LAUSD Payroll Failure Shows Cracks in Bureaucracy/ Pete Peterson

The scope of the LAUSD payroll debacle continues to unfold. In the unpacking, a story of an incredible bureaucracy making terrible financial decisions takes shape. The District, which employs over 95,000 people has 1,150 different pay grades contributing to an extremely complex payroll system. After paying a consulting firm $55MM to install the software programs and train LAUSD employees, the system went on to overpay some employees a total of $53MM last year while underpaying others, and leaving some completely unpaid for months at a time.

In response to the crisis, the LAUSD has paid around $700K in legal fees to sue the consulting firm (Deloitte). The question now remains, can the District and its superintendent, David Brewer, be trusted to handle over $19B in bond funds to rehabilitate old, and build new school facilities?

Link: http://www.latimes.com/news/opinion/la-oe-rutten13feb13,0,6611148.column

Nunez Supports 50/50 Path to Fill Budget Gap/ Jackie Cubas

This week, speaking at a lunch meeting of the Sacramento Press Club, Assembly Speaker Fabian Nunez announced that he could support raising revenue to help the state’s projected $14.5 billion deficit. He said that a “fair compromise” to solving the state’s budget problem would be to solve half of the money crisis with revenue increases and the other half with spending cuts. The 50-50 approach was once employed by Gov. Pete Wilson when faced with a similar budget crisis in the early 1990s.

Núñez's budget comments have come at a time when lawmakers are trying to craft a plan to solve this year's budget deficit. Legislative committees are expected to disclose a strategy this week. Nunez, a Los Angeles Democrat, added that no agreement has been reached with Republicans.

When asked how to generate new revenue, Núñez mentioned the possibility of taxing oil companies for drilling, closing a tax loophole on yacht purchases, increasing taxes on million-dollar vacation homes, and possibly creating a split tax roll that generates more revenue from businesses. Núñez also resurrected the notion of leasing or selling the state lottery to a private investor. His proposal would be a selective tax on the wealthy as he said he opposes an across-the-board tax hike.

Link: http://www.sacbee.com/111/story/708613.html

LAPD Can’t Police Itself: Audit Charges Once Again/ Haley Ayraud

On February 12, a 34-page report by the Police Commission's inspector general raises questions about the department's ability to police itself, adding to the still-unresolved problems highlighted in prior reports. The audit that was filed with the civilian Police Commission’s office, included over 60 complaints where investigators failed to fully investigate citizens' complaints against allegedly abusive officers and often omitted or altered crucial information in ways that help exonerate various LAPD officers.

Connie Rice, a civil rights attorney who has played a leading role in LAPD reform, said that such problems would persist until the LAPD stopped cycling officers into internal affairs and back into the regular force. “You cannot ask police to investigate their buddies and friends," she said. "We've got the wrong paradigm for vigorously pursuing complaints.”

Link: http://www.latimes.com/news/local/la-me-complaint12feb12,1,1264839.story

Possibility of Bond Money Being Given to Private Railroads/Megan McClendon

Schwarzenegger has proposed spending $170 million of bond money (Prop 1B) approved by voters on projects for 2 private railroads. The argument lies in the fact that voters believe the money would be allocated to improving road and traffic conditions and efficiency. The railroad claims the changes proposed would reduce cost and benefit the environment by improving efficiency while improving the flow of goods in CA. However, voters take issue with tax dollars being put solely into private companies.

Many people are arguing that private railroads should pay for their own work while voters and residents should get the benefit of the funds they approved. Also, there is some question as to motives being that railroads donated $142K in campaign contributions to Schwarzenegger’s committees and $200K to the Prop 1B campaign.

Proposals and objections to them will begin being addressed on 2-13-08 in San Francisco.

Link: http://www.latimes.com/news/local/la-merailfight11feb11,1,7893162.story?ctrack=1&cset=true

Let the Chips Fall Where They May/ Aimee Dewing

Following the robust turnout at the polls on Feb. 5th, Super Tuesday, Californians have approved a major expansion of Indian gaming for local tribes. PROPS 94, 95, 96, and 97 were each passed by 56 percent, and will allow four California tribes to expand their casinos to rival the largest in the country.

Gov. Schwarzenegger, who signed compacts with each of the four tribes on the ballot last year, said he felt “very good” about the proposition approvals. He projects the expansion of the Indian gaming industry could bring $500 million to the state, annually. While 57 tribes will now seek establishment and renegotiation of their compacts, the Morongo and Pechanga tribes can expand their casinos from 2,000 slot machines to 7,500.

Professor of Indian law at San Francisco State University, however, said he was concerned about, “the devil in the details in terms of what this means for the tribes and for the state.” And although this Golden State is no stranger to the promises of riches, as gambling now expands in California to impressive proportions, we shall see if the devil is indeed, in the details.

Link: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/07/MN55UTEED.DTL&type=politics