The Loop: April 2011

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TRUTH BYTES

• Social Security is not broken.  In truth, Social Security and Medicare have their own source of income and are not facing insolvency.  The true reasons for our financial problems are the wars, the military-industrial complex and corporations not paying their fair share of taxes.   Social Security has not added one dime to the federal debt.   Instead Social Security has nearly $2.6 trillion saved in its Trust Fund, which is owed more than $200 billion each year in interest income alone.   Medicare receives some funding from the federal general fund, but very little.   Most of the costs of Medicare are paid for by its share of the payroll tax and from the premiums paid by Medicare enrollees.
   
• Corporations are sitting on $2 trillion dollars – most of it gained through tax loopholes.   They are not using this money to develop new industries which would provide jobs for Americans.  They are flushed with cash ($52 billion at Intel alone) and paying inordinately high bonuses to a few, and paying dividends to investors worldwide, not just American or Californians.  When we hear Republicans say that our public employees are overpaid and that is why we don’t have enough money for schools, etc., we should remember government does not have enough money because the biggest corporations pay little or no taxes.  Remember how much corporations used to pay in the 1970’s as opposed to what they contribute now?  When we hear people complaining about the amount of pensions some public employees have negotiated, we need to think of those who do not have any pensions or health care and realize that Democrats are fighting for health care for all and retirement for every working person.  We’re fighting to build people’s lives up instead of tearing them down.

DID YOU KNOW?

• Our state senators and assembly members DO NOT get pensions.
   
• California has the second lowest ratio in the country of state workers per 10,000 state residents.
   
• The speed limit during World War II was 65 mph.  Carter’s administration mandated 55 mph speed during the gas shortage of the 1970’s.  Reducing the speed limit reduces our dependency on imported oil by billions of barrels.
   
• In a Labor Day address in 1980, Ronald Reagan said “These are the values inspiring those brave workers in Poland … they remind us that where free union and collective bargaining are forbidden, freedom is lost.”

THE CORPORATE/GOP ATTACK ON AMERICA'S MIDDLE CLASS
by Jim Hightower

Wisconsin Governor Scott Walker's autocratic attempt to abrogate the democratic right of public employees to bargain with their governmental bosses is not wearing well with the public. Recent polls show that a mere one-third of Wisconsinites favor his blatantly-political power play, and that if he had told voters in the last year's election that he intended to do this, he would've lost. After only one month in office, Walker's approval rating has plummeted, and he's become a national poster boy for right-wing anti-union extremism – indeed, he's so out of step that he's even being jeered by democracy fighters in Egypt! (Click here to read more!)

THE CALIFORNIA BUDGET AND PUBLIC EDUCATION
Assemblymember Joan Buchanan AD15

California has an unprecedented $26.6 Billion deficit with general fund revenues of $85 Billion.  To close this gap and put our budget on firm ground for the next five years, the Governor has proposed a budget with deep cuts and an extension of temporary revenues.  He understands that this recession is not a typical "V" shaped recession.  It is an "L" shaped recession with recovery occurring much more slowly.  That is why his balanced approach makes sense. It builds a bridge to recovery, avoiding additional, devastating cuts to K-12 education.

Senator Mark Leno asked the Legislative Analyst Office to provide a preliminary report on additional cuts that would be necessary if the temporary revenues were not extended.  The cuts would be devastating to the people and economy of California.  The LAO recommendations include an additional $5.2B in cuts to K-12 Education, $1.1B in cuts to higher education, $1.2B in Health and Social Services, $2.6B in Criminal Justice and Judiciary, $1.7B in General Government and Local Government, and $1.7B in Transportation and Resources.  The Governor has stated that the cuts to education in an all cuts budget could result in the school year being cut four to six weeks or the equivalent in other cuts.

Economic studies show that countries that recover strongest from deep recessions have two factors in common:  They invest in infrastructure and education.  Republicans believe that business is the key to our economic recover, but what companies are going to relocate to California if our school doors do not open until October?  The future of both our children and our state are at stake. 

Passing the extension of the temporary revenues is not an option.  It's an imperative if we want our children and grandchildren to receive adequate public educations (I say adequate because even without the additional cuts, funding is inadequate.) and to become the future workers and leaders.  The workforce of tomorrow will require students with new skills – science, technology, math and science – and with high levels of education, not less.

We need two Republican votes in each house to put the extensions on the ballot.  Two votes to allow voters to vote, to tell us their priorities.  Recent polls show that a majority of all voters, Republicans, Democrats, and Decline-To-States, want the measure placed on the ballot.  They want to exercise their franchise.

Let's hope our oath to serve the people of California will be more important than a pledge to someone in Washington DC not to vote for a tax increase or even to allow the voters to vote to extend their own temporary taxes!  Democratic activists have to get out the word and make sure that EVERYONE understands the devastating impact of an all cuts budget.

School Financial Emergency Declared January 6th, 2011

"There’s simply no other way to describe it: this is an emergency. Every day, teachers, school employees, and principals are performing miracles, but the $18 billion in cuts over the last three years are taking their toll. We have 174 districts teetering on the financial brink. If this isn’t an emergency, I don’t know what is. The law won’t let me call out the National Guard. So I’m saying to every Californian: ‘Your schools need your help. And they need it now.’"  — Tom Torlakson, State Superintendent of Public Instruction DECLARED BEFORE THE NEW $5B CUT TO K-12 FUNDING.  SEE http://www.cde.ca.gov/nr/re/ht/fe.asp. 

The effects of not passing the extension are somewhat known
Predictions from Tom Torlakson’s office are that cuts for K-12 could result in either huge class sizes OR school starting in OCTOBER.  Each district may respond differently, some could layoff, tap reserves or pass parcel taxes.   Statewide, school superintendents are being polled as to what they plan to do if the $5B cut to K-12 is made.  NO IF – see below!!

Jerry Brown ends budget negotiations with GOP

Wyatt Buchanan, Marisa Lagos       
March 29, 2011 – SF Chronicle Sacramento Bureau

Gov. Jerry Brown on Tuesday said he has abandoned talks with Republicans on closing California's $26.6 billion deficit, a move that effectively ends what has been the governor's primary goal since he took office in January: a bipartisan plan that would include a vote of the people.  (Click here to read more.)

Legislative Republicans signed the Grover Norquist pledge not to raise taxes. 

The first rule of bears
NEVER GET BETWEEN
MOMMA & CUBS   

Democratic activists have to get out the word and make the PTA/soccer moms, pops and grandparents aware of the DANGER to the cubs.  Send letters to the editor, your friends, TV & radio stations, call in shows, and talk loud in public.  This is more important than the California Budget in 2011.  California leads a nation watching how we respond to the conservative attack and how we re-frame the situation as:

California does not have money for education and vital services
because protected by the Norquist pledge,
many of the largest corporations are not paying fair shares.

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