Government

Reinventing journalism

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› news@sfbg.com

Journalism, the critics say, is dying. The model of news reporting that has dominated the United States for most of the past century — big, well-funded outfits paying reporters and editors to choose and produce what the public reads or views — is crumbling. The main culprits are media consolidation and corporate cutbacks, but the downward spiral is also being fed by declining readership, competition from the Internet, investor expectations, demographic shifts, self-inflicted wounds, and myriad other factors.

This years-long trend is hardly even news anymore, but there were some troubling developments in 2008. Some of the problems facing newspapers and broadcast outlets are the result of a bad economy, but everyone agrees the issues run deeper.

At the same time, however, countervailing forces are gathering momentum, many of them based in California and some in the Bay Area. People who believe in the indispensable role that reporters and editors play in this society are developing news models, ideas for reinventing journalism that could blossom in 2009.

From the Huffington Post and its 8 million monthly visitors to journalism experiments such as Spot.us and the San Francisco Public Press being hatched right here in San Francisco, the media landscape is shifting. As traditional newspapers contract and wrestle with relevance in the online age, Internet-based news organizations are filling the void and seeking to change the rules along the way.

Nowhere was this new reality more on display than last summer at the Democratic National Convention in Denver, where Bay Area new media powerhouses that included MoveOn.org, the Daily Kos, and Digg.com created the Big Tent, which played host to everyone from small-time bloggers to the most powerful politicians and big time political thinkers.

Among them was Arianna Huffington, the HuffPo founder who has become a leading voice for media reform and reinvention. The vision for journalism she espoused from the stage is a familiar one to Guardian readers but apostasy to believers in journalistic objectivity: writing from a progressive perspective to hold the powerful accountable to the public.

“Our highest responsibility is to the truth,” Huffington told us in a recent interview. “The truth is not about splitting the difference between one side and the other. Sometimes one side is speaking the truth … The central mission of journalism is the search for the truth.”

But the HuffPo has come under some criticism for not paying its legions of bloggers and for occasionally lifting content from media outlets that do pay their people. Searching for truth may be the central mission of journalism, but news organizations still have to find ways to fairly compensate the people who do so. Citizen journalism and blogging may be wonderful additions to the landscape, but in the end, democracy require reporters. You can’t properly cover City Hall or monitor the White House unless it’s a full-time job. And that seems to be the big challenge in this era of overextended resources.

 

TOO MANY MERGERS

The mainstream media landscape is bleak. Nearly every major newspaper in the country laid off significant numbers of reporters in the past year. The Tribune Company, which owns the Chicago Tribune and Los Angeles Times, among other properties, filed for Chapter 11 bankruptcy protection in December, and it’s entirely possible that several other big media companies will follow the same path in 2009.

It’s not that these papers aren’t making money — the LA Times, for example, remains profitable. But in the past decade, waves of mergers and consolidations led the giant conglomerates that own many US newspapers to take on huge debt. And private investors are demanding returns that may have been possible in the boom years of a decade ago but are only possible today if costs are cut so deeply that the basic journalistic mission of the nation’s great newspapers is in danger.

The alternative press isn’t exempt. The past decade has seen a wave of increased consolidation in the weekly industry, and at least one chain is now in serious financial trouble. Creative Loafing, which has its flagship paper in the big and growing Atlanta market, filed for bankruptcy this year. The company borrowed millions to buy Chicago Reader and Washington City Paper. Although all three papers were making money, when advertising slowed down, debt payments overwhelmed revenue.

Westword, a paper owned by Village Voice Media, a heavily leveraged chain, reported Dec. 18 on rumors that its parent company was facing financial problems. The conclusion of media critic Michael Roberts: the chain is doing fine. (Full disclosure: The Guardian won a lawsuit against VVM this year; the $18 million verdict is on appeal.)

So the scene is wide open for new approaches.

Among the San Franciscans who have taken a lead role in creating a new model for print journalism is Michael Stoll, the former San Francisco Examiner city editor who for the last few years has been spearheading creation of Public Press (www.public-press.org), which aims to create a non-commercial daily newspaper supported by readers and foundation grants.

The project (which Steven T. Jones has been involved with supporting) has a working business plan, began offering limited content during the last election, and recently received a grant from the San Francisco Foundation. Stoll said the time has come for a new newspaper model.

“It seems like the existing commercial models of journalism were always problematic, but their faults only became apparent when the economy started to fail. And we’re now faced with an abandonment of the core principles that media companies said they would never stray from,” Stoll said, listing basic government and corporate accountability among those core principles.

“The daily, routine coverage of public policy is now performed very selectively, even as the optional, more entertaining coverage is beefed up. There comes a point when the public’s patience with those priorities wears very thin and it increasingly demands straight talk,” Stoll said.

 

SHOW ME THE MONEY

The problem is how to fund it. News Web sites like ProPublica.org and journalism collectives such as the Center for Investigative Reporting have relied on large foundation grants to fund investigative and other public interest journalism. That’s fine for some things — but foundations often have their own political agendas, and the influence of foundation agendas on grant recipients can be pernicious (see “Pulling strings,” 10/8/1997). Foundation funding isn’t reliable, and a news outlet that became critical of the pet causes of a major funder could quickly find its income cut off.

Another model is being developed by Spot.Us (with the help of a two-year, $340,000 grant from the Knight Foundation).

Spot.us founder David Cohn wrote for Wired and the Columbia Journalism Review before going on to work as both a freelance journalist and technical consultant to news organizations. That unique combination, during a time of industry decline, got him thinking about how to fund good, public interest journalism.

Cohn developed the idea of creating a Web site where writers could pitch news stories and solicit funding for them directly from the public, a concept that drew from bloggers such as Christopher Allbritton and his Back-to-Iraq blog, as well as innovative charity sites such as DonorsChoose.org.

Stories published by Spot.us are then licensed under the Creative Commons, allowing anyone to use them for free and spread the work. News organizations can also buy the rights to an article by repaying Spot.us, or they can get the site to help fund their freelancers by paying for half up front and letting donors cover the rest.

“Everyone can benefit: the news organizations, the writers, and the public. But the market needs to be rethought,” Cohn told us, noting that the success of his venture will be up to the users. “It depends on whether people will see journalism as a public good and want to fund good stories.”

Media outlets that aim to have a full-time news-gathering staff need to tap into more stable funding sources — or they have to start slow and hope their new ideas catch on.

“With the extremely limited funding we’re starting out with, we’re planning to start a hybrid freelancer/volunteer news operation, and that’s not terribly sustainable in the long run,” Stoll said. “But we hope to increase our financial wherewithal on pace with increasing our news operations.”

Although finding resources for his new model is a difficult task in the current fiscal climate, the need becomes stronger all the time. “When talk centers on how long the commercial press will be able to operate in our community, it’s never too soon to talk about long-range alternatives,” Stoll said.

Stoll left the Examiner in November 2002 after clashing with the owners, the Fang family, about how to cover the city. After that, Stoll joined the media watchdog group Grade the News and taught journalism at San Jose State University, where he still works.

“The readers probably guessed that public interest coverage was not the Examiner‘s top priority, and they voted with their quarters not to support the paper long enough to see it survive in that incarnation,” Stoll said, referring to how the Examiner was sold to Denver billionaire Philip Anschutz after the Fang’s court-ordered subsidy ended. “And I see the same thing happening with the Chronicle.”

 

WHO GETS PAID?

Still, there are some new journalism experiments that have shown they can be moneymakers, most notably HuffPo, which has translated its enormous popularity into a substantial revenue stream from its online ads, a dynamic it has parlayed into increasing venture capital funding to expand its operations.

But HuffPo is still struggling to find a business model that allows it to expand its original reporting and pay journalists a living wage, a problem highlighted recently by a controversy about HuffPo stealing content without permission.

In an interview with the Guardian, Huffington admitted that HuffPo did inadvertently steal content from newspapers including Chicago Reader, which highlighted the issue on its blog, triggering a lively online discussion.

“With regards to the Chicago Reader, that was completely our editor’s fault, and it completely violated our guidelines, so I sent a letter to them wholeheartedly apologizing,” she told us.

Huffington said it’s important to honestly admit mistakes and use integrity to win the public trust. “We want to be very transparent about what we’re doing,” she said.

As for the larger issue of not paying for content, she makes a distinction between journalism and blogging, citing the mantra, “Facts are sacred, opinion is free.”

That means HuffPo bloggers benefit from a large audience for their work and from a team of moderators who filter out the flames and personal attacks that constitute so much of the online commenting. But they don’t get paid.

“We pay our reporters, we pay our editors, we pay anyone who works to report the news. But we don’t pay anyone who blogs their opinions,” she said.

In this media transition period, original reporting is being done on blogs (such as the politics blog at sfbg.com), that line isn’t so clear. But it does single out the important role that professional, full-time journalists play in the media landscape.

She said HuffPo now has six editors and writers on the payroll in Washington, DC, on top of the 50 employees (which includes technical, administrative, and advertising staff) in New York. And the outfit is in the process of launching an investigative reporting fund and story funding service, with models similar to Spot.us and Propublica.org. As Huffington said, “We’re all basically trying to reinvent journalism.”

But HuffPo’s model of journalism isn’t really that radical. The notion that reporters are allowed to have opinions, that news outlets can take on causes, push issues and represent the public interest, has been a part of the nation’s media landscape since before the American Revolution. The technology that allows almost anyone to publish a blog, and allows the public to comment on and challenge what’s written, is only a modern version of a long tradition. Small printing presses and small publishers with influential pamphlets date back to before Thomas Paine helped spark the revolution with Common Sense. And before the news media got huge, reporters and editors were part of the communities they covered and heard from their readers every day.

In many ways, the media pioneers these days are looking at reestablishing the best roots of the American press. The only thing missing at this point is the business model that, in 2009, works well enough to pay for it.

Waning wildlife

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› amanda@sfbg.com

GREEN CITY Changes to ocean and air temperatures, rising sea levels, loss of habitat, scarcity of food, altered precipitation patterns, environmental asynchronicity — these are the concerns of wildlife biologists who are watching the increased effects of climate change on the thousands of plant and animal species that share the earth with people. Overall, global warming threatens a third of existing species, with 50 percent now in general decline due to a variety of human activities.

Bay Area wildlife is already being negatively affected by a warmer world, one that locally manifests in nesting birds roasting to death during heat waves, plummeting fish populations, and starving whales. Those stories were part of "Irreplaceable: Wildlife in a warming world," a recent seminar held at the San Francisco Public Library by the Endangered Species Coalition. Maria Brown, superintendent of Gulf of the Farallones National Marine Sanctuary — one of the most biologically diverse regions in the world, shared a grim account of the Cassin’s auklet.

"This little seabird you maybe never heard of may predict the future of climate change in San Francisco," said Brown.

The auklet spends most of its life far out at sea, and flies inland to breed in burrows on remote islands and coastlines. Invasive grasses have choked many of the prime burrowing spots along the coast, so wildlife biologists have installed bird boxes as an alternative. April, the height of the annual nesting season, was an unusually warm month, with thermometers on the Farallones Islands clocking 90-degree temperatures. The bird boxes turned into ovens. "They literally cooked," said Brown of the breeding auklets. "This is a prediction of what’s to come."

The auklet’s story also shows how species have already been negatively impacted by human activity, even before dramatic climate change was factored into the equation. That’s a point all the speakers drove home.

"We’re dealing with these threats that already exist. Now with climate change we superimpose all these unknowns," said Tamara Williams, a hydrologist for the Golden Gate National Recreation Area, a 60-mile swath of incredibly diverse land spanning from Tomales Bay to San Mateo that is home to 34 threatened or endangered species — more than any other national park in continental North America. "Those listed species were listed without considering impacts of climate change. We’re dealing with species that were in trouble already."

And how will it affect other species that aren’t listed? Williams gave an example of the coast redwood, which relies on a foggy environment to stave off drought during summer months. Will the coast continue to be as foggy as it’s been in the past? "We wish we could predict what’s going to happen, but we can’t," she said.

Mike Lynes of Golden Gate Audubon said the Bay Area has global significance for birds, but there’s already been a 90 percent loss of its historic wetlands — one of the primary habitats for shorebirds, which are already in a 50 percent decline. Climate change is only going to make the world harder for them, he said as he flashed maps of altered land masses in the event of a one-meter sea level rise — the modest prediction for what will happen by 2100. The maps showed that such a rise will cause wetlands in Richmond, along the Petaluma River, and in Silicon Valley to disappear. Lynes pointed out that the reconfigured coast doesn’t allow room for new wetlands — the coastlines will butt up against already heavily developed urban enclaves for people.

But, he said, expanding and preserving wetlands would benefit birds and humans — wetlands mitigate flooding and are a high-quality CO2 trap.

Zeke Grader, executive director of the Pacific Coast Federation of Fishermen’s Associations, didn’t sound optimistic about preserving one critical wetland — the Sacramento-San Joaquin delta — when he spoke about the collapsed Pacific salmon population.

"We know pretty much what the problems are for the Central Valley salmon. It doesn’t take a blue-ribbon panel like the governor would like to appoint," he said. "We’ve affected most all of its lifestyle, its lifecycle, by blocking off the places where these salmon spawn," rattling off the names of dams and rivers — Shasta, Bryant, American, Feather — that are no longer easily passable for fish returning to lay eggs where they were born.

On top of that, eggs that are successfully laid hatch into fish that then migrate downstream where they encounter the delta, an "estuary beginning to die." There, agricultural runoff, limited freshwater, and powerful pumps all threaten fish survival.

The few salmon that make it out to sea are faced with altered currents, fewer cool water upwellings, lower quantities of food, and literal dead zones where pollution has obliterated the natural diversity of the water.

"We know what has to be done to fix it. What has been done? Absolutely nothing. Now comes global warming. How well are we going to respond now that we have global warming?" asked Grader. "This year there was no fishing for the first time since 1848," bringing the issue back to the basic human need for food, as well.

He urged people to start demanding more from elected leaders, including a stronger Endangered Species Act with a well-funded mandate, and to begin "raising a much higher bar if we expect to have salmon on the planet, humans on the planet, in the future."

At the start of the evening’s presentation, Representative Nancy Pelosi’s aide, Melanie Nutter, delivered a short message from the Speaker of the House calling global warming a moral challenge. Nutter didn’t stay for the presentation, however, and wasn’t there to hear speaker after speaker call out the government for lack of action and, in some cases, inappropriate action.

Tom Dey, a water policy analyst who was seated in the audience, commented that change might come from the top of Barack Obama’s administration, but local officials need to be lobbied. "We have Senator [Dianne] Feinstein and Governor [Arnold] Schwarzenegger, who have written off the delta," he said, bringing up their support for a $9 billion bond to build more dams.

All the speakers urged individual action as well, and Williams said the Interior Department was "committed to doing what we can to reduce our own carbon footprint."

So far, that has been an analysis of carbon emissions throughout the national park system. GGNRA recently approved its climate action plan and is just beginning implementation of three major phases: emissions reduction, education, and adaptation, according to Laura Castellini, an environmental protection specialist. So far, that has meant an energy reduction partnership with Pacific Gas and Electric Co., an integration of climate change into interpretations, and beginning a more focused look at how sea level rise will affect GGNRA lands.

There have been hurdles, too. Castellini said most of the park’s emissions actually come from visitors, so the organization is looking at ways to enhance shuttles to and through parks as well as encouraging alternative transportation to arrive there in the first place. When asked how GGNRA was changing its own driving patterns, she said the agency was having problems getting more fuel-efficient cars. "Right now we get all of our vehicles from the General Services Administration. They have been a little slow in getting us vehicles that get us closer to our goal." Specifically, GSA only offers flex-fuel automobiles that run on ethanol, a plant-based fuel that many environmentalists are criticizing as unsustainable. Furthermore, Castellini said there are no ethanol stations in San Francisco.

Even given the concrete actions the park system is taking, there are still a lot of big unanswered questions, said Castellini. What if Glacier National Park no longer has any glaciers? "What does it mean if our protected areas no longer protect what they were established to?" she asked.

The Irreplaceable campaign, which includes a photo exhibit (closing Dec. 31 at the Main Branch of the SFPL), is traveling the country, ending in Washington, DC, as part of a push for Congress to recognize the gravity of the problem. Mark Rockwell, director of the program, closed the seminar by saying, "The only constant in nature is change. Change is what we’re going to have to become more comfortable with."

That includes human change.

Editor’s Notes

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› tredmond@sfbg.com

I was going to do New Year’s resolutions this week. I got started: turn the cell phone volume down when the kids are in the car and Aaron Peskin is on the line. ("That man sure does like to use the f-word when he talks about PG&E," my nine-year old noted this fall.) Stop shouting "Yo, asshole!" when cars come too close to my bicycle. (I know I can be way more creative and foul-mouthed than that.) Return Gavin Newsom’s phone calls. (Hey, the poor guy must be lonely.)

But really, it’s not all about me.

So instead, in honor of the end of the Bush Years and in the hope of a 2009 we can all be proud of, here are some things I would like to see other people do:

I would like to see the California Legislature and US Congress raise the gas tax enough to bring the price to about $3 a gallon, making sure SUVs remain unattractive forever.

I would like to see the new progressives on the San Francisco Board of Supervisors make open government a real priority; I would like to stop having to fight to get even routine information out of City Hall. I would like everyone in public office to read Bob Herbert’s column in Dec. 27’s The New York Times and understand that one reason FDR was successful with the New Deal was that he understood the importance of restoring faith in government; transparency, accountability, and oversight were a central part of the package.

I would like Anchor Steam to start making a light beer.

I would like someone to get Wi-fi installed at City Hall.

I would like Gavin Newsom to stop hiding behind Nathan Ballard.

I would like the right lane of the stretch of I-80 near Lake Tahoe repaved so those of us with small cars don’t get bounced up and down like ping pong balls.

I would like the federal drinking age lowered to 18.

I would like everyone to stop talking about the death of newspapers and stop pretending that blogs and citizen journalism can ever replace full-time trained reporters.

I would like the San Francisco police to stop turning immigrants over to the feds.

I would like the executive editor of Village Voice Media to shave his head, move to Tibet, become a monk, and accept the karmic implications of the way he’s lived his life.

I would like the state to tax the millionaires instead of the college students.

I would like some really rich person to die and leave $20 million for a public power campaign so that for once we could match Pacific Gas and Electric Co.’s money and have a fair fight.

I would like Barack Obama to appoint Arnold Schwarzenegger ambassador to some meaningless country so we can have a new governor.

I would like Newsom to liquidate his personal fortune and use the money to pay rent and grocery bills for the front-line city workers he’s laying off.

I would like the Catholic archbishop of San Francisco to quit the gay-hating.

I would like all my fellow dog owners to clean up the poo on the sidewalk.

I would like to be able to ride high-speed rail to Los Angeles before I start collecting Social Security. Happy New Year.

Psst: Wanna buy Barack Obama’s new email address?

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FLASH: First Amendment and Open Government News
from the California First Amendment Coalition

PROPOSITION:

Psst: Wanna buy Barack Obama’s new email address?

By Peter Scheer

What would you pay to have President Obama’s new private (and secure) email address?

Two weeks ago I wrote in this space about efforts by Barack Obama’s aides to get him to surrender his Blackberry, on which Obama had relied to escape the bubble that descends on leading presidential contenders, not to mention elected presidents. I argued that the aides’ concerns about legal and security constraints were overblown and urged Obama to keep the Blackberry—and to use it, while President, to stay in touch with ordinary citizens.

Up against ICE

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› sarah@sfbg.com

The San Francisco Immigrant Rights Defense Committee, a newly formed coalition of more than 30 community groups, is asking Mayor Gavin Newsom and the Board of Supervisors to sign a pledge supporting San Francisco’s immigrant community.

By signing the pledge, city officials would agree to uphold the city’s sanctuary ordinance, ensure that San Francisco police officers don’t act like immigration agents, and denounce racial profiling. They would also agree to denounce Immigration and Customs Enforcement (ICE) raids and ensure that immigrant youth get due process, that funding for immigrant communities continues, and that the city announce a specific date for implementing San Francisco’s municipal identification program.

The move could put Newsom in an awkward situation — the mayor doesn’t want to appear to be snubbing immigrant-rights leaders, but he also has moved in the past few months to distance himself from the city’s liberal sanctuary law.

So far the coalition has not heard back from Newsom, but some supervisors-elect and returning supervisors have already signed it, and the Mayor’s Office has signaled that the municipal identification program will kick in Jan. 15.

The move to get elected officials to sign a pledge comes at the end of a difficult year for the immigrant community. In May, the federal government challenged San Francisco’s sanctuary ordinance after immigration agents stopped a city juvenile probation officer in Houston.

The officer, who was repatriating a group of Honduran youths who had been busted for selling crack, believed he was acting in accordance with city’s policy. The federal agents, who took the young people into custody, eventually released the officer.

And it wasn’t long before US Attorney Joseph Russoniello, a staunch opponent of the sanctuary ordinance, convened a grand jury to see whether the city used the sanctuary policy to harbor immigrant felons from federal prosecution.

The city countered this attack by hiring high-powered criminal defense lawyer Cris Arguedas. But by then the damage to the city’s sanctuary policy had already been done: in June, someone leaked the details of confidential juvenile court cases to the San Francisco Chronicle. One day after the story hit the newsstands, Newsom — who until then was a staunch sanctuary ordinance supporter — did an about-face, announcing that he would require city officials to refer youth suspected of being undocumented and of having committed a felony to Immigration and Customs Enforcement (ICE) even before they have a hearing.

Immigrant rights groups decried Newsom’s new direction, calling it an overly broad policy that had the potential to lead to deporting innocent people who may not have family or relatives in their county of origin.

As Angela Chan of the Asian Law Caucus pointed out, based on Juvenile Probation Department data, in 2006 there were 288 petitions filed against Latin American juveniles, but only 211 were sustained. Had Newsom’s policy been in place, 77 juveniles who weren’t actually found to have committed a felony in San Francisco could have been reported to ICE when they were booked and might have been wrongly deported.

While Newsom’s gubernatorial ambitions were blamed for his sudden change of heart, critics also pointed the finger at his criminal justice director, Kevin Ryan. A Republican loyalist, Ryan was the only US Attorney to be fired for cause during US Attorney General Alberto Gonzales’ infamous purge of the Justice Department in December 2006.

His December 2007 hiring by Newsom was seen as a calculated move to make the mayor-who-would-be-governor look tough on crime and immigrants — cards that play well among voters in more conservative parts of the state.

It didn’t help that Ryan’s hiring coincided with Russoniello’s second term as US Attorney for the Northern District of California.

Public records obtained by the Guardian show that as the Chronicle series unfolded, Ryan and Newsom’s communications director, Nathan Ballard, began to question whether the city should even fund programs or organizations that serve undocumented youth.

With ICE raids intensifying — May 2 at El Balazo Taqueria, Sept. 11 at a private residence — and the community accusing the police of racial profiling, the San Francisco Immigrant Rights Defense Committee chose Dec. 18, International Migrants Day, to publicize its pledge.

As of press time, Newsom has refused to meet with the committee, and Chan from the Asian Law Caucus, told us that members are "feeling snubbed."

But Chan reports that SFPD Chief Heather Fong, who announced Dec. 20 that she will be retiring in April, 2009, did meet and listen to the coalition’s concerns. "She reiterated her position that the SFPD only collaborates when ICE is seeking a specific list of people," Chan said.

With Fong under attack from within her own department for her refusal to let officers collaborate with ICE, the community is now abuzz with rumors that a hardliner could now be handed the chief’s reins.

Meanwhile, Supervisor-elect John Avalos and Sups. David Campos and Chris Daly have signed the pledge, while Supervisor-elect Eric Mar and Sup. Bevan Dufty have signed modified versions. And at the Dec. 18 Migrants Day protest, Sups. Jake McGoldrick and Ross Mirkarimi and Supervisor-elect David Chiu (who noted that Sup. Carmen Chu, while absent from the rally, is an immigrant rights supporter) joined gay rights and labor and religious leaders in announcing support for the coalition’s platform, which seeks to make dignity, equality, and due process a reality for all San Franciscans, including immigrants.

As Eric Quezada, Dolores Street Community Services executive director, told the crowd, "We’re here to defend the fundamental human rights of all immigrants." *


P.S. The San Francisco Immigrant Rights Defense Committee is a growing alliance encompassing immigrant rights advocates, labor groups, faith leaders, and LGBT activists. The committee includes the ALDI, Arab Resource and Organizing Center, Asian Law Caucus, Asian Youth Advocacy Network, Bay Area Immigrant Rights Coalition, Central American Resource Center, Chinese for Affirmative Action, Communities United Against Violence, EBASE, Global Exchange, H.O.M.E.Y., Filipino Community Center, Instituto Familiar de la Raza, La Raza Centro Legal, La Voz Latina, Legal Services for Children, Mission Neighborhood Resource Centers, Movement for Unconditional Amnesty, Mujeres Unidas y Activas, PODER, POWER, Pride at Work, SF Immigrant Legal & Education Network, SF Labor Council, SF Organizing Project, St. Peter’s Housing, Tenderloin Housing Clinic, and Young Workers United.

New board, old pain

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› sarah@sfbg.com

One of the first tasks awaiting the new Board of Supervisors in January 2009 is to make unprecedented cuts to the city budget as San Francisco seeks to balance a $125 million mid-year shortfall and address a projected $450 million deficit for the fiscal year that begins July 1, 2009.

"It’s hard to understand the magnitude of what lays at our doorstep," termed-out board president Aaron Peskin told the incoming supervisors when it became clear that he lacked the votes to enact a proposed package of cuts before his last day in office (see "Sharing the pain," 12/17/08).

"This is going to require a huge amount of selflessness, of sharing the pain among those who can share it the most and the least," warned Peskin, whose last day on the job is Jan. 6.

Newly sworn-in Sup. David Campos cited the magnitude of cuts as one of the reasons he voted not to move Peskin’s legislation out of a committee last week.

"I need more time to understand the proposal", said Campos, who took office in early December, only to find himself confronting "the worst crisis since the Depression," as Mayor Gavin Newsom called it during a visit to the board.

"And this way, the new board gets to weigh in," added Campos, who joins seven returning supervisors — Michela Alioto-Pier, Carmen Chu, Chris Daly, Bevan Dufty, Sean Elsbernd, Sophie Maxwell, and Ross Mirkarimi — and three new supervisors: John Avalos, David Chiu, and Eric Mar.

The decision to delay budgetary cuts until 2009 also secured an extra month of grace for community service providers. Peskin and the Mayor’s Office agreed that cuts scheduled for mid-January won’t kick in until Feb. 20.

But, as Daly noted as he urged the board to kill Newsom’s million-dollar, Tenderloin-based Community Justice Court, the 409 pink slips that were recently issued predominantly to front-line city workers have not been rescinded.

"And folks will have to find many more millions to avert terrible community cuts," Daly observed. Peskin warned that the CJC could cost $2 million annually if the federal government isn’t willing to fund it next year.

Daly argued that defunding the CJC was a "no-brainer," citing the project’s lack of community support and the fact that the services it aims to divert people to — substance abuse, mental health, and homeless programs — are up for cuts.

But Daly failed to get a veto-proof super-majority after Sup. Gerardo Sandoval, who was elected to the Superior Court in November, recused himself, and Sup. Bevan Dufty, who has his eye on Room 200, voted in favor of the mayor’s project.

"I don’t see this as a new program, but one that tries to tie together what’s already in the community justice system," Dufty said.

With the bad fiscal news expected to snowball in 2009, Daly says he plans to call for hearings to examine the possibility of more cuts to upper-level city managers.

"It’s incumbent upon us to make sure there is not fat left in the city budget, especially when it comes to upper-level managers, as we are trimming the resources available to those who are more vulnerable," Daly explained.

Moving forward

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› a&eletters@sfbg.com

Gathering my thoughts about how I listened to music in 2008, I think not only of Luc Sante’s piece on Manny Farber in this month’s Artforum, but also Ariana Reines’ Action, Yes piece explaining why she hates the "cleanness and elegance of tight and perfect writing." In different ways, both pieces deal with the importance of smallness, incompleteness, and, to steal the title of Reines’ piece, "sucking."

Because it’s easy not to suck, and this may or may not be the Internet’s fault. Music itself did not suck in 2008, despite the crumbling of an always-already imaginary consensus, and that’s maybe what’s so unsatisfying about trying to hang 12 months on something as well-executed yet under-inspiring as, say, Dear Science (Interscope). I’m not sure that people won’t start rallying around a single release or clutch of releases to narrate what made this year worth listening to deeply, but the albums that spring to mind now as forecasting what will sound good in the future are ones that pursued a small, near-inarticulate muse and ended up with something almost monomaniacal. It’s not a coincidence then that so many of these records were made during time apart from the artists’ main gig. The economy, man. We all gotta grind.

BRANDON BUSSOLINI’S TOP 10


1. Inca Ore, Birthday of Bless You (Not Not Fun)

Former PDXer and current Oaklander Eva Saelens is Inca Ore. Her most recent solo LP is an incantatory, patient ritual, a literally awesome tapestry of magnetic tape smears, disembodied wails, and dark, roiling resonance.

2. Arms, Kids Aflame (Melodic)

Harlem Shakes guitarist Todd Goldstein strikes out on his own here, and the results can be insanely satisfying: the indie triumvirate made up of "Whirring," the title track, and "Tiger Tamer" is a welcome reminder that pop music is supposed to make your heart race. The album’s second half is less distinctive, but it’s not like it hasn’t earned the right to be.

3. Bohren and der Club of Gore, Dolores (Ipecac)

There’s nothing organic about this full-length’s inert pace: slow enough to make Swans sound like a thrash band, its floating vibraphone riffs eerily familiar/defamiliarizing like only the Twin Peaks soundtrack before it, Dolores at times seems like a morbid joke. If the characters in Samuel Beckett’s trilogy listened to music, I have a hunch it would sound much like this.

4. Zomes, Zomes (Holy Mountain)

In addition to playing guitar in Lungfish, Asa Osborne constructs sturdy little habitations out of drum machine, guitar, and organ under the Zomes moniker. While it may sound too controlled at first, the recording’s insistence on small, unvarying patterns reveals itself as an autonomous language over time, its photocopy mystery emerging from the stuff of repetition and reproduction itself.

5. Ssion, Fool’s Gold (Sleazetone)

This disc’s two release dates might as well stand in for its own ability to navigate, rather than drown in, Internet-era self-reflexivity — it seems less like a one-off collection of jams than a collection of techniques for fucking with identity. Tracks like "Street Jizz" and "Clown" don’t have to decide between earnestly camp and campily earnest because they realize a third way.

6. School of Language, Sea from Shore (Thrill Jockey)

The punched-out vowel sounds that open this album recall, like Sébastien Tellier’s "Divine," old Art of Noise productions. Field Music’s David Brewis uses them as a bed not for uptight Euro-funk, but for generously rendered bedroom prog. At moments surprisingly muscular ("Disappointment ’99") but always rhythmically ambitious, Sea may seem like Manny Farber’s "white elephant art" from the outside, but is unmistakably "termite-tapeworm-fungus-moss art" within.

7. Indian Jewelry, "Free Gold!" (We Are Free)

Thematically, the idea of establishing your own currency as a subversion of government and the totalizing power of capitalism both has a precedent, at least, in the B-52’s Whammy (Warner Bros., 1983). The record’s appeal has little to do with good timing, however: there are too many honest-to-goodness songs here for it to be "out" rock, too much Rev/Vega worship for it to be simply psychedelic. Gold’s appeal, instead, is its beefy epileptic punch. Listen close and feel the retina burn.

8. Portishead, Third (Mercury/Island)

It would be a lie if I said I didn’t care about this band before this album, but what’s remarkable here is that for all the group’s touted perfectionism, the two preceding LPs consistently opted for the warmth of loneliness, something the listener could, y’know, identify with. In contrast, Third is a hard, long, steely drag on modernism’s cold monumentality: "Machine Gun" is dubstep packed tight into a tarry espresso shot. Even the escape imagined in "The Rip" is hounded by a spidery Casio riff — the stuff of uneasy sleep.

9. RA.085, Tobias Freund Podcast (residentadvisor.net)

Stepping away from dance-oriented mixes for a minute, Resident Advisor commissions the best mix they’ve ever hosted. Freund’s work is hard to find, but this mix makes clear that he’s got a privileged understanding of both minimal techno and ambient’s DNA — and some killer crate-digging luck. I mean, come on, that Savant track? (Discogs it!)

10. Gang Gang Dance, Saint Dymphna (Social Registry)

The cliché about bands like GGD — nominally "noise," but whose music actually deals in another kind of abstraction, like Animal Collective or Excepter — is that they get more pop and more weird as they grow into their career. Saint Dymphna can be swallowed whole — parts of God’s Money (Social Registry, 2005) tended to stick in the throat — and the group makes no bones that this comes at the expense of extraneous oddness. But a certain strange eclecticism takes its stead. Occasionally Lizzie Bougastos’ voice sounds like a Wiccan falsetto incarnation of M.I.A. The band openly goes for dubstep in "Princes," and "House Jam" is the song folks will go apeshit over at their reunion concerts 20 years in the future.

>>MORE YEAR IN MUSIC 2008

An open letter to the archbishop

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Dear Archbishop George Niederauer:

On Dec. 3, in the face of a national outcry against the passage of Proposition 8, you defended the role you played in its passage, which included giving a video interview to the pandering Web site marriagematterstokids.com, in which you intoned that "the successful, millennia-long model of marriage is between a man and a woman…. And the introduction of another model seems to us to go against the success of that model."

But beyond just words, you directly persuaded the Mormon Church to join the fight, which that church said it would not have done absent your encouragement. As San Francisco’s highest Catholic prelate, what you say and do matters, not only to the loving members of your flock whose lives you have disrupted, but to voters throughout the state. Now, adding insult to injury, you are crying "victim."

Please do not pretend that your own right to free expression is at stake because we are protesting your actions. No one denies that you have a constitutional right to speak out on issues of public policy, just as we have the right to protest your hurtful conduct. Your statement that we should just agree to disagree over gay marriage, and stop hurling obloquies like "bigot" and "pervert" at one another, is the very essence of sanctimony. You did not agree to disagree before you acted to invade the bedrooms of consenting adults whose partnerships in no way impinge on your own rights. Your entreaty now for respectful discourse is simply a crusader’s demand for surrender and conversion.

You stated in your interview to marriagematterstokids.com: "Societies, nations, states do not create marriage; marriage is antecedent to that … The society, the government comes along later, and is not meant to revise or redesign marriage."

What sanctimony. You have designed marriage politically in exactly the manner you pretend to eschew. If you don’t like gay marriage, don’t have one. Teach against it until your voice runs out. But have the ecumenical restraint not to legislate your morality. And please do not profane the sacrifices of abolitionists and civil rights activists by falsely equating their efforts to expand people’s rights with your efforts to restrict them.

You may bridle at the term "bigot," but there is no better term to describe the prejudice you tapped to help repeal the hard-fought gains of same-sex couples. Assuring yourself that you are "tolerant" does not make it so. The Catholic Church behaved ignobly in failing, until 1967, to take a firm stand in support of interracial marriage. You have advanced no argument against gay marriage that people did not also advance against interracial marriage. It pains us to have to call you — our homophobic friends, family members, neighbors, fellow parishioners, and clergy — bigots. But let the term fester in your ear until you are delivered from your bigotry — or we are.

This is not a polite debate. Nor is it a mere culture war. It is a war for fundamental rights and human dignity. We will fight until we win. And you will be left to explain once again why you were on the wrong side of history.

Ben Rosenfeld

Ben Rosenfeld is a civil rights lawyer in San Francisco.

Conservatism’s last stand?

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As Tom Ammiano moved from the San Francisco Board of Supervisors to the California Assembly at the start of the month, he went from the budgetary frying pan right into fiscal fire, a place where the Republican Party’s "no new taxes" pledge has finally turned the political heat up to an unbearable level.

"I think the state’s road is very, very difficult, and the city’s road is very difficult," Ammiano told the Guardian. "There is a failure of leadership on [Gov.] Arnold [Schwarzenegger’s] part. I’m not giving [Mayor Gavin] Newsom an A+, but he at least came to the board."

The difference lies with the anti-tax pledge by the influential right-wing group Americans for Tax Reform that all Republican legislators have signed. Combined with the requirement for two-thirds of the Legislature to approve state budgets, the pledge has made it impossible to close a state budget deficit pegged at $40 billion over the next 18 months, a gap that could shut down state government by March.

"No matter how nice the Republican next to me is, or how gay friendly, they’re doctrinaire and they have everyone by the cojones," Ammiano said.

Senator Mark Leno says now is the time for Democrats to aggressively fight back against an inflexible anti-tax stand that has eroded critical government services for a generation and has now finally reached a crisis point. The conservative crusade has been led largely by ATR head Grover Norquist, who once famously said he wants to shrink government to the level where he can drown it in the bathtub.

"Every Republican has signed a pledge to someone who wants to drown government in a bathtub — Grover Norquist. So nothing will happen until we rip up those pledges," Leno told me, noting that the two-thirds vote margin is just three Republicans each in the Assembly and Senate. "Six human beings are bringing us to our knees."

Even the conservative editorial page writers of the San Francisco Examiner (who endorsed John McCain for president) on Dec. 15 wrote, "the deficit has become so overpowering that — hate it all we want — California cannot continue functioning in 2009 without at least temporary tax raises."

Yet Norquist and the Republican legislators in his thrall haven’t softened their position one bit and instead hope to win deep cuts with this game of brinksmanship. "Now it’s up to the governor to come up with a budget that doesn’t borrow money and doesn’t raise taxes," Norquist told the Guardian.

He said the problem is that California hasn’t adopted a system of making a searchable, detailed list of all government expenditures available to the public, as they have in states like Texas, Missouri, Kansas, Oklahoma, and Alaska.

"Ralph Nader and I have joined in sending three letters to your governor asking them to go transparent," he told us. "To say you’ve cut the budget as much as possible without having 30 million Californians help look at what makes sense and how to cut the budget is not serious. There’s not been a serious effort in California to scrub the budget, period."

Norquist did not return Guardian calls with follow-up questions about the fact that few credible government watchers think the budget gap can be closed with cuts alone or whether the current standoff — which even Schwarzenegger blamed on legislative Republicans — could hasten the demise of conservatism. But for now, conservatives are standing firm.

Senate Republican leader Dave Cogdill put out a statement saying, "Raising taxes doesn’t solve the underlying problem of California’s budget, which is the state spends more than it takes in." His statement may not be true — after all, raising taxes does indeed address that problem — but his caucus is sticking to it for now.

"Republicans remain strong against tax increases and that’s particularly important now when the nation is facing a recession," Sabrina Demayo Lockhart, press secretary for the Senate Republican Caucus, told the Guardian.

Leno called the tax pledge "childish and irresponsible," and akin to Democrats saying they won’t consider any spending cuts. "What kind of honest negotiations can there be when they’ve signed that pledge?" Leno said.

Lockhart countered that, "we’re bargaining in good faith for California taxpayers." Asked about the potentially devastating impact to the economy of shutting down all state spending and projects, Lockhart denied the Republicans were being irresponsible: "The responsible thing to do is project California taxpayers and jobs."

The Legislative Analyst’s Office last year put out a report entitled California’s Tax System: A Primer in which it wrote "California’s tax burden is about average," and in fact less than the industrial states’ average of under $12 for every $100 of personal income. And US tax rates are about 15 percent less than those in the European Union.

Leno has reached out to business leaders to have them try to talk some sense into the Republicans. Ironically, despite the Republicans rationalizing their pledge in the name of not wanting to hurt economic growth, the collapse of the bond market combined with the budget impasse threatens to cut off all state spending and send the already weakened economy into a nose dive.

"I wouldn’t think that anyone with a business mind or business concerns would in any way support the status quo right now," Leno said.

Leno said that even the Chambers of Commerce in San Francisco and Los Angeles are advocating for a reinstatement of the vehicle license fee, something that Schwarzenegger has voiced openness to even though his crusade against it helped sweep him into office five years ago. LAO figures show the lack of a VLF, by the end of the current fiscal year, will have cost the state $43.3 billion since it was repealed.

Leno said the Democrats are planning ballot measures for next year to raise revenue and repeal the two-thirds budget vote requirement, which only California, Rhode Island, and Arkansas have. As the state’s budget crisis devastates state services as well as those at county and city levels, Leno hopes this will be Norquist’s final stand.

"No one expects we can make $40 billion in cuts," said Leno, who hopes that the situation illustrates the intellectual bankruptcy of the right-wing stance.

"We do know there’s opportunity in crisis," Leno said. "It’s getting really ugly now and everybody knows it."

Changing climate

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› news@sfbg.com

GREEN CITY In its final full month in power, the George W. Bush administration has managed to screw up one last chance to take action on the increasingly desperate climate crisis, the latest in a string of diplomatic failures being inherited by the incoming Barack Obama administration.

The UN Climate Change Conferences in Poznan, Poland concluded Dec. 12 after nearly two weeks of negotiations, presentations, and demonstrations. Greenpeace pushed hard for strong action at the conference, even using San Francisco as a staging ground for its message.

Yet what Greenpeace officials initially viewed as a great chance to show a new face of American leadership on global warming instead turned out to be what group spokesperson Daniel Kessler called "a profound disappointment."

Kessler and other representatives from Greenpeace told the Guardian that members of the American delegation refused to agree to any international agreements because they didn’t want to constrain the incoming administration. The indecisive US stance then spread to other industrialized nations and no substantial agreement was reached.

"In Poznan, it seemed like everyone was in a holding pattern waiting for the Obama administration. But it’s just another excuse when what we really need is action," Kessler said.

For Ben Smith, Greenpeace’s global warming national organizer, this is just the most recent strategic move that the administration has made over the past eight years to obstruct any meaningful progress on the environment.

"The reality is, of course, that they’re catering to industry and don’t want to come to an agreement," Smith said. "They’re continuing their efforts to stall any progress."

Much of Greenpeace’s work at the conference has been to work around the US delegation, attempting to show the international community that the Bush administration is in its death throes and out of touch with the country when it comes to dealing with global warming.

On Dec. 6, Greenpeace organized "A Global Day of Action" to send the message that the American people are ready to help save the planet. It staged demonstrations in 25 cities around the country and dozens more around the world. In San Francisco, the organization brought more than 300 volunteers, activists, and community members to Crissy Field to hold a 30-by-50-foot green postcard reading: "Dear World Leaders, We are ready to save the climate — San Francisco. P.S. Yes We Can!"

A helicopter buzzed overhead to capture the image with the Golden Gate Bridge towering in the background. The images and others like it were sent to the Greenpeace delegates in Poland.

During the San Francisco event, Lauren Thorpe, a field organizer with Greenpeace, stood on the back of the flatbed truck that served as the stage and summed up the day’s message. "We really want strong action on global warming and we’re ready for America to take a leadership role on that again," she said.

The atmosphere at the event was hopeful and enthusiastic. Sup. Ross Mirkarimi even stopped by midway through his morning jog, apparently unaware he was scheduled to speak until 20 minutes before. He stood above the crowd in gray sweats and, after catching his breath, delivered a stirring impromptu speech encouraging the audience to hold officials at all levels of government accountable.

"Our federal government is moving at a very glacial pace in order to address the global warming crisis," he said. "And I’m not seeing any evidence that that’s going to turn around soon enough so that we can relax here from a local or municipal perspective."

Though the negotiations in Poland may have fizzled, the outpouring of support from San Francisco and elsewhere has encouraged Greenpeace during this important transition period. Kessler says that Greenpeace will continue to pursue its direct action strategy while working with the Obama administration’s new team.

"There is a lot of hope that he’s going to do the right thing," Smith said.

Lucy Pearce, a campaign leader from the British organization Stop Climate Chaos, urged the Crissy Field crowd to push for bold action on the climate change in the coming year: "We have to keep the pressure on and make sure that we don’t just rest on hope. We’ve actually got to deliver on climate change."

Beyond the bloody cuts

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EDITORIAL There’s actually a bright side to the brutally depressing budget struggles in San Francisco and Sacramento. This could be the year Californians finally start to recognize that they can’t have a functioning state, with the services everyone wants, without paying taxes. It could be the end of the Republican lie that the budget problem is only on the spending side, the end of the famous no-new-taxes pledge — and the end to the requirement that two-thirds of the Legislature pass any budget, an archaic rule that is crippling California.

And with a little leadership from the new supervisors at City Hall, this could be the year San Francisco takes a serious look at how local government is financed.

This is no time for modest, cautious proposals. The budget situation is alarming. California is looking at $40 billion in cuts over the next 18 months — more than a third of the entire state budget. San Francisco is looking at $500 million in red ink — roughly half the discretionary spending from the general fund. Filling those holes with cuts alone would be devastating.

This isn’t your average budget battle, where everyone fights to save a few hundred thousand dollars here and a million there for a crucial program. This is, by all accounts, something of an order that the state and local government haven’t seen since the 1930s.

So small-time, piecemeal fixes aren’t going to work. Here’s what the state and the city need to be talking about.

AT THE STATE LEGISLATURE


The first thing that has to go is the two-thirds rule. It’s become almost a farce — a handful of Republicans, who have sworn never to raise taxes under any circumstances, are holding the world’s sixth-largest economy and a state of more than 37 million people hostage to their failed ideology. Enough talk: the Democrats need to mount a massive signature drive for a special election this summer to repeal that requirement.

There are many fair ways to raise taxes to bring in enough revenue to stave off devastating cuts. Raising the income tax levels on the highest wage earners makes the most sense. Gas prices are way down; raising the state gas tax by a few cents a gallon won’t bring prices even close to last summer’s level. We’re nervous about taxing services (medical care, for example, is a "service"), but a carefully crafted tax that exempts essentials ought to be on the table. California is the only oil-producing state that doesn’t tax oil at the wellhead; that’s a no-brainer. So is restoring the vehicle license fee; Gov. Schwarzenegger’s decision to eliminate that fee has cost the state $40 billion over the past five years.

AT CITY HALL


Step one: the mayor has to recognize that there’s no way to solve a half-billion dollar shortfall with cuts alone. Step two: the mayor needs to back off from the layoffs and cuts for a few weeks until the supervisors and the community stakeholders have a chance to meet, talk, and look at all the options. Step three: some far-reaching changes have to be on the agenda, right now.

We like the idea of a city income tax. Technically, under state law, all the city can do is tax income earned within local borders, meaning that commuters would pay (good) and San Franciscans who work out of town would escape payment (bad). But overall, the concept is better than anything else out there. A local income tax that exempts, say, the first $50,000 (assuring that lower-income people pay nothing) with progressive rates skewed toward charging very high wage-earners the most could bring in significant revenue in the fairest way possible.

We’d like to see a progressive business tax — raise the rates on the biggest companies. We could live with a short-term hike in the local sales tax; frankly, we could live with most short-term revenue increases. The supervisors need to look at what new taxes make the most sense and prepare for a special election in the spring to put a revenue package before the voters. And everyone — including the mayor — needs to campaign hard for it.

The city also needs to look at the rainy-day fund, money set aside for bad economic times. Only a small amount of the close to $100 million now in that fund is available in any one year, but that rule might have to be changed.

This crisis is an opportunity — a chance to examine how the city’s current revenue sources are unfair, unstable, and unwieldy. Why are business taxes flat (big corporations and small businesses pay the same rate)? Why does San Francisco rely so much on property and transfer taxes, which shift radically with economic ups and downs? And of course, a public power system would generate enough money to cover a huge part of the deficit. The supervisors need to find an immediate revenue-based solution, but should also start creating a serious task force to overhaul the entire revenue side of the budget. Today.

Sharing the pain

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› sarah@sfbg.com

When Mayor Gavin Newsom walked across City Hall to the Board of Supervisors Chambers last week to announce that the city is facing a $576 million budget deficit, it looked as if he was putting political differences aside and genuinely inviting the board to "share the challenge" of bridging the 2008-09 budget chasm.

For years, voters and supervisors have urged Newsom to appear before the board for monthly policy discussions. And for as many years, Newsom has refused, claiming such invites were "political theater." Now that he’s finally made the trek, critics say the context makes the gesture more theatrical than substantive.

Within minutes of Newsom’s unannounced Dec. 9 visit to the board, City Hall insiders began to fear that the Newsom was only pretending to walk the unity talk: details of his $118 million in proposed mid-year solutions were not made available before the appearance, giving the two sides little to discuss and raising questions of due process.

"If the mayor was interested in real collaboration with the board, he would introduce his mid-year proposal to the board for our deliberation, just like the annual budget," Sup. Chris Daly told the Guardian. "But after we asked in three different ways, we found that he will be making over $70 million in cuts unilaterally — without the board’s approval. Now we have to figure out how to get the public a seat at the budget table."

Unlike during the normal budget process, the mayor has tremendous power to make cuts mid-year. But with details slow to emerge, the legislators weren’t the only ones left in the dark about the proposal, which includes slashing the Department of Public Health’s budget by 25 percent, cuts that DPH director Mitch Katz told the supervisors is going to require fundamentally changing how government runs.

Several City Hall workers told the Guardian how, in the days after Newsom made his budget deficit announcement, Controller Ben Rosenfield was seen running from department to department, trying to track down the program-level details.

Supervisor-elect John Avalos, who has a deep understanding of the budgetary process from his years as a legislative aide to former Budget Committee chair Daly, confirmed that the mayor’s $118 Million proposal "doesn’t tell you much."

"There is $47 million in increased revenue that has come in that offsets the shortfall, and there’s a higher-than-expected census at San Francisco General Hospital that allows us to recoup some money. But although there are all kinds of service/non-service cuts in Newsom’s proposal, we have no details to work with," Avalos told the Guardian.

Two days after his board appearance, Newsom penned an op-ed for the San Francisco Chronicle in which he again appeared to be holding out his hand to the board. But Avalos, a candidate for president of the board, observed that Newsom continues to protect his own pet projects, which include the 311 Call Center, the Community Justice Center, and the Small Business Assistance Center.

"The pain needs to be shared and minimized all round," Avalos warned. "The mayor needs to come forward and help us, not simply cut all the programs that the Republicans want to see cut. There is this huge backlash from folks saying, ‘Why do we spend $1 billion on our public health system? Maybe we don’t need public health.’ But our services are there for a reason."

Avalos said he worries that if we cut all these programs now, it will be very hard to get them back down the line. "When revenue is back, the focus will be on things that are important, but not on services that help the most vulnerable folks," Avalos predicted.

Within three days of Newsom’s appearance before the board, Peskin had figured out a mechanism whereby the public could weigh in on Newsom’s cuts: he introduced legislation that combines the mayor’s $118.5 million proposal with an alternative $8.5 million in cuts that Peskin has proposed.

"So, now there’s a de facto collaboration," Peskin told the Guardian. Peskin’s package of alternative cuts — which has since been pared back to $5.5 million because duplication with the mayor’s list was found — includes budget reductions in the Mayor’s Office of Economic and Workforce Development, Emergency Management Department, Fire Department, Police Department, Mayor’s Office of Criminal Justice, the 311 call center, and city grants to the opera, ballet, and symphony. Peskin is also proposed wage freezes that could save another $35 million.

Peskin’s counter-move allows the public to weigh in on the combined proposals. It requires department heads to publicly defend cuts to programs, services, and personnel — cuts that were developed, per Newsom’s request, behind closed doors. Or as Daly put it: "The mayor’s and the board’s proposals need to be deliberated not through a staff member to the mayor, but in full view of the public."

The board also wants to publicly discuss the layoffs, which Newsom said would total 399, a number that rose to 409 when the list was actually released. Peskin’s legislation also provides an avenue for fired workers or their representatives to publicly air discontent. A list of eliminated positions obtained by the Guardian shortly before press time shows that most of the positions were service providers making less than $70,000. Although union officials have complained that the ranks of highly paid managers has grown sharply since Newsom became mayor (visit sfbg.com for the complete list and more analysis).

SEIU’s Robert Haaland estimates that 75 percent of layoffs targeted line workers in service jobs. "As far as we can tell, the pain is all at the bottom," Haaland told the Guardian.

And while Haaland didn’t openly support Peskin’s counter-proposal — a citywide sliding scale of pay cuts in which the highest earners take a bigger hit and an across-the-board union wage freeze — he acknowledged that at least the proposal targets the powerful Police Officers Association and the Municipal Executives Association, and not just SEIU workers.

Haaland claims that under Newsom’s behind-closed-doors method, "the institutional bias of department heads tends to come into play" in making layoff decisions.

"It’s human nature. No one talks about it, and I don’t know that there’s a grand conspiracy," Haaland said, expressing his belief that it’s easier for managers to cut people they don’t work with than those around them or people at the top. "They also tend to target the union activists, the members who are a pain in the butt, and who they don’t like."

Newsom told the Chronicle in a Dec. 15 article that "labor is going to be a principal part of the solution." Tim Paulson, executive director of the San Francisco Labor Council, told the Guardian that "the SFLC is listening to its affiliates to see if there are any collective strategies." But Haaland observed that the city is "contractually obligated to the unions," which may further complicate ongoing negotiations.

With Sup. Bevan Dufty advocating to restore more than $500,000 in HIV/AIDS funding cuts and Sup. Sophie Maxwell is trying to avoid cuts at the Small Business Center, newly sworn-in Sup. David Campos stressed the need for a meaningful vetting process.

"It’s important for us to have a process that sheds light on the human impacts of the proposed cuts so we have a better sense of what it means to citizens of San Francisco," Campos said at a Dec. 12 board committee hearing.

Campos also made it clear that he is not afraid to target the arts, arguing that deep-pocketed patrons can help ease their pain, even as advocates countered that attacking entertainment will further deplete the city’s coffers by potentially hurting tourism. "As much as we appreciate the need to support the arts, we’re going to have to look at other avenues some of those folks can turn to, to get the funding that is needed," Campos warned. "People who have the greatest needs don’t have those options. "

With repeated rounds of painful cuts predicted in the next six months, Peskin told a Dec. 12 Government Audits and Oversight Committee hearing that it’s critical for the board to express its priorities. "These include keeping Rec and Park facilities open, providing basic mental health services, and preserving public sector jobs," Peskin said. "It’s also important that everyone share the pain, but not necessary that everyone share the pain equally."

Outside the meeting, laid-off worker Allanda Turner described her pain and the devastation she feels at being let go in the midst of a recession. "I’m a parent. I just purchased a home. I’m feeling almost no hope at all," said Turner, who fears she will be applying for the medical services, unemployment, and food stamps that she refers clients to as part of her job with the city’s Human Services Agency.

"The mayor always says he advocates for the poor, but we are the most underpaid," she said. Meanwhile, while her colleagues claim that their department "gave Newsom what he wanted" by adding layoffs to an original list of cuts that included fewer jobs.

"These are unit clerks, employment specialists, eligibility workers, and line workers," said Sin Yee Poon, a DHS contract manager. "Eight of them are child-protection workers."

There will be one last meeting of the current Board of Supervisors in January, and both incoming and outgoing members are already specuutf8g that unless Peskin’s legislation passes with a veto-proof majority, the mayor will veto it and this period of symbolic unity will come to an abrupt end.

"We have the capacity, the ingenuity, and the spirit to solve this," Newsom told the board. "It’s going to take all of us working together. It’s in that spirit that I am here. The mid-year solution — difficult and painful as it is — it’s the easy part. The difficult part comes in the next four months."

But as legislators explore the possibility of adding to their budget tools in the future through charter amendments and special elections, one aide stressed the importance of taking an active role now.

"It’s important for the board to set the stage now for the budget discussions in the spring."

Republicans make one last stand to drown government

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By Steven T. Jones

Democrats in the California Legislature say they’re ready to take the gloves off and start aggressively attacking the longstanding “no new taxes” pledge that their Republican colleagues signed with American for Tax Reform, which threatens to shut down the deficit-plagued state government.
“Every Republican has signed a pledge to someone who wants to drown government in a bathtub, Grover Norquist. So nothing will happen until we rip up those pledges,” Sen. Mark Leno told me, noting the devastating combination of that pledge and the two-thirds vote requirement to pass a budget in California, which only two other states have. That margin is just three Republicans in each the Assembly and Senate. “Six human beings are bringing us to our knees.”
“No matter how nice the Republican next to me is, or how gay friendly, they’re doctrinaire and they have everyone by the cojones,” Assembly member Tom Ammiano told me.
Senate Republican leader Dave Cogdill yesterday put out a statement saying, “Raising taxes doesn’t solve the underlying problem of California’s budget, which is the state spends more than it takes in.” I’m awaiting return calls from both Cogdill’s office and the ATR, but Cogdill’s statement is simply untrue on its face. Raising taxes does indeed address the problem of the state spending more than it takes in.

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.

Tap dreams

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› amanda@sfbg.com

On Dec. 2 two water conferences were held in San Francisco, attended by very different groups of people.

Downtown, in a room deep within the Hyatt Regency hotel, executives from PepsiCo, Dean Foods, GE, ConAgra, and other major companies gathered for the Corporate Water Footprinting Conference. The agenda that the conference made public included a presentation by Nestlé on assessing water-related risks in communities, Coca-Cola’s aggressive environmental water-neutrality goal, and MillerCoors plan to use less water to make more beer.

But what these giant corporations, which are seeking to control more and more of the world’s water, really discussed the public will never know. Only four media representatives were permitted to attend — all from obscure trade journals not trafficked by the typical reader — and both the Guardian and the San Francisco Chronicle were denied media passes.

The event was sponsored by IBM, and tickets were $1,500 — out of reach for many citizens and environmentalists who might have liked to attend.

And why might people take such a keen interest in the kind of corporate conference that probably occurs routinely in cities throughout the world?

Because there’s almost universal agreement that the world is in a water crisis — and that big businesses see a huge opportunity in the privatization of water.

Only one half of 1 percent of all the water in the world is freshwater. Of that, about half is already polluted. Although water is a $425 billion industry worldwide — ranking just behind electricity and oil — one in six people still don’t have access to a clean, safe glass of it. If the pace of use and abuse remains, the 1.2 billion people living in water-stressed areas will balloon to more than 3 billion by 2030.

That includes California. On June 4, Gov. Arnold Schwarzenegger declared a statewide drought after two lackluster seasons of Sierra snowfall. Scientists are predicting the same this winter. You can see how the state is mishandling the issue by looking at some recent legislation. Schwarzenegger and Sen. Dianne Feinstein have proposed a $9.3 billion bond to build more dams, canals, and infrastructure. At the same time, the governor vetoed a bill that would have required bottled water companies to report how much water they’re actually drawing out of the ground.

In that context, while the big privatizers were hobnobbing at the Hyatt, activists were attending a very different event, the "Anti-Corporate Water Conference," held at the Mission Cultural Center. It was free and open to the public and the media. More than 100 people gathered to hear a cadre of international organizations share information on how to keep this basic human right — water — in the hands of people.

Speakers included Wenonah Hauter, director of Washington, DC-based Food and Water Watch; Amit Srivastava of Global Resistance, a group that works to expose international injustices by Coca-Cola; Mark Franco, head of the Winnemem Wintu Tribe, which lives among water bottling plants near Mount Shasta; and Mateo Nube, a native of La Paz, Bolivia, and the director of Movement Generation Justice and Ecology Project.

Nube spoke about water as a commons, requiring stewardship, justice, and democracy. "We’re literally running out of water. Unless we change the way we manage, distribute, and consume water, we’re going to have a real crisis on our hands," he said. Nube’s remarks tied together the tensions of control and revolt, democracy and privatization, ecological balance and human need — all enormous issues, all related to water and water scarcity, which the Worldwatch Institute has called "the most under-appreciated global environmental challenge of our time."

BASIC NEED, INFINITE MARKET


Water is a basic human need, perhaps even more important than clean air, food, and shelter. People will never strike against water and stop drinking.

And that means, from a capitalistic point of view, it’s a perfect, nearly infinite market. "As water analysts note, water is hot not only because of the growing need for clean water but because demand is never affected by inflation, recession, interest rates or changing tastes," wrote Maude Barlow in her 2007 book Blue Covenant.

If scarcity drives price, anyone with a stake in the water industry stands to gain from an increasingly water-stressed world. As Barlow also reported, "In 1990, about 51 million people got their water from private companies, according to water analysts. That figure is now more than 300 million." By controlling the resource and choosing when and if they engage with the public it allows some of the biggest water abusers to set the terms of a critical ongoing debate.

The fact that humans need water raises important questions: should water be classified as a basic human right available to everyone? Is water part of the commons? If so, should corporations be allowed to control the taps or bottle it, mark up the price, and sell it for profit?

Not much polling has been done on people’s opinions of water, but during 35 informal on-the-street interviews conducted by the Guardian, 31 people said it is a basic human right. The other four said it was subject to the laws of supply and demand.

This week marks the 60th anniversary of the United Nations Universal Declaration on Human Rights, and Barlow, who has been appointed special advisor on water to the UN, will be addressing the General Assembly on the fact that water is still missing from the original 30 Articles.

"The reason that water was not included in the original 30 Articles in the Universal Declaration of Human Rights is that no one at that time could conceive there would be a problem with water," Barlow told the Guardian. "It’s only in the last 10 years that the concept of water as a human right has come to the fore."

The problem has its roots in the inherent conflict between conservation and profit. Saving water is relatively cheap, but there’s no money to be made by eliminating waste. Developing expensive new water sources, though, is a potential private gold mine.

As Barlow points out in her book, technology is becoming an integrated part of the solution to the water crisis. Desalination plants, water recycling facilities, and nanotechnology are all being thrown at the problem — in some cases before a full assessment of use and abuse has occurred.

While technological solutions may be warranted in some places, Barlow worries that relying on them bypasses any true attempts at efficiency and conservation. "I’m not going to say there’s no place for water cleanup," she told the Guardian. "What I’m concerned about is we’re going to put all the eggs in the cleanup basket and not nearly enough in the conservation and source protection basket. What I’m concerned about is the idea that technology will fix it. Meanwhile, don’t stop polluting, don’t stop the over-extraction, allow the commercial abuse of water, allow the agricultural abuse of water because what the heck, there’s tons of money to be made cleaning it up. I think that’s the wrong way of coming at it."

The technological fix is one way the state’s water crisis may slowly seep into private sector control, and a couple of examples show what can happen when private companies don’t play nice with the public, how citizens constantly battle with state agencies to enforce regulations, and how the public process could and should be honored.

GET THE SALT OUT


In theory, California has plenty of water — its 700 miles of coastline border the giant reservoir known as the Pacific Ocean. But humans can’t drink salt water — and some companies see a nice industrial niche in that dilemma. Build a plant that takes out the salt, and suddenly there’s plenty for all.

Several small desalination facilities already exist throughout the state, mostly cleaning water reservoirs brined by agriculture. But another 30 desalination plants have been proposed for the coast as a way to deal with future water shortages.

One is in Carlsbad, near San Diego, where Poseidon Resources is constructing the only large-scale desalination plant that the state has permitted to date. It’s a 10-year-old project that, so far, doesn’t even have a pipe in the ground.

Despite Poseidon’s ability to grease the wheels with local officials, the facility is controversial. It sits next to a fossil-fuel burning peaker power plant, and will be desalinating the power plant’s discharge water, thus shielding its negative environmental impacts by claiming its the power plant that’s sucking up seawater and damaging marine life — the desalination plant is just making use of the wasted water.

That argument doesn’t sit well with Joe Geever of the Surfrider Foundation, who pointed out that part of the power plant is scheduled for a retrofit to air-cooling, and talk is of a potential state ban on using water for this type of cooling system. There are other more environmentally benign seawater extractions, he said, like drilling and capturing subsurface sources, that the desalination plant could have used.

Mostly, he contends, the plant subverts conservation. "Per capita consumption of water in San Diego is much higher than other places," he said. "In southern California we waste an enormous amount of water on growing grass. There’s a lot to be saved."

Poseidon, a private company, is footing the bill for the plant’s construction, but the financing scheme is predicated on a future increase in the cost of water. As Poseidon’s Scott Maloni explained to the Guardian, the contract with the San Diego Water Authority states that the cost of desalinated water can never be more than the cost of imported water. It can, however, walk in lock-step with it — and by all accounts the price to pipe water to sunny southern California is going to increase. Maloni said his company was taking an initial loss but would start paying itself back as imported water costs increase. Eventually rates will be set halfway between the real cost of desalinated water and the higher cost of imported water.

What kinds of guarantees are there that this will happen? Nobody knows. "They’ll say anything, but when it comes to showing you a contract, we’ve never seen anything," said Adam Scow of Food and Water Watch. "There’s a lack of regulation with a private company controlling the water."

The plant now has no less than three lawsuits hanging over it, all filed with state agencies in charge of permitting and oversight — the Coastal Commission, the State Lands Commission, and the San Diego Regional Water Quality Control Board. All basically contend that the state didn’t do enough to require Poseidon to implement the most environmentally sound technology that’s least harmful to marine organisms, as required by state law.

Geever stresses that desalination is an energy-intensive way to get water. "Every gallon of water you conserve is energy conserved," he said. "Not only could San Diego do more conservation, but they don’t recycle any wastewater to potable water standards. That’s much less energy intensive."

Poseidon counters by saying that it invested $60 million in energy efficiency measures for the plant and will be installing solar panels on the roof. Perhaps most telling is that the company sees itself as vending reliability. "It’s not the current cost of water the San Diego Water Authority is concerned about, but the future cost for an acre-foot," Maloni said. "There’s a dollar figure you can put on reliability. Public agencies are willing to pay us a little more for that."

Which gets back to a comment Barlow made about capitalizing on crisis. "We are frightened half to death and everyone who looks at it, right-wing or left-wing, sees that. … They use the crisis to say we have no alternative except to go into massive desalination plants."

And, as Peter Gleick, president of the Pacific Institute pointed out, San Diego wasn’t calling for proposals to bring it more water. "Poseidon wanted to build a desalination plant and it came to San Diego. That’s one way to do it. The other way is for a municipality to say we want a desalination plant, we’re opening it up to bids, let’s have a competition. That didn’t happen, and instead we have one contractor."

Geever added, "Poseidon has been really successful at lobbying politicians and convincing regulators to give them permits."

Which points to one of the chronic ills of managing water systems, particularly in California where water has always been political. "In the 20th century decisions about water were made by white males in back rooms," said Gleick. "It solved a lot of problems, but it led to a lot of environmental problems. The days when water decisions made in back rooms should be over. And they aren’t over, and that’s part of the problem."

DELTA BLUES


Nowhere is that more obvious than the delta, where the state’s two most prominent rivers — the Sacramento and the San Joaquin — meet the Pacific Ocean just north of San Francisco. It’s ground zero for one of the most charged political fights in the state.

Two-thirds of California’s water comes from the delta. About 80 percent of it goes to cropland, watering about half of the state’s $35 billion agricultural industry, much of it through historic water rights that have been granted to a small lobby of powerful growers who sell their surplus rights for profit. Another 18 percent goes to urban water needs, and — in spite of the fact that this is the largest estuary on the west coast of North and South America — only 2 percent of the water remains for natural environmental flows.

Delta issues are legion and begin at the headwaters of the Sacramento River, near Mount Shasta, a land Mark Franco describes as an Eden. "The deer, salmon, and acorns that we eat — everything that we need is there," Franco told the Guardian. "It’s such a beautiful place. Now they’re drying it, that Eden."

Franco is head of the Winnemem Wintu, or "little water people" tribe, and is fighting the first phase of water diversions from the Sacramento River, 200 miles north of the capitol where companies like Coca-Cola, Crystal Geyser, and now, potentially, Nestlé, pump millions of gallons a year into small plastic bottles and ship it around the country to sell in groceries and convenience stores.

"Here in the US, people have become soft. They’ve become so used to just having things directly handed to them that they no longer understand where their water comes from," he said at the anti-corporate water conference. "Realize this: those springs on Mount Shasta are not an infinite supply of water."

After the Sacramento feeds the bottled-water companies, what remains wends its way south, with more diverted directly to farmers and into the State Water Project, which pipes it to drier southern regions. What’s left empties into the delta.

A lack of fresh water, flagging environmental preservation, increasing agricultural needs, and leveed island communities that are seismically unsafe and sinking, all mean the delta is failing as an ecosystem, and has been for some time. Chinook salmon and delta smelt populations are collapsing to such an extent that court orders have halted a percentage of water diversions and salmon fisherman were forced to dock their boats this year. Levees are crumbling, causing islands to flood and raising ire among landowners. Farmers with historic water rights are fiercely protective of them, while environmentalists are lobbying them to use more conservation and efficiency.

Nearly all stakeholders agree that the status quo won’t hold.

The challenge is finding a solution. Ending exports seems impossible, limiting them means massive investments in other resources. No one agrees on what will really save the endangered salmon and smelt or improve conditions for the 700 other native plants and animals.

In 2006, the governor convened a seven-member Delta Vision Blue Ribbon Task Force, which released a strategic plan in October calling for balancing co-equal goals of ecological restoration and water reliability.

The plan also specifically recommended a dual conveyance system similar to what was proposed in a study by the Public Policy Institute of California. It combines some through-delta pumping with a peripheral canal around the delta. PPIC crunched the numbers and determined that the canal was economically better than any of the four options they had weighed.

The peripheral canal idea isn’t new, but it’s been controversial since it was first proposed almost three decades ago. The plan was ushered by then-Gov. Jerry Brown, but defeated by voters in 1982 after a major organizing effort by environmentalists. (Whether voters will cast ballots on it this time remains to be seen, though the Attorney General’s Office, now headed by Brown, has counseled the Department of Water Resources, which is charged with implementing whatever plan is decided upon, that a vote of the people isn’t required.)

Shortly after its release in July, the PPIC report was criticized by five elected Congressional Democrats — Reps. George Miller, Ellen Tauscher, Doris Matsui, Mike Thompson, and Jerry McNerney. "The PPIC report should not be used to ignore the many things that can be done today to restore Delta health, including providing necessary fish flows, undertaking critical ecosystem restoration projects, and making major investments in water recycling and improved conservation measures," Miller said.

Numbers used by the PPIC report have also been criticized by Jeffrey Michael, a business professor at the University of the Pacific in Stockton. In an analysis of PPIC’s work, Michael said the group had used inflated population figures, as well as high costs for desalinated and recycled water, therefore resulting in a report that made it look like it was too expensive to end delta exports altogether and replace them with other water sources.

The PPIC said the state’s population would be 65 million by 2050, that desalinated water costs $2,072 per acre-foot, and recycled water goes for $1,480 per acre-foot — numbers that were scaled to 2008 dollars from 1995 figures. Michael contends that if the numbers were adjusted to reflect actual costs, the peripheral canal wouldn’t look like such a sweet deal.

Maloni, of Poseidon Resources, said the desalinated water cost would be $950 per acre-foot for San Diego, including a $250 subsidy. A similar plant the company is hoping to construct in Huntington Beach will be about $50 more per acre foot.

When asked if $2,100 per acre-foot was a reasonable figure for desalinated water in California, Maloni said, "That’s nuts."

What does all this illustrate? That even among a small cast of purported experts there’s little consensus on several fundamental issues.

Adding more fuel to the fires of public skepticism is that a third of the funding for the PPIC report came from Stephen D. Bechtel Jr. — heir to the Bechtel Corp., which has come under tremendous criticism for its moves to privatize water around the world.

"That is very upsetting to us. They would stand to gain a lot with a contract to build a peripheral canal," said Barbara Barrigan-Parrilla of Restore the Delta.

PPIC’s Ellen Hanak said the funding didn’t affect their findings. "It’s really much more linked to the fact that the foundation is really interested in the environment and water is a part of that."

Linda Strean, the PPIC’s public affairs officer, told the Guardian that it was Bechtel himself who wrote the check, not the foundation. It’s the first time Bechtel has given to PPIC.

But considering Bechtel’s past performance managing water, it doesn’t inspire much confidence.

BECHTEL’S BIG ADVENTURES


In April, Cesar Cardenas Ramirez and César Augusto Parada, traveled from Guayaquil, Ecuador, to San Francisco. The two men were on a fact-finding mission: they wanted to know more about the company that owns Interagua, the company that is supposed to deliver the drinking water that only occasionally comes out of the taps in their homes.

One of the first things they discovered is that 50 Beale St. doesn’t necessarily advertise itself as the home of Bechtel — one of the world’s largest private corporations, with global construction and infrastructure contracts amounting to billions of dollars annually.

In Guayaquil, water service has been problematic for decades. During the 1990s the country received a loan from the Inter-American Development Bank to improve basic infrastructure. The money was given directly to the government, but like many World Bank and International Monetary Fund loans granted throughout Latin America at the time, it was predicated on an eventual privatization of the water service contract.

The money helped — water conditions improved, and the city seemed to be on track to bring service to outlying areas. But in 2000, the city, abiding by the loan conditions, requested bids to run the water and sewage systems. No bids were received. Leaders scaled back provisions that kept some control in the hands of the government, and they got one response. In 2001, Interagua, a company owned by Bechtel, took over water service.

"Since the contract, nobody has been able to drink the tap water," Cardenas, who represents the Citizen’s Observatory for Public Services, a watchdog group formed in Guayaquil to monitor the water contract between the government and Interagua, told the Guardian. "Prior to the contract you could drink the tap water, although there were some sections of the city where the plumbing was old and inadequate."

Even though Interagua is managing a public service, because it’s a private company, information about its exact responsibilities have been elusive. The Observatory does know that Interagua pays nothing for the water it draws from the local river, is guaranteed a 17 percent rate of return, and that it has a minimum mandate to expand service. What’s also known is its citizens’ experience — during the first six months of the contract, some rates were increased 180 percent.

Bechtel’s SF office refused to meet with the two men or answer their phone calls, e-mails, and letters, which highlights the inherent problem with corporate control of water — a lack of accountability. Bechtel didn’t answer any of the Guardian‘s detailed questions regarding the Interagua contract, and only provided a three-page letter originally drafted to the World Bank in December 2007, that paints a rosy scene of productivity and accomplishment in Guayaquil.

"At present, over 2.1 million residents of Guayaquil (84 percent of the population) are connected to the municipal potable water system, and more than 90 percent of the customers have 24-hour per day, uninterrupted service." The letter goes on to state that coverage is expanding with new connections, water quality meets public health standards, prices have decreased, and procedures are in place to help customers who have higher than average bills.

"There are things that have improved, yes," said Emily Joiner, who spent last summer in Ecuador and is author of the book Murky Waters, a history of water issues in Guayaquil published by the Observatory in 2007. But the bottom line is that citizens pay for the service, but they can’t drink the water.

"You still don’t drink the water anywhere in the city at any time," said Joiner. People buy bottled water or boil it. "Bottled water is expensive, as a percentage of income," she said.

Whereas water service was previously priced more like a progressive income tax, with the lowest consumers paying the lowest rates, Interagua has flattened out the rate structure and now big water consuming businesses are paying the same as residents. "It’s pricing some families out of the market," Joiner said. "It’s great for business. It’s not great for people who don’t have enough water to bathe or wash their clothes."

The Observatory would like the water system turned back over to the government. The local authority, which once ran the water service and is now charged with overseeing Interagua, fined the company $1.5 million for not meeting goals for expanding service. According to Joiner, there’s been no follow-up on whether the company is meeting those goals now.

The Observatory also filed complaints with the World Bank, which attempted a settlement, but, according to Joiner, representatives from Interagua refused to sit down at the same table as Cardenas. "The process stalled," Joiner said. "Interagua said the issue had become too politicized. César [Cardenas] has a reputation for rabble-rousing, and at the time he was lobbying for constitutional amendments outlawing privatization. Interagua considered it negotiating with a hostile party."

A new constitution was passed in September that does, in fact, outlaw privatization, but still allows existing contracts to be honored if they pass a government audit.

In the meantime, the local rumor is that Bechtel is arranging to sell Interagua to another company. Bechtel wouldn’t confirm this, and no one could say more beyond what was reported in speculative articles in Guayaquil’s local newspapers.

It wouldn’t be the first time Bechtel bailed on an international water contract. In what was part of a massive privatization of a variety of Bolivia’s national services, in 1996 the World Bank granted the city of Cochabamba a $14 million loan to improve water service for its 600,000 citizens. Like Ecuador, there were strings attached: a future privatization of the city’s water service. It was sold to Aguas del Tunari, the sole bidder — also a subsidiary of Bechtel. Almost immediately rates increased by nearly 200 percent for some families. In January 2000, people stopped paying, started rallying, and the water war began.

Led by La Coordinadora for the Defense of Water and Life, organizers shut down the city, physically blockading roads and demanding the regional governor review the contract. The battle went on into February, resulting in injuries to 175 people and the death of one. Originally the government announced a rate rollback for six months, but the Bechtel contract remained. "The [Bechtel] contract was very hard to get a hold of," Omar Fernandez of the Coordinadora told Jim Schulz of the Democracy Center. "It was like a state secret." Once they did examine a copy of it, Bechtel’s sweetheart deal for a guaranteed 16 percent profit was exposed and people demanded a full repeal.

Eventually, the residents got it, and though decent water service in Cochabamba is still elusive, the water war has become the poster child for successful grassroots activism.

"One of the most inspiring struggles around community control of water happened in Cochabamba, Bolivia, in the year 2000, when international corporation Bechtel — based here in San Francisco — privatized the municipal water system and hiked the water rates for citizens by 30 to 40 percent. Thankfully, there was a popular upsurge. It was a very bitter struggle and people succeeded in turning control back to public hands.

"This success changed the public debate in Bolivia," said Mateo Nube, a native of La Paz, Bolivia, who spoke at the anti-corporate water conference. "People said ‘enough’ to privatization, enough to corporate control. We need to seize control of our government."

You don’t have to go to Bolivia to find water-privatization battles. In 2002, catching wind that the city of Stockton was on the brink of privatizing its water services, the Concerned Citizens Coalition rallied signatures for a ballot measure against the idea. Weeks before the vote, the Stockton City Council narrowly approved one of the west’s largest water privatization deals — a 20-year, $600 million contract with OMI-Thames. The ballot measure still received 60 percent approval, and activists took the issue to court arguing there hadn’t been a proper CEQA process. In January 2004, according to the Concerned Citizens Coalition Web site, "San Joaquin County Superior Court Judge Bob McNatt ruled in our favor — we won on all points. The judge ruled that privatizing, in and of itself, needed environmental review." The city appealed, but eventually dropped the suit and OMI walked away in March 2008.

PUBLIC AGENCY, PUBLIC PROCESS


Bechtel also failed to hold on to a more local contract, a $45 million deal with the SFPUC to manage the first phase of its multibillion dollar Water System Improvement Project. After a 2001 story by the Guardian exposed Bechtel’s exorbitant billing for services that resulted in few gains (see "Bechtel’s $45 million screw job," 9/12/01), the contract was revoked by the Board of Supervisors and granted to Parsons, which runs it now.

Years later, in 2007, when the SFPUC released a draft of the Environmental Impact Report for the $4.4 billion project, massive public outcry arose against it. The plan outlined major seismic upgrades for miles of aging water infrastructure between San Francisco and Yosemite National Park, where the headwaters of the Tuolumne River are captured by a giant dam in Hetch Hetchy Valley and gravity-fed to the city. While the EIR projected little additional water use for San Franciscans, it called for diverting an additional 25 million gallons of water per day from the Tuolumne to meet the needs of 23 wholesale customers in San Mateo, Santa Clara, and Alameda counties.

The Pacific Institute and Tuolumne River Trust collaborated on a study showing that 100 percent of the anticipated water increases were for those wholesale customers — most of it for outdoor water use. The SFPUC hadn’t factored in any increased conservation, efficiency, or recycling measures, nor had it independently questioned the growth numbers.

The EIR received upwards of 1,000 public comments, more than any other document ever generated by the SFPUC. Environmental groups rallied, writing editorials, flooding public meetings, and asserting a different vision of the Bay Area’s water future and stewardship of its primary, pristine water resource.

And it worked. "We got about 95 percent of everything we wanted out of the WSIP process," said Jessie Raeder of the Tuolumne River Trust. "We do consider the WSIP a huge win for the environmental community … because we were able to organize and get a seat at the table and discuss this with the PUC." She said the Bay Area Water Stewards, a coalition of environmental groups, met with the PUC nearly every month and slowly the initial additional river diversions were pared down to a possible 2 million gallons. Also, a cap has been placed on any diversions until 2018, which gives agencies time to implement conservation and efficiency measures.

The SFPUC feels positive about it, too. "We are really thrilled that the program EIR was approved by the Planning Commission, approved by the PUC, and not appealed," said spokesperson Tony Winnicker. He said there were really controversial elements and the trick was balancing the competing interests of wholesale customers and environmental groups. "It took a really hard-nosed look at our demand projections and what we could really do for conservation." He concedes there are still controversies, in particular over the Calaveras Dam, which the Alameda Creek Alliance opposes. "It would be hubris for us to say it’s been a complete success."

"This is a process that would only occur through a public agency," Winnicker added.

"What we saw with the WSIP was a solution where everything was fully transparent," Raider added. "It was all a public process, and there was plenty of opportunity for public input."

Which is really what a public water utility should be doing. "When you’re talking about public water, it isn’t them, it’s us," said Wenonah Hauter, director of Food and Water Watch. "A public water system is only as good as the people involved with it."

DRINK LOCALLY


"This conference isn’t a public event," organizer Andrew Slavin told the Guardian when we tried to gain admittance to the Corporate Water Footprinting Conference. While water activists rallied outside deriding the corporations inside for greenwashing their images, Slavin said that the fact that the conference wasn’t open to the public proved that the corporations weren’t trying to do environmental PR. "If they’re trying to do greenwashing this isn’t the place to do it. The aim is to try to share information."

Slavin pointed to representatives speaking from the Environmental Protection Agency, the SFPUC, and NGOs like the World Wildlife Fund. From an environmental perspective, if these companies are going to be using water, isn’t it worth working with them to reduce their impacts?

"There are companies I call water hunters," explained Maude Barlow. "They destroy water to make their products and profit. Unfortunately, some of the companies that are leading this conference are bottled water companies. I don’t know how you can become ‘water neutral’ if your life’s work is draining aquifers."

Many water activists consider bottled water the low-hanging fruit as far as getting people to change behaviors. San Francisco banned the use of tax dollars to buy it, and the SFPUC has been promoting its pristine Hetch Hetchy tap water, gravity-fed from Yosemite National Park. "Bottled water companies are basically engaged in a multiyear campaign. Their marketing approach is you can’t trust the tap, your public water isn’t safe," Winnicker said.

Slavin said he thought it was weird to protest the conference, because the corporations are genuinely trying to avoid conflicts. He pointed to a company called Future 500 that has created a business out of mediating between corporations and communities. "It’s hard for companies to speak to people so they use other companies to do it," Slavin said.

In fact, representatives from Future 500 appeared to be the only conference attendees who stepped outside to watch the protest.

"I think it’s great," Erik Wohlgemuth of Future 500, said of the protest. "I think press should have been there. I think more of these voices should have been there. My personal view is they need to come up with some sort of reduced rate to allow these nonprofits to attend these kinds of conferences."

Jeremy Shute, a representative from global infrastructure company AECOM who was standing with Wohlgemuth, said, "There’s a tremendous amount of research and thought going into these questions and it would be great if that knowledge could be shared."

But is that going to happen when private companies cite "proprietary interest" as a reason for not sharing more information about their businesses? Or when they don’t have to abide by public records laws, leaving their contracts shielded from public scrutiny? Or when they refuse to answer calls from their constituencies and the media? In which case, should those advocates be in the same room as some of the biggest water users in the world? When pressed with the question, Slavin seemed stumped. "Why didn’t we invite them?" he asked. Then, after a long, thoughtful pause, he said, "I don’t know."

————————

WATER, BY THE NUMBERS

One-half of 1 percent of the world’s water is fresh. [1]

Of that .5 percent, about 50 percent is polluted. [2]

One in 6 people don’t have access to clean, safe water. [3]

Five food and beverage giants — Nestlé, Unilever, Coca-Cola, Anheuser Busch, and Groupe Danone — consume almost 575 billion liters of water per year, enough to satisfy the daily water needs of every person on the planet. [4]

The average human needs about 13 gallons of water each day for drinking, cooking, and sanitation. [5]

An average North American uses about 150 gallons of water each day. [6]

An average African: 1.5 gallons. [7]

An average San Franciscan: 72 gallons. [8]

The average Los Angeles resident: 122 gallons. [9]

About half the water used by a typical home goes for lawns, gardens, and pools. [10]

50 percent of US water comes from non-renewable groundwater. [11]

86 percent of Americans get their water from public water systems. [12]

80 percent of California’s homes get water from public systems. [13]

The 20 percent of CA households receiving water from privately-owned systems pay an average of 20 percent more for it. [14]

Of the 4.5 billion people with access to clean drinking water worldwide, 15 percent are buying it from private water companies. [15]

It takes 3 liters of water to produce 1 liter of bottled water. [16]

Tests of 1,000 bottles of water spanning 103 brands revealed that about one-third contained some level of contamination. [17]

The bottled water industry is worth $60 billion a year. [18]

Water is the third biggest industry in the world, worth $425 billion, ranking just behind electricity and oil. [19]

About 70 percent of CA’s water lies north of Sacramento, but 80 percent of the demand is from the southern two-thirds of the state. [20]

[1] www.gwb.com.au/gwb/news/mai/water12.htm

[2] Maude Barlow, interview with SFBG

[3] foodandwaterwatch.org/world/utf8-america/water-privatization/ecuador/bechtel-in-guayaquil-ecuador

[4] The Economist magazine

[5] www.ens-newswire.com/ens/mar2002/2002-03-22-01.asp

[6] www.canadians.org/water/publications/water%20commons/section4.html; environment.about.com/od/greenlivinginyourhome/a/laundry_soaps.htm

[7] montessori-amman-imman-project.blogspot.com/2008/01/in-news-interview-with-ariane-kirtley.html; answers.yahoo.com/question/index?qid=20080304195801AAnrv4Y

[8] sfwater.org/mto_main.cfm/MC_ID/13/MSC_ID/168/MTO_ID/355

[9] www.nwf.org/nationalwildlife/article.cfm?articleId=928&issueId=68

[10] American Water Works Association

[11] www.canadians.org/integratethis/water/2008/May-28.html

[12] www.foodandwaterwatch.org/water/private-vs-public

[13] California Public Utilities Commission

[14] Black and Veatch’s 2006 California Water Rate Survey

[15] www.canadians.org/water/publications/water%20commons/section2.html

[16] www.pacinst.org/topics/water_and_sustainability/bottled_water/bottled_water_and_energy.html

[17] Natural Resources Defense Council study, "Pure water or pure hype?" (1999)

[18] www.bottlemania.net/excerpt.html

[19] www.timesonline.co.uk/tol/money/article4086457.ece; thegreenblog.leedphilly.com

[20] www.energy.ca.gov/2005publications/CEC-700-2005-011/CEC-700-2005-011-SF.PDF

Ricky Angel and Katie Baker assisted with research.

Cut half the general fund?

6

by Tim Redmond

I’m not kidding. That’s what the numbers right now suggest. San Francisco over the next year could face a budget deficit of $576 million — almost half of the entire discretionary money that the city has to spend.

Mayor Gavin Newsom, frankly, is entirely missing in action on this one. He’s been hiding out, doing his budget discussions in secret, playing Where’s Waldo (even showing up that the board meeting without a budget plan) and leaving City Hall and thousands of city workers, nonprofits and activists wondering what the hell is going on. The lack of leadership is mind boggling.

In the vacuum, the Coalition to Save Public Health has proposed a series of alternative cuts, and Sup. Aaron Peskin, writing in tomorrow’s Bay Guardian, suggests that the board consider them. The proposals include eliminating unnecessary jobs that pay more than $100,000 a year, cutting back the mayor’s seven-person PR staff, cutting the money the city gives to the Opera and Symphony and re-opening the police and fire contracts. These are all good ideas — and they might, in the best of all circumstances, add up to ten or 20 percent of the deficit.

The reality is that the mayor is going to be making some brutal cuts now — and it will be much worse in a few months, when the supervisors have to deal with the next fiscal year’s budget. You can’t cut half a billion dollars out of San Francisco city government without eliminating a lot of essential programs. Public health? Decimated. Parks and Rec? A wreck. Muni? Service will get way worse, fares may go up, and the city’s commitment to public transit will be at risk. What’s the city do for you? Get ready to give it up.

And you think the job market is bad now and the recession starting to hit the city hard? Imagine when a few thousand city employees join the unemployment lines.

So what are we supposed to do? Let me make a suggestion.

The worst thing a government agency can do in a recession is cut spending. The feds can borrow money and keep spending, but the city can’t. So we simply need to face the fact that this is an emergency, a crisis, the worst situation since the 1930s – and we need to look for new revenue.

We can’t mess around with half steps, either. We need big money, right now – and the best, most fair and progressive way to get that is with an income tax.

Now, the city can’t just impose an income tax on residents, the way New York City and Philadelphia do. The California Constitution pre-empts that. But the city CAN levy a tax on all income earned within the city. So the commuters pay, too (although residents who live here and work somewhere else don’t; it’s an imperfect world). Oakland passed a tax on income earned in the city in the 1970s, and the issue went all the way to the state Supreme Court, which ruled in Weekes v. City of Oakland that the tax was perfectly legal (the City Council dropped the tax anyway). Here’s an opinion on it.

The nice thing about income taxes is that they hit the rich harder than the poor. In fact, San Francisco could exempt, say, the first $100.000 of income, then use a progressive scale to make sure that only well-off people paid anything, and the richest paid the most. Even in a recession, there are rich people in this town, people who have done very well under the Bush tax cuts – and shifting money from the rich to the poor during a recession is excellent economics.

And an income tax could actually bring in enough cash to make a real difference.

Of course, the rich people who pay it can deduct the local tax from their state and federal returns – so a lot of the money actually comes to SF from Washington and Sacramento.

Passing something like this would be a huge political challenge – it would have to go on the ballot, and nobody wants new taxes, and the Chamber of Commerce types would howl and raise huge sums to defeat it. It could only work if the entire City Hall establishment, starting with the mayor, was willing to go out and campaign, hard, for the measure. Make it temporary – the tax would expire in two years. Make it progressive – nobody who is hurting financially would pay a heavy burden. And tell the voters: We tax the rich, or we close libraries, and eliminate Muni lines, and take cops off the streets, and close fire stations, and let sick people die because they can’t see doctors – and watch the local economy fall even deeper into recession as city spending plummets.

Because that’s what we’re talking about here. These are the choices.

There’s a good chance the state will have a special election in the spring – a tax measure could go on the ballot then. Or the city could hold its own special election. And if the city income tax doesn’t fly, I’m open to something – anything – else. But is has to be big, and we have to move on it now.

Any takers?

Throwing money at Muni

3

By Tim Redmond

I’m not surprised that C.W. Nevius, who lives in the East Bay suburbs and drives into work at the Chron every day, doesn’t like the idea of congestion pricing.

But his column doesn’t entirely add up. I mean, I though he likedmodern capitalism, which is an economic philosophy based on incentives. You give people an incentive to drive downtown — like free or cheap parking — and you never charge them for the external costs of their actions, and they are, by and large, more likely to drive. You take away that incentive — by, say, charging a fee that reflects in some modest way the additional costs to the city, the environment and society as a whole of their behavior — and driving downtown may diminish. That’s pretty basic stuff.

But he’re the big mistake:

It makes you wonder about the numbers the proponents keep throwing out. Between $35 million and $60 million will be generated each year, they say. Add that to the funds the advocates hope to get from the federal government, and they insist it will all come together. The money will dramatically improve mass transit, fewer people will want to drive in the city, and more of them will happily get aboard the bus, or BART, or Caltrain.

Let’s see, just throw more money at public transit and everything will improve. Have we heard that before? You bet we have and the problems persist.

I recognize that throwing money at the problem doesn’t solve everything. It’s not always the smartest thing for government to do, and often it doesn’t work at all.

But public transportation, like public education, is an area where throwing money around really does make a difference. Spend more on Muni and Muni gets better. Cut Muni’s budget and service gets worse. There are other factors (the competance of management etc.) but on a linear regression line, the correlation between money and quality or service is going to be pretty direct.

The reason mass transit isn’t up to Nevius’ standards is mostly because we don’t fund it adequately. Making the (mostly wealthy) people who drive — and pollute the air and contribute to congestion and global warming — pay a small fee to offset just a part of those costs, and use that fee to improve transit, makes perfect sense.

Hank Plante busts the mayor!

3

Why did Mayor Newsom buy a $51,000 Chevy car in Colma when the only Chevy dealership in San Francisco is going out of business? Scroll down for the KPIX video showing how Hank Plante busts the mayor.

By Bruce B. Brugmann

10.jpg
Photo by Paula Connelly

Newsom’s driver and new Chevy Hybrid Tahoe SUV vehicle, parked in front of the Ark toy store on 24th Street, during a press conference launching the Shop Local–Get More campaign. The city bought the car from a dealership in Colma for $51,000.

It was marvelous. Simply marvelous. Hank Plante busts the mayor.

Let me set the scene: The reporters and small business leaders on Wednesday (Dec. 5) were packed in the Ark, a toyshop on 24th Street, for a press conference to launch formally the “Shop Local–Get More” campaign aimed at getting San Franciscans and everyone else to shop local in San Francisco this holiday season.

Steve Falk, president of the San Francisco Chamber of Commerce, laid out the chamber’s extensive program for its members to give substantial discounts to customers. Gerald Johnson, owner of the Ark, explained how his store would give 10 per cent off your next purchase with a purchase of more than $100. Mayor Newsom, who rolled in late in his city car, gave a zippy little talk about the values of shopping local and helping out the merchants and business community during tough times.

Newsom is at his best at these informal occasions, a little pep talk here, a genial smile and gesture there, lots of jutting jaw, no tough questions please. Then came time for questions and Newsom visibly relaxed for what he hoped would be some Noe Valley soft balls.

Hank Plante, the savvy political editor of KPIX Television (Channel 5), was positioned in the front of the crowd with his television cameraman and his camera was whirring away. He led off with a timely question.

“Mr. Mayor, you want people to shop in San Francisco. You know the car dealerships are in trouble. Can you tell us why you didn’t buy your new official city car here in the city?”

Newsom replied testily, “Uh, I have no idea. Thanks for the Gotcha question and I don’t have a clue. I didn’t have anything to do with the purchase of that car.” He said he would find out what happened and get back with the answer.

Plante reported the exchange in the KPIX newscast that night. He said, “We’re losing our last Chevy dealership” in San Francisco. He said that the new car was a Chevy Tahoe Hybrid SUV that cost $51,000 at a dealership in Colma. He pointed out that the Chevy was one of the “most visible purchases the mayor made this year.” Marie Brooks, from Ellis Brooks Chevy dealership on Van Ness Avenue, told Plante, “I think it’s wrong for one of our city officials to buy anything outside the city.” Ellis Brooks is a family-owned car dealership and one of the oldest and most famous local names in selling cars in Northern California.

Plante reported that Newsom kept ducking the question and later refused to allow the press corps to take a picture of him leaving the press conference in his gleaming black hybrid car parked in front of the toy store (see pic above.) KPIX showed video footage of Newsom not getting into the car and walking down 24th street.

Plante had nailed a point that has been agitating the small (and big) business community for years. Scott Hauge, a prominent small business leader and founder and president of Small Business California, was at the press conference and picked up on the point immediately. In his followup email to small business people in the city, Hauge noted he had attended the press conference “where the mayor was promoting a shop SF campaign.

“I applaud the mayor and others like the SF Chamber, Bay Guardian, Small Business Commission and Hotel Council for their efforts. What I didn’t hear was anything the city will do to require SF City agencies to buy from SF companies located in SF.”

Then Hauge zeroed in. “SF government does not have a very good track record in this area. In fact the mayor was asked why he did not purchase his hybrid vehicle in SF and he said he didn’t know why. Now is the time to push this issue. SF businesses have a higher cost of doing business because of mandates imposed on us. It seems to me that the least the city can do is buy from SF businesses.” I think he’s spot on.

And so Plante, Hauge, the Guardian, and small (and big) business in San Francisco are waiting anxiously for Newsom’s explanation why he bought a $51,000 city Chevy vehicle in Colma and not in San Francisco where our last Chevy dealership is on hard times and going out of business. And we are all waiting even more anxiously to hear what the mayor plans to do to correct this Shop- outside -San Francisco-syndrome and get the city working to spend its tens of millions of dollars of city tax dollars on businesses and services in San Francisco.

P.S. Full disclosure: the Guardian is a sponsor of the Shop Local campaign. And we sent a delegation to the press conference: Sales and Marketing Director Jennifer Lachman, Vice President of Operations Daniel B. Brugmann, Online and Print Advertising Coordinator Rebecca Frank, Assistant to the Publisher Paula Connelly who took the press conference photos, and myself. We are happy to pitch in on this critical and timely endeavor to put as much instant cash as possible into our local businesses and our community.

Our contribution, as a locally owned, independent newsweekly, is our own Shop Local campaign featuring a key marketing line derived from an analysis provided by the Business Alliance of Local Living Economies (BALLE), using a formula created by the consulting firm Civic Economics. This data is dramatic. It shows that if our 600,000 or so Guardian readers would spend $l00 with locally owned, independent businesses in San Francisco during the holiday season, that would inject $99 million into the San Francisco economy. Immediately.

That’s nearly $15 million more dollars than the city would see if that money were spent on chain stores that send their revenues back to headquarters. That’s because money spent at local businesses tends to stay and circulate in the community and create more local jobs and economic activity and of course more tax dollars for the city. The Guardian is also leading a national Shop Local campaign among alternative papers that would put several billion dollars in total into local economies all over the country. As Guardian Executive editor Tim Redmond puts it, “A sustainable community needs a sustainable economy, and that starts with locally owned, independent businesses.”

Unsolicited advice for the mayor and anybody else at City Hall who keeps sending our money outside of town: check the policy of the San Francisco International Airport that mandates locally owned small businesses get most of the juicy airport franchises. That policy works and works well. When I go through the airport, I always stop to get something to eat at Klein’s Deli. Klein’s was named after Deborah Klein, a Guardian circulation manager in the mid- 1970s who became a restaurant entrepreneur in San Francisco. For many years, she ran Klein’s Deli on 20th Street atop Potrero Hill. B3

Click here to watch yesterday’s KPIX newscast.

Click here to see Guardian photo coverage of the press conference.

Transforming traffic analysis

0

› news@sfbg.com

GREEN CITY A court injunction against new bicycle projects in San Francisco (see "Stationary biking," 5/16/07) could get lifted next year, thanks to environmental studies released Nov. 26 and headed to the Board of Supervisors next month. But it’s a subtle, technical change in how city officials analyze traffic impacts that could have a more far-reaching implications.

It’s called Level of Service Reform and it would change the triggering mechanism for when projects need to conduct full-blown environmental impact reports, an expensive and time-consuming requirement that led to the three-year bike project injunction. And LOS reform has been rattling around the city bureaucracy long before the Guardian wrote about it two-and-a-half years ago ("The slow lane," 5/17/06).

"It’s either wonderful that I started working on this in 2002, or it’s embarrassing," Rachel Hiatt of the San Francisco Transportation Authority told a Nov. 19 meeting of TransForm (formerly the Transportation and Land Use Coalition) on the subject.

The California Environmental Quality Act of 1970 requires EIRs for projects with potentially significant environmental impacts, as is the case when the level of service (LOS) at an intersection could be changed. LOS is measured by the amount of time it takes a car to pass through a given area. The time consumed by the car is often referred to as control delay. Measured by grades A through F, control delay per motor vehicle times of up to 30 seconds (E grade) are acceptable in San Francisco.

Designating sections of certain busy streets to accommodate a bike lane would affect the control delay, thereby earning the area a lower LOS grade. Since cars now essentially have priority over alternative forms of transportation, many potential bike lanes have been stranded by the LOS standard.

City officials are working to replace the LOS measure with a new one based on auto trips generated (ATG), using 1 ATG as the threshold for an EIR. Projects that generate no car trips will not be seen as having any environmental impact, thereby moving through the approval process quicker and cheaper.

"LOS needs to be taken out of the picture," Hiatt said.

The argument for LOS replacement is not solely about the need to accommodate other transit modes, but about lowering costs and making government more efficient. Hiatt outlined other problems with the current measure as the failure to accurately gauge environmental impact, failure to reflect the city’s "transit-first" policy priorities, and an inefficient CEQA review process.

Development advisor Mike Yarne of the San Francisco Mayor’s Office of Economic and Workforce Development said that if the city wants to topple LOS, the Transit Authority has a case to make. "What the TA needs to show is that ATG is a more effective proxy to calculate environmental harm," Yarne said.

The city is also considering instituting a mitigation fee to be paid by project sponsors to compensate for environmental impact. Proceeds from the fee will be used to enhance all existing modes of transit, pedestrian safety, and could even include planting trees.

"The fee will go toward making people move faster," Yarne said.

Yarne admits that it could be a little difficult to make both changes at once. San Francisco will be the first city in California to create a mitigation fee, so other cities are taking notes.

"It would be quite an accomplishment if we could make it happen. It’s never been done," explained Yarne, noting that most cities have come to recognize that CEQA does not work well in urban areas. "The irony of ironies is the stopping of the bike plan."

Last week the TA released a Draft Environmental Impact Report for the San Francisco Bicycle Plan. With almost 900 days since the last new bike lane was constructed, the new bike plan will allow a roughly 75 percent increase to the current network..

San Francisco Bicycle Coalition Executive Director Leah Shahum expressed hope in the potential of the new EIR, slated to be approved this spring, after which the plan will be finalized and the city can go back to court to try to get the injunction lifted.

"The draft EIR is definitely a big step toward completion, but more needs to be done," she said. "The ridiculous exercise of slowing the bike plan down is a great case for why we need environmental review reform."

After the bubble

0

› amanda@sfbg.com

Speculators will be able to sit on tracts of San Francisco land until the market improves. Development impact fees will be set too low to cover the costs of neighborhood improvements like parks, streets, and transit. Affordable housing development is intimately tied to a busted market rate-housing boom.

This is the future of the eastern South of Market, Potrero Hill, Central Waterfront, and Mission District neighborhoods as laid out in the Eastern Neighborhoods Plan, a community rezoning effort that began in 2001 that now fills a binder thicker than a weightlifter’s bicep.

After more than 30 public hearings, the plan is approaching final approval by the Board of Supervisors. While some are lauding all the heavy lifting that’s been done to get it to this stage, there are still some noticeable shortcomings.

"The plan itself is despicably deficient in terms of affordable housing," housing activist Calvin Welch told the Guardian. That sentiment was echoed by spokespeople from the Mission Anti-Displacement Coalition and the South of Market Community Action Network, who may join together in a legal challenge of the plan’s Environmental Impact Report for failing to properly consider socioeconomic impacts.

"There will be environmental impacts in terms of displacement, increased amounts of traffic and cars, increased levels of noise," said April Veneracion, SOMCAN’s organization director. "The Board of Supervisors could have addressed these inadequacies in the EIR with amendments."

Some last minute amendments were added that would audit the financing of projects and reduce land speculation — but due to a tricky legislative maneuver, even these concessions could be axed by a veto from Mayor Gavin Newsom.

The bulk of the plan rezones vast tracts of industrial land on the eastern flank of the city for housing, mixed urban use (including retail and commercial sites), and a light industrial category called "production, distribution, and repair" (PDR) that protects many of the working-class jobs remaining in San Francisco.

Building height limits will increase in some areas and remain at 40 feet in others. Between 7,000 and 10,000 new units of housing are anticipated, with affordable housing rates between 15 to 25 percent, depending on the location and project.

However, the one method of financing affordable housing — known as inclusionary housing, which requires market-rate developers to include a certain percentage of affordable units — is entirely linked to a now-waning economic boom. "Events have rendered it meaningless," said Welch. "The Eastern Neighborhoods Plan is a plan predicated on a red-hot real estate market. Planning has no ability to shift with the market and the market, since mid-September, has changed radically."

The Controller’s Office recently readjusted the city’s revenue projections, suggesting a $90 to $125 million budget shortfall in the current fiscal year, with 40 to 49 percent of that directly connected to flagging real estate transactions.

Yet housing in the Eastern Neighborhoods Plan remains primarily composed of market-rate units, fetching upward of $700,000 apiece, with "middle-income" units discounted to half that, and below-market-rate apartments still costing over $200,000 each. Development impact fees are set for $10 per square foot of construction — not enough to cover the proposed improvements that would make these industrial areas pleasant and safe for everyday residential living and working.

"In order to support the population that’s expected to move in, you need transit improvements, park improvements, street improvements," said Tony Kelly of the Potrero Boosters, a neighborhood group. "Less than half [of these] have been funded by the project."

He characterized the approved parts of the plan as "pretty weak." "They’re rezoning 500 acres of industrial land for housing — predominantly market-rate — right at a time when no one’s building market-rate housing," Kelly said. He also said the plan lacked many creative financing ideas. "When the area plans were presented to our neighborhood back in 2006, the Planning Department outlined all the things a neighborhood needs. There was a chart with 18 different ways to pay for it. How many are now in the plan? One."

Ways to ensure that developer fees are used well and land doesn’t sit fallow were introduced at the last minute. Amendments to the plan, made by Sup. Aaron Peskin, require audits of the neighborhood improvement fees and forcing developers to actually build rather than speculate — but they received a potentially fatal last-minute blow.

The Board’s first vote on the plan occurred during the Nov. 18 meeting and the bulk of the plan received unanimous support (minus Sup. Chris Daly, who is recused from voting because he owns property in the plan area).

But late in the game, a standoff arose between Peskin and Sup. Sean Elsbernd, who opposed blindly rubberstamping the last-minute amendments offered by Peskin during the previous night’s Land Use and Economic Development Committee hearing.

"We saw the actual language of this if you looked in your e-mail in the last two hours," Elsbernd said during the heat of the Board hearing. "I’d like a week to read the changes made by you last night."

The Board voted to continue the matter for a week, but then, at the end of that day’s business, Peskin rescinded the vote and forced the issue. As promised, Elsbernd severed the four Peskin amendments — a legislative tactic that allows one supervisor to slice out parts of legislation and place them into individual files for separate votes.

Peskin countered by severing another amendment, added by Sup. Gerardo Sandoval, which would have allowed special height increases for two lots on Mission Street, where the New Mission Theatre and the Giant Value store currently sit. Gus Murad, who owns the properties as well as the adjacent restaurant Medjool, has been lobbying to convert the properties to commercial and residential space.

The supervisors shot down the "spot zoning" amendment that would let future buildings on the two sites to be built higher than what’s currently allowed on Mission Street. MAC spokesperson Nick Pagoulatos later applauded the move: "It would have been a ridiculous exception to make and one that clearly favored one developer."

Despite Elsbernd’s move to sever the amendments, all four passed, but didn’t receive enough votes to block a veto from Newsom. Supervisors Carmen Chu and Michela Alioto-Pier voted with Elsbernd.

The mayor’s ability to line-item veto some key protections sought by neighborhood activists was at the heart of the move. "That’s absolutely right," Elsbernd told the Guardian, who added that although he hadn’t spoken with Newsom and didn’t know his intentions, "These are issues that absolutely concern me."

The amendments add "metering" and "use it or lose it" provisions to the plan. Metering is essentially an audit performed by the board every five years to ensure that collected developer impact fees are used properly. Peskin said that while they couldn’t meet all the requests of neighborhood groups and housing rights activists, "this was something that we could do that made good public policy sense."

Elsbernd told the Guardian he didn’t object to the concept of metering but would like oversight by the Controller’s Office. "Metering gives the Board of Supervisors full power and takes the executive out of the mix," he said of the plan as it stands now, adding that it should be viewed as a long-term protection. "This is not about Mayor Gavin Newsom. It’s about Mayor Mirkarimi or Mayor Peskin."

The "use it or lose it" requirements are designed to reduce speculation by mandating that a developer with a project that has received a green light from the Planning Department must procure a building permit within three years, after which they have one year to break ground. Currently, there’s no limit to the amount of time a developer can sit on a property, which becomes more valuable after receiving city approval.

Elsbernd said, "Three years is just not fair," but again, he said he thought there was a middle ground and would like to see project developers given opportunities to make cases for extensions. However, if the developer has one of those grandfathered projects that doesn’t have to meet the new, stricter inclusionary housing regulations or pay public benefits charges, they should "have to pay full fare, full affordability, full fees," said Elsbernd.

A second vote on the plan and its amendments is scheduled for the Nov. 25 Board meeting, after Guardian press deadline, but Elsbernd expressed optimism about a compromise as part of last-minute dealmaking. "I would say there’s a possibility, as colleagues realize the potential mayoral veto."

Still, Welch pointed out that resistance to a "use it or lose it" protection is proof that San Francisco’s real estate market is in no way immune to the economic crisis afflicting the rest of the country. "The assumption built into the Eastern Neighborhoods Plan was this robust growing market for condo development and I think the bubble has burst," said Welch. "If that isn’t the case, then why would developers care about a requirement that says you have to build in three years? The Mayor’s Office told me the phones were melting after Monday night’s amendments passed."

But Welch said one of the great ironies of a market-rate housing crash is that it makes nonprofit housing development even more competitive. "That’s why we pushed so hard for ‘use it or lose it.’ It forces developers to say to the city ‘we’ll do it,’ or ‘would you like to buy the site?’<0x2009>" He said the city should be poised to buy those sites in order to build affordable housing and suggested the city lobby Barack Obama’s administration for the funds to do it as part of the large infrastructure improvements planned by the president-elect.

"I think the way housing is financed is going to be totally transformed and the federal government is going to play a bigger role," said Welch. *

Tyranny of the majority

0

› steve@sfbg.com

When the California Supreme Court agreed last week to decide the legality of Proposition 8 — which a slim majority of Californians passed Nov. 4, taking from same-sex couples the marriage rights that the court had established in May — the debate shifted to a concept far older than that of gay rights.

Essentially, it will decide whether this is a case of the "tyranny of the majority," a phrase Alexis de Tocqueville coined in his classic 1835 book Democracy in America, drawing on a concept from the ancient Greeks that was the philosophical underpinning of the US Bill of Rights and the central paradigm of constitutional democracy.

The founding principle is that basic rights — such as the freedoms of speech, religion, and association — are not subject to majority approval and can’t be taken away by a simple popular vote. So the question now before the judges is whether the right to marry, which the court ruled had been unconstitutionally withheld from same-sex couples, is among those core rights.

"The whole notion of equal protection is to protect minority interests from the periodic discriminatory impulse of the majority," Robert Rubin, legal director for the Bay Area chapter of the Lawyers Committee for Civil Rights, told the Guardian. "And [upholding Prop. 8] would turn that on its head."

‘CONSTITUTIONAL CRISIS’


Even before the votes were counted election night, the San Francisco City Attorney’s Office and its counterparts in Santa Clara County and the city of Los Angeles were developing their challenge to the legality of Prop. 8, which they filed Nov. 5.

Both Prop. 8 proponents and the California Attorney General’s Office agreed that the high court should immediately take the case rather than let it rattle around the lower courts for months or years. "Review by this Court is necessary to ensure uniformity of decision, finality and certainty for the citizens of California," Attorney General Jerry Brown wrote to the court.

Brown had previously ruled that the roughly 18,000 marriages performed since May were legal and that Prop. 8 is not retroactive, something proponents of the measure dispute and which the Supreme Court also has agreed to decide in this case. But two of the three "issues to be briefed and argued," as the high court ruled Nov. 19, were more fundamental: "1) Is Proposition 8 invalid because it constitutes a revision of, rather than an amendment to, the California Constitution? (see Cal. Const., art. XVIII, 1-4) 2) Does Proposition 8 violate the separation of powers doctrine under the California Constitution?"

Narrowly framed, the first question asks whether the process of banning same-sex marriage in the constitution should have gone through the more cumbersome revision process, which involves winning a two-thirds vote in the California Legislature before submitting the measure to voters. And the second concerns whether the legislative branch of government (in this case, through a direct vote of the people) can legally override this decision by the judicial branch.

But more broadly framed, both questions go to the same basic issue: can a simple majority of voters take away rights from a protected minority group, one the judicial branch has already ruled is entitled to the same marriage rights as heterosexual couples? The implications of that answer are so profound that City Attorney Dennis Herrera, in a City Hall press conference after the court announced its decision, cast the matter as no less than a "constitutional crisis."

"The cases before the Supreme Court today are no simple rematch. To be candid, the principles implicated here are of far greater consequence than marriage alone," Herrera said. "In short, this case has gone beyond the simple issue of marriage equality. And no matter what your view of same-sex marriage is, it’s important to understand that the passage of Proposition 8 has pushed California to the brink of a constitutional crisis."

He then explained why.

"This measure sought to do something that no other constitutional amendment has ever done here in the state of California, and that is to strip a fundamental right from a protected class of citizens and in doing so, it did not merely undo a narrowly disfavored Supreme Court ruling. Its legal effect is nowhere [near that] simple or elegant. Rather, it upended a separation of powers doctrine deeply rooted in our system of governance. It trounced upon the independence of the state’s judicial branch and it eviscerated the most fundamental principle of our state’s constitution. And if allowed to stand, Proposition 8 so devastates the principle of equal protection that it would endanger fundamental rights of any potential electoral minority, even for protected classes based on gender, race, or religion. And it would mean a bare majority of voters could enshrine any manner of discrimination against any unpopular group, and our state constitution would be powerless to disallow it," Herrera said.

That’s why he said 12 cities and counties have joined this suit — including Los Angeles and Alameda counties, which were not part of the original same-sex marriage case — along with supporting roles being played by the NAACP, the Mexican-American Legal Defense Fund, the Asia Pacific American Legal Center, and California Council of Churches.

There is some irony to the Council of Churches’ involvement given that religious groups, particularly the Catholics and Mormons, provided the backbone of financial and volunteer support for the Yes on 8 campaign. Yet the council argues that Prop. 8 is an attack on religious freedom.

"It is kind of ironic, and I don’t they they’re paying attention to the big picture, to be honest with you," Eric Isaacson, attorney for the Council of Churches, told the Guardian. "But history tells us that religious groups are often the victims of such persecution."

He cited laws that have taken rights from Jews in many countries and instances of majorities in the United States going after Jehovah’s Witnesses and the Mormons, a group driven from state to state by discriminatory mobs until they finally settled in Utah to enjoy religious freedom.

Beyond the historical and precedent-setting nature of the case, the council’s executive director Rick Schlosser told the Guardian that Prop. 8 discriminates against Episcopal, Unitarian, and other churches that believe all people have the right to marry.

"We work on a lot of religious freedom issues and there’s a huge number of churches that support the right of people to marry," Schlosser said. "There are a lot of churches that think it’s their religious duty to perform same-sex marriages."

CONFLICTING TRADITIONS


Frank Schubert, who managed the Yes on 8 campaign, scoffs at attempts to frame this debate around larger constitutional issues: "This is simply about marriage and what the definition of marriage will be."

He called the chances of overturning the measure "minuscule," and said, "the constitution belongs to the people." Rather than an initiative upsetting constitutional traditions, Schubert blamed the Supreme Court for reinterpreting marriage: "It’s the first time in California that rights that did not exist were granted on a narrow court decision and the people corrected that."

Yet the traditional gender structure of marriage is now in conflict with traditions of equal protection and separation of powers, something same-sex marriage advocates say needs to be the subject of a concerted public education campaign.

"There is a major civics education to be undertaken," Rubin said, recalling how he was also criticized publicly in 1994 for his role in winning a restraining order against Proposition 187, which sought to withhold government services from undocumented immigrants. "Yet the notion that protecting minority interests is not subject to popular will is not that hard to understand."

Maybe, but some constitutional law scholars say the formulation is not quite that simple. "The notion that a majority can’t take away a minority group’s rights, that just isn’t true," said UC Berkeley’s Boalt School of Law professor Jesse Choper. He takes a less philosophical view of the case, noting that California law explicitly allows the constitution to be amended, essentially however the people see fit, a process far easier than the one to change the federal constitution.

Choper said the specific question before the court is whether voters can remove same-sex marriage rights from the constitution. "And the answer is yes, if they do it properly," he said. That determination will come down to whether the judges believe this change is a mere amendment, or a more serious revision. Choper said the case law on that question isn’t well-established, but his reading of it is that plaintiffs face a real challenge in arguing that a simple change to the constitution — albeit a weighty one — requires the revision process. "It’s uphill," he said. "They’ll have to cut a new cloth."

But Herrera and his fellow plaintiffs don’t agree. While he characterized the coming legal battle as difficult and complicated, he expressed confidence in their ability to show that Prop. 8 changes core constitutional principles.

"That’s why I think this is a revision rather than amendment, because it would so radically change the balance of power and responsibility between our branches of government," Herrera said.

Santa Clara County Attorney Ann Ravel, who joined Herrera’s press conference, agreed, stepping up the podium to say, "Let me just add something to that. If this is not a case of revision, it’s hard to imagine any case that the court might find there to have been a revision, and there have been some."

While Choper may not agree with the plaintiffs on how the court will decide the equal protection questions, he does agree that the outcome could have serious implications for minority rights and the ability of voters to target disfavored groups. "If they can do it to this minority, they can do it to other minorities," Choper said.

Rubin said the religious groups pushing Prop. 8 are being short-sighted: "What they may like today when they have 51 percent of the vote, tomorrow they may be on the 49 percent side and may not like that basic rights come down to majority rule."

And that’s why the issue gets elevated to the larger question of whether this is a case of tyranny of the majority, something that could become an issue for the federal courts, which is likely to see cases challenging whether lax California standards on precedent-setting initiatives might run afoul of bedrock principles in the US Constitution.

"Yes of course you could challenge it in the federal court," Choper said. "If Prop. 8 stands, someone will bring a case about whether discrimination against gay marriages violates the equal protection clause of the federal constitution."

Herrera said he doesn’t want to go there yet, but he left that door open in response to a question from the Guardian: "Are there potential federal issues down the road that could be raised or discussed? It’s no secret that’s potentially there, but at this point, I don’t think that’s something that we’re going to focus on."

THE LONG VIEW


While the judges and lawyers in this case may focus on narrow legal concepts and definitions, Herrera is seeking to present the case in a far grander context.

"Equal protection under the law is what separates constitutional democracy from mob rule tyranny and it is a principle that reaches back eight centuries to the Magna Carta and it has guided the founding of our nation and our state," he said. "So I understand that on same-sex marriage, the emotions on both sides run high, but it’s important to understand the legal stakes are even higher. The cases before the high court today are no longer about marriage rights alone. They are about the foundations of our constitution. And as citizens we share the blessing of a common jurisprudence, and I refuse to accept that it is beyond us to find common ground in its enduring and deeply American principles: equality under the law, separation of powers, and an independent judiciary."

Ravel reinforced Herrera’s perspective, telling reporters, "The Supreme Court is going to decide, as Dennis said, a question that goes to the very foundation of our democracy and that will also impact every city and county in the state. The court has held, previously, that all couples have to be treated equally when it comes to the important institution of marriage. A majority of voters can’t undercut the court’s role in protecting minorities in our society."

Essentially, this is no longer a case about same-sex marriage.

"The merits of the case are different than they were back in May. The fact of the matter is the California Supreme Court found there was a fundamental right to marry and that LGBT couples are entitled to that right. The issue here is should Prop. 8 be struck down because it was an improper amendment versus a revision," Herrera said. "So I think everybody is focused on the right issues." *

Stiglitz: What went wrong

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This article by Joseph Stiglitz, a Nobel prizing winning economist and professor of economics at Columbia University in New York City, is one of the best I’ve seen on what went wrong with the economy and what can be done about it by the Obama team. It appeared in the November Vanity Fair magazine, shortly before the election.
His monthly column will appear in the Bruce blog. B3

Getty.jpg
The past as prologue? Lining up for food and water, Louisville, Kentucky, 1937. By Margaret Bourke-White/Time & Life Pictures/Getty Images.

Reversal of Fortune

Describing how ideology, special-interest pressure, populist politics, and sheer incompetence have left the U.S. economy on life support, the author puts forth a clear, commonsense plan to reverse the Bush-era follies and regain America’s economic sanity.

by Joseph E. Stiglitz November 2008

When the American economy enters a downturn, you often hear the experts debating whether it is likely to be V-shaped (short and sharp) or U-shaped (longer but milder). Today, the American economy may be entering a downturn that is best described as L-shaped. It is in a very low place indeed, and likely to remain there for some time to come.

Virtually all the indicators look grim. Inflation is running at an annual rate of nearly 6 percent, its highest level in 17 years. Unemployment stands at 6 percent; there has been no net job growth in the private sector for almost a year. Housing prices have fallen faster than at any time in memory—in Florida and California, by 30 percent or more. Banks are reporting record losses, only months after their executives walked off with record bonuses as their reward. President Bush inherited a $128 billion budget surplus from Bill Clinton; this year the federal government announced the second-largest budget deficit ever reported. During the eight years of the Bush administration, the national debt has increased by more than 65 percent, to nearly $10 trillion (to which the debts of Freddie Mac and Fannie Mae should now be added, according to the Congressional Budget Office). Meanwhile, we are saddled with the cost of two wars. The price tag for the one in Iraq alone will, by my estimate, ultimately exceed $3 trillion.

Click here to continue reading Joseph E. Stiglitz’s article published in the November 2008 issue of Vanity Fair.

Taxi merger

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› amanda@sfbg.com

A plan to merge the Taxi Commission with the Municipal Transportation Agency will be heard by the Board of Supervisors on Nov. 25. Most city officials and taxi industry bigwigs support the change, but some drivers fear it could signal the end of the semi-autonomous medallion system that has been in place for 30 years.

The merger legislation by Sup. Aaron Peskin is brief, simply transferring duties from the Taxi Commission to the MTA beginning March 1, 2009. But Peskin also helped write another key piece of legislation — last year’s sweeping MTA reform measure Proposition A — that contains a provision allowing the MTA to wipe out all prior taxi regulations.

Skeptics fear that the real target of the merger is Prop. K, the 1978 law that created the current driver permitting system, which requires taxi medallions that are owned by the city to be in every car. With the MTA in control, the door could be open to privatizing taxi medallions. These permits are currently leased by the city for a fee — $658 a year for most cabs — to longtime drivers, but a scheme to sell or transfer them could mean huge profits for the select group of drivers who now hold medallions, with a potentially high transfer fee kicked back to the city.

Reguutf8g San Francisco’s taxi industry involves ensuring cabs are being properly operated, with medallions held by legitimate drivers, and investigating various complaints. But the Taxi Commission barely has enough money to meet its mandate. Proponents of the merger say the MTA can bring more resources and professional attention to the industry. Mayor Gavin Newsom, who as a supervisor in 1998 pushed for formation of the Taxi Commission, has long supported the merger as a way to have all transportation housed in one agency.

“The benefit of merging is the MTA already regulates all surface transportation,” said Jordanna Thigpen, acting director of the Taxi Commission, who was appointed by Newsom after the Taxi Commission ousted Heidi Machen in 2006. “Most cities in the country do incorporate taxis into the common transportation agency.”

Currently, cab companies, medallion holders, and rank and file drivers essentially function as a feudal system, with the serfs driving San Franciscans around in vehicles usually owned by the lording cab companies and permitted by older drivers who hold the coveted medallions. There are only 1,500 of these permits, which are literally tin medallions that correspond to the numbers printed on the sides of cabs. They are owned and regulated by the city, and leased for life to drivers who wait years to move up the list.

Medallion holders make about $20,000 to $50,000 per year leasing their medallions to cab companies, which then charge drivers daily “gate fees” that are set by the city. Drivers pay an average of $96.50 per day to use a cab, but are allowed to pocket all their fares. Drivers usually clear about $150 a day, but that’s before paying gas, tolls, and tickets, and before even sometimes allegedly slipping bribes to dispatchers to get the best assignments. Drivers have no health insurance and are essentially treated as independent contractors.

Drivers have criticized the newly formed Taxi Advisory Group, which has made recommendations to the MTA and is likely to be expanded after the merger into a 15-member council, which would have only three drivers, but seven medallion holders and cab company representatives. Five members of the public would also be seated and their unanimous support would be required for a driver-led initiative or idea to trump the medallion and cab company bloc.

“We want a much greater and fairer representation on this Taxi Advisory Council,” said driver and United Taxicab Workers chair Bud Hazelkorn. “Without that, all the issues that we bring will not be heard.” Those issues include providing health care for drivers and creating a centralized dispatch system so fares are allocated more equitably. He pointed out that drivers are the only people in the system making all their income directly from fares. Everyone else in the industry gets slices from other pies.

And the existing provisions outlined by Prop. K may soon be a thing of the past.

Prop. A included language that allowed for the Taxi Commission merger and stated that once the MTA was in control, “Agency regulations shall thereafter supersede all previously adopted ordinances governing motor vehicles for hire that conflict with or duplicate such regulations.”

During the 2007 election season, this was interpreted by the UTW and Judge Quentin Kopp, a former supervisor who authored Prop. K, as possibly undermining the current medallion system. “The taxicabs CEOs have tried EIGHT times to undo Prop. K, failing each time as voters upheld this good government measure,” Kopp wrote in a paid ballot argument at the time. “Now encouraged by City Hall, Prop. A slips in a deceptive clause undoing 30 years of voter policy.”

Back in 2007, when seeking the Guardian‘s endorsement for Prop. A, Peskin told us, “I have met with the mayor. The mayor has no desire, as do I, to undermine Prop. K, and what we would do if we ever were to transfer the Taxi Commission to MTA, we would transfer upon the condition that they adhere to and embrace by regulation all of the previously voter approved ordinances, such as Prop. K. So I think we have it handled.”

Peskin said he reaffirmed that commitment in a letter, cosigned by Newsom, but neither office could locate a copy of that letter as of Guardian press time.

But at a Nov. 17 Government Audit and Oversight Committee meeting, Peskin asked MTA executive director Nathaniel Ford if it was his understanding that this merger was not to undermine Prop. K. “That is my understanding,” said Ford. “I think it is important to all stakeholders.”

Yet the interpretation is still correct. “The MTA will now have the authority to enact provisions that supersede Prop. K,” City Attorney’s Office spokesperson Matt Dorsey told the Guardian.

This past summer, the Taxi Commission established a Charter Reform Workgroup with a primary goal of reviewing Prop. K. The group is expected to meet for about six months with any recommendations subject to a citywide vote.

Although the workgroup has yet to release any specific statements regarding Prop. K, chairman Malcolm Heinecke believes it’s already making strides simply by opening up public discourse among citizens, companies, medallion holders, and drivers.

“One of the problems with the taxi industry and discussions of reform is that they are very insular,” said Heinecke, who is also an MTA board member. “I believe we have a balanced group of voices [in the group].”

Heinecke said he thinks varied stakeholders are essential because of broad dissatisfaction with Prop. K. “You hear everyone — both inside and outside the industry — bemoaning some aspect of Prop. K. It’s a system we’ve had in place for 30 years; rather than just say it’s bad and not do anything, [the goal of the workgroup] is to look at where we are and revise.”

While it may be true that no one is satisfied, that hardly means members of the factional workgroup agree on how exactly Prop. K should be changed. For some, the problem begins with issues of representation. Not everyone agrees with Heinecke that this is a “balanced group.” Of 12 members, there are just three drivers and three members of the public, with the rest representatives from the upper echelons of the industry.

Driver and UTW member Thomas George Williams pointed out that “companies and medallion holders often have the same interests — most companies are owned by medallion holders.”

Furthermore, Mark Gruberg, a UTW member, told us, “Everyone would say some things can and possibly should be done to improve provisions of Prop. K. But it’s one thing to work around the edges to reform a law and another thing to throw it out the window.”

He pointed out that one proposal before the workgroup would allow medallions to be sold for profit, something he said “would be a complete reversal of Prop. K.” If other cities are an example, medallions could fetch as much as $500,000 apiece, enough for the holder to retire handsomely. “People that have them would clean up at the expense of the next generation of cab drivers,” Gruberg said. “It would be a completely indefensible windfall.”

“This is public property, these medallions,” Hazelkorn said. “They could be misused as a pension, but that’s not a pension that applies to everyone.”

When questioned, Heinecke was vague about concrete changes the workgroup might instigate. “This is a delicate position for me because the whole purpose of the task force is to hear the views of all the stakeholders,” he said.

Taxi drivers, the serfs of the industry, do not have high hopes about the merger. “If the merger happens, the MTA [officials] will be able to do whatever they please,” Williams said. “Everyone knows MTA is always in need of money … they don’t care about drivers or improving industry, only their budget.”

Williams worries that, under the MTA, the commission will lease medallions to companies instead of individual drivers, which would “totally ruin the concept of Prop. K.” Gruberg agreed. He pointed out that some proposals mention levying a tax on the medallion transfers, a potential revenue source the MTA could be eyeing. “It’s a whole new ball game with MTA and if they’re so desperate for cash and they see the taxi industry as a cash cow, they might go for any scheme.”

MTA spokesperson Judson True told us, “We have no intention of looking to taxi revenue to supplement existing Muni operations.”

Judge Kopp said, “By itself that does not disturb Prop. K, but if that’s a fig leaf for some recommendation from this ersatz Charter Reform Workgroup, then it becomes ominous.” He said dressing the changes in a group with a pithy name like Charter Reform “is not reform, it’s subterfuge.”

And, he added, Prop. K doesn’t need reform as much as it needs enforcement. “They’ve been at this for 30 years. Their revisions are always to start to restore the pre-1978 conditions and enable them to treat these permits as personal possessions for sale.”

Peskin, with the approval of other members of the committee, calendared the full board hearing on the merger for a date after the MTA announces the result, expected sometime this week, of its national search for a director of taxi and accessible services. Solid leadership has been elusive: two years ago the Taxi Commission fired executive director Heidi Machen, reportedly for being too tough on cab companies. Machen was replaced by another Newsom appointee, Jordanna Thigpen, who said she has applied to stay on the job but doesn’t know if she’ll be selected.

When asked if the merger would unnecessarily stretch the MTA’s resources, Thigpen said, “On the one hand you could look at it that way. On the other hand, we’re so chronically understaffed. Trying to add staff is so complicated because we’re funded by the taxi industry.”

The taxi industry brings about $1.6 million in revenue to the city, mostly from fees paid by 1,500 medallion holders and about 7,000 drivers. However, “Fees do not currently meet the city’s cost recovery needs,” according to a Taxi Commission merger report. “Both Taxi Commission and Taxi Detail are understaffed and additional enforcement personnel are needed.”

MTA’s True said, “We expect some cost savings or at least increased efficiencies,” when asked how the merger will affect the MTA’s budget. “When it comes to changing Prop. K, raising fees, or adjusting how medallions are allocated,” True said, “I can’t say that it’s not on the table … In the last several months the focus has been on procedural issues. I think that policy questions will largely come post-merger.”

Politics behind the picture

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› news@sfbg.com

The new Harvey Milk movie, which opens later this month, begins as a love story, a sweet love story about two guys who meet in a subway station and wind up fleeing New York for San Francisco. But after that, the movie gets political — in fact, by Hollywood standards, it’s remarkably political.

The movie raises a lot of issues that are alive and part of San Francisco politics today. The history isn’t perfect (see sidebar), but it is compelling. And while we mourn Milk and watch Milk, we shouldn’t forget what the queer hero stood for.

Milk started out as something of a pot-smoking hippie. “The ’70s were a hotbed of everything,” Sup. Tom Ammiano remembered. “Feminism, civil rights, antiwar.” Milk’s early campaigns grew out of that foment. “Sure, he wanted to be elected,” Ammiano told us. “But the main ingredient was courage. He was fighting with the cops when they raided the bars … what he did was dangerous.”

Milk never would have been elected supervisor without district elections — and the story of district elections, and community power, ran parallel to Milk’s own story, for better and for worse.

Milk tried twice to win a seat on the at-large Board of Supervisors and never made the final cut. But in the mid-1970s, a coalition of community leaders, frustrated that big money controlled city policy, began organizing to change the way supervisors were elected. The shift from an at-large system to a district one in 1976 was a transformational moment for the city.

“I think that San Francisco doesn’t always appreciate the sea change that district elections brought,” Cleve Jones, a queer activist and friend of Milk who helped Dustin Black write the script for Milk, told us. “It wasn’t just important to the various communities that had been locked out of power at City Hall — it was the glue that began to grow the coalitions.”

Milk was elected as part of what became the most diverse board in the city’s history, with Asian, black, and gay representatives who came out of community organizations. The board, of course, also included Dan White, a conservative Irish Catholic and former cop. And it was the assassination of Milk and Mayor George Moscone by Sup. White — and the civic heartbreak, chaos, and confusion that followed — that allowed downtown forces to repeal district elections in 1980. That gave big money and big business control of the board for another 20 years, a reign that ended only when district elections returned in 2000.

Milk was a gay leader, but he was also a tenant activist, public power supporter, advocate for police reform, supporter of commuter taxes on downtown workers, and coalition-builder who helped bring together the labor movement and the queer community. It started, ironically, with the Teamsters.

“Those of us who came out of the antiwar movement remembered that the Teamsters supported Richard Nixon until the very last moment,” Jones said. “And they were seen as one of the most homophobic of all the unions.”

But in the 1970s, the Teamsters were at war with the Coors Brewing Company, and trying to get San Francisco bars to stop serving Coors beer. Allan Baird, a Teamsters leader who lived in the Castro District, saw an opportunity and contacted Milk, who agreed to help — if the Teamsters would start hiring gay truck drivers.

“It wasn’t just San Francisco and California,” Jones recalled. “We got Coors beer out of every gay bar in North America.” And gays started driving beer trucks.

Today, the queer-labor alliance is one of the most powerful, effective, and lasting political forces in San Francisco.

Milk was never popular among the wealthier and more established sectors of the gay community; he believed in a populist brand of politics that wasn’t afraid to take the fight to the streets — and beyond San Francisco. A central theme of the film is the fight against Proposition 6, a 1978 measure by conservative state Sen. John Briggs that would have barred homosexuals from teaching the public schools.

Milk, defying the mainstream political strategists, insisted on debating Briggs in some of the most right-wing parts of the state. He refused to downplay the gay-rights issues. And when Prop. 6 went down, it was the end of that particular homophobic crusade.

Milk was always an outsider, and he ran for office as a foe of the Democratic Party machine. “His campaign for state Assembly was all about Harvey vs. the machine,” former Sup. Harry Britt told us. “His main supporter was [Sup.] Quentin Kopp. He didn’t run as the liberal in the race; he ran against the machine.” And for much of the next 20 years, progressives in San Francisco found themselves fighting what became the Brown-Burton machine, controlled by Willie Brown and John Burton.

It’s too bad the movie wasn’t released early enough to have had an impact on Prop. 8, the anti same-sex marriage measure that just passed in California. Some critics of the No on 8 campaign say the message was far too soft, and that a little Harvey-Milk-style campaigning might have helped.

But for us, one of the most striking things about the movie is the fact that Milk and his lover, Scott Smith, were able to leave New York with very little money, arrive in San Francisco, rent an apartment on their unemployment checks, and open a camera store. That wouldn’t be possible today; the Harvey Milks of 2008 can’t live in the Castro — and many can’t live anywhere in San Francisco. The city is too expensive.

In fact, for all the victories Milk won, for all the successes of the movement he helped to build, much of his agenda is still unfulfilled, even in his hometown.

The first time Harvey Milk gives a public speech in the film, he’s standing on a soapbox … literally. He brings out a box with “soap” written on the side; a funny gag, but a serious and telling moment for him and San Francisco.

The issues that Milk spoke so passionately about in that speech included police reform, ending the war on drugs, protecting tenants and controlling rents, and improving parks and protecting people’s rights to use them liberally — all issues with as much resonance today as they had back then.

The movie leaves us with a painful question. For all the celebration of Milk’s legacy by San Franciscans of various political stripes, why have we made so little progress on some of his signature issues? We celebrate the martyr — but often forget what the man really advocated.

Support for gay rights is de rigueur for anyone who aspires to public office in San Francisco. But a quarter of city residents still voted to take away same-sex marriage rights in this election. Many older gay men today are barely able afford their AIDS medication and rent. And transgender people and other nontraditional types are still ostracized, unable to get good jobs, and sometimes treated contemptuously when they seek help from their government.

Sure, marijuana is supposedly legal for medical uses in California and pot clubs proliferate around San Francisco. But even these sick patients are still targeted by the federal government and its long arms in San Francisco, including former US Attorney Kevin Ryan, whom Mayor Gavin Newsom named his top crime advisor and who is now seeking to crackdown on the pot clubs. Why, 30 years after Milk was shot, does one have to claim an ailment or illness to smoke a joint in this town?

Two-thirds of city residents are renters, a group Milk championed with gusto, but we barely beat a state initiative in June that would have abolished rent control. Housing is getting steadily more expensive. And in this election, Newsom and his downtown allies opposed Proposition B, an affordable housing measure, and Proposition M, a common sense measure to prohibit landlords from harassing their tenants. Such harassment is a common tactic to force tenants from rent-controlled units, even though the City Attorney’s Office is currently suing the city’s biggest landlord, Skyline Realty, for its well-documented history of harassment. Newsom may be the champion of same-sex marriage, but when it comes to issues like tenants’ rights, we suspect that Milk would be appalled at Newsom’s gall.

Ted Gullicksen of the San Francisco Tenants Union noted that in the wake of Milk’s death and before the repeal of district elections, San Francisco established rent control and limits on condo conversions. The tenant movement has grown steadily stronger and more sophisticated, he said, as it had to in order to counter increasing economic and political pressures and creative gambits by landlords.

“The city has gentrified phenomenally since that time, and that’s put tremendous pressure on tenants and on condo conversions,” Gullicksen told us. “It continues to be a real struggle.”

Police reform was also a huge issue for Milk and his gay contemporaries, who suffered more than most groups from the behavior of thuggish cops protected by weak oversight rules and a powerful union. And today, the Police Officers Association is stronger and meaner than ever, but the oversight has improved little, as both the Guardian and San Francisco Chronicle have explored with investigations in recent years.

And in our public parks, San Francisco officials in recent years have banned smoking cigarettes, drinking alcohol, playing amplified music, and even gathering in large numbers without expensive, restrictive permits. Even in the Castro, where Milk and his allies took it as a basic right to gather in the streets, Newsom and the NIMBYs unilaterally cancelled Halloween celebrations and used police to chase away citizens with water trucks.

Is this really the city Harvey Milk was trying to create? In the film, he talks about transforming San Francisco into a vibrant, tolerant beacon that would set an example for the rest of the country, telling his compatriots, “We have got to give them hope.”

Well, with hope now making a comeback, perhaps San Francisco can finally follow Milk’s lead on the issues he cared about most.

>>Back to the Milk Issue