In This Issue:

• FRIDAY THE 13TH BUDGET NIGHTMARE

• DEAL OR NO DEAL?

• WHAT’S IN THE BUDGET PLAN?

• DUTTON VOTING “NO” - POIZNER CALLS DEAL “TRAVESTY”

• SERVICE UNION OPPOSES BUDGET DEAL TOO – NOT PURPLE ENOUGH!

• REDISTRICTING PLANNING MEETING

• NEW STATE DISABILITY ACCESS LAW REFORMS; FREE WEBINAR

• CBPA NEW LEGISLATOR LUNCHEON & BOARD MEETING

• CBPA 2009 CALENDAR

FRIDAY THE 13TH BUDGET NIGHTMARE

Today, the day before a vote is scheduled, is the 100th day since the Governor called a special session to address the $40 billion budget hole. It's also Friday the 13th. Spooky. Let’s hope this nightmare is over when we return next week.
 

DEAL OR NO DEAL?

Rumours remain rampant about a supposed budget deal coming together, though no one is willing to say publicly that one has been agreed upon. In a sure sign of something happening, both houses have scheduled very rare Saturday Floor Sessions, which had filled the Capitol Hallways with grumbling from staff about having to cancel family plans for the long weekend.
 

WHAT’S IN THE BUDGET PLAN?

All but a small group of people are unaware of the specifics in the budget. However, Legislature-Watchers have pieced the following together from leaks, press conferences, and interviews:

* $15.8 billion in cuts
* $14.3 billion in tax increases
* $10.9 billion in borrowing.

If California gets $10 billion in expected federal stimulus money, cuts drop by $1.2 billion, borrowing by $5.5 billion and tax increases by $1.8 billion.

K-12 education gets $5 billion less than it is entitled to under Prop 98 guarantees. State workers will have two less paid holidays and furloughs to continue through 2010. UC and CSU budgets reduced by 10 percent. Eliminates funding for local public transit agencies.

According to the Sacramento Bee, on the tax side the plan increases sales tax by 1 cent on the dollar, vehicle license fees from current 0.65 percent of vehicle value to 1.15 percent, and gasoline taxes by 12 cents a gallon with proceeds to pay off transportation bonds. Income taxpayers would pay a 2.5 percent surcharge on tax liability - 5 percent if federal stimulus comes in under $10 billion. And reduces tax credit for dependents from $309 to $99.

Supposedly, there will be a June special election to adopt the budget reforms. If that measure fails the taxes will remain in place for two years. If it passes they will remain in place for five years.
 

DUTTON VOTING “NO” - POIZNER CALLS DEAL “TRAVESTY”

Although it has been widely rumored that Republican negotiators have won concessions in the proposed state budget deal, including reformed workplace rules and narrow exemptions from California's environmental laws for transportation projects, most Republicans are rejecting the deal. Bob Dutton (R-Inland Empire) who acts as the lead Republican on the Budget Committee has written that he will “go to the floor of the Senate to cast my vote against a budget that will raise taxes on California residents by a stunning $14.5 billion.”

Insurance Commissioner and a candidate for Governor, Steve Poizner, is urging his Republican colleagues in the Legislature to oppose this "travesty of a budget deal," stating it will impose $14 billion in new taxes on Californians. Click here to read Poizner’s article on the topic entitled Budget Deal Disaster: Making A Bad Situation Worse, where he complains that we "are on the verge of passing one of the largest tax increases in American history."
 

SERVICE UNION OPPOSES BUDGET DEAL TOO – NOT PURPLE ENOUGH!

And it is not just Republicans that are rejecting the proposed budget. State Worker union, SEIU, and other groups are on the Capitol steps urging legislators to vote "no" on the budget deal.
 

REDISTRICTING PLANNING MEETING

In the November 2008 General Election, voters approved Proposition 11 (the Voters First Act), which established a new 14-member commission charged with drawing the new State Senate, State Assembly and State Board of Equalization district boundaries.

Representatives from the California Bureau of State Audits will be conducting public meetings throughout California to solicit comments about the processes that should be established for individuals to apply to become members of the Commission and for the selection of an Applicant Review Panel to assess the applicants and create an applicant pool of 60 qualified members.

The business community is highly encouraged to participate and provide input in to this process. Public meetings are scheduled in the following areas:

Fresno – Feb. 20
Los Angeles – Feb. 23
San Francisco – Feb. 27

Click here for more detail.
 

NEW STATE DISABILITY ACCESS LAW REFORMS; FREE WEBINAR

A free web seminar explaining how businesses can reduce their risk of disability access lawsuits is being offered by CalBizCentral, the source for California business and human resource compliance products, presented by the California Chamber of Commerce.

The live web seminar focuses on SB 1608: What California’s New Accessibility Law Reforms Mean to California Employers. The half-hour web seminar, set for February 19 beginning at 10 a.m., will outline how the new law can help businesses and illustrate the new protections the law creates for employers.

Registration and more information on the webinar is available at www.calbizcentral.com/training or by calling (800) 331-8877.
 

CBPA NEW LEGISLATOR LUNCHEON & BOARD MEETING

If you have not already done so, please RSVP for the bi-annual CBPA New Legislator Luncheon on February 18 in Sacramento. This is your opportunity to meet with new Assemblymembers and Senators in a relaxed atmosphere to discuss issues of importance to the commercial, industrial, and retail real estate sector. The luncheon follows the first meeting of 2009 for the CBPA Board of Directors. We expect a very good showing of legislators to the luncheon. Contact Melissa Martinez, 916-443-4676 for more information or to RSVP.
 

CBPA 2009 CALENDAR

February 18, 2009 (note date change)
CBPA Board Meeting and New Legislator Luncheon
Sacramento, CA (California Chamber of Commerce)

March TBD (late March), 2009
CBPA Legislative Committee Meeting
Place TBD (Southern California)

June 9-10, 2009
CBPA Board Meeting and
California Commercial Real Estate Summit (CCRES)
Sacramento, CA

November 5-6, 2009
CBPA Board Meeting and
Real Estate Industry Strategic Issues Conference
Napa, CA (Meritage)