Dear Friends: Proposition 23 is the measure that, when passed, will delay the implementation of California’s Global Warming Solution Act (AB32, or the state’s version of Cap&Trade) until reasonable employment levels are achieved. As I mentioned yesterday, a friend to this site notes that Governor Schwarzenegger and the elite legislature are threatening business-supporters of Prop. 23 with special taxes (hence the reason the state budget is still not passed). The money quote:
Very reliable sources tell us that the reason for the delay is that CA Gov. Schwarzenegger, with the collaboration of the State Legislature, is blackmailing potential business supporters of Proposition 23, the California Jobs Initiative that would delay implementation of AB32. They are threatening these supporters with reprisals of special taxes and other punitive measures if they support Prop 23. But once the budget is passed, it is no longer possible to include these taxes in the budget. This is a big reason why the budget is late.
According to the California Department of Finance, it costs the state $52 million a day for every day the state remains with no budget. Projects go uncompleted and teachers remain unpaid, among other unnecessary hardships. IOUs are issued from the state. Maybe that makes everything better.
The drastic drop in California’s economic output that will result from implementing AB (e.g., $4000 plus/year cost to families and $50,000 plus/year cost to essential small businesses) will result in a drastic drop in revenues for state agencies, including those responsible for providing social services and protecting the environment — proving to be more harmful to environmental health for California’s citizens. According to a Sacramento State University study, agencies which face cuts of up to 80% under AB 32 include the Department of Public Health, Department of Developmental Services, Children’s Medical Services and Rural Health and Department of Housing and Urban Development.
So, it is with interest that I read this piece on Hot Air today: Exclusive: EPW report shows new EPA rules will cost more than 800,000 jobs. The Senate’s Environment and Public Works Committee report had these tasty chestnuts:
* New standards for commercial and industrial boilers: up to 798,250 jobs at risk;
* The revised National Ambient Air Quality Standard for ozone: severe restrictions on job creation and business expansion in hundreds of counties nationwide.
* New standards for Portland Cement plants: up to 18 cement plants at risk of shutting down, threatening nearly 1,800 direct jobs and 9,000 indirect jobs;
* The Endangerment Finding/Tailoring Rules for Greenhouse Gas Emissions: higher energy costs; jobs moving overseas; severe economic impacts on the poor, the elderly, minorities, and those on fixed incomes; 6.1 million sources subject to EPA control and regulation;
If the EPA rules go through, you can thank California. We have been the incubator of the crappy eco-economy the rest of the nation is about to enjoy!