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As
the regular session of the California Legislature gets underway, Labor
will seek to preserve the gains it has made during
the past 5 years under a Democratic Administration. The California
Labor Federation will be focusing on Unemployment Insurance,
Workers’ Compensation, Budget issues, protecting SB
2 - Healthcare for Working Californians, and contracting-out
issues. (See ‘Upcoming
Challenges for Labor in 2004’ for more
details.)
Since
the costs to employers of the UI and WC systems are center
stage this year, we are planning a lobby day for union members
to educate legislators about the importance of preserving
eligibility and benefits for workers. (See ‘Labor
Fed Lobby Day Flyer’)
The
Federation’s Legislative Convention will be on April
26-27th this year at the Sheraton Grand Hotel in Sacramento.
For more information visit www.calaborfed.org.
Keeping
Film Production in the United States
The
California Labor Federation will be exploring legislative
avenues to promote film production in the state as part of
our efforts around state contracting-out. Governor Schwarzenegger
has appointed Bonnie Reiss, a long-time progressive democrat,
to be his chief advisor on film production and the entertainment
industry.
Budget:
Governor
Arnold Schwarzenegger will have some heavy lifting to do
to put the state’ fiscal house in order. Drastic cuts
and a $15 billion dollar bond are on the table.
The
California Film Commission and the Film California First
program remain un-funded in the proposed budget. They were
moved to the Business, Transportation, and Housing Agency
last year through AB 1277. Budget trailer bill legislation
will be required to provide operating money for these programs.
The
Administration’s Proposed Budget, which was released
on January 9th, assumes roughly $6 billion in spending cuts,
the sale of the $15 billion deficit bond that will appear
on the March ballot, a $3 billion increase in tax revenues
due to an improving economy for 2004-05, $500 million in
increased revenues from the renegotiation of Indian gaming
contracts, and roughly $3 billion in other transfers, fund
shifts, and loans.
In
addition, the budget proposes to reimburse local governments
for $4.1 billion in vehicle license fee (VLF) payments lost
in 2004-05 as a result of the Governor’s decision to
roll back the Davis Administration’s tripling of the
fee. Local governments would also receive $2.5 billion in
reimbursements for VLF payments in 2003-04.
But
to the dismay of local governments, the budget diverts $1.3
billion in annual property tax revenues from local governments
to schools, a move which reduces General Fund support of
schools by an equal amount. The diversion of property tax
revenues has long been opposed not only by local government,
but by analysts who have generally agreed that lower property
tax shares provide a disincentive to local government to
approve new growth.
The
Labor Federation opposes spending caps and will fight to
restore vital programs cut in the Administration’s
budget proposal. We support Proposition 56 to end the budget
deadlock in California and will support restoring the top
tax bracket to generate revenue. (See
List of Labor Programs Impacted by Budget’)
Legislative Analyst Elizabeth Hill has urged the legislature
to consider raising taxes to help close the estimated $6
billion structural budget gap that the plan will leave at
the end of the 2004-05 budget year.
Re-financing
the Unemployment System
The
UI System in California is broken. The Trust Fund currently
faces fiscal insolvency and a UI Trust Fund loan will add
additional costs to the system. The Trust Fund financing
structure currently (1) does not build reserves that are
adequate to provide decent benefits during economic recessions,
and (2) charges employers higher taxes during economic recessions
when they are least able to pay.
The
solution will needs to involve a Federal bail out loan (short
term) and moving toward a “forward-funded” financing
structure that generates reserves to ensure that unemployed
workers have adequate access to decent benefits, and employers
do not pay the highest tax rates during economic recessions.
(See Re-financing
the Unemployment System)
IATSE
District 2 is part of the Labor Federation’s ‘UI
Working Group’ to brainstorm solutions to the crisis.
Grocery
Worker Strike Action Update:
" We
are escalating protests throughout California," said
Art Pulaski, head of the California Labor Federation, and
one of 11 people arrested Wednesday. "We will continue
until the grocery chains provide affordable health care to
workers."
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