There is a problem, but Californians don’t think it’s the Constitution

The Los Angeles Times reports that a poll of Californians shows voters firmly opposed to Constitutional fixes. Apparently, voters see the problem as lying in those they elected, not the constraints placed upon those elected officials by initiatives, including Proposition 13. Interestingly, voters polled showed very strong opposition to the split roll plan that would tax residential property under Prop 13 limits but re-assess commercial property values.

Seems as if all those calls for a Constitutional Convention are falling on deaf voter ears.

Poll: Voters skeptical of state reform proposals

Of those surveyed, 54% want to keep the two-thirds majority required to pass a budget, 65% reject a new sales tax for service providers and 62% oppose changing Prop. 13’s property-tax restrictions.

By Evan Halper

November 9, 2009

Reporting from Sacramento – Backers of an overhaul of California’s government, who hope to leverage disgust with Sacramento into support for changing how the state raises taxes and spends money, have a difficult path ahead, according to a new poll of California voters.Major segments of the electorate see the state’s problems as the product of unrestrained lawmakers driven by special interests to waste taxpayer money, and reject arguments that structural issues with the state’s Constitution and government institutions are to blame.

Voters don’t want the tax code overhauled in the ways that many fiscal experts promise would tamp down the wild revenue swings that have led to a constant state of budget crisis in California. They don’t want the Constitution changed to allow a simple majority of lawmakers to push a budget onto the governor’s desk, as most other large states allow. And they don’t want the state to touch Proposition 13 property tax restrictions, even if residential property taxes would remain strictly limited.

Graphic: Changes they don’t believe in

 

Beyond the Olive opens in Old Pasadena

I was fortunate to be able to join Crystal and Chip Reibel for the opening of their new store, Beyond the Olive at 10 North Raymond (just north of Colorado) in Old Pasadena.  They are purveyors of fine olive oil. Guests tasted fine olive oils suitable for every palate and purpose. Expert Alexandra Devarenne discussed subjects related to live oil, from What is Extra virgin Olive Oil to selecting the right oil for your purpose. Beyond the Olive has great gift ideas, too.

Terrific event.

Paul

Advice to small business from the New York Times

The New York Times runs helpful columns designed to aid small businesses.

The latest is on restaurant operations.  Part one was last week, part two ran today. Good advice.

You’re the Boss

100 Things Restaurant Staffers Should Never Do (Part 1)

By BRUCE BUSCHEL

Herewith is a modest list of dos and don’ts for servers at the seafood restaurant I am building. Veteran waiters, moonlighting actresses, libertarians and baristas will no doubt protest some or most of what follows. They will claim it homogenizes them or stifles their true nature. And yet, if 100 different actors play Hamlet, hitting all the same marks, reciting all the same lines, cannot each one bring something unique to that role?

1. Do not let anyone enter the restaurant without a warm greeting.

2. Do not make a singleton feel bad. Do not say, “Are you waiting for someone?” Ask for a reservation. Ask if he or she would like to sit at the bar.

3. Never refuse to seat three guests because a fourth has not yet arrived.

100 Things Restaurant Staffers Should Never Do (Part 2)

This is the second half of the 100 do’s and don’ts from last week’s post. Again, this list is for one particular restaurant, mine, which is under construction in Bridgehampton, N.Y., and will, with any luck, open this spring. I realize that every deli needs a wisecracking waiter, most pizza joints can handle heavy metal, and burgers always taste better when delivered by a server with tattoos and tongue piercing(s).

Not even a hundred suggestions can cover all the bases, so one is grateful for the many comments following the 50, including striking “you guys” from the restaurant lexicon and making sure the alcohol order is taken lickety-split. Thanks for all of the help.

51. If there is a service charge, alert your guests when you present the bill. It’s not a secret or a trick.

Healthcare bill passes House, Senate next

From the New York Times:

Sweeping Health Care Plan Passes House

By CARL HULSE and ROBERT PEAR

WASHINGTON — Handing President Obama a hard-fought victory, the House narrowly approved a sweeping overhaul of the nation’s health care system on Saturday night, advancing legislation that Democrats said could stand as their defining social policy achievement.

After a daylong clash with Republicans over what has been a Democratic goal for decades, lawmakers voted 220 to 215 to approve a plan that would cost $1.1 trillion over 10 years. Democrats said the legislation would provide overdue relief to Americans struggling to buy or hold on to health insurance

Obama Presses Senate to Act Quickly on Its Health Bill

By SHERYL GAY STOLBERG

Enlarge This Image

Brendan Hoffman for The New York Times

President Obama made a statement to the media in the Rose Garden at the White House on Sunday.

WASHINGTON — The White House, growing concerned that the Congressional timetable for passing a health care overhaul could slip into next year, is stepping up pressure on the Senate for quick action, with President Obama appearing Sunday in the Rose Garden to call on senators to “take up the baton and bring this effort to the finish line.”

Debate in the Senate will be fierce. Republicans have dug in to oppose a public option. Democrats are mindful of Senate rules and must have some cooperation from Republicans to pass legislation. With Joe Leiberman announcing opposition to a public option, there may be significant differences between what passed the House and what emerges from the Senate debate.

The Chamber and its Legislative and Government Affairs Committee have been monitoring the debate and discussion. Our position so far has been supportive of the goal of making health care available to all Americans. Further we have sought to ensure that all healthcare providers are treated fairly and equally and that costs are apportioned fairly, so no one segment of the economy is more impacted than another.

Paul

This week’s leading indicators

The recession poster child is in the black, for one quarter anyway:

From the New York Times:

A.I.G. Reports Profit but Warns of Continued Volatility

By MARY WILLIAMS WALSH

The American International Group reported its second consecutive quarterly profit on Friday as the value of its investments continued to rise, but it said that its insurance sales were running about 15 percent below a year ago, keeping with a trend that has persisted since the company was bailed out last fall.

Warren Buffet and friends keep doing well.

Berkshire Says Profit Tripled in Quarter

OMAHA (AP) — Berkshire Hathaway,Warren Buffett’s company, said Friday that its third-quarter profit tripled as the improving economy and stock market boosted the value of its derivative contracts.

No real surprise there, I suppose. Even when Berkshire Hathaway  posts losses they are not as severe as others.

Though banks are still failing.

From the LA Times:

United Commercial Bank is shut down, sold to East West Bancorp

This creates the largest U.S. bank focused on the Chinese American market and the largest bank based in Southern California.

By E. Scott Reckard

Toppled by loan losses and misstated financial reports, San Francisco’s United Commercial Bank was shut down by regulators tonight and immediately sold to Pasadena’s East West Bancorp, creating by far the largest U.S. bank focused on the Chinese American market.

The combination also will be the largest bank based in Southern California, surpassing City National Bancorp.

We are also seeing our commercial real estate market slowly implode:

COMMERCIAL REAL ESTATE QUARTERLY REPORT

Southern California’s vast desolation indoors

Almost 51 million square feet of office space is vacant in Southland, and that number is expected to continue growing well into next year.

Lincoln Property Co. Executive Vice President David Binswanger, left, checks out the construction on Horizon at Playa Vista near Marina del Rey. He knows how difficult it is to get new tenants for office buildings. (Christina House / For The Times / October 7, 2009)

By Roger Vincent

Though Wall Street investors are showing some enthusiasm about the direction of the economy, shell-shocked business owners in Southern California are still more inclined to shrink than grow their companies. ¶ Problems at white-collar firms are bleeding the region’s enormous office rental industry. Almost 51 million square feet of office space in Los Angeles County, Orange County and the Inland Empire is now empty — more than 17% of the total. ¶ The exodus from office buildings that started in late 2007 accelerated during the third quarter as the anemic business climate took its toll on the real estate rental industry, according to the Cushman & Wakefield real estate brokerage. ¶ “These vacancies are a direct reflection on unemployment,” said Joe Vargas, an executive vice president at Cushman & Wakefield. “Companies continue to reduce their workforce, or they are not hiring.”

Tenants have upper hand in lease deals

Before the recession, Ray Hamrick worried that his law firm would be unable to afford its longtime offices in Universal City. But after the building went into foreclosure, he negotiated a much lower monthly rent. (Ken Hively / Los Angeles Times / October 13, 2009)

By Roger Vincent

With the lease winding down on his law firm’s Universal City offices last year, Ray Hamrick figured that he was going to have to move because his rent would be rising beyond what he could reasonably pay.

Reluctantly, he started looking for space in buildings that weren’t as desirable as the sleek, 35-story high-rise on Universal Hollywood Drive that his firm had called home since the 1980s. Then the global recession took hold, and his building, the tallest in the San Fernando Valley, went into foreclosure. The lenders who got it back immediately wanted to deal.

The Chamber’s lease expires at the end of December. We may get the benefit of the downturn in commercial rents. Of course, what benefits us is not necessarily best for the local economy. We do keep losing growing businesses as they are wooed to places such as Glendale and Burbank by very competitive rates and easier TI permitting processses.

Paul

Unemployment remains

Unemployment continues to rise, even as some claim recession over.

From the New York Times:

U.S. Unemployment Rate Hits 10.2%, Highest in 26 Years

By PETER S. GOODMAN

Job seekers at a recruitment job fair conducted by Prudential Financial in New York this week.

As the unemployment rate surged to 10.2 percent in October, reaching double digits for the first time in 26 years, it suddenly seemed possible that the nation might yet confront the worst joblessness since the Great Depression.

And it gets worse:

Broader Measure of Unemployment Stands at 17.5%

By DAVID LEONHARDT

For all the pain caused by the Great Recession, the job market still was not in as bad shape as it had been during the depths of the early 1980s recession — until now.

With the release of the jobs report on Friday, the broadest measure of unemployment and underemployment tracked by the Labor Department has reached its highest level in decades. If statistics went back so far, the measure would almost certainly be at its highest level since the Great Depression.

In all, more than one out of every six workers — 17.5 percent — were unemployed or underemployed in October. The previous recorded high was 17.1 percent, in December 1982.

I think we all need to adjust to a new reality where the economy grows without creating new jobs for Americans. Maybe our employment growth lies in our entrepreneurship. New jobs will come from people who lose their traditional jobs and use their wits, guts and ideas to start a business of their own.

It’s a new dawn… or maybe a whole new world.

Paul

New Pasadena business grand openings

The Pasadena Chamber of Commerce happily celebrates the opening of new member businesses. This past week we were at Fight Academy mixed martial arts on South Arroyo Parkway,   Jack Tahanian’s new State Farm Insurance office on South Fair Oaks and Huntington Health Care on East Colorado Boulevard. New business is always welcome. We appreciate new memberships and do everything we can to help all our members succeed, grow and prosper. We welcomed a familiar face as a new member, too. Rod Salazar now represents Printing Control.

 

Pasadena Chamber Co-hosts Social Networking for Business Seminar

The Pasadena Chamber of Commerce, City of Pasadena and Foothill Workforce Investment Board sponsored a free small business seminar Social Networking for Small Business at the Rose Bowl Press Box this morning. More than 40 people heard Jim Locke of Axon Tech explain how social networking media can enhance business prospects and build customers. He discussed what is available, how it can be accessed and how to make it effective without devoting significant resources to maintenance and upkeep.

The people who attended were very pleased with the  information and provided very positive feedback.

Next up is Making Your Business Memorable: Branding and Marketing on January 19th with Pat Rosengren of Huntington Advertising. It is FREE. Sign up at www.cityofpasadena.net/asbs.

And the Pasadena Star-News published my piece on the economic impact of U2 in the Rose Bowl

Huge events at Pasadena’s stadium do create an economic impact throughout the region. U2’s 360º tour in the Rose Bowl was no exception. Thanks to the editorial board of the Star-News/San Gabriel Valley Newsgroup for choosing to publish this:

Guest View: Economic impact of U2: 360 degrees beyond the Rose Bowl

By Paul Little

Posted: 10/31/2009 07:13:04 AM PDT

Last Sunday evening I was one of almost 100,000 people who crowded into the Rose Bowl for the U2 concert. The experience was unforgettable, more than worth the $500 we paid for our seats. I can truthfully say there is nothing like the experience of a rock `n’ roll extravaganza, shared with 100,000 fans, in Southern California’s own Rose Bowl.

For the Rose Bowl, the U2 concert was much more than an entertainment event. It was an economic windfall. The Rose Bowl stands to net between $300,000 and $500,000 from the show. Considering there is a $165 million unfunded restoration and renovation project under consideration, that income is vital to the ongoing success of one of Pasadena’s architectural and cultural icons.

Drawing 100,000 people to Pasadena for an event in the Rose Bowl is going to be a net gain for Pasadena and the region. There are not many events like this that will look at the Rose Bowl as a potential venue. We do need to cultivate those few potential clients and do everything we can to make the Rose Bowl and Pasadena their preferred destination.

Paul

LA Times opines about California

Today’s LA Times featured a pair of op ed pieces on California.

One from William Voegeli on how California no longer delivers on the promise…

THE CALIFORNIA FIX

The Golden State isn’t worth it

Our high-benefit/high-tax model no longer works, especially compared with low-tax states like Texas.

By William Voegeli

November 1, 2009

In America’s federal system, some states, such as California, offer residents a “package deal” that bundles numerous and ambitious public benefits with the high taxes needed to pay for them. Other states, such as Texas, offer packages combining modest benefits and low taxes. These alternatives, of course, define the basic argument between liberals and conservatives over what it means to get the size and scope of government right.

 

It’s not surprising, then, that there’s an intense debate over which model is more admirable and sustainable. What is surprising is the growing evidence that the low-benefit/low-tax package not only succeeds on its own terms but also according to the criteria used to defend its opposite. In other words, the superior public goods that supposedly justify the high taxes just aren’t being delivered.

Voegeli argues that the compact we had as taxpayers – we pay more in exchange for better services – no longer holds up. Hi takes is that we pay more for services that aren’t equal to those in states that pay fewer taxes, such as Texas.

Then Rebecca Solnit argues what we really lack is leadership with basic common sense. Some of her statistics and facts are startling, if they are true.

OPINION

California’s deficit of common sense

The state has plenty of money and resources. What we’ve been lacking is a real-world discussion about how we distribute them.

By Rebecca SolnitNovember 1, 2009

California is rich. Even in the midst of a drought, we have lots of water, and in the midst of a recession, we have lots of money. The problem is one of distribution, not of actual scarcity.

 

This is the usual problem of the United States, which is not just the richest and most powerful nation on Earth now, but on Earth ever, and one of the most blessed in terms of natural resources. We just collectively make loopy decisions about how to distribute the money and water, and we could make other decisions. Whether or not those priorities will change, we could at least have a reality-based conversation about them.

Take water. My friend Derek Hitchcock, a biologist working to restore the Yuba River, likes to say that California is still a place of abundance. He recently showed me a Pacific Institute report and other documents to bolster his point. They show that about 80% of the state’s water goes to agriculture, not to people, and half of that goes to four crops — cotton, rice, alfalfa and pasturage (irrigated grazing land) — that produce less than 1% of the state’s wealth. Forty percent of the state’s water. Less than 1% of its income. Meanwhile, we Californians are told the drought means that ordinary households should cut back — and probably most should — but the lion’s share of water never went to us in the first place, and we should know it.

Is my lawn dying so 1% of our economy can suck up 80% of our water? And, did our state’s elected leadership allow us to prioritize our resources this way?

Good questions raised by each of these pieces.

Paul