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From Assemblyman Michael D. Duvall (R-72) |
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Duvall Dispatch |
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Keeping you in the loop and in the know | |
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| Vol.2 Issue 9 |
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November 2008 |
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Welcome to the Duvall Dispatch
Welcome to the Duvall Dispatch, an electronic newsletter we have implemented to keep you informed of the goings on in Sacramento and the Seventy-Second Assembly District. I invite you to share this newsletter with friends, family, and business associates. As always, your input and suggestions are greatly appreciated and will help me serve you. If you are having difficulties viewing this email, please be sure to visit my website for the latest updates from the office.
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REPUBLICANS AND DEMOCRATS MUST WORK TOGETHER FOR A BETTER CALIFORNIA
This year, health and welfare spending in the State Budget increased by six percent over last year, while every other area of state government was either facing the prospect of halted appropriations increases or cuts. Surely there is waste these areas, and surely we can find it. Surely we can save tax dollars in these areas without impacting services for dependent Californians. And surely we must save tax dollars however we can.
California is facing a massive budget deficit in Fiscal Year 2009-2010. Just a few weeks ago, we learned that the recently passed State Budget for Fiscal Year 2008-2009 – the State Budget that set the record for tardiness – is already billions of dollars in the red. The State of California is not operationally solvent. Coupled with a state and national economy that is in the dumps, we can expect to see serious problems in state government in the very near future. In recent weeks, California's unemployment rate has risen to 7.7%, the highest it has been in twelve years, while the national inflation rate is 1.4% higher than that of a year ago. Shockingly, some members of the Legislature want second helpings of this economic malaise. They want to raise taxes.
Higher taxes are not the answer. Last year, Legislative Democrats proposed a massive $9 billion tax increase, targeting the child dependent tax credit among others for elimination, while seeking to raise state income taxes – which are already the highest in the nation – on successful Californians and small business owners. On top of this, Governor Schwarzenegger proposed a massive sales tax increase. Both proposals would have severely hurt working families struggling to make ends meet. Both would have made the cost of living and doing business in California more expensive, leading to downsizing, job loss, emigration, and ultimately smaller state tax receipts.
I have heard the rumors and read the stories of a Special Session of the Legislature to deal with the state fiscal crisis. I hope for a qualitative and substantive legislative response to any call by the Governor for a Special Session. I voted against both the 2007-2008 and 2008-2009 budgets because I knew the economy would turn and the Legislature was failing to prioritize state spending. I want change to the system.
I want a change to the State Budget calendar. I want to revisit our disastrous autopilot spending increases. I want the suspension of costly new programs. I want to sell-off surplus state property, lease state land to companies for exploration, and privatize government assets. I want education funding equalization, with more local control and more local responsibility. I want to lower taxes and lure people and businesses back to California. I want our state to pursue a freedom-based economic recovery plan.
Now is the time for serious, bipartisan budget discussions. We can't wait until next January, when Governor Schwarzenegger will release next year's State Budget proposal. And we definitely can't wait until next May, when updated tax receipts show us we have a fiscal outlook that would make a banana republic blush. We need to take immediate action to inspire investment and consumer spending with targeted tax cuts, investment credits, sales tax holidays, capital gains tax cuts, regulatory holidays, and more.
If you believe, as I do, that action must be taken as soon as possible, please help me by contacting some of my fellow legislators and ask them to participate in a Special Session. Ask them for immediate reform.
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SALOON DOORS OPEN TO CHAPMAN FILM STUDENTS
I recently opened my private saloon to the students of Chapman University's Dodge College of Film and Media Arts, in Orange, who were given a rare opportunity to shoot a student film there. It was another piece to the connection I've had with the University through the course of recent years. In addition to my official role as Chapman Law School's representative in the Assembly, I also consider the university's president, Dr. James L. Doti, a good friend and one of the world's top economic analysts.
It was an honor that the Chapman students chose my saloon as a location for a film project. I've spent much of my time sprucing up the saloon over the years to make it as authentic and inviting as possible. I take a lot of pride in my little saloon, and was glad the students at Chapman got the opportunity to use it as a setting for their film.
Chapman student filmmaker Nils Taylor needed a realistic Western setting for his Graduate Thesis film entitled ''The Fighting Kind,'' a personal milestone in a life-long dream of filmmaking. The three-day, two-night shoot from September 24th through 26th took advantage of both the interior and exterior of the saloon. The location was recommended to him by his cinematographer, who had previous experience filming a wedding on the property. When Taylor, the film's director, saw the saloon, complete with a wooden façade and set against a small hillside, he knew he had found his location.
Chapman's Dodge College of Film and Media Arts continues to develop and excel in student filmmaking. Earlier this year the American Society of Cinematographers awarded the Laszlo Kovacs Heritage Award for Outstanding Cinematography on a Student Project to a pair of Dodge College graduates. ''The Fighting Kind'' is currently in post-production with a premiere screening scheduled for Friday, March 27, 2009 in Chapman's Folino Theatre. The premiere will be open to the public, and I encourage all of my constituents to go see the film and support the college.
I'm blessed to represent a handful of universities and colleges in the Seventy-Second Assembly District, Chapman being among of them. Chapman has a rich history in Southern California. I was so pleased to be a part of one of their very promising film school's recent projects
In 2000, I was honored to receive the ''Ethics in America Award'' for my work with the Yorba Linda Chamber of Commerce. I will continue to show my support for this great institution and look forward to their next accomplishments. Chapman's Dodge College of Film and Media Arts can be visited at ftv.chapman.edu.
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GOVERNOR SCHWARZENEGGER CALLS SPECIAL SESSION TO ADDRESS GROWING STATE DEFICIT
As promised, last Thursday, November 6th, Governor Schwarzenegger called for a Special Session of the California State Legislature in order to address the state's rapidly growing budget deficit. Current projections put the state about $11 billion in the red in the current fiscal year (2008-09), and another $12 billion on top of that in the upcoming year (2009-10), for a total of some $23 billion in total debt. For the time being, though, he is focusing on the current debt, or about half of the problem. I wholeheartedly agree with the Governor that immediate action is necessary. Unfortunately, his proposals to solve the deficit problem are mostly wrong.
The Governor has called for an increase in the state sales tax in order to provide the state with more revenue. However, as countless economic studies have shown, raising taxes will not necessarily bring in more revenue—people just adjust their spending habits to the new requirements. Moreover, doing this at a time when unemployment is shooting up by the day and our state's Unemployment Insurance (U.I.) Fund is approaching insolvency just doesn't make any sense at all. Fewer people are working, and the ones that are working continue to make less money…so where is this new tax revenue going to come from? Raising taxes on Californians right now is misguided and wrong, and will do nothing to shore up our gaping deficit.
However, I commend the Governor for putting forth a proposal to address the shortfall in the U.I. fund through reforms to the benefits paid out. Over the past few years, the big spenders in the State Legislature have continued to increase U.I. benefits while completely neglecting to provide a mechanism to pay for them. This shortsighted, instant-gratification approach has now come back to haunt us, and the bill for payment is due. The fund will be over $2 billion in the red at the close of this calendar year, and if not addressed soon, it will be nearly $5 billion in debt by the end of 2009. While the Governor has smartly suggested to increase the worktime eligibility requirement from 3.5 weeks to 7.5 weeks, and to slightly decrease (from 50% of total income to 45% of income) the amount of the benefit, he has also advocated increasing employers' payments into the system. In a tanking economy, employers and their businesses must be kept afloat in order to provide jobs, not be taxed to the point where they are forced to cut them. That just doesn't make any sense.
In short, I commend the urgency with which the Governor is trying to take this budgetary bull by the horns, and I stand ready and willing to help and offer solutions that will help fix the problem. Unfortunately, the Governor's opening offerings would - for the most part - do little to help, and much to hurt, hard-working Californians. Hopefully we can get beyond tax increases and budget gimmicks to some real fixes. This is what the state deserves from Sacramento.
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WORKERS' COMPENSATION FORUM 2008
On Wednesday, October 29th, I participated in the 6th Annual Worker's Compensation Forum, held in Huntington Beach. I was able to participate as a panelist and enjoyed a healthy discussion with the agents and insurers in the audience about the history, status and future of Workers' Compensation insurance in California.
For years the state's workers' compensation system escalated into crisis mode. In fact, this issue added fuel to the fire to recall former Governor Gray Davis in 2003. Governor Schwarzenegger used work comp reform as a primary issue in the recall campaign. The issue led to SB 899 (2004), authored by former State Senator Chuck Poochigian. The bill was passed to the Governor just in time to prevent private citizens from submitting their own reform measure for the ballot. SB 899 included many reforms, such as a new system for determining a worker's disability and allowing medical care to be delivered through physician networks.
At the forum we also discussed the fact that after five years of steady rate decreases, California employers may see higher premiums next year. A few months ago, the Workers' Compensation Insurance Rating Bureau (WCIRB)—the nonprofit association of all insurers licensed to provide work comp in California, which also provides objective analyses of the industry—proposed a sixteen percent increase in rates. In contrast, California's Insurance Commissioner, Steve Poizner, has recommended a five percent increase in rates. Either way, it looks as though employers' rates will be increasing in the near future, as both the WCIRB and the Insurance Commissioner claimed the increase would be necessary due to inflation in the cost of providing medical treatment to workers.
Workers' compensation affects all California businesses and workers. It is a huge issue. Ensuring that the system runs smoothly and efficiently is a vital component of shoring-up our state's economy. I was very pleased to be able to participate in this forum and am looking forward to doing so again next year.
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SEMA SHOW IN LAS VEGAS
On Wednesday, November 5th, I attended the annual Special Equipment Market Association (SEMA) show in Las Vegas. This is the third SEMA show I've attended, and, as always, I had an amazing time. SEMA is the trade association representing aftermarket vehicle components – or, as we often call them, ‘the hot rod people!' Every year the Association sponsors the show to put together all sides of the hot rod industry (retailers, consumers, investors, enthusiasts and other industry leaders) and offers educational seminars, product demonstrations, special events, and networking opportunities. The show is growing by leaps and bounds, and this year pulled in some 120,000 attendees representing over a hundred countries!
I have always enjoyed cars and motorcycles. I especially love to fix them up myself. It is a great and challenging hobby. I love the SEMA shows, and the group in general, as I believe the love and enjoyment of these machines is an indispensable American pastime.
As a result, I joined SEMA's State Automotive Enthusiast Leadership Caucus, which is a bipartisan group of state lawmakers whose common thread is a love and appreciation for automobiles. I've even encouraged many of my counterparts—on both sides of the aisle—to join the group. Now California has the largest delegation to the Caucus of any state in the country!
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ANNOUNCING TWO NEW HIRES
This month I am proud to announce the addition of two new staffers to the Seventy-Second Assembly District team. The first is Shaun Rundle, who will serve as a District Representative and media liaison in my Dstrict Ofice in Brea. Shaun graduated from CSU Sacramento with a degree in Government, and has worked the past couple of years as a Youth and Teen Program Director for the Crescenta-Canada YMCA. Shaun will be replacing Senior Field Representative Nicholas Romero, who will be leaving my office in January in response to an invitation for an officer's commission with the United States Air Force.
Also starting in my Capitol office this month is Gino Folchi, who will be serving as a Legislative Aide and Administrative Assistant. Gino comes to us from KP Public Affairs, one of the biggest public affairs firms in Sacramento. While with KP, Gino did extensive research, grassroots organizing and coalition building, community relations and legislative monitoring. Gino holds a B.A. in Government and International Politics from George Mason University in Fairfax, Virginia, and served as an intern for Congressman Wally Herger in Washington, D.C.
I am thrilled that Shaun and Gino have joined my office—please help me welcome them to Team Duvall!
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PROPOSITION 8 CONTINUES TO CAUSE A STIR
With the results of the California propositions less than a week old, thousands of protestors have already hit the streets across the state in anti-democratic opposition to Prop 8, a constitutional amendment that says marriage consists of one man and one woman in the State of California. Prop 8 passed with 52.5% support. Coupled with the results of the presidential election in California, it is clear that Prop 8 enjoyed broad, bipartisan support.
Roughly 11,000 gay couples have been ''married'' in California since the State Supreme Court overturned Prop 22. Although Prop 8 will outlaw future same sex marriages in the state, Attorney General Jerry Brown has decreed that gay couples ''married'' prior to the passage of Prop 8 will retain their legal married status. Chances are a final disposition on the matter will be brought about by the courts.
This week, cases are being brought before the State Supreme Court to rule Prop 8 unconstitutional. As a supporter of Prop 8, I will be among the state legislators committed to defending California voters' definition of marriage.
Activities of the California Supreme Court can be monitored at //courtinfo.ca.gov/courts/supreme.
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REPUBLICAN PARTICIPATION WANED IN ORANGE COUNTY IN 2008
Democrat Senator Barack Obama was elected to the presidency on November 4th by an overwhelming margin in California. Obama received 60.9% of the votes, compared to Republican Senator John McCain's 37.3%. However, in Orange County, McCain received 51% of the vote, while Senator Obama garnered 47.2%.
There was a significant drop in the participation level of Republicans in this election. In 2004, Republican turnout was at 30%, while this year it only reached 28.7%. Republican voters were literally – and perhaps figuratively – depressed in 2008.
Turnout in Orange County barely hit 56% this year. This is very disappointing when one considers that turnout in Los Angeles County reached 62.7%. Although Orange County's turnout increased from the 2006 gubernatorial election, it still lagged behind its surrounding counties and the national average.
Electoral participation in Orange County is definitely something we can hope to change in future elections.
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VETERANS DAY 2008
At the eleventh hour of the eleventh day of the eleventh month of 1918, an armistice was declared in Rethondes, France to bring a close to hostilities on the Western Front of the First World War. This day is memorialized by many names around the globe, but here, in the United States, we call it Veterans Day. This year is the 90th Anniversary of the sacred day we dedicate to all of the men and women, and their families, who have served and supported our great country in the armed forces.
Over fifty million people have served and fought in the American military and over one-and-a-half million have given their ''last full measure of devotion'' to our nation. We live in a fantastic place - the best on Earth - and we owe it all to them.
God bless and protect our brave men and women in battle around the globe. God bless our noble veterans. God bless the United States of America.
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REGIONAL CENTER AWARD
On Friday, October 24th, I had the honor of receiving the Regional Center of Orange County's Elected Official Spotlight Award. The RCOC's Twelfth Annual Spotlight Awards honors individuals and organizations in Orange County that have contributed to the enhancement of life for people with developmental disabilities.
The Regional Center of Orange County is a nonprofit organization that coordinates services to more than 15,000 Orange County residents who have developmental disabilities. It is operated by a volunteer board of directors under contract with the State of California's Department of Developmental Services. The mission of the Regional Center is to advocate, support and provide services to individuals with developmental disabilities from birth through adulthood. The Regional Center receives state and federal funding to provide services to individuals and families.
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