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Davis Vanguard

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Want indepth coverage of and investigative journalism on Davis politics? The People's Vanguard of Davis blog offers an alternative news source to The Davis Enterprise. Davis Vanguard is written by David Greenwald, formerly using the pen name Doug Paul Davis.

Note: As of March 2, 2009, the People's Vanguard of Davis can be found at http://www.davisvanguard.org/

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New Vanguard Website: DavisVanguard.org

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Will the Pass-Through Agreement Die with the End of Redevelopment?

Answer Depends on Whom You Ask

There is no simple and straightforward answer to the question of what happens to the pass-through agreement, now that redevelopment is on the brink of extinction in California. What appears clear, at least for right now, is that the county needs the money the city passes through to them through the redevelopment agency, and at least the current majority on the Board of Supervisors is opposed to developing between cities.

As of February 1, all assets and liabilities of an RDA will revert to a legally-designated Successor Agency. Davis recently voted to become the Successor Agency to its RDA.

The Successor Agency is charged with a variety of tasks to "wind down" the RDA and carrying out the duties and responsibilities, including preparing the Recognized Obligation Payment Schedule (ROPS), a document covering required payment obligations; creating a Redevelopment Obligation Retirement Fund to be used to receive property tax payments from the Auditor-Controller; control of all assets from the former RDA; and working with the Oversight Board to dispose of all RDA assets.

According to County Supervisor Jim Provenza, one of the first tasks the successor agency has is to pay their commitments and one of their first commitments is the pass-through agreement.

While there is a lot of dispute over the interpretation of the law, Jim Provenza believes that there is agreement between the Davis City Attorney and County Counsel that "the pass-through agreement is in force for the near future and that the redevelopment money can still be spent for these purposes."

"In the near future it doesn't affect the pass-through agreement," he said.

"Eventually when everything is paid off and we get to a situation where there is no redevelopment money," he continued, saying that money will revert back to the tax arrangements that existed prior to redevelopment agencies. "With regards to Davis, we believe we will be getting from taxes the same amount as we got from the pass-through agreement. So there would be no real change coming out of that."

"In terms of what happens in the more distant future, I think it pretty much stays the same," he continued. "I think it works well, we've decided as a county that the cities should make development decisions for development like houses and businesses, urban type development. They should make those decisions within their planning area."

"We've also decided that we don't want development between the cities, in the rural areas but we want development to be contained within the cities," he said.

Supervisor Provenza believes, even after the pass-through agreement is exhausted because there is no more money to pass-through, that the county will not change its policies. Of course, that is a matter not up to one supervisor, and the current make-up of the board could change.

Supervisor Matt Rexroad, however, was also reassuring, stating that he "believes that based on the county's history, even if the city of Davis fell out of the agreement, the focus of growth would remain within the cities."

"I doubt you'll see a rush by the Yolo County Board of Supervisors to start developing outside of municipalities," Supervisor Rexroad told the Enterprise.

Fellow Davis representative on the Board of Supervisors Don Saylor spoke with the Enterprise, and while he believes the pass-through agreement remains in effect, he made no statement either way as to whether he agrees with the philosophy expressed by his colleagues.

"It's our understanding that the successor agency to the redevelopment agency will continue to have obligations to the pass-through agreement amount to the county government," Yolo County Supervisor Don Saylor told the Enterprise. "So long as that remains in effect, the contract between the city and the county remains."

The question is really how long that contract will remain.

Legislation introduced by Senator Alex Padilla would extend the mandatory dissolution date of RDAs from February 1, 2012 to April 15, 2012. However that bill is not likely to pass at this time.

County analysis argued, "With limited exceptions, the Dissolution Act expressly states that Enforceable Obligations to be paid by Successor Agencies do not include agreements, contracts or arrangements between Redevelopment Agencies (RDA) and its Sponsoring Community, and that such agreements, contracts or arrangements are invalid and not binding on Successor Agencies upon dissolution of the RDA."

They added, "The County of Yolo is not the 'sponsoring community' of any existing Redevelopment Agency. It is plausible that some or all of the Pass-Through Agreement provisions may, in fact, be enforceable obligations. Analysis is ongoing on this point."

Their analysis concludes, "As stated elsewhere, payments per the Pass-Through Agreements will continue to be made. There is no prohibition in the Act preventing the parties from negotiating principles or shared values for future operations."

Davis City Manager Steve Pinkerton believes that the money just is not there for Davis to continue its redevelopment payments after the RDA is dissolved.

Moreover, no one knows for sure what is going to happen.

Mr. Pinkerton laid out some bleak scenarios, "One of the possible scenarios is the state's going to say any county getting a pass-through in excess of what they would be getting without redevelopment, the state's going to take that money."

"There's a theoretical possibility [of that happening]," and Mr. Pinkerton suggested that we are really in the early stages of any understanding of a very convoluted and poorly-written set of laws. He argued, "One of the critical questions is how the state is going to interpret our pass-through agreement...The state is going to do everything they can to maximize the dollars to them."

His understanding of the way the law is written is that all of the money is going to the state. In theory, that money would go to the schools. But not for sure.

"Some of the more cynical legislators have said they want the schools to give us an extra $50 million in campaign donations and then we'll make sure that money flows to the schools," he told the Vanguard. He argued that the state will be the winner, not the schools, and "the county is definitely" not a winner in this scenario.

Bottom line is that if the state forces the money that has been going to the county through the pass-through agreement to go to the state, "the city would have a difficult time finding other funds to make the payment."

He believes the money being paid to the county is at risk. There is plenty of legal backing to support the county getting the money, but "there is the risk that they could end up getting punished in this process."

If the pass-through agreement goes, good will and commitment to smart-growth principles are all the City of Davis would have standing in the way of a long line of potentially opportunistic developers.

Remember, it was the developer Frank Ramos in the 1980s, whose development of Mace Ranch over the objections of the city, triggered the original pass-through agreement.

Right now, the Board of Supervisors seems content to allow the cities to determine their growth principles, but the real estate market has not yet fully recovered. It is a critical question about what happens when it does recover and exerts full pressure on the county to open up rural land for development.

---David M. Greenwald reporting

Governor Brown Unveils Pension Reform Plans

Angry Response From Public Employees to the Governor's Plan

On Thursday, Governor Jerry Brown unveiled the statutory and constitutional language to implement the 12-point pension reform plan he presented last October.

"These major reforms for state and local pension systems will improve their long-term sustainability while providing employees a fair retirement," the governor wrote. "These reforms also will end system-wide abuses and reduce taxpayer costs by billions of dollars over the long term."

"Current benefits, contributions and retirement ages don't reflect the changing demographic realities we face and are not sustainable," he continued. "Continuing these plans in their current form will put taxpayers on the hook for substantial costs now and in the future. Urgent and decisive action is imperative."

The governor's plan includes a provision for equal sharing of pension costs between all employees and employers.

"My plan will require that all new and current employees transition to a contribution level of at least 50 percent of the annual cost of their pension benefits," the governor said.

It also creates a hybrid risk-sharing component that will add a 401(k)-style defined contribution plan that will reduce the risks on public agencies and place the entire risk of loss on investments on employees.

"I believe that all public employees should have a pension plan that strikes a fair balance between a guaranteed benefit and a benefit subject to investment risk. The 'hybrid' plan I am proposing will include a reduced defined benefit component and a defined contribution component that will be managed professionally to reduce the risk of employee investment loss," the governor said.

It would also increase the retirement age to 67, the same age as social security, and it would require three-year final compensation to be the guide in order to stop spiking.

"Raising the retirement age will reduce the amount of time retirement benefits must be paid and will significantly reduce retiree health care premium costs. Employees will have fewer, if any, years between retirement and reaching the age of Medicare eligibility, when a substantial portion of retiree health care costs shift to the federal government under Medicare," the governor said.

The governor also argued, "That one-year rule encourages games and gimmicks in the last year of employment that artificially increase the compensation used to determine pension benefits."

It would also calculate benefits based on regular and recurring pay as another way to stop spiking, by manipulating benefits through the supplementing of salaries with special bonuses, unused vacation time, excessive overtime and other pay perks.

His plan would limit post-retirement employment.

"Retired employees often have experience that can deliver real value to public employers, though, so striking a reasonable balance in limiting post-retirement employment is appropriate," the governor said. "My plan will limit all employees who retire from public service to working 960 hours or 120 days per year for a public employer. It also will prohibit all retired employees who serve on public boards and commissions from earning any retirement benefits for that service."

It would enable felons to forfeit pension benefits. It would prohibit retroactive pension increase, pension holidays and purchasing of service credit, and it would also increase pension board independence and expertise.

The governor wrote: " 'Independence' means that neither the board member nor anyone in the board member's family, who is a CalPERS member, is eligible to receive a pension from the CalPERS system, is a member of an organization that represents employees eligible to or who receive a pension from the CalPERS system, or has any material financial interest in an entity that contracts with CalPERS. My plan also will replace the State Personnel Board representative on the CalPERS board with the Director of the California Department of Finance."

Finally, it would reduce retiree health care costs by requiring more state service to become eligible for health care benefits at retirement. New state employees will be required to work for 15 years to become eligible for the state to pay a portion of their retiree health care premiums. They will be required to work for 25 years to become eligible for the maximum state contribution to those premiums.

Reaction to the governor's plan, however, was swift and severe.

Californians for Retirement Security, a coalition representing more than 1.5 million public employees and retirees, issued a heated and pointed statement:

"Governor Brown's pension proposals amount to an unprecedented and unacceptable assault on current and future California teachers, firefighters, peace officers, school employees and other public employees. They abrogate the very collective bargaining laws he first enacted, attempt to violate Constitutional rights of current workers, severely harm middle-class and low-wage workers and will force workers in back-breaking manual labor jobs to work 30 to 40 years, until age 67, only to receive 50 percent less in stable defined benefits.

"Nonpartisan analyses already have found these sloppy proposals won't yield the savings promised and are full of major legal and constitutional minefields. Research from the University of California, Berkeley, released today, concludes that forcing public employees in California into risky retirement plans like the one the governor proposes will disproportionately harm low and middle-income workers - further crumbling California's middle class."

"We implore the Legislature to reject the governor's attempts to subvert the collective bargaining process entirely by locking these ill-considered proposals into our state's Constitution. We urge the Legislature to consider facts instead of Republican-created political rhetoric when examining retirement safety for California workers."

"Pensions make up a tiny fraction of the state budget, less than 3 percent, and public employees who already pay up to 12 percent of their salaries into their own retirement plans have made hundreds of millions of dollars in concessions to help save taxpayers' money. The nonpartisan Legislative Analyst has determined that two proposed ballot measures that contain some of the same proposals outlined by the governor would cost taxpayers at least $1 billion a year for the next three decades. Meanwhile, pension costs are one of the smallest growing costs in all of state government, while recently approved tax breaks for corporations are costing taxpayers a billion dollars a year."

"Governor Brown and the Legislature should focus on meaningful, legal and fair pension changes. We will continue to support them in that endeavor. But we will use everything at our disposal to fight any attempts to rescind collective bargaining rights or break promises to this state's middle class working families."

"It's time to fix our pension systems so that they are fair and sustainable over a long time horizon," said Governor Brown. "My plan raises the retirement age and bans abusive practices like 'spiking' and 'air time' while mandating that public employees pay an equal share of pension costs."

The governor's office said, "When fully implemented, these reforms will cut roughly in half the cost to taxpayers for providing pension benefits for state employees. It will cut the risk to taxpayers for pension debt by more than half. Similar savings are expected across all systems."

In our view, these reforms fix most of the problems - at least down the line. The unfortunate part is that we cannot implement those changes for current employees unless they agree to it. Governor Brown conceded as much.

The short-term benefits are limited. However, his administration said that over the next 30 years, the plan could save the state $4 billion to $11 billion.

The effect on existing public employees would be minimal. However, critically, public safety employees would have to pay 2% more towards their pensions.

"I try to protect working people whenever I can," said Governor Brown, "but I'm also responsible to the taxpayer and making sure we have a solvent state government."

And that is the dilemma that we face. The average state worker is not the problem here. In fact, neither is the average pension receiver, who receives 2% at 60 and makes an average of less than $40,000.

"We can't forget that the vast majority of public-sector employees are middle-class workers, and their average pensions are far from exorbitant," State Senate leader Darrell Steinberg said in a statement.

He is right. But he forgets the key point: what kills us are those making over $100,000. Those who are able to retire at 50. Those who get 3% for every year that they work at the final salary which can be spiked using a variety of means.

The two main culprits are management and public safety.

Until the worst abuses are reined in, the pensions to the rank and file will be in jeopardy. Governor Brown skirts a fine line, but most of the changes here will fix the system.

---David M. Greenwald reporting

CalSTRS Reduces Earning Forecast Rates to 7.5 Percent

Move Puts Further Pressure on CalPERS to Do Likewise

In a move with huge implications, the governing board of the California State Teachers' Retirement System (CalSTRS), the pension fund for teachers, lowered their investment return assumption from 7.75 percent to 7.5 percent.

According to a release on Thursday, "The change is part of a four-year experience analysis that sets the parameters for determining the financial health of the system."

"Any funding plan the Legislature and Administration develops for CalSTRS should reflect the most realistic expectations for the future, in order to effectively plan for the payment of CalSTRS benefits to its members," said Teachers' Retirement Board chair Dana Dillon.

"We have to keep in mind that CalSTRS cannot set its own contribution rates - only the Legislature and Governor have the authority to do so. Also, teachers do not receive Social Security for their CalSTRS covered employment, so the defined benefit pension may be their only source of retirement security."

The current experience analysis contains three significant recommended changes to CalSTRS assumptions:

Lowering the investment return assumption from 7.75 percent to 7.5 percent annually.
Changing the mortality assumption to reflect the fact that members are living longer.
Lowering the assumption of wage growth from 4 percent to 3.75 percent annually.

"Of these, the most significant change is the investment return assumption, because the projected lower future returns makes it much more likely that we cannot invest our way to financial health. We're still feeling the effects of the global financial crisis," said CalSTRS CEO Jack Ehnes.

During the crisis, the CalSTRS portfolio shed $43.4 billion between July 1, 2008 and June 30, 2009. Since CalSTRS uses an averaging, or smoothing, process that recognizes gains and losses over a three-year period, this is the final year in which the negative impacts from the crisis are being felt.

The California State Teachers' Retirement System, with a portfolio valued at $144.8 billion as of December 31, 2011, is the largest teacher pension fund and second largest public pension fund in the United States. CalSTRS administers a hybrid retirement system, consisting of a traditional defined benefit, cash balance and defined contribution plan, as well as disability and survivor benefits. CalSTRS serves California's 856,000 public school educators and their families from the state's 1,600 school districts, county offices of education and community college districts.

As we reported earlier this week, experts have already downwardly revised pension earnings forecasts for CalPERS, which runs the pension system for state and local governments including the City of Davis.

The California Public Employees' Retirement System has steadfastly refused to revise their 7.75 assumed rate of return (ARR), despite experts' claims that hitting the long-term earning target will be difficult, at best.

Ed Mendel, who runs the Calpensions website, reported on Monday, "While CalPERS reported weak earnings in 2011, a prominent private-sector investment manager, Robert Arnott of Research Affiliates, told the board last week he thinks the most they can expect from stocks and bonds next decade is 4 percent."

"Consultant Girard Miller said in Governing magazine this month, while discussing 12 basic public pension issues, that earnings 'closer to 7 percent' are more realistic until global debt is reduced," Mr. Mendel reports.

And yet, CalPERS has remained steadfast in not revising their earning assumptions, despite recommendations by actuaries who argue they should lower their forecast to 7.5 percent.

Davis' new city manager is skeptical about CalPERS' claims and their forecast.

In early January, he told the Chamber of Commerce that he strongly disagrees with the CalPERS claims "that they have enough money at the moment and that they're not going to increase our rates over the next two years."

He told the chamber in his State of the City address, "We think they're wrong. We think they're basically doing that so that they don't have to give the state an increase in their rate this year so they don't contribute to the state budget deficit."

"But we think they're in complete denial." He said that they don't anticipate any additional cost pressures from CalPERS at this point in time, but the city still plans to set additional money aside in case they change their mind, which he said happens "just about every year."

"Long-term, what's happening with CalPERS is completely unsustainable," he continued. "There's no way they can ever meet their obligations and so at some point in the next five years they're going to come clean and there's either going to be a ballot initiative or some legislative change and both future employees and existing employees are going to see some reduction in the accounting methods - it's just not sustainable."

He hopes this realization comes before they hit the city with a 30 to 40 percent increase in our contributions rates. "There is some point in time when the fiscal laws of nature are going to catch up with [Cal]PERS," he said noting that non-PERS cities are having to increase their rates by as much as 70 percent.

That view is now bolstered by a growing criticism of CalPERS' decision to leave the ARR untouched at 7.75 percent.

Ed Mendel notes, "Even a small drop in the earnings forecast could boost the annual employer payment to the pension fund."

In fact, the City of Davis has projected that for each quarter percentage drop in the earning expectation, the city will have to make an additional $1 million in payment from all funds.

The good news that Mr. Mendel reports that CalPERS has a chance to revisit their forecasts in March, and they are "not turning a deaf ear to the experts."

The news from CalSTRS is likely to be the death blow to CalPERS' ability to maintain their current earnings projections, as their calculations may be proven to be highly political, and reaction to the governor's pension plan may help shape their predictions, as well.

The City of Davis last June voted to set aside $2.5 million, in part to cushion any blows from a revised PERS earning assumption. While those cuts have yet to be implemented, the city council was clearly on the right path.

---David M. Greenwald reporting

Judge Maguire Surges to Huge Advantage

It is early but if Deputy DA Clinton Parish thought that Judge Dan Maguire was vulnerable, he may be sorely mistaken. The judge has surged out to a tremendous monetary advantage - holding a nearly 5 to 1 advantage in contributions, an advantage that narrows only slightly on a percentage basis by the fact that both men have dumped their own money into the race as well.

For the first six months of the campaign from July 1 to December 31, Judge Maguire raised 24,850 dollars and put in 16,000 dollars of his own money for a campaign war chest of over 40,000 dollars.

Deputy DA Parish raised $5425 and put in $11,000 of his own money.

Currently Judge Maguire has a cash balance of $32,545 while DDA Parish has a cash balance of $14,403.

Judge Maguire's Filings (Click to enlarge)

Deputy DA Parish's Filings (Click enlarge)

(filings will be available shortly)

Judge Dan Maguire clearly has support of his colleagues, having received monetary contributions from Yolo County judges that include presiding Judge Dave Rosenberg and Judges Sam McAdam, Stephen Mock, Paul Richardson, David Reed, Steve Basha and Janet Gaard, as well as retired Judge Arvid Johnson.

He has a long list of endorsements as well, including Judge Fall, Judge White, the current Public Defender Tracie Olson and past public defender Barry Melton, along with a number of deputy public defenders and trial lawyers from across the region.

He also has the support of County Supervisors Mike McGowan and Don Saylor, Davis Mayor Joe Krovoza, Mayor Pro Tem Rochelle Swanson, Davis Councilmember Dan Wolk, Woodland Councilmember Tom Stallard, County Clerk Freddie Oakley, County Clerk Cass Sylvia, Retired County Supervisor and Assemblymember Helen Thomson, former Davis Mayors Jerry Adler, Maynard Skinner and Bill Kopper, former Councilmember Michael Harrington and School Board member Richard Harris, among many others.

Deputy DA Clinton Parish does not list his endorsements on his website, though he is publicly backed by his boss, District Attorney Jeff Reisig, and a number of law enforcement members including Sheriff Ed Prieto.

Judge Maguire counters that last endorsement with the endorsement of Ramona Prieto, herself a high commander in the California Highway Patrol and just yesterday Judge Maguire sent out a press release announcing the endorsement of the Yolo County Deputy Sheriff's Association.

The press release reads in part, "Solidifying his position as frontrunner in his campaign for election, and a day after reporting raising almost five times the amount of his opponent in the latest campaign reports, Judge Dan Maguire announced receiving the endorsement of Yolo County's largest law enforcement group, the Yolo County Deputy Sheriffs' Association, today."

"Running for election has been a tremendous experience so far. It's amazing how much people respect the work that I have done. I'm honored to have my work recognized by a law enforcement group such as the Yolo County Deputy Sheriffs' Association. I'm humbled to know that my approach to applying the law is respected by law enforcement groups as well as elected officials and individuals across the county," said Judge Maguire.

In the press release from his announcement, Deputy DA Clinton Parish stated that he has prosecuted more than 50 trials including Felony DUI, Sexual Assault, Robbery, Burglary and Murder. He further indicated that he has handled more than 1,000 criminal cases and presented evidence in hundreds of hearings.

Mr. Parish drew attention to the fact that he has been protecting the rights of crime victims for nearly ten years and "Yolo County deserves a judge who knows that criminal defendants and crime victims both have rights."

According to his bio, Clint Parish graduated from McGeorge Law School in Sacramento. He has lived in the area for 15 years and has lived in Woodland for the past six years.

Mr. Parish was hired as a Deputy District Attorney in 2002 by former District Attorney David Henderson, and has been prosecuting felony cases since 2003. Parish is married with four children.

Judge Maguire previously announced the endorsement from the entire Yolo County Superior Court Bench.

"I am honored to serve as a Judge for the people of Yolo County and look forward to continuing to provide fair, honest and respectful justice to everyone who enters my courtroom," said Judge Maguire. "And it is a tremendous honor to receive the support of every judge in Yolo County."

Judge Maguire and his wife Fran have been married 20 years, and they live in Davis with their two daughters. Judge Maguire is active in his community, has taught law at UC Davis School of Law for a number of years and has received awards from the University for outstanding service.

---David M. Greenwald reporting

Former DTA President Calls For Concessions

Last week the Davis school board acknowledged that it was dealing with another 3.5 million dollar deficit which will likely result in further cuts to programs, possibly a shorter school year, despite the fact that Measure C is on the ballot.

This is not a huge surprise, given that Measure C only renews what the taxpayers are currently paying. It does not produce any new revenues, despite claims from opponents of the ballot measure.

School Board Member Richard Harris told the board, as quoted in the Enterprise, "As good as Measure C is, we've still got this huge, huge problem."

Bruce Colby, the Associate Superintendent who runs the business portion of the district, said that even before state budget cuts kicked in, the district was operating with an ongoing $1 million structural deficit, and over the last few years they have utilized a number of one-time fixes to get through.

These include the use of federal stimulus funds, contributions from the Davis Schools foundation and employee concessions as an alternative to layoffs.

Ingrid Salim was at one point the President of DTA, and she wrote to the Davis Enterprise this week, "The district has faced this deficit for a number of years, and each time, as was delineated, other one-time monies were used to offset the need for layoffs and keep programs intact."

The time for one-time monies is running out. And the state budget crisis is not disappearing. While the governor has proposed new revenues to support the restoration of funding to school districts, the soonest that relief would arrive would be after the November ballot.

"The strategy (we've pursued as a district) could work if the state gets their act together and they start buying back their deferrals (of funding to K-12 school districts)," Mr. Colby told the school board, as reported by the Enterprise.

But that hasn't happened yet, and now "all the short-term local and federal money, and the state fixes, are gone. There's nothing else left but us making reductions at the local level," Mr. Colby added.

Ingrid Salim writes, "This year, the options for such one-time monies are limited, and therefore the threat of layoffs, increase in class sizes and reduction in programs is the greatest it's been in years."

She argued: "Certainly, in this time of economic uncertainty, this is one way to have compassion for our colleagues: districts across the state are having to make similar decisions, and finding another job will not be easy for those laid off. In addition to helping our colleagues, many of us teaching know that once positions and programs are lost, it is very difficult to get them back again."

She goes further and calls on her fellow teachers to step up.

"I urge the Davis Teachers Association leadership to poll their members to gauge interest in a shortened school year and other concessions in order to mitigate those layoffs. We did this once before, a few years ago, and were able to save many employees' jobs, keep class sizes reasonable and keep programs intact," she argued.

Ingrid Salim concluded: "If DTA were to direct our Negotiations Committee to do something similar this year, pink slips to compensate for the deficit might be avoided altogether, reducing the anxiety so many face each year in these uncertain times."

While the school board views Measure C as critical - without which the district might be looking at a $10 million shortfall (Measure C funds $6.5 million and the deficit will be $3.5 million even with Measure C), which would be catastrophic to the district, it is not going to fund that last $3.5 million.

Ingrid Salim is exactly correct. Having the teachers step forward would make a tremendous statement and ease the way for Measure C to pass, to at least keep the district from falling off into the abyss.

The district can handle a $3.5 million deficit, but a $10 million deficit would be a huge problem.

Earlier this week, the statewide CTA announced that they were backing the governor's tax plan.

"Educators know that California cannot continue to cut its way out of ongoing budget problems. We also know that not everyone in California is paying their fair share, and that's why we are supporting the governor's tax proposal, which taxes the wealthiest Californians in order to bring additional revenue to our schools, colleges and other essential public services," Dean Vogel, president of the CTA and a Davis resident said in a statement on Sunday.

"The governor's initiative is the only initiative that provides additional revenues for our classrooms and closes the state budget deficit, and guarantees local communities will receive funds to pay for the realignment of local health and public safety services that the Legislature approved last year," he continued. "It's time to put California back on track and this initiative is the best way to do that. It's the right choice for our students and their families, our communities and our state."

While many may have considered this a mere formality, in fact, there was a heated discussion as to whether or not support this tax measure, or the more risky Millionaire's Tax that more progressive elements in the state are supporting.

In the end, the CTA decided to back the governor's measure as the best way to get immediate general fund relief.

We can see the impact of the state budget on the school district. The structural deficit is created entirely by the fact that the district is not receiving COLA and not receiving any increase in money to fund step and column increases.

They have managed to get by the last few years, but the gap is growing even without additional funding cuts to the district.

The district has used these one-time stop gap measures hoping the economy would eventually turn around. But it hasn't.

At some point, the district really needs to start planning for the possibility, at least, that funding will never be restored and figure out how it wants to eliminate that structural deficit.

But for now, the district will have to find a way to get by one more year and hope that state fortunes turn around.

---David M. Greenwald reporting

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