Prop. 13

Weird Uncle Jerry

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I’m starting to feel as if Jerry Brown is that strange old uncle who comes over for dinner and says things that make you cringe — and you can’t really tell if he’s just a loveable old character, a bright guy with a weird sense of humor, or someone who’s completely losing his marbles.


Check this out: First he makes a very valid, even insightful statement that’s right on target:


“Were I a CEO and someone said, ‘You know what, I’ve never been in this company, I never saw the product and I want to be a boss,’ I’d say, ‘Hey, why don’t you start at the bottom and work your way up,’ ” he said. “That’s the same way with government — you can’t wake up one morning and say, ‘Gee, I’ve got a billion dollars and I want to be governor.’ You got to learn something because those people up in Sacramento are sharks.”


Then he goes completely off the deep end:


Brown discussed his implementation of Prop. 13 despite his earlier opposition to it, as well as support for the 2nd Amendment and same-sex marriage. He said he opposed efforts to legalize marijuana, which will be on the November ballot.


“We got to compete with China, and if everybody’s stoned, how the hell are we going to make it?” he said.


Jerry, pal, I’ve got news for you: The people who are the most successfully competing with China, the brilliant high-tech visionaries you love so much? They’re already stoned. All we can do now is get some tax money out of it.


Besides, China can’t compete with this:


 


 

The Bay Citizen makes a strong debut

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The Bay Citizen, a well-funded newsroom that is the most anticipated of several new media experiments in San Francisco, officially launched today with some solid, interesting stories that include an investigation of toxic pesticides being illegally applied to local marijuana crops and a look at how Prop. 13 has obscenely benefited the wealthiest San Francisco residents.

The organization also announced today that it has raised an additional $3.5 million in donations to supplement the $5 million in seed money that local investment banker Warren Hellman provided to the start-up. Meanwhile, another new media start-up that we profiled this week, SF Streetsblog – one of The Bay Citizen’s many local partners — has issued a fundraising plea for $50,000 that it needs by July 1 to continue its award-winning coverage of local transportation issues.

But today is a day for The Bay Citizen to bask in its initial success, which it will do tonight starting at 7:30 with a launch party at the Great American Music Hall. And then tomorrow, once the hoopla is over and the stories that have been in development for weeks or months are replaced by fresh content, San Franciscans will begin to learn whether The Bay Citizen represents a new journalistic powerhouse or just a well-funded website with some powerful friends.

I’ve heard some detractors in the local media grumble that their presentation seems “banal” and unworthy of their big budget, but I don’t agree. Personally, I think The Bay Citizen strikes the right tone and balance, emphasizing solid journalism rather than flashy gimmicks, while also drawing on multimedia tools such as the video of yesterday’s protests against President Obama’s visit to SF.

San Francisco needs relevant, well-presented, serious journalism more than the snarky, juvenile stories we see in design-heavy local start-ups such as The Bold Italic, where The Bay Citizen’s culture writer came from, or the often out-of-touch, sneering, or self-important stories that we see in corporate-run papers like SF Weekly, San Francisco Chronicle, and San Francisco Examiner.

Instead, our first peek at The Bay Citizen seems to show that it might just be up to the important task of providing relevant content for the New York Times’ twice-weekly Bay Area section – which has also demonstrated a tin ear for San Francisco values since it launched last year – providing an important new forum for those who believe in speaking truth to power.

UC, CSU chiefs need to quit the Chamber of Commerce board

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The California Chamber of Commerce is one of the most consistently right-wing organizations in the state, particularly on economic issues. The Chamber’s against pretty much all taxes and supports pretty much all cuts in government spending.

So why are the heads of the three largest public educational institutions in California, the University of California, California State University, and the California Community Colleges, members of the Chamber board?

It’s a tradition at the Chamber to put the UC president and the CSU and CCC chancellors on the board, which has about 100 members. But the three educators came under fire recently when the Chamber put out a blatantly partisan ad attacking Jerry Brown

And in fact, UC President Mark Yudof told the Chamber’s fundraising chair last year that he couldn’t donate to the CalChamberPAC because that group was trying to make sure that Democrats don’t win enough seats in the Legislature to hold a two-thirds majority. “As president of a public institution that is both in practice and in policy nonpartisan, I must decline your request for a contribution,” Yudof wrote in an Oct. 9, 2009 letter, a copy of which I obtained under the state’s Public Records Act.

But Yudof also stated: “As a member of the Board of Directors, I appreciate the Chamber’s engagement in the political process and its advocacy for a strong and vibrant California economy.”

The truth is, the Chamber’s “engagement in the political process” is almost always adversarial to the interests of the state’s public education system. The fundraising letter Yudof was responding to specifically sought money to block Democrats from holding enough seats to raise taxes — and the refusal of the governor and his GOP colleagues to seek any new revenue sources has been the major reason the state’s budget is so horribly messed up. And that’s the main reason the University of California and CSU have faced such alarming budget cuts.

Why are the people in charge of promoting public higher education willingly putting their names, and their credibility, behind what’s really a Neanderthal institution? Because that’s what’s going on here — Yudof, CSU Chancellor Charles Reed and CCC Chancellor Jack Scott aren’t on the Chamber board to offer advice. They’re on the board to give the Chamber more credibility. They help make the organization seem more friendly, more concerned with the public interest.

They help make an organization devoted to reducing the role of the public sector in this state seem supportive of public education. They help propagate a political lie.

I asked Yudof, Reed and Scott why they’re still on the board, and got pretty weak responses. Here’s Yudof’s spokesperson, Peter King:

[President Yudof] considers the California business community to be one of several key constituency groups that are important to the University, which is why traditionally higher education leaders in California have held seats on the Chamber board. In general, President Yudof has found the Chamber to be highly supportive of higher education in California. He cannot recall in his tenure as President a single Chamber proposal to reduce funding for higher education.

Um, actually that’s not true at all. The Chamber just released its 2010 “job killer” list — a roster of bills that the organization will oppose on the grounds that they’re bad for business. Among them: Assemblymember Tom Ammiano’s bill to fix a loophole in Prop. 13 (and provide more money for public education), and a bill by Sen. Leland Yee that would allow the state to recapture tax-credit money if the company that got the credits (for increasing employment in the state, for example) winds up leaving California or shipping jobs elsewhere. That money would be available for higher education.

 Passage of those bills would allow the state to stop cutting UC and CSU. The Chamber wants to kill them.

King did say, however, that after the Brown ad aired, he “has informed the Chamber that he will continue to serve on the board only if his status is changed to that of an ex officio member.” But that doesn’t mean anything; it’s his name on the letterhead that matters.

Reed’s press person, Erik Fallis, was even more vague. He would only refer me to a statement Reed and Yudof issued after the Brown ad controversy, which said, in part:

We value our inclusion on the Chamber board, which provides an opportunity to interact with business leaders on issues that are of vital importance to the future of California. This is a dialogue that has been of great benefit to higher education, the business community and the state as a whole.

Actually, the inclusion of top state education officials  is detrimental to the public interest, detrimental to public education and really bad form. Particularly now, when the Chamber is going out of its way to make sure that the state budget crisis is solved with nothing but cuts.

Scott has been openly complaining about budget cuts (PDF) but his office hasn’t responded to my questions.

Yee, a frequent critic of UC management, responded, though, and he didn’t mince words:

It would be one thing if President Yudof and Chancellor Reed used their positions on the California Chamber of Commerce board to support more revenue for our beleaguered public universities.  Unfortunately, the CalChamber is categorical in its opposition to new revenues and has become nothing short of a mouthpiece for the Republican Party.  The Chamber benefits from the prestige that Yudof and Reed bring to the table, and uses it to advance a right-wing agenda that includes questioning the validity of global warming (AB 32, 2006) and the need to protect workers from discrimination (AB 793, Jones, 2009), blocking universal health care (SB 810, Leno, 2010), and holding corporations accountable to their promises to create jobs (SB 1391, Yee, 2010).  It is outrageous that Yudof and Reed would serve as accomplices to killing bills that would increase revenue for higher education.

The top education executives need to resign from the Chamber board, now.

Ammiano property tax bill passes key committee

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A bill by Assemblymember Tom Ammiano that would have a huge impact on the state’s budget and close a serious loophole in Prop. 13 cleared the Revenue and Taxation Committee today. AB 2492 won approval on a strict party-line 6-3 vote, with every Democrat in favor and every Republican opposed.


The measure is brilliant: It doesn’t undo Prop. 13 (which a lot of us would love to see, but is politically almost impossible). Instead, it simply defines property transfer in a way that forces commercial property owners to play by the same rules as everyone else.


It would bring in billions for the state — and has a great political twist. Homeowners, for better or for worse, are a powerful voting bloc — and although there hasn’t been much talk about it, over the years, residential property has had to shoulder more and more of the total tax burden. So if Ammiano can keep this debate alive, those more conservative homeowners who would never accept a change in Prop. 13 that might undermine their precious tax break might slowly come to realize that the law, as it’s written, is screwing them. (It’s particularly screwing people who brought property at the height of the boom, and are paying taxes far higher than their neighbors who bought a few years earlier.)


Ammiano told me he was encourged by the vote. The bill now goes to Appropriations, which shouldn’t be a problem since it won’t cost the state anything. And in a few weeks, it will be on the Assembly floor.


I don’t expect this governor to sign it, but if he vetos, it could be a great campaign issue — the Republicans are on the side of big landlords — and against homeowners.


By the way, our old pal Matt Smith at SF Weekly decided to take a swipe at me and the Guardian for our support for AB 2492, arguing that somehow it would benefit those of us who own homes. It’s a refrain I’ve heard from Smith before, and in the caption on his blog picture he talks about “getting in the game early and pulling up the ladder behind you.” I guess that’s about my opposition to more condos for millionaires, which has nothing to do with anything and no basis in reality. Building market-rate housing isn’t going to do anything to help middle-class people (and I assume Matt Smith falls in that category) buy homes in San Francisco.


The point of his blog is that we’re somehow pushing to protect our privileged position under Prop. 13. But anyone who knows me (and reads the Guardian) knows that’s nuts: I have long advocated the complete repeal of Prop. 13, and I’m one of the few people in town who wants higher taxes on myself. Besides, the Guardian’s owners, Bruce Brugmann and Jean Dibble, also own the commerical office building where we do business. So anything that could raise taxes on commerical landlords would directly affect the paper –and we still support it.


I called Smith today to give him a hard time about his item; you can accuse me of a lot of things, and attack my political positions (that’s easy; there are a lot of them, and some are pretty far out there). But don’t say I want to preserve my own (relatively) low property taxes, because that’s demonstrably wrong.


I’ll give Smith credit — he listened to me and reported my comments. But we could have avoided all of this if he’d just called me first.

More fun with political ads

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You don’t have to look far to find creative parodies of the famous Carly Fiorina demon sheep ad. But now the Democratic Party — finally stepping up — has released it’s own weirdo ad, called Demon Sheep II. It attacks both Fiorina and Tom Campbell, and has a toss-off at the end about Chuck DeVore, but it’s clearly aimed first and foremost at Carly — which suggests, no surprise, that the Dems (that is, the Democratic Senatorial Campaign Committee) is getting out of the box, now, with attacks on Barbara Boxer’s likely November foe. Carla Marinucci calls the ad “hysterical,” and while I wasn’t laughing that hard, you have to admit: The goofiness level of big-time California campaign ads is on the rise.


The ad hints at what Boxer’s camp is going to focus on this fall — and it’s similar to what Jerry Brown needs to do to defeat Meg Whitman. The ad is all about Carly Fiorini, rich business excutive who owns two yachts, flew around in corporate jets and moved 28,000 jobs offshore — then got fired. That works pretty well for Boxer, who can contrast her progressive stands on economic issues to the GOP’s pro-rich agenda. Now Brown needs to start taking a more populist stand (on Prop. 13 reform, for example) if he wants to make his attacks on Whitman stick.


Check out Demon Sheep II:


 


 

SFBG radio: Tom Ammiano on Prop. 13 reform

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Today on SFBG Radio: Johnny Angel Wendell talks to Assemblymember Tom Ammiano about his plans to reform Prop. 13 and add a little fairness to a law that is giving big commercial property owners a huge windfall at the expense of homeowners — and state services. Listen after the jump


sfbgradioammiano by SFBG

A bit of fairness for Prop. 13

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EDITORIAL Behind the crisis in the San Francisco schools, behind the city’s fiscal nightmare, behind the state’s intractable budget deficit is one gigantic policy mistake that dates back to 1978. It’s almost impossible to talk, even today, about repealing Proposition 13, the measure that limits property taxes. Millions of homeowners love their low taxes, and even the liberals among them are dubious about giving up their cherished perk.

But it’s entirely possible — and absolutely necessary — to look at amending the measure to end the most blatant inequalities and make the state’s property tax system a little more fair. AB 2492, a bill by Assembly Member Tom Ammiano, would do just that — and it deserves the support of every elected official, every community leader, and every voter who wants to save the state’s basic services and prevent the once-vaunted California education system from falling into irreparable collapse.

Ammiano’s bill starts with the basic premise that commercial and residential property should be taxed differently. There’s a good reason for that: Prop. 13 allows tax reassessments only when property changes hands, and residential property turns over far more often than commercial property. So over the past 32 years, homeowners have been taking on more and more of the property-tax burden.

Then there’s the popular scam big companies use to avoid higher assessments. The legal details are complicated, but the basic deal goes like this. A real estate investor or investment group sets up a corporation called, say, Big Building Inc. and buys a commercial office building. A few years later, when the property has doubled in value, the investors sell to a new group — by transferring 51 percent of the stock in Big Building Inc. There’s a new owner of the property, of course — but on the assessment roles, it still reads "Big Building Inc." — and the owners say that means no ownership transfer and no new assessment.

San Francisco Assessor-Recorder Phil Ting has been complaining about this for years, and a few of these investors have been busted and forced to pay the proper taxes. But it’s hard to keep track of every deal — and expensive to fight the legal battles every time some corporation sets up a convoluted structure to hide an ownership transfer.

Ammiano’s bill would put an end to that. AB 2492 would make state law clear: Any time 50 percent or more of the ownership interest in a company changed hands, all of the real property that company owned would be deemed to have changed hands and could be reassessed.

In fact, the bill would create a rebuttable presumption that all property owned by any publicly-traded corporation would be assumed to have changed hands every Jan. 1. If the company wanted to prove that its stock holdings were substantially unchanged in the past 12 months, it could make that case; otherwise, the buildings get reassessed.

The impact on the state’s finances would be massive, in the multiples of billions of dollars. Local governments would see their budget problems diminish; schools would get more money. And the property tax burden would start to shift back off of homeowners, who now pay far more than their fair share.

Ammiano told us that Speaker of the Assembly John Perez is supportive. Even so, passing even such an obvious, fair amendment to Prop. 13 will be a massive struggle. Mayor Gavin Newsom needs to make a strong public statement of support; so do the mayors of every other Bay Area city. School boards, city councils, county supervisors — this is going to be a battle royal, and they all need to be on board. With this reform, an oil severance tax and reinstating the vehicle license fee, California’s budget problems could be nearly solved. What are we waiting for?

A bit of fairness for Prop. 13

1

EDITORIAL Behind the crisis in the San Francisco schools, behind the city’s fiscal nightmare, behind the state’s intractable budget deficit is one gigantic policy mistake that dates back to 1978. It’s almost impossible to talk, even today, about repealing Proposition 13, the measure that limits property taxes. Millions of homeowners love their low taxes, and even the liberals among them are dubious about giving up their cherished perk.

But it’s entirely possible — and absolutely necessary — to look at amending the measure to end the most blatant inequalities and make the state’s property tax system a little more fair. AB 2492, a bill by Assembly Member Tom Ammiano, would do just that — and it deserves the support of every elected official, every community leader, and every voter who wants to save the state’s basic services and prevent the once-vaunted California education system from falling into irreparable collapse.

Ammiano’s bill starts with the basic premise that commercial and residential property should be taxed differently. There’s a good reason for that: Prop. 13 allows tax reassessments only when property changes hands, and residential property turns over far more often than commercial property. So over the past 32 years, homeowners have been taking on more and more of the property-tax burden.

Then there’s the popular scam big companies use to avoid higher assessments. The legal details are complicated, but the basic deal goes like this. A real estate investor or investment group sets up a corporation called, say, Big Building Inc. and buys a commercial office building. A few years later, when the property has doubled in value, the investors sell to a new group — by transferring 51 percent of the stock in Big Building Inc. There’s a new owner of the property, of course — but on the assessment roles, it still reads "Big Building Inc." — and the owners say that means no ownership transfer and no new assessment.

San Francisco Assessor-Recorder Phil Ting has been complaining about this for years, and a few of these investors have been busted and forced to pay the proper taxes. But it’s hard to keep track of every deal — and expensive to fight the legal battles every time some corporation sets up a convoluted structure to hide an ownership transfer.

Ammiano’s bill would put an end to that. AB 2492 would make state law clear: Any time 50 percent or more of the ownership interest in a company changed hands, all of the real property that company owned would be deemed to have changed hands and could be reassessed.

In fact, the bill would create a rebuttable presumption that all property owned by any publicly-traded corporation would be assumed to have changed hands every Jan. 1. If the company wanted to prove that its stock holdings were substantially unchanged in the past 12 months, it could make that case; otherwise, the buildings get reassessed.

The impact on the state’s finances would be massive, in the multiples of billions of dollars. Local governments would see their budget problems diminish; schools would get more money. And the property tax burden would start to shift back off of homeowners, who now pay far more than their fair share.

Ammiano told us that Speaker of the Assembly John Perez is supportive. Even so, passing even such an obvious, fair amendment to Prop. 13 will be a massive struggle. Mayor Gavin Newsom needs to make a strong public statement of support; so do the mayors of every other Bay Area city. School boards, city councils, county supervisors — this is going to be a battle royal, and they all need to be on board. With this reform, an oil severance tax and reinstating the vehicle license fee, California’s budget problems could be nearly solved. What are we waiting for?

Whitman and Goldman should be rich fodder for Democrats

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Democrats are now benefiting from the confluence of the public’s outrage over reckless self-dealing on Wall Street, debate over a Democratic bill to regulate such casino-style financial practices, and prosecution of Goldman Sachs for profiting from an economic collapse it helped cause. But the bigger question is whether top Democrats are willing to make the sustained case that it’s the rich who have screwed over the vast majority of Americans, and it’s time to recover that plundered wealth to deal with pressing problems like poverty, global warming, and infrastructure needs.

Central to that question is Meg Whitman, the Republican gubernatorial candidate who should be a poster child for a campaign against the predatory rich, whose increasing wealth has come at the expense of the working class and public institutions. As the Sacramento Bee reports today, Whitman is a former Goldman Sachs board member who profited from insider trading deals that are now illegal. And now she’s using her ridiculously over-inflated net worth to try to buy the governor’s office with unprecedented spending, something that should profoundly offend our basic democratic values.

Presumptive Democratic gubernatorial nominee Jerry Brown and some union officials have tried to highlight Whitman’s extensive Wall Street connections, but Brown has been way too tepid. Maybe that’s because he has his own Goldman Sachs ties, as the Los Angeles Times reported this week, although they pale in comparison to Whitman’s, which continue to this day and help pay for her takeover of California airways with her deceptive yet poll-tested propaganda.

As we wrote in our endorsement of Brown this week, it’s frustrating that Brown has been so unwilling to go after the rich, whether it be raising income taxes on millionaires (who have weathered the Great Recession far better than working stiffs) or letting commercial property be assessed at fair market value (since Prop. 13 passed, corporations that used to pay about two-thirds of the property taxes in California now pay about one-third, with individual property owners now paying two-thirds).

This is fertile ground for some long-overdue class warfare on behalf of the vast majority of people whose livelihoods have been threatened by the greedy, self-dealing rich. Anger at Wall Street for destroying the economy and then being bailed out by the federal government cuts across traditional ideological lines. It is felt by progressives, by conservative members of the Tea Party movement, and even by many political moderates.

At this point, few people trust the Democratic Party to lead the way toward a real accounting for the financial collapse, a recovery of the money from those who profited from the disaster, and an application of that money toward the most pressing public problems.

That’s a shame, but it’s also a real opportunity for a Democrat-led populist movement that unites disaffected factions on the left and right. After all, the problem only lies with about the richest 5 percent of Americans, those who have used elaborate financial ruses and tax shelters to hoard the wealth this country needs, even as the rest of us have lost financial ground. If there is any real democracy left in this country, it shouldn’t be that difficult for 95 percent of Americans to act in their own best interests.

After all, just this afternoon, even the most stubborn Republican leaders relented on allowing debate on the Democrats’ financial regulatory legislation, bowing to the very political pressures that I’m talking about. But if the Democrats want to try to regain their status as the party of the people, and begin to finally deal with this country’s long-neglected needs, they’ll need to see this as just the first small step down a path they should have taken decades ago.

ENDORSEMENTS: State ballot measures

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PROPOSITION 13

LIMITS ON PROPERTY TAX ASSESSMENT FOR SEISMIC RETROFITS

YES

The primary sponsor of Prop. 13 is Republican Sen. Roy Ashburn, who dominated the news for several days after he was arrested for drunk driving on his way home from a Sacramento gay bar. Needless to say, Ashburn’s dramatic coming out has whipped up far more attention than his noncontroversial ballot initiative.

We’re generally opposed to anything that gives tax cuts or tax deferrals to property owners; thanks to a 1978 measure also called Prop. 13, much of the commercial and residential property in California is badly under assessed. And Prop. 13, 2010 style, is indeed a tax break. But it’s probably justified.

Buildings in this state are typically reassessed for property taxes after they’ve been modified with new construction, except in cases where the modifications are made to comply with earthquake-safety standards. While most buildings that undergo seismic retrofitting are exempt from reassessment until the property is transferred to a new owner, the exemption for unreinforced masonry buildings is limited to 15 years. Prop 13 would remove that 15-year cap.

The fiscal impact on cities is likely to be pretty minor, and the measure might encourage both commercial and residential landlords to bring their buildings up to standard. Vote yes.

 

PROPOSITION 14

OPEN PRIMARIES

NO

At the height of a royal mess last year when the state budget was long overdue and the two-thirds majority needed to pass it was still out of reach by one vote, Republican Sen. Abel Maldonado struck a deal with Democrats. He said he’d support the budget — if the majority party would meet a few of his demands. One thing he insisted on was Prop. 14 — a ballot measure that would effectively remove political parties from the primary elections process, allowing all voters to cast ballots for any candidate regardless of party affiliation.

Under Maldonado’s plan, all candidates would run on a single primary ballot, and the top two vote-getters would face off in the general election. Heavily funded by the California Chamber of Commerce and marketed by the same spin doctors and corporate lawyers who are rolling in Yes on 16 campaign money, Prop. 14’s backers say it will result in more centrist elected officials.

There are plenty of pitfalls here, the most worrisome being that it would drive up the cost of elections and give more moneyed (and corporate-allied) candidates a sharper competitive edge while elbowing out progressives. It would allow Republicans to play a role in what would normally be Democratic primaries (and vice versa.) The measure would also make it nearly impossible for smaller parties — the Green Party, for example — to offer candidates in the November elections.

Bad idea, bad process, Vote no.

 

PROPOSITION 15

FAIR ELECTIONS ACT

YES

California desperately needs electoral reform. Corporate campaign spending and lobbyists have poisoned the decision-making process and muzzled the voice of the people. Something radical needs to be done — and while this measure is only a small, measured step in the right direction, it’s an important and promising experiment.

Prop. 15 would create a pilot public financing program for the 2014 and 2018 races for California Secretary of State — and the program would be funded by a tax on lobbyists. Right now lobbyists pay only $12.50 per year to register with the state. This measure would increase that fee to $350 annually and use the money to create a fund of about $6 million that candidates for the crucial office overseeing elections in the state could tap after demonstrating their popular support by gathering a number of small contributions. All candidates who qualify would be given the same amount of money and left to compete on the issues. Ideally this public financing program would prove successful and eventually be expanded to other offices. Public financing of election campaigns, which is currently working well in Arizona and Maine, is certainly worth a try in California. Vote yes.

 

PROPOSITION 16

MONOPOLY PROTECTION FOR PG&E

NO! NO! NO!

The deceptively titled “Taxpayer’s Right to Vote Act” was dreamed up and funded entirely by Pacific Gas and Electric Co., the monopolistic utility that is worried it could face actual competition here in San Francisco (and elsewhere) from municipal electricity programs that would offer customers a greener energy mix and more accountability than PG&E executives will ever demonstrate.

Rather than accept some healthy competition, this sleazy corporation has opted to spend some $35 million to exterminate all possibilities of municipal electricity programs cropping up anywhere in the state in a bid to preserve its octopus-like grip on the energy market in Northern California. Prop. 16 would require a two-thirds majority vote at the ballot before any community choice aggregation (CCA) program — or any attempt at creating or expanding a public-power system — could move forward. That’s an extreme hurdle — -and PG&E knows it.

In effect, PG&E is trying to buy public policy here, trying to pass a law that will protect its own monopoly interests.

In San Francisco, the CCA being proposed would offer customers 51 percent renewable power by 2017, which means it would blow PG&E out of the water in the green arena and mark S.F. as taking greater strides toward combating climate change than any other major U.S. city. This example could set a precedent for others, which, in turn, could create favorable market conditions for green energy startups that want to harness wind, solar, biomass, geothermal, tidal, and energy efficiency alternatives.

The very existence of Prop. 16 is already threatening the San Francisco CCA; the city’s Public Utilities Commission is trying to delay a final contract until after the June 8 vote on the measure (see editorial, page 5)

Vote no on Prop 16. Not just because it’s an example of a big business single-handedly trying to alter the state constitution for its own economic benefit by pouring millions of dollars into a deceptive advertising campaign. Not just because a two-thirds majority vote requirement is anti-democratic. Not just because there were reports that the signature gatherers who got people to sign on in support of placing Prop. 16 on the ballot were telling people that its purpose was to limit PG&E expansion or encourage solar power. Not just because Senate Pro Tem Darrell Steinberg and a half dozen members of the Legislature sent a letter rebuking PG&E CEO Peter Darbee for disrespecting the democratic process by going straight to the ballot to undermine legislation it initially supported that enabled the creation of CCA programs. Not just because PG&E is using $35 million of ratepayer dollars (that’s the check you wrote them for your electricity bill!) to put out slick TV ads for this campaign when it should have been repairing the pipelines under those manholes that keep exploding and messing up your morning commute. Not even just because with CCA, you already have the right to vote whether or not you want to be part of it, a choice PG&E will never give you. And not just because PG&E keeps trying to raise rates, which is much more difficult for municipal energy agencies to do.

If for no other reason, vote no because Prop. 16 flies in the face of everything environmentalists stand for. It’s a measure that will thwart progress on fighting climate change, brought to you by the company that practically invented green-washing. PG&E is a huge nuclear power player; it purchases coal from mountaintop-removal coal mines in West Virginia that are completely devastating biodiverse landscapes in Southern Appalachia and screwing over poor people by tainting their drinking water; and it’s in the process of building fossil fuel-fired power plants in poor communities of color in California. The CCA programs at least represent a glimmer of hope for an alternative model; Prop. 16 kills off that possibility with one fell swoop motivated by pure greed. For the love of justice, democracy, and the planet, vote no on Prop 16.

 

PROPOSITION 17

CAR INSURANCE SCHEME

NO, NO, NO!

Mercury Insurance sponsored this measure and is campaigning for it with tens of millions of dollars, betting it can fool voters and make hundreds of millions of dollars in profits by doing so. And if the company is right, insurance rates will skyrocket for new drivers and those who haven’t had continuous insurance coverage, which experts say will increase the number of uninsured drivers on the roadways and end up increasing insurance rates for everyone.

Mercury and its founder George Joseph have been truly malevolent players in California, exploiting their customers to make billions of dollars in profits, attacking California’s landmark insurance reform measure Prop. 103 with lawsuits and corrupting campaign contributions over more than 20 years, and flouting insurance regulators in such brazen fashion that even Insurance Commissioner Steve Poizner, a conservative Republican, recently chastised the company for its “lengthy history of serious misconduct” (see “Buying power,” March 17).

Now, however, the company is hoping its promise to cut the insurance premiums of drivers who have maintained continuous coverage by “as much as $250 per year” will buy their votes and that they’ll overlook the myriad negative impacts of increasing everyone else’s premiums by $1,000 per year or more, based on Mercury’s own estimates.

Think about that. If you’re a driver who missed an insurance payment by even one day, or a soldier returning from boot camp, or someone with a low-income getting insurance for the first time or after ditching your car for a while, what are you going to do when you discover already-expensive car insurance comes with a $1,000 annual surcharge?

Many Californians, those who share our roads, will choose to drive without insurance. Then they’ll be more likely to leave the scene of accidents or declare bankruptcy rather than paying out-of-pocket for their accidents, both of which increase the cost of insurance for everyone else.

That’s how insurance works. If someone pays less, someone else pays more; and the only entity guaranteed to really make money over the long term is the insurance company. Don’t fall for this scam. Vote no on 17.

ENDORSEMENTS: National and state races

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Editor’s note: the file below contains a correction, updated May 5 2010. 


National races


U.S. SENATE, DEMOCRAT


BARBARA BOXER


The Republican Party is targeting this race as one of its top national priorities, and if the GOP can dislodge a three-term senator from California, it will be a major blow for the party (and agenda) of President Obama. The pundits are happily talking about how much danger Barbara Boxer faces, how the country’s mood is swinging against big-government liberals.


But it’s always a mistake to count out Boxer. In 1982, as a Marin County supervisor with little name recognition in San Francisco, she trounced then-SF Sup. Louise Renne for an open Congressional seat. Ten years later, she beat the odds and won a hotly contested primary and tough general election to move into the Senate. She’s a fierce campaigner, and with no primary opposition, will have a united party behind her.


Boxer is one of the most progressive members of the not-terribly progressive U.S. Senate. She’s been one of the strongest, most consistent supporters of reproductive rights in Washington and a friend of labor (with 100 percent ratings from the AFL-CIO and National Education Association). We’ve had our disagreements: Boxer supported No Child Left Behind, wrote the law allowing airline pilots to carry guns in the cockpit, and was weak on same-sex marriage when San Francisco sought to legalize it (although she’s come around). But she was an early and stalwart foe of the war in Iraq, split with her own party to oppose a crackdown on illegal immigration, and is leading the way on accountability for Wall Street. She richly deserves reelection, and we’re happy to endorse her.


 


CONGRESS, 6TH DISTRICT, DEMOCRAT


LYNN WOOLSEY


It’s odd that the representative from Marin and Sonoma counties is more progressive by far than her colleague to the south, San Francisco’s Nancy Pelosi. But over the years, Lynn Woolsey has been one of the strongest opponents of the war, a voice against bailouts for the big Wall Street banks, and a foe of cuts in the social safety net. We’re proud to endorse her for another term.


 


CONGRESS, 7TH DISTRICT, DEMOCRAT


GEORGE MILLER


George Miller has been representing this East Bay district since 1974, and is now the chair of the Education and Labor Committee and a powerhouse in Congress. He’s too prone to compromise (with George W. Bush on education policy) but is taking the right line on California water (while Sen. Dianne Feinstein is on the wrong side). We’ll endorse him for another term.


 


CONGRESS, 8TH DISTRICT, DEMOCRAT


NANCY PELOSI


We’ve never been terribly pleased with San Francisco’s most prominent Congressional representative. Nancy Pelosi was the author of the bill that created the first privatized national park at the Presidio, setting a horrible standard that parks ought to be about making money. She was weak on opposing the war, ducked same-sex marriage, and has used her clout locally for all the wrong candidates and issues. But we have to give her credit for resurrecting and pushing through the health care bill (bad as it was — and it’s pretty bad — it’s better than doing nothing). And, at a time when the Republicans are trying to derail the Obama presidency, she’s become a pretty effective partner for the president.


Her fate as speaker (and her future in this seat) probably depends on how the Democrats fare in the midterm Congressional elections this fall. But if she and the party survive in decent shape, she needs to take the opportunity to undo the damage she did at the Presidio.


 


CONGRESS, 9TH DISTRICT, DEMOCRAT


BARBARA LEE


Barbara Lee, who represents Berkeley and Oakland, is co-chair of the Progressive Caucus in the House, one of the most consistent liberal votes in Congress, and a hero to the antiwar movement. In 2001, she was the only member of either house to oppose the Bush administration’s Use of Force resolution following the 9/11 attacks, and she’s never let up on her opposition to foolish military entanglements. We’re glad she’s doing what Nancy Pelosi won’t — represent the progressive politics of her district in Washington.


 


CONGRESS, 13TH DISTRICT, DEMOCRAT


PETE STARK


Most politicians mellow and get more moderate as they age; Stark is the opposite. He announced a couple of years ago that he’s an atheist (the only one in Congress), opposed the Iraq war early, called one of his colleagues a whore for the insurance industry, and insulted President Bush and refused to apologize, saying: “I may have dishonored the commander-in-chief, but I think he’s done pretty well to dishonor himself without any help from me.” He served as chair of the House Ways and Means Committee for exactly one day — March 3 — before the Democratic membership overruled Speaker Pelosi and chucked him out on the grounds that he was too inflammatory. The 78-year-old may not be in office much longer, but he’s good on all the major issues. He’s also fearless. If he wants another term, he deserves one.


 


State races


GOVERNOR, DEMOCRAT


EDMUND G. BROWN


Jerry Brown? Which Jerry Brown? The small-is-beautiful environmentalist from the 1970s who opposed Pacific Gas and Electric Co.’s Diablo Canyon nuke and created the California Conservation Corps, the Office of Appropriate Technology, and the Farm Labor Relations Board (all while running a huge budget surplus in Sacramento)? The angry populist who lashed out at corporate power on a KPFA radio talk show and ran against Bill Clinton for president? The pro-development mayor of Oakland who sided with the cops on crime issues and opened a military academy? Or the tough-on-crime attorney general who refuses to even talk about tax increases to solve the state’s gargantuan budget problems?


We don’t know. That’s the problem with Brown — you never know what he’ll do or say next. For now, he’s been a terribly disappointing candidate, running to the right, rambling on about preserving Proposition 13, making awful statements about immigration and sanctuary laws, and even sounding soft on environmental issues. He’s started to hit his stride lately, though, attacking likely GOP contender Meg Whitman over her ties to Wall Street and we’re seeing a few flashes of the populist Brown. But he’s got to step it up if he wants to win — and he’s got to get serious about taxes and show some budget leadership, if he wants to make a difference as governor.


 


LIEUTENANT GOVERNOR, DEMOCRAT


JANICE HAHN


Not an easy choice, by any means.


Mayor Gavin Newsom jumped into this race only after it became clear that he wouldn’t get elected governor. He sees it as a temporary perch, someplace to park his political ambitions until a better office opens up. He’s got the money, the statewide name recognition, and the endorsement of some of the state’s major power players, including both U.S. Senators and House Speaker Nancy Pelosi. He’s also been a terrible mayor of San Francisco — and some progressives (like Sup. Chris Daly) argue, persuasively, that the best way to get a better person in Room 200 is to ship Newsom off to an office in Sacramento where he can’t do much harm and let the supervisors pick the next mayor.


But it’s hard to endorse Newsom for any higher office. He’s ducked on public power, allowing PG&E to come very close to blocking the city’s community choice aggregation program (See editorial, page 5). His policies have promoted deporting kids and breaking up families. He’s taken an approach to the city budget — no new revenue, just cuts — that’s similar to what the Republican governor has done. He didn’t even bother to come down and talk to us about this race. There’s really no good argument for supporting the advancement of his political career.


Then there’s Janice Hahn. She’s a Los Angeles City Council member, the daughter of a former county supervisor, and the sister of a former mayor. She got in this race way before Newsom, and her nightmare campaign consultant, Garry South, acts as if she has some divine right to be the only Democrat running.


Hahn in not overly impressive as a candidate. When we met her, she seemed confused about some issues and scrambled to duck others. She told us she’s not sure she’s in favor of legalizing pot, but she isn’t sure why she’s not sure since she has no arguments against it. She won’t take a position on a new peripheral canal, although she can’t defend building one and says that protecting San Francisco Bay has to be a priority. She won’t rule out offshore oil drilling, although she said she has yet to see a proposal she can support. Her main economic development proposal was to bring more film industry work to California, even if that means cutting taxes for the studios or locating the shoots on Indian land where there are fewer regulations.


On the other hand, she told us she wants to get rid of the two-thirds threshold in the state Legislature for passing a budget or raising taxes. She supports reinstating the car tax at pre-Gov. Arnold Schwarzenegger levels. She supports a split-roll measure to reform Prop. 13. She wants to see an oil-severance tax to fund education. She’s one of the few statewide candidates who openly advocates higher taxes on the wealthy as part of the solution to the budget crisis.


We are under no illusions that Hahn will be able to use the weak office of lieutenant governor to move on any of these issues, and we’re not at all sure she’s ready to take over the top spot. But on the issues, she’s clearly better than Newsom, so she gets our endorsements.


 


SECRETARY OF STATE, DEMOCRAT


DEBRA BOWEN


Debra Bowen is the only Democrat running, a sign that pretty much everyone in the party thinks she’s doing a fine job as Secretary of State. She’s run a clean office and we see no reason to replace her.


 


CONTROLLER, DEMOCRAT


JOHN CHIANG


Like Bowen, John Chiang has no opposition in the primary, and he’s been a perfectly adequate controller. In fact, when Gov. Schwarzenegger tried two years ago to cut the pay of thousands of state employees to the minimum wage level, Chiang defied him and refused to change the paychecks — a move that forced the governor to back down. We just wish he’d play a more visible role in talking about the need for more tax revenue to balance the state’s books.


 


TREASURER, DEMOCRAT


BILL LOCKYER


Bill Lockyer keeps bouncing around Sacramento, waiting, perhaps, for his chance to be governor. He was attorney general. Now he’s treasurer seeking a second term, which he will almost certainly win. He’s done some good things, including trying to use state bonds to promote alternative energy, and has spoken out forcefully about the governor’s efforts to defer deficit problems through dubious borrowing. He hasn’t, however, come out in favor of higher taxes for the rich or a change in Prop. 13.


 


ATTORNEY GENERAL, DEMOCRAT


KAMALA HARRIS


There are really only two serious candidates in this race, Kamala Harris, the San Francisco district attorney, and Rocky Delgadillo, the former Los Angeles city attorney. Harris has a comfortable lead, with Delgadillo in second and the others far behind.


Delgadillo is on his second try for this office. He ran against Jerry Brown four years ago and got nowhere. And in the meantime, he’s come under fire for, among other things, using city employees to run personal errands for him (picking up his dry-cleaning, babysitting his kids) and driving his car without insurance. On a more significant level, he made his reputation with gang injunctions that smacked of ethnic profiling and infuriated Latino and civil liberties groups. It’s amazing he’s still a factor in this race; he can’t possibly win the general election with all his baggage.


Harris has a lot going for her. She was among the first California elected officials to endorse Barack Obama for president, and remains close to the administration. She’s a smart, articulate prosecutor and could be one of the few women atop the Democratic ticket this year. We were never comfortable with her ties to Willie Brown, but he’s no longer a factor in state or local politics. These days, she’s more closely allied with the likes of State Sen. Mark Leno.


That said, we have some serious problems with Harris. She’s been up in Sacramento pushing Republican-style tough-on-crime bills (like a measure that would bar registered sex offenders from ever using social networking sites on the Internet) and forcing sane Democrats like Assembly Member and Public Safety Committee Chair Tom Ammiano to try to tone down or kill them (and then take the political heat). If she didn’t know about the problems in the SFPD crime lab, she should have, and should have made a bigger fuss, earlier.


But Harris has kept her principled position against the death penalty, even when it meant taking immense flak from the cops for refusing to seek capital punishment for the killer of a San Francisco police officer. She’s clearly the best choice for the Democrats.


 


INSURANCE COMMISSIONER, DEMOCRAT


DAVE JONES


Two credible progressives are vying to run for this powerful and important position regulating the massive — and massively corrupt — California insurance industry. Dave Jones and Hector De La Torre are both in the state Assembly, with Jones representing Sacramento and De La Torre hailing from Los Angeles. Both have a record opposing insurance industry initiatives; both are outspoken foes of Prop. 17; and either would do a fine job as insurance commissioner. But Jones has more experience on consumer issues and health care reform, and we prefer his background as a Legal Aid lawyer to De La Torre’s history as a Southern California Edison executive. So we’ll give Jones the nod.


 


BOARD OF EQUALIZATION, DISTRICT 1, DEMOCRAT


BETTY T. YEE


Betty Yee has taken over a job that’s been a stronghold of progressive tax policy since the days of the late Bill Bennett. She’s done well in the position, supporting progressive financial measures and even coming down, as a top tax official, in favor of legalizing (and taxing) marijuana. We’re happy to endorse her for another term.


 


SUPERINTENDENT OF PUBLIC INSTRUCTION


TOM TORLAKSON


Two prominent Democratic legislators are running for this nonpartisan post, state Sen. Gloria Romero of Los Angeles and Assembly Member Tom Torlakson of Martinez. It’s a pretty clear choice: Romero is a big supporter of charter schools who thinks parents should be able to move their kids out of one school district and into another (allowing wealthier white parents, for example, to abandon Los Angeles or San Francisco for the suburban districts). She’s been supported in the past by Don and Doris Fisher, who put a chunk of their GAP Inc. fortune into school privatization efforts. Torlakson wants more accountability for charters, opposes the Romero district-option bill, and has the support of every major teachers union in the state. Vote for Torlakson.


 


STATE SENATE, DISTRICT 8, DEMOCRAT


LELAND YEE


Sen. Leland Yee can be infuriating. Two years ago, he was hell-bent on selling the Cow Palace as surplus state property and allowing private developers to take it over. In the recent budget crisis, he pissed off his Democratic colleagues by refusing to vote for cuts that everyone else knew were inevitable (while never making a strong stand in favor of, say, repealing Prop. 13 or raising other taxes). But he’s always been good on open-government issues and has made headlines lately for busting California State University, Stanislaus over a secret contract to bring Sarah Palin in for a fundraiser — and has raised the larger point that public universities shouldn’t hide their finances behind private foundations.


Yee will have no serious opposition for reelection, and his campaign for a second term in Sacramento is really the start of the Leland Yee for Mayor effort. With reservations over the Cow Palace deal and a few other issues, we’ll endorse him for reelection.


 Correction update: Yee’s office informs us that the senator suports an oil-severance tax and a tax on high-income earners and “believes that Prop. 13 should be reformed,” although he hasn’t taken a position on Assemblymember Tom Ammiano’s reform bill. 


STATE ASSEMBLY, DISTRICT 12, DEMOCRAT


FIONA MA


Fiona Ma’s a mixed bag (at best). She doesn’t like Pacific Gas and Electric Co. and supports public power, but comes up with strange bills that make no sense, like a 2009 measure to limit rent control in trailer parks. Why does Ma, who has no trailer parks in her district, care? Maybe because the landlords who control the mobile home facilities gave her some campaign cash. She faces no opposition, and we’re not thrilled with her record, but we’ll reluctantly back her for another term.


 


STATE ASSEMBLY, DISTRICT 13, DEMOCRAT


TOM AMMIANO


When the history of progressive politics in modern San Francisco is written, Tom Ammiano will be a central figure. His long-shot 1999 mayoral campaign against Willie Brown brought the left to life in town, and his leadership helped bring back district elections and put a progressive Board of Supervisors in place in 2000. As a supervisor, he authored the city’s landmark health care bill (which Newsom constantly tries to take credit for) and the rainy day fund (which saved the public schools from debilitating cuts). He uses his local influence to promote the right causes, issues, and candidates.


And he’s turned out to be an excellent member of the state Assembly. He forced BART to take seriously civilian oversight of the transit police force. He put the battle to reform Prop. 13 with a split-role measure back on the state agenda. And his efforts to legalize and tax marijuana are close to making California the first state to toss the insane pot laws. As chair of the Public Safety Committee, he routinely defies the police lobbies and the right-wing Republicans and defuses truly awful legislation. We’re glad Ammiano’s still fighting in the good fight, and we’re pleased to endorse him for another term.


 


STATE ASSEMBLY, DISTRICT 14, DEMOCRAT


NANCY SKINNER


Nancy Skinner has taken on one of the toughest, and for small businesses, most important, battles in Sacramento. She wants to make out-of-state companies that sell products to Californians collect and remit sales tax. If you buy a book at your local bookstore, you have to pay sales tax; if you buy it from Amazon, it’s tax-free. That not only hurts the state, which loses hundreds of millions of dollars in tax revenue, it’s a competitive disadvantage to local shops. Skinner’s a good progressive vote and an ally for Ammiano on the Public Safety Committee. We’re happy to endorse her for another term.


 


STATE ASSEMBLY, DISTRICT 16, DEMOCRAT


SANDRE SWANSON


Sandre Swanson represents the district where BART police killed Oscar Grant, but he wasn’t the one out front pushing for more civilian accountability; that was left to SF’s Ammiano. And while Swanson was generally supportive of Ammiano’s bill, he was hardly a leader in the campaign to pass it. This is too bad, because Swanson’s almost always a progressive vote and has been good on issues like whistleblower protection (a Swanson bill that passed this year protects local government workers who want to report problems confidentially). We’ll endorse him for another term, but he needs to get tougher on the BART police.

Jerry Brown rambles about Prop. 13

9

Jerry Brown’s speech at the state Democratic convention was apparently well received, and his gimmicky call for a three-way debate got him a lot of good press. But if you want to see Brown’s essential problem — his inability to articulate a real vision for the future of the state, and his utter cluelessness on tax issues — check out this somewhat alarming video that Sweet Melissa captured at a NARAL event April 11. His answer to a Prop. 13 question was rambling, incoherent, and completely off point. Not good news.


I mean, Meg Whitman has already poured $60 million of her own money into the race, and now she’s getting ready to put in more. Why? Because despite spending more cash than the gross national product of some small countries, all she’s been able to do is pull even with Brown at about 42 percent. Nobody in California who has any access to media can have missed Whitman’s blitz; she’s got her name recognition up, and everyone knows what her message is. But so far, a majority of the state isn’t buying it.


So Brown has a chance here. He can tag Whtman as a friend of Goldman Sachs, as an example of everything that’s wrong with American politics and finance, as another Schwarzenegger (whose ratings are in the toilet) and as someone who doesn’t offer any credible solutions to the state’s problems.


But first Brown needs to offer some credible solutions himself. And he’s not doing it. 

Editor’s Notes

0

Tredmond@sfbg.com

The crowd protesting at San Francisco’s Civic Center March 4 had a different demographic than we’re used to. There were families, moms and dads with their kids. A lot of the people there don’t demonstrate and protest on a regular basis; they have jobs and families and can barely keep up with their day-to-day responsibilities. I know the drill.

But they were out in the streets because they’re furious at what’s happening to public education in California — and they should be. It’s criminal. The state is headed for the very bottom, and at this rate we’ll soon have the worst-funded public schools in America. And a gem of a state higher education system is on its way to becoming a set of overpriced, second-rate institutions.

And now everyone who stood up to be counted last week needs to take the next step and support the only solution that will actually work. It’s called raising taxes.

California’s more than $20 billion in the hole. There’s money going to waste, plenty of it. We could release every prisoner doing time on drug charges and save a few billion. But even that wouldn’t be enough to save the education system.

We all knew, or should have known, back in 1978, when Proposition 13 passed, that this day was coming. When you cut off the main source of revenue for schools — local property taxes — and rely on state funding, and the state Legislature can’t raise new revenue without a two-thirds vote, which means a handful of troglodyte Republicans can prevent it, this kind of crisis is inevitable.

So some intense, ongoing political action has to come out of the exciting and wonderful Day of Action. And if it’s going to make a difference, the action has to take place on three fronts.

1. We’ve got to get rid of the two-thirds majority requirement. There’s a ballot initiative circulating now that would do that.

2. We’ve got to amend Prop. 13. Assembly Member Tom Ammiano is pushing for a split-roll, to tax commercial property at a higher rate. That’s an excellent start.

3. We’ve got to push local government to raise taxes — right here at home — to help fund schools and public services. That means pushing Mayor Gavin Newsom, who loves to crow about education, to work with the supervisors on some major new revenue measures.

Either that or we let the politicians point fingers and blame each other. And the schools fall apart.

Making the protests count

37

It was wonderful to see so many people all over the state taking to the streets to protest cuts in education and public services. The rally at San Francisco’s Civic Center wasn’t just young radical agitators, either — most of the people there were parents with kids, families, people who are just fed up with the threats to the future of this state and don’t want to take it any more.


And now that the press and public and maybe even the elected officials are focused on the issue, it’s time to move to the next step. Politicians can talk all they want about “standing with the families” and supporting education, but in the end, there’s only one way to adequately fund K-12 and higher education in California. And that’s to raise taxes.


You can talk about waste all you want, and there’s certainly waste at the University of California. But we’re looking at a need that runs into the billions, multiple billions, tens of billions — and eliminating a few million bucks of waste here and there isn’t going to solve the problem.


You’re not going to solve it by reallocating the state’s budget money, either, since there’s no single large pot of cash that can be taken and given to the schools without devastating another necessary public service. The only real possibility is the prison system, a financial sink hole if ever there were one — but again: You can’t just cut prison spending by eliminating services to prisoners. They get so little as it is — and the federal courts won’t allow any reductions in health care and the state’s already under court order to reduce overcrowding.


You could probably solve half of the schools’ fiscal problems by releasing from prison every single inmate serving time for a drug offense; that’s the kind of dramatic steps we’re talking about. And if anyone wants to launch a political campaign to let 30,000 prisoners free tomorrow, I’m with you.


But it’s not going to happen, not in this climate. So the only real option is to get more revenue. That means raising taxes at the state level, repealing Prop. 13 to allow local property tax hikes, or raising taxes at the city level.


And here’s who the protesters need to be targeting:


1. The governor. Arnold Schwarzenegger not only refuses to allow new taxes as part of the budget, he vetoed Sen. Mark Leno’s bill that would have allowed local government to raise its own car taxes. He’s at (916)-445-2841.


2. The Republican leadership of the state Legislature. These folks go into the budget talks with the power of a minority that can block the two-thirds vote required for tax hikes, and they’ve both signed “no new taxes” pledges. These two people are among the single largest reason that the California school are facing such huge cuts. Assemblymember Martin Garrick,  916-319-2074. Senator Dennis Hollingsworth, (916) 651-4036.


3. Attorney General Jerry Brown. He’s running for governor as the Democratic candidate, and he has already announced that he won’t raise taxes and that Prop. 13 is untouchable. He won’t even support Assemblymember Tom Ammiano’s bill to legalize and tax marijuana. He needs to hear from his constituents that those positions won’t fly. (916) 322-3360


4. The mayor of San Francisco. Gavin Newsom is happy to announce that he supports education funding, but he’s never come forward with a single significant new tax increase for the city. Local taxes could be split between the general fund and the schools, and the progressives on the Board of Supervisors are looking for revenue options. Call the mayor and tell him: If Sacramento won’t raise taxes to educate our kids, we’d like to do it at home, in San Francisco. 415-554-6141.


5. Any state or local official who claims to support the schools but won’t publicly endorse and work for higher taxes. Folks, there’s no other way out of this.


And at the next rally, let’s chant: Repeal Prop. 13, Now! Tax the rich in San Francisco — Now!

Homeowners for Prop. 13 reform

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The Chron’s headline says “most want cuts, not taxes, to fix state budget.” The story cites a new Field poll, and the Chron’s not the only paper to spin it that way. The Sacramento Bee also claims that the poll shows widespread support for cuts instead of taxes.


But the folks at Calitics drew a different, more encouraging conclusion:


The responses, of statewide registered voters:
Cuts only: 31%
Mostly cuts: 19%
Equal mix of cuts and taxes: 29%
Mostly taxes: 9%
Taxes only: 4%
No opinion: 8%
So the way this is being reported in the media strikes me as being pretty flawed. The way I read this says 61% of voters want taxes to be some element of the solution to the budget mess, and only 31% want cuts-only.


And as people take to the streets March 4th to protest cuts to education and public services, I think that message will get reinforced. I certainly hope so — and I hope when protesters are interviewed, they don’t make the mistake of saying that “there’s plenty of waste in the budget” or that resources need to be better deployed.


The truth is that we need to raise taxes, particularly on the wealthy, to close this budget gap without destroying the state. I’m a homeowner who wants higher property taxes and better schools; anyone want to join me in Homeowners For Prop. 13 Reform?

Editor’s Notes

0

Tredmond@sfbg.com

Hundreds of parents packed the Marina Middle School auditorium last week to talk about cuts to public education — and Assembly Member Tom Ammiano, who spoke about reforming Proposition 13, said he thought the response to his suggestions was overwhelmingly positive. That’s not surprising — public school parents in San Francisco are not really the demographic you worry about when you talk about raising taxes to pay for education.

And until fairly recently, I thought it was impossible to do anything worthwhile about tax policy on a statewide level. I figured the state Legislature, with its obstinate Republicans, could never launch a tax reform movement, and that passing a ballot measure to alter Prop. 13 was a long shot at the very best. I was the one telling local officials that we had to look to our own resources, right here in San Francisco.

But when I see hundreds of parents organizing around school cuts, and hundreds of Muni riders organizing around transit cuts, and tens of thousands of students organizing around cuts to higher education, I start to think: maybe there’s hope.

Maybe the state has gotten so bad, the red ink so awful, that Californians will finally realize that they can’t have good public services for free. And maybe they’ll realize that Prop. 13 does a lot more for big commercial property owners than for homeowners, and that a split-roll measure like the one Ammiano is proposing could raise the kind of money we need for decent schools and public services.

I have to hope so.

Marching on Sacramento

15

Angry parents, hundreds of them, met in Marina Middle School to demand an end to cuts in education.

Angry Muni riders, hundreds of them, jammed City Hall to oppose Muni fare hikes and service cuts.

Angry students from the University of California — thousands of them — will hold a huge event March 4th to push for better education funding and lower fees.

There’s something going on here — because in every case, grassroots activists in huge numbers (numbers that dwarf the so-called Tea Party events) want to force the state of California to change its budget priorities. And they are starting to talk seriously about taxes.

The Republicans are pretty intransigent up in Sacramento. But if these groups — the public school parents, the UC students, the transit users and the wide range of other middle-class folks who are sick to death of California’s budget mess and how it’s screwing them — could start working together, we could see a powerful coalition emerging.

And what that coalition needs to do, among other things, is push for Assemblyman Tom Ammiano’s legislation to change Prop. 13 and Sen. Mark Leno’s efforts to allow a local vehicle license fee, and a Constitutional amendment to get rid of the two-thirds majority for budget approval and tax hikes.

The Republicans have all signed this no-new-taxes pledge and it’s going to be hard to move them. Any attempt to change Prop. 13 will be met with huge opposition from big business. I used to think that it was hopeless even to talk about that … but maybe it’s not. Maybe if everyone who’s angry about government cuts understood that the only way to solve the problem in the end is to allow local government to raise money for the schools through property taxes, and allow state government to raise income taxes on the rich and impose taxes on big businesses, we’d be able to build a movement that could make some progress.

It’s worth thinking about.

 

The war on suburbs? Huh?

10

Joel Kotkin, the author and urban scholar, was on KQED’s Forum this morning talking about what he called “the war on the suburbs.” He’s got a new book out, called The Next Hundred Million: America in 2050, and he’s arguing, among other things, that the election of Scott Brown in Massachusetts signals that the Democratic Party and progressives in America have lost touch with the suburbs and are being mean to the poor suburbanites.


He talked, for example, about Tracy, California, and noted that a suburbanite living in Tracy doesn’t want to pay taxes because he doesn’t see what he’s getting for his money. Kotkin sugggestes that the state ought to go back to the Pat Brown era, and focus on spending money on infrastructure, instead of on “state employee pensions.”


Never mind that when Pat Brown was governor, the population of California was less than half what it is today — and the state was far less diverse, had far fewer immigrants, far fewer residents whose primary language is not English and, frankly, was a lot more tolerant of poverty.


That was also before the passage of Prop. 13, so the state didn’t have to spend money on schools and local government; local property taxes covered those things.


In fact, I think what’s going on is just the opposite of what Kotkin is talking about. (He, by the way, says that suburbs are going to be more and more sustainable as more jobs relocate and we start using natural gas in our cars.) I realize that suburban voters can easily shift to the Republican party if the Democrats aren’t careful, but I also think that what’s happening in the United States today is not a war on suburbs but a war on cities.


The state and federal governments have systematically defunded urban America for more than 30 years now, and we’re paying the price. The hypothetical suburbanite in Tracy may think he’s not getting his money’s worth, but the truth is just the opposite; the suburbs — typically, not always but typically — have better-funded schools, better maintained streets, better sewage systems, less crime … and less of an income gap among residents.


Cities are, and will remain, America’s future, and we ignore that at our peril.  


 

Ammiano reviving Prop. 13 reform

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Assemblymember Tom Ammiano is trying to put property-tax reform back on the California agenda. He’s introducing a measure that would call for taxing commercial and residential property at different rates — which would involve a significant change to Prop. 13. It’s been tried before, and big business interests have always managed to shoot it down, but as Ammiano puts it, these are different times:

“For over thirty years, Proposition 13 has allowed corporate landowners to benefit from tax loopholes while shifting the real tax burden to individual homeowners and reducing California’s tax base. “We cannot continue to cut funding from our schools, our parks and our vital human services without addressing the need for new revenue and an equitable tax system.  Reforming Proposition 13 will not solve all of the state’s budget problems but it’s a crucial step in the right direction.”

 It’s not exactly clear at this point what form the legislation will take; it might be a resolution followed by a Constitutional amendment. And I don’t think even Ammiano believes that both houses of the Legislature will happily vote to make big commercial property owners pay their fair share of the state’s tax burden. But it’s worth talking about, worth pushing, worth reminding people that one of the reasons the state is so broke is that the property tax system is frozen in time, a legacy of a very different era in California.For over thirty years, Proposition 13 has allowed corporate landowners to benefit from tax loopholes while shifting the real tax burden to individual homeowners and reducing California‘s tax base.  We cannot continue to cut funding from our schools, our parks and our vital human services without addressing the need for new revenue and an equitable tax system.  Reforming Proposition 13 will not solve all of the state’s budget problems but it’s a crucial step in the right direction.”

 

And a split roll is probably the only way to amend Prop. 13 at this point, since so many homeowners are so happy with it.

 

Editorial: How to create jobs in San Francisco

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If Newsom decides to solve the city’s $520 million deficit with cuts alone, he will be taking more than $1 billion out of the local gross domestic product

EDITORIAL If Mayor Gavin Newsom is serious about stimulating the San Francisco economy, he ought to start with a basic number that the city’s own economist, Ted Egan, passed along to us this week. The number is 2.11 — and Egan says that’s the multiplier effect of cuts in local public spending.
In other words, every dollar Newsom cuts from the city budget has a ripple effect of taking $2.11 out of the San Francisco economy. Which means that if the mayor decides to solve the city’s $520 million deficit with cuts alone, he’ll be taking more than $1 billion out of the local gross domestic product.
And that, in a nutshell, is the problem with the mayor’s economic stimulus package: it’s entirely aimed at the private sector, with no regard for how it will hit public spending.
A dose of reality here — public-sector jobs are also jobs. People who work in the public sector pay rent and mortgages and buy clothes and food for their kids and go shopping in local stores and go to local clubs and restaurants and pay taxes — and have the same economic impacts on the economy as private-sector workers. If you lay off nurses and recreation directors, those people stop spending money in town, and you continue the vicious cycle that has made this recession so deep and painful.
And if your entire economic stimulus program is aimed at cutting private sector taxes, it’s going to lead to public sector job losses. And those losses will undermine much of the impact of any gains you might get from private sector job growth.
Egan predicts that Newsom’s program of eliminating the payroll tax for new hires would create 4,330 new jobs in the city. We find that something of a stretch — it’s hard to imagine how any struggling small business would find eliminating a small tax enough reason to hire a new worker, and small businesses provide the vast majority of the private-sector jobs in San Francisco. But even if it’s accurate, it’s a fairly tiny gain. The city’s lost more than 35,000 jobs since 2007, and when the economy rebounds in the next two years, Egan predicts about 20,000 new jobs in the city even without the stimulus.
Egan also acknowledged to us last year that “the consensus among economists is that most of the time government spending stimulates the economy more” [than tax cuts].”
That’s particularly true in a city where the largest employers are all in the public sector (see opinion piece this page).
If the mayor and the supervisors actually want to create jobs in San Francisco, there are plenty of things they can do — starting with finding ways to close as much of the budget gap as possible without layoffs. Here are some possible approaches.
• Put a major revenue measure on the November ballot that saves city jobs without costing private sector jobs. There are several ways to do this, but all of them start with the well-demonstrated concept that transferring wealth from the rich to the poor and middle-class — that is, giving money to people most likely to spend it — is good for job creation. One option: shift the payroll tax to a gross receipts tax and charge bigger companies a higher rate. Another: a commuter tax on income earned above $50,000 a year would charge wealthier people who use city services and don’t pay for them.
• Issue infrastructure bonds. The notion that cities can’t borrow money the way the federal government does to fund economic stimulus programs is just wrong. San Francisco can sell bonds for a wide range of projects, from affordable housing to alternative energy projects to public works programs that are badly needed and could put San Franciscans directly to work. But it can’t be small-time projects; to make a difference, direct stimulus needs to be big, perhaps $1 billion. San Francisco’s property owners, who ultimately are on the hook for the bonds, are by and large (thanks to Prop. 13) entirely able to handle more payments.
• Lend more money to small businesses. The biggest obstacle to small business hiring isn’t taxes but a lack of credit. The $73 million Newsom is going to spend on tax cuts would create far more jobs as part of a city-sponsored microloan fund. Newsom’s efforts on that front are still very small scale.
There’s so much more the city can do — but cutting taxes and losing city jobs is the wrong way to turn around the economy.

How to create jobs in SF

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EDITORIAL If Mayor Gavin Newsom is serious about stimulating the San Francisco economy, he ought to start with a basic number that the city’s own economist, Ted Egan, passed along to us this week. The number is 2.11 — and Egan says that’s the multiplier effect of cuts in local public spending.

In other words, every dollar Newsom cuts from the city budget has a ripple effect of taking $2.11 out of the San Francisco economy. Which means that if the mayor decides to solve the city’s $520 million deficit with cuts alone, he’ll be taking more than $1 billion out of the local gross domestic product.

And that, in a nutshell, is the problem with the mayor’s economic stimulus package: it’s entirely aimed at the private sector, with no regard for how it will hit public spending.

A dose of reality here — public-sector jobs are also jobs. People who work in the public sector pay rent and mortgages and buy clothes and food for their kids and go shopping in local stores and go to local clubs and restaurants and pay taxes — and have the same economic impacts on the economy as private-sector workers. If you lay off nurses and recreation directors, those people stop spending money in town, and you continue the vicious cycle that has made this recession so deep and painful.

And if your entire economic stimulus program is aimed at cutting private sector taxes, it’s going to lead to public sector job losses. And those losses will undermine much of the impact of any gains you might get from private sector job growth.

Egan predicts that Newsom’s program of eliminating the payroll tax for new hires would create 4,330 new jobs in the city. We find that something of a stretch — it’s hard to imagine how any struggling small business would find eliminating a small tax enough reason to hire a new worker, and small businesses provide the vast majority of the private-sector jobs in San Francisco. But even if it’s accurate, it’s a fairly tiny gain. The city’s lost more than 35,000 jobs since 2007, and when the economy rebounds in the next two years, Egan predicts about 20,000 new jobs in the city even without the stimulus.

Egan also acknowledged to us last year that “the consensus among economists is that most of the time government spending stimulates the economy more” [than tax cuts].”

That’s particularly true in a city where the largest employers are all in the public sector (see opinion piece this page).

If the mayor and the supervisors actually want to create jobs in San Francisco, there are plenty of things they can do — starting with finding ways to close as much of the budget gap as possible without layoffs. Here are some possible approaches.

Put a major revenue measure on the November ballot that saves city jobs without costing private sector jobs. There are several ways to do this, but all of them start with the well-demonstrated concept that transferring wealth from the rich to the poor and middle-class — that is, giving money to people most likely to spend it — is good for job creation. One option: shift the payroll tax to a gross receipts tax and charge bigger companies a higher rate. Another: a commuter tax on income earned above $50,000 a year would charge wealthier people who use city services and don’t pay for them.

Issue infrastructure bonds. The notion that cities can’t borrow money the way the federal government does to fund economic stimulus programs is just wrong. San Francisco can sell bonds for a wide range of projects, from affordable housing to alternative energy projects to public works programs that are badly needed and could put San Franciscans directly to work. But it can’t be small-time projects; to make a difference, direct stimulus needs to be big, perhaps $1 billion. San Francisco’s property owners, who ultimately are on the hook for the bonds, are by and large (thanks to Prop. 13) entirely able to handle more payments.

Lend more money to small businesses. The biggest obstacle to small business hiring isn’t taxes but a lack of credit. The $73 million Newsom is going to spend on tax cuts would create far more jobs as part of a city-sponsored microloan fund. Newsom’s efforts on that front are still very small scale.

There’s so much more the city can do — but cutting taxes and losing city jobs is the wrong way to turn around the economy.

 

Gavin Newsom is flat-out factually wrong

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By Tim Redmond

The mayor of San Francisco made a remarkable statement in his state of the city address. It goes like this, according to the Chron’s report:

“I have not met one human being who says we’re undertaxed in San Francisco,” [Newsom] said.

That’s flat-out factually wrong. And I can prove it.

Gavin Newsom has met me on many occasions. He’s been to my office, and I’ve been to his. We’ve had extensive talks about tax policy. I am a human being, and I’m willing to take a DNA test to prove it.

And Newsom knows that I believe very strongly that we are undertaxed in San Francisco.

I don’t think I’m the only human being he knows who believes that, either. As Aaron Peksin, chair of the local Democratic party, pointed out when I called him on this::

I believe that the voters of San Francisco have demonstrated repeatedly that they are willing to accept new taxes. In November, 2008, they closed loopholes on the payroll taxes, increased the real-property transfer tax and voted in a 911 tax. The voters recently chose to tax themselves for an open space and recreation bond, have voted repeatedly to levy taxes against themselves to improve their schools, and I believe the mayor himself is the sponsor of a proposed general obligation bond — a form of tax — for this June to improve seismic safety.

There is, of course, a distinction between regressive taxes like sales taxes and progressive taxes (like the property transfer levy). But San Franciscans don’t seem to believe, on the whole, that they are overtaxed.

And they shouldn’t. Thanks to Prop. 13, California homeowners and commercial property owners pay scandalously low property taxes. Thanks to the Republicans in Sacramento, wealthy California residents pay scandalously low income taxes. Thanks to Ronald Reagan and G.W. Bush, wealthy Americans pay scandalously low taxes.

And as a whole, Americans pay lower taxes than most other industrialized democracies.

That’s one reason we have such a weak education system and that the gap between the rich and the poor is so high.

So you’re wrong, Gavin. You do know people who think San Franciscans are under taxed. And they’re right.

Is SF spending too much money?

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By Tim Redmond

When the SF Weekly ran its cover story a couple of weeks ago calling San Francisco “the worst-run big city in the U.S.” my first thought was to ignore it. That kind of claim is meaningless; it’s just a flashy headline, and the story didn’t back it up with much more than a few examples of bad management of the sort that occur in cities all over.

So what makes San Francisco “the worst?” Well, part of it, said the Weekly, is the fact that SF spends more money per capita than any comparable city and county. In fact, according to a chart the Weekly included in its story, SF spends more than twice as much per capita as Philadelphia (which is actually a comparable city, with big-city problems and a fairly rich service mix) and spends more than four times as much as Indianapolis (which isn’t comparable for a lot of reasons).

But the minute I started paying attention to that chart, I knew there was something really wrong. Melanie Ruiz and I spent some time checking it out, and we found that the “comparisons” are somewhere between misleading and totally bogus.

Here’s what we found.

What’s important here is that it’s really hard to compare any two cities in America on this level. Cities are organized in so many different ways, and their budgets are set up so differently, that any direct comparison is going to look like apples to oranges.

For example, Philadelphia and San Francisco both have extensive, costly public transportation systems. Taxpayers in both cities underwrite those systems. But in Philly, the system, known as the Southeast Pennsylvania Transit Authority, is a distinct agency (like BART is out here); the city and county of Philadelphia contributes $63 million a year to its operations, but the major overhead costs are outside of the city budget.

There’s an airport in Philly, too. It’s expensive to run, just as SFO is expensive to run. It mostly pays for itself through landing fees, just as SFO does. In San Francisco, the cost of the airport (which takes no taxpayer money) is included in the city budget; in Philly, it’s not.

People in Philly who get sick and have no insurance don’t die in the streets – but that city and county doesn’t fund a public hospital the way SF does.

In fact, San Francisco’s budget includes just about everything that any city offers. It’s not that this city provides services nobody else does (well, we do, but that doesn’t explain the budget differences entirely). It’s that other cities and counties don’t include those services in their budgets.

Now, the folks at the Weekly, who criticized our story before it was even out, argue that

Yes, our city pays for things others don’t — but, then, other cities have to maintain aging infrastructure weakened by extreme heat and cold. Other cities have to keep up municipal vehicles ravaged by salt. Other cities have to shovel snow. Other cities have miles and miles more pothole-filled streets to look after. Other cities’ Sheriff’s Departments have many more responsibilities than San Francisco’s. Other cities have police forces larger than several European nations’ standing armies and security costs that dwarf this city’s.

All of which is true – and makes the point that you can’t do exact comparisons without doing a whole lot more work than the Weekly did on its chart.

But most of those items are million-dollar items – shoveling snow costs Denver, for example, millions a year – but not hundreds of millions or billions. Same for filling potholes. (Most cities don’t have Sheriff’s Departments, by the way – that’s a county function – and the county sheriffs who do more work are policing unincorporated areas. And the only city with that massive police force is New York, which is so unusual that it’s hard to compare it to any other American city.)

But the bottom line is, those are (comparatively) small-ticket items. The items that make a city budget seem huge are the departments and programs that run in the multiple hundreds of millions of dollars, and those tend to be things like public hospitals, transit systems, and airports. In SF, they account for more than $2 billion a year – and because of the way this city is set up, all of that goes in the same $6.5 billion budget.

We tried several ways to make a better comparison, which you can see here (pdf)

We compared general funds to general funds (something the Weekly got wrong). We deflated the SF budget by taking out those big-ticket items that other cities don’t include in their budgets. We tried to find cities more comparable to SF – big cities with big-city problems and services – and we tried to adjust those budgets to account for the fact that some of those cities get extensive services that are paid out of separate county budgets.

And we did something else: We took into account the cost of living. The vast majority of what the city budget (here and elsewhere) goes for is salaries of city workers. It costs a lot more to live here, so we pay our workers better. There are plenty of academic studies that look at comparable costs of living in cities; we used a generally accepted one.

And when we were done with all of this we came to the conclusion that SF doesn’t spend more than comparable cities; it’s really about the same.

Now that’s probably unfair to San Francisco (and Los Angeles). We’re in California, where the state doesn’t spend as much per capita on programs that aid cities as other states do. Yes, the state has a budget of more than $100 million dollars, but 40 percent of that goes for education – and in many other states, local property taxes pay for much of the cost of public schools. In California, thanks to Prop. 13, local property taxes are inadequate to provide decent public schools, so the state has taken up the burden.

When you take that factor out of the state budget, and compare California to other states, the per-capita spending is pretty low.

Our comparisons aren’t perfect. There are other cities to look at, other line items to examine, other methods of comparing that are also valid. The folks who read this blog (and the folks at the Weekly) will no doubt argue with our methods, and I bet somewhere in there we made some mistakes. But overall, I think our approach is more accurate.

People who live in cities typically pay taxes to several levels of government – the feds, the state, special districts (like BART), school districts (except in California), counties and the cities themselves. I would argue that San Franciscans probably pay less per capita than the residents of many other cities (certainly less as a percentage of their income). We just pay it all into one big pot.

That’s why the SF Weekly chart was so misleading. And why this kind of argument shouldn’t be used to say that San Francisco spends too much money on government.

I’m not going to argue that local government is perfect, or that it’s free or corruption and waste. There’s a lot of waste in San Francisco (does the mayor really need five press aides?) and plenty of inefficient spending.

But overall, it’s not a whole lot worse than other cities. That’s my conclusion.

A timely move on Prop. 13

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By Tim Redmond

Calitics reports this morning that the California Nurses Association is preparing a split-roll ballot initiative for 2010. The outline of the measure looks good, both in terms of impact (billions and billions in extra tax revenue for local government) and politics (a clear message to homeowners that this won’t raise their taxes). As Robert Cruickshank notes, the proposals would

• Tax commercial property at fair market value, and frequently reassess property taxes at fair market value (instead of locking in a value and rate, as Prop 13 currently does). The main difference between the two initiatives is how that reassessment is accomplished.

• Provide a small business exclusion of up to $1 million

• Double homeowners’ exemption from $7,000 to $14,000 (as a sweetener to voters)

It’s a clever approach, one that almost certainly polls well with voters, since the initiatives offer tax relief for residential owners and small businesses – making it crystal clear, at least in the initiative language, that this is NOT an attack on the sacred cow of residential property protections offered in Prop 13.

CNA has the money and the clout to get this going, and it could become one of the most important campaigns of the year. If the group goes forward — and I hope that happens — wafflers like Jerry Brown will have to take a stand, and tell us whether they’re with big business and commercial landlords or with the millions of Californians who are getting screwed by an unfair tax system and deep cuts in public services.