Yay, no more mayoral election commercials
The polls have closed, and now the pools are being settled. Pools on who would become L.A.'s next mayor. Eric Garcetti got a call from Wendy Gruel last night, as she conceded the contest to him. Mike Feuer defeated incumbent City Attorney Carmen Trutanich in what was not a close race, while it looks like City Council member Dennis Zine has failed in his bid to replace Gruel as the city's Controller.
Now the question is, what does it all mean? Not much. Maybe four years from now, the financial health of Los Angeles will be better but probably not. Garcetti was not as beholden to the unions as Gruel would have been, but the power of the unions hasn't diminished significantly. Special interests will continue to dominate the political landscape of Los Angeles. What are the main problems facing the city as it moves forward?
Taxes. The city's gross receipts tax doesn't help to bring business into the city. If I were attempting to make a living through self-employment, I would not locate either my residence or my business within the city limits. There are no pros to that equation and the city's gross receipts tax is a major con in doing the cost/benefit analysis of being in Los Angeles.
Sales taxes. The rate in Los Angeles is 9.00% at present. Hey, it's 9.5% in Culver City and Santa Monica, but it's only 8% in Irvine. If you were going to buy a $40,000 car, where a 1% decrease in sales tax represents a savings of $400, would you drive to Irvine or buy in Los Angeles? Not enough of a savings? How about Thousand Oaks, where the rate is 7.5% and the savings jumps to $600? For daily or regular purchases it isn't an issue. But for big ticket items, it is.
Pension liabilities and the unions. The average salary of a Department of Water and Power employee is more than $100,000. Their pension benefits are outstanding and unless concessions are extracted from the unions involving the salary, healthcare benefits and pension benefits of new hires, the equation spells future insolvency for the city.
So Mr. Garcetti and the new members of the City Council face some daunting tasks and they have to get people who have the power of money and support from union membership to work with them. It doesn't look good.
Back when the disaster aid bill to provide billions in assistance to the victims of Hurricane Sandy was being considered in the U.S. Senate, 36 senators voted against it. Two of those 36 were Senators Tom Coburn and James Inhofe of Oklahoma. Now that the disaster is in their state, will they change their tune? Coburn isn't. His office has already made it clear that he will seek to ensure that any additional federal disaster funding will be offset by cuts in other federal spending, to make the additional aid budget-neutral. Perhaps this will serve as a lesson that when disaster strikes, government needs to come together and deal with the problem, rather than engaging in NIMBY type thinking.
This Date in History:
On this date in 1176, the Hashshashin attempted to kill Saladin
On this date in 1807, a grand jury indicts Vice President Aaron Burr on a charge of treason.
On this date in 1826, HMS Beagle departs on its first voyage.
On this date in 1848, slavery is abolished in Martinique.
On this date in 1906, the Wright brothers are granted a patent for their "flying-machine".
On this date in 1915, Lassen Peak erupts, becoming the only volcano other than Mount St. Helens to erupt in the contiguous states in the 20th century.
On this date in 1942, Ted Williams joins the Marine Corps as a flight instructor.
On this date in 1947, President Truman signs what later becomes known as the "Truman Doctrine".
On this date in 1968, the nuclear submarine USS Scorpion sinks with 99 aboard.
On this date in 1980, Namco releases the video game Pac-Man.
On this date in 1990, Microsoft Word releases Windows 3.0.
On this date in 2002, the remains of Chandra Levy were found in Rock Creek Park.
Famous Folk Born on this date:
Richard Wagner
Sir Arthur Conan Doyle
Laurence Olivier
Johnny Olson
Quinn Martin
Michael Constantine
T. Boone Pickens
Harvey Milk
M. Scott Peck
Richard Benjamin
Susan Strasberg
Paul Winfield
Bernard Shaw
Tommy John
George Best
Bernie Taupin
Morrissey
Jay Carney
Ginnifer Godwin
Apolo Ohno
Today's movie quote of the day comes from a Richard Benjamin film, "Westworld":
Peter Martin: You talk too much.
Robot Gunslinger: You say something, boy?
Peter Martin: I said you talk too much.
Robot Gunslinger: Try to make me shut up.
#2
Robot Gunslinger: [to Peter Martin, trying to provoke a fight] Sloppy with your drink?
[Martin tries to ignore him, unsure of how to react]
Robot Gunslinger: [to the bartender] Get this boy a bib!
Now the question is, what does it all mean? Not much. Maybe four years from now, the financial health of Los Angeles will be better but probably not. Garcetti was not as beholden to the unions as Gruel would have been, but the power of the unions hasn't diminished significantly. Special interests will continue to dominate the political landscape of Los Angeles. What are the main problems facing the city as it moves forward?
Taxes. The city's gross receipts tax doesn't help to bring business into the city. If I were attempting to make a living through self-employment, I would not locate either my residence or my business within the city limits. There are no pros to that equation and the city's gross receipts tax is a major con in doing the cost/benefit analysis of being in Los Angeles.
Sales taxes. The rate in Los Angeles is 9.00% at present. Hey, it's 9.5% in Culver City and Santa Monica, but it's only 8% in Irvine. If you were going to buy a $40,000 car, where a 1% decrease in sales tax represents a savings of $400, would you drive to Irvine or buy in Los Angeles? Not enough of a savings? How about Thousand Oaks, where the rate is 7.5% and the savings jumps to $600? For daily or regular purchases it isn't an issue. But for big ticket items, it is.
Pension liabilities and the unions. The average salary of a Department of Water and Power employee is more than $100,000. Their pension benefits are outstanding and unless concessions are extracted from the unions involving the salary, healthcare benefits and pension benefits of new hires, the equation spells future insolvency for the city.
So Mr. Garcetti and the new members of the City Council face some daunting tasks and they have to get people who have the power of money and support from union membership to work with them. It doesn't look good.
Back when the disaster aid bill to provide billions in assistance to the victims of Hurricane Sandy was being considered in the U.S. Senate, 36 senators voted against it. Two of those 36 were Senators Tom Coburn and James Inhofe of Oklahoma. Now that the disaster is in their state, will they change their tune? Coburn isn't. His office has already made it clear that he will seek to ensure that any additional federal disaster funding will be offset by cuts in other federal spending, to make the additional aid budget-neutral. Perhaps this will serve as a lesson that when disaster strikes, government needs to come together and deal with the problem, rather than engaging in NIMBY type thinking.
This Date in History:
On this date in 1176, the Hashshashin attempted to kill Saladin
On this date in 1807, a grand jury indicts Vice President Aaron Burr on a charge of treason.
On this date in 1826, HMS Beagle departs on its first voyage.
On this date in 1848, slavery is abolished in Martinique.
On this date in 1906, the Wright brothers are granted a patent for their "flying-machine".
On this date in 1915, Lassen Peak erupts, becoming the only volcano other than Mount St. Helens to erupt in the contiguous states in the 20th century.
On this date in 1942, Ted Williams joins the Marine Corps as a flight instructor.
On this date in 1947, President Truman signs what later becomes known as the "Truman Doctrine".
On this date in 1968, the nuclear submarine USS Scorpion sinks with 99 aboard.
On this date in 1980, Namco releases the video game Pac-Man.
On this date in 1990, Microsoft Word releases Windows 3.0.
On this date in 2002, the remains of Chandra Levy were found in Rock Creek Park.
Famous Folk Born on this date:
Richard Wagner
Sir Arthur Conan Doyle
Laurence Olivier
Johnny Olson
Quinn Martin
Michael Constantine
T. Boone Pickens
Harvey Milk
M. Scott Peck
Richard Benjamin
Susan Strasberg
Paul Winfield
Bernard Shaw
Tommy John
George Best
Bernie Taupin
Morrissey
Jay Carney
Ginnifer Godwin
Apolo Ohno
Today's movie quote of the day comes from a Richard Benjamin film, "Westworld":
Peter Martin: You talk too much.
Robot Gunslinger: You say something, boy?
Peter Martin: I said you talk too much.
Robot Gunslinger: Try to make me shut up.
#2
Robot Gunslinger: [to Peter Martin, trying to provoke a fight] Sloppy with your drink?
[Martin tries to ignore him, unsure of how to react]
Robot Gunslinger: [to the bartender] Get this boy a bib!
posted by me at 8:26 AM
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