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    The Willie Sutton Initiatives

    How Props 1D and 1E Are Governor Arnold’s Political Bank Heist


    Thursday, April 23, 2009
    By Jerry Roberts (Contact)
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    As every school child knows, William “Willie” Sutton (1901-1980) was one of America’s first celebrity criminals who, when asked by a nosy reporter why he robbed banks, famously answered, “Because that’s where the money is.”

    Throughout the years, the blinding common sense inherent in Sutton’s Law has been applied to professional fields well beyond armed robbery: Medical school students are taught its wisdom in learning about differential diagnosis while corporate executives adapted it to the rigors of management accounting practices. Now comes Governor Arnold Schwarzenegger and his Democratic posse, bringing the bank job formulation to bear on California politics.

    Capitol Letters

    In foisting Propositions 1D and 1E onto next month’s special election ballot, Arnold and his legislative allies seek voter permission to help balance the budget by going where the money is: raiding nearly $2 billion in future revenues from popular programs for at-risk kids and the mentally ill previously approved by popular vote. “They’re robbing Peter to pay Paul,” groused Santa Barbara County Supervisor Salud Carbajal. “It’s shortsighted and misguided action by the state — as usual.”

    If passed, Prop. 1D would siphon off about $1.4 billion statewide — about $12.6 million in Santa Barbara County — during the next five years from so-called First 5 programs that offer pre-school poor kids and their families early childhood education, healthcare, counseling, and other services. Voters created the program in 1998 by passing Proposition 10, which imposed a 50-cent tobacco tax increase for the services, largely provided by local government. Prop. 1E is a similar measure: It would take about $450 million statewide from mental health programs set up by Proposition 63 in 2004, financed by a special income tax surcharge on millionaires.

    The propositions are two of five measures in a fiscal package that Schwarzenegger and lawmakers rushed to the ballot to authorize details of a dead-of-night budget-balancing deal cut in February. To date, most media attention about the May 19 special election has focused on Prop. 1A, the governor’s signature measure to restrict future spending while also extending $16 billion of tax increases. In recent days, however, politicians and social service advocates have joined forces to mount a vocal and visible campaign against Props 1D and 1E. Today, April 23, a battalion of S.B. County officials is slated for a Courthouse news conference to oppose the two measures.

    As a political matter, the governor and legislative leaders argue that no program, even if previously approved by voters, can be inviolable from the state’s desperate need for general fund dollars. As a policy matter, however, advocates for the targeted children’s and mental health services say the programs are being punished for success. At a time when Schwarzenegger keeps braying about how the ballot measures will bring fiscal responsibility to government — by establishing reserve funds, crafting multi-year budgets, and stabilizing revenue — First 5 and the mental health programs have accomplished precisely all of those things, and with measurable positive results, to boot.

    “From the very beginning, First 5 was counseled to do multi-year budgeting,” said Sherry Novick, executive director of the First 5 Association of California. “This is a model for government.”

    The early childhood and mental health programs were targeted because each has a dedicated revenue stream — the cigarette tax and the rich folks’ surcharge — established by voters. Because these revenues are relatively stable, program executives in recent years have been able to launch long-term initiatives with the expectation there would be money to pay for them. This management style contrasts sharply with, oh say, the governor and the legislature, who lurch from budget to budget with all the solidity of a bulbous-nosed drunk on a fiscal-year binge. With Props 1D and 1E, the governor and company have declared funds committed and set aside for multi-year First 5 and mental health programs as “surplus” and are asking voters to support the money grab.

    “When you build a bridge, you have to have money to finish it,” protested Novick. “They call this a ‘surplus’ — we don’t see it that way.”

    Rusty Selix, executive director of the Mental Health Association in California and a co-author of Prop. 63, agreed with Novick that if the two special election measures pass, “the pain will be felt at the local level” largely in the form of increased caseloads for social welfare agencies resulting from cuts in preventive and diagnostic services.

    “Our job,” said Novick, speaking for the no-on-1D and -1E coalition, “is to make sure that people know what they’re voting on.”

    Related Links

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    Comments

    Discussion Guidelines

    In my opinion, the ones you should not be trusting is First 5 Commissions - run by the people who vote for budgets that direct much of the cash to their own programs!

    First 5s are sitting on over $2 BILLION dollars, funds they can use over the next 5 years while they help the rest of California get out of the budget mess.

    The claim that “babies are going to die” seems to be fear mongering. First 5s have 3-4 years of reserves. It's a total misstatement for them to say that those monies are already committed, because with one vote their commissions can direct those reserves to “save more babies” if need be.

    So, who's to be trusted? Well, IMO, it's not the First 5 Commissions, because they are the ones who are misstating the facts about how 1D would actually affect their daily work over the 5 year span of it.

    On a related note, Ms. Novick, according to IRS documents has received nearly $1 million in total compensation from First 5 counties since 2003 - money that voters thought was going to children 0 to 5. She will be cut off if Prop 1D passes from receiving any future First 5 funds for her association. Yes, people should know what they are voting for.

    Vote YES on 1D !

    Readers say: Thumbs Up: 0 of 0 • Thumbs Down: 0 of 0

    inspired (anonymous profile)
    April 23, 2009 at 8:32 a.m. (Suggest removal)

    Jerry---perhaps for your next piece you could discuss the impact on the local safety-net programs if these measures do not pass. and perhaps delve a bit more deeply into the cash cow that is otherwise known as "first five"

    Readers say: Thumbs Up: 0 of 0 • Thumbs Down: 0 of 0

    sbsleuth99 (anonymous profile)
    April 25, 2009 at 7:56 a.m. (Suggest removal)

    Once again we see Politicians do what they always do, go after the money of those least able to fight back. Children and the Mentally ill cannot organize nor are they likely to have the funds to mount a defense. Arnold has become famous for these moves among the less fortunate.

    Many on disability got a letter from Arnold telling them he was taking back their Cost of Living Increase for this yr. 40 plus dollars may not be much to most people in SB but for some it's the difference of one meal or two in a day, or means they may have to cut their medicine in half, risking their welfare and life.

    Stop the Politicians from raiding the programs Californians put in place for those in need. This is a change you can believe in ; )

    Readers say: Thumbs Up: 0 of 0 • Thumbs Down: 0 of 0

    SmileySam (anonymous profile)
    April 25, 2009 at 4:24 p.m. (Suggest removal)

    It is against the law for officials to vote on budgets that directly benefit them, which is why some people wonder why First 5 Commissioners have been doing so.

    IMO, in part they get away with it cuz there is no strong oversight by county Board of Sups and Grand Juries. In part, IMO, it has been because Prop 10 was vague.

    Prop 1D fixes this by adding the county auditor to the Commission.

    HOW BAD IS IT? Well, Riverside First 5 recently tossed out its board & restructured their First 5 into a county dept because of self dealing – see their newspaper (www.pe.com).

    According to FY 07/08 audited financial statements sent to the CA Auditor-Controllers, Riverside’s Commissioners received 77% of ALL funds directed to programs.

    To give Riverside credit, at least they – unlike other First 5’s – COMPLIED with the rules to list “Related Party Transactions”.

    When will other First 5’s comply? Having the county auditor on board will make it so!

    Vote YES on 1D!

    Readers say: Thumbs Up: 0 of 0 • Thumbs Down: 0 of 0

    inspired (anonymous profile)
    April 26, 2009 at 8:28 a.m. (Suggest removal)

    $500 MILLION+ First 5 dollars went up in smoke ?!?!?! - none of this cash went to children 0 to 5!

    It went to the Compensation and Retention Encourage Stability initiative, called “CARES”.

    According to the 06/07 San Diego First 5 Eval report (p 170), the CARES initiative “originated in response to a major child care crisis: … high (staff) turnovers rates...”.

    Amongst other things, CARES simply paid people to work BUT on p. 171 it says THEY ARE STILL LEAVING in droves - with a 22% annual turnover rate, within 5-7 years, there will be a 100%+ turn.

    a highlight: CARES paid people who already had Master's degrees up to $5,000 to stay in their jobs (from publicly accessible CARES database).

    CARES spent over $500 MILLION on this "solution" (from audited fincl statements)

    Can anyone say: POOF?

    Vote YES on 1D!

    Readers say: Thumbs Up: 0 of 0 • Thumbs Down: 0 of 0

    inspired (anonymous profile)
    April 27, 2009 at 1:08 p.m. (Suggest removal)

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