Taxable Talk

The California Department of Finance thought it had a good idea to finance pension debt. Just issue $525 billion in bonds. Only one problem, the State Constitution says that all large loans (defined as anything over $300,000) must be approved by the voters.

The Department of Finance thought that these bonds, technically refinancing existing debt, didn't require approval. Sacramento County Superior Court Judge Raymond Cadei felt otherwise. So voter approval still means voter approval. The Department of Finance plans an appeal.

As an aside, had this been presented to the voters as refinancing of existing debt at a lower interest rate, it is likely it would have been approved.

Coverage via AP

Nissan Motor Company will move its US headquarters from Gardena (suburban Los Angeles) to Williamson County, Tennessee (suburban Nashville) in order to save money. Nissan CEO Carlos Ghosn noted, "The costs of doing business in Southern California are much higher than the costs of doing business in Tennessee." The move will directly cost 1300 jobs in Southern California. Jack Kysar, chief economist at the Los Angeles Economic Development Corporation estimates that it will cost an additional 1500 jobs through indirect impacts.

We wonder if the Democrats in the legislature have any thoughts about keeping business in California given their proposals to increase California's already high income tax rates.

News Coverage: Washington Post (AP Story)

...unless you live in Chicago (well, there's no election in Illinois on Tuesday).

Californians will go to the polls on Tuesday to decide several propositions. There are also some local ballot initiatives. Here in Orange County, we have Propositions B, C, D & E. These take part of the $0.005 sales tax approved by the voters (Proposition 172) and reallocate it (except for Proposition B, which leaves the allocation alone).

If you're confused by these propositions, you're not alone. The firefighters gathered signatures to put Proposition D on the ballot (this increases the allocation to firefighters and decreases the allocation to the Sheriff). Guess who is against Proposition D?

The supervisors apparently didn't like Proposition D, either, so they added B, C and E to the ballot, in an effort to confuse the voters (it's working, too). One note about the OCFA (Orange County Fire Authority)--the firefighters of Orange County are among the highest paid in the country.

But whatever you do, exercise your right and vote in tomorrow's election. Make sure your voice is heard—take a few minutes and vote.