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California public pension funds take new hits on real estate investments By Dale Kasler, Sacramento Bee California's two big public pension funds took fresh hits to their troubled real estate portfolios this week, suggesting the fallout from the real estate bubble hasn't completely run its course. First up was CalPERS, which Wednesday walked away from a controversial Boston investment that cost it about $91 million. Then came CalSTRS. A New York skyscraper it co-owns is about to go into default, a credit-rating agency warned Thursday. Default could cost the California State Teachers' Retirement System its share of a $75 million investment. The two losses by themselves don't represent enormous drains on the pension funds, which control portfolios totaling $336 billion. But they show that the funds have yet to completely extricate themselves from the financial debacles that cost them a combined $100 billion in the fiscal year ended last June 30, including several billion in real estate. |
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Appeals Court says 'Under God' not a prayerBy Bob Egelko, San Francisco Chronicle The federal court that touched off a furor in 2002 by declaring the words "under God" in the Pledge of Allegiance to be an unconstitutional endorsement of religion took another look at the issue Thursday and said the phrase invokes patriotism, not religious faith. The daily schoolroom ritual is not a prayer, but instead "a recognition of our founders' political philosophy that a power greater than the government gives the people their inalienable rights," said the Ninth U.S. Circuit Court of Appeals in San Francisco in a 2-1 ruling. "Thus, the pledge is an endorsement of our form of government, not of religion or any particular sect." The dissenting judge, Stephen Reinhardt, said statements by members of Congress who added "under God" to the pledge in 1954 show conclusively that it was intended to "indoctrinate our nation's children with a state-held religious belief." In a separate ruling, the same panel upheld the use of the national motto, "In God We Trust," on coins and currency. The language is patriotic and ceremonial, not religious, the court said. Reinhardt reluctantly joined the 3-0 decision, saying he was bound by the court's newly established precedent in the pledge case. 21% of small businesses on brink By ELISE VIEBECK, CalWatchdog A report released last week showed that 21 percent of California small businesses believe they will fold in the next three years. The annual survey, conducted by advocacy group Small Business California, revealed low confidence in the state’s business and political climate among business owners. Other research confirms this trend. According to analysts at Equifax, a credit firm, bankruptcies among small businesses in California have increased 81 percent since last year. In the Legislature: Legislative leaders target two-thirds requirements By the Sacramento Bee Targeting California's bitter budget fights, Democratic legislative leaders proposed a wide-ranging overhaul Thursday that would allow lawmakers to pass budgets by a simple-majority vote and would require them to forfeit pay if they are late in passing a spending plan. Senate President Pro Tem Darrell Steinberg and Assembly Speaker John A. Pérez hailed the package as a way to restore public confidence by making the budget process more efficient and ensuring that costly new programs are not approved without a way of paying for them. But Senate Republican leader Dennis Hollingsworth said the GOP could not accept any package that would allow Democrats to pass a budget without any Republican votes. Campaign and election news: GOP candidates look for votes with new books By the Sacramento Bee Both Republican candidates for California governor have released books as they campaign for their party's nomination this spring. Bee Political Editor Amy Chance sums up the high points in case you weren't planning to read them yourself. Whitman's funds could pose conflicts By Evan Halper and Michael Rothfeld, Los Angeles Times Billionaire GOP gubernatorial candidate Meg Whitman has invested her vast wealth in firms that sought to profit from the country's credit crisis, in venture capital and hedge funds open only to the wealthy, and in oil, gas, healthcare and other concerns seeking to influence state policy. The first public glimpse into the financial portfolio of the former EBay chief came Thursday, when she filed an economic-interest disclosure required of candidates. The holdings present potential conflicts of interest for a governor. Whitman spokeswoman Sarah Pompei said the candidate would "likely" move her holdings into a blind trust if she is victorious "and will scrupulously avoid any conflicts of interest." Mayor Newsom announcing for lieutenant governorBy Heather Knight and John Coté, San Francisco Chronicle San Francisco Mayor Gavin Newsom will announce this morning that he's running for lieutenant governor of California, The Chronicle has learned. The move fuels a firestorm of speculation about his odds of winning and who might replace him in Room 200 at City Hall if he heads to Sacramento. Newsom had remained coy about whether he'd run for weeks, but on Wednesday he took out nomination papers and paid a $2,609.80 filing fee. Many political analysts say Newsom will be the candidate to beat in the Democratic primary June 8. A statewide poll of likely voters conducted earlier this year by San Francisco pollster Ben Tulchin showed Newsom grabbing 33 percent of the primary vote. State GOP goes into convention 'on the offense'By Carla Marinucci and Joe Garofoli, San Francisco Chronicle More than a year after taking a beating at the ballot box, the California Republican Party is energized by "Tea Party" revivals and declining Democratic poll numbers as it heads into a three-day state party convention this weekend, charged up and "on the offense" for the statewide and mid-term elections. That's the official mantra as nearly 1,000 California Republican activists, candidates and officials gather at the Santa Clara Hyatt starting today to hear from statewide candidates - including those in crucial gubernatorial and U.S. Senate contests - and to prepare for fundraising and get-out-the-vote activities in this year's elections. Fight splits backers of ballot initiative to suspend state's global warming law Ted Costa says his group, People's Advocate, has been shut out of efforts to suspend AB 32 By Margot Roosevelt, Los Angeles Times A fight has split backers of a November ballot initiative to suspend California's 2006 global warming law. "Big money interests have come in and shut out the people," said Ted Costa, chief executive of the Sacramento-based anti-tax organization People’s Advocate, one of the initiative's original sponsors. Costa, whose populist group has promoted conservative ballot propositions for more than two decades, had drafted the initiative along with Assemblyman Dan Logue (R-Marysville), Rep. Tom McClintock (R-Granite Bay) and Sacramento attorney Thomas Hiltachk. But he said he was shut out of the process after a group, the “California Jobs Initiative Committee,” raised about $600,000, reportedly from two Texas-based oil companies. The two companies, Valero Energy Corp. and Tesoro Corp., operate major refineries in California that could be forced to slash their emissions of greenhouse gases under the law. Energy news: DWP ratepayers facing a bigger possible surcharge Surcharge would go to improve conservation and obtain solar, wind and geothermal power By David Zahniser, Los Angeles Times Los Angeles Mayor Antonio Villaraigosa's political team has spent the last two months talking up the need for the Department of Water and Power to adopt a so-called carbon surcharge, one that would require ratepayers to pay more to cover the cost of renewable energy. Now, that proposal has been incorporated into a larger increase, which would also force DWP customers to pay more to cover the cost of fossil fuels, such as coal and natural gas, which generate much of the utility's electricity. Villaraigosa plans to announce his proposal Friday for increasing the DWP's surcharge, known as the Energy Cost Adjustment Factor, by 2.7 cents for every kilowatt hour of electricity consumed. Of that total, 0.7 cents would be set aside to improve conservation and obtain solar, wind and geothermal power, said Jay Carson, Villaraigosa's chief deputy mayor. Education news: More California youth applying to out-of-state universities, say admission officersBy Lisa M. Krieger, San Jose Mercury News With the state's higher education system in crisis, more California students are vying for admission at out-of-state universities, applying for seats at campuses from the hills of upstate New York to the snowy flatlands of Ohio to the deserts of Arizona. University officials at public and private schools across the country are reporting record levels of California applicants to next fall's freshman class — an intellectual flight pattern that worries public-policy experts, who fear students may never return. | Legislative overhaul likely DOA By Dan Walters, Sacramento Bee Democratic legislative leaders, acknowledging the dysfunction of state government, say they want to place reforms before voters this year. Senate President Pro Tem Darrell Steinberg said the "system of finance is broken" as he and Assembly Speaker John A. Pérez unveiled their package Thursday, a mixture of constitutional amendments and internal legislative reforms. Pérez said the reforms would "make our government more accountable, more effective." Recent polls do indeed indicate that voters are disgusted, with approval of the perpetually gridlocked Legislature barely breaking into the teens, and are open to change. But what kind of change is still uncertain since one person's reform is another person's power grab. Bet on the donkey in this race The fact is that as a Democrat, Jerry Brown starts with a built-in advantage in his gubernatorial bid By Ethan Rarick, Los Angeles Times Now that both parties have candidates running for governor, Californians are sure to hear a bit of conventional wisdom about state politics: Voters typically elect Democrats to the Legislature but Republicans to the governorship. Like so much conventional wisdom, it's dead wrong, or at least seriously misleading. How to worsen the state job climate By the Orange County Register Putting his best foot forward, Gov. Arnold Schwarzenegger proclaimed, "I'm absolutely convinced that AB32 will create more jobs than kill jobs." It may be the governor's first acknowledgement that his legacy legislation, Assembly Bill 32, the Global Warming Solutions Act, will, in fact, "kill jobs." Worse yet, growth is projected for jobs that, for the most part, don't exist yet: "green jobs." Jobs that will disappear do exist, such as in energy production. A reasonable person might conclude that unknown growth in currently nonexistent jobs isn't a good trade-off for losing jobs in industries the law is designed to punish. | ||
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