Democrats

Editorial: It’s the insurance companies, stupid!

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There’s too much at stake here to accept an industry-backed plan masquerading as reform

EDITORIAL It’s hard to imagine a better time for real, lasting health care reform. A popular president with a reform mandate has made it a top priority. The Democrats control both houses of Congress, with enough votes in the Senate to block a filibuster. Medical costs are soaring, driving individuals and businesses into bankruptcy. Even some big corporate executives, who recognize that the United States can’t compete in the global economy when companies have to spend so much on employee health insurance, are starting to come around.

So why is the bill working its way through Congress so incredibly weak?

One reason: the private insurance industry is still calling the shots.

In fact, from the very beginning, private insurers were involved in the policy discussions. Nancy Ann DeParle, President Obama’s senior health policy advisor and the White House point person on reform, brought the industry into the room on day one. Sen. Max Baucus of Montana, who heads the Finance Committee that is now considering the bill, received more contributions from the insurance industry than any other Democrat in the Senate.

And as long as the needs of an industry that makes profits by denying medical coverage to sick people matter more than the needs of the American people, there’s not going to be a decent reform bill.

This is the way the budget deal ends — badly

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By Tim Redmond

We all know that the main reason we don’t have a budget deal is that everyone — but particularly the governor and the Republicans — wants to escape from this mess with his or her political hide intact. The GOP members all signed a moronic pledge never to raise taxes, and the ones who wind up voting for even minor tax hikes get slammed in their home districts. The Democrats don’t want to cut education or health or other essential services, but have been far more willing to compromise. The governor just wants to look tough.

Seriously — he just wants to look tough, and the longer the standoff continues, the more he gets this sort of press, and the more his abysmal poll numbers go up.

So now the talks are still stalled and the state is losing $25 million a day just to make a washed-up action-movie star happy with his image.

Even after the “big five” — the leaders of the Legislature and the guv — come to a deal, it’s no sure thing. Because in the past, all of the Republicans have refused to vote for deals that their own leadership and their own governor have put together.

And some Democrats may not vote for it, either. Senator Leland Yee of San Francisco told me he won’t vote for any cuts to education. “The Republicans have drawn a line and said no new taxes,” he told me. “We need to draw a line and say no more cuts to health care and education.”

In fact, in the famous late-night session that almost led to a budget deal last week, Yee was holding out, refusing to go along with the cuts until State Sen. President Darrell Steinberg called the lobbyists from the teacher’s unions at 11:30 pm and told them to tell Yee it was okay to accept the leadership plan.

Yee, of course, wants to be able to say after the dirty deal is done that he refused to accept the cuts. So do a lot of the other Dems — but at some point, most of them will bit the bullet and accept some kind of bad deal to end the IOUs and keep the state afloat. Yee wants to see the GOP take some of the heat, too: “If the governor wants us to vote for a bad budget deal, he needs to make the Republicans vote for it, too,” he said.

Which also won’t happen.

So the most likely outcome is that the Democrats will be the ones voting for a shitty deal that screws all of the traditional Democratic constituencies.

I’m sick of being held hostage by Orange County. It’s time to split up this state.

Newsom’s poll numbers suck, but ….

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By Tim Redmond

This is not the kind of information a candidate for governor likes to hear, but the Chron reports today that Attorney General Jerry Brown is way ahead of Newsom among Democrats in the race for California’s next governor. Matier and Ross say

The poll by JMM Research of 525 Democratic and decline-to-state voters is the first snapshot since Los Angeles Mayor Antonio Villaraigosa announced last week that he wasn’t running.

With Villaraigosa in the lineup, the numbers read:

— Brown, 33 percent.

— Newsom, 20 percent.

— Villaraigosa, 17 percent.

Take the L.A. mayor out, and it’s:

— Brown, 46 percent.

— Newsom, 26 percent.

Brown does best with the voters over 40, who tend to turn out in bigger numbers on election day. Newsom thrives with the younger crowd, which he hopes to turn out big time, a la Barack Obama.

Geographically, Brown beats Newsom everywhere but the Bay Area.

But let’s be serious here: These early numbers mean exactly nothing. The race is a year and a half away, and this is nothing but name recognition and vague opinions based on current news media reports.

My take: Newsom’s toughest opposition would have been Villaraigosa, and with the L.A. mayor out of the way, he’s really the front-runner. Why? Because this is a textbook campaign — the new against the old, the fresh face against yesterday’s news, the guy who has only a very limited (and carefully crafted) record against the guy who has been around a long time and has done enough in his life to piss off both the left and the right.

I’m not a Newsom fan (in case you hadn’t noticed) and I’ve always liked Jerry Brown personally (although he was a horrible mayor of Oakland and is taking some awful positions). The fact that he’s in his 70s shouldn’t be an issue — he’s healthy, lively, full of energy, and to dis him because of his age is wrong on many, many levels … but that doesn’t mean the Newsom camp won’t (subtly) do it, and it doesn’t mean it won’t work.

I’m talking real, harsh politics here — and I’m betting that Newsom’s team isn’t a bit concerned with these poll numbers.

Mr. Prez — just don’t fuck things up worse

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By Tim Redmond

I heard a lot of discussion on KQED’s Forum this morning about President Obama and his affronts to the queer community, and several callers — all folks who claimed to be “supportive of the the LGBT community” — suggested that the president is doing the right thing by taking it slow. First, he has to fix the economic mess, restore the banking system, put about 10 million people back to work, close the Guantanamo Bay torture chamber and create a national health-care system. Then, after he takes a little nap and has a nice healthy snack, he can get to work on human rights and equality.

Bill Clinton, one caller said, screwed everything up by moving too fast; his health-insurance reform collapsed, Congress wouldn’t go along with allowing gay people to serve openly in the military, and before long, the Republicans were kicking his ass all over Washington.

I know the song: A president only has a certain amount of political capital, and he can’t just go flinging it all around at once. And he needs Congress for his health plan, and overturning the Defense of Marriage Act or Don’t Ask, Don’t Tell could alienate those same moderates who might be the swing votes on health reform. He also has to deal with Speaker Nancy Pelosi, whose district may include the single largest concentration of active queer people in the United States, but who long gave up representing San Francisco. She’s more worried about electing Democrats in conservative districts to keep her majority and her power — and if that means lesbian and gay people have to go the back of the bus for a while, oh well. That’s politics.

But there are so many things Obama could do, right now, without Congress (and without making a big fuss) that would make a huge difference to the queer community. He can’t get rid of Don’t Ask, Don’t Tell — but as commander in chief, he can simply order the office of the Judge Advocate General of each of the services to suspend indefinately all prosecutions seeking to discharge service members for homosexuality. The military doesn’t do everything right, but the one thing the leaders of that august institution understand is taking orders. Just tell them to stop kicking gay people out — and not to make a big deal of it. Then the problem will at least be something we can ignore while Obama is taking his sweet time and collecting political chits to deal with it properly.

Same thing with DOMA. I don’t know who exactly approved the legal brief defending that law — and I suspect somehow that Obama himself never read it — but that shit has to go. Just withdraw that brief, submit another one that doesn’t compare homosexuality to incest (and that’s kind of badly written and not particularly persuasive), and hope to god the government loses.

Yeah, the president ought to stand up publicly for equality — and unlike Willie Brown, who thinks that’s never going to happen, I suspect it will. By the end of his first term, he’ll come around. But in the meantime, Mr. President, remember the Hippocratic Oath of politics: First, don’t fuck things up worse.

Will the Assembly repeal the corporate tax breaks?

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By Tim Redmond

I talked to Assemblymember Tom Ammiano today, and he’s upbeat about the role his house may play in the budget process. He thinks the governor’s threat to shut down the state is just “scare tactics to make the Legislature look bad” and that the Assembly isn’t prepared to accept a “cuts only” budget. “We’re not going to roll over,” he said.

Among other things, he said, the $2.5 billion in tax giveaways to big corporations cpuld be repealed with a simply majority. So the Democratic leadership ought to be making that a priority, and talking it up in the media — would people rather see their state parks close and teachers be fired — or see a tiny number of giant businesses get more tax breaks?

Calitics points out that the CalTaxReform folks have identified $10 billion in new revenue measure that all appear to have majority support in the polls.

So let’s hope the top Democrats call Arnold’s bluff, and offer some real alterntives.

Is this really our only choice?

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By Tim Redmond

603newsom.jpg 603brown.jpg

Now that Antonio Villaraigosa appears not to be running for governor, the most populous state in the nation, the world’s eighth-largest economy, is headed for a very ugly choice. The Democratic Party has exactly two prominent candidates to run California — Jerry Brown, who has become a conservative with his no-new-taxes pledge and his tough-on-crime stuff, and Gavin Newsom, who has been a pretty awful mayor of San Francisco.

Is this the best that the state can do?

It might be — and here’s the problem. In a state this big, with more than 36 million people, a race for governor is all about image. It’s about television ads and media hype — and most people don’t pay attention to the details. Brown is ahead in the polls almost entirely because of name recognition; he’s the attorney general, has been govenor before, his dad was governor, he’s run for president — people have heard of him. Liberal Democrats who are older and remember when he was the dynamic young, progressive leader think back fondly to those days. Democrats who are more moderate look at his hard-ass love-developers-and-cops tenure as mayor of Oakland. Nobody has any idea how he would fix the state’s economy; I don’t think he knows himself.

Newsom is catching up, and will make this a close race, because he’s the new young face — and because he’s got a team of consultants and producers who are experts at creating false images. He’ll run as the “green mayor,” although he’s opposed the most important environmental measures in the city. He’ll run as a sensible leader who balanced a budget with no borrowing or taxes (although he’s doing it by destroying the local safety net). What most voters won’t see is the arrogant, petulant guy who has surrounded himself with fawning accolytes and nasty hit men. They won’t see a person who is way over his head in his current job, and has no business moving on to a much bigger one.

And that’s what we’ve got.

I wasn’t kidding last week when we talked about splitting up the state. It sounds like a radical idea, but think about it: If we were electing a governor of the coastal counties between Sonoma and Los Angeles, Jerry Brown wouldn’t even be a factor — and a lot of smart, experienced progressives would have a shot at the job. We wouldn’t be facing this ugly choice of finding someone either bland or conservative enough to appeal to the Central Valley. The voting population would be much smaller, and thus the vast sums of money that candidates have to raise would be significantly reduced.

We might even get a good governor.

In the meantime, we have to do better than this. Is there nobody else out there, no real change candidate who might actually be able to take on the serious problems facing California?

Editor’s Notes

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Tredmond@sfbg.com

What the voters turned down was a political deal, cut by five people in Sacramento — the governor and the Democratic and Republican leadership of the Assembly and Senate. The Republicans leaders weren’t even that involved at the end — it was two Democrats, Speaker Karen Bass and Senate President pro tem Darrel Steinberg, and Gov. Schwarzenegger, trying to make a budget pact work and then dragging a reluctant GOP legislator or two along.

The tax increases that were designed to help this year’s budget are in effect, approved by the Legislature. The Prop.1A–1B deal would have extended them an extra two years. The $6 billion that Props. 1C, 1D, and 1E would have "raised" (as the Chronicle described it) actually came from two things — cuts to children’s programs and mental health services and borrowing against future lottery proceeds.

What the voters rejected, among other things, was a provision that would have come awfully close to being a spending cap. It would have been this generation’s version of Prop. 13, a fiscal straightjacket demanded by antitax Republicans that the state would regret for years to come.

And the left opposed the deal as strongly as the right.

The real lesson: the voters don’t trust either Schwarzenegger or the Legislature. The state government is a godawful mess, and everybody knows it.

So this week, we talk about fixing things.

Let me start by quoting a man I have always held in utter disdain, the late right-wing economist Milton Freidman. Because he makes a valid point:

"It is worth discussing radical changes, not in the expectation that they will happen but for two other reasons. One is to construct an ideal goal so than incremental changes can be judged by whether they move the institutional structure toward or away from that ideal. The other reason is very different. It is so that if a crisis requiring or facilitating radical change does arise, alternatives will be available that have been carefully developed and fully explored."

I’m not sure that California, a state that now has 36 million residents and by current projection will have 60 million in the next 20 years, can possibly be governed by our current institutions and systems. It’s too big; it costs way too much money to run for office, run an initiative campaign, or communicate effectively to the voters. You can’t compete for statewide office without tens of millions of dollars. State senators represent almost 1 million people. Try running a low-budget, grassroots campaign in that universe. Initiative battles are so much more about money than they are about facts that the wrong side often wins. The major news media don’t cover Sacramento much anyway, so state politics come down almost entirely to cash and hype (witness the current occupant of the Governor’s Office).

We need more than just a Democratic governor and more Democrats in the Legislature. We need to rethink the way we run California. *

And it all went down

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By Tim Redmond

It’s no surprise that all of the governor’s measures failedl. The Chronicle is already doing what the mainstream spin is going to be:

The defeat of the measures would put the state that’s already in financial abyss into a deeper hole, but the voter rejection would further confirm Californians’ disapproval of the way Gov. Arnold Schwarzenegger and the Legislature are handling the state’s fiscal crisis

And:

The opposition, made up mostly of anti-tax groups and some labor unions, raised about $5 million .

Part one is absolutely true — the governor and the Legislature together have a dismal approval rating, and that just confirms the fact that something major, structureal is going to have to change in California. What the voters don’t like is gridlock. So the question for next year is: Can the Democrats convince the electorate (and the voters in some swing districts) that things would be better off if one party was running the show and could actually get results? Because the only way this paralysis is going to change is if (a) GOP moderates have a resurgence — fat chace — or (b) the Democrats take over the governor’s office and a strong majority in the Legislature and the voters get rid of the two-thirds rule for passing a budget and raising taxes.

That’s a hell of a sales job and will need an Obama-size movement behind it. So far, none of the Democrats running for governor give me much hope.

The second part of the Chron’s analysis is just wrong.

Yes, the money came from anti-tax zealots and some unions, but this defeat is the result of both the left and the right finding the compromise unacceptable. There was as much opposition from people who thought the notion of a spending cap was disastrous for the state’s future as there was from people who don’t want higher taxes.

And while the Democratic leadership tried their best to sell a bad deal to their constituents, the defeat here belongs to the governor, who has become California’s version of George W. Bush.

State of the movement

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news@sfbg.com

As local antiwar activists continue to oppose the Iraq and Afghanistan wars, they are struggling to mobilize popular support under a presidential administration that is less overtly bellicose than the Bush regime.

Antonia Juhasz, author of The Bush Agenda (William Morrow, 2006) and last year’s The Tyranny of Oil (William Morrow), has worked with a number of Bay Area antiwar groups. Over coffee in the Mission District, she said much has changed since President Barack Obama took office.

"It’s an amazing victory for the antiwar movement that we pushed people to elect a president who pledged to end the Iraq war. Now our job is to make that pledge a reality," she said, visibly tired from long work on a report about Chevron Corp.’s profiteering in Iraq and even at home in Richmond, where it’s sued the city to block a voter-approved tax increase.

Juhasz argues that all U.S. troops and contractors should leave Iraq immediately and that all bases be closed. But Obama’s plan includes a slower withdrawal timeline and for some U.S. forces to be left there indefinitely.

Medea Benjamin, cofounder of CodePink and Global Exchange, told the Guardian that Obama supporters need to realize that it’s fine to disagree with our first African American president on some policies. She described MoveOn.org, the prominent liberal organization that was a key player in Obama’s campaign, as "very top down," and focused on pro-Obama talking points. "It’s very hard because a lot of groups have become appendages to the administration."

Juhasz feels the antiwar movement needs to better communicate that "the organizing isn’t over when the campaign is over. Even if the leader agrees with you, they still need activists to push them."

But she acknowledges the difficulty of the task. "We want to keep from telling people they’re wrong. They won, which is great. But we need to say ‘You have the responsibility to keep organizing for the issues, not just the individual.’ It’s critically important to see beyond the leader, so it doesn’t become a cult of personality," she said, recalling that "under Franklin Delano Roosevelt, if there wasn’t a mass movement for revolutionary change, there wouldn’t have been a New Deal."

That kind of pressure is clearly not being exerted on Obama. Tom Gallagher, a San Francisco resident active with the Bernal Heights Democratic Club, told us during a March 21 San Francisco demonstration commemorating the sixth anniversary of the Iraq war, "If McCain had been elected there would be many more people here protesting. Obama is using the schedule Bush agreed to on pulling U.S. troops out of Iraq."

Gallagher grew more irked as he said, "Obama has sent 17,000 more troops to Afghanistan. He’s getting a pass on it, and McCain wouldn’t."

ANSWER (Act Now to Stop War and End Racism) has continued to agitate against war and for social justice. Richard Becker, ANSWER’s Western Regional Coordinator, told us the relatively low turnout on March 21 was not surprising.

Becker said he sees Obama’s popularity as "elation" over Bush’s exit. But no matter how bad the past or good the intentions of a candidate, once the candidate is elected U.S. president, he said, "the job description is CEO of the Empire." Becker cautioned that it will take time for postelection euphoria to wear off and for people to realize that wars in Iraq and Afghanistan are dragging on under Obama.

Local activist David Solnit, a mainstay of Direct Action to Stop the War, works with Courage to Resist, which supports military war resisters. The group also helps recruits fight "stop-loss," which sends soldiers back to Iraq for additional tours of duty without their consent. "Obama said he’s going to change it eventually, but we’re worried about right now," he said.

Courage to Resist organizer Sarah Lazare agrees with Solnit that peace activists should oppose U.S. military operations in Afghanistan. Lazare says it’s important to communicate that "Afghanistan is not a good war" and that "terrorism is a tactic" that cannot be destroyed militarily.

"Measuring the number of people at a demonstration is not the only way to measure what’s going on," she said. Among her examples of ongoing, dynamic organizing is the work of Courage to Resist and Iraq Vets Against the War.

IVAW is directly organizing active-duty members of the military to engage in dissent. SF Bay Area chapter member Peter Schlange told us that their ranks are growing as the Iraq war continues.

IVAW is also challenging the Afghanistan buildup. In a recently passed resolution, the antiwar veterans group "calls for the immediate and unconditional withdrawal of all occupying forces in Afghanistan and reparations for the Afghan people, and supports all troops and veterans working towards those ends."

Paul Kawika Martin, organizing and policy director for Peace Action, says his group wants all troops out of Iraq by 2010, with no "residual forces" or contractors left behind. Martin also says it’s important for activists to march and to lobby Congress. He stressed that both Martin Luther King Jr. and Ghandi lobbied for reform, and U.S. peace activists also need to do so.

Martin feels the peace movement will have an important impact on the new administration. "I don’t think he fears being too liberal," Marin told me. "But he wants to get things done, and like any politician he will be more pragmatic than we want him to be."

Martin said the troop escalation in Afghanistan was a concern for Peace Action. Martin is working with a group of 70 activists, think tanks, and aid workers who make up the Afghanistan Policy Working Group. He points to Reps. Raul Grijalva (now the co-chair of the House Progressive Caucus), Lynn Woolsey, Barbara Lee, and Maxine Waters as key allies of antiwar activists in Congress. "We need to support them," he told me.

The antiwar movement itself also needs support, given that many of its top activists have been arrested repeatedly in the last six years.

Organizer Stephanie Tang with the World Can’t Wait dismisses hope for Democrats as a trap. She pointed to Nancy Pelosi’s early knowledge of torture and Obama’s recent announcement that the administration would block release of torture photos in the courts. In March 2008, Tang was arrested for allegedly obstructing police at a Berkeley demonstration opposing a military recruiting center.

Walter Riley, Tang’s lawyer, told the Guardian: "It’s my contention they identified Stephanie as a leader and are vioutf8g her constitutional rights to protest an illegal war."

Berkeley police referred inquiries to the Alameda County District Attorney’s office, which had not returned our call at press time. Riley said a Berkeley policeman "blind-sided her," and, holding his club horizontally, slammed Tang off her feet.

Police later attempted to get a statement from Tang while she was receiving medical treatment for injuries sustained during the incident. Berkeley police only later charged her with obstructing police at the march. Tang faces one year in jail and a $1,000 fine.

Solomon: Obama and Anti-War Democrats

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Norman Solomon, the author of a dozen books including “War Made Easy: How Presidents and Pundits Keep Spinning Us to Death,” was an elected Obama delegate to the Democratic National Convention. He is on the advisory board of Progressive Democrats of America. For more information, go to: www.normansolomon.com.

Obama and Anti-War Democrats

By Norman Solomon

In mid-June, a warning shot from 1600 Pennsylvania Avenue landed with a thud on Capitol Hill, near some recent arrivals in the House. The political salvo was carefully aimed and expertly fired. But in the long run it could boomerang.

As a close vote neared on a supplemental funding bill for more war in Iraq and Afghanistan, the San Francisco Chronicle reported that “the White House has threatened to pull support from Democratic freshmen who vote no.” In effect, it was so important to President Obama to get the war funds that he was willing to paint a political target on the backs of some of the gutsiest new progressives in Congress.

Gov opens door, a bit, on legal pot

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By Tim Redmond

Well, Arnold Schwarzenegger didn’t actually admit that he favors legalizing marijuana, which he once referred to (after taking hit on camera) as “not a drug, it’s a leaf,” but he did say that the state ought to have a debate on the issue. That’s possibly good news for Assemblymember Tom Ammiano, who has a bill to legalize pot that’s not exactly moving forward fast. Some of the Democrats in Sacramento are more afraid of the Demon Leaf than the guv is.

I don’t know if Arnold still does the 420, but I know he realizes that his budget plan is heading for defeat. And legalizing and taxing the state’s biggest cash crop would do wonders to boost state revenue.

UPDATE: Just talked to Ammiano, who told me that “I’m predicting something pretty good comes out of this.” WIth polls showing more than half the state supports legal pot, even the Democratic leadership, which has been loathe to move the Ammiano bill foward, may be ready at least to discuss the issue.

“The opposition is shrinking and the proponents are growing,” he said.

So it will be interesting to see how the Democratic candidates for governor shake down on this. “Gavin Newsom has trapped himself by saying no,” Ammiano noted. Can’t wait to hear what ol’ Jerry Brown has to say.

Arnold’s big hoax

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The choice facing California voters May 19 is, to put it mildly, unpleasant. The budget deal hammered out by the governor and legislative leaders — which these six ballot measures will confirm and implement — at least kept the state solvent and prevented a financial catastrophe. But the solution is just terrible, and will lock the state into a budgetary nightmare for years to come.

State Sen. Mark Leno, who supports the deal, makes no attempt to soft-peddle what went on here. It was, he told us, the result of "extortion." Because California has an arcane and counterproductive rule mandating that any state budget and any tax increases must be approved by two-thirds of both houses of the Legislature, and because Republicans control just enough votes to block any budget, and because those Republicans have all signed a written promise never to raise taxes under any circumstances, and because Gov. Arnold Schwarzenegger can’t get the GOP to go along with his compromises and is unwilling to accept Democratic proposals that might escape the onerous supermajority, budget stalemate in tough times is almost guaranteed. And in this case, because the state was running out of cash and hundreds of thousands of people were about to be put out of work as state-funded projects shut down, the Democrats were forced to accept a compromise none of them like.

A small number of Republicans insisted on vast changes in the way California does business — and because the Democrats saw no other options, the GOP faction got much of what it wanted. The result: the Democratic Party leadership is campaigning for a series of measures that reflect, to a significant extent, a Republican view of how the state should be run.

The opposition to the package comes from the far right (which is upset because the budget deal includes some new taxes, albeit regressive ones) and, increasingly, progressives, who argue that the measures will make it harder for the state to meet the needs of a growing (and aging) population.

We’ve listened to both sides, researched the measures in depth, and concluded that the best choice for Californians is to reject Propositions 1A through 1F. The proposal may address (most of) this year’s budget woes and keep the state running for a while, but it will create a fiscal straightjacket on the order of Proposition 13 that will damage California and undermine any progressive policy hopes for many, many years into the future. If the voters accept this deal today, they’ll come to regret it.

Proposition 1A doesn’t quite reach the Republican holy grail — a cap on annual government spending — but it goes a long way in that direction. The measure would require the state to make annual contributions to a budget reserve fund until the reserve reaches 12.5 percent of general fund revenue. The state would have to set aside reserve money every year, even in very bad years. If next year’s budget deficit is as bad as this one, Prop. 1A would make it worse. It restricts the use of "unanticipated revenues" — meaning the state can’t spend money it might have in very good years. There’s a really complicated formula for when the state can dip into the reserve, and how it can be used, but the California Budget Project, the respected policy watchdog group, points out that the measure amounts to a cap in spending, one that won’t keep pace with California’s needs.

"Prop. 1A would not address California’s existing structural shortfall — the gap between revenues and expenditures — that exists in all but the best budget years," CBP notes. "By basing the new cap on a level of revenues that is insufficient to pay for the current level of programs and services, Prop. 1A would limit the state’s ability to restore reductions made during the current downturn out of existing revenues."

The guidelines for future spending don’t take into account the increased demand for public services California will face in the next few years. The population will increase by 29.4 percent over the 2000 level by 2020, state officials project, but the number of people 65 and older will increase by 75 percent. That will put a huge new demand on state services — and if Prop. 1A passes, the budget won’t be able to expand to meet those needs.

The budget compromise included some temporary tax increases. The sales tax is slated to go up by one cent on the dollar, the vehicle license fee will rise slightly, and there’s an across-the-board increase in income taxes. Sales taxes are the most regressive way to raise revenue, and the income tax hikes hit the rich and the middle class evenly — hardly a fair or progressive plan.

But that money is needed to close the horrendous budget gap, and the propositions are designed to make it hard for progressives to say no. If Prop. 1A and Prop. 1B go down, the taxes expire after two years. If those measures pass, the taxes continue until 2012.

Prop. 1B is part of a deal that the governor cut with the California Teachers Association, the largest union of educators in the state. It shifts some more money to the public schools to make up for what was cut this year and last. It’s a complicated formula, but in effect it probably does nothing more than what Prop. 98 — the state’s mandate to fund education — already requires. The problem is that the governor and the school districts disagree on what Prop. 98 says, and without 1B, it’s unlikely that money will be forthcoming. The money California’s public schools get under 1B is still woefully inadequate; and again, this does nothing to address the structural problems.

Prop. 1C allows the state to borrow $5 billion from future lottery revenues to help balance the current budget. Of course, that money won’t be available in future years — unless, as 1C suggests, the lottery can find ways to sell more tickets. The idea here: increase lottery revenue through better marketing, thus taking more money from poor people (the lottery is an overwhelmingly regressive source of income).

Prop 1D’s title, "Protects children’s services funding," is a complete lie. Instead it redirects money earmarked for early childhood programs into the general fund, essentially de-funding some of the most effective and inexpensive programs California offers. Prop. 1E is a similar deal — it temporarily suspends the program that funds mental health services with a tax on the very rich, and puts that money into the general fund instead.

Prop. F is just stupid — it prevents lawmakers and the governor from receiving pay increases when there’s a budget deficit. That’s not going to change anything in Sacramento.

We’re acutely aware of the risks inherent in voting down this intricately orchestrated budget compromise. In effect, the Legislature, which has been paralyzed by the two-thirds rule, will have to go back and try again. The governor, who is ineffective at best and a severe roadblock at worst, will be little help. And the anti-tax forces will claim that the voters have vindicated their position.

But let’s look at reality. The tax increases will be in effect for the next two years anyway. The state’s budget position has worsened in the past month, so the Legislature will have to figure out how to deal with an $8 billion additional shortfall no matter what happens.

And in the fall of 2010, state voters will almost certainly have a chance to repeal the two-thirds budget rule — and have a good chance to elect a Democratic governor.

California needs major, structural budget reform. If we thought this were just a temporary painful deal that would postpone the worst of the state’s problems until Schwarzenegger and the GOP obstructionists were gone, we’d be tempted to support the package. But these measures lock the state into an unacceptable budget situation forever.

Vote no on 1A–1F.

Editor’s Notes

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Tredmond@sfbg.com

Gray Davis was a pretty poor governor. He ran as a moderate who could manage the state, but utterly failed to deal with the energy crisis of 2000-01, leaving rolling blackouts and skyrocketing electricity bills as his legacy. He cost the state billions. He presided over a legislative budget stalemate. He was a captive of the California Correctional Peace Officers Association. He gave the Democratic Party a bad name.

And for all that, nothing he did was close to what his replacement, Arnold Schwarzenegger, and the Republicans in Sacramento are doing today.

Under Gov. Davis, California reduced the size of public school classes, mandating that K-4 teachers have no more than 20 students. That has made a huge difference in the classrooms, and the results show it. But it’s going to be almost impossible for most school districts to stick to that target now, because the schools are getting huge budget cuts.

So are all the other state services, and aid to counties, which means more layoffs and cuts at the local level. And still, the state is $8 billion more in the hole.

Democrats in the Legislature have tried everything they could think of. They negotiated with the Republicans, who have a veto over the budget because of the crazy two-thirds rule. They came up with a plan that fit what Schwarzenegger had been asking for, and he still refused to accept it. And now the Democratic leadership is forced to try to sell a series of state propositions that nobody likes, that will put California in worst financial straights, and that will have as bad a long-term impact on the state as Proposition 13.

Propositions 1A-1F are a terrible deal, the result of GOP blackmail and extortion — and they won’t even solve the problem. This governor is going to leave the state in the worse shape it’s been since the Great Depression. Almost makes you long for the days of Gray Davis.

In 1967, at the height of the antiwar movement, when American cities were in political chaos, a young tenant organizer named John Ross ran for San Francisco supervisor as a radical out of the Mission advocating rent control and an end to U.S. involvement in Vietnam, among other things. But one of his opponents discovered that Ross was a convicted felon who served two years and six months in federal prison for refusing the draft, so they took his name off the ballot.

Now, 42 years later, Ross — the writer, poet, unrepentant radical, and longtime Guardian correspondent, may be getting some recognition from the city. Sup. John Avalos is going to introduce a resolution honoring Ross for his extensive literary and political contributions to San Francisco. The May 12 ceremony, at 3:30 in the Board of Supervisors chambers, will be followed by "poems under the dome" — a poetry reading at City Hall at 5:30. If you want to help out (or donate money — please) contact Diamond Dave Whitaker at 240-0286 or Avalos’ office at 554-6975. *

Arnold’s big hoax : Vote no on 1A-1F

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A legacy of debt: Gov. Schwarzenegger is trying to force the state into a fiscal straightjacket.

Props. 1A–1F would damage public services and lock the state into a fiscal straightjacket — forever. Vote no.

The choice facing California voters May 19 is, to put it mildly, unpleasant. The budget deal hammered out by the governor and legislative leaders — which these six ballot measures will confirm and implement — at least kept the state solvent and prevented a financial catastrophe. But the solution is just terrible, and will lock the state into a budgetary nightmare for years to come.

State Sen. Mark Leno, who supports the deal, makes no attempt to soft-peddle what went on here. It was, he told us, the result of "extortion." Because California has an arcane and counterproductive rule mandating that any state budget and any tax increases must be approved by two-thirds of both houses of the Legislature, and because Republicans control just enough votes to block any budget, and because those Republicans have all signed a written promise never to raise taxes under any circumstances, and because Gov. Arnold Schwarzenegger can’t get the GOP to go along with his compromises and is unwilling to accept Democratic proposals that might escape the onerous supermajority, budget stalemate in tough times is almost guaranteed. And in this case, because the state was running out of cash and hundreds of thousands of people were about to be put out of work as state-funded projects shut down, the Democrats were forced to accept a compromise none of them like.

Ammiano roasts the Democrats

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Today’s Ammianoliner:

The state Democratic convention: The dysfunctional meets the disenfranchised.

(Assemblyman Tom Ammiano, operating from his Sacramento perch, putting forth his Ammianoliner on his home answering machine in San Francisco on Sunday, April 26, 2009).

Daly and the Democrats

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42009daly.jpg 420longo.jpg

Daly, Longo

By Tim Redmond

The race between Chris Daly and August Longo for regional director of the California Democratic Party has gotten a blog lot of blog press — far more attention than this low-lvel internal party stuff garners. Frankly, most people have no idea what a regional director does, or why it ought to matter to them.

But there’s a lot more going on here than what the cynics see as Daly looking for a new job when he’s termed out of office. (By the way, this isn’t exactly a job — the regional directors aren’t paid. It’s a volunteer position. And other than the chance to move up in state party leadership, it’s not a job that carries a lot of power or influence. Honestly — how many of you even knew that Longo was the ten-year incumbent?)

At the last state convention, there were signs everywhere that the Howard Dean wing of the party, the young, tech-savvy activists who were coalescing around Barack Obama, was getting restive. You saw it at the Resolutions Committee, where a handful of party-reform measures popped up, and were nadily shot down by state party Chair Art Torres. You saw it when Hillary Clinton was booed over Iraq. The Old Guard kept control, but you got a sense that the energy was all on the other side.

And now that Obama’s in the White House, that reformer energy will be even more visible in Sacramento this weekend. The Daly-Longo race won’t by itself change the party, but it will be a signal about its future direction.

What’s in the Republicans’ tea?

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By Steven T. Jones
alice_party.jpg
As overhyped and ridiculous as tomorrow’s Republican Tea Party events are, I find them a fascinating manifestation of the perplexing posture of victimhood that the US ruling class and its right-wing shills seem to revel in. So I might just have to pop down to Civic Center Plaza from 11 a.m. to 1 p.m. tomorrow to see San Francisco’s festivities.

The US has one of the lowest rates of taxation in the industrialized world. Fiscal conservatives have been calling the political shots in this country since 1980, resulting in an extraordinary consolidation of wealth, a threadbare social safety net, and an economic system collapsing because we refused to regulate greed and corruption.

“Yet on this Tax Day, all taxpaying Americans should be concerned that Nancy Pelosi and the Democrats’ runaway tax hikes will be the death of America’s economy as they extend the ‘Pelosi Recession,’” warned National Republican Congressional Committee director Guy Harrison in an alarming mass e-mail. “This week, thousands of patriotic Americans will gather to protest oppressive government taxation, and stand as one for fiscal sanity at tea parties across the nation.”

Really? We should all be alarmed that Congress and President Barack Obama are considering increasing the upper income tax bracket by a couple of percentage points? Frankly, I’m pissed that they’re being too timid in getting our money back from the rich motherfuckers who stole it. And I certainly feel that our corporate-sponsored political system is essentially taxation without representation from those of us who can’t afford a campaign contribution.

So maybe we’re all a little indignant.

Lennar’s housing scam, redux

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By Steven T. Jones

Our post the other day on how Lennar and its allies misrepresented promises to build 32 percent affordability into its 10,500 homes proposed in southeastern San Francisco has earned us indignant calls from the Labor Council and ACORN. But at the end of each of those conversations, my belief that the city is getting a raw deal has only been strengthened.

Sure, these organizations and the city are collectively getting millions of dollars from Lennar. But if construction of affordable housing in the part of town with the lowest income San Franciscans is the concern, as it rightfully should be, it’s clear that Lennar has gotten one helluva deal, thanks to Mayor Gavin Newsom and other establishment Democrats.

Lennar gets free land from the city and free cleanup money from the federal government. Then they build market rate units (in a real estate market that’s already oversaturated with them), except for the same 15 percent below market rate units that every other developer in town (most of whom pay for their land) is required to build. And then they give some of our land back to us to build more affordable units, at the public’s expense.

Please, somebody out there explain to me why this is such a great deal for San Francisco.

Shielding Goni

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news@sfbg.com

Top Democratic Party pollster Stanley Greenberg rolled into San Francisco last month to promote his latest book, Dispatches from the War Room — In the trenches with five extraordinary leaders (2009, St. Martin’s Press). The slight, bespectacled man spoke at the Commonwealth Club, sharing what he hoped were "honest and frank" accounts of working with leaders such as Nelson Mandela and Bill Clinton.

While he happily pontificated on the lessons these experiences held for President Barack Obama, he was a bit more defensive on why he had proudly featured in the book Gonzalo "Goni" Sánchez de Lozada, former president of Bolivia who is currently wanted for his role in a massacre of 67 people in October 2003.

Greenberg was drafted in 2002 to help Goni, a wealthy University of Chicago-educated businessman, get elected president during a time of social upheaval created largely by U.S.-backed neoliberal economic policies. Branding Goni as the only man who could "resolve the crisis," Greenberg and other U.S. political consultants helped their client scrape an electoral victory with just 23 percent of the popular vote.

The deaths took place less than a year later when Goni announced deeply unpopular plans to privatize the country’s natural gas reserves and give foreign corporations more control over Bolivia’s resources. Road blockades erected by protesters in the poorest outlying neighborhoods of the high altitude city of La Paz effectively cut off supplies. Goni signed a decree that instructed the army to clear the roads and promised "indemnification for any damage to property and persons which might occur." That effective carte blanche resulted in the army shooting live ammunition indiscriminately at men, women, and children.

Military repression brought to a head one of the country’s bloodiest years, in which more than 150 people died in social protests. Rising popular anger led Goni to flee the country to exile in the United States. He has since lived comfortably in Chevy Chase, Md., protected by Republicans and Democrats alike.

Greenberg admits in the book that the violence caused him "to take stock," yet he ends up saying he is now "more certain of my course and his [Goni’s]." He concludes: "I am proud of what we did to help Goni become President." From the podium at the Commonwealth Club, he blamed the atrocities on the supposed "parallel violence" by the protestors.

It seems a surprising conclusion for a man who is supposedly in touch with the electorate. Goni is universally reviled in Bolivia as a corrupt and arrogant politician who devalued Bolivian lives. Even Goni’s Vice President Carlos Mesa denounced him and swore that he would never use violence to enforce policies. Two-thirds of Bolivia’s Congress — including many who had formed part of Goni’s coalition — approved a trial seeking responsibility for the massacres. Disgust at Goni’s "free market" (or neoliberal) economic and social policies, which increased poverty and inequality, was partly behind the landslide 2005 electoral victory of one of the leaders of the protest movements, Evo Morales.

Yet sadly, Greenberg’s positive spin of Goni seems to be a view that is widely shared with the Democratic Party. At a Washington launch event for Greenberg’s book, Speaker of the House Nancy Pelosi also appeared to hold Goni in high esteem, warmly welcoming him to the event and calling him a "very special man." Goni’s former defense lawyer, Gregory Craig, is now Obama’s White House counsel. The Democrats’ historic loyalty to one of their favored pro-American friends seems to outweigh their commitment to human rights and fair legal process.

Rogelio Mayta, the resolute lawyer representing the families whose loved ones were killed in October 2003, tries to give Pelosi the benefit of the doubt. "We want to believe in the good faith of … Pelosi and believe that these praises are due to misinformation rather than a concrete line of action and thinking by the U.S. government," he said.

Yet the anger of Eloy Rojas, who lost his eight-year-old daughter when troops entered his village and started shooting indiscriminately, is harder to hide. "Every effort that allies of Sánchez de Lozada make to present the ex-president as a victim and an honest man is for us an offense. It is an offense against the pain and suffering that his terrible actions had for our lives. His determination to defend his and other people’s economic interests meant that he stopped valuing peoples’ lives … That is why we continue to seek justice."

In March, Bolivian families who lost loved ones marked a significant milestone in their struggle to end the legacy of impunity for political elites like Goni. After five years of navigating political games and legal loopholes, a date was set for the trial of responsibility for Goni and seven of his ministers. Yet the main defendant, Goni, will be missing because the U.S. government has ignored requests for extradition for several years.

Many in the U.S. and worldwide continue to hope that Obama’s inauguration will mark a new chapter in relations worldwide, especially in Latin America, where there has been a new wave of resistance against U.S. attempts to impose its economic interests. Obama has made some important first steps in ordering closure of the Guantánamo Bay detention facility and reinvigorating the use of diplomacy in regions such as the Middle East. But if he really wants to start a new chapter of international relations rooted in human rights, he doesn’t need to travel abroad. He just needs to respond to Bolivia’s lawful request for extradition and send home the man who lives just seven miles from the White House. 2

Nick Buxton is a British journalist who was based in Bolivia for many years before moving to San Francisco last year. His blog, Open Veins, is at www.nickbuxton.info.

DCCC supports sanctuary & due process for all

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The Democratic County Central Committee voted last night by an overwhelming majority (20 ayes, 5 abstains, I no) to support Debra Walker’s strong resolution, recommitting “support of the Constitution and our city’s Sanctuary Ordinance for all,” and rejecting Scott Wiener’s watered-down version (19 noes, 3 abstained, 5 ayes).

Walker, who plans to run for District 6 supervisor, when incumbent Chris Daly is termed out next year, says DCCC’s vote made her, “ feel good about the party.”

“It’s been way too long that this has been happening and we have done nothing substantive, on the part of the party,” said Walker, noting that a companion resolution asking President Barack Obama to stop the ICE raids will be introduced next month.

Last night’s vote came after several dozen immigrant residents attended the DCCC hearing and testified about the impact of San Francisco’s new policies toward immigrants.

As Angela Chan, staff attorney for the Asian Law Caucus told the Guardian, “One teenage girl bravely stood before the DCCC and said that as a result of the change in climate in San Francisco toward immigrants, she lived in fear each day that she would come home to find that her parents had been taken away by ICE. Another immigrant resident said that if the DCCC takes a stand to support immigrants, he would raise his children to become proud Democrats. Another immigrant resident, who was a mother and a child care provider for many families in SF, said it is difficult to know that the image of criminality is being projected onto her and her community, when most members of the community are hardworking, law-abiding, and family-oriented people.”

Chan says she appreciated the supportive comments she heard from Sups. David Campos, Daly, Robert Haaland, Michael Bornstein, and resolution co-sponsors Walker and Peskin.

“They demonstrated a strong commitment to upholding immigrant rights and a deep understanding of the contributions of immigrant residents to San Francisco,” Chan said. “I hope Mayor Newsom will take the cue from his own party (and his own residents), and swiftly move to rescind his undocumented youth policy and work with the immigrant community to develop a more thought-out and balanced policy that respects the due process rights of youth and the goals to the juvenile justice system.”

That vote confirms that Mayor Gavin Newsom’s decision to do an about face last summer on San Francisco’s long standing sanctuary city ordinance is coming back to haunt him, as the gubernatorial race heats up.

Asked if the policy direction that Newsom ordered in 2008 guarantees due process for all, Newsom’s communications director Nathan Ballard did a classic obfuscation, telling the Guardian, “Yes. It was thoroughly vetted by the city attorney.”

But according to the City Attorney’s office, the original ordinance never did assure due process, “ if an individual was arrested for felony crimes.”

As for the revised policy direction, it directs police officers to report any juvenile “suspected of being present in the United States in violation of immigration laws,” and “booked” for commission of a felony” to federal immigration authorities,

The language, which is contained in the juvenile probation department’s policies and procedures section, directs officers to take into consideration, amongst other things, prior criminal history and “presence of undocumented persons in the same area where arrested or involved in illegal activity.”

To Walker’s mind, such direction amounts to a, “slippery slope.”

“It puts a lot of discretion in the hands of the police on the streets, and can end up with juveniles being referred to ICE and taken back to their country of origin, without any representation,” Walker said.

Ma leads fight against Tibet resolution

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By Tim Redmond

San Francisco Assembly member Fiona Ma led the battle in Sacramento to derail a pro-Tibet resolution, leaving some activists scratching their heads.

Sure, the measure was sponsored by a Republican, Sam Blakeslee, R-San Luis Obispo, and sure, that made some Democrats nervous. But frankly, it wasn’t that big a deal — the Assembly passed a virtually identical resolution last year, honoring the Dalai Lama. The U.S. Congress has passed stronger pro-Tibet resolutions.

Ma, however, insisted it would harm U.S.-China relations:

“[The Obama] administration has been proactively engaging in diplomacy with China including human rights,” Ma said. “I believe we shouldn’t undermine the proactive efforts being done at the federal level.”

I asked her by email why it was fine to pass a pro-Tibet resolution last year, but not okay this year. Her response:

Last year was a different time and situation. I asked to send this Resolution back to committee for further review. I’m proposing amendments so will let you know what happens.

Tom Ammiano, who also represents San Francisco, scoffed at the move to send the measure to the Rules Committee, which typically means a bill is dead. “I wanted it voted on on the floor,” he told me. “It had the votes to pass.”

Typically, sending a bill

Ammiano’s struggle on pot, BART cops

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By Tim Redmond

Assemblymember Tom Ammiano is finding that the moderate Democrats up in Sacramento can be just as annoying as the Republicans. Take two of his top priorities right now, a bill to force the BART police to adopt civilian oversight, and a measure to legalize marijuana.

The BART police measure is going to the Public Safety Committee, chaired by Jose Solorio, a moderate Democrat from Santa Ana.

Some of Ammiano’s Democratic colleagues are nervous about even bringing the bill up for a hearing. “They say is an incendiary situation, that even talking about this could cause riots. I’ve told them the opposite — that if there’s any whisper that we’re screwing around with this bill up here, that when the trouble is going to start.”

The pot bill is scheduled for a hearing in Public Safety March 31, and again, Ammiano worries that “they’re not taking it seriously.” They should — all the signs around the coutnry are changing. The federal government is going to stop chasing after medical pot clinics.
This is a way for the state, which is facing even more serious red ink than the governor admits, to bring in a billion dollars or so in taxes — not to mention the amount saved by not wasting police time (and jail space) on marijuana.

Losing the tax argument

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EDITORIAL The lead topic on the local cable TV show City Desk News Hour Feb. 21 was the state budget, and a panel of local reporters were talking about the mix of tax increases and service cuts the Legislature finally passed. After a bit of back and forth, Scott Shafer, host of KQED’s California Report, piped up. "Everyone knows it’s a bad idea to raise taxes in a recession," he said.

Shafer, who was a press secretary to former Mayor Art Agnos, is hardly a conservative commentator. In fact, at the risk of damaging his credentials as an unbiased reporter, we might even call him a liberal. And to judge from the response of most of the panel, nothing he said was particularly controversial. Sure, raising taxes in a recession is bad; so is cancer, and violent crime. Next question.

But that’s not just a limited viewpoint — it’s factually inaccurate. Raising taxes during a recession can be an excellent economic idea, if it’s done right. Because the one thing almost every credible economist outside of the far-right intellectual swampland agrees on these days is that cutting government spending during a recession is a terrible idea — and if the only way to keep the public sector jobs, the social services, and the welfare payments going is to raise taxes, then raising taxes on those who can afford to pay is not only good politics, it’s good policy.

And it’s infuriating that this point seems to have dropped out of the mainstream of debate. That’s a major failure of the Democratic leadership, in California and nationwide.

Historians can argue forever about the direct impact the New Deal had on ending the Great Depression. But it’s pretty clear that what Nobel Prize winning economist Paul Krugman calls the great jobs program of World War II turned the American economy around. And during World War II, tax rates, particularly on the wealthiest individuals and corporations, were exceptionally high. The top marginal income tax rate exceeded 80 percent. Corporations that made more than a modest return paid a high excess-profits tax. The high income tax rates on the richest Americans remained through the postwar boom era, a time when inequality declined and overall wealth grew.

That money went into the public sector, not just for the war but for retooling and rebuilding U.S. industry. High taxes on the rich paid for the interstate highway system, the University of California system, the California Water Project, the birth of the Internet. It took almost half a century for the Republicans and no-taxers to wreck the economic gains of that high-tax era.

And yet, despite all the consistent, clear evidence, we still hear the news media, the commentators, and even liberal Democrats saying that tax cuts are good for the economy and tax hikes are bad.

What we’ve got here is failure to communicate.

One of the most important goals of the next year or two, under the Obama administration, is to change the national debate over public and private priorities. That won’t be easy. President Obama has started off in the right direction, although the Republicans forced him to include several hundred billion in wasteful tax cuts in his stimulus bill. The tax hikes in the state budget plan are almost entirely regressive (sales taxes and a flat increase in the income tax.)

Here in California, and here in San Francisco, elected officials who claim to represent the Democratic Party’s future need to stop mouthing the old Republican line. None of the Democratic candidates for governor, including Mayor Gavin Newsom, have been our front about the need for more government spending, even if it means higher taxes on the wealthy (say, a business tax that hits harder on the biggest and less so on the small). In fact, Newsom has taken the opposite line, writing in a Feb. 13 San Francisco Chronicle op-ed piece that "we have to reduce spending." The San Francisco supervisors are at least talking about new revenue sources, but polls show that will be a hard sell.

Why do the polls show that? Because people like Newsom — and to some extent, the supervisors — aren’t using their bully pulpits to change the tone of the discussion, to make the case for economic sanity, to challenge the demented wisdom that’s brought us to this nightmare.

That has to change, now, or there will be no way out. *