Billionaires

Endorsements 2010: State ballot measures

25

PROP. 19

LEGALIZE MARIJUANA

YES, YES, YES

The most surprising thing about Prop. 19 is how it has divided those who say they support the legalization of marijuana. Critics within the cannabis community say decriminalization should occur at the federal level or with uniform statewide standards rather that letting cities and counties set their own regulations, as the measure does. Sure, fully legalizing marijuana on a large scale and regulating its use like tobacco and alcohol would be better — but that’s just not going to happen anytime soon. As we learned with the legalization of marijuana for medical uses through Prop. 215 in 1996, there are still regional differences in the acceptance of marijuana, so cities and counties should be allowed to treat its use differently based on local values. Maybe San Francisco wants full-blown Amsterdam-style hash bars while Fresno would prefer far more limited distribution options — and that’s fine.

Other opponents from within marijuana movement are simply worried about losing market share or triggering federal scrutiny of a system that seems to be working well for many. But those are selfish reasons to oppose the long-overdue next step in legalizing adult use of cannabis, a step we need to take even if there is some uncertainty about what comes next. By continuing with prohibition Californians and their demand for pot are empowering the Mexican drug cartels and their violence and political corruption; perpetuating a drug war mentality that is ruining lives, wasting resources, and corrupting police agencies that share in the take from drug-related property seizures; and depriving state and local governments of tax revenue from the California’s number one cash crop.

Bottom line: if there are small problems with this measure, they can be corrected with state legislation that Assemblymember Tom Ammiano has already pledged to carry and that Prop. 19 explicitly allows. But this is the moment and the measure we need to seize to continue making progress in our approach to marijuana in California. Vote yes on Prop. 19.

 

PROP. 20

CONGRESSIONAL DISTRICT REAPPORTIONMENT

NO

Prop. 20 seeks to transfer the power to draw congressional districts from elected officials to the 14-member California Citizens Redistricting Commission, the state agency created in 2008 to draw boundary lines for California state legislative districts and Board of Equalization districts.

Supporters argue that Prop. 20, (which is backed by Charles Munger Jr., the heir to an investment fortune) would create more competitive elections and holds politicians accountable. And indeed, there’s been some funky gerrymandering going on the the state for decades.

But the commission is hardly a fair body — it has the same number of Republicans as Democrats in a state where there are far more Democrats than Republicans. And most states still draw lines the old-fashioned way, so Prop. 20 could give the GOP an advantage in a Democratic state. States like Texas and Florida, notorious for pro-Republican gerrymandering, aren’t planning to change how they do their districts.

That’s why former state Assemblymember John Laird (D-Santa Cruz), who lost his recent bid for the State Senate thanks to gerrymandering and an August special election, calls Prop. 20 “the unilateral disarmament of California.”

It could also create a political mess in San Francisco, Laird said. “An independent commission could end up dividing the city north/south, not east/west. Or it could throw Sen. Mark Leno and Leland Yee into the same district.” Vote no.

 

PROP. 21

VEHICLE LICENSE FEE FOR PARKS

YES

Part of the reason California is in the fiscal crisis it is now facing — underfunding schools, slashing services, and considering selling off state parks — is because Gov. Arnold Schwarzenegger ran for office on a pandering pledge to deeply cut the vehicle license fee, costing the state tens of billions of dollars since then. It was the opposite of what this state should have been doing if it was serious about addressing global warming and other environmental imperatives, not to mention encouraging car drivers to come closer to paying for their full societal impacts, which study after study shows they don’t now do. This measure doesn’t fully correct that mistake, but it’s a start.

Prop. 21 would charge an $18 annual fee on vehicle license registrations and reserve at least half of the $500 million it would generate for state park maintenance and wildlife conservation programs. As an added incentive, the measure would also give cars free entrance to the state parks, a $50 million perk. Of the remaining $450 million, $200 million could be used to back-fill state general fund revenue now going to these functions, which means most of this money would go to parks and wildlife.

We’d rather see funds derived from private car use go to mass transit and other alternatives to the automobile, but we’re not going to quibble with the details on this one. California desperately needs the money, and it’s time for drivers to start giving back some of the money they shouldn’t have been given in the first place.

 

PROP. 22

LOCAL REDEVELOPMENT FUNDS

NO

This one sounds good, on the surface: Prop. 22 would prevent the state from taking money from city redevelopment agencies to balance the budget in Sacramento. But it’s not so simple: Sometimes it actually makes sense to use redevelopment money to fund, say, education — and only the state can do that. Besides, this particular bill only protects cities, not counties — so San Francisco will take even more of a hit in tough times. Vote no.

 

PROP. 23

SUSPENDING AIR POLLUTION CONTROL LAWS

NO, NO, NO

Think of Prop. 23 as a band of right-wing extremists orchestrating a sneak attack on the one hope this country has for removing its head from the tarball-sticky sand and actually doing something, for real this time, about global warming. Assembly Bill 32, California’s Global Warming Solutions Act, imposes enforceable limits on greenhouse gas emissions by 2012 — and now, Big Oil is drilling deep into its pockets in an effort to blow up those limits.

Funded by Texas oil companies Tesoro Corporation and Valero Energy Corporation in conjunction with the Koch brothers, billionaires who have been called the financial backbone of the Tea Party, Prop. 23 would reverse a hard-fought victory by suspending AB32 until unemployment drops to 5.5 percent for four consecutive quarters — not likely to happen anytime soon. In truly sleazy fashion, proponents have dubbed Prop. 23 the “California jobs initiative.”

The environmental arguments for rejecting Prop. 23 are obvious, but this time there’s a twist — even the business community doesn’t like it. Take it from Rob Black of the San Francisco Chamber of Commerce, which is actively opposing Prop. 23. “There is a fear that clean energy policy is a communist plot,” Black explained. “We actually think it’s a good capitalist strategy.” To most business leaders, AB32 is like the goose that laid the golden egg — it encourages investment in green technology, which is probably California’s best future economic hope. Vote no on 23.

 

PROP. 24

BUSINESS TAXES

YES

Prop. 24 repeals some special-interest tax breaks that the Legislature had to accept as part of the latest budget deal. In essence, it restores about $1.7 billion worth of taxes on corporations, particularly larger ones that hide income among various affiliates. Vote yes.

 

PROP. 25

SIMPLE MAJORITY BUDGET PASSAGE

YES, YES, YES

Prop. 25 would be a step toward ending the budget madness that defines California politics every year. It would allow the state Legislature to pass a budget and budget-related legislation can be passed with a simple majority vote.

It’s not a full solution — a two-thirds vote would still be required to pass taxes. But at least it would allow the majority party to approve a blueprint for state spending and help end the gridlock caused by a small number of Republicans. Vote yes.

 

PROP. 26

TWO-THIRDS VOTE FOR FEES

NO, NO, NO.

Prop. 26 would require a two-thirds supermajority vote in the Legislature and at the ballot box in local communities to pass fees, levies, charges and tax revenue allocations that under existing rules can be enacted by a simple majority vote

It’s supported by the Chamber of Commerce, Chevron, Occidental Petroleum, the Wine Institute, and Aera Energy.

Opponents argue that Prop. 26 should be called the “Polluter Protection Act” because it would make it harder to impose fees on corporations that cause environmental or public health problems. For example, it would be harder to impose so-called “pollution fees” on corporations that discharge toxics into the air or water. It would also make it nearly impossible for San Francisco to impose revenue measures like the Alcohol Fee sponsored by Sup. John Avalos. It’s another in a long line of attempts at the state level to block local government from raising money. Vote no.

 

PROP. 27

ELIMINATING REDISTRICTING COMMISSION

YES

We opposed the 2008 ballot measure creating the redistricting commission, arguing that, while allowing the state Legislature to draw its own seats is a problem, the solution would make things worse. The panel isn’t at all representative of the state (it has an equal number of Republicans and Democrats) and could be insensitive to the political demographics of California cities (it makes sense, for example, to have Senate and Assembly lines in San Francisco divide the city into east and west sides because that’s how the politics of the city tend to break).

This measure abolishes that panel and would allow the Legislature to draw new lines for both state and federal offices after the 2010 census. We don’t love having the Legislature handle that task — but we like the existing, unaccountable, unrepresentative agency even less. Vote yes.

 

>>BACK TO ENDORSEMENTS 2010

Dollars or sense?

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rebeccab@sfbg.com

It’s no secret that San Francisco is a particularly costly place to live. It consistently ranks in the top 10 most expensive cities nationwide, and it isn’t uncommon to see people renting out their walk-in closets as makeshift bedrooms to make ends meet.

There’s ample evidence that the city’s market-rate housing is out of reach for many families, middle-class workers, and low-income populations, particularly during the recession. Yet the shortage of affordable housing is a problem that is going largely unaddressed at City Hall.

The city’s General Plan estimates that a full 61 percent of new housing would have to be affordable to satisfy the housing needs of city residents, but even the most demanding development standards fall far short, producing only about half that amount. And while most new affordable housing is built for low-income people, a sizable portion is intended for first-time homebuyers with salaries at the highest threshold of affordability. In recent years, about one-third of new “affordable housing” was built to sell to people with “moderate” incomes.

So as big plans are mapped out for new residential developments composed of mostly market-rate units, what’s the strategy for addressing the underlying affordability gap? And will it ever be enough to keep from further turning San Francisco into a city of rich people while its workers are forced to live elsewhere?

This map, which appears in San Francisco’s Five-Year Consolidated Plan, charts concentrations of low- and moderate-income households in the city using HUD 2000 income data. Under federal guidelines, people with low and moderate income could be eligible for affordable housing.

A San Francisco Unified School District proposal to create new housing for San Francisco teachers underscores just how mismatched housing prices are to income. The National Low Income Housing Coalition (NLIHC) estimates that San Francisco renters paying market rate in 2010 would have to earn $56,240 to afford rent a one-bedroom apartment, $70,400 for a two-bedroom unit, and $94,000 for a three-bedroom unit, assuming they spend no more than about one-third of their income on housing.

A starting teacher’s salary in San Francisco is $50,000, so early-career educators may feel the squeeze. A survey of teachers conducted for the proposal found that 81 percent of respondents were renters, most living with unrelated roommates. More than half had plans to relocate in five years to a city where they could afford to be homeowners.

Housing was a hot-button issue at the Sept. 16 Planning Commission hearing on the environmental impact review for a hospital and housing complex that California Pacific Medical Center wants to build near Van Ness Avenue.

“The CPMC EIR fails miserably to analyze the income of the CPMC work force, and where it’s supposed to be housed,” affordable housing advocate Calvin Welch told the Guardian. “It’s a profoundly important question. If they are [providing] jobs that produce incomes that are insufficient to pay for average market-rate housing in San Francisco, who’s responsibility is it going to be to build housing for that workforce?”

 

WHO CAN AFFORD IT?

San Francisco has a reputation as a diverse, politically engaged hub that supports emerging artists, independent thinkers, and advocates for youth, workers’ rights, healthy ecosystems, protections for the most vulnerable segments of society, and hundreds of other causes. Without economic diversity — which is only possible when housing is available to people with a range of incomes — it might be a different place.

NLIHC estimates that 65 percent of San Francisco households are renters, and a significant number are what the Mayor’s Office of Housing (MOH) calls “cost-burdened,” shelling out more than a third of their incomes on rent. To get by, tenants have been known to cram roommates in like sardines, or cling tenaciously to a rent-controlled unit.

In a thick report outlining affordable housing goals for 2010–14, MOH and two other city agencies clearly articulate the housing challenges facing low-income renters. For one thing, the report says rents are going up despite the economic recession and declining home prices. And most people’s salaries don’t stretch far enough to cover those high prices. Even though there are 16 billionaires and some fabulously wealthy CEOs residing in San Francisco, the majority of people work in more mundane occupations like waiting tables, retail, office work, nonprofit jobs, teaching, health care, or public service.

The MOH report notes that despite the city’s relatively high median income, there’s a widening gap between top earners and people on the lower end of the spectrum, so few households actually wind up in that middle zone. “In fact, over a quarter of San Francisco’s population earns under 50 percent of [area median income],” the report states. For individuals in 2010, this translates to one in four people earning $34,800 or less. Compounding that problem are recent unemployment figures indicating that nearly one in 10 is jobless.

About one half of San Francisco’s population is considered low- or moderate-income, the housing report notes, using the standards used to formulate affordable housing prices. MOH uses a tiered income matrix, calculated using federal guidelines, to determine who could qualify for housing below the market rate. If you make $20,900 or less, you’re counted as “extremely low income.” You’re “very low income” if you make between $21,000 and $34,800, “low income” if you earn between $35,496 and $55,700, and if you make between $56,376 and $83,500, you count as “moderate income.” Even these figures are skewed higher because they include data from wealthy Marin County. As a point of comparison, U.S. Census data estimates that the median income for American workers was $29,530 over the last several years.

Most of the new affordable housing constructed in San Francisco is aimed toward people in the lowest ranges, but in recent years one-third was built for those with moderate incomes, which could gentrify some parts of the city. “Supervisorial Districts 3, 6 and 10 had rates of more than 40 percent extremely low and low-income,” the MOH report notes. “These three districts make up the entire eastern part of the city.”

A Guardian analysis of Bureau of Labor Statistics occupational and wage estimates for 2009 suggests that about 71 percent of people who work in San Francisco (many commute from less expensive places) earned less than that highest “moderate” salary limit of $83,500. It suggests that the vast majority of the workforce could not afford market-rate housing unless they sought it in pairs or groups.

“A big issue is the inability of San Francisco’s employment market to produce jobs that pay people enough to afford housing,” Welch says. “There’s a mismatch between market-rate income and market-rate housing costs. We’re housing somebody else’s workforce.”

Another stab at assessing the affordable housing need gazes into the future. The Housing Element of the San Francisco General Plan includes an estimate for the city’s future housing needs for the better part of the decade. The city should build 31,200 new housing units to meet its need, the General Plan says, and “at least 39 percent of these new units must be affordable to very low and low-income households. Another 22 percent should be affordable to households with moderate incomes.”

What this adds up to is a full 61 percent of new residential development in San Francisco ought to be dedicated to some form of affordable housing. The calculation reveals a lot about the condition San Francisco is in, but it might as well be chalked up as a hollow academic exercise. Indeed, the report deems this goal “unrealistic.” The reality of the market and chronic government deficits ensures that there will not even be an attempt to meet it.

 

IF YOU BUILD IT

The trouble with affordable housing is that developers won’t build it unless there is a financial incentive. “The only way it works is not in the marketplace,” Welch said. “There’s no such thing as affordable land, affordable sheetrock, affordable architects, or affordable engineers. The profound condition … is that the market cannot produce affordable housing.” As long as developers can make higher profits building market-rate, they will.

That’s why government steps in to subsidize or mandate new affordable housing construction or preserve existing stock. Under the Inclusionary Housing Ordinance, if developers decide not to build the required 15 percent of affordable units, they must pay an in-lieu fee that gets funneled into an affordable housing fund.

In a good year, MOH Executive Director Douglas Shoemaker told the Guardian, the city receives $10 to $15 million from these fees, which is used in partnership with developers to build affordable projects. That system hasn’t worked so well lately. Last year funds for affordable housing were depleted instead of bolstered. Developers who paid their fees in anticipation of building new projects requested refunds after their projects were stalled, Shoemaker told the Guardian, so MOH gave back up to $12 million to developers instead of using that money to build new affordable housing.

This year, Mayor Gavin Newsom introduced what he called an “economic stimulus” program that allowed developers to defer payment of in-lieu fees. This guarantees that it will be a long, long time before new affordable housing can be built using those funds. So as it stands, the inclusionary housing law isn’t so effective at producing new affordable housing.

Projects done in conjunction with the San Francisco Redevelopment Agency, meanwhile, do include higher portions of affordable housing. With all of the planned Redevelopment projects combined — Treasure Island, the Hunter’s Point shipyard, and others — the city can expect to see perhaps 7,000 new affordable housing units in coming years, a portion of which will be condos meant for people in the “moderate” income range. It may well be better than other cities have offered, but it doesn’t begin to address the true need for more than 19,000 units outlined in the General Plan.

Shoemaker noted that San Francisco is a cut above the rest when it comes to affordable-housing requirements. “I just don’t think you could find a city that has more aggressive goals,” he said, noting that in major redevelopment areas, “We’re getting like 30 percent of homes to be affordable on some level.” Yet Shoemaker acknowledged, “the need is intense,” and “there’s more people we would like to serve.”

Olson Lee, deputy executive director of the San Francisco Redevelopment Agency, also described San Francisco as taking a very aggressive stance on affordable housing. Redevelopment devotes 50 percent of its tax-increment financing to affordable housing, where the state requires just 20 percent, Lee said. And some Redevelopment project areas include twice as much affordable housing as is required by state law, he added. “The city has done a tremendous amount of affordable housing,” he said. However, “the fact of the matter is, there’s a greater demand for affordable housing than the number of units.”

From 2005 to 2009, there were 3,607 new affordable housing units constructed, mostly for people at the lowest end of the pay scale, MOH reports. But in that same time frame, 3,465 rental units were converted to condominiums. One could argue that the city essentially broke even with its affordable housing stock in a decade where housing prices almost doubled. As San Francisco housing prices skyrocketed, the city’s 170,000 rent-controlled units served as the saving grace for the majority who couldn’t afford market-rate, and condo conversions continue to threaten the erosion of that very significant housing stock.

Debra Walker, a candidate for District 6 and a tenant representative on the Building Inspection Commission, told the Guardian that she believes a new financing system is needed for affordable housing. “The argument for development is that we get affordable housing money out of it,” she said, but “the inclusionary doesn’t get us enough housing. We cannot include affordable in those high-rises, because they’re so expensive to build.”

She has talked up the idea of a real estate transfer tax that would create a dedicated fund that could then be used in partnerships with affordable-housing developers. Shoemaker, for his part, noted that having a dedicated revenue stream for affordable housing would be very helpful. A committee comprised of the San Francisco Planning and Urban Research Association, Welch, developer Oz Erickson, and Shoemaker was formed earlier this year and actually arrived at a deal, but Newsom ultimately rejected it. Other creative solutions, Walker says, might include reusing shuttered commercial properties or building cheaper by design using different building materials. “It’s about looking at what it is we need,” she said, “and realizing people are in a pinch.”

The greatest complicating factor of the current system, in which the city relies on market-rate development to get new affordable housing, is that even though there a some 40,000 new residential units in the pipeline, developers can’t secure financing to start building them. For now, in the down economy, they only exist on paper.

“They’ll never get built,” Welch predicts, and as long as Newsom continues to extend entitlements for those planned projects in hopes that the market will get a jump, “it’s freezing September 2008 conditions, evidently forever,” limiting opportunities to build something more reasonable.

“They’re zombies,” Welch added. “Who the fuck is going to pay $2 million for a new condo when they can buy a $4 million building for $1 million in foreclosure?” But if the need for affordable housing began to be addressed, he said, something might start to happen. “If you converted half the pipeline units to rental,” he theorized, “they might get built.”

SF’s 16 billionaires (and who says this city is broke?)

61

The new Forbes 400 list of the richest Americans is out, and guess what? Sixteen of them live in San Francisco. That’s a lot of very rich people. Some new ones on the list this year, too. And that doesn’t count all the very, very rich who didn’t quite make the cut (Warren Hellman, for example, isn’t quite rich enough for this list.)


It’s another reminder: This is a wealthy city, folks. And some of the people who live here, who have done exceptionally well with the Bush tax cuts (and despite the recession) can well afford to pay more local taxes.


So next time a political candidate tells you we can’t raise taxes in a recession, tell them to check out the Forbes 400 and our own 16 billionaires.


 


 

Trash Lit: ‘Reckless’ could be ripped from headlines (minus a couple murders)

0

Reckless
Andrew Gross
William Morrow, 404 pages, $25.99

Imagine if the head of a powerful banking company with close ties to the federal government conspired with some shady Saudi billionaires and a cruel Serbian ex-military thug to bring down the American financial system in a Darwinian plot that would allow the one firm with insider knowledge to emerge even stronger. How would it play out? Well, minus a few murders, more or less exactly the way the financial-sector meltdown of the past couple of years has played out.

That’s what makes this such a fun book. It’s not the most brilliant thriller ever – the structure involves a lot of flicking back and forth between parallel plots, and gets confusing at times. But the premise is delicious, and the execution is good enough to make it eminently enjoyable.

Reckless starts off nicely, with a Middle Eastern banker set to launch world economic ruin, an American private dick fucking his girlfriend as doom approaches, a Greenwich, Connecticut society divorcee fucking a sexy European stud with a dubious background and a brutal, bloody murder of a securities trader, his wife (who was an old pal of the PI) and one of their kids.

It slows down a bit after that, but not much.

Turns out the dead guy was way underwater in a complex deal. A few more traders, also underwater and scrambling, wind up dead, too. And then the economy really starts to fall – AIG goes under. Fanny Mae and Freddie Mac go under. There’s panic at every level of government.

Meanwhile, the bad guys try to kidnap the mildly retarded son of the PI’s girlfriend after a hockey game, leading to a spectacular hockey-stick-and-knife-in-the-locker-room fight that ends with the PI shoving a sharpened skate into the kidnapper’s chest (neat trick; I always wondered if that would really work).

By the time it all gets sorted out, there’s railroad trestle gun play, a federal agent who’s bleeding to death but still makes a spectacular shot, and an utterly predictable power-out, stuck-in-the-elevator sex scene. Maybe even worth forking over the hardcover price.

SF’s Tax Day protests: Progressives 300, Teabaggers 4

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For all the hype about Tax Day Tea Parties, include two in San Francisco this afternoon, it was progressive causes that put the most protesters on the streets today. In fact, at a 1 p.m. Tea Party outside City Hall, the teabaggers were way outnumbered by journalists and satirical “teabaggers” doing street theater.

For awhile, 70-year-old Al Anolik – clad in his American flag shirt and NRA hat – was the only teabagger present, although he was joined by 23-year-old Odell Howard (wearing his American flag on his hat) at about 1:20 p.m. Another pair arrived later, making it four in all.

“It is San Francisco,” Anolik offered by way of explaining the anemic gathering.

Contrast that with two other rallies going on at the same time: Service Employees International Union fielding about 200 protesters on Mission Street near the federal building demanding immigration reform and respect for immigrants, and about 100 people who turned out for the Mobilization for Climate Justice, protesting a conference on carbon offsets.

“Nobody should be given credit for creating greenhouse gas emissions,” Ana Orozco, an organizer for Communities for a Better Environment, Richmond, told the gathering.

CBE was one of several groups demonstrating on Fourth Street outside the Marriott, which was hosting New Direction for Climate Action, put on by Navigating the American Carbon World, a group that promotes a cap-and-trade market for pollution credits.

The protesters said that system would only legitimize pollution and delay the strong actions needed to avert the worst impacts of global warming. “Keep the cap, nix the trade,” the group chanted at one point.

I asked one conference attendee (who wouldn’t give his name) what he thought of the protesters and he called them, “watermelons – green on the outside and red on the inside.” Longtime progressive activist Chris Carlsson said accusing someone of being a communist has always been tactic capitalists use to shut down real debate on important issues.

Anolik and Howard were also quick to play the red card, accusing the Obama administration of plotting to take away people’s guns and instituting a government takeover of the health care system, and neither would listen to arguments that their claims were demonstrably false.

But the progressives on the street today were all about sparking debate, including two members of the Raging Grannies that were at the climate event and then headed over to the Tea Party, where they satirically advocated for a health care system run by wealthy corporations.

“Billionaires for Wealthcare,” was the sign one held, while the other’s read, “Blue Cross, Palin, 2012,” advocating that we cut out the middle man and elect Blue Cross as the next president, with Sarah Palin as its running mate.

And then they broke into the song “We shall overcome,” but with a modified chorus: “We shall overcharge.”

Clouds and mirrors

1

Carl Fisher turned a mosquito-plagued, malarial sandbar into Miami Beach, “The Sun and Fun Capital of The World,” in less than a decade — dredging up sea bottom to build the island paradise, an all-American Las Vegas-by-the- Sea, where Frank Sinatra and Jackie Gleason partied and Richard Nixon received two Republican nominations for president. Art Deco hotels lined the beach, bold as Cadillacs, defiant in the path of hurricanes, their confident Modern lines projecting postwar American power. Morris Lapidus, the architect of the Fontainebleau Hotel, understood that the skin-deep city Fisher conjured out of neon and sunshine was a stage for the leisure fantasies of the ruling class. When his iconic Collins Avenue hotel opened in 1954, Lapidus said he wanted to design a place “where when (people) walk in, they do feel ‘This is what I’ve dreamed of, this is what we saw in the movies.'”

For many years in Miami, that movie was Scarface, as Colombian drug lords shot it out in mall parking lots. A shiny new downtown skyline of banks and condos emerged during a recession economy from the laundered proceeds of drug smuggling. Today the cocaine cowboys have all died, or done their time and moved on. Their descendents are selling art.

Art Basel came to Miami Beach in 2002, and the rise of Miami as an international art world capital neatly coincided with the glory days of the housing bubble. According to Peter Zalewski of Condovulture.com, around 23,000 new condo units were built in and around downtown Miami during the Art Basel era — twice the amount built in the 40 previous years. The success of the international art exhibition has inspired a fever dream among city leaders, in which Miami’s skyline and neighborhoods are radically transformed by art world-related real estate development.

Cesar Pelli’s $461 million, 570,000-square-foot Carnival Center for the Performing Arts opened in 2006 in a moribund section of downtown known for its proximity to the faded 1970s-era mall, the Omni. That same year, the Miami Art Museum (MAM) hired as its new director Terence Riley, the former curator for architecture and design at the New York Museum of Modern Art. Heralded in his new city as “the Robert Moses of the new Miami millennium,” Riley initiated the development of Museum Park. This 29-acre complex would be home to new buildings for the Miami Art Museum and the Miami Museum of Science and Planetarium. It was to be built on the site of Miami’s last public waterfront park, Bicentennial Park, long a sort-of autonomous zone for Miami’s homeless residents. While the new MAM is not scheduled for completion until 2013, by 2007, a 50-floor, 200-unit luxury condo development, 10 Museum Park, had already been finished across the street.

Art Basel Miami Beach brings an estimated 40,000 people to Miami each year to look at art, party, and more important, look at celebrities as they look at art and party. The art fair, once dubbed “the planet’s highest concentration of wealth and talent,” generates an estimated $500 million in art sales each year. Yet while Miami leaders seek to present to the world Basel’s image of wealth and glamour, the iconic image of South Florida today has abruptly become the newly built and entirely empty condo development. Zalewski estimates that 40% of the condo units built since 2003 remain unsold. Florida’s foreclosure rate is the second-highest in the nation, and for the first time since World War II, people are leaving Florida faster than they are arriving. Just months before this year’s Art Basel Miami Beach, a New York Times cover story told of the lone occupant in a towering Broward County condo that had gone entirely into foreclosure. As the fair approached, I wondered: can art really save a city like Miami? Or is its reliance on art world money part of the city’s collapse?

ATLANTIS CITY

At this year’s Art Basel, the glitz was, of course, played down, what with the global economic collapse and Art Basel’s main corporate sponsor, top Swiss bank UBS, now the subject of an FBI probe on charges of helping billionaire clients evade taxes. In the weeks before the opening of the fair, it was announced that the legendary UBS free caviar tent would not be open this year. One could not help but notice that the ice sculptures on the beach itself, hallmarks of the recent boom, were gone, already as fabled as the lost city of Atlantis.

Still, the epic “Arts and Power” issue of Miami magazine hit the stands on time, luxurious full-color spreads on oversize glossy pages. Press from all over the world wrote a month’s worth of previews leading up to the event, and on the day of the VIP vernissage, TV news reporters from all continents were there to dutifully record the arrivals of billionaires, celebrities, and fashion models at the Miami Beach Convention Center. As Art Basel Miami Beach 2009 opened, the floor of the convention center was eerily quiet, with hardly a sound except a hushed, determined whisper a bit like paper money being rubbed together. It seemed to me like everyone was doing her or his part, as if the whole art fair was a sort of performance art piece demonstrating the vigor of the free market in dark times.

This murmur ceased completely, and the air filled with the muted clicking of camera shutters, as Sylvester Stallone passed me on the convention floor. Stallone, too, was stoic, his expression hidden by dark sunglasses at mid-day. He stopped next to me and began to talk to TV news cameras about his own paintings on display, presented by the gallery Gmurzynska. Close-up and in person, clumps of the actor’s face, now just inches from mine, seemed to lay inert and dead like the unfortunate globs of oil paint he had arranged on his own canvasses. Pieces of puffy cheek hung limp and jowly under taut eyebrow skin, Botox and facelifts fighting age for control. For a paparazzi flashbulb moment, I thought I saw in Rambo’s sagging face a metaphor for the doomed efforts to prop up a whole failing way of life.

The Miami Beach Convention Center’s 500,000 square feet had been blocked out into booths and concourses that comprised a pseudo-city of art. As a city, it most resembled some parts of the new Manhattan — crowded yet curiously hollowed out and lifeless, under relentless surveillance, full of nostalgia for its former, more vital self. Groundbreaking art that once had the power to shock, move, or startle — Rauschenberg’s collages, Richard Prince’s Marlboro men, Barbara Krueger’s text block barrages — were presented here as high-priced real estate. In the city of art, time stood still; Matisse, de Kooning, and Duchamp had all retired to the same street. A sailor portrayed in a 2009 life-size portrait by David Hockney seemed to gaze wistfully across the hall toward a 1981 silk-screened print of a dollar sign by Andy Warhol. The life-size portraits by Kehinde Wiley felt just like the city in summer, how the radio of every passing car seems to be blasting the same song. A print of a photo of Warhol and Basquiat together in SoHo stood catty-corner to a 1985 Warhol paining of the text, “Someone Wants To Buy Your Apartment Building.”

I wondered if this city of art offered clues as to the kind of city that developers imagined Miami might become.

ART MAUL

Across Biscayne Bay, away from Miami Beach in the city of Miami, the fever dream of art was turning a down-and-out neighborhood in the poorest city in America into an outdoor art mall. Fifteen satellite art fairs and 60 galleries staged simultaneous exhibitions in Miami during the week of Art Basel Miami Beach. Virtually all this art was crammed into about 80 square blocks north of downtown Miami, bisected by North Miami Avenue. The area included Miami’s African American ghetto, Overtown, the warehouse district of the low rent Puerto Rican neighborhood, Wynwood, and the resurgent Miami Design District up to its shifting borders with Little Haiti.

Walking up North Miami Avenue and Northwest Second Avenue the night before the exhibitions began, I could see the usually moribund main drags transforming before my eyes. Warehouses vacant the other 50 weeks of the year were hastily being turned into galleries or party spaces. Solely for Art Basel week, the Lower East Side hipster bar Max Fish had built an exact replica of its Ludlow Street digs in an Overtown storefront. In Wynwood, the paint still appeared wet on a fresh layer of murals and graffiti running up and down the streets.

The modern-day Carl Fisher most perhaps most responsible for dredging this new art world Miami up from the bottom of the sea is Craig Robins. “I transformed the image of my city from Scarface into Art Deco,” is how Robins put it when I talked to him in the Design District offices of his development firm, Dacra. Widely considered to be the person who brought Art Basel to Miami Beach, Robins is, at a youthful 46, the man who perhaps more than anyone embodies the values and tastes of a new Miami where art and real estate have become as inseparable as fun and sun. Robins takes art seriously — he is a major collector of artists like John Baldessari, Elizabeth Peyton, Rirkrit Tiravanija, and Richard Tuttle — and he made his name and fortune by restoring the derelict Art Deco motels on his native Miami Beach during the early 1990s into the international high-end tourist destination now known as South Beach. Today Robins is one of the principal owners of the warehouses in the Miami Design District and Wynwood.

With his casual dress, shaved head, and stylish Euro glasses, Robins could easily fit in as one of the German tourists who flock to the discos on the South Beach that he developed. His offices offer a rotating display of the works of art in his collection. Around the time of Art Basel, his staff had installed many works by the SoCal conceptual artist John Baldessari, in honor of Baldessari’s upcoming career retrospective at the Tate Gallery in London. Robins was friendly and projected a relaxed cool; when I’d met him on the convention center floor and asked for an interview, he gave me an affectionate shoulder squeeze and said, “Call my assistant and we’ll hang, OK?” A few days later, he grinned somewhat impishly when I sat down said, “I notice you sat in the Martin Bas chair,” as if it was a Rorschach test. Honestly, it was the only piece of furniture in the design collector’s office that looked dependably functional.

Not surprisingly, Robins was adept at explaining the art theory behind his development projects, and the ways Dacra is bringing art, design, and real estate together “to make Miami a brand name.” He said he learned from the successful preservation of historic buildings in his South Beach projects that consumers were starting to reject the cookie-cutter commodities of the mall and “starting to value unique experiences” made from “a combination of permanent and temporary things.” On the streets of the Design District and Wynwood, Robins sought to bring together restaurants, fashion showrooms, and high-end retail stores, surrounded by parties, international art shows, and public art. “This gives a richness to the experience of Miami,” Robins said. “That is the content that Miami is evolving toward right now.” I thought of Lapidus, the Godfather of Art Deco, and his quote about the Fontainebleau: In Wynwood, Robins wanted to turn not just a hotel lobby but an entire neighborhood into a place where visitors feel they have entered a movie.

Robins grew more excited as he discussed his vision. “With my work at Dacra, I build communities,” he told me. “When we brought Art Basel here, Miami immediately became recognized as a world-class city.”

Others are skeptical. “Miami will always be an attractive place for people to visit in December, but you can’t graft culture onto a city,” says Alan Farago of the widely read blog Eye On Miami. “It’s a mistaken belief that art can be a totem or a symbol of a great city without there being any substance. Miami will continue to be a pretender because there is no investment in local culture beyond building massive edifices like the Performing Arts Center.”

Indeed, the center — now renamed the Adrienne Arsht Performing Arts Center, in honor of a wealthy benefactor — has become perhaps another in a long line of tragicomic failed improvements for the area. Bunker-like, it has been likened by some architecture critics to an upside-down Jacuzzi. Though 20 years in the making and long heralded by boosters as a building that would instantly make Miami a “world-class city,” the center has operated at a deficit and suffered from poor attendance since its opening. The future of Museum Park suddenly turned cloudy a month before the opening of this year’s Art Basel, when Miami Art Museum director Terrence Riley unexpectedly resigned days after unveiling the architects Herzog and de Meuron’s final model for the new buildings. Riley sited a desire to return to private practice as an architect, but online speculation had it that he already knew cash-strapped Miami would ultimately be unable to raise the money to build the museum.

Farago wonders what would change if the city did have the money. “In Miami on one hand, we have public school teachers using their own salaries to buy art supplies for their students,” he says. “Then we have these one-off art events and a performing arts center that brings us road shows of Rent, Annie, and 101 Dalmatians.”

When I asked Robins what lasting benefits Art Basel provided to the community, he cited a roster of new restaurants opened by star chefs and fashion showrooms. “It encourages people to come down here year-round,” he said. It was clear that Robins was discussing amenities designed for tourists, or for a speculative community of future residents who might be enticed to come to Miami.

I suggested that there were actually two different communities in Wynwood with potentially opposing interests. I told Robins I’d attended a community meeting held by the activist groups Power University and the Miami Workers Center. There, Wynwood residents discussed how their rents had doubled, how the city continued to neglect the facilities at Roberto Clemente Park, and how the increased presence of police escorting the art patrons to the new galleries had made them feel like they didn’t belong in their own neighborhood.

Robins, who had been very loose and calm during the first 45 minutes of our talk, became visibly upset. He launched into a sustained rant. “Well, look, active communities are a good thing,” he said, shaking his head. “But just because a community is active doesn’t mean it is rational. You go and sit in these meetings and half the people are nuts. Half are just there because they are miserable people and they have some soapbox to go and rant about all these things that they think they have some entitlement to attack government about when they never do anything themselves for anyone. I find that 20 percent of these people are totally irrational, mean-spirited people who would never agree with anyone about anything good.”

“What kind of people do you mean?” I asked.

“People who feel disenfranchised! They’re very angry. They have psychological problems and they want a forum to vent. I’m not implying we should stifle democracy — I’m a big believer in it! I’m saying these people should not be taken seriously by enlightened people!”

Robins rose to look at a clock on his desk. Not surprisingly, our time was up. I politely excused myself to the restroom. When I returned it was like no tantrum had ever happened. Robins’ impish grin even returned as I asked him to pose for a photo in front of one of his Baldessari prints. I had him stand in front of Cigar Smoke to Match Clouds That are Different (By Sight/ First Version), a 1972-3 triptych of photos. As the artist looks into a mirror at clouds over his shoulder in the sky, he blows out a mouthful of twisting cigar smoke, trying to match their elusive shape in the air.

GIMME DANGER

Out on the streets of Wynwood, it was still mostly quiet, expectant, but the scene at David Lynch’s art opening gave one a sense of what the coming weekend would be like. Lynch was presenting photos from a book of staged stills he is releasing with a CD of music by Danger Mouse. Hundreds of hipsters, mostly locals, guzzled free booze and gawked when new Miami resident Iggy Pop showed up, shirtless as usual, in a Miami Vice-style blue blazer. As I watched the Godfather of Punk pose for pictures with his arm around Danger Mouse, I thought of the city of art, the Jackson Pollacks and Donald Judds together at last, on the convention center floor. I had the eerie feeling that the Internet had come to life.

I left the opening and walked at random through the streets of Wynwood at 2:00 a.m. While looking at murals and thinking about the changes Art Basel had wrought, I unexpectedly came upon a small street party of people I knew. The side street intersection was lit up like a stage with an enormous floodlight. Street artist SWOON stood high on a scissor lift, painting a mural on a warehouse wall, while below a couple of kids dressed like old tramps wrestled with a big, brown stuffed bear.

The bear split open, and thousands of tiny white particles of stuffing poured out into a warm Miami breeze, swirling high into the air and reflecting the glow from the floodlight. I ran to join the kids, who were now playing and laughing in the sudden snowstorm. A guy I recognized from Brooklyn rode by on a tall bike. Bay Area artist Monica Canilao went careening by on a scooter with no helmet. A cop drove by and smiled and waved. Guys from Overtown with cornrows and gold teeth were laying out a spread of huge chicken legs on a flaming grill. Some punk kids from Brooklyn sat on the curb, drinking beer. A girl in the group laid her head on a boy’s shoulder as they all watched SWOON work.

For a second, I flashed back to the Stallone scene earlier in the day, back on the convention floor. Here, in this intersection, I had found something living and breathing. This could be the real city of art. But I also knew the SWOON mural was commissioned by Jeffrey Deitch. I stood and watched the painting and the dancing and laughing and eating in the fake December snowstorm and contemplated what the city would be like if we all had the free time, resources, and permission to take to the streets and transform the city any way we pleased. Was this a window to a different world where anything might be possible?

Or was it just art?

The second half of this essay will run in the Jan. 27 Guardian. *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Editor’s Notes

0

tredmond@sfbg.com

I am done talking about Chris Daly’s personal life. It’s been a nasty, ugly discussion this past week or so, and if you want a taste, you can go to the Guardian politics blog and read dozens and dozens of comments attacking Daly, attacking me, attacking progressives in general, and raging about hypocrisy.

Okay, I’m almost done. I want to say a word about hypocrisy. I’m not so into buying foreclosed houses; it does stink of profiting off someone else’s misery. But the banks are the ones doing the foreclosure and eviction, not the buyer.

Which is not the case with Ellis Act evictions and tenancy-in-common purchases/condo conversions. You buy a TIC, you’re evicting someone, some tenant who is not quite as well-off as you. It’s legal, and not everyone who buys a TIC is evil, and I know all the caveats — but nearly all the people who have been attacking Daly (and me) in the online comments I’ve read (and in print articles, witness Michela Alioto-Pier) are supporters of TICs and condo conversions, which they refer to as homeownership opportunities.

Yes: homeownership opportunities. Yes: evictions. I’m not defending Daly here, I’m just saying.

Now then: The thing I’m not done talking about is the constant, implied, and often direct supposition that the suburbs are better places than San Francisco to raise kids. I beg to differ.

I grew up in a suburb, mostly white, mostly middle class. (More middle class than the suburbs today because the middle class was bigger and doctors, plumbers, and factory workers lived in the same subdivisions — but still, pretty homogenous.)

Today’s suburbs are more racially mixed, slightly. But they’re still essentially homogenous.

My kids go to a wonderful public school (McKinley Elementary) where everyone isn’t just like them. Some kids have one parent, or two, or are raised by relatives. Some kids go on nice fancy vacations for spring break, and some kids get their main caloric intake from the subsidized breakfast and lunch. A lot of kids don’t speak English as a first language. And for my son and daughter, they are all classmates and friends.

Yes, Chuck Nevius: Michael and Vivian see homeless people on the streets. Usually we give them money. And we talk, my kids and I, about why there are people who have no place to live, and why it’s important not just to give to charity but to try to change the conditions that allow billionaires to pay low taxes while people sleep on the streets.

And last Friday, Vivian and the other seven-year-old campers at Randall Museum camp (public, city-funded, open to all) finished a two-week session on hip-hop dance with a performance that literally made me cry.

My kids are city kids, San Francisco kids. We kick suburban ass. *

How healthy is Healthy SF?

0

news@sfbg.com

San Francisco is getting national attention for its attempt at universal health care. President Obama even applauded the city’s efforts in a speech: "Instead of just talking about health care, [San Francisco has been] ensuring that those in need receive it."

But Healthy San Francisco — a pioneering effort to do at the municipal level what the federal and state governments won’t — is running into some troubling problems, made worse by Mayor Gavin Newsom’s budget cuts.

The program was initiated by Tom Ammiano, now a state assemblymember, with backing from organized labor. Ammiano’s goal was to provide easy access to affordable health care for all of S.F.’s 60,000 uninsured. A local version of a single-payer program, he argued, could provide accessible primary and preventative care, alleviating the need for indigent patients to use the overcrowded and expensive San Francisco General Hospital emergency room as their primary medical provider.

Healthy San Francisco was launched on July 2, 2007, at two Chinatown clinics. It has grown dramatically, and now provides services to more than 34,000 residents at 27 clinics.

Although Newsom sat on the sidelines while Ammiano pushed the legislation, the mayor has now unashamedly claimed the program as his own to promote his gubernatorial campaign. On his Web site he boldly declares that "he’s created the only universal health care program in the country" — with no mention of Ammiano.

The $200 million-<\d>a-<\d>year program is partially funded by an employer-mandate requiring businesses with more than 20 employees either to provide health insurance or pay a fee to the city. The fees are broken down according to the size of the business; as of January 2009, employers pay between $1.23–<\d>$1.85 for every hour an employee works.

Like any traditional health insurance program, Healthy SF has annual fees and point-of-service charges paid by participants. The remainder of the program is funded through state grants.

Opposition to HSF surfaced immediately. The Golden Gate Restaurant Association sued the city even before the program started, alleging that the employer-spending mandate is a violation of federal law.

Kevin Westlye, the association’s executive director, claims his beef is not with the health care system, just with the employer mandate. He suggested that the city raise its sales tax to pay for the program — or that the financial burden should fall on the backs of the billionaires that run privatized health care and pharmaceutical companies.

But the city has only a limited ability to raise taxes, and any tax hike would require voter approval. The employer mandates and fees were much more politically feasible.

Deputy City Attorney Vince Chhabria, who is representing the city on the case, argues, "It is difficult to imagine, in these budget times, that San Francisco could provide universal coverage without employer health care spending requirements."

Federal courts sided with the GGRA initially, but the Ninth Circuit Court of Appeals agreed that the employer-spending mandate was legal. The GGRA appealed to the United States Supreme Court; the court will announce Oct. 5 whether it will hear the case.

That’s not the only litigation facing HSF. A group of low-income residents are suing the city, saying that the system’s annual fees and co-pays are too high. The program’s fees are scaled to the federal poverty level, which is currently set at an annual income of $10,830. A single person making between 101 percent and 200 percent of the federal poverty level — that is, between about $11,000 and $20,000 a year — pays $180 a year for HSF membership. People earning between $40,000 and $50,000 pay $1,350 a year.

There are also co-pays of $10 for medical visits and $5 to $25 for prescriptions — again, typical of health insurance plans.

Bay Area Legal Aid and the Western Center on Law and Poverty are representing three San Francisco residents who say those fees violate federal and state mandates, which stipulate that the city must provide free health care to those who can’t afford to pay. Healthy San Francisco is only one element of the lawsuit; it also claims that San Francisco General Hospital charges low-income people too much and that the city’s medical bills and collection practices aren’t fair.

One of the plaintiffs is Robyn Paige, a San Francisco resident with spine, foot, and hip injuries. Paige contends that she can’t afford the co-payments on her multiple medications each month and must either go without pain medication or borrow money. Lisa Qare, 21-year-old resident with MS, had to wait three weeks for medication for an eye condition that developed as a result of her condition.

A $10 co-pay may not seem like much, but when a patient needs several doctor visits a month and must pay $5 to $25 each for multiple prescriptions, it adds up. "As a result," Michael Keys, a Bay Area Legal Aid lawyer, told us, "those who can’t afford the charges are falling into medical debt or skipping services or medication."

And, not surprisingly, the cash-strapped city is having trouble finding enough staff and facilities to meet all the needs. Nancy Keiler, a Mission District resident and HSF participant, complains that clinic visits are too short, and that "the doctor is too hurried and has too many patients." (That’s a common complaint about private health plans, as well.) After waiting three hours, another HSF participant had to leave without her prescription to get back to work on time.

The long lines and waits will only get worse in the face of budget cuts. Pink slips were already handed out to several hundred San Francisco health care workers and 1,000 more may be laid off this fall.

Robert Haaland, who works with the Service Employees International Union Local 1021, told us the staffing cuts will make the situation much worse. Martha Hawthorne, a public-health nurse, said she thinks that there won’t be enough providers to provide good care — and that many health care workers losing their jobs will have to enroll in HSF themselves, putting even more strain on the system.

Ammiano, the author of the plan, is concerned too. "I’m very worried about it," he said. "It seems to me now that if there’s this budget pain, there will be impacts to San Francisco."

Nathan Ballard, the mayor’s press secretary, tersely denied that HSF will feel any budget pain. Asked about critics’ allegations, he said, "They’re wrong. We are going to expand Healthy SF this year."

Earlier this month, insurance giant Kaiser Permanente joined HSF — meaning that the health care giant will now participate as a provider in the program. Haaland voiced concern about that move, calling it "privatizing through the back door."

Mitch Katz, the city’s public health director, agrees there are flaws to the system, but defends its success. "It is by no means a perfect program," he said, "but we’ve made a big impact." With national health care costs rising three times faster than wages (some believe that health care costs are rising five times faster than wages) the nation is starting to seriously talk about overhauling the entire system. San Francisco is being considered as a model for national health care reform.

Labor leaders have lauded the basic formula of HSF and pushed for the federal reforms to use it as a model. As San Francisco Labor Council executive director Tim Paulson said in a prepared statement, "In San Francisco we demonstrated that legislation providing public health access and corporate participation creates a real path to universal health care coverage."

Research assistance by Gabrielle Poccia

Billionaires and Babes — and ew

14

By Juliette Tang

In what is surely a sign of the decline of capitalism, Babes and Billionaires is now open for your consumption. This previously invitation-only site — one described by its creators as “where the honeys meet the money” — purportedly connects “billionaires” with “babes” (skepticism and scare quotes mandatory) and promises to be a cut above similar sites like Millionaire Match, Sugar Daddy for Me, Seeking Millionaire, and Seeking Arrangement, though how remains unclear, particularly in the area of general douche-baggery.

During a brief a phone conversation, Lawrence Miller (CFO) and Arnold Zelonka (VP of Marketing/Creative Director) used terms like “A-List” and “garbage” to differentiate between people, called their taste in female beauty “incredibly discerning,” and admitted to believing Babes and Billionaires to be “a very clever name”.

According to Miller, who is the only person I’ve ever spoken to who used the term “A-List” three times in the span of less than a minute: “The original genesis was contacts throughout the United States, mostly A-List people. We invited them to join what was then a private club and a place for them to meet. Professionally, I was in the entertainment business for many years and I’ve had a huge database of A-List people. And my Director of Marketing was in the advertising business and also had a large database of A-List people.” When I asked him who he considered A-List, he responded, “People in the entertainment industry, and the rich and beautiful. We are gearing our marketing to those that qualify.”

Though he said, “I wouldn’t be so presumptuous to say I’m the ultimate judge of beauty,” he did admit to having “incredibly discerning taste” in female beauty. As for the men? How rich are they? “Most of the men are worth in excess of 10 million dollars.” The pairing between beautiful women and rich men works well for an online medium, Zelonka argued, because “People with money don’t want to mingle with the garbage to meet people to date. A lot of them are shy and busy.” And, if members of the site are anything to go by, some of them (actually, all of them) are creepy and talk like Smoove B from The Onion.

Editor’s Notes

0

› Tredmond@sfbg.com

The absolute most stunning statement of how messed up the state of California is emerged last week from the state director of finance, explaining why the proposed budget cuts fall so heavily on services for the poor. Let me quote directly from The New York Times:

"Government doesn’t provide services to rich people," Mike Genest, the state’s finance director, said on a conference call with reporters on Friday. "It doesn’t even really provide services to the middle class.

"You have to cut where the money is," he added.

Um … government doesn’t provide services to rich people? What about, say, the roads they drive on, and the airports they fly in and out of? What about the vast sums the state spends putting out fires that threaten wealthy enclaves in Southern California? What about the public education system, which trains workers for businesses? What about the entire criminal justice system, which exists to a significant extent to prevent poor people from taking rich people’s money?

Do you think Sergey Brin and Larry Page would have become Google billionaires if the Internet — developed and paid for by the government — didn’t exist?

No. Federal, state, and local governments all spend money on services for the rich. And by and large, those services don’t get cut when budgets are busted, and by and large, the rich don’t pay their fair share for the services they get — and by and large, nobody in politics talks about that when these nasty decisions get made.

It doesn’t have to be this way. Let’s just remember that as 900,000 kids lose their health insurance and California becomes, in the words of Mayor Gavin Newsom, the first state in the industrialized world to have no welfare system at all. It doesn’t have to be this way.

Cutting services for the poor, as opposed to cutting things rich people want and need, or making them pay a tiny bit more to keep society stable, is a political choice.

The American Federation of State, County, and Municipal Employees just put out a fascinating document looking at alternatives to the governor’s cuts — including a bunch of things that can be done without the two-thirds vote required to raise taxes. There are, for example, about $2.5 billion worth of useless and wasteful tax loopholes identified by AFSCME that could be closed (hurting the rich, helping the rest of us). That would save a lot of health and welfare programs.

San Francisco has choices, too. Downtown parking fees hit wealthier people; Muni fare hikes are a tax on the poor. A congestion management fee on downtown would overwhelmingly hit wealthier commuters; cuts in public health overwhelmingly hit the poor. The Tenderloin’s Community Justice Center hurts low-income people (and helps rich tourists and the hotels scare away the homeless).

The thing that kills me is that some of us have been saying over and over — for years and years — that the city needs to develop a better tax system (which will require a public vote) to minimize these cyclical crises. And some of us have been pointing out that a public power system would generate several hundred million a year (and that private power is sucking $600 million a year out of the local economy).

Do we have to keep blundering from disaster to disaster? For how long?

*

Money talks

0

› news@sfbg.com

The economy’s a mess, and the housing crisis, financial meltdown, and skyrocketing unemployment rates have left a lot of San Franciscans short of cash. But the flow of big downtown money into political campaigns hasn’t slowed a bit.

In fact, a tally of all 2008 monetary and in-kind political contributions logged in the SF Ethics Commission Campaign Finance Database shows that even in the face of the worst financial crisis since the Great Depression, money spent on local political campaigns in the city swelled to a whopping $20.6 million. That grand total, which does not include loans or so-called "soft money" like independent expenditures, is higher than that of any previous year recorded in the Ethics database, which tracks campaign spending back to 1998.

A review of the entire database paints of picture of how influence money flows in San Francisco: Six of the top 10 donors over the past 10 years are big businesses and downtown organizations that promote the same conservative political agenda. The campaign cash often wound up in the same few political pots — a handful of supervisorial campaigns and some coordinated political action committees.

And despite spending ungodly sums of money, downtown lost more races than it won.

More than half the total money spent in 2008 came from one source: Pacific Gas and Electric Co., which plunked down $10.2 million last fall for the No on Proposition H campaign against the San Francisco Clean Energy Act. That November ballot measure, which lost under PG&E’s barrage, would have paved the way for public power, initiating a process to make the city the primary provider of electric power in San Francisco with a goal of 50 percent clean-energy generation by 2017.

The powerful utility wasn’t only the biggest spender last year — it claims the No. 1 slot on a list of all campaign contributions spanning from 1998 to 2008, which the Guardian compiled using Ethics data. PG&E dropped a juicy $14.7 million into local political campaigns over that period, beating out runner-up Clint Reilly by more than $10 million.

Below are brief introductions to the 10 biggest spenders, 1998-2008.

They’ve got the power. The colossal sums PG&E has forked over to influence ballot measures over the years puts the utility in a category all its own. SF isn’t the only municipality where the company has poured millions into defeating a public power proposal. In 2006, when Yolo County put measures on the ballot to expand the Sacramento Municipal Utility District (SMUD), which would have edged PG&E out of the service area, the utility spent $11.3 million to try and keep it from happening.

Pay to the order of Clint Reilly. Reilly, the former political consultant, now runs a successful real estate company. While his name routinely comes up on the roster of campaign contributors, he owes his status as No. 2 to his 1999 campaign for SF mayor, into which he poured some $3.5 million of his own money. "Most of the money we give is for Democratic candidates or progressive politicians, or neighborhood-oriented issues," said Reilly, who also served as president of the board of Catholic Charities.

Committee on really high-paying jobs? Third in line is the Committee on Jobs, a political action committee that aims to influence local legislation affecting business interests. The PAC is bankrolled in part by the Charles Schwab Corporation, Gap, Inc., and Gap founder Don Fisher — all of whom surface on their own in our Top 30 list. With a grand total just shy of $3 million, the committee coughed up about $100,000 in campaign-related spending in 2008. Much of that funding went to similar political entities, including the SF Coalition for Responsible Growth, the SF Chamber of Commerce 21st Century Committee, and the SF Taxpayers Union PAC (see "Downtown’s Slate," 10/15/2008). This past November, the COJ also backed the Community Justice Court Coalition, formed to pass Proposition L, which would have guaranteed first-year funding for Mayor Gavin Newsom’s small-crimes court in the Tenderloin. Prop. L failed by 57 percent.

Bluegrass billionaire. San Francisco investment banker and billionaire Warren Hellman has dropped nearly $1.2 million over the years into local political campaigns, our results show. Dubbed "the Warren Buffet of the West Coast" by Business Week for his sharp financial prowess, Hellman co-founded Hellman and Friedman, an investment firm, in 1984. Hellman is known for putting on Hardly Strictly Bluegrass, an annual SF music festival. While he tends to contribute to downtown business entities such as the Committee on Jobs and the Golden Gate Restaurant Association, in 2008 he devoted $100,000 to supporting a June ballot measure, Proposition A, that increased teacher salaries and classroom support by instating a parcel tax to amp up funding for public schools.

Fisher king. Don Fisher, founder and former CEO of Gap, Inc., is another one of SF’s resident billionaires. While Gap, Inc. turns up in 17th place in our results, Fisher himself has poured more than $1.1 million into entities such as the Committee on Jobs, SFSOS, the San Franciscans for Sensible Government Political Action Committee, and other conservative business groups. Fisher’s total includes money from the "DDF Y2K family trust," a Fisher family fund that shows up in Ethics records in 2000. In that year, $100,000 from that trust went to support the Committee on Jobs’ candidate advocacy fund, and another $40,000 went to a pro-development group called San Franciscans for Responsible Planning.

Not a very affordable campaign, either. Sixth up is Lennar Homes, the developer behind the massive home-building project at Hunters Point Shipyard, which the Guardian has covered extensively. The vast majority of its $1 million reported spending was directed to No on Prop. F, a campaign sponsored by Lennar to defeat a June ballot measure that would have created a 50 percent affordable-housing requirement for the Candlestick Point and Hunters Point Shipyard development project. The measure failed, with 63 percent voting it down.

Chuck’s bucks. Charles Schwab Corp., which set up shop in San Francisco in the mid-1970s, is an investment banking firm that reports having $1.1 trillion in total client assets. The corporation ranks seventh in our Top 30 list, with some $973,000 in donations. In 27th place is Charles R. Schwab himself, the company’s founder and chairman of the board (and the guy they’re referring to in those "Talk to Chuck" billboards posted all over SF). If Schwab’s individual and corporate donations were combined, the total would be enough to bump Warren Hellman out of fourth place. Schwab’s dollars are infused into the Committee on Jobs, the San Francisco Association of Realtors, the Golden Gate Restaurant Association, SF SOS, and other downtown-business interest organizations. "We’re a major company here in the Bay Area and a major employer," company spokesperson Greg Gable told the Guardian. "We’re interested in political matters across the board — it’s not limited to any one party." But it’s limited to one pro-downtown point of view.

The brass. The San Francisco Police Officer’s Association is another major player, spending some $913,000 since 1998 on political campaigns. The organization backed candidates Carmen Chu, Myrna Lim, Joseph Alioto, Denise McCarthy, and Sue Lee for supervisors in 2008, contributions show. All but Chu lost.

At your service. SEIU Local 1021 and SEIU 790 crop up frequently in Ethics data, with a grand total of about $860,000 in spending over the years. SEIU representatives recently turned out en masse at a Board of Supervisors meeting to urge the supervisors to support a June 2 special election to raise taxes in order to boost city revenues and save critical services from the hefty budget cuts that are coming down the pipe.

Friends in high places. No real surprises here: the Friends and Foundation of the San Francisco Public Library contributed its money to, well, ballot measures that would have affected the library. In 2000, for example, the F and F plunked $265 thousand into an effort called the "Committee to Save Branch Libraries — Yes on Prop. A."

Top 30 San Francisco campaign donors, 1998-2008

1. Pacific Gas & Electric $14,831,486
2. Clint Reilly $4,138,089
3. Committee on Jobs $2,970,857
4. Warren F. Hellman $1,191,970
5. Don Fisher (incl. Don & Doris Fisher Y2K trust) $1,164,286
6. Lennar Homes $1,002,861
7. Charles Schwab Corporation $973,176
8. S.F. Police Officers Association $913,834
9. SEIU Local 1021 & SEIU Local 790 $860,979
10. Friends & Foundation of the S.F. Public Library $858,082
11. California Academy of Sciences $818,154
12. Residential Builders Association of S.F. $753,857
13. Steven Castleman $665,254
14. S.F. Association of Realtors $647,299
15. S.F. Chamber of Commerce $614,824
16. SEIU United Health Care Workers West & Local 250 $585,937
17. Gap, Inc. $573,959
18. California Issues PAC $556,238
19. Corporation of the Fine Arts Museums $541,474
20. Wells Fargo $464,899
21. Building Owners & Managers Association of S.F. $464,027
22. Bank of America $429,316
23. Golden Gate Restaurant Association $422,685
24. SF SOS $407,491
25. AT&T Inc. and affiliates $404,704
26. Clear Channel $391,783
27. Charles R. Schwab (individual) $362,250
28. Yellow Cab Cooperative $344,907
29. S.F. Apartment Association $280,376
30. San Franciscans for Sensible Government PAC $279,009

Local Artist of the Week: Jane “In Vain” Winkelman

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LOCAL ARTIST: Jane "In Vain" Winkelman

TITLE The Morgue Welcome (1996, 16 by 20 inches, acrylic on arches paper)

STORY "The constant violence, chaos, stress, rootlessness, illness, death that folks under poverty endure 24/7 … the fact that chronic crisis is the nightmare that is our life … and instead of society lightening this barrage for us, it seems that public policies blame the victim and heap even greater sadistic mockery our way, not helping but actually creating even greater torturous injuries … like sending the menial low-paying jobs to even lower-earning workers across this cesspool planet … or giving the super mega-millionaires and billionaires even bigger bonuses while we struggle to stay alive."

WEB www.janeinvainwinkelman.blogspot.com

Editor’s Notes

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› Tredmond@sfbg.com

Muni is heading for a hiring freeze and delaying system improvements at the same time that Mayor Gavin Newsom says this is "not a time to raise fees and taxes on business." The head of the California High-Speed Rail Authority is fighting with the head of the Transbay Terminal project over money to extend train tracks downtown. The United States of America is bailing out car companies that have been fighting for years against tougher emissions standards and still can’t seem to make fuel-efficient vehicles. And we’re all worried about global warming and a deepening recession.

I’m not getting this.

Historians and economists can argue forever about the causes of the Great Depression, but most people agree about what brought it to an end: massive, over-the-top levels of public spending. Huge investments in infrastructure. Huge investments in employment programs.

Tax cuts didn’t end the Depression. Government layoffs and belt-tightening didn’t end the Depression. Under President Roosevelt, the government taxed and spent, borrowed and spent — and spent and spent and spent — starting with the New Deal and continuing through the gigantic reindustrialization of America known as World War II. And money went into things that actually created jobs — in many cases, public-sector jobs.

So now we’re in a period where San Francisco, California, and the nation desperately need new infrastructure . We need to shift, fairly radically, away from a car-based transportation system to one based on energy-efficient transit, particularly trains. We need to profoundly shift the electricity grid, away from nuclear and fossil fuels (and away from private control). All these things create jobs. It’s kind of a no-brainer.

California just approved $9.9 billion in bonds for a high-speed rail system between San Francisco and Los Angeles. But even that money isn’t going to be enough, and progress is going to be slow. Take 1/10th of the $800 billion the federal government is putting into propping up big banks and spend it on an emergency plan to build high-speed rail all the way from Seattle to San Diego, and imagine how many jobs that would produce. Jobs for planners, engineers, accountants, office-support people, steel fabrication, construction work, heavy equipment operators … jobs for college grads, jobs for high school grads, union jobs, steady jobs, jobs that train people for other jobs –tens of thousands of them.

Take another 10 percent of that and spend it building solar panels on every public building on the West Coast. Again: jobs of every sort, at every level. Mandate that all the work gets done in America, and you’ll develop an entire new industry or two (we don’t build trains in this country much, but we could, and we already have auto workers and factories that are about to be idled).

I hear some talk about this from the Obama administration, but I also hear some caution and some discussion about budget deficits and keeping the financial sector happy. Fact: the financial sector will be happy when a few million more people are working and spending money. That’s where the economy starts.

I just watched all 34 minutes of the economic segment of Newsom’s state-of-the-city YouTube extravaganza. In and around the rhetoric, he devoted a few moments to the city’s budget deficit and how he was going to institute a hiring freeze, lay off workers and consolidate departments. All wrong.

In fact, this is an excellent time to raise taxes and fees — on the rich, the well-off commuters, the big businesses, the billionaires … Shifting wealth from the top to the bottom, creating public sector jobs in the process, is an fine recipe for economic stimulus. At every level of government.

Obama v. McCain: How much will you pay in taxes?

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Barack Obama says 95% of Americans will get a tax cut if he’s elected. McCain says … well, whatever he’s saying that day or week. But what does it all mean for you? Under a McCain or Obama regime, how much of your hard-earned booty will the IRS demand for such indispensable national priorities as, say, endless wars of choice and making sure Wall Street billionaires don’t have to sell their second ski lodges? Now you can find out at this handy new website.

I entered a few different incomes into the calculator, starting low and adding a couple-ten thousand each time. And, if this magical contraption of the netwebs and intertubes is to be believed, it does appear that Obama’s tax plan will save people making under $125,000 a few hundred bucks a year. Note: I did not enter deductions, investments, assets, etc. – just straight income.