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Perspective : April/ May/ June 2008

THE MAYOR’S RACE

Prior to game three of the 1993 N.B.A. Finals, the Phoenix Suns coach made some defensive changes.  The Chicago Bulls had won the first two games (in Phoenix), and things were looking desperate.  The coach gave new defensive assignments to four of the starters, and then turned to Kevin Johnson and said "Oh, by the way Kevin, you'll be guarding Michael Jordan".  Kevin responded well, as the Suns won the next  game in double O.T.
   
 KJ could be facing even bigger challenges next year, since it's possible he could be facing a $58 million deficit, and a City Council that may remind him of dealing with Jordan, Barkley, Bird, Magic and Shaq all at the same time.  We'll know in a few months.

DUES INCREASES – EFFECTIVE JULY 1, 2008

Due to significant increases in all of the League’s operating expenses, some dues will be increasing effective July 1, 2008.  The new rates will be as follows:

• Individual - $35 to $45
• Family - $50 to $60
• Professional - $65 to $75
• Small business - $125 to $140
• Medium business - $275 to $295
• Large businesses and corporations will remain unchanged

At the end of last year the League moved to a larger, more appropriate office facility (less expensive per square foot, but a 31% increase in rent), plus assorted moving costs.  Then, just two months ago, the League’s computer crashed, causing approximately $1000 in unanticipated expenses for replacement.  In addition, the League has incurred several minor expense increases such as the upgraded newsletter 'Perspective', and a new graphic corporate image - letterhead, envelopes, business cards.  However, it is felt that the combination of these changes will significantly increase the League’s ability to attract new members.

GOVERNMENT CAN PROVIDE VISION DURING TIGHT ECONOMIC TIMES
by Assemblyman Roger Niello

As you all know by now, the State Legislature has a deep budget hole to climb out of this year.  However, because the silver lining of crisis is opportunity, the focus of this year's legislative session should be to find ways to move forward that do not cost a great deal of money, ways that were unable to gain traction in years prior because other, easier, options were on the table. 
   
 In previous columns, I have communicated to you my strong desire to repair this State's crumbling transportation system.  Our system of roads, highways, and bridges is in need of repair and is only getting worse.  This need hasn't changed with our budget situation.  By many accounts, we are a 3rd world country in terms of our infrastructure deficit, which is estimated at nearly half a trillion dollars.  While California is a great leader in many areas, in this one it is near the bottom of the pack.  This is unacceptable, and we must renew the commitment to strong, usable infrastructure that was made fifty years ago under the visionary administration of Governor Pat Brown.
    
Though our tax dollars go to support a variety of State services, the investment in California's public infrastructure enjoys a special status—it is the one service government provides that affects Californians across all age, income, and geographic divisions.  Today, I remain as firmly committed as ever in my desire to restore this most vital of government services and make it a priority.
    
This said, our budget deficit allows us to look to new, more efficient ways to forge public-private partnerships to deliver desperately needed State infrastructure.  Governor Schwarzenegger has stated that we must find creative ways to leverage our State investments to attract private sector investment.  I would agree, and fortunately, a long list of very successful national and international projects exists to guide us in these efforts.
    
Public-private partnerships combine the ingenuity, flexibility, and access to capital of the private sector with the vision of the public sector.  Governments can do certain things very well, but because it acts as a monopoly when it comes to infrastructure development and improvement, it can't drive down costs and provide services in a way that private sector entities in competition with one another are able.
    
State government should continue to set standards, establish the rules of the game, and provide vision.  Government is good at doing the initial groundwork, such as coordinating the purchase of right of ways, and ensuring the proper environmental processes are taken.  Government can lead, but leading often involves delegation.
   
 This year, I have introduced AB 2600, legislation to allow for the establishment of public private partnerships in the development of State highways and other public projects.  With limited resources available to us, and such a huge backlog of need, it is crucial that we make efficient use of the money we have available.  This includes leveraging private investment to form these partnerships.
    
As we enter into discussions over this legislation and other proposals for the innovative development of public infrastructure, the State does indeed need to take a leadership role.  But in this case, leadership can be provided in ways other than seeing the process through from beginning to end.  In this case, the old cliché about hiring good people and then getting out of their way comes to mind.  Provide the vision, set the rules and processes, then get out of the way and let the private sector do what it does best.

In reference to the proper balance of government and the private sector, Chinese government leader and the first socialist to allow free market practices, Deng Xiaoping once said: ''I do not care if it is a black or white cat, as long as it catches rats,'' in defense of his policies.
    
If there are functions that government performs well, then, government should be doing those things.  But if there are ways in which the private sector is better able to deliver services to the public, it is the imperative of government to create structures that facilitate such excellence.  Public-private partnerships are a win-win that allow government to do what it does best, while also recruiting the private sector to do what it does best.  These combined efforts mean a better product for the citizens of California, and it is that for the sake of which we serve.

Sacramento Taxpayers Association
47th Annual Dinner Reservation Form

Date:          May 22, 2008
Time:         No Host Bar, 6:00 p.m.; Dinner: 7:00 p.m.
Location:   Marriott Sacramento Hotel (Rancho Cordova) 11211 Point East Way
                   (just east of the intersection of Folsom & Sunrise Blvds.)

[ ] Please reserve _____ spaces at $55 per person, _____ spaces at $100 per couple
[ ] Please reserve a table of 8 at $350. The table sponsors will be listed in the dinner program.
[ ] Please list me/my firm as an Honor Roll Sponsor at $250, which includes a listing in the dinner program and two dinner tickets.

Enclosed is a check in the amount of $________ for my reservations.

NAME___________________________________________________________
FIRM NAME _____________________________________________________
NAMES OF GUESTS______________________________________________
TELEPHONE _____________________ E-MAIL ADDRESS _______________

MENU – indicate number:   (   ) LONDON BROIL   (   ) CHICKEN

Reservations can be made by either calling the League Office at (916) 399-5600, or by mailing both form and check to the League Office at 1620 35th Avenue, Suite K, Sacramento, CA 95822.
Thank You.

LETTERS TO THE ASSOCIATION

We seek “Letters to the League” from Members concerning projects and issues on which we are working, along with recommendations on those we should look at. Letters may be edited and republished in any format, primarily in the interest of available space. Send letters, faxes, or e-mail to the Sacramento Taxpayers Association. Our e-mail is info@sactax.org, our telephone number is 916 399-5600, and our address is:

1620 35th Ave. Suite K
Sacramento, CA 95822

EXECUTIVE DIRECTOR’S MESSAGE

The Associationis pleased to announce the 47th Annual Sacramento Taxpayers Association Dinner and Annual Meeting.  The event this year will be held on Thursday evening, May 22, at the lovely Marriott Sacramento Hotel (Rancho Cordova).  The address is 11211 Point East Drive, however the actual location is the northeast corner of the intersection of Folsom Blvd. and Sunrise Blvd. (it's the 11-story building at that site).  This year the Keynote Speaker will be the well-known Senator Tom McClintock, who will share some insights with us as to why State expenses have continued to increase at a time when some revenues are decreasing.  In addition, our own Jon Coupal will also share some insights regarding the value of, and the need for protection of, Proposition 13.  It should be a fun evening as well as a good learning experience for all.  Complete dinner information (cost, how to pay, etc.) are featured at the bottom.  Thank you.

CHEERS - To the new Twin Rivers Unified School District Superintendent Frank Porter, for raising red flags regarding financial decisions made by the Grant Joint Union High School District that will carry over into the new district’s budget on July 1.  Twin Rivers should be involved in all decisions involving financial programs that carry past June 30.

Hmmmm!  Did any groundskeepers get offered Golden Parachutes?

JEERS - To the Grant Joint Union High School District – for betting on the 'come', that
assessed values will rise to help pay off bonds and bridge financing mechanisms.

HOUSING CRISIS – FINALLY, THE ‘ANSWER’

Recently read an educated opinion on what the government (at all levels) can do to be the most helpful it can with the so called housing/mortgage crisis. DO NOTHING, DO ABSOLUTELY NOTHING!

NEXT MONTH – NO LUNCH MEETING

Because of the dinner meeting on May 22, there will be no lunch meeting at Zigatos Restaurant for the month of May.  The next Taxpayers League monthly lunch meeting will be held on June 19, 12:05 p.m., at Zigatos Restaurant (at the corner of Auburn Blvd. and Fulton Avenue).

CAL EXPO

I attended a meeting last month regarding Cal Expo's long range plans, which included discussions about the potential for a new arena at that site.  It was stated that Cal Expo needs a better revenue stream to cover existing expenses at its 350-acre site, which is extremely valuable property given its proximity to Arden Fair and the Central City.
    
The current plan will be looking at three scenarios:

1. adding a sports/recreation arena,
2. modifying or eliminating the race track,
3. upgrading the entire 350 acres, including the State Fair.  Bingham Consulting (which includes former Governor Pete Wilson) will be the project lead to study the site.

At this point, the NBA is still doing exploratory work regarding the potential of an arena at the Cal Expo site.

Bob Blymyer