Top Stories
Bookkeepers Try to Figure out if State Is Sitting on Billions of Dollars
After finding $54 million in its Department of Parks and Recreation pants pocket, the state is checking billion-dollar bulges in 560 other pockets scattered throughout its wardrobe.
The San Jose Mercury News followed up on its report that the parks department had millions squirreled away unbeknownst to the Department of Finance, with a calculation that $2.3 billion might be sitting unaccounted for in 17 other departmental special funds throughout the government. read more
30 Years Later, Brown Restokes Water War Fears with Delta Tunnel Project
Can the critics call it the second coming of the Peripheral Canal if the conduit used to divert water around the Sacramento-San Joaquin Delta for shipment to Central Valley farmers and thirsty Southern Californians . . . is a tunnel? read more
L.A. Clamps “Gentle Ban” on Pot Shops Days after Bay Area Supporters Vent at Obama
The day after medical marijuana supporters in the Bay Area—with President Barack Obama in San Francisco—expressed their frustration over a statewide crackdown by federal authorities on state-approved sale of the drug, the Los Angeles City Council voted unanimously to put pot shops out of business.
The 14-0 vote for a “gentle ban,” supported by Mayor Antonio Villaraigosa, could mean closure for the city’s 762 dispensaries by September. read more
Carcinogen Complicates Mojave Water Project Already under Fire
Cadiz Inc. has unsuccessfully pushed a plan to ship water from a Mojave aquifer to Southern California cities for more than a decade, running afoul of environmentalists, desert residents, nearby mining interests, political watchdogs and water district officials.
Its quest didn’t get any easier this past week when environmental documents quantified the known presence of toxic hexavalent chromium in amounts far beyond public health goals. read more
Underfunded Parks Department Hiding Millions; Director Resigns
Moments after news hit Friday that the Department of Parks and Recreation—which scrambled all year to find outside money to keep parks open through the summer—had a hidden $54 million surplus stashed away where not even the Department of Finance would find it, Director Ruth Coleman sent out her letter of resignation. read more
County’s Anti-Foreclosure Plan Upsets Bankers
One of the counties hardest hit by the housing debacle that helped crash the U.S. economy has been quietly considering a plan to use its eminent domain powers to seize underwater mortgages to fight foreclosures.
Banks are not happy with the aggressive plan—first discussed by San Bernardino County in January talks with a private investor group but not publicized until recently—that might help 20,000 to 30,000 families remain in their homes. read more
Feds Bury Info on Website about San Onofre Troubles
Even if you listened closely you wouldn’t have heard the sound of decaying tubes carrying radioactive steam through the now-shuttered San Onofre Nuclear Generating Station between San Diego and Los Angeles.
And you would have to look very closely now to see data—buried on the U.S. Nuclear Regulatory Commission (NRC) website—detailing just how bad that decay is. read more
Another California City Heads for Bankruptcy Amid Bond Market Threat
San Bernardino became the third California city in recent weeks to seek bankruptcy protection from its creditors and, like Stockton before it, was immediately threatened with retaliation from the bond markets. read more
Small California Banks Still Mired in TARP Debt after Big Banks Made out Like Bandits
The big banks bailed out after the 2008 crash they helped precipitate have mostly paid the government back, but small banks have struggled, especially in California, and Washington is threatening to cut them loose.
Twenty-eight banks in California still owe money loaned them through the Troubled Asset Relief Program (TARP), more than in any other state. read more
Bullet Train Blows through Caution Signs; Next Stop D.C.
After months of very public debate, California lawmakers passed legislation by the narrowest of margins which all but assures folks from Bakersfield to Madera that one day soon they will be riding on high-speed rail through the sparsely-populated outposts of the Central Valley.
The rest of the state will be waiting to see if the federal government can extend the project to them. read more
Budget Keeps Veterans Homes Empty Despite Waiting Lists
California has just finished building two brand new nursing homes for veterans and has lots of empty beds in its six other facilities. It also has a list of more than 1,400 old, sick and disabled veterans who want to get in but can’t because of cuts in the state budget. read more
California Gambled and Won on Health Care, but Romney Has Plan to Dismantle It
California has been in the forefront of states gearing up for full implementation of President Obama’s Affordable Health Care Act, and now that the U.S. Supreme Court has let stand its centerpiece, the individual mandate, and most of its other features it looks like the gamble may have paid off. read more
State Heeds Warnings about Toxic Furniture Flame Retardants It Championed
A week after Governor Jerry Brown joined a chorus of critics urging state regulators to reduce toxic flame retardants in furniture, the woman who heads the agency responsible for the 1975 fire-safety rule says she wants it scrapped. read more
Stockton to Become Largest City in U.S. to Declare Bankruptcy
The city of Stockton failed to reach a deal with its creditors Tuesday, setting the stage for the largest U.S. municipal bankruptcy in history.
The Stockton City Council voted 6-1 Tuesday night to halt bond payments, whack its employee health and retirement benefits and move forward with bankruptcy proceedings. read more
It's Court v. Court after Demise of Judicial Computer System
Fallout from the death in March of the billion-dollar computer system that was meant to unify the myriad judicial case management systems across the state is rippling through individual courts as they try to salvage the investments they have already made. The state spent $500 million over a 10-year period on the system, but only a few counties have implemented aspects of it. read more
State Closes Budget Gap with Money from Welfare Recipients and Low-Income Children
Governor Jerry Brown and state Democratic leaders worked out the final details of a budget plan that still relies on voters approving an $8.5 billion tax hike in November and giant cuts now in social programs. read more