Budget Update
On November 25, 2008, the Legislature convened in a Special Session called by the Governor to address the rising deficit that California is facing since the passing of the budget just months ago. The situation has come to a breaking point since adequate reforms were not made from the beginning. In this special session, the Senate and Assembly voted on a proposal to raise taxes significantly as well as cut certain expenditures, in hopes of balancing our out of control spending.
Thankfully, Republicans voted down this proposal because we will continue to stick to our promise to our constituents to not raise taxes. We believe that in our current economic crisis, the last thing that we need to do is further burden the taxpayers of California. We are committed to keeping jobs in California and stimulating our economy, as well as protect hardworking Californians from Sacramento’s overspending, and working to ensure that we never again face a deficit of this kind.
Our top priority as legislators must be to get Californians back to work. With unemployment at its highest rate in almost 15 years, we need to be looking towards long term solutions, responsible spending, and revenue with longevity; not merely a band-aid for this problem which will send it spiraling out of control again next year. Rest assured, as your Senator, I will continue to fight against the tax and spend proposals that come before us week after week, and instead work with legislators on all sides of the aisle to come up with a solution that will bring California back to its feet.
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Happy Thanksgiving to You and Your Family
With the Thanksgiving and Christmas holidays just around the corner, and on behalf of the entire 35th Senate District, I would like to thank our troops and their families for the sacrifices they are making for our country. We will never forget your bravery and the passion with which you protect our nation and freedom.
The holidays can be an especially difficult time for troops who are far away from home and loved ones. It is the perfect time to say thank you to our troops by donating a calling card so a service member can call home, making a contribution toward a care package, or sending a virtual "thank you" card.
I encourage you to visit the web sites of the organizations listed below and show your support for our military's hard work.
Operation USO Care Package accepts donations of $25 that go toward a package of personal items and snacks for a soldier. Visit the Web site or call 1-866-USO-GIVE.
Operation Uplink accepts donations towards calling cards for service members.
The U.S. Navy and The Army and Air Force Exchange apply donations towards gift certificates that troops can redeem for merchandise. Visit the Web site or call 1-800-628-3924 (Navy) or 1-877-770- GIFT (4438) (Army/Air Force).
Please note: This is a partial list of organizations. There are many other worthy programs which you may use to show support for our troops. For those who are sending gifts to friends and family in the military, please remember that mail takes between 20 and 40 days to arrive overseas. In order for packages to arrive via Priority Mail by Christmas, they often need to be sent as early as November 28. Check with the Military Postal Service to determine the deadlines for specific military bases around the world.
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You Are Invited
I am proud to be holding my 3rd annual Open House at my Costa Mesa District Office on December 4th, 2008. This event will provide an opportunity for community leaders and constituents to meet with both my staff and myself, as well as take a tour of the district office while discussing events of the past year, district issues, legislation, and priorities for the upcoming legislative session.
My District office is located at: 950 South Coast Drive, Suite 240 Costa Mesa, CA 92626,and refreshments will be provided.
For more information and to RSVP
please call Emanuel Patrascu at 714-957-4555
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Helpful Hints to Save on Your Energy Bill
During this time of economic volatility some rate-payers may be having trouble paying their utility bills. So compliments to Southern California Edison for releasing these helpful tips to curb expenditures:
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“High Bill Helper” on the www.sce.com web site has bill payment options, financial assistance information, energy efficiency tips, and an online, interactive feature that shows consumers where the biggest energy hogs are in the home, and how to tame them. www.sce.com/CustomerService/highbill-helper/
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Two Programs , California Alternate Rates for Energy ( CARE) and Family Electric Rate Assistance (FERA), offer reduced rates for income-qualified customers. www.sce.com/RebatesandSavings/incomequalified/CAREFERA/
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Rate Relief Assistance Programs: SCE offers bill payment assistance of up to $100, once a year, to income-qualified customers through this program. To receive assistance, customers must make a request through a community-based agency. To locate an agency, call SCE at (800) 205-8596 or visit www.sce.com/eaf. Utility payment assistance may also be available through the state-funded Home Energy Assistance Program (HEAP). Call (866) 675-6623 for more information, or to locate a HEAP service provider.
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Rebates: Customers can earn “free” money for taking energy-saving steps: The Refrigerator and Freezer Recycling Program pays customers $50 to haul away an old, working, inefficient refrigerator or freezer, which can cost them an extra $300 a year to operate. During the warmer months, the Summer Discount Plan offers up to $200 credit on summer bills for signing up to have the air conditioner compressor cycled off during an energy emergency www.sce.com/RebatesandSavings/Residential/.
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Free Home Energy Survey: A home energy audit tells customers how they can begin saving on their bills immediately and what simple steps they can take to save even more money. Surveys can be done online, in the home, and over the phone. www.sce.com/survey.
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Clean Technology Business Plan
Do you have an idea for a new energy or water technology that is ready for the market? Enter the Anaheim Center for New Energy Technologies (AC-Net) “Clean Tech Business Plan Competition!” By entering you will have the chance to win $25,000 and an opportunity to formally present your business plan to prominent venture capital firms.
To enter, submit a two-page summary of the business plan before the March 2009 deadline. Your entry will be screened by a panel of judges. All semifinalists will be invited to present their ideas on the final day of the competition at Cal State Fullerton on April 15, 2009. Winners will be announced that day in front of an audience of industry experts, venture capitalists, and government leaders.
Don’t miss your change to participate in this opportunity! Log onto: www.acnet-anaheim.net for official rules and an entry form. AC-Net is a joint partnership between the City of Anaheim and Cal State Fullerton.
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Just the Facts
The non-partisan Public Policy Institute of California recently conducted a seminar titled “Housing in California” at which experts discussed particulars relating to home prices, how we got where we are, and where we ought to go from here.
Of all the various facts, figures, charts, and numbers that were presented, what struck me was the disproportionate share of our incomes that Californians spend on housing. In 2006, 52% of households in California—a higher percentage than in any other state—spent more than 30% of our income on housing costs. The 30% threshold, recommended by the U.S. Department of Housing and Urban Development, is widely used as an affordability measure. The housing cost burden was especially severe for renters, the poor,—and shockingly—new homeowners (those who had purchased their homes within the previous two years): 53% of renter households, 83% of households with incomes below $35,000, and 65% of new homeowners in the state exceeded the 30% threshold in 2006.
In contrast to a decade-long trend of increase, homeownership rates among California families are now falling. From 1996 to 2005, home ownership rates rose from 55% to 60% with rates increasing the most among young adults aged 25 to 34 years old. Low interest rates, creative financing, and buying in less expensive inland areas of the state were important strategies used by new homeowners earlier this decade; but with the collapse of the housing market, homeownership rates declined in 2006 and ’07. With foreclosure activity at record levels and financing with adjustable-rate mortgages recently near an all-time low, the downward trend in homeownership rates is likely to continue.
Californians already spend a disproportionate amount on housing. That fact, along with the data that I just described from the PPIC, is a clear indication that homeownership rates are likely to continue to fall.
Facts such as these only embolden my commitment to returning California as a place where families can achieve their dreams of homeownership. And, as a brief aside, now would certainly not be the time to ask Californians for more of their incomes by way of expanding the state’s sales and excise taxes the way the Administration has proposed.
To that end, you can count on me to honor my commitment to you to introduce, support, and fight for legislation that beats back government’s insatiable appetite for your paycheck so that more Californians can pursue homeownership.
Below are several links to the presentations which examined the scale of the crisis, economic forecasts, and trends in home prices and foreclosures.
Housing Prices and the California Economy (pdf)
Jed Kolko, Public Policy Institute of California
UCSB Economic Forecast Project (pdf)
Kirk Lesh, University of California, Santa Barbara
Housing & Foreclosure Forecast, September 2008 (pdf)
Rani Isaac, California Research Bureau
The Subprime Crisis from a National Policy Perspective (pdf)
Cynthia Kroll, University of California, Berkeley
Subprime Lending & Foreclosure Crisis: Legislative Responses (pdf)
Mark Farouk, Assembly Committee on Banking and Finance
The State’s Role in the Implementation of the Housing Recovery Act (pdf)
Frank Luera, Housing and Community Development
Tackling the California Foreclosure Crisis: An Agenda for State Action (pdf)
Alan Mallach, The Brookings Institution
Foreclosures and Urban Development in the San Joaquin Valley (pdf)
Michael Teitz, Public Policy Institute of California
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