Debate About Fiscal Problems Continues
Speaking at a Sacramento high school on Tuesday, Senate pro Tem Don Perata (D-Oakland) declared that leaders in his party are willing to delay passage of the state budget if that is what it takes to achieve what he refers to as the only reasonable solution to California’s multibillion-dollar shortfall, raising taxes.  In addition to closing $2.5 million in tax “loopholes” as outlined by the state legislative analyst last week, Perata announced that he is working on a plan to double that amount, possibly hiking sales taxes, tobacco taxes or taxes on the wealthy.  Standing beside his successor, Darrell Steinberg (D-Sacramento), Perata steadfastly rejected the governor’s proposal to cut school spending 10 percent across the board – a move that would cut almost $5 billion from K through 12 education, along with $650 million from the University of California (UC) and California State University (CSU).  That message was reiterated in an open letter to the governor and lawmakers on Thursday from Lt. Gov. John Garamendi and a coalition of state education leaders, including the California Teachers Association, UC, CSU, Community College League of California, and the California School Employees Association.  Meanwhile, Republican leadership stuck to its core, rejecting the idea of raising taxes to deal with the fiscal crisis.  Almost every Republican lawmaker has signed a “Taxpayer Protection Pledge,” vowing to “oppose and vote against any and all efforts to increase taxes,” setting the stage for a confrontational and potentially prolonged budget debate, which, due to the two-thirds approval requirement, will require a bipartisan agreement.

Process Begins for Redistricting Measure
Since he arrived in office, one of the governor’s primary goals has been to enact redistricting reform that will create more competitive general elections.  That process is now underway as the governor has formed an unlikely bipartisan agreement with former Democratic Controller Steve Westly.  The two are currently gathering signatures and campaign contributions as they attempt to place the measure on the November ballot.  Nearly all of the $542,500 raised so far has come from traditionally Republican backers, a dynamic that will have to change in order for the measure to be seen as bipartisan.  The measure would transfer the power to draw political boundaries from the Legislature to a 14-member citizens commission consisting of five Democrats, five Republicans and four independent or minor-party voters.  The panel would carve out legislative and Board of Equalization districts, but not congressional districts, to avoid what could have been a very expensive shooting match with House Speaker Nancy Pelosi, who views an independent committee as a threat to her desire to increase her majority.

Support Needed for Annual Life Sciences Day
On Wednesday, April 9, leaders in biotechnology, medical devices, pharmaceuticals and biomedical research as well as the patients whose lives have been impacted by medical innovation, will convene in Sacramento to build support for the issues that matter most to California's life sciences industry. Attendees will participate in face-to-face meetings with legislators and state government officials; network at a luncheon featuring a keynote address by Sacramento Bee Public Affairs Columnist Dan Weintraub; and join legislators and their staffs at a closing reception at the historic Sutter Club.  Given California’s current fiscal situation as well as recent reports about the state of our education system, California Life Sciences Day is a great opportunity for our industry to highlight the enormous impact we have on the economy and on public health.  We encourage your participation and urge you to register prior to the April 2 deadline.  CHI would like to thank the sponsors of the event: Abbott Laboratories, AdvaMed, Amgen, Amylin Pharmaceuticals, Astellas Pharmaceuticals, BayBio, BIO, BIOCOM, Boston Scientific, California Healthcare Institute, Celgene, Gen-Probe Inc., Genentech, Gilead Sciences, LifeScan, NVCA, Pfizer, PhRMA, and Roche.  For more information, please visit www.lifesciencesday.org or contact David Burt, CHI legislative director at 858.551.6677 or burt@chi.org.