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POLITICAL LANDSCAPE:
Reps unsure about federal aid


Published: Last Updated Friday, July 3, 2009 10:06 PM PDT
California’s ballooning deficit — now projected to be $26 billion — is becoming a growing threat for cities, schools and public services in the nation’s largest state, but area representatives were unsure whether the federal government would be able to play a significant role in solving the problem.

While federal officials have helped bail out some of the nation’s major automakers, banks and insurance giant American International Group, congressional efforts to keep the world’s eighth largest economy from going bust have faltered.

But the federal government will likely be unwilling to offer California more cash after sending it the most stimulus money of any other state, Democratic Rep. Brad Sherman said.

And the government will not be able to take an ownership stake in California, as it has done to keep faltering private companies afloat, Sherman said.


“The state of California cannot issue preferred stock,” Sherman said. “We can’t sell shares of ourselves.”

Republican Rep. David Dreier was also opposed to the nation offering any more cash to the state, his spokeswoman, Alisa Do, said in an e-mail.

“Gov. Schwarzenegger has said repeatedly that California must get its own fiscal house in order, and that a federal bailout is not an option,” she said. “Congressman Dreier takes him at his word.”

With California receiving $85 billion in federal stimulus aid, Dreier was certain that the nation is “providing significant assistance to California to meet the challenges we face,” Do said.

The best opportunity for the federal government to help the state might be by offering to guarantee loans taken from banks, giving California more credibility when it asks for loans from financial institutions, Sherman said.

That option has been rejected by federal officials so far, but state representatives are continuing to push for the government to offer some additional help to the country’s major economic engine, Sherman said.

Guaranteeing state loans would not be a dangerous commitment from the federal government, since the state has never defaulted on a loan, Sherman said.

“I think that risk is modest and I think with all of Sacramento’s problems, Sacramento is more credit worthy that Detroit and a lot more credit worthy than AIG,” he said.

Democratic Rep. Adam Schiff agreed and vowed to continue pushing for additional federal support for California, even in light of the stimulus aid, he said in a statement.

“The consequences of letting one of the world’s largest economies go belly up would be disastrous, and I am working with the California delegation to consider legislation that might make it possible to help the state with its liquidity problems through federal loan guarantees,” he said.

Partisan divide on clean energy act

Local congressional representatives voted along the mostly partisan divide on the narrowly approved clean energy bill from the House last week, with Rep. David Dreier opposing the Democratic-sponsored measure.

Democratic Reps. Adam Schiff and Brad Sherman voted in favor of the American Clean Energy and Security Act of 2009.

Among the provisions of the bill, which must still go to the Senate for a more perilous vote, is a declining cap on greenhouse gas emissions from factories and manufacturing plants, which scientists say contribute greatly to global warming.

Under the “offset” provision, major greenhouse gas emitters would either have to get permits for their emissions or invest in greening measures, such as planting trees, to offset their carbon footprint.

The legislation would create a greenhouse gas registry, which would track the required capping of emissions — reduced annually to 97% of 2005 levels by 2012, 83% by 2020, 58% by 2030, and 17% by 2050.

The bill would also set strict energy efficiency standards for wind, solar and other renewable electricity use.

The bill faces a harder audience in the Senate, especially after House members inserted a provision that would penalize imports that fail to cut emissions in line with the Unites States. Despite White House support, the bill is expected to serve only as a blueprint for the Senate as the provisions navigate big oil and energy interests.

Antonovich introduces motion for database

Weeks after revelations in the Los Angeles Times that communication breakdowns among county agencies played a key role in deaths being investigated by child welfare officials, Los Angeles County Supervisor Michael Antonovich introduced a motion last week calling for interlinked file-sharing system for client information.

The news story chronicled several cases as far back as 1991 in which agencies failed to communicate documented instances of domestic violence, criminal convictions, mental illness and family abuse, sometimes leading to fatal consequences for those in the child welfare system.

Antonovich came out strongly against the revelations at the time, and on June 24, the county Board of Supervisors directed executives to expand the “under-utilized” Family and Children Index, and to provide additional training to public agencies using the system.

In a prepared statement, the supervisor said child welfare was “the shared responsibility of all county departments.”

“Time is of the essence and this automated system will significantly improve the county’s ability to identify, prevent and treat incidents of child abuse and neglect,” Antonovich said.

Together with Supervisor Zev Yaroslavsky, Antonovich introduced the proposal in a bid to seek legislative relief against prohibitions on data-sharing systems. Yaroslavsky had expressed concerns over privacy protections for the interlinked computer system.

County officials are expected to return within 30 days with a progress update.

— Jason Wells and Zain Shauk





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