Congratulations Rayne!
After many weeks of wondering whether or not a Californian would get a key USDA appointment, Rayne Pegg (formerly Rayne Thompson) was named by Agriculture Secretary Tom Vilsack as the new Administrator for the Agricultural Marketing Service (AMS.) The AMS houses an array of important national and international programs relating to commodities, marketing orders, research and promotion, transportation, market news, food purchases and transportation.
Rayne started her career in agriculture when she came to work for the Ag Council in 2001. In 2004, she joined the California Farm Bureau as director of international trade and plant health. In 2008, she was appointed as the Deputy Secretary of Legislation and Policy at the California Department of Food & Agriculture. Rayne is a remarkable young woman, who has earned the trust and confidence of industry leaders. We wish her all of the best and look forward to working with her in Washington DC.
Food Safety Update
This week Council staff met with Assemblyman Mike Feuer and Senator Dean Florez on their respective food safety bills. We also participated in a coalition meeting with Department of Public Health (DPH) to learn more about the existing process and the perceived shortcomings in the current food safety system. The common theme throughout meetings was the strong desire by the policymakers to have mandatory reporting tied to the Hazard Analysis Critical Control Point (HACCP) planning process. We discussed HACCP extensively along with whether or not a mandatory recall system would work.
Another major concern is the potential cost. It appears nominal fees for inspections would be imposed. Additionally, since the state is essentially “broke,” the food processing industry could be stuck for the entire cost of implementing and administering a government-run food safety system. Ag Council will seek the guidance of our food safety committee has we navigate this difficult issue.
No Way Out
Governor Schwarzenegger announced his grim budget shortfalls ranging from bad ($15.4 billion) to worse ($21.3 billion) depending on the outcome of Tuesday’s election. From an agricultural perspective, it’s tough to fully understand the scope of program cuts and fee increases until the Governor’s May Revise proposal is examined in detail. Based on the executive summary released late Thursday we know the following:
- $34.7 million in Williamson Act subvention funds are eliminated
- $40.1 million in increased employer fees to pay for Cal-OSHA and Labor Standards Enforcement programs.
If the ballot measures the following additional actions are proposed:
- $100 million and $50 million in unallocated cuts to CSU and UC respectively.
- 4.8% surcharge on residential and commercial property insurance to partially fund the Department of Forestry & Fire Protection activities.
- $1.982 billion borrowing from local governments (potentially impacts county ag commissioner programs.)
There are no easy answers to California’s fiscal problems, so everyone will have to share the pain.
Prop 98 Tutorial
Regardless of the outcome in next week’s Special Election, California’s budget problems will remain a chokehold on public policy. Since Prop 98 (enacted 20 years ago to protect state funding for K-14 schools) represents roughly 40% of General Fund expenditures, it’s the proverbial “900 lbs guerrilla” in the budget process. Unfortunately, very few people other than capitol budget wonks understand how Prop 98 works vis-à-vis state revenues and expenditures. So, if you have 20 minutes to spare, the Legislative Analyst provides a webcast that explains Prop 98 in layman’s terms. While the webcast won’t win any Emmy Awards, it provides useful information and insight into the ensuing budget debate. The webcast can be accessed at:
http://www.lao.ca.gov/2009/edu/prop98_primer/prop98_primer.aspx.
AgJOBs
Three key California lawmakers, Senator Dianne Feinstein and Congressmen Howard Berman and Adam Putnam reintroduced the Agricultural Job Opportunities, Benefits and Security Act of 2009, (AgJOBS) on Thursday. Similar to years past, AgJOBS restructures and reforms the current H-2A temporary agricultural worker program. AgJOBS also allows aliens who can demonstrate a substantial commitment to agricultural work in the United States through work experience obtained prior to introduction of the legislation to earn legal status in order to remain working in agriculture. This will allow agricultural employers to retain a legal and experienced workforce while they anticipate and prepare for future participation in the reformed H-2A program.
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