse Pelosi in this election for one main reason: We want the Democrats to retake the House of Representatives this year and for Pelosi to once again become Speaker of the House. The Republican Party in this country, particularly the Tea Party loyalists in the House, is practicing a dangerous and disgusting brand of political extremism that needs to be stopped and repudiated. They would rather shut the government down or keep it hopelessly hobbled by low tax rates than help it become an effective tool for helping us address the urgent problems that our country faces. Pelosi and the Democrats aren’t perfect, but at least they’re reasonable grown-ups and we’d love to see what they’d do if they were returned to power. So Nancy Pelosi has our support in 2014.

 

CONGRESS, DISTRICT 13: BARBARA LEE

Barbara Lee has been one of our heroes since 2001, when she was the only member of Congress to vote against the Authorization for the Use of Military Force Against Terrorists, braving the flag-waving nationalism that followed the 9/11 attacks on the World Trade Center and Pentagon to warn that such an overly broad declaration of war was dangerous to our national interests. She endured death threats and harsh condemnation for that principled stand, but she was both courageous and correct, with our military overreach still causing problems for this country, both practical and moral.

Lee has been a clear and consistent voice for progressive values in the Congress for 16 years, chairing both the Congressional Black Caucus and Congressional Progressive Caucus, taking stands against capital punishment and the Iraq War, supporting access to abortions and tougher regulation of Wall Street, and generally representing Oakland and the greater Bay Area well in Washington DC. She has our enthusiastic support.

 

CONGRESS, DISTRICT 14: JACKIE SPEIER

Jackie Speier has given her life to public service — almost literally in 1978 when she was an aide to then-Rep. Leo Ryan and survived the airstrip shootings that triggered the massacre at Jonestown — and she has earned our ongoing support. Speier has continued the consumer protection work she started in the California Legislature, sponsoring bills in Congress aimed at protecting online privacy. She has also been a strong advocate for increasing federal funding to public transit in the Bay Area, particularly to Muni and for the electricification of Caltrain, an important prelude to the California High-Speed Rail Project. In the wake of the deadly natural gas explosion in San Bruno, Speier has pushed for tough penalties on Pacific Gas & Electric and expanded pipeline safety programs. She has been a strong advocate of women’s issues, including highlighting the epidemic of sexual assault on college campuses and in the military, seeking greater protections, institutional accountability, and recourse for victims. More recently, Speier has become a key ally in the fight to save City College of San Francisco, taking on the federal accreditation process and seeking reforms. Speier is a courageous public servant who deserves your vote.

The price of growth

20

joe@sfbg.com

San Francisco is booming, but will its infrastructure be able to keep up with its population growth?

The problem is acutely illustrated in the southeast part of San Francisco, where long-stalled development plans were finally greenlit by the adoption of the Eastern Neighborhoods Community Plan a few years ago.

The Mission, Potrero Hill, Dogpatch, and Mission Bay districts have attracted more attention from developers than any other sector of San Francisco, according to the Planning Department. Bayview and Hunters Point are also now attracting lots of investment and building by developers.

But when development projects don’t pay the full cost of the infrastructure needed to serve those new residents — which is often the case in San Francisco and throughout California, with its Prop. 13 cap on property tax increases — then that burden gets passed on the rest of us.

Mayor Ed Lee’s recent call to build 30,000 new housing units by 2020 and the dollar sign lures of waterfront development have pressed the gas pedal on construction, while giving short shrift to corresponding questions about how the serve that growth.

growthimage

Infrastructure needs — such as roads, public transit, parks, and the water and sewer systems — aren’t as sexy as other issues. But infrastructure is vital to creating a functional city.

That kind of planning (or lack thereof) impacts traffic congestion, public safety, and the overall livability of the city. And right now, the eastern neighborhoods alone face a funding gap as high as $274 million, according to city estimates highlighted by area Sup. Malia Cohen.

That’s why Cohen went looking for help, though that’s not exactly what she found.

 

MEETING DEMAND

Cohen has asked Mayor Lee about the lack of adequate investment in critical infrastructure again and again. She asked his staffers, she asked his aides. At the Feb. 11 Board of Supervisors meeting, during the mayor’s question time, she was determined to ask one more time.

Cohen asked the mayor about how to fund infrastructure needs in the eastern neighborhoods and whether the city should use a new, rarely used fundraising option called an Infrastructure Financing District, or IFD.

“When the city adopted the Eastern Neighborhoods Plan, we were aware of a significant funding gap that existed for infrastructure improvement,” she said to the mayor. She asked if he would slow down development while the city caught up with infrastructure improvements, or commit more funding.

Cohen asked pointedly, “Would you support an IFD for the eastern neighborhoods?”

The mayor’s answer was in the foreign language known as bureaucratese, offering a firm “only if we have to.”

“Strategically planning for growth means making long-term investments in infrastructure,” he said. “And the most important thing that we can do right now is to work together to place and pass two new revenue generating bonds measures on the November 2014 ballot.”

But his proposed $500 million general obligation bond and $1 billion local vehicle license fee increase would just go to citywide transportation projects, where the city faces $6 billion in capital needs over the next 15 years, according to a task force formed by the mayor.

That’s small comfort for the people of the eastern neighborhoods, who are already ill-served by Muni and will have other needs as well. It’s a situation likely to get worse as the population there increases, unless the city finds a way to make serious new investments.

 

CITY VS. NEIGHBORHOOD

Development impact fees go to the city’s General Fund, paying for the planning work, building inspections, and a share of citywide infrastructure improvements. The problem with that strategy, opponents say, is that there are then no promises that the money will make its way back to the neighborhood that generated the funding in the first place.

Neighborhood advocates see a need to address the problems created by new development by capturing fees before they get to the General Fund. IFDs do just that. Though the nuts and bolts of how an IFD works are complex, the gist is this: Once implemented, an IFD sets up a special area in a neighborhood where a portion of developer impact fees are captured to exclusively fund infrastructure where the development is.

“So the idea that growth should pay for growth was the notion,” Tom Radulovich, executive director of the nonprofit group Livable City, told us. But with money flowing into the General Fund rather than being earmarked for specific neighborhoods, Radulovich said,the infrastructure is going to come much later than the development. (The city) delivers projects slowly, if at all.”

IFDs are largely untested in California, and have only one recent use in San Francisco, on Rincon Hill, where a deal with developers cut by then-Sup. Chris Daly has morphed into an IFD created by his successor, Sup. Jane Kim. The neighborhood will now see new funding, and a new park, as a result of development there.

“This is a HUGE step towards getting the public infrastructure improvements needed to correct livability deficiencies in Rincon Hill,” read a newsletter from the Rincon Hill Neighborhood Association in 2011. “What does this mean for those of us living (here)? It means the Caltrans property at 333 Harrison Street has a short future as a commuter parking lot, because the front portion will become our first neighborhood park.”

The benefits are tangible, but putting an IFD into action is onerous. California Senate documents describe the hurdles involved: The county (or city) needs an infrastructure plan, it must hold public hearings, every local agency that will contribute property tax revenue must approve the plan, and the IFD needs to go to ballot and obtain two-thirds voter approval, a high mountain to climb.

Gov. Jerry Brown has called for lowering the voter threshold for IFDs to 55 percent in his newest budget. The mayor used the governor’s rationale as reason to avoid an IFD for the eastern neighborhoods when speaking on the topic last week. But that may not be his only reason.

“Even if we get the changes that we seek, it’s important to point out that IFDs don’t create more money for our city, they fund specific capital improvements by earmarking money in the General Fund for a particular purpose,” Lee said.

In other words, IFDs take money from a city that is already wrestling with underfunded citywide infrastructure needs. “Earmarking general funds isn’t something that we do lightly,” Lee told Cohen.

But Peter Cohen, co-director of the Council of Community Housing Organizations, put it this way to us: “Should the eastern neighborhoods be the cash cow for the General Fund?”

 

BOOMTOWN

With more than 10,000 housing entitlements, the eastern neighborhoods are where San Francisco will experience its biggest growing pangs.

“The eastern neighborhoods are ground zero for development in San Francisco,” Keith Goldstein, a long time member of the Eastern Neighborhoods Citizens Advisory Committee, told a Nov. 14 Board of Supervisors Government Oversight Committee hearing on the issue.

Sups. Cohen and David Campos spent the majority of the meeting trying to find solutions, but none were forthcoming. Instead they were met with presentations on the neighborhood’s myriad needs, but few on how they would be funded.

Muni is also starved for resources in the area, where the T-line is notorious for its “switchbacks” that leave riders stranded before completing its run.

“This is a topic I’ve advocated a lot,” Sup. Scott Wiener told us. “When you have a growing population, these folks absolutely have to have service.”

At the meeting, Planning Director John Rahaim put the problem simply: “There’s a lack of development fee funding.” The officials that day from the SFMTA, Planning Department, and the Department of Public Works presented plans that relied heavily on state and federal funding to meet the new construction and infrastructure needs, a funding gap of $274 million.

“We’re really struggling to maintain the infrastructure the city has,” Brian Strong, director of capital planning, said at the meeting. “For the General Fund itself, we’re deferring $3.9 billion in capital projects the city deemed high priority. We just don’t have the funds.”

The Mayor’s Office didn’t respond to our questions about how to solve the problem, but Sup. Cohen said she’s hopeful he’ll support an IFD in her district.

“When we introduced the plan five years ago, we knew there was a gap in terms of what we expected to collect. In terms of development impact fees, we’re still in that place,” she told us. “I just want to get shit done.”

One report seems to agree with Cohen on the importance of IFDs. In 2009, a major report on development in the eastern neighborhoods was filed to then-Mayor Gavin Newsom. It recommended the city “commission a consultant study to inform the formation of an IFD,” saying it was the best tool available to fund infrastructure in the eastern districts.

The top signature on the report belonged to then-City Administrator Ed Lee. Now that he’s mayor, a mayor calling for rapid growth, can he find a way to pay for the infrastructure to serve those new residents?

The trouble with compromise

44

“It takes no compromise to give people their rights… It takes no money to respect the individual. It takes no political deal to give people freedom. It takes no survey to remove repression.” — Harvey Milk

OPINION As I sat in the audience at the Jan. 23 San Francisco Young Democrats meeting and watched the first debate between David Campos and David Chiu in their race to represent San Francisco’s 17th Assembly District, I was disturbed to hear the words “compromise” and “consensus” come out of David Chiu’s mouth more often than the words “eviction” and “displacement.”

During the debate, a line in the sand was drawn by the two candidates: Campos was on the side of the underdog, a voice to the voiceless; and Chiu, by his own admission, was all about compromise and “getting things done.”

Don’t get me wrong. True compromise can be a good thing. Unfortunately, what has been coming out of City Hall, from both President Chiu’s Board of Supervisors chamber and the Mayor’s Office, hasn’t been real compromise. It’s been a wholesale selling of our city to the highest bidder. The only thing that our leadership’s compromises have yielded is a compromised San Francisco.

Compromise gave corporations millions of dollars in tax breaks and it has forced nonprofits and small businesses out of our neighborhoods. Compromise has not resulted in any substantive action to curb Ellis Act evictions, instead serving to green light the building of luxury condo towers throughout the city. Compromise has allowed queer youth shelters and our parks to be closed to the people who need them as a last resort, as our bus stops have been opened up to billionaires for little more than pennies.

Chiu’s compromises have cost this city dearly. His compromise with developers on Parkmerced will lead to the demolition of 1,500 units of rent-controlled housing. His compromise on Healthy San Francisco allowed restaurant owners to continue to defraud consumers and to pocket money that should have gone to health care for their employees. His compromise on Muni killed a much-needed ballot initiative that would have resulted in an additional $40 million for the agency — a ballot initiative that he originally co-authored.

Please forgive me if I am fed up with compromise and am demanding actual leadership from my representatives.

Now is the time to stand with people of color, with members of the LGBTQ community, with our youth and elders, with artists and with small businesses, all of whom are being forced out of our city.

Thankfully, we have another choice. Sup. David Campos has shown that real change comes not from compromising your values but standing up for your principles. His legislative accomplishments include providing free Muni for low-income youth, protecting women’s right to choose at the Planned Parenthood Clinic, and preventing teacher layoffs at our public schools.

Campos has demonstrated that he, not Chiu, is the right choice to follow Tom Ammiano’s footsteps to Sacramento. Ammiano, who had 13 of his 13 bills signed into law this past year, is the perfect example of the success that can come from leading with your principles and not compromising your integrity.

San Francisco needs a leader representing us in the capital. Successful victories in reforming the Ellis Act and closing the Prop. 13 tax loophole will take a leader who can stand up to landlords and corporations, not a compromiser who will sit down at the table in a backroom with them.

That is why I will give my all to make sure that David Campos is our next representative in Sacramento. Pardon me if I refuse to compromise.

Tom Temprano is president of the Harvey Milk LGBT Democratic Club.

Planning for displacement

70

tredmond@sfbg.com

The intersection of Cesar Chavez and Evans Avenue is a good enough place to start. Face south.

Behind you is Potrero Hill, once a working-class neighborhood (and still home to a public housing project) where homes now sell for way more than a million dollars and rents are out of control. In front, down the hill, is one of the last remaining industrial areas in San Francisco.

Go straight along Evans and you find printing plants, an auto-wrecking yard, and light manufacturing, including a shop that makes flagpoles. Take a right instead on Toland, past the Bonanza restaurant, and you wander through auto-glass repair, lumber yards, plumbing suppliers, warehouses, the city’s produce market — places that the city Planning Department refers to at Production, Distribution, and Repair facilities. Places that still offer blue-collar employment. There aren’t many left anywhere in San Francisco, and it’s amazing that this district has survived.

Cruise around for a while and you’ll see a neighborhood with high home-ownership rates — and high levels of foreclosures. Bayview Hunters Point is home to much of the city’s dwindling African American population, a growing number of Asians, and much higher unemployment rates than the rest of the city.

Now pull up the website of the Association of Bay Area Governments, a well-funded regional planning agency that is working on a state-mandated blueprint for future growth. There’s a map on the site that identifies “priority development area” — in planning lingo, PDAs — places that ABAG, and many believers in so-called smart growth, see as the center of a much-more dense San Francisco, filled with nearly 100,000 more homes and 190,000 new jobs.

Guess what? You’re right in the middle of it.

The southeastern part of the city — along with many of the eastern neighborhoods — is ground zero for massive, radical changes. And it’s not just Bayview Hunters Point; in fact, there’s a great swath of the city, from Chinatown/North Beach to Candlestick Park, where regional planners say there’s space for new apartments and condos, new offices, new communities.

It’s a bold vision, laid out in an airy document called the Plan Bay Area — and it’s about to clash with the facts on the ground. Namely, that there are already people living and working in the path of the new development.

And there’s a high risk that many of them will be displaced; collateral damage in the latest transformation of San Francisco.

CLIMATE CHANGE AND “SMART GROWTH”

The threat of global climate change hasn’t convinced the governor or the state Legislature to raise gas taxes, impose an oil-severance tax, or redirect money from highways to transit. But it’s driven Sacramento to mandate that regional planners find ways to reduce greenhouse gas emissions in California cities.

The bill that lays this out, SB375, mandates that ABAG, and its equivalents in the Los Angeles Basin, the Central Coast, the Central Valley and other areas, set up “Sustainable Communities Strategies” — land-use plans for now through 2040 intended to reduce greenhouse gas emissions by 15 percent.

The main path to that goal: Make sure that most of the 1.1 million people projected to live in the Bay Area by 2040 be housed in already developed areas, near transit and jobs, to avoid the suburban sprawl that leads to long commutes and vast amounts of car exhaust.

The notion of smart growth — also referred to as urban infill — has been around for years, embraced by a certain type of environmentalist, particularly those concerned with protecting open space. But now, it has the force of law.

And while ABAG is not a secret government with black helicopters that can force cities to do its will — land-use planning is still under local jurisdiction in this state — the agency is partnering with the Metropolitan Transportation Commission, which controls hundreds of millions of dollars in state and federal transportation money. And together, they can offer strong incentives for cities to get in line.

Over in Contra Costa and Marin counties, at hearings on the plan, Tea Party types (yes, they appear to exist in Marin) railed against the notion of elite bureaucrats forcing the wealthy enclaves of single-family homes to accept more density (and, gasp, possibly some affordable housing). In San Francisco, it’s the progressives, the transit activists, and the affordable housing people who are starting to get worried. Because there’s been almost zero media attention to the plan, and what it prescribes for San Francisco is alarming — and strangely nonsensical.

Under the ABAG plan, San Francisco would approve 92,400 more housing units for 280,000 more people. The city would host 190,000 more jobs, many of them in what’s called the “knowledge economy,” which mostly means high tech. Second and third on the list: Health and education, and tourism.

The city currently allows around eight cars for every 10 housing units; as few as five in a few neighborhoods, at least 10 in many others. And there’s nothing in any city or regional plan right now that seeks to change that level of car dependency. In fact, the regional planners think that single-occupancy car travel will be the mode of choice for 48 percent of all trips by 2040 — almost the same as it is today.

And since most of the new housing will be aimed at wealthier people, who are more likely to own cars and avoid catching buses, San Francisco could be looking for ways to fit 73,000 more cars onto streets that are already, in many cases, maxed out. There will be, quite literally, no place to park. And congestion in the region, the planners agree, will get a whole lot worse.

That seems to undermine the main intent of the plan: Transit-oriented development only works if you discourage cars. In a sense, the car-use projections are an admission of failure, undermining the intent of the entire project.

The vast majority of the housing that will be built will be too expensive for much of the existing (and even future) workforce and will do little to relieve the pressure on lower income people. But there is nothing whatsoever in the plan to ensure that there’s money available to build housing that meets the needs of most San Franciscans.

Instead, the planners acknowledge that 36 percent of existing low-income people will be at risk for displacement. That would be a profound change in the demographics of San Francisco.

Of course, adding all those people and jobs will put immense pressure on city services, from Muni to police, fire, and schools — not to mention the sewer system, which already floods and dumps untreated waste into the Bay when there’s heavy rain. Everyone involved acknowledged those costs, which could run into the billions of dollars. There is nothing anywhere in any of the planning documents addressing the question of who will pay for it.

THE NUMBERS GAME

Projecting the future of a region isn’t easy. Job and population growth isn’t a straight line, at best — and when you’re looking at a 25-year window in a boom-and-bust area with everything from earthquakes to sea-level rise factoring in, it’s easy to say that anyone who claims to know what’s going to happen in 2040 is guessing.

But as economist Stephen Levy, who did the regional projections for ABAG, pointed out to us, “You have to be able to plan.” And you can’t plan if you don’t at least think about what you’re planning for.

Levy runs the Center for the Continuing Study of the California Economy, and he’s been watching trends in this state for years. He agrees that some of his science is, by nature, dismal: “Nobody projects deep recessions,” much less natural disasters. But overall, he told me, it’s possible to get a grip on what planners need to prepare for as they write the next chapter of the Bay Area’s future.

And what they have to plan for is a lot more people.

Levy said he started with the federal government’s projections for population growth in the United States, which include births and deaths, immigration, and out-migration, using historic trends to allocate some of that growth to the Bay Area. There’s what appears at first to be circular logic involved: The feds (and most economists) project that job growth nationally will be driven by population — that is, the more people live in the US, the more jobs there will be.

Population growth in a specific region, on the other hand, is driven by jobs — that is, the more jobs you have in the Bay Area, the more people will move here.

“Jobs in the US depend on how many people are in the labor force,” he said. “Jobs in the Bay Area depend on our share of US jobs and population depends on relative job growth.”

Make sense? No matter — over the years it’s generally worked. And once you project the number of people and jobs expected in the Bay Area, you can start looking at how much housing it’s going to take to keep them all under a roof.

Levy projects that the Bay Area’s share of jobs will be higher than most of the rest of the country. “This is the home of the knowledge industry,” he told me. So he’s concluded that population in the Bay Area will grow from 7.1 million to 9.2 million — an additional 2.14 million people. They’ll be chasing some 1.1 million new jobs, and will need 660,000 new housing units.

Levy stopped there, and left it to the planners at ABAG to allocate that growth to individual cities — and that’s where smart growth comes in.

For decades in the Bay Area, particularly in San Francisco, activists have waged wars against developers, trying to slow down the growth of office buildings, and later, luxury housing units. At the same time, environmentalists argued that spreading the growth around creates serious problems, including sprawl and the destruction of farmland and open space.

Smart growth is supposed to be an alternative: the idea is to direct new growth to already-established urban areas, not by bulldozing over communities (as redevelopment agencies once did) but by the use of “infill” — directing development to areas where there’s usable space, or by building up and not out.

ABAG “focused housing and jobs growth around transit areas, particularly within locally identified Priority Development Areas,” the draft environmental impact report on the plan notes.

The draft EIR is more than 1,300 pages long, and it looks at the ABAG plan and several alternatives. One alternative, proposed by business groups, would lead to more development and higher population gains. Another, proposed by community activist groups including Public Advocates, Urban Habitat, and TransForm, is aimed at reducing displacement and creating affordable housing; that one, it turns out, is the “environmentally preferred alternative.” (See sidebar).

But no matter which alternative you look at, two things leap out: There is nothing effective that ABAG has put forward to prevent large-scale displacement of vulnerable communities. And despite directing growth to transit corridors, the DEIR still envisions a disaster of traffic congestion, parking problems, and car-driven environmental wreckage.

THE DISPLACEMENT PROBLEM

ABAG has gone to some lengths to identify what it calls “communities of concern.” Those are areas, like Bayview Hunters Point, Chinatown, and the Mission, where existing low-income residents and small businesses face potential displacement. In San Francisco, those communities are, to a great extent, the same geographic areas that have been identified as PDAs.

And, the DEIR, notes, some degree of displacement is a significant impact that cannot be mitigated. In other words, the gentrification of San Francisco is just part of the plan.

In fact, the study notes, 36 percent of the communities of concern in high-growth areas will face displacement pressure because of the cost of housing. And that’s region wide; the number in San Francisco will almost certainly be much, much higher.

Miriam Chion, ABAG’s planning and research director, told me that displacement “is the core issue in this whole process.” The agency, she said, is working with other stakeholders to try to address the concern that new development will drive out longtime residents. But she also agreed that there are limited tools available to local government.

The DEIR notes that ABAG and the MTC will seek to “bolster the plan’s investment in the Transit Oriented Affordable Housing Fund and will seek to do a study of displacement. It also states: “In addition, this displacement risk could be mitigated in cities such as San Francisco with rent control and other tenant protections in place.”

There isn’t a tenant activist in this town who can read that sentence with a straight face.

The problem, as affordable housing advocate Peter Cohen puts it, is that “the state has mandated all this growth, but has taken away the tools we could use to mitigate it.”

That’s exactly what’s happened in the past few decades. The state Legislature has outlawed the only effective anti-displacement laws local governments can enact — rent controls on vacant apartments, commercial rent control, and eviction protections that prevent landlords from taking rental units off the market to sell as condos. Oh, and the governor has also shut down redevelopment agencies, which were the only reliable source of affordable housing money in many cities.

Chion told me that the ABAG planners were discussing a list of anti-displacement options, and that changes in state legislation could be on that list. Given the power of the real-estate lobby in the state Capitol, ABAG will have to do more than suggest; there’s no way this plan can work without changing state law.

Otherwise, eastern San Francisco is going to be devastated — particularly since the vast majority of all housing that gets built in the city, and that’s likely to get built in the city, is too expensive for almost anyone in the communities of concern.

“This plan doesn’t require affordable housing,” Cindy Wu, vice-chair of the San Francisco Planning Commission, told me. “It’s left to the private market, which doesn’t build affordable housing or middle-class housing.”

In fact, while there’s plenty of discussion in the plan about where money can come from for transit projects, there’s virtually no discussion of the billions and billions that will be needed to produce the level of affordable housing that everyone agrees will be needed.

Does anyone seriously think that developers can cram 90,000 new units — at least 85 percent of them, under current rules, high-cost apartments and condos that are well beyond the range of most current San Franciscans — into eastern neighborhoods without a real-estate boom that will displace thousands of existing residents?

Let’s remember: Building more housing, even a lot more housing, won’t necessarily bring down prices. The report makes clear that the job growth, and population boom that accompanies it, will fuel plenty of demand for all those new units.

Steve Woo, senior planner with the Chinatown Community Development Center, sees the problem. In a letter to ABAG, he notes: “Plan Bay Area and its DEIR has analyzed the displacement of low-income people and explicitly acknowledges that it will occur. This is unacceptable for San Francisco and for Chinatown, where the pressures of displacement have been a constant over the past 20 years.”

Adds the Council of Community Housing Organizations: “It would be irresponsible for the regional agencies to advance a plan that purports to ‘improve’ the region’s communities as population grows while the plan simultaneously presents great risk and uncertainty for many vulnerable communities.”

Jobs are at stake, too — not tech jobs or office jobs, which ABAG projects will expand, but the kind of industrial jobs that currently exist in the priority development areas.

Calvin Welch, who has been watching urban planning and displacement issues in San Francisco for more than 40 years, puts it bluntly: “It is axiomatic that market-rate housing drives out blue-collar jobs,” he said.

Of course, there’s another potential problem: Nobody really knows where jobs will come from in the next 25 years, whether tech will continue to be the driver or whether the city’s headed for a second dot-com bust. San Francisco doesn’t have a good record of building for projected jobs: In the mid-1980s, for example, the entire South of Market area (then home to printing, light manufacturing, and other blue-collar jobs) was rezoned for open-floor office space because city officials projected a huge need for “back-office” functions like customer service.

“Where are all those jobs today?” Welch asked. “They’re in India.”

TOO MANY CARS

For a plan that’s designed to reduce greenhouse gas emissions by moving residential development closer to work areas, Plan Bay Area is awfully pessimistic about transportation.

According to the projections, there will be more cars on the roads in 2040, with more — and much worse — traffic. The DEIR predicts that a full 48 percent of all trips in 2040 will be made by single-occupant vehicles — just slightly down from current rates. The percentage of trips on transit will only be a little bit higher — and there’s no significant increase in projected bicycle trips.

That alone is pretty crazy, since the number of people commuting to work by bike in San Francisco has risen dramatically in the past 10 years, and the city’s official goal is that 20 percent of all vehicle trips will be by bike in the next decade.

Part of the problem is structural. Not everyone in San Francisco 2040 is going to be a high-paid tech worker. In fact, the most stable areas of employment are health services and government — and hospital workers and Muni drivers can’t possibly afford the housing that’s being built. So those people will — the DEIR acknowledges — be displaced from San Francisco and forced to live elsewhere in the region (if that’s even possible). Which means, of course, they’ll be commuting further to work. Meanwhile, if current trends continue, many of the people moving into the city will work in Silicon Valley.

Chion and Levy both told me that the transit mode projections were based on historical trends for car use, and that it’s really hard to get people to give up their cars. Even higher gas prices and abominable traffic delays won’t drive people off the roads, they said.

If that’s the case — if auto culture, which is a top source of global climate change, doesn’t shift at all — it would seem that all this planning is pointless: the seas will rise dramatically, and San Franciscans ought to be buying boats.

“The projections don’t take into account social change,” Jason Henderson, a geography professor at San Francisco State University and a local transportation expert, told me. “And social change does happen.”

Brad Paul, a longtime housing activist who now works for ABAG, said these projections are just a start, and that the plan will be updated every four years. “I think we’re finding that the number of people who want to drive cars will go down,” he said.

Henderson argues that the land-use policy is flawed. He suggests that it would make more sense to increase density in the Bay Area suburbs along the BART lines. “Elegant development in those areas would work better,” he said. You don’t need expensive high-rises: “Four and five stories is the sweet spot,” he explained.

Most of the transportation projects in the plan are already in the pipeline; there’s no suggestion of any major new public transit programs. There is, however, a suggestion that San Francisco adopt a congestion management fee for downtown driving — something that city officials say is the only way to avoid utter gridlock in the future.

SIDELINING CEQA

ABAG and the MTC have a fair amount of leverage to implement their plans. MTC controls hundreds of millions of dollars in transit money; ABAG will be handing out millions in grants to communities that adopt its plan. And under state law, cities that allow development in PDAs near transit corridors can gain an exemption from the California Environmental Quality Act.

CEQA is a powerful tool to slow or halt development, and developers (and some public officials) drool at the prospect of getting a fast-track pass to avoid some of the more cumbersome parts of the environmental review process.

Under SB 375 and Plan Bay Area, CEQA exemptions are available to projects that meet the Sustainable Community Strategy standards and are close to transit corridors. And when you look at the map of those areas, it’s pretty striking: All of San Francisco, pretty much every square inch, qualifies.

That means that almost any project almost anywhere in town can make a case that it doesn’t need to accept full CEQA review.

The most profound missing element in this entire discussion is the cost of all this growth.

You can’t cram 210,000 more residents into San Francisco without new schools, parks, and child-care centers. You can’t protect those residents without more police officers and firefighters. You can’t take care of their water and sewer needs without substantial infrastructure upgrades. And even if there’s state and federal money available for new buses and trains, you can’t operate those systems without paying drivers, mechanics, and support workers.

There’s no question that the new development will bring in more tax money. But the type of infrastructure improvements that will be needed to add 25 percent more residents to the city are really expensive — and every study that’s ever been done in San Francisco shows that the tax benefits of new development don’t cover the costs of public services it requires.

When World War II and the post-war boom in the Bay Area brought huge growth to the region, property taxes and federal and state money were adequate to build things like BART, the freeways, and hundreds of new schools, and to staff the public services that the emerging communities needed. But that all changed in 1978, with the passage of Prop. 13, and two years later, with the election of Ronald Reagan as president.

Now, federal money for cities is down to a trickle. Local government has an almost impossible time raising taxes. And instead of hiking fees for new residential and commercial projects, many communities (including San Francisco) are offering tax breaks to encourage job growth.

Put all that in the mix and you have a recipe for overcrowded buses, inadequate schools, overstressed open space (imagine 10,000 new Mission residents heading for Dolores Park on a nice day), and a very unattractive urban experience.

That flies directly in the face of what Plan Bay Area is supposed to be about. If the goal is to cut down on commutes by bringing new residents into developed urban areas, those cities have to be decent places to live. What would it cost to accommodate this level of new development? Five billion dollars? Ten billion? Nobody knows — because nobody has run those numbers. But they’re going to be big.

Because just as tax dollars have been vanishing, the costs of infrastructure keep going up. It costs a billion dollars a mile to build BART track. It’s costing more than a billion to build a short subway to Chinatown. Just upgrading the sewer system to handle current demands is a $4 billion project.

And if the developers and property owners who stand to make vast sums of money off all of this growth aren’t going to pay, who’s left?

The ABAG planners point out, correctly, that there’s a price for doing nothing. If there’s no regional plan, no proposal for smart growth, the population will still increase, and displacement will still happen — but the greenhouse gas emissions will be even worse, the development more haphazard.

But if the region is going to spend all this money and all this time on a plan to make the Bay Area more sustainable, more livable, and more affordable in 25 years, we might as well push all the limits and get it right.

Instead of looking at displacement as inevitable, and traffic as a price of growth, the planners could tell the state Legislature and the governor that it’s not possible to comply with SB375 — not until somebody identifies the big sums of money, multiples of billions of dollars, needed to build affordable housing; not until there are transit options, taxes, and restrictions on driving.

Because continued car use and massive displacement — the package that’s now facing us — just isn’t an acceptable option.

Why rent control works

108

I shouldn’t even bother to talk about this, because all it will do is stir up the trolls, but I’m getting sick of all the talk about rent control being a source of San Francisco’s housing problem. The latest is an editorial in the Business Times, which I buy to read J.K. Dineen’s stories about commercial real-estate, among other things. I should treat it like the Wall Street Journal; nobody takes the Journal’s editorial page seriously.

But the BT is just putting in print the argument that I’m hearing from the neo-libertarians who seem to be more and more populous in this town. And it goes like this:

Rent control distorts the market, which should be controlled by supply and demand. When you have rent control, evil tenants can stay in one place a really long time, thus “reducing urban vitality by discouraging mobility.” They can save their money for something other than rent. And it’s deeply unfair to landlords, because, as the BT notes:

By artificially limiting the return a building’s owner can generate on his investment, it discourages him from spending to maintain or upgrade the city’s housing stock. Rent increases are ordained not by supply and demand but by the city’s rent board. Legally, controlled rents can only go up each year by a fraction of the inflation rate. The ability to recoup costs of improvement or maintenance are also tightly curtailed. Costs are subject to no such limitations, so generally as a rent-controlled landlord, the longer you do it, the further behind you get.

Actually, rents go up by the percentage of the inflation rate that’s due to housing. The ability to recoup maintenance costs are not “tightly curtailed.” But more important, this notion that landlords “get further behind” because they can’t raise the rent assumes that most landlords — and their bankers — are idiots.

When you buy a piece of rental property, you typically have to prove to the bank that the rental income from the place is adequate to cover the mortgage, the taxes, the insurance, and upkeep, the same way a person buying a home has to prove that he or she has adequate income to pay the costs. When banks make loans the borrowers can’t repay, you get the mortgage crisis we’ve seen — but most of those units were single-family homes.

If I buy a rental property, the rent that’s coming in TODAY is matched with the price I’m paying TODAY. If the rents are too low to cover the cost, I have no business buying the place. And the bank has no business loaning me the money.

In San Francisco, unless you’re a complete moron, you buy rental property knowing, as the banker does, exactly what the current tenants are paying, and understanding, as the banker does, that the law won’t let me raise those rents by more than a modest amount each year. You’re making a profit at those rent levels; if not, you shouldn’t buy the place.

Now: Under Prop. 13, your property taxes can’t go up by much more than the rent goes up each year. And if you aren’t a speculative gambler (if you are, you have no rights anyway), you almost certainly have a fixed-rate mortgage. So your biggest “costs” are just as constrained as the rents you get. Meanwhile, your property continues to appreciate in value as the tenants pay your mortgage and taxes.

I know a lot of landlords in San Francisco, and the honest ones all say that owning rental property is a great deal — for the owner. There are probably some poor landlords who either (a) made bad business decisions or (b) were subject to some awful disaster and now find themselves unable to make ends meet. But they are not common.

Here’s the bottom line: Rent control prevents landlords from making speculative profits when the housing market booms. It also allows non-wealthy people to live here, for long periods of time, and become part of the San Francisco community. Housing stability INCREASES “urban vitality.” That’s the point.

Real, effective rent control would include limits on rent increases when a property becomes vacant. Berkeley had that in the 1980s. It didn’t cause urban blight or landlords abandoning buildings; instead, it helped create the Gourmet Ghetto and a thriving local business scene because tenants had more money to spend. It was a great success, until the state outlawed it.

Oh, and don’t tell me it discourages new construction: All new construction, since 1979, is exempt from rent control in San Francisco.

Rent control is, I will admit, bad for people who see housing as a speculative commodity, to be traded with little regard for its function as a basic human right. But I see housing more as a regulated utility — private owners have the right to a regular, acceptable return on investment, but not to excessive profits. Tenants have the right to live in the same place their entire lives, as long as they pay the (stable) rent and don’t become a nuisance.

These are good things for a city. The only problem with San Francisco rent control is that it isn’t strong enough.

Attack me, trolls. Or better, make a civil counter-argument that doesn’t start with “The problem with Tim is ….” Cuz we all know about my problems.

 

 

Is there hope for California?

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Nothing cheers up an old tax-and-spend liberal than word that two major new sources of state revenue — enough to begin closing the gap in education funding — are at least on the table in Sacramento.

At the state Democratic Convention April 13, delegates approved a resolution calling for a split-roll property-tax system, removing commercial property from the protection of Prop. 13. There’s a group called Evolve working on this statewide, and Assemblymember Tom Ammiano has a bill that would end a loophole that allows corporations to buy and sell property without reassessment.

And now there’s also a campaign gearing up to establish an oil severance tax — something that every other oil-producing state already has. As oil and gas companies try to create a new oil rush in California, fracking their way to billions, the public ought to get a little something. After all, the oil below the ground belongs, in a sense, to all of us, not just to the companies that can stick a pipe into it.

Meanwhile, organized labor is attacking the Enterprise Zone Tax Credit, which is basically a corporate giveaway.

Not all of this is going to happen this year. Even with the overwhelming Democratic majorities in both houses, tax reform is tough; there are armies of lobbyists who will fight it all the way. And any ballot measure would need serious deep-pocket funding, since the California Chamber of Commerce, the real-estate industry and Big Oil would pour tens of millions in to defeating it.

Still: You have to start somewhere, and five years ago, none of this would have even been under discussion. So maybe there’s hope for California after all.

 

 

 

 

 

 

Everybody likes Jerry; now what?

12

For the first time in many years, Californians seem to like their governor. Jerry Brown’s approval rating is now above 50 percent; actually, it’s closer to 60 percent. And the Legislature is more popular, too. (Although ratings of the state Leg, like ratings of Congress, are pretty bogus — I may think the Legislature as a whole is doing a crappy job, because there are too many conservatives, but I think my own Assemblymember, Tom Ammiano, and my own state Senator, Mark Leno, are excellent. Republicans feel the opposite way. Nobody likes the body as a whole, because the body as a whole will never be liberal enough for me or conservative enough for Orange County.)

So here’s the question:

In politics, one of the things you do is build capital. You build it with your reputation, by doing things well (or at least things that make some group of constituents happy). You can’t keep it in the bank forever, or it gets stale and eventually starts to fade away; at some point, you have to use it.

The typical younger politician builds capital for future races — you get high marks as a city council member or county supervisor and you cash in some of that to get elected to the state Leg, then maybe to statewide office or Congress. But our guv isn’t typical in any way, and he’s not young; he might have one more term in office, which at this point he would win easily if he seeks it. But that’s almost certainly the end of the line. For better or for worse, I just don’t see a President Jerry Brown in our future.

So what’s he going to do with his political capital? What are the Democrats in the state Leg, who finally have the confidence of the voters, going to do?

If Jer thinks he’s going to build a couple of giant tunnels under the Delta to move more water south, he’s even battier that we think; that’s never going to happen. The entire environmental world is against it, it’s way too expensive, it will wind up getting delayed by lawsuits until long after Brown is out of office, and there’s no guarantee a future governor will keep Jerry’s Big Dig alive.

He’s got high-speed rail, a much better use of money that has widespread support, but that’s also a long-term project.

So what about reforming Prop. 13? He knows it’s a policy disaster. It’s not going to be repealed, but with the governor’s support, a split-role measure or some other credible reforms could transform local government and do more for the public schools than any pointed-headed “education reform” plan will ever do.

Or single-payer health care. Everyone knows that California’s getting screwed by the insurance industry. We have to write new rules for implementing Obamacare anyway. Twice, the state Leg has passed single-payer bills that were vetoed by the governor (not this governor).

It’s actually possible to lead the way to some changes that people will remember for decades. Jerry: You won’t get this chance again.

 

 

 

 

The downside of Jerry Brown’s budget

9

The guv is quite proud of his new budget: He’s eliminated the chronic deficits, he’s giving some more money to the schools, and he’s vowing that the state will live “within its means.” Which sounds like no more taxes. And gee, just about everyone in Sacramento is singing Kumbaya; the praise is coming not just from Democrats but from Republicans.

But there’s a downside to the Brown budget: He has, to his credit, stopped the red ink, and he’s presenting things in a brilliant way that makes him look like the grownup the state has needed for many years — but he’s doing very little to replace the the money that services for the poor have lost in the past five years.

“At first blush, it has some good things,” Assemblymember Tom Ammiano told me. “But I don’t see restoration of the cuts for the disenfranchised.”

Ammiano is calling for closing Prop. 13 loopholes and passing an oil severance tax as part of the budget process. And with Democrats holding a two-thirds majority in both houses, those kinds of changes are possible. At the very least, it seems, the progressives ought to demand from Brown a plan to backfill what social service providers have lost. If it can’t all happen this year, it ought to be part of the future budget process.

State Sen. Mark Leno, who chairs the Senate Budget Commitee, was a bit more politic than Ammiano, but he also is concerned that the budget move the state forward:

“With the improvement of our fiscal outlook comes the opportunity to continue our work to restore California. While our recent efforts have focused largely on making cuts in the least harmful manner possible, we will now have more capacity to refine our work to improve essential programs and analyze the role of government and its effectiveness. I look forward to working with Governor Brown and my colleagues in the Legislature to evaluate this year’s budget to help ensure it is the best possible plan for a state on the mend.”

On the mend is right — because the state of California is in way worse shape than it was when Arnold Schwarzenegger took over and screwed things up, and the goal shoudn’t be to keep at a steady state that’s unacceptable. It ought to be returning California to its role as a leader in progressive policy. Sorry, Jerry: A balanced budget alone isn’t good enough.

Oh, and Californians United for a Reponsible Budget, which seeks to cut prison spending, points out that this budget is hardly tough on the bloated corrections budget:

The administration has deserted plans to shrink California’s over-sized prison population, ignoring clear messages from voters. The proposed budget increases prison spending $250 million including a $52 million General Fund increase, bringing the total Corrections budget over $11 billion. Despite the passage of Prop. 36 and continuing realignment,  It also projects an increase in the prison population by 2,262 people over the 2012 Budget Act projections. ”If the Governor believes that ‘we can’t pour more and more dollars down the rat hole of incarceration’ then why is he increasing spending on Corrections, planning for more prisoners rather than fewer and defying the demands of the Federal Court and the voters to further shrink the prison system?” asked Diana Zuñiga, Field Organizer for Californians United for a Responsible Budget.

It’s no surprise that the prison guards’ union is happy.

UPDATE: An analysis by Ammiano’s office shows a few other lowlights of the budget: It reduced AIDS Drug Assistance Program money by $16.9 million. It doesn’t restore any of the deep cuts to the state’s Welfare to Work Program. It cuts community college funding by tying state money to student completion, not student enrollment. It offers no additional funding for child care programs. It caps the number of courses students are allowed to take if they want to receive Cal Grants.

The Leg needs to take a hard look at this before it signs off on all these cuts.

Willie Brown is so full of shit on Prop. 13

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The Chron’s conflict-laden columnist made an interesting admission Dec. 9: The multibillion-dollar tax loophole that allows corporations to avoid reassessments under Prop. 13 was all his fault:

 After voters approved Prop. 13 in 1978, capping property taxes for landowners, we had to sit down in the Legislature and figure out how to implement it. One of the biggest questions was how and when properties could be reassessed. We decided that should happen whenever a property was “transferred.” When you sold your home, it was transferred to someone else. The home was reassessed, and the taxes for the buyer were increased accordingly. What we did not realize was that corporations don’t actually transfer property – they transfer the stock in the company that owns the property. And Prop. 13 didn’t apply to stock.

Wait: In 1978, Brown (a lawyer) and the office of the Legislative Counsel and the rest of the lawyer-heavy Legislature didn’t know how corporations transfer property? It was all a big mistake? There were no corporate lobbyists in Sacramento trying to make sure that the loophole was created? Just the poor undereducated elected officials who got snookered by their own lack of information?

And remember: That was 1978. Brown was elected Speaker of the Assembly in 1980, and served for 14 years. Somewhere during that era, someone must have noticed what was going on (every county assessor in California did). There was ample opportunity to close that loophole, if the immensely powerful Speaker Brown had any desire to do so.

But somehow, it never happened. Funny thing, that.

So now Brown agrees that this problem should be fixed — but he says the person carrying the bill, Assemblymember Tom Ammiano, shouldn’t be doing the work because he’s too liberal and pro-tax. Which is either stupidity (and Brown’s many things, but normally stupid isn’t one of them) or he’s still bitter that Ammiano forced him into a mayoral runoff in 1999 and lead the rebellion that ousted all of the mayor’s loyal supervisors a year later. Vindictive? Yeah, we’ve heard that about Willie Brown.

“He doesn’t even understand the history of the bill,” Ammiano told me. “I introduced it last year and got it out of committee and to the floor, which was a miracle.” And now, with a two-thirds majority in both houses, the Democrats can approve it without the Republican minority veto.

“I have cosponsors and I’m going to get more,” Ammiano said. “We may be able to make it part of the budget process.”

And since local governments all over the state, and anyone who believes in tax fairness, is going to support this, I think it’s got a pretty good chance of getting to the desk of the governor.

Willie Brown, as is his practice, didn’t return my call seeking comment.

 

Could we really fix Prop. 13?

17

Is it really possible? Could California be on the path to repair the damage of Prop. 13? Would Jerry go along?

You wouldn’t think so — it’s been talked about for so long and so little has happened. But it’s an all new year in Sacramento, and the era of Republican dominancy-by-minority is over (in fact, the era when Republicans will have any role at all in state government is pretty much over), and already, some changes are in the works.

Assemblymember Tom Ammiano notes:

 “Prop. 13 is not the untouchable third-rail anymore. It’s more like the bad guy with the mustache who has tied California to the rails with the fiscal train wreck coming.”

Ammiano is introducing legislation to change the way Prop. 13 is interpreted — to stop corporations for using loopholes to get around paying higher taxes after commercial property changes hands. But the polls now suggest the voters might be willing to do more — the Public Policy Institute suggests that a sizable majority of Californians would like to see a split-role measure approved. That alone would provide billions of dollars in revenue for public schools.

By a 57-36% margin, voters responded positively when asked this question: Under Proposition 13, residential and commercial property taxes are both strictly limited. What do you think about having commercial properties taxed according to their current market value? Do you favor or oppose this proposal? Democrats favor the idea 66-26% and independents like the prospect 58-36%. Even Republicans are evenly divided 47-48%. Voters aged 18-34, who represent the future, favor the idea 65-28% but the idea is also popular among the most reliable voters, those 55 and older, by 56-39%. Splitting the tax roll is a popular idea in every region of the state, among men and women equally and especially among Asians (65-26%) and Latinos (58-36%) but also among whites (56-38%).

Now: That’s before the commercial property industry and every major landowning corporation in the state pours about $50 million into a campaign to defeat any whisper of a split-roll. But we all know that big-money campaigns don’t always win in California — and right now, the guv is a pretty popular guy. So if he got behind a split-roll measure, and every progressive and labor group in the state (and most local elected officials) did, too, it would be at the very least a level playing field.

That, alone, would change California more than anything else the Legislature or the governor could do. It’s out there; it’s possible. I wouldn’t try in 2013, but 2014 is looking pretty good.

 

District surprises

1

tredmond@sfbg.com

EDITOR’S NOTES The Wall Street Journal, which ought to focus on stellar reporting and skip the political analysis, stuck its haughty little nose into California last week, announcing that the Democratic supermajorities in the state Legislature spell doom for us all.

“Liberals,” the paper noted, “will pick up enough seats to secure a supermajority. Governor Jerry Brown then will be the only chaperone for the Liberals Gone Wild video that is Sacramento.”

I guess I go to the wrong parties, but I’ve never seen that movie. In fact, a lot of the Dems in Sacramento would have to cough and gasp a bit to call themselves “liberals,” and that’s on a good day. Frankly, the majority party in the Assembly and Senate tends to be relatively conservative, with many of its members afraid to so much as talk about, say, amending Prop. 13 or legalizing marijuana.

The bigger danger is that the Democrats from the more moderate districts will so fear that loss of their seats that they’ll want to be even more cautious about raising taxes than the Republicans.

See, I don’t think either party quite realizes what happened Nov. 6 in California, and what it means for the future.

This election wasn’t an anomaly. It wasn’t a miraculous twist of fate driven by high Obama turnout or by labor’s GOTV efforts to defeat Prop. 32. It was the inevitable result of two forces — the demographic changes in the electoral map of this state, and the utter, complete collapse of the California Republican Party. Neither one is about to change any time soon.

For decades, the GOP has focused on older, white, suburban voters, and there was a time when that strategy worked. But the future of the state is younger, non-white urban voters who are less frightened by crime, less xenophobic about immigration, less likely to have kids in private schools, and largely uninterested in the traditional Republican social issues.

Brian Leubitz, the insightful blogger at Calitics.com, notes that almost 30 percent of the people who went to the polls Nov. 6 were between 18 and 29 years old. “The California GOP, like the greater national party, has lost young voters,” he writes. “If it hopes to return to a semblance of a statewide party, it will need to moderate itself back into a party that accurately represents some portion of California’s electorate.”

How likely is that? Anyone want to bet that the GOP is going to reject the Howard Jarvis Taxpayers Association the right-wing radio guys in Los Angeles and start promoting immigration reform and an overhaul of Prop. 13? You’ll have to give me pretty long odds.

No: The era of Democratic supermajorities in the California Legislature is here to stay for a while, and the Dems might as well use it. No need to be afraid of a backlash; there’s nothing out there to lash back with. The only real danger is that Democrats and independents will be so disappointed in the Legislature’s failure to act on the huge issues facing the state that they’ll stay home in two years.

Why not talk about a split-role property tax program? Why not an oil-severance tax? Why not let local government raise local taxes without a two-thirds majority? The Wall Street Journal can whine all it wants, but it can’t change reality — right now, the Democrats are the only game in town.

 

Editor’s notes

0

tredmond@sfbg.com

EDITOR’S NOTES The Wall Street Journal, which ought to focus on stellar reporting and skip the political analysis, stuck its haughty little nose into California last week, announcing that the Democratic supermajorities in the state Legislature spell doom for us all.

“Liberals,” the paper noted, “will pick up enough seats to secure a supermajority. Governor Jerry Brown then will be the only chaperone for the Liberals Gone Wild video that is Sacramento.”

I guess I go to the wrong parties, but I’ve never seen that movie. In fact, a lot of the Dems in Sacramento would have to cough and gasp a bit to call themselves “liberals,” and that’s on a good day. Frankly, the majority party in the Assembly and Senate tends to be relatively conservative, with many of its members afraid to so much as talk about, say, amending Prop. 13 or legalizing marijuana.

The bigger danger is that the Democrats from the more moderate districts will so fear that loss of their seats that they’ll want to be even more cautious about raising taxes than the Republicans.

See, I don’t think either party quite realizes what happened Nov. 6 in California, and what it means for the future.

This election wasn’t an anomaly. It wasn’t a miraculous twist of fate driven by high Obama turnout or by labor’s GOTV efforts to defeat Prop. 32. It was the inevitable result of two forces — the demographic changes in the electoral map of this state, and the utter, complete collapse of the California Republican Party. Neither one is about to change any time soon.

For decades, the GOP has focused on older, white, suburban voters, and there was a time when that strategy worked. But the future of the state is younger, non-white urban voters who are less frightened by crime, less xenophobic about immigration, less likely to have kids in private schools, and largely uninterested in the traditional Republican social issues.

Brian Leubitz, the insightful blogger at Calitics.com, notes that almost 30 percent of the people who went to the polls Nov. 6 were between 18 and 29 years old. “The California GOP, like the greater national party, has lost young voters,” he writes. “If it hopes to return to a semblance of a statewide party, it will need to moderate itself back into a party that accurately represents some portion of California’s electorate.”

How likely is that? Anyone want to bet that the GOP is going to reject the Howard Jarvis Taxpayers Association the right-wing radio guys in Los Angeles and start promoting immigration reform and an overhaul of Prop. 13? You’ll have to give me pretty long odds.

No: The era of Democratic supermajorities in the California Legislature is here to stay for a while, and the Dems might as well use it. No need to be afraid of a backlash; there’s nothing out there to lash back with. The only real danger is that Democrats and independents will be so disappointed in the Legislature’s failure to act on the huge issues facing the state that they’ll stay home in two years.

Why not talk about a split-role property tax program? Why not an oil-severance tax? Why not let local government raise local taxes without a two-thirds majority? The Wall Street Journal can whine all it wants, but it can’t change reality — right now, the Democrats are the only game in town.

 

Is the tax revolt over?

46

The most optimistic piece I’ve read on the results of the November election is on Calitics, where Robert Cruikshank argues that the tax revolt that started with Prop. 13 in 1978 is finally over.

And while there is still a lot of work ahead to overturn the legal and constitutional legacies of the tax revolt, it no longer has political power. That in turn means the California Republican Party, and the California conservative movement, are as dead as Monty Python’s parrot.

That’s a pretty sweeping statement for a fairly modest tax package supported by the same governor who called himself a born-again tax-cutter in the wake of Prop. 13. But Cruikshank makes a good point:

This victory over the tax revolt happened because of years of progressive organizing against further tax cuts and for tax increases. Progressive voices and organizations completely rejected the post-1978 Democratic logic that the tax revolt had to be appeased. Instead, we insisted that the tax revolt had to be confronted and defeated. With Prop 30 that’s exactly what happened.

I know the Democrats in the Legislature are going to be nervous about more tax hikes, particularly since the two-thirds majority includes some folks from pretty conservative districts who are going to be scared of “overreaching.” But it’s not just about general tax hikes; we got one this year, and we may not get another. It’s about all of the long list of tax loopholes that art on the books that take a two-thirds majority to undo. It’s about a budget that includes addition as well as subtraction. And it’s about not being afraid to say that investment in the state has economic value.

Maybe the Dems don’t have to be afraid; maybe this two-thirds majority isn’t an anomaly and isn’t going to change. Maybe the state is getting so much more Democratic that supermajorities are the way of the future and people are sick of the GOP no-new-taxes nonsense. Maybe (as I’ve long said with same-sex marriage) it’s part of an inevitable demographic change:

Many of those angry white suburbanites convinced that people of color and their liberal allies were going to destroy their suburban paradise have left California, either by relocation or by the intervention of the Grim Reaper. In their place has grown up a native-born population that is diverse, that isn’t ideologically wedded to car-centric postwar suburbs, and that rejected the “I’ve got mine, screw you” mentality of Howard Jarvis.

In which case we really can start turning this state around.

Demos control Sacramento. Completely.

51

The sleeper in this election is the apparent supermajority for the Democrats in both houses of the Legislature. This is huge news, if it holds; for the first time since the passage of Prop. 13 in 1978, which mandated a two-thirds vote to raise taxes, it’s actually possible to govern and set fiscal policy without the no-taxes-ever-no-way Republicans being obstructionist.

In fact, as the Chron points out, Republicans would be essentially irrelevant in Sacramento.

That doesn’t mean everything’s just fine and dandy in the Legislature — the moderate-to-conservative Dems are sometimes as bad as the Republicans. But it means that if the Democratic leadership can craft a sane budget plan that raises some taxes (beyond what Gov. Brown did with Prop. 30), there’s a chance it could actually pass and the state could get back on track.

Of course, that assumes the governor will be on board, and he may not. Brown promised that he would never raise taxes without a vote of the people, and he got his vote, and it was close, and I bet he says: no more. Which is a problem, because Prop. 30, while absolutely necessary to keep California from falling off a cliff, only stabilizes the state’s revenue situation. It does nothing to restore the billions in cuts that have been made in the past decade and doesn’t even begin to put the state in a position to invest in, say, new education initiatives.

This could be a profound moment, a chance to make the state great again (and in the process, prove what can happen if you get rid of the minority-rule that’s crippled the Legislature for decades). It’s too great an opportunity to miss.

Endorsements 2012: San Francisco propositions

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PROPOSITION A

CITY COLLEGE PARCEL TAX

YES

The scathing accreditation report by the Western Association of Schools talks about governance problems at the San Francisco Community College District — a legitimate matter of concern. But most of what threatens the future of City College is a lack of money.

Check out the accreditation letter; it’s on the City College website. Much of what it says is that the school is trying to do too much with limited resources. There aren’t enough administrators; that’s because, facing 20 percent cuts to its operating budget, the college board decided to save front-line teaching jobs. Student support services are lacking; that’s because the district can barely afford to keep enough classes going to meet the needs of some 90,000 students. On the bigger picture, WASC and the state want City College to close campuses and concentrate on a core mission of offering two-year degrees and preparing students to transfer to four-year institutions. That’s because the state has refused to fund education at an adequate level, and there’s not enough money to both function as a traditional junior college and serve as the training center for San Francisco’s tech, hospitality and health-care industry, provide English as a second language classes to immigrants and offer new job skills and rehabilitation to the workforce of the future.

It’s fair to say that WASC would have found some problems at City College no matter what the financial situation (and we’ve found more — the nepotism and corruption under past boards has been atrocious). But the only way out of this mess is either to radically scale back the school’s mission — or to increase its resources. We support the latter alternative.

Prop. A is a modest parcel tax — $79 dollars a year on each property lot in the city. Parcel taxes are inherently unfair — a small house in Hunters Point pays as much as a mansion in Pacific Heights or a $500 million downtown office building. But that’s the result of Prop. 13, which leaves the city very few ways to raise taxes on real property. In the hierarchy of progressive tax options, parcel taxes are better than sales taxes. And the vast majority of San Francisco homeowners and commercial property owners get a huge benefit from Prop. 13; a $6 a month additional levy is hardly a killer.

The $16 million this tax would raise annually for the district isn’t enough to make up for the $25 million a year in state budget cuts. But at least the district would be able to make reasonable decisions about preserving most of its mission. This is one of the most important measures on the ballot; vote yes.

PROPOSITION B

PARKS BOND

YES

There are two questions facing the voters: Does the San Francisco Recreation and Parks Department need money to fix up badly decrepit, sometimes unsafe facilities, and build out new park areas, particularly in underserved neighborhoods? Has the current administration of the department so badly mismanaged Rec-Park, so radically undermined the basic concept of public access to public space, so utterly alienated neighborhoods and communities all over the city, that it shouldn’t be trusted with another penny?

And if your answer to both is yes, how the hell do you vote on Prop. B?

It’s a tough one for us. The Guardian has never, in 46 years, opposed a general obligation bond for anything except jail or prisons. Investing in public infrastructure is a good thing; if anything, the cautious folks at City Hall, who refuse to put new bonds on the ballot until old ones are paid off, are too cautious about it. Spending public money (paid by increased property taxes in a city where at least 90 percent of real estate is way under taxed thanks to Prop. 13) creates jobs. It’s an economic stimulus. It adds to the value of the city’s resources. In this case, it fixes up parks. All of that is good; it’s hard to find a credible case against it.

Except that for the past few years, under the administrations of Mayors Gavin Newsom and Ed Lee and the trusteeship of Rec-Park Directors Jared Blumenfeld and Phil Ginsburg, the city has gone 100 percent the wrong way. Parks are supposed to be public resources, open to all; instead, the department has begun charging fees for what used to be free, has been turning public facilities over to private interests (at times kicking the public out), and has generally looked at the commons as a source of revenue. It’s a horrible precedent. It makes us sick.

Ginsburg told us that he’s had no choice — deep budget cuts have forced him to look for money wherever he can find it, even if that means privatizing the parks. But Ginsburg also admitted to us that, even as chief of staff under Newsom, he never once came forward to push for higher taxes on the wealthy, never once suggested that progressive revenue sources might be an option. Nor did any of the hacks on the Rec-Park Commission. Instead, they’ve been busy spending tens of thousands of dollars on an insane legal battle to evict the Haight Ashbury Neighborhood Council’s recycling center — entirely because rich people in the Haight don’t want poor people coming through their elite neighborhood to cash in bottles and cans for a little money.

So now we’re supposed to cough up another $195 million to enable more of this?

Well, yes. We’re not happy to be endorsing Prop. B, but the bottom line is simple: The bond money will go for things that need to be done. There are, quite literally, parks in the city where kids are playing in unsafe and toxic conditions. There are rec centers that are pretty close to falling apart. Those improvements will last 50 years, well beyond the tenure of this mayor of Rec-Park director. For the long-term future of the park system, Prop. B makes sense.

If the measure fails, it may send Lee and Ginsburg a message. The fact that so many neighborhood leaders are opposing it has already been a signal — one that so far Ginsburg has ignored. We’re going Yes on B, with all due reservations. But this commission has to go, and the sooner the supervisors can craft a charter amendment to give the board a majority of the appointments to the panel the better.+

PROPOSITION C

AFFORDABLE HOUSING TRUST FUND

YES

This measure is about who gets to live in San Francisco and what kind of city this will be in 20 years. If we leave it up to market forces and the desires of developers, about 85 percent of the housing built in San Francisco will be affordable only by the rich, meaning the working class will be forced to live outside the city, clogging regional roadways and transit systems and draining San Francisco of its cultural diversity and vibrancy. And that process has been accelerated in recent years by the latest tech bubble, which city leaders have decided to subsidize with tax breaks, causing rents and home prices to skyrocket.

Mayor Ed Lee deserves credit for proposing this Housing Trust Fund to help offset some of that impact, even if it falls way short of the need identified in the city’s Housing Element, which calls for 60 percent of new housing construction to be affordable to prevent gentrification. We’re also not thrilled that Prop. C actually reduces the percentage of housing that developers must offer below market rates and prevents that 12 percent level from later being increased, that it devotes too much money to home ownership assistance at the expense of the renters who comprise the vast majority of city residents, and that it depends on the passage of Prop.E and would take $15 million from the increased business taxes from that measure, rather than restoring years of cuts to General Fund programs.

But Prop. C was a hard-won compromise, with the affordable housing folks at the table, and they got most of what they wanted. (Even the 12 percent has a long list of exceptions and thus won’t apply to a lot of new market-rate housing.) And it has more chance of actually passing than previous efforts that were opposed by the business community and Mayor’s Office. This measure would commit the city to spending $1.5 billion on affordable housing projects over the next 30 years, with an initial $20 million annual contribution steadily growing to more than $50 million annually by 2024, authorizing and funding the construction of 30,000 new rental units throughout the city. With the loss of redevelopment funds that were devoted to affordable housing, San Francisco is a city at risk, and passage of Prop. C is vital to ensuring that we all have a chance of remaining here. Vote yes.

PROPOSITION D

CONSOLIDATING ODD-YEAR LOCAL ELECTIONS

YES

There’s a lot of odd stuff in the San Francisco City Charter, and one of the twists is that two offices — the city attorney and the treasurer — are elected in an off-year when there’s nothing else on the ballot. There’s a quaint kind of charm to that, and some limited value — the city attorney is one of the most powerful officials in local government, and that race could get lost in an election where the mayor, sheriff, and district attorney are all on the ballot.

But seriously: The off-year elections have lower turnout, and cost the city money, and it’s pretty ridiculous that San Francisco still does it this way. The entire Board of Supervisors supports Prop. D. So do we. Vote yes.

PROPOSITION E

GROSS RECEIPTS TAX

YES

Over the past five years, Board of Supervisors President David Chiu estimates, San Francisco has cut about $1.5 billion from General Fund programs. It’s been bloody, nasty, awful. The budget reductions have thrown severely ill psych patients out of General Hospital and onto the streets. They’ve forced the Recreation and Parks Department to charge money for the use of public space. They’ve undermined everything from community policing to Muni maintenance.

And now, as the economy starts to stabilize a bit, the mayor wants to change the way businesses are taxed — and bring an additional $28.5 million into city coffers.

That’s right — we’ve cut $1.5 billion, and we’re raising taxes by $28.5 million. That’s less than 2 percent. It’s insane, it’s inexcusable, it’s utterly the wrong way to run a city in 2012. It might as well be Mitt Romney making the decision — 98 percent cuts, 2 percent tax hikes.

Nevertheless, that’s where we are today — and it’s sad to say this is an improvement from where the tax discussion started. At first, Mayor Lee didn’t want any tax increase at all; progressive leaders had to struggle to convince him to allow even a pittance in additional revenue.

The basic issue on the table is how San Francisco taxes businesses. Until the late 1990s, the city had a relatively rational system — businesses paid about 1.5 percent of their payroll or gross receipts, whichever was higher. Then 52 big corporations, including PG&E, Chevron, Bechtel, and the Gap, sued, arguing that the gross receipts part of the program was unfair. The supervisors caved in to the legal threat and repeal that part of the tax system — costing the city about $30 million a year. Oh, but then tech companies — which have high payrolls but often, at least at first, low gross receipts — didn’t want the payroll tax. The same players who opposed the other tax now called for its return, arguing that taxing payroll hurts job growth (which is untrue and unfounded, but this kind of dogma doesn’t get challenged in the press). So, after much discussion and debate, and legitimate community input, the supervisors unanimously approved Prop. E — which raises a little more money, but not even as much as the corporate lawsuit in the 1990s set the city back. It’s not a bad tax, better than the one we have now — it brings thousands of companies the previously paid no tax at all into the mix (sadly, some of them small businesses). It’s somewhat progressive — companies with higher receipts pay a higher rate. We can’t argue against it — the city will be better off under Prop. E than it is today. But we have to look around our battered, broke-ass city, shake our poor bewildered heads and say: Is this really the best San Francisco can do? Sure, vote yes on E. And ask yourself why one of the most liberal cities in America still lets Republican economic theory drive its tax policy.

PROPOSITION F

WATER AND ENVIRONMENT PLAN

NO, NO, NO

Reasonable people can disagree about whether San Francisco should have ever dammed the Tuolumne River in 1923, flooding the Hetch Hetchy Valley and creating an engineering marvel that has provided the city with a reliable source of renewable electricity and some of the best urban drinking water in the world ever since. The project broke the heart of famed naturalist John Muir and has caused generations since then to pine for the restoration of a valley that Muir saw as a twin to his beloved nearby Yosemite Valley.

But at a time when this country can’t find the resources to seriously address global warming (which will likely dry up the Sierra Nevada watershed at some point in the future), our deteriorating infrastructure, and myriad other pressing problems, it seems insane to even consider spending billions of dollars to drain this reservoir, restore the valley, and find replacement sources of clean water and power.

You can’t argue with the basic facts: There is no way San Francisco could replace all the water that comes in from Hetch Hetchy without relying on the already-fragile Delta. The dam also provides 1.7 billion kilowatt hours a year of electric power, enough to meet the needs of more than 400,000 homes. That power now runs everything from the lights at City Hall to Muni, at a cost of near zero. The city would lose 42 percent of its energy generation if the dam went away.

Besides, the dam was, and is, the lynchpin of what’s supposed to be a municipal power system in the city. As San Francisco, with Clean Power SF, moves ever close to public power, it’s insane to take away this critical element of any future system.

On its face, the measure merely requires the city to do an $8 million study of the proposal and then hold a binding vote in 2016 that would commit the city to a project estimated by the Controller’s Office to cost somewhere between $3 billion and $10 billion. Yet to even entertain that possibility would be a huge waste of time and money.

Prop. F is being pushed by a combination of wishful (although largely well-meaning) sentimentalists and disingenuous conservatives like Dan Lungren who simply want to fuck with San Francisco, but it’s being opposed by just about every public official in the city. Vote this down and let’s focus our attention on dealing with real environmental and social problems.

PROPOSITION G

CORPORATE PERSONHOOD

YES

If San Francisco voters pass Prop. G, it won’t put any law into effect. It’s simply a policy statement that sends a message: Corporations are not people, and it’s time for the federal government to tackle the overwhelming and deeply troubling control that wealthy corporations have over American politics.

Prop. G declares that money is not speech and that limits on political spending improve democratic processes. It urges a reversal of the notorious Citizens United vs. Federal Elections Commission Supreme Court decision.

A constitutional amendment, and any legal messing with free speech, has serious potential problems. If corporations are limited from spending money on politics, could the same apply to unions or nonprofits? Could such an amendment be used to stop a community organization from spending money to print flyers with political opinions?

But it’s a discussion that the nation needs to have, and Prop. G is a modest start. Vote yes.

Endorsements 2012: State and national races

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National races

PRESIDENT

BARACK OBAMA

You couldn’t drive down Valencia Street on the evening of Nov. 4, 2008. You couldn’t get through the intersection of 18th and Castro, either. All over the east side of the city, people celebrating the election of Barack Obama and the end of the Bush era launched improptu parties, dancing and singing in the streets, while the cops stood by, smiling. It was the only presidential election in modern history that create such an upwelling of joy on the American left — and while we were a bit more jaded and cautious about celebrating, it was hard not to feel a sense of hope.

That all started to change about a month after the inauguration, when word got out that the big insurance companies were invited to be at the table, discussing health-care reform — and the progressive consumer advocates were not. From that point on, it was clear that the “change” he promised wasn’t going to be a fundamental shift in how power works in Washington.

Obama didn’t even consider a single-payer option. He hasn’t shut down Guantanamo Bay. He hasn’t cut the Pentagon budget. He hasn’t pulled the US out of the unwinnable mess in Afghanistan. He’s been a huge disappointment on progressive tax and economic issues. It wasn’t until late this summer, when he realized he was facing a major enthusiasm gap, that he even agreed to endorse same-sex marriage.

But it’s easy to trash an incumbent president, particularly one who foolishly thought he could get bipartisan support for reforms and instead wound up with a hostile Republican Congress. The truth is, Obama has accomplished a fair amount, given the obstacles he faced. He got a health-care reform bill, weak and imperfect as it was, passed into law, something Democrats have tried and failed at since the era of FDR. The stimulus, weak and limited as it was, clearly prevented the recession from becoming another great depression. His two Supreme Court appointments have been excellent.

And the guy he’s running against is a disaster on the scale of G.W. Bush.

Mitt Romney can’t even tell the truth about himself. He’s proven to be such a creature of the far-right wing of the Republican Party that it’s an embarrassment. A moderate Republican former governor of Massachusetts could have made a credible run for the White House — but Romney has essentially disavowed everything decent that he did in his last elective office, has said one dumb thing after another, and would be on track to be one of the worse presidents in history.

We get it: Obama let us down. But there’s a real choice here, and it’s an easy one. We’ll happily give a shout out to Jill Stein, the candidate of the Green Party, who is talking the way the Democrats ought to be talking, about a Green New Deal that recognizes that the richest nation in the history of the world can and should be doing radically better on employment, health care, the environment, and economic justice. And since Obama’s going to win California by a sizable majority anyway, a protest vote for Stein probably won’t do any harm.

But the next four years will be a critical time for the nation, and Obama is at least pushing in the direction of reality, sanity and hope. We endorsed him with enthusiasm four year ago; we’re endorsing him with clear-eyed reality in 2012.

UNITED STATES SENATE

DIANNE FEINSTEIN

Ugh. Not a pleasant choice here. Elizabeth Emken is pretty much your standard right-wing-nut Republican out of Danville, a fan of reducing government, cutting regulations, and repealing Obamacare. Feinstein, who’s already served four terms, is a conservative Democrat who loves developers, big business, and the death penalty, is hawkish on defense, and has used her clout locally to push for all the wrong candidates and all the wrong things. She can’t even keep her word: After Willie Brown complained that London Breed was saying mean things about him, Feinstein pulled her endorsement of Breed for District 5 supervisor.

It’s astonishing that, in a year when the state Democratic Party is aligned behind Proposition 34, which would replace the death penalty with life without parole, Feinstein can’t find it in herself to back away from her decades-long support of capital punishment. She’s not much better on medical marijuana. And she famously complained when then-mayor Gavin Newsom pushed same-sex marriage to the forefront, saying America wasn’t ready to give LGBT couples the same rights as straight people.

But as chair of the Senate Intelligence Committee, Feinstein was pretty good about investigating CIA torture and continues to call for the closure of Guantanamo Bay. She’s always been rock solid on abortion rights and at least decent, if not strong, on environmental issues.

It’s important for the Democrats to retain the Senate, and Feinstein might as well be unopposed. She turns 80 next year, so it’s likely this will be her last term.

HOUSE OF REPRESENTATIVES, DISTRICT 8

NANCY PELOSI

The real question on the minds of everyone in local politics is what will happen if the Democrats don’t retake the House and Pelosi has to face two more years in the minority. Will she serve out her term? Will her Democratic colleagues decide they want new leadership? The inside scuttle is that Pelosi has no intention of stepping down, but a long list of local politicians is looking at the once-in-a-lifetime chance to run for a Congressional seat, and it’s going to happen relatively soon; Pelosi is 72.

We’ve never been happy with Rep. Pelosi, who used the money and clout of the old Burton machine to come out of nowhere to beat progressive gay supervisor Harry Britt for the seat in 1986. Her signature local achievement is the bill that created the first privatized national park in the nation’s history (the Presidio), which now is home to a giant office complex built by filmmaker George Lucas with the benefit of a $60 million tax break. She long ago stopped representing San Francisco, making her move toward Congressional leadership by moving firmly to the center.

But as speaker of the House, she was a strong ally for President Obama and helped move the health-care bill forward. It’s critical to the success of the Obama administration that the Democrats retake the house and Pelosi resumes the role of speaker.

HOUSE OF REPRESENTATIVES, DISTRICT 9

BARBARA LEE

Barbara Lee represents Berkeley and Oakland in a way Nancy Pelosi doesn’t represent San Francisco. She’s been a strong, sometimes lonely voice against the wars in Iraq and Afghanistan and a leader in the House Progressive Caucus. While Democrats up to and including the president talk about tax cuts for businesses, Lee has been pushing a fair minimum wage, higher taxes on the wealthy, and an end to subsidies for the oil industry. While Oakland Mayor Jean Quan was struggling with Occupy, and San Francisco Mayor Ed Lee was moving to evict the protesters, Barbara Lee was strongly voicing her support for the movement, standing with the activists, and talking about wealth inequality. We’re proud to endorse her for another term.

HOUSE OF REPRESENTATIVES, DISTRICT 12

JACKIE SPEIER

Speier’s an improvement on her predecessor, Tom Lantos, who was a hawk and terrible on Middle East policy. Speier’s a moderate, as you’d expect in this Peninsula seat, but she’s taken the lead on consumer privacy issues (as she did in the state Legislature) and will get re-elected easily. She’s an effective member of a Bay Area delegation that helps keep the House sane, so we’ll endorse her for another term.

State candidates

ASSEMBLY DISTRICT 13

TOM AMMIANO

Tom Ammiano’s the perfect person to represent San Francisco values in Sacramento. He helped sparked and define this city’s progressive movement back in the 1970s as a gay teacher marching alongside with Harvey Milk. In 1999, his unprecedented write-in mayoral campaign woke progressives up from some bad years and ushered in a decade with a progressive majority on the Board of Supervisors that approved landmark legislation such as the universal healthcare program Ammiano created. In the Assembly, he worked to create a regulatory system for medical marijuana and chairs the powerful Public Safety Committee, where he has stopped the flow of mindless tough-on-crime measures that have overflowed our prisons and overburdened our budgets. This is Ammiano’s final term in the Legislature, but we hope it’s not the end of his role in local politics.

STATE ASSEMBLY, DISTRICT 19

PHIL TING

Phil Ting could be assessor of San Francisco, with a nice salary, for the rest of his life if that’s what he wanted to do. He’s done a good job in an office typically populated with make-no-waves political hacks — he went after the Catholic Church when that large institution tried to avoid paying taxes on property transfers. He’s been outspoken on foreclosures and commissioned, on his own initiative, a study showing that a large percentage of local foreclosures involved at least some degree of fraud or improper paperwork.

But Ting is prepared to take a big cut in pay and accept a term-limited future for the challenge of moving into a higher-profile political position. And he’s the right person to represent this westside district.

Ting’s not a radical leftist, but he is willing to talk about tax reform, particularly about the inequities of Prop. 13. He’s carrying the message to homeowners that they’re shouldering a larger part of the burden while commercial properties pay less. He wants to change some of the loopholes in how Prop. 13 is interpreted to help local government collect more money.

It would be nice to have a progressive-minded tax expert in the Legislature, and we’re glad Ting is the front-runner. He’s facing a serious, well-funded onslaught from Michael Breyer, the son of Supreme Court Justice Breyer, who has no political experience or credentials for office and is running a right-wing campaign emphasizing “old-style San Francisco values.”

Not pretty. Vote for Ting.

SENATE DISTRICT 11

MARK LENO

Mark Leno wasn’t always in the Guardian’s camp, and we don’t always agree with his election season endorsements, but he’s been a rock-solid representative in Sacramento and he has earned our respect and our endorsement.

It isn’t just how he votes, which we consistently agree with. Leno has been willing to take on the tough fights, the ones that need to be fought, and shown the tenacity to come out on top in the Legislature, even if he’s ahead of his time. Leno twice got the Legislature to legalize same-sex marriage, he has repeatedly gotten that body to legalize industrial hemp production, and he’s twice passed legislation that would give San Francisco voters the right to set a local vehicle license fees higher than the state’s and use that money for local programs (which the governor finally signed). He’s also been laying an important foundation for creating a single-payer healthcare system and he played an important role in the CleanPowerSF program that San Francisco will implement next year. Leno will easily be re-elected to another term in the Senate and we look forward to his next move (Leno for mayor, 2015?)

 

BART BOARD DISTRICT 9

 

TOM RADULOVICH

San Francisco has been well represented on the BART Board by Radulovich, a smart and forward-thinking urbanist who understands the important role transit plays in the Bay Area. Radulovich has played leadership roles in developing a plan that aims to double the percentage of cyclists using the system, improving the accessibility of many stations to those with limited mobility, pushing through an admittedly imperfect civilian oversight agency for the BART Police, hiring a new head administrator who is more responsive to community concerns, and maintaining the efficiency of an aging system with the highest ridership levels in its history. With a day job serving as executive director of the nonprofit Livable City, Radulovich helped create Sunday Streets and other initiatives that improve our public spaces and make San Francisco a more inviting place to be. And by continuing to provide a guiding vision for a BART system that continues to improve its connections to every corner of the Bay Area, his vision of urbanism is helping to permeate communities throughout the region

BART BOARD, DISTRICT 7

ZACHARY MALLETT

This sprawling district includes part of southeast San Francisco and extends all the way up the I-80 corridor to the Carquinez Bridge. The incumbent, San Franciscan Lynette Sweet, has been a major disappointment. She’s inaccessible, offers few new ideas, and was slow to recognize (much less deal with) the trigger-happy BART Police who until recently had no civilian oversight. Time for a change.

Three candidates are challenging Sweet, all of them from the East Bay (which makes a certain amount of sense — only 17 percent of the district’s population is in San Francisco). Our choice is Zachary Mallett, whose training in urban planning and understanding of the transit system makes up for his lack of political experience.

Mallett’s a graduate of Stanford and UC Berkelely (masters in urban planning with a transportation emphasis) who has taken the time to study what’s working and what isn’t working at BART. Some of his ideas sound a bit off at first — he wants, for example, to raise the cost of subsidized BART rides offered to Muni pass holders — but when you look a the numbers, and who is subsidizing who, it actually makes some sense. He talks intelligently about the roles that the various regional transit systems play and while he’s a bit more moderate than us, particularly on fiscal issues, he’s the best alternative to Sweet.

How Jerry Brown got us here

46

Jerry Roberts, who has long been among the best political reporters in California, has a nice, detailed piece on CalBuzz about Jerry Brown’s history and legacy — and how California got into the mess that the Guv is trying to get us out of. (It’s a nice complement to this Chron interview, in which Ol’ Jer takes us back to his seminary days and tells us how much he loves austerity: “I took vows of poverty, chastity and obedience. I am ready, OK?”

Jesus, Guv — we all know you’re cheap, but “obedience” really isn’t part of your personality. And chastity? For real?

But let’s get back to austerity. Brown is clearly hanging his governorship on Prop. 30, his tax measure, and is happily warning us all that things will really, really suck if it doesn’t pass. Roberts does a good job explaining how Prop. 13 — which a much-younger Jerry opposed before he supported it — laid the groundwork for the state’s endless budget mess be capping local property taxes and giving the state Legislature control over how much money flows to cities and counties.

The one missing element: Arnold Schwarzenegger.

The state budget was never simple, and California schools in particular never recovered from Prop. 13, but Schwarzenegger instantly made things much worse the day he took office in 2003 when he terminated much of the Vehicle License Fee, costing state and local government about $4 billion a year. Schwarzenegger derided the fee as a “car tax,” but it’s actually a fee that keeps counties from assessing cars as personal property. Either way, that’s a huge chunk of money, and while it was popular, it played into the idea that we can have something for nothing — similar to the Bush tax cuts.

So I guess all we can do is quote Jerry:

There is a lot of magical thinking in Washington and in Sacramento and, maybe, I might even say, Western civilization,” he said. “We had it easy and now the moment of truth is upon us. … We’ve got to pay for what we want. And if we don’t want to pay, then we have to deprive ourselves of that which we would like, and it’s very hard to get people to make that choice.”