Tom Lackey

Cap and Trade Costing CA Drivers $2 Billion Per Year

April 9, 2016 By Matt Fleming 5 Comments

As fast as California drivers will spend an extra $2 billion at the pump this year to fund the controversial cap-and-trade program, state lawmakers are finding ways to use it, according to two reports released Thursday.

Cap and trade was implemented by a state regulatory board to try to reduce greenhouse gas emissions to 1990 levels by 2020, as required by law.

One of several additional costs tacked on an estimated 11 cents to each gallon of gas and 13 cents per gallon of diesel, according to the Legislative Analyst’s Office, driving average prices to some of the highest in the nation.

“Most drivers have no idea that this is costing them $2 billion per year because it has been largely hidden from them,” said Asm. Tom Lackey, R-Palmdale. “It’s clear that we need to improve transparency for consumers about cap and trade’s costs.”

Where does the money go?

Cap-and-trade money is currently appropriated as follows: 40 percent is unallocated, 25 percent is for high-speed rail, 20 percent is for affordable housing and sustainable communities grants, 10 percent is for intercity rail capital projects and 5 percent is for low-carbon transit projects.

Waiting to spend the money are 36 pending proposals in the Legislature totaling $7.5 billion, which is more than double what was proposed in Gov. Jerry Brown’s draft budget, according to a study by the California Tax Foundation.

The most expensive proposal is SBX1 2, sponsored by Sen. Bob Huff, R-San Dimas. This bill would divert $1.9 billion annually to street and highway construction projects and block further cap-and-trade funds from going to high-speed rail.

In addition to barring further funds from going to high-speed rail (a recurring theme for Huff), the Huff bill is too vague to show whether it will reduce GHGs or not and may “leave itself open to litigation,” according to the legislative analysis.

Another bill, sponsored by Asm. Jimmy Gomez, D-Los Angeles, would fund nearly $1 billion worth of projects, including up to $100 million on new toilets. According to the report, many of the initiatives would likely reduce GHG emissions, while other parts of the bill might not.

Other bills include synchronizing traffic lights, implementing a car buyback program, promoting recycled glass and preventing forest fires. And while its unclear what effect most of the proposals would have on GHG emissions, the report was issued to help voters and legislators make that determination.

“This report identifies the auction revenue spending proposals that are active in the Legislature, so they can be given proper scrutiny,” California Tax Foundation Director Robert Gutierrez said in a statement.

Legality

Opponents of the program argue that by collecting revenue from drivers and businesses (those with large GHG emissions) it amounts to an illegal tax, which would have needed to be approved by a two-thirds legislative majority to be legal. A previous court ruling — which is now being challenged — found that the revenue is OK as a regulatory fee and thereby not subject to a two-third’s vote.

In 2006, the Legislature passed AB32, which tasked the state ARB to implement the GHG reduction. Proponents say this mandate gave the ARB the legal authority to auction off emission allowances (there’s a “cap” on emissions and business can “trade” them at auction).

In January, the non-partisan Legislative Analyst’s Office recommended lawmakers either narrowly tailor their proposals to unquestionably reduce GHGs or approve the program with a two-thirds majority to avoid legal complications.

Originally published by CalWatchdog.com

Filed Under: Top Stories Tagged With: AB32, Bob Huff, Cap and trade, Carbon Tax, environment, Jerry Brown, Jimmy Gomez, Tom Lackey

Lowest-Paid Legislators Wear Distinction As Badge of Honor

February 27, 2016 By Matt Fleming 1 Comment

Only in public office could the distinction of lowest paid be worn as a badge of honor.

But Richard Roth, a Riverside Democrat, has refused every pay increase since being elected to the state Senate in 2012, making $90,526 per year in base salary.

Most members of the California Legislature make $100,113 per year, with leadership drawing checks for as much as $115,129. In fact, Roth is the only senator currently paid below the going rate, although there are several like-minded members of the Assembly.

Roth spokesperson Shrujal Joseph told CalWatchdog that Roth believes he has an obligation to perform his duties at the pay rate voters agreed to when he was elected.

“If fortunate enough to be re-elected, Senator Roth will accept the pay that is in effect then, whether it be higher or lower,” said Joseph.

Members of the Assembly

Fullerton Republican Young Kim is the lowest paid member of the Assembly, earning $95,291 annually. Like Roth, she’s refused every pay increase since being elected in 2014 — including one that passed right before she was elected but came into effect afterwards.

Six other members of the Assembly refused one pay increase, earning $97,197. Four are Republicans: Catharine Baker of San Ramon, Shannon Grove of Bakersfield, David Hadley of Torrance and Tom Lackey of Palmdale. Two are Democrats: Ken Cooley of Rancho Cordova and Jacqui Irwin of Thousand Oaks.

California Citizens Compensation Commission

Pay for legislators, and constitutional officers like governor and attorney general, is determined annually by the California Citizens Compensation Commission, which will meet again on April 27. The CCCC also determines benefits.

The CCCC is a seven-member panel, appointed by the governor, which is supposed to represent different segments of the community and different areas of expertise, including one member with expertise in compensation (like an economist); one representing the general public (like a homemaker/retiree/person of median income); one representing the nonprofit world; one who is an executive at a large CA employer; one who represents small business; and two labor representatives.

According to Tom Dalzell, the CCCC chairman, it’s unclear if another raise will be in order as he hasn’t “begun to think about it,” but noted the sacrifice many legislators make by leaving lucrative careers for public office. And in general, pay is considered one of the biggest lures of top talent.

Dalzell, who is a business manager for the International Brotherhood of Electrical Workers Local 1245 and occupies one of the CCCC’s labor seats, said that in determining whether to increase, freeze or reduce pay, the CCCC considers the state budget, the consumer price index and survey data on local elected officials.

Pay Scale History

California has the highest paid state legislators in the country, according to the National Conference of State Legislators. They are also paid well above the state’s median income of around $61,084.

On the whole, base salary for legislators has increased since 2005. To be more precise, legislators have received six increases, three freezes and two reductions since 2005. To be even more precise, base salary went from $99,000 in 2005 to the $100,113 base salary it is today — after salaries had been frozen between 1999 to 2005.

The two reductions were largely orchestrated by the former chairman Charles Murray, a holdover appointee from the Schwarzenegger administration. Murray stepped down almost a year ago to the day.

The six increases: 2005 – 12 percent increase; 2006 – 2 percent increase; 2007 – 2.75 percent increase; 2013 – 5 percent increase; 2014 – 2 percent increase; 2015 – 3 percent increase.

The two decreases: 2009 – 18 percent reduction; 2012 – 5 percent reduction.

And the three freezes were in 2008, 2010 and 2011.

As readers can probably imagine, the decreases were unpopular in Sacramento. In fact, one former legislator fought a cut — the 18 percent reduction in 2009 that slashed salaries from $116,208 to $95,291 — by appealing to both Brown and the California Victim Compensation and Government Claims Board.

Neither appeal was successful.

This piece was originally published by CalWatchdog.com

Filed Under: Top Stories Tagged With: Assembly, Catharine Baker, David Hadley, Jacqui Irwin, Ken Cooley, Legislature, Richard Roth, senate, Shannon Grove, Tom Lackey, Young Kim

Legislative Report Card: Who Passes; Who Fails On Taxes?

November 6, 2015 By Jon Coupal Leave a Comment

Photo courtesy Franco Folini, flickr

Like inattentive students who dread having their parents see their unsatisfactory grades, most members of the California Legislature would just as soon not have their constituents see the Howard Jarvis Taxpayers Association Legislative Report Card documenting their votes on issues important to taxpayers.

Of the 120 members of the Legislature, 73 received a grade of “F” while only 36 earned an “A” grade.

The Report Card is a non-partisan tool for citizen taxpayers to hold legislators accountable based on actual legislative votes. It was Will Rogers who said, “If you ever injected truth into politics you have no politics.” While a satirist is allowed to paint with a broad brush, there is still more than a grain of truth here. Many in the political class dishonestly attempt to present themselves as standing for the interests of average folks. They pay lip service to low and moderate income Californians, while voting to make getting to work more expensive by increasing the already tops in the nation gasoline tax. They claim to be supporters of homeownership, but support measures that would increase the tax burden on property owners.

In the legislative session that ended last month, Governor Brown signed 808 bills. These bills create thousands of pages of new laws, spanning across dozens of code sections. The HJTA Legislative Report Card pulls the curtain back and identifies for taxpayers legislation that harms their interests, bills that otherwise do not receive much public attention. A prime example is Senate Bill 705 (Hill) a bill that was completely amended in the last month of session that allows for San Mateo and Monterey counties to pursue increased sales taxes beyond those authorized in current law.

The Report Card also rewards lawmakers who supported legislation that helps taxpayers like Assembly Bill 809 (Obernolte), an HJTA sponsored proposal that places additional information regarding tax increases in the ballot for all voters to see.

Votes on sixteen bills were used to score legislators. These reflect a range of policy issues including new tax and regulatory burdens, and attacks on the initiative process that would make it more difficult for taxpayers to have their voices heard.

With over a quarter of the members of the Legislature new to Sacramento politics, the HJTA Report Card provides an early indication as to who will be faithful to the interests of taxpayers. While grades have improved slightly over last year, it is clear that this new legislative class has started off by falling well short of taxpayer expectations.

Eight lawmakers deserve credit for a perfect score. Members of the Assembly receiving 100 percent are Frank Bigelow, Brian Jones, Beth Gaines, Tom Lackey, Chad Mayes, Jay Obernolte, and Jim Patterson. Senator Mike Morrell also received a perfect score.

To view the 2015 Legislative Report Card, and find which representatives are proud of their grades and which ones hope no one notices, please go to www.hjta.org where it can be found under “Hot Topics.” And remember, a functioning democracy depends on an informed electorate.

Jon Coupal is president of the Howard Jarvis Taxpayers Association — California’s largest grass-roots taxpayer organization dedicated to the protection of Proposition 13 and the advancement of taxpayers’ rights.

Filed Under: Top Stories Tagged With: Beth Gaines, Brian Jones, Chad Mayes, Frank Bigelow, HTJA, Jay Obernolte, Jim Patterson, Jon Coupal, Legislature, Mike Morrell, Tom Lackey