No on Proposition 7

Much to the chagrin of some of my friends, I am firmly planted against Proposition 7, the Clean Energy and Solar Initiative. While I think the expansion of Renewable energy is needed, this initiative is so poorly written that it is makes things more complicated. My philosophy with ballot measures is that if I cannot explain exactly how it will make my life better, I vote no. For example, high speed rail to Bay Area = fast trip to SF = good. I also think the proposition makes promises it cant keep.

Ill be blogging more about this, but it is interesting that everyone is against this proposition. Labor, environmentalists, solar producers, Democrats, Republicans, taxpayer associations and now the editorial pages of the LA Times and Santa Cruz Sentential.

I think the LA Times editorial points one of the main reasons I am against it.

The measure also contains confusing language that seems to exclude small renewable plants that generate less than 30 megawatts from counting toward meeting the state's clean-power goals. This is a problem because the transition to solar power is being led by businesses and homeowners, who increasingly are putting solar panels on their rooftops and selling small amounts of energy back to the utilities, while getting rebates for installing the systems. Some utilities, such as Southern California Edison, are also leasing rooftop space from corporations for large (though less than 30-megawatt) installations. If such projects don't count toward meeting the state's renewable-power goal, which would probably be the case under Proposition 7, there would no longer be any incentive for the utilities to pay for them. That's why environmental groups are rightly appalled by this initiative, which could actually slow the growth of solar power.

Anti-Union Contractor Association Blasts Its Own Member for Winning PLA Project Under Budget

I don't understand the Anti-Union Associated Builders and Contractors (ABC) Association. Apparently their rabid opposition to project labor agreements has totally blinded them. I commented on a letter to the editor that the government affairs person penned blasting an ABC member, Hensel Phelps for doing a poor job of outreach to small and local businesses on the San Joaquin County Administration Building project. This project is covered by a project labor agreement.

Out of the $92 million contract award, she complains that less than ten per cent of the contracting dollars has gone to local firms.

There are several things that make me wonder about the organization's focus.

1. Why are they beating up on their own contractors? Isn't a contractor association supposed to promote and advocate for their contractors and not smear them in the editorial pages of local newspapers.
   
2. According to San Joaquin County the engineers estimate was $109 million. The project came in at $92 million.
3. Hensel - Phelps is a non-union contractor that bids, wins and is proud of its projects that are covered by project labor agreements. Hensel Phelps is not ashamed of this project, why is the ABC?
   

Los Angeles Unified School District Extends Its Project Labor Agreement

Los Angeles Unified School District (LAUSD) is extending its project labor agreement (PLA) for five more years until 2013. The LAUSD modernization project is considered by many as the largest public works project in nation. The project so far has a budget of $20.3 billion dollars. The LA Business Journal published the original story here.

Like most good PLAs, this one includes local hiring provisions. This one is literally paying off for the community. Fifty percent of the local workforce are to be district residents. According to LAUSD "12,400 local workers on LAUSD projects have earned a total of $136.6 million in wages since July 2004."

Other highlights of the construction program include:

• 72 schools completed
• Six new schools to open in September 2008
• More than 16,500 modernization projects completed
• One Billion in state funding garnered for new school construction and modernization by Facilities Legislation, Grants and Funding since 1998
• More than 50 joint use agreements in place, with another 90 in development
• In 2007, LAUSD inducted into the Green California Schools Hall of Fame

As stated in a previous blog entry LAUSD is attempting to bundle many of the projects into a $7 billon school bond that will be on the ballot this November

Governor Finally Signs Budget

According to the San Francisco Chronicle:

Gov. Arnold Schwarzenegger signed a months-late state budget on Tuesday, allowing billions of dollars of overdue state funds to start flowing to services across the Golden State.

The $145 billion spending plan was 85 days late, a record for California, which has become accustomed to late budgets. In the past two decades, the state has passed a budget on time just four times.

Apparently one of the the biggest losers (not the tv show) is public transportation which is getting a huge cut. For example the Metro Transit Authority in LA will be cut by $89 million. It seems ironic that while the state is trying to reduce greenhouse gasses and fuel prices are soaring, they are limiting the transportation options for millions of people.

Also the governor now will begin to start signing or vetoing bills that passed the legislature. He threatened the legislature with vetoing all bills that were sent to him, if a budget was not signed first. There are approximately 900 bills that he must review. If he does not veto the bills by September 30th, they become law automatically.

Joe's Union Review

While looking for solid content on the web I came across Joe's Union Review.

It is a pretty cool blog with a lot of content, links and other progressive points. The blog covers politics, unions and workforce issues from the people's perspective. When he got back to me I could tell that he is a blogger that has a "rage for justice".

When I told him my blog was not that political as his, he shot back, "not as political,' my arse, I'd hate to be an unscrupulous contractor in your area."

I just want to say thanks and would encourage anyone that likes this blog to check his out too.

I'll be getting content from him in the near future.

California Budget Stalemate Round Up

So, you ask what is everyone saying about California's bad budget. Let me tell you in on what everyone else is saying.

The SacBee has a time line of how the budget fight went down.

The writers on SF Gate say the troubles are going to continue into next year.

The writers at the LA Times say that California's financial trauma is just getting started.

The Press Enterprise of Riverside says that the current spending plan promises new budget battles.

The SacBee talked to some mediators that compared the budget process to arms control talks between countries in NATO.

We are likely going to have a special election in 2009 regarding budget related issues.

The Dems are organizing to change the threshold requirements to pass a budget.

Lastly, Ike Skelton Says of the LA Times reports that everyone is to blame for our current mess.

Is Lending for Contractors Going to Continue to be Tough

As the world is aware the Federal government is bailing out the financial industry. It appears that while the bailout does keep the markets from going into a free fall, the benefits of the bailout are not going to provide much short term relief for those in need of credit. This includes small businesses and contractors.

The Fresno Bee ran an article about how the credit crunch is affecting small businesses. Below is an excerpt from the article.

Small-business loans

Small-business owners and entrepreneurs, once the darlings of the lending industry, are also finding a tougher time securing financing.

At the Fresno office of U.S. Small Business Administration, the number of loans backed by the federal program dropped 28% from August 2007 to August 2008. And the total dollar amount of those loans declined 16% during the same period.

Ron Truly, deputy district director of Fresno's SBA office, said that in a down economy, retailers and service businesses have a more difficult time finding money to launch their ventures.

"Lenders are looking at how they used to do business and now they are looking at how they need to do business," Truly said. "And what they find acceptable is getting a little tougher."

Businesses that appear to have escaped the tightened lending standards are those that are expanding and buying property, such as a manufacturer or even a large-scale retailer. SBA-backed loans for the purchase of real estate dipped just 6%, but the total dollar amount rose by 12%.

"These are businesses that are more established and able to weather an economic storm," Truly said.

Palin Says "Yes" to Road to Nowhere After She Says No to Bridge

So Sara Palin opposed the "Bridge to Nowhere" after she supported it, but apparently she never opposed the $26 million "Road to Nowhere". This "fiscal hawk" who is campaigning against "earmarks" seems to love to feed at the trough of taxpayer dollars. ProPublica posted a story about it.

So it turns out that when the bridge was stopped, other projects related to the bridge did not. One project is a 3.2 mile road that does not go anywhere. The road is described by the mayor as a perfect place to run a 10K, flat and no traffic. I think this quote sums up the contridiction between the rhetoric and the reality well.

Epstein, director of the nonpartisan Alaska Transportation Priorities Project, told ProPublica she handed Palin an editorial that had run the prior month in the Anchorage Daily News. The editorial, by Heritage Foundation fellow Ronald Utt, called the road a "wasteful" project with "little to no measurable benefit." It urged Palin to be "responsible and ethical" and "return the money to Washington" so it could be redirected to hurricane-ravaged Louisiana and Mississippi. Utt's piece reflected the consensus in Washington, D.C., and Alaska that no more money would be earmarked for the bridge project, which had become a symbol of pork-barrel spending.

I really feel like I am in bizzaro world. If you tell some one a lie enough, maybe you can define the truth with slogans. No Earmarks!? Whiskey Tango Foxtrot (over)