[courtesy of California Progress Report]

By Frank D. Russo

The California State Assembly yesterday passed a package of three bills, almost exclusively with the votes of Democratic members, that are being hailed as the most comprehensive and far reaching state legislation dealing with mortgage and lending reform in the country.

AB 1830 by Assemblymember Ted Lieu (pictured above presenting the bill) is the centerpiece of Assembly Democrats to address the mortgage crisis that has led to hundreds of thousands of foreclosures, tightened credit markets internationally, and contributed heavily to the State budget deficit.

It will make sweeping changes to the mortgage industry, all of which shared some part in causing the current mortgage meltdown. AB 1830 would eliminate certain bonuses for mortgage brokers who steer customers into high-risk loans, as well as require lenders to qualify borrowers based on their ability to pay over the life of the loan, not just the initial “teaser” rate. This bill would also ban types of risky practices, such as offering negative amortization loans and prepayment penalties, which have stopped many borrowers from refinancing risky loans.

[courtesy of California Progress Report]

By Frank D. Russo

The California State Senate has just adjourned, having failed to pass SB 1665 (Machado) which would have authorized $7 billion in bonds to pay for prison health care construction that the federal court receiver indicated he needs in order to bring California’s system into constitutional compliance with orders in cases pending against the state. By a vote of 24 to 15, with 27 votes needed for the two-thirds required for passage, the Senate failed to pass this bill, despite passages from a letter from the receiver read on the Senate floor by Senator Machado. The only votes for the bill came from Assembly Democrats.

The stage is set, given the reaction of the receiver, which his office has indicated will be his only public commentary today, for the receiver to go to court for an order that funds be immediately paid by the state of California, thus worsening the state’s deficit for the current fiscal year and severely impacting it in the 2008-09 fiscal year beginning July 1 which has an estimated $15 billion deficit without further cuts or revenue.

[courtesy of The California Majority Report]

History will be made today at the state capitol when current Assembly Majority Leader Karen Bass (D-Los Angeles, District 47) is sworn in as the first African-American female Speaker of the California Assembly. She will be the first African-American female to hold such a high legislative post anywhere in the United States. Speaker-elect Bass will have just about 24 hours before she will know the extent of the state’s financial crisis. Governor Schwarzenegger is scheduled to release his revised budget proposal Wednesday afternoon.  Speaker-elect Bass says, regarding the state budget deficit, she’s concerned but hopeful that a balanced approach of spending cuts and new revenues can be hammered out.

by EmilyDu [courtesy of Calitics - Front Page]

From the Courage Campaign

The most extreme high priests of the tax cut cult operate right here in

California. Because Democrats do not hold a two-thirds majority in our

state legislature, a small minority of Republicans is able to hold

Californians hostage to a $20 billion state budget deficit, refusing to raise taxes on the super-rich.

It gets worse. Much worse. While California's future is being put in grave jeopardy, the tax cut cult is refusing to close a tax loophole for yacht and private jet owners.

Schools closing. Social services slashed to the bone. And right-wing Republicans are letting the uber-wealthy off tax-free on yacht and private jet purchases. It's no wonder the California Republican Party has been re-branded as the "Yacht Party" by the netroots.

To increase the pressure on Republicans in Sacramento to close this

yacht tax loophole, we need to make this "Yacht Party" brand stick. That's

why the Courage Campaign and California Nurses Association have just

teamed up to produce a new 60-second TV ad that strips naked the

[courtesy of The California Majority Report]

Legislative leaders have talked about a long hot summer in Sacramento, but I don't think this is what they meant. Check out the latest Courage Campaign "Yacht Party" ad below, but first, here's a letter from Arianna Huffington, including information on how you can get a rush autographed copy of Huffington's latest book, "Right is Wrong":

Dear Friend,

The tax cut cult.

That's what I call Republicans in "Right is Wrong", the new book I just wrote about how the right-wing lunatic fringe has hijacked America.

Unfortunately, the most extreme high priests of the tax cut cult operate right here in California. Because Democrats do not hold a two-thirds majority in our state legislature, a small minority of Republicans is able to hold Californians hostage to a $20 billion state budget deficit, refusing to raise taxes on the super-rich.

It gets worse. Much worse. While California's future is being put in grave jeopardy, the tax cut cult is refusing to close a tax loophole for yacht and private jet owners.
Schools closing. Social services slashed to the bone. And right-wing Republicans are letting the uber-wealthy off tax-free on yacht and private jet purchases. It's no wonder the California Republican Party has been re-branded as the "Yacht Party" by the netroots.

read more »

[courtesy of The California Majority Report]

Does Gov. Arnold Schwarzenegger want the legislature to pass a budget this year? It sure doesn't seem like it judging by his foot-in-mouth disease of the past several days that's irking lawmakers of both parties.

On the heels of playing a week-long guessing game about the size of the state budget deficit, which chafed both Democrats and Republican legislators, Schwarzenegger tried to make a funny at a forum in LA by mocking legislators representing small communities.

"Some of them come from those little towns, you know what I am saying, they come from those little towns and they don't have that vision yet of an airport or of a highway that maybe has 10 lanes or of putting a highway on top of a highway," Schwarzenegger said. "They look at you and say, 'We don't have that in my town. What are you talking about?' So they are kind of shocked when you say certain things. So I like them to travel around."

There's more...

Image courtesy eyetwist.

by Brian Leubitz [courtesy of Calitics - Front Page]