Friday, April 9, 2010

As California goes, so goes the nation

The title of this offering is a catch phrase that is often heard here in the Golden State. How true it is, I don’t know, but if it is at all true I want to apologize to the rest of the country for what we are about to export to the nation. A warning, if you will, to take a good look at current California politics, policies and business climate. If we are any indicator as to what is coming your way, please take heed.

California has been under a progressive and liberal controlled legislature for 40 years starting with Governor Jerry Brown (governor moonbeam to the locals) in 1970. Prior to that we had one of the best educational systems in the country, one of the best highway systems in the country and our unemployment rate was generally below the national average. We had water, fuel, housing and our Central Valley agriculture produced more of just about any commodity than any other state in the country. We were the 5th largest economy in the world.

Currently, our school system spends more money per student than any other state and produces a student that ranks 49 out of 50. Our highway system is in such a state of disrepair that it is said that a blind person can tell when crossing the border into any of our neighboring states by the change in the smoothness of the highway. Our current unemployment rate is 12.8% and shows no indication of going down. 650,000 manufacturers have left the state and our population has a net decline of a million or more. Our agricultural industry is short on water, our oil industry is all but shut down, real estate prices are in the tank, we are 8th or 9th in world economies, our bond rating is non-existent and we have a projected $20 billion rolling deficit for the next five years.

The causes are many and include a litigious society, public sector unions, teacher’s unions, fraudulent environmental science, entitlements, unfriendly business climate, legislators who believe that businesses are the deep pockets of government, government regulations and uncontrolled bureaucracies and policies. It is the last of these I wish to focus on here.

In 2006, the legislature passed two bills, one in the Senate (SB375) and one in the Assembly (AB 32). The former covers Land Use and Planning and the latter Business and Transportation. Both are unfounded mandates to local government by the state. In SB375 we learn that our future is one of walkable and sustainable communities with emphasis on public transportation and restricted areas of development through conservation easements and other planning restrictions. All of these are directed to compressing the rural population into the urban areas so that living in the country will be a thing of the past. SB375 will determine the type of living quarters you have and where it is located so that you no longer need a vehicle, thus controlling your movement about. AB32 sets up the California Air Resources Board as judge, jury and executioner with regards to business. CARB is the lead agency of AB32 and writes the regulations, requires reporting from businesses on their carbon production, verifies their reporting, enforces the regulations and sets and collects the fines. Another facet of AB32 is the control of diesel equipment used to transport people and goods, including agricultural products. Required is the upgrading of diesel engines to the tune of between $20,000 and $80,000 each. All of this is obviously passed on to the end user, the consumer.

Though these Bills were passed in 2006, their main effects to not take place until 2011 and 2012. Currently there is a ground swell of public outrage against them as the folks get wind of how this legislation will affect their lives and freedom. Organizations such as The California Association of Business, Property and Resource Owners (CABPRO) that I currently work for are as active as their budget permits in rolling back this onerous usurpation of public rights. We can only hope that we are successful. If you want further information on what is headed your way, I suggest that you go to the following web sites: www.cabpro.org, www.killcarb.org, www.suspendAB32.org, or The California Climate Solutions Act 2006.

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