| Weekend Clippings for September 19 - 20, 2009
1. Fed policymakers likely to maintain aid programs
2. Markets gave Fed what it needed
3. The Bailout Bill Comes Due, Vexing Agencies
4. Proposed state tax would be paid by businesses in every industry
5. Solano looking to trim
6. A crash course on how global economics works for the G-20
7. California must lead way, education chief urges
8. Spinning flywheels said to make greener energy
9. The Gang of Six -- finally -- has a bill
10. $30 billion home loan time bomb set for 2010
11. Governor's prison plan seeks more time to reduce inmate population
12. Bay Area may soon lead nation in carpool lanes open to solo drivers for a fee
13. City says interchange work will cause delays
14. Water reform package is worth saving
15. Campaign-giving restriction is nullified
16. Stalled water measures spur veto threat
17. So many bills, so little time for Schwarzenegger
18. Taming the California beast
19. New nature center at Lake Solano park seeks volunteer aid
20. Cost Concerns Propelled U.S. Missile Pivot
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Mike Reagan
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THE ECONOMY AND JOBS
Fed policymakers likely to maintain aid programs
http://www.google.com/hostednews/ap/article/ALeqM5g_S5cSA_kwYiaPl9e-FmlENxHSxwD9AR5U6O0
With the economy starting to rebound but still fragile, Federal Reserve policymakers this week are expected to keep emergency programs to encourage spending and borrowing intact. But to avoid unleashing inflation later on, they are likely to consider ways to rein in programs designed to keep mortgage rates down and get banks to lend more freely. As the economy improves, the Fed will face more pressure to wind down some of its programs. For now, Fed Chairman Ben Bernanke and his colleagues probably will stay the course while striking a more optimistic tone at a two-day meeting that ends Wednesday.. Fed policymakers are all but sure to keep interest rates at a record low near zero to nurture a tentative recovery. And they will probably stick with their goal of buying $1.45 trillion in mortgage-backed securities and debt issued by Fannie Mae and Freddie Mac by year's end.. The real estate industry, which led the country into its worst recession since the 1930s, is starting to heal.. Still, the housing market is being propped up by the Fed's programs, and its health remains precarious.. The Fed's efforts have helped lower mortgage rates. Rates on 30-year loans dipped to 5.04 percent, Freddie Mac reported last week.. Bernanke recently declared the recession "very likely over." Factory activity is growing. Consumer spending and home sales are stabilizing, and car-buying got a lift from the Cash for Clunkers rebate program. Some residential construction is picking up. But Bernanke warned that the pace of economic growth probably won't be strong enough to generate many new jobs and prevent the unemployment rate from rising. The rate hit a 26-year high of 9.7 percent in August and is expected to top 10 percent this year. Inflation, meanwhile, is likely to remain tame for now. The weak job market means employers won't feel generous with wages. Idle plants also will help limit inflation. Even with a pickup in production, factories are operating well below capacity. In light of consumer caution and expectations for a lethargic recovery, companies won't be likely to raise prices.
Markets gave Fed what it needed
http://www.latimes.com/business/la-fi-petruno19-2009sep19,0,2112065.column?track=rss
The Federal Reserve needed a rebound in financial markets this year to set the table for a lasting economic recovery. Mission accomplished -- at least with the first half of the strategy. The central bank's decision to hack short-term interest rates to near zero -- and to pump more than a trillion dollars into the financial system -- has helped fuel a global feeding frenzy for stocks, bonds, gold and other assets over the last six months.. The Dow now is up 50% from its bear-market low reached March 9. But consider what has been happening lately with municipal bonds, a market that you'd expect (and hope) would be less volatile than stocks. Since mid-August, the share price of the Vanguard California Tax-Exempt bond fund has risen 5%, nearly as much as the 5.4% gain in the Dow index in that period. Investor demand has been so consistently strong for California state and local muni bonds since early August that the Vanguard fund's share price hasn't posted a decline since Aug. 3. People are snapping up muni bonds because they're hungry for some kind of decent return on their money, with yields on money market funds and other relatively safe cash accounts so paltry thanks to the Fed's interest-rate policy. Overall, the resurgence of financial markets has restored a huge amount of the asset value lost in the calamity of last fall and winter.. The U.S. stock market alone has recouped a stunning $5 trillion of paper value since early March.. This is exactly what the Fed hoped would happen. Rising investment values can help to quickly build confidence in the idea of an economic turnaround. After all, you are far more likely to at least consider spending money if your assets are rising than if they're falling. And more spending by consumers who have the wherewithal to do so is what the economy badly needs. Rising stock prices also give corporate managers more confidence to greenlight business spending decisions.. Fed Chairman Ben S. Bernanke has needed markets to play along because the banking system isn't yet responding the way policymakers had hoped. The massive sums the Fed has made available to banks through its various lending programs aren't translating into vigorous new lending to the real economy. One measure of that: Total commercial and industrial loans on banks' books have declined from $1.56 trillion at the end of March to $1.43 trillion as of Sept. 9, the latest data available.. With overall lending down, banks have to find something else to do with their money. Not surprisingly, some have been happy to sink cash into Treasury bonds, government agency debt and other securities -- helping to underpin the rebound in financial markets.. Wall Street hasn't suffered even a 10% dip in key market indexes since the rally began in March. The longer stocks go without a pullback, the greater the fear that when a sell-off finally hits it could snowball into something severe. And with the economy just beginning to climb out of recession, the last thing the Fed needs is for markets to take another huge tumble.. Of course, this puts more pressure on the Fed to keep saying what it thinks investors want to hear -- which plays right into the hands of critics who say the central bank is just facilitating another round of asset bubbles..
TAXES AND SPENDING
The Bailout Bill Comes Due, Vexing Agencies
http://www.nytimes.com/2009/09/19/business/economy/19bailout.html?_r=1&ref=business
A year ago, as the financial system was threatening to collapse, federal regulators offered all sorts of assistance to ward off catastrophe. The strategy worked, at least so far, but the bill is starting to come due. The Federal Housing Administration, which is supporting the housing market by insuring loans for millions of struggling buyers, said Friday that its cash reserves had fallen below 2 percent for the first time. Raising its insurance premiums would replenish the reserves, but could also hamper the housing recovery. Another unpleasant option: asking for a federal bailout. The Federal Deposit Insurance Corporation, meanwhile, is running out of money to pay back the depositors of failed banks. Its chairwoman said Friday the agency might for the first time decide to borrow from the Treasury. Taken together, the two developments indicate "the limits of the government's ability to make all the bad stuff go away,".. Now the subprime lenders are gone, and traditional banks are so reluctant to issue mortgages they demand large down payments. But the F.H.A., which works with thousands of lenders to guarantee repayment of mortgages loans, only requires a down payment of 3.5 percent. The agency's share of the loan market has risen rapidly, to more than 20 percent. Some of those borrowers are losing their jobs and, as a result, their houses. The default rate on F.H.A. loans is rising. About 14.4 percent of the agency's loans in the second quarter were at least one payment past due but short of foreclosure. That is twice the delinquency rate for top-quality or prime loans, at 6.4 percent. The F.H.A. has become the government equivalent of Countrywide Financial, the hyper-aggressive private lender that crashed two years ago.. "If you lend money to people with a low probability of paying you back, you shouldn't be surprised if they don't,".. At the F.D.I.C., the insurance fund fell to $10.4 billion at the end of the second quarter, the lowest level since the savings and loan crisis of the early 1990s. More than 90 banks have failed this year.. Among the options for the F.D.I.C. to replenish its fund are levying a special fee on banks, tapping the Treasury or issuing its own debt.. Those losses are likely to keep rising into the indefinite future.. "Government life support is crucial, but the patient has an open artery and each new transfusion of blood is just running out onto the floor,"..
Proposed state tax would be paid by businesses in every industry
http://www.venturacountystar.com/news/2009/sep/20/proposed-state-tax-would-be-paid-by-businesses/?partner=RSS
Sometime this week, Gerald Parsky, chairman of a commission tasked with proposing top-to-bottom changes in California's tax structure, will present the panel's final report to Gov. Arnold Schwarzenegger and legislative leaders. The centerpiece of the plan will be a tax that few people in California have ever heard of, is virtually untested in the world, is disliked by business and labor interests alike and one that even commissioners acknowledge has not yet been fully vetted. It is called a business net receipts tax. It would be paid by businesses in every industry. Businesses would subtract from their gross receipts the costs they pay to other businesses for the purchase of materials and services, then pay a tax of about 4 percent on the difference. They could not subtract the key expenses of payroll or interest payments. Very small businesses would be exempt, because the requirement to pay the tax would not be triggered until a business reached $500,000 in annual gross receipts. The commission envisions that over time the revenue produced by the BNRT would allow California to eliminate its corporate income tax, do away with the state sales tax and dramatically reduce personal income taxes.. The chief selling point of the BNRT is that it would provide a way to levy a consumption tax - everyone agrees that businesses would largely pass along the tax to consumers - on products other than just the tangible goods that are now subject to sales taxes. Schwarzenegger and legislative leaders clearly hoped the panel, called the Commission on the 21st Century Economy, would devise a way to broaden the base of consumption taxes as a way to reduce the volatility of a California tax system that is extraordinarily dependent on income taxes. The original hope was the commission would produce a report that could be put to an up-or-down vote in the Legislature, but commissioners acknowledge their recommendations are not yet refined enough for that. Schwarzenegger has said he will call a special session of the Legislature to deal with the ideas submitted by the commission. He has been strongly advocating for changes that would reduce the volatility of the state's existing tax system in the hope of ending the roller-coaster cycle of booms and busts experienced by state government. The BNRT would achieve the goal of producing new revenues in order to allow a shift away from the more volatile income tax.. The California proposal is modeled largely on a similar tax enacted in Michigan in 2007, although the rate of the Michigan tax, 0.8 percent, is just a sliver of the 4.2 percent rate mentioned by the commission. Shaw of the Federation of Independent Businesses said he talked with affiliates in Michigan and also in Ohio and Texas, which have somewhat similar laws. "Nobody has a positive impression," he said..
Solano looking to trim
http://www.thereporter.com/news/ci_13380621?source=yahooNewsML
The effort to slash county spending in the wake of a still slumping economy and endless state funding cutbacks continues Tuesday when the Board of Supervisors will consider eliminating dozens of jobs and take the first step toward possible furloughs. County leaders earlier this month delayed eliminating 23 county jobs so that officials could sit down with an employees union to discuss other ways to trim the budget. Solano County is looking at a deficit of $7 million to $12 million by the end of the fiscal year if cuts aren't made, officials have said. The talks apparently proved fruitless as the matter is back on the agenda for the board when it meets Tuesday.. The board will consider approving a resolution amending the county's Position Allocation List by eliminating 23.6 full-time equivalent positions including 5 in the District Attorney's office, 12 in Health and Social Services, 5.6 in Library Services and 1 in the Sheriff's Office. In addition, the board will be asked to continue a hiring freeze and delete allocations for jobs that have been vacant for six months. Even with the proposed job cuts, and previous budget slashing, the board will also be asked to make the first move toward establishing regular monthly furloughs.. Unlike the state, where the courts ruled that Gov. Arnold Schwarzenegger could unilaterally impose furloughs on staff, any such program affecting unrepresented employees would not occur until furlough language was agreed to by all represented employee bargaining units, staff notes in a report to the board. The savings that could be realized by closing county facilities one day per month would amount to some 4.8 percent of payroll costs.. Some exceptions would be included in any furloughs including specified law enforcement and other services that normally operate 24 hours and holidays. Supervisor Mike Reagan on Friday said he believes furloughs are necessary to avoid "further cuts" in the future. "The budget has a certain amount of operating cash. We have a balanced budget but it is balanced by consumption of an extraordinary amount of those available funds," he said. "We are using reserves, which is what they are for, but we have also been drawing down on that operational fund balance at an incredible rate." Reagan said with no foreseeable turnaround in government revenues, the board must do what it can now in order to avoid deeper, more painful cuts later.
BUSINESS AND LABOR
A crash course on how global economics works for the G-20
http://www.chinapost.com.tw/commentary/the-china-post/special-to-the-china-post/2009/09/20/225394/A-crash.htm
G-20 leaders are convening in Pittsburgh this week during a sticky time for global trade relations. Brazilians, Canadians, Mexicans, and Chinese are angry with the Americans. The Indians and the Chinese are furious with each other, as are the Europeans and the Americans. Most of this stems from new trade restrictions imposed despite repeated pledges from G-20 countries to avoid protectionism. To quell the anger and gain a constructive focus in Pittsburgh, leaders must recognize how outdated it is to view the world as "Us" versus "Them." A crash course on the global economy is in order. The largest "American" steel producer is the majority-Indian-owned Arcelor-Mittal, with headquarters in Luxembourg and Hong Kong, and listed on the New York Stock Exchange and five European stock exchanges.. California's steel industry consists almost entirely of rolling mill operations, which process imported carbon steel slabs from Brazil, Russia and other countries. The Californian finished products are disqualified from President Obama's Buy American procurement rules for failing to meet the statutory definition of American-made steel. This illustrates the impossibility, futility and harm of attempting to define producers by national characteristics. Today, the factory floor is no longer contained within four walls, one roof and national borders. Instead, the factory floor spans the globe, allowing firms to optimize investment and output decisions by matching production, assembly and other functions to the locations best suited for those activities.. Apple's ubiquitous iPods are designed in labs in California then assembled in China drawing on labor and components from South Korea, Taiwan, Singapore and Japan. This is true not only for Big Business but many of the goods now considered essential to our daily lives - from roses to screws to coffee. Trade policies over the past 25 years have generally accommodated this new reality. According to the World Bank, between 1983 and 2003 only three countries (out of 136) increased overall trade restriction, while developing countries were some of the biggest reformers, having reduced their weighted average tariffs by 21 percentage points (from 29.9 to 9.3 per cent).. Trade has also benefited from huge improvements in transport and communications. These gains are often discussed in terms of their impact on producers but the consumer is by far the biggest winner, getting a more consistent supply and better choice of cheaper, better products. This global factory has changed the old "Us versus Them" characterization of international trade for good - and for the good. Trade is increasingly the process of importing a good, adding value to it, and then exporting it to another producer further down the production chain. These complicated production and supply chains rely upon the rapid flow of goods and services across borders. The current economic crisis, however, has tested our leaders' commitment to these reforms. Political leaders condemned protectionism at the G-20 meeting in November 2008 and then again in April 2009. They returned home to yield to vested interests, imposing anti-trade measures that add complexity, cost and delay to internationalized production and supply chains. Such an approach made no sense when times were good. It is especially wrong-headed when times are tough. Banning containerised shipping (perhaps the most important technique in 20th century trade) or broadband Internet connections (which have paved the way for millions of call-center jobs) would clearly be ridiculed. Yet it is equally ludicrous for governments to promote "temporary" tariffs to shelter "domestic" industries, or subsidies for "local" producers, or "environmental" regulations that hobble foreign competitors.. The only real stimulus the global economy needs is to continue the reforms that have guided the past thirty years of unprecedented global expansion: reduce trade barriers and remove the regulations and administrative burdens that prevent people from maximizing their potential in the global economy.
EDUCATION
California must lead way, education chief urges
http://www.sacbee.com/325/story/2193424.html
U.S. Secretary of Education Arne Duncan visited Sacramento earlier this month to challenge local officials, union members, nonprofits and legislators to make California a leader in the Obama administration's Race to the Top initiative to turn around public schools.. California has an eighth of all the students in the country. You can't overstate how important California's success as a state is to our success as a country.. The state has about 550,000 freshmen but only about 480,000 seniors. This state is losing 70,000 of its young people every single year.. The vast majority are dropping out (of school). And when they drop out, there are no good jobs out there. California has to lead the country to make that dropout rate as low as possible. California has to lead the way in increasing the graduation rate as quickly as we can.. On the principles behind reform: High standards matter. California's had high standards. Good assessments matter. Great teaching, great principals matter. Talent matters tremendously in education.. Good data matters. Understanding which teachers make a difference in students' lives. Understanding which schools of education are producing the teachers that are producing the students who are learning the most.. what are we doing to turn around chronically underperforming schools? Today, America has about 5,000 schools that continue to underperform year after year. Two thousand high schools produce half of the dropouts in the country. Their kids are years behind grade. And this is true not just for one or two years, for five years or 10 years but for 20 or 30 years. Decades. If we were to take - we have about 100,000 schools in our country - if we were to take the bottom 1 percent each year, the bottom thousand, and year after year turn them around, over the next four or five or six years, we could basically eliminate those dropout factories from our nation..
ENERGY AND UTILITIES
Spinning flywheels said to make greener energy
http://www.google.com/hostednews/ap/article/ALeqM5htKRq6T8S1OlPy7NlZDRPDVAb9-wD9AR87EG1
Spinning flywheels have been used for centuries for jobs from making pottery to running steam engines. Now the ancient tool has been given a new job by a Massachusetts company: smooth out the electricity flow, and do it fast and clean. Beacon Power's flywheels - each weighing one ton, levitating in a sealed chamber and spinning up to 16,000 times per minute - will make the electric grid more efficient and green, the company says. It's being given a chance to prove it: the U.S. Department of Energy has granted Beacon a $43 million conditional loan guarantee to construct a 20-megawatt flywheel plant in upstate New York.. Beacon's flywheel plant will act as a short-term energy storage system for New York's electrical distribution system, sucking excess energy off the grid when supply is high, storing it in the flywheels' spinning cores, then returning it when demand surges. The buffer protects against swings in electrical power frequency, which, in the worst cases, cause blackouts. Such frequency regulation makes up just 1 percent of the total U.S. electricity market, but that's equal to more than $1 billion annually in revenues. The job is done now mainly by fossil-fuel powered generators that Rogers said are one-tenth the speed of flywheels and create double the carbon emissions.. Flywheels also figure into the emerging renewable energy market, where intermittent energy sources such as wind and solar provide power at wildly varying intensities, depending on how long the breeze blows and sun shines. That increases the need for the faster frequency buffering.. The basics of Beacon's flywheels seem simple enough as they spin silently in their chambers in a small facility outside Beacon's Tyngsborough plant. But the technological challenges to create them were immense and have cost Beacon $180 million, so far. For instance, the one-ton flywheel had to be durable enough to spin smoothly at exceptionally high speeds. To avoid losing stored energy to friction, the flywheel levitates between magnets in a vacuum chamber.. Flywheels have some clear benefits in energy storage, including the durability to store and release power hundreds of thousands of times over a long, 20-year life.. Chemical batteries being developed for the same job wear out after a couple thousand charge-and-discharge cycles. Flywheels use less energy than fossil-fuel powered generators because they adjust more quickly to the ever-shifting demands of the electric grid by simply slowing down or spinning faster, Makarov said. Fossil-fuel generators are slower and less efficient as they constantly fire up and down. The disadvantage of flywheels, Makarov said, is that they can only store a limited amount of energy for a limited amount of time. That can shut them out of numerous other services the grid demands - and that other storage technologies can perform - such as long-term power storage..
HEALTH AND HUMAN SERVICES
The Gang of Six -- finally -- has a bill
http://www.dailyrepublic.com/story.php?id=611.0
The best thing about Senate Finance Committee Chairman Max Baucus' health-care bill, the result of months of agonizing deliberations by the so-called 'Gang of Six' senators, is that it may actually be affordable. The measure meets President Obama's demand that health-care reform not add one dime to the deficit. Ten-year projections are notoriously shaky, but the Baucus bill might actually reduce the deficit. The Congressional Budget Office scored its cost at $774 billion over 10 years, trimming the federal deficit by $49 billion during that period and, according to the deficit hawks at the Committee for a Responsible Federal Budget, generating 'significant savings' in the second 10-year period. The measure would require that everyone have health insurance, fining individuals up to $950 and families up to $3,800 who do not. Businesses with more than 50 employees must offer coverage or pay a fine. Small businesses would get tax credits of up to 50 percent on their contributions to employee coverage. There is no 'public option,' an omission sure to rile many House Democrats. Insurers would be required to offer coverage to all who want it without regard to pre-existing conditions. The poor would be covered by expanded Medicaid. Tax credits for individuals and families earning less that 400 percent of the poverty level would cap insurance premiums at 13 percent of income. The plan would be paid for by fees on health insurers, medical-device manufacturers and drug companies and a 35 percent excise tax on so-called 'gold-plated' health-insurance plans, those worth more than $21,000 per family. This would raise $215 billion over 10 years, but has already drawn strong union opposition.. For all the criticism Baucus has taken for the grindingly slow proceedings of the Gang of Six, of the five such bills in Congress, his may have the best chance of passage. It is, if the CBO is right, affordable.
HOUSING AND "SMART GROWTH"
$30 billion home loan time bomb set for 2010
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/09/20/MNOR19N2B1.DTL&type=newsbayarea#ixzz0RfiUBMxU
Thousands of Bay Area homes have a ticking time bomb embedded in their mortgage. The homes were purchased with loans known as option ARMs, short for adjustable rate mortgages. Next year, many option ARM payments will begin to readjust, slamming borrowers with dramatically higher monthly mortgage bills. Analysts say that could unleash the next big wave of foreclosures - and home-loan data show that the risky loans were heavily used in the Bay Area. From 2004 to 2008, "one in five people who took out a mortgage loan (for both purchases and refinancing) in the San Francisco metropolitan region (San Francisco, Alameda, Contra Costa, Marin and San Mateo counties) got an option ARM.. more than twice the national average. "People think option ARMs (will be) a national crisis," he said. "That's not really true. It's just in higher-cost areas like California where you see their prevalence." Of the 10 metro areas nationwide with the most option ARMs, three are in the Bay Area.. Together, these areas account for the second-most option ARMs in the country, although they are still far behind the greater Los Angeles area (including Los Angeles, Riverside, San Bernardino and Orange counties).. After five years, or once the loan balance reaches a certain threshold above the original balance, the mortgages "recast" and borrowers must make full principal and interest payments spread over the loan's remaining life. Fitch said that new payments average 63 percent higher than the minimum payments, but could be more than double in some cases. "When option ARMs recast, the payment shock is much more intense than we've seen (with other types of loans, such as subprime),".. Unlike subprime loans, which were more commonly used for entry-level homes, option ARMs started out with high balances. In the five-county San Francisco area, option ARMs average about $584,000 and were used to buy homes averaging $823,000, according to an analysis of First American data. That means they'll spawn foreclosures among upper-end homes..From 2004 to 2008, almost one-fifth of all mortgages, for both home purchases and refinancing, in the San Francisco and San Jose metro areas were option ARMs - more than double the national average. Option ARMs were even more common in the suburban counties of Sonoma (25% of home loans) and Solano (28%). Though most option ARMs have not yet recast and hit borrowers with higher payments, they are going into default at extremely high rates.. (Vallejo-Fairfield (Solano County). % of 2004-08 option ARMs that are 60-plus days delinquent or in foreclosure.. 36.91%)
PUBLIC SAFETY
Governor's prison plan seeks more time to reduce inmate population
http://www.latimes.com/news/local/la-me-prisons19-2009sep19,0,6905425.story?track=rss
Gov. Arnold Schwarzenegger on Friday evening gave federal judges a road map to reducing state prison overcrowding. But the proposal would take more than twice as long as the judges ordered to make the improvements they demanded and would fall short if state lawmakers did not approve certain provisions, administration officials said. The plan appears to set up a confrontation between the governor and the judges, who made their impatience clear in ordering the state to forge a plan to reduce the number of inmates by 40,000 within two years. Schwarzenegger's plan would take five years -- if lawmakers sign off on it. Under a second scenario, if lawmakers balk at more prison changes than they reluctantly approved last week on the final day of the legislative session, the state would retain nearly 23,000 more inmates after two years than the judges have said is reasonable. There was no indication Friday that legislators were more inclined to approve the proposals the governor included than they were when they dismissed some of the same ideas in recent weeks.. The governor's proposal avoids anything that could be portrayed as a mass release of criminals or that would leave him on a ledge without lawmakers' support. A combination of prison construction and a variety of generally modest steps to reduce inmate numbers, it is limited to maneuvers for which he already has authority or might receive it. If the judges find that the state's proposal violates the order they issued Aug. 4, they could hold officials in contempt. The judges could also ask inmates' attorneys to present their own plan to reduce overcrowding and order the state to implement it.. The elements of Schwarzenegger's proposal that would not require further legislation would create about 18,000 new prison beds over six years. They would reduce the number of inmates by allowing them to earn more time off their sentences if they completed rehabilitation programs; by reducing post-prison supervision to prevent offenders from returning to prison on parole violations; by sending more inmates out of state; and by attempting to turn some undocumented immigrant felons over to federal custody. The Legislature approved some of these measures last week; the rest the governor can do on his own authority..
TRANSPORTATION
Bay Area may soon lead nation in carpool lanes open to solo drivers for a fee
http://www.mercurynews.com/ci_13358917?source=rss&nclick_check=1
The Bay Area may soon have more solo drivers whipping down the carpool lane than any other place in the country - and not because of an outbreak of lawlessness. Instead, they'll be buying their way into these lanes, paying a toll that will range from a few cents to as much as $10. By late next year or early 2011, single-occupant vehicles will be allowed to use carpool lanes on some of the Bay Area's most congested routes: southbound Interstate 680 from the Sunol Grade to Milpitas, eastbound I-580 in the Livermore Valley, and even at the ramps linking Highway 237 and I-880. Carpool rules will be in place 24 hours a day, seven days a week on those freeway routes, and not just during commute hours - a major change sure to shock those who love to use the far left lane on weekends or during off-peak hours. Drivers will enter and exit the so-called "express lanes" only in specially marked locations, instead of enjoying the unlimited access they now have. But that's just the beginning. In a few more years, work will begin to create express lanes on Highways 85 and 101 in the South Bay. The cash they generate could help pay for a second carpool lane on 101 from Morgan Hill to as far north as Redwood City - the first double carpool lane in the Bay Area, though they are common in Southern California.. Tolls will vary by time of day and level of congestion. It could be free at 2 a.m. on a weekend, as little as 25 cents at 10 p.m. and as much as $10 during rush hour. The cost will be recorded by FasTrak transponders in commuters' cars and equipment hanging over the freeway on poles. Drivers will get a billing statement in the mail, and the fee will be deducted from a prepaid account. No tollbooths will be needed. Eventually, almost all of the 450 miles of carpool lanes in the nine Bay Area counties that now exist or will soon be under construction will undergo these changes, with 350 additional miles of new carpool/toll lanes added later. Interstates 80, 280 and 880, and Highways 84, 87 and 237 are all on the list.. If money is left over after paying for tolling facilities, CHP enforcement and maintenance, local officials hope fees from solo drivers could pay for more carpool lanes, improve transit service and even help cover the cost of extending BART..
City says interchange work will cause delays
http://www.thereporter.com/news/ci_13376589
Motorists traveling along Interstate 80 in Fairfield will experience freeway closures in coming weeks as part of the steps needed to complete the North Texas Street/I-80 Interchange Project. Finishing the North Texas Street/Manuel Campos Parkway Overcrossing bridge will involve temporary nighttime closures Sundays through Thursdays for approximately three weeks, beginning Sept. 27. The closures will occur late at night, when traffic volume is lowest, and will enable construction crews to remove portions of the old North Texas Street overpass and install concrete girders to support the new deck..
WATER AND THE ENVIRONMENT
Water reform package is worth saving
http://www.sacbee.com/opinion/story/2193442.html
Gov. Arnold Schwarzenegger and state lawmakers came very close earlier this month to a historic pact aimed at restoring the Sacramento-San Joaquin Delta and ensuring the future of California's water supply. They should get back to work and close that deal. The package that died at the end of the legislative session was like a glass half full. It was missing some crucial elixers - the result of some hasty, last-minute bartending. But now there is time to finish the job and give the proposals the public vetting they deserve.. This package included some attractive elements, including provisions for conservation and groundwater management. The bills would set a statewide goal of reducing water consumption by 20 percent by 2020, and they would expand the state's role in monitoring the overdrafting of groundwater. The package includes proposals for governing the Delta that improve on the status quo. But certain parts of the state could potentially be harmed by decisions made by this new governing board. They need assurance that they will have reasonable representation on that panel. Under the legislation that died, a proposed Delta Stewardship Council with wide power over the region's future would include just one member from the area. That's not enough. We like the proposals for a Delta Conservancy to watch over the environment, a science board to ensure that the Stewardship Council's decisions are based on facts, and a single water master to focus decision-making and accountability for the movement of water through the Delta. The legislation also would require the State Water Board to study how much water is needed for fish and wildlife in the Delta.. one of several agencies with authority to issue or deny permits for a proposed canal to move water around or through the Delta to the south. One condition of those permits would be that sufficient water remains in the Delta to preserve and enhance its habitat. That's a good idea, so long as water sufficient to protect upstream tributaries. is part of the deal. The financing plan is the weakest link in the package. The governor and Republicans in the Legislature have, oddly enough, pushed for more than $10 billion in general obligation bonds to finance Delta protections and, possibly, two new dams and reservoirs. When they are all sold, these bonds would drain nearly $1 billion a year from the state's general fund. A far better way to pay for these improvements would be to assess a fee on the users of the water that is moved, stored or diverted from the Delta..
NATIONAL / STATE POLITICS
Campaign-giving restriction is nullified
http://www.washingtontimes.com/news/2009/sep/19/a-campaign-giving-restriction-is-nullified/?source=newsletter_must-read-stories-today_headlines
A federal appeals court on Friday dramatically expanded the ability of politically oriented groups such as Emily's List or the National Rifle Association to raise and spend money to help candidates get elected to federal office. The opinion, issued by a three-judge panel of the U.S. Court of Appeals in Washington, nullifies the $5,000 annual cap on individual giving to nonprofits. The Federal Election Commission enacted the rule after the 2004 presidential election that saw a flood of money from independent groups including Swift Boats Veterans for Truth and MoveOn.Org. It was the latest in a string of court rulings that are collectively unwinding the restrictions on campaign giving that have taken effect over the past two decades, most notably with the passage of the landmark McCain-Feingold legislation in 2002. "The First Amendment, as interpreted by the Supreme Court, protects the right of individual citizens to spend unlimited amounts to express their views about policy issues and candidates for public office," the court ruling said. The First Amendment also "safeguards the right of citizens to band together and pool their resources as an unincorporated group or nonprofit organization in order to express their views about policy issues and candidates for public office." Emily's List, which advocates for women candidates who support the legal right to an abortion, brought the case against the FEC. The group objected to the restrictions on "hard money" contributions for political activities..
Stalled water measures spur veto threat
http://www3.signonsandiego.com/stories/2009/sep/19/stalled-water-measures-spur-veto-threat/?uniontrib
A frustrated Gov. Arnold Schwarzenegger may threaten to veto dozens of unrelated bills if lawmakers fail to move a stalled water package to his desk in the coming days, according to those close to negotiations. But those brokering the deal privately warn that such an ultimatum could further poison negotiations already marred by distrust, making it even more challenging to meet his demand. Before leaving town for a brief recess last Saturday, the Legislature appeared to be inching toward a broad agreement on fixing the San Joaquin-Sacramento Delta, hub of the state's water supply network that extends to San Diego County. Talks had narrowed to a handful of difficult issues, including a nearly $12 billion bond measure that would have to be sold to voters skeptical of dams and debt. Oversight of ambitious programs to restore the environmentally and economically valuable delta is equally contentious.. time ran out before legislators could digest complex proposals more than 200 pages long unveiled just hours before adjournment. Lawmakers expect to be called back to Sacramento soon to reopen the water package. But those votes may not be delivered quick enough for Schwarzenegger.. By law, Schwarzenegger must act on hundreds of bills no later than Oct. 11.. Schwarzenegger has issued similar threats - and followed through - twice in the past 14 months. In August 2008, he promised vetoes if lawmakers did not send him a "responsible budget." He ended up rejecting dozens of bills. He delivered another warning Sept. 8 - and then issued a veto - specifically citing water as one of the Legislature's failures..
So many bills, so little time for Schwarzenegger
http://www.sacbee.com/politics/story/2193699.html?mi_rss=State%2520Politics
Lawmakers shut down the 2009 regular session a week ago without reaching compromise on water legislation, but they did approve hundreds of other bills in the final days. Assembly officials say 382 measures from the lower house await the governor's action, while Senate staff estimates 120 Senate bills are either on Schwarzenegger's desk or being processed. Schwarzenegger has until Oct. 11 to either sign or veto bills. Bills not acted upon become law without the governor's signature. Last fall, Schwarzenegger vetoed bills en masse because the Legislature had not approved a state budget. It remains unclear if he will take a similar route this year because of unfinished business on the water issue. Closed-door water discussions continue, and lawmakers could reconvene before Schwarzenegger's bill signing deadline. "He'll consider each bill on its merits and act accordingly," said Aaron McLear, Schwarzenegger's press secretary. "He thinks they ought to be focused on coming up with a water solution.".
Taming the California beast
http://www.latimes.com/news/opinion/la-ed-convention20-2009sep20,0,2142131.story
It's not always easy to identify the tentacles that are strangling California and keeping it from fulfilling its promise for 38 million residents. Who wrecked our public school system, which was once the envy of the world? Who ruined the nation's premier network of highways, the most ambitious and reliable water delivery system, the best state parks? Who killed the spirit of opportunity and innovation that once made California the headquarters for banks and oil companies, for makers of surfboards and electric guitars, for computers and communications? Even if we can't identify the culprit, people here intuitively know that some kind of monster has wrapped itself around the Golden State. Well over two-thirds of registered voters said recently that they would vote yes on two key ballot measures to pave the way for a constitutional convention to wrest back control of the state for Californians.. If current numbers remain strong, voters would call a convention in November 2010. The convention would take place the following year, and a constitution would go to voters for an up-or-down vote in November 2011. But once the convention is called, then what? It's easier to agree on a fix if there's agreement on who, or what, the monster is.. One tentacle belongs to public employee unions. Although Californians should reject the foolish notion that there is something intrinsically destructive about workers in public service, it is undeniable that their unions have gained enormous clout in Sacramento. They have the influence to select Democratic Party primary candidates in urban areas, and the money and foot soldiers to ensure their election. Then, at contract time, those unions sit across the table from officials they put in office -- officials who realize they are bargaining with people who have the power to end their careers.. Another tentacle belongs to big business. Less powerful, perhaps, than when the Southern Pacific ruled the state, business interests nevertheless exercise a remarkable degree of clout through lobbyists.. Add two more arms: The state Democratic Party, in alliance with labor, and the Republicans, supported by business, seem locked in an eternal contest. But they are so invested in their game that they unite in resisting any attempt to change the rules.. One more tentacle of today's monster is the very weapon used to slay the last one. The initiative process. has been co-opted by the forces it was meant to control -- the tendency of power to seek any means to perpetuate itself.. the tentacles wrapped around California also are wrapped around one another in a knot so tight it can't be untied. It has to be cut. That's where a constitutional convention comes in. Instead of removing one arm with a ballot initiative or shackling another with a regulation, a convention has the potential to remove all the arms at once. It can fail, of course, but it also might create a governance system that again puts Californians in control of their state, at least for a while -- until a new Octopus presents itself and a new generation of Californians rises to the challenge.
LOCAL POLITICS
New nature center at Lake Solano park seeks volunteer aid
http://www.thereporter.com/news/ci_13380617
Lake Solano Regional Park unveiled its new nature center in April, but what the 5,000-square-foot building doesn't have yet are volunteers to run its programs. The building houses aquariums showcasing the creatures that live in the lake, an interactive wetland exhibit, meeting space, an outdoor education area and ranger offices. This fall, Solano Resource Conservation District and Lake Solano Regional Park will offer a docent training program to start building a volunteer corps.. The program will consist of a trio of three-hour training sessions, all to be held at Lake Solano Regional Park. The sessions will cover riparian plants and ecosystems, the history of water use in the region, Native Americans' relationship with Putah Creek, and the birds and wildlife that live in and around and visit the park. Docent trainees also will receive instruction on safety and effective interpretation of natural areas. Volunteers will participate in discussions about getting the most out of limited resources and docent program planning. "These are tough economic times -- for everyone -- and the generosity of volunteers is what keeps places like Lake Solano County Park flourishing," said Marianne Butler, environmental education program manager for Solano RCD. "It took a long time to get the nature center built, but now it's here and it's beautiful, and we want the public to really use and enjoy the park." The first classes of docents will have opportunities to shape the program for years to come.. Possible docent activities include guiding nature walks, staffing the nature center, assisting with restoration activities and helping with Nature Center exhibits, depending on individual interests and aptitudes. Solano RCD will pull in local experts to provide information at each of the training sessions.. The docent program is funded through a grant to build support for outdoor education and foster appreciation for the county's natural resources from the county's Fish and Wildlife Propagation Funds. Docents will begin leading tours in the spring. Volunteers must be 18 years of age or older.
DEFENSE
Cost Concerns Propelled U.S. Missile Pivot
http://online.wsj.com/article/SB125332271138324729.html?mod=googlenews_wsj
The Obama administration's scrapping of long-range missile interceptors in Europe wasn't just about security and diplomacy, according to people close to the process: It also came down to money. "A ground-based interceptor is generally about a $70 million-per-missile asset going after a $10-$15 million [Iranian] missile.. The trade is not a good one economically. It's not a good one from a military strategy position." President Barack Obama's decision to shelve his predecessor's plans for long-range missile interceptors in Poland and an antimissile radar in the Czech Republic has divided opinion in Europe and provoked anger among U.S. conservatives. Administration officials have made the case that it will yield broad dividends diplomatically.. substituting medium-range missile interceptors.. was the culmination of studies launched in 2006 by Defense Secretary Robert Gates, then serving in the same job in the Bush administration, to look at the efficacy of two separate missile-defense tracks. The "upper-tier" track included powerful rockets in Alaska and California as well as the small battery of interceptors in Poland. The "lower tier" included ship-based Aegis missile defenses; the Terminal High Altitude Air Defense system, whose first operational deployment in Israel is set for the coming weeks; and more established Patriot missiles. At the same time, administration officials said, intelligence showed Iran was shifting from difficult-to-build, expensive intercontinental ballistic missiles to middle-range missiles aimed at the Middle East and Europe. Iran had "a construct in their mind that they're going to hold their neighbors and eventually most of Europe at risk,".. With the advent of the Obama administration, former Rep. Ellen Tauscher was appointed in March as the top State Department hand overseeing nuclear nonproliferation.. As chairman of a key House subcommittee, she had repeatedly stripped funding for the Czech and Polish sites, insisting the Pentagon prove the system actually worked. Other shifts were under way at the Pentagon. Mr. Gates has said he began to have a change of heart about his embrace of the European system as intelligence made it clearer Iran was struggling with its ICBM program. Tehran, however, was becoming an innovator in short and medium-range missile technologies.. For Mr. Obama, another consideration was his personal push toward arms control and nonproliferation.. In July, in Moscow, he and Russian President Dmitry Medvedev committed to a binding treaty by December reducing the former Cold War nuclear arsenals. Next week, Mr. Obama chairs a United Nations Security Council summit on nonproliferation and disarmament.. All of those issues require Russian cooperation, and the Russians made it clear they wanted the Eastern European antimissile system scrapped.. There was also money. The Pentagon had to start drawing up a new five-year defense plan, which lays out its plans for long-term defense spending. A decision had to be made whether to stick with about $5 billion in that new plan for the old system, or to devote half that amount to speed up deployment of the new missiles.. |
