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4A Daily News – Monday, September 26, 2011 Opinion Support AB750 for a state-owned bank D NEWSAILY RED BLUFF TEHAMACOUNTY T H E V O I C E O F T E H A M A C O U N T Y S I N C E 1 8 8 5 Greg Stevens, Publisher gstevens@redbluffdailynews.com Chip Thompson, Editor editor@redbluffdailynews.com Editorial policy The Daily News opinion is expressed in the editorial. The opinions expressed in columns, letters and cartoons are those of the authors and artists. Letter policy The Daily News welcomes let- ters from its readers on timely topics of public interest. All let- ters must be signed and pro- vide the writer's home street address and home phone num- ber. Anonymous letters, open letters to others, pen names and petition-style letters will not be allowed. Letters should be typed and cannot exceed two double-spaced pages or 500 words. When several letters address the same issue, a cross section of those submit- ted will be considered for publi- cation. Letters will be edited. Letters are published at the discretion of the editor. Mission Statement We believe that a strong com- munity newspaper is essential to a strong community, creating citizens who are better informed and more involved. The Daily News will be the indispensible guide to life and living in Tehama County. We will be the premier provider of local news, information and advertising through our daily newspaper, online edition and other print and Internet vehi- cles. The Daily News will reflect and support the unique identities of Tehama County and its cities; record the history of its com- munities and their people and make a positive difference in the quality of life for the resi- dents and businesses of Tehama County. How to reach us Main office: 527-2151 Classified: 527-2151 Circulation: 527-2151 News tips: 527-2153 Sports: 527-2153 Obituaries: 527-2151 Photo: 527-2153 On the Web www.redbluffdailynews.com Fax Newsroom: 527-9251 Classified: 527-5774 Retail Adv.: 527-5774 Legal Adv.: 527-5774 Business Office: 527-3719 Address 545 Diamond Ave. Red Bluff, CA 96080, or P.O. Box 220 Red Bluff, CA 96080 California was a liberal show- case in the 1950s and '60s as Gov- ernors Earl Warren and Pat Brown responded to the population growth of the postwar boom with massive public infrastructure pro- jects providing the nation's finest public colleges, freeway system, and an aqueduct to carry water from northern mountains to the parched south. But all that was before Proposition 13 radically reduced the tax base, and made it virtually impossible to increase state taxes. Prop 13 was enacted by voter initiative in 1978 limiting real property taxes to one percent of the full cash value of the property and mandating a two-thirds majority in both legislative houses for any future increases of state tax rates. These tax savings simply drove property prices up, ultimately get- ting capitalized into additional debt service to the banks. So today, any rise in property taxes would lead to even more foreclosures and abandonments, reducing tax rev- enues even more as the state strug- gles to meet its budget. What the state needs is a new source of rev- enue, something that won't squeeze consumers, homeowners, or local business. A state-owned bank can pro- vide that opportunity by retaining the profits now going to private banks that hold California's assets. North Dakota, the one state that currently has its own bank, is the only state to be in continuous bud- get surplus since the banking crisis began. North Dakota's balance sheet is so strong that it recently reduced individual income taxes and property taxes by a combined $400 million and is considering further cuts. It also has the lowest unemployment rate, lowest credit card default rate in the country, and it hasn't had a bank failure in the last decade. Working with private banks, revenues from the Bank of North Dakota (BND) have been a major boost to the state budget. The bank has contributed over $300 million in revenues over the last decade to state coffers, a substantial sum for a state with a population less than one-tenth the size of Los Angeles County. Although North Dakota is an oil state, from 2007 to 2009 the BND added nearly as much money to the state's general fund as oil and gas tax revenues did. Over a 15-year period, according to other data, the BND has con- tributed more to the state budget than oil taxes have. California has the largest state economy in the nation, yet without a state-owned bank, is unable to steer hundreds of billions of dol- lars in state revenues into produc- tive investment within the state. Instead, California deposits its many billions in tax revenues in large private "too big to fail" banks which often lend the funds out-of-state, invest them in speculative trad- ing strategies (including derivative bets against the state's own bonds), and do not remit any of their earnings back to the state treasury. Mean- while, California suffers from constrained private credit conditions, unem- ployment levels well above the national aver- age, and a stagnation of state and local tax receipts. Thankfully, Califor- es begin receiving affordable loans -- some as low as 1% per annum - - from state lending pro- grams targeted for small businesses and manu- facturing firms. Richard nia is now one step clos- er to creating small busi- ness and manufacturing jobs with loan programs funded by the state's own credit. Last week the Legislature gave final approval to Assembly Bill 750 which forms a commission to examine the problems of relying on Wall Street banks for credit while allowing the state's credit to be lent outside of California. The proposal is for California to create its own lending programs that will jumpstart job creation. Among other things, the commission would examine the scope of job creation that could occur once manufacturers and small business- If California were to fund a pool of commer- cial loans at the same per capita rate ($1,507) as North Dakota, over $50B is projected to be injected into our econo- my, funding over 350,000 jobs at $150K each. Mazzucchi Positive Point The bill has one last stop - on Gov. Jerry Brown's desk - before it can become law. Please join the California Asso- ciation of County Trea- surers and Tax Collec- tors, California Nurses Association, and California State Grange by asking Governor Brown to support AB750 for a state-owned bank. Richard Mazzucchi is a retired research engineer specializing in energy efficiency and renewable energy. He now makes his home in Los Molinos, where he is striving to manifest a sustainable and spiritual lifestyle and operate a BBQ equipment and supply business. He can be reached at living-green@att.net. Your officials STATE ASSEMBLYMAN — Jim Nielsen (R) State Capitol Bldg., Room 6031 Sacramento, CA 95814 (916) 319-2002; Fax (916) 319-2102 STATE SENATOR — Doug LaMalfa (R) State Capitol Bldg., Room 3070 Sacramento, CA 95814 (916) 651-4004; Fax (916) 445-7750 GOVERNOR — Jerry Brown, State Capitol Bldg., Sacramento, CA 95814; (916) 445-2841; Fax (916) 558-3160; E-mail: gover- nor@governor.ca.gov. U.S. REPRESENTATIVE — Wally Herger (R), 2635 Forest Ave. Ste. 100, Chico, CA 95928; 893-8363. U.S.SENATORS — Dianne Feinstein (D), One Post Street, Suite 2450, San Francisco, CA 94104; (415) 393-0707. Fax (415) 393-0710. Barbara Boxer (D), 1700 Montgomery St., Suite 240, San Francisco, CA 94111; (510) 286-8537. Fax (202) 224- 0454. Echoes of larger issues popping up at fair Commentary Approaching Sunday morning and column-writing time, several themes float around my brain. For instance, I could submit a paean to President Obama, celebrating his marvelousness and his grand, insightful and brilliant talents for leading this country where it needs to go to be restored to less-than- greatness. I could celebrate his inspired words, share his elevated vision, accept his stated plans as the smartest way out of our nation's current predicament and, not only do my best to advance his cause, but also make sure that those who believe negatively, I mean dif- ferently, are advised of their poor thinking and of their need to desist from their ill-conceived and coun- terproductive opposition to Presi- dent Obama and the Democrats standing with him. I could do all that in long sentences filled with evidence of my superior intellectu- al abilities to see how, by spending and taxing more, America becomes richer and fairer, and how, by putting critters, plants, nature, and arbitrary limits on CO2 to less than 0.04 percent of our atmosphere – by putting all of that above human activities, we will elevate our humanity and serve Obama's purposes – America's economy and prosperity be damned. However, since such shameless cheerleading, boosterism, ideolog- ical water-carrying and administra- tion-defending public relations efforts have already been provided to readers on this page, I can dis- pense with that column. One thing that I thought was revealing about the respective political party booths in the Tyler- Jelly building was the display, or lack thereof, given to the Republi- can's and Democrat's elected lead- ers. Prominently displayed by Republicans were large photos of our State Senator Doug LaMalfa, our Assemblyman Jim Nielsen, and Congressman Wally Herger, who've gratefully received solid electoral approval from the voters of Tehama County. In past booths, local Republicans have proudly shown full-sized cutouts of Presi- dent Bush and Sarah Palin. For their part, while California voters have delivered similar solid votes to United States Senators Bar- bara Boxer and Diane Feinstein, as well as a massive vote for President Obama in 2008, our local Democ- rats had not a single photo or poster of any of them displayed as of Sat- urday night. Surely, someone among their members has a cher- ished "HOPE" poster with Obama's uplifted, jaw-jutting visage. I know I've seen campaign photos catching Barbara Boxer with a wee smile gracing her face, offsetting her beady little eyes (uncharitable of me, I know). I've rarely seen a photo of Diane Feinstein that does- n't convey warmth and cheerfulness in a grandmotherly way. And yet, walking by the Democrat's booth, you would have seen no such posters. Curious, indeed. Among the high points and busiest periods at our booth, were visits by Doug LaMalfa and Jim Nielsen, as well as Republican Congressional candidate Gregory Cheadle (correction: he is a cousin of actor Don Cheadle) who, I was tickled to find out, had appeared in one of my favorite shows, Fox's "24," and in "Gray's Anatomy." Not the least of those busy moments were several visits by Miss Tehama and hon- ored Young Women of Achievement making their diplomatic circuit of the fair booths. Those young women, together with their director who explained what goes into the years-long process of activities and accom- plishments leading up to the honor of wearing their sashes, gave me a sense of hope and opti- mism for our youth. Speaking of "the yoots" (as we said in Chicago), I shared my observation of the mid- way masses late in the evening with several folks who nodded in agreement. It went something like this: Gazing upon the oddly clothed, coifed, sometimes tat- tooed and poorly-spoken crowds of teens, can we more mature (I just got my first senior discount at the fair) citizens really base our future social security and Medicare promises, given that they are essen- tially pay-as-you-go programs, on the work ethic and productivity of those wandering in their little packs around the carnival games and rides? Hmmm. Returning to the dignitaries that visited our booth, what stood out most were tales from citizens of challenges put upon some of our business people for the temerity of thinking they can be profitable and productive in California. An auto body shop owner relayed the near- ly unbelievable expenses he has had to incur to comply with air quality rules, including five figure exhaust tech- nology to account for every minute speck of paint over-spray. Another business Don Polson The way I see it owner passed an idea along that would reduce the burden of workers compensation insurance on companies. The fee assessed on employers for insurance against injury to employees is based on their total com- pensation, including sick days, paid holidays and vacations – days and periods during which they are, by definition, not working. Removing those monetary values from the equation will save many thousands of dollars for a business- man employing 16 persons, and deprive the insurance company of money they should not be getting anyway. Makes sense to me. Tea Party Patriots calendar note: Tuesday's gathering will be a pot luck picnic, not at the grange but at Forward Park on north Monroe Street. It will also start a half hour early, at 5:30; if you've dropped a few meetings, please feel free to renew acquaintances with your Tea Party friends. Don Polson has called Red Bluff home since 1988. He can be reached by e-mail at donplsn@yahoo.com.