From Assembly Speaker John Perez, D-Los Angeles:

“The Governor’s May Budget Revision is another key milestone in our effort to pass a balanced on-time budget by June 15th. We appreciate the Governor’s commitment to maintaining the fiscal stability that has come from an improving economy, legislative Democrats making tough but necessary budget cuts, voters approving the majority-vote budget and voters standing with Democrats in supporting temporary tax revenues. We will review the Governor’s proposals and revenue projections, along with the LAO’s revenue projections, in depth, and his revised budget will be thoroughly discussed throughout the Budget committee and subcommittee process. Assemblymembers will review the Governor’s proposal through the prism of principles outlined in our Blueprint for a Responsible Budget: continuing fiscal responsibility, strengthening the middle class, and delivering effective, efficient services for Californians. On the whole, the Governor’s framework and the Assembly’s Blueprint seem to track well, and we’ll spend the next month reconciling our priorities.”

From Assembly Republican Leader Connie Conway, R-Visalia:

“Governor Brown today put forward a revised state spending plan that I believe charts a realistic path forward in meeting the budget priorities of hard-working taxpayers. Republicans share the Governor’s commitment to paying down state debt and holding the line on new spending. It is our hope that Legislative Democrats will follow the Governor’s lead in making fiscal discipline a core budget principle. We must resist the temptation to blow through the surplus using one-time money for ongoing programs and reverse the progress we’ve made in closing the deficit.”

From state Senate President Pro Tem Darrell Steinberg, D-Sacramento:

“Overall, this May Revision is a refreshing change. For the first time in four years, we no longer have to stare at enormous deficits and make agonizing decisions on which cuts will do the least harm to our children, to the poor, and to middle class families.

“That’s the politically correct thing to say, and it happens to be true.

“I agree we must aggressively pay down our state’s debt and set aside money for a reserve, but there’s a disappointing aspect to this proposal. It’s important that we also begin making up for some of the damage done to tens of thousands of Californians. Unless the Legislative Analyst has a different conclusion, the Governor proposes few if any resources to restore cuts made over the past few years to the courts, and to health and human services.

“The Governor’s Local Control Funding Formula is the right policy direction, but our serious concern about how it’s accomplished remains. The concentration grants treat thousands of disadvantaged students unequally. It also fails to expand the proven success of career pathway programs which can reduce dropout rates and improve our kids’ readiness for the workforce by combining rigorous curriculum that’s also relevant to students’ career goals.

“The budget debate begins in earnest. I look forward to a deeper analysis of revenue projections in the coming weeks while we continue to work with the Governor on the best budget for California’s economic recovery and its people.”

From state Senate Republican Leader Bob Huff, R-Brea:

“The Governor has revenue estimates that are lower than anyone expected, largely due to the increased payroll tax suppressing the economy. Higher tax rates and continuing high unemployment mean less money in people’s pockets and less money to propel the economy.

“We have common ground with the Governor in a belief that we cannot return to a culture of overspending that drives new budget crises. Governor Brown referred to this as a ‘Call for Prudence,’ we would call it ‘Common Sense.’ It seems that the Governor’s biggest budget challenge will be in restraining legislative Democrats and their growing wish list of new spending.

“Senate Republicans continue to believe that the State must meet the promises of the voter approved Proposition 30 tax increase measure by increasing funding for K-14 and higher education. We also believe that the Governor should support our efforts to allow Californians to vote on the bi-partisan rainy day reserve fund that had been previously scheduled for the 2012 ballot. Implementing a voter approved rainy day reserve requirement is the best way to protect against future budget crises and ensure stability.

“The Legislature should spend less time on a growing list of additional tax proposals such as soda taxes, oil severance taxes, tobacco taxes and several property tax measures that undermine historic Proposition 13 protections and instead focus on the growing public safety crises caused by the passage of AB 109, the Governor’s Public Safety Realignment scheme that has shifted 65,000 criminals from state prison to our local communities and neighborhoods.”

From California Chief Justice Tani Cantil-Sakauye:

“I’m disappointed that the Governor’s revised budget proposals provide no more fiscal relief to the courts. Given the state’s current fiscal condition, I had hoped for more effort to help stop the downward spiral of the judicial branch budget. Courts across the state are already closing courthouses, courtrooms, and reducing the hours they serve the public. Without reinvestment in the courts, these terrible impacts will only expand, and the poor and middle class residents who rely on the courts to resolve issues that affect their lives and livelihoods will be adversely affected, as well those businesses still digging out from the effects of the great recession. We need adequate, ongoing funding for the courts that will permit us to reverse the damage caused by five years of budget cuts. The reforms I’ve put in place have helped save money and created more efficiencies. We needed critical support a year ago from the other two branches and now the need for justice is urgent. I am heartened by Speaker Perez’s comments last week about the need to begin reinvesting in the courts. I am optimistic that the Legislature and the Governor can work toward reversing some of the adverse impacts on access to justice before a budget bill is passed and signed.”

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Someone who saw the item I posted earlier today about Rep. Eric Swalwell’s first-quarter fundraising prowess has just shared information that seems to cement the notion that the freshman has been embraced by the very Democratic machine that opposed him last year: House Minority Leader Nancy Pelosi will be headlining his fundraiser in May.

Tickets to the Monday, May 6 event at a Capitol Hill condo will cost $500 to $2,500 for individuals and $1,000 to $5,000 for political action committees.

That’s just two days after Pelosi, D-San Francisco is scheduled to headline a far cheaper Walnut Creek fundraiser for Rep. George Miller, D-Martinez.

Pelosi last year had endorsed Rep. Pete Stark for re-election to a 21st term, but that and other powerful endorsements didn’t keep Swalwell from unseating the irascible incumbent in November. Some had speculated he might get a cold shoulder upon arriving in Washington from those who’d opposed his candidacy, but several signs – including this fundraiser, as well as his January appointment as an assistant minority whip – indicate all has been forgiven.

That’s potentially bad news for state Senate Majority Leader Ellen Corbett, D-San Leandro, who also had hoped to succeed Stark in the 15th Congressional District and has a campaign committee that’s raising funds. Corbett may well have the support of some local Democrats and labor unions, but if people of Pelosi’s stature keep raising money for Swalwell, he’ll be tough for anyone to beat.

The state Department of Toxic Substances Control’s director promised Monday that she’ll work with state Senate investigators to explore claims that the agency hasn’t properly enforced regulations, lawmakers said.

Senate Majority Leader Ellen Corbett, D-San Leandro, said she and state senators Kevin de Leon, D-Los Angeles, and Ricardo Lara, D-Long Beach, met today with DTSC Director Debbie Raphael regarding recent claims raised in a Consumer Watchdog report and subsequent media stories. The senators have asked the Senate Office of Oversight and Outcomes to launch a probe.

“We must get to the bottom of questions prompted by the Consumer Watchdog report,” Corbett said in a news release. “I appreciate that Ms. Raphael welcomes transparency and accountability. I look forward to the Senate investigation and making whatever changes may be necessary for DTSC to effectively do its job.”

Butter the popcorn and get ready for some interesting viewing: Potential rivals for an East Bay House seat will share the podium at a Democratic Party event next month in Hayward.

State Treasurer Bill Lockyer – who’s had a tough year of his own – is scheduled to keynote the Eden Area United Democratic Campaign’s annual St. Patrick’s Day dinner, but Rep. Eric Swalwell, D-Pleasanton, and state Senate Majority Leader Ellen Corbett, D-San Leandro, are among the other speakers.

Rep. Pete Stark, D-Fremont, was among the speakers at last year’s dinner, and he had the Eden Area UDC’s support in last year’s 15th Congressional District election; his campaign manager even worked out of the UDC’s office in Hayward for a while. Swalwell succeeded in unseating Stark, after Corbett – along with former Obama administration official Ro Khanna – declined to challenge Stark.

Khanna is now considering a 2014 run for the 17th Congressional District seat now held by Rep. Mike Honda, D-San Jose. But Corbett – who is term-limited out of the state Senate in 2014 – has left open the possibility that she’ll challenge Swalwell: “I would be honored to serve in Congress, but it’s too early to discuss 2014,” she said in November.

So Swalwell will be addressing a room full of people who just months ago were working hard to defeat him, and he’ll share the podium with someone who might challenge him next year. Fun for everyone!

The event is scheduled for 5:30 to 9 p.m. Thursday, March 21 in the Carpenters’ union hall on Mattox Road in Hayward; tickets are available online.

My esteemed colleague Carla Marinucci of the San Francisco Chronicle has just posted a blog item about Ro Khanna moving toward a run in the 17th Congressional District, now represented by Mike Honda, rather than the 15th District, now represented by Eric Swalwell.

Khanna, you’ll recall, is the former Obama Administration Commerce Department official who raised an eye-popping $1.2 million in the last quarter of 2011, but chose not to challenge Rep. Pete Stark in 2012. Swalwell did, and now he’s Congressman Swalwell while Khanna is cooling his heels at Silicon Valley law powerhouse Wilson Sonsini and deciding on his next move.

Some had assumed Khanna, 36, of Fremont, would mount a 2014 challenge to the freshman Swalwell, 32, of Dublin, but it’s no secret that Khanna’s congressional campaign committee’s statement of organization specified neither the year in which he would run nor the district.

I’d heard the same rumors as Carla, and so this was among the topics I raised while having coffee with Khanna this morning at Suju’s on Thornton Avenue in Fremont, and he’s still playing it cagey – all he would say is that he’s considering all his options.

From where I sit, looking to Honda’s seat instead of Swalwell’s might make a lot of sense for Khanna. The 17th District is much more the heart of Silicon Valley than the 15th District, and Khanna’s expertise is in manufacturing, entrepreneurialism and innovation – hence his recent book on those topics.

Also, the 17th District is the continental United States’ first majority-Asian-American district, and the source of much of the money that Khanna raised in that explosive final quarter of 2011. (In fact, Honda lent his name to one of the bigger fundraisers Khanna had that season, a few years after Khanna had donated $1,000 to Honda’s 2008 campaign.)

There are a few ways this could go. Honda’s interest in an Education Department post during Obama’s first term was no secret, and it’s not beyond the pale that he could be interested in an Obama Administration post now – if not in education, than maybe the Peace Corps (of which Honda is a proud alumnus) or something that utilizes all the experience Honda, 71, has accrued in advocating for minority political action and civil rights (the EEOC?)

Or, Honda could seek an eighth House term in 2014 and Khanna could run against him. California’s top-two primary and that district’s voter registration ratio (44.4 percent Democrat, 19.1 percent Republican, 31.7 percent no-party-preference) make it likely they’d prevail in the primary and face each other in November.

Khanna could make a much stronger play for the district’s nonpartisan and Republican voters than Honda can, as Swalwell did against Stark. But I don’t think this would look much like the Stark-Swalwell smackdown of 2012, which went very negative; though Stark and Honda both are arch-liberals beloved by labor, Honda’s by most accounts is a more likeable personality and going negative on him might be counterproductive.

Still, Khanna could make a case that Honda – although a good and praise-worthy liberal Democrat – hasn’t been as effective in representing the young, tech, forward-looking voters and innovative business interests of Silicon Valley as Khanna could. It would be interesting to see whether Khanna can fire up his fundraising again in a meaningful way; what campaign consultants he can attract; and what endorsements he gets, particularly from local officials and from other members of Congress.

If Khanna does run in the 17th District, Swalwell heaves a huge sigh of relief. He’ll still probably face a challenge from fellow Democrat Ellen Corbett, who’ll be term-limited out of the state Senate in 2014; she opened a campaign committee last year too, and with fundraising not nearly so robust as Khanna’s, she too chose not to challenge Stark. “I would be honored to serve in Congress, but it’s too early to discuss 2014,” she told me in November.

If California manufacturers have it, they ought to flaunt it, says State Senate Majority Leader Ellen Corbett.

Corbett, D-San Leandro, introduced a bill Monday to create a “Made in California” program so manufacturers can capitalize on Golden State’s global reputation, hopefully serving as an aid in marketing. SB 12 would put this new program under the purview of the Governor’s Office of Business and Economic Development, which would ensure that only goods actually made here can use the label.

“I am committed to helping our economy grow and doing everything I can to generate jobs in California,” Corbett said in a news release. “This program is a smart way to boost business for California companies and inform consumers about which products come from our state.”

Corbett said the idea is similar to the “California Grown” program highlighting agricultural products produced here; the year after California Grown was launched a decade ago, sales of the state’s agricultural products increased by 7 percent.

Alameda County and Los Angeles must now collect and publish information on Internet-related crimes, under an East Bay lawmaker’s bill signed into law Thursday by Gov. Jerry Brown.

Senate Bill 561 by Senate Majority Leader Ellen Corbett, D-San Leandro, requires the Los Angeles County Sheriff’s Department and the Alameda County District Attorney’s Office to collect data on arrests and prosecutions that involve the misuse of personal information gathered on the Internet. It also directs the state Justice Department to publish that data on its website.

The aim is to create a more accurate picture of the scope and nature of Internet-related crime, which can help lawmakers and law enforcement combat such activity.

“It is high time to track the criminal activity we know is occurring via the Internet, social networking websites and smart phones,” Corbett said in a news release. “These wonderful technological advances have transformed our society for the better, but they have also presented criminals with new opportunities they are actively exploiting. We need to understand exactly what is happening so we can respond appropriately.”

Corbett said mapping connections between crime and Internet is particularly important for protecting children, as 95 percent of children aged 12 to 17 spend time online; about 80 percent of them visit social-networking sites. Even use among young children is on the rise, with kids up to age 5 now accessing the Internet at least once a week.

State Senate Majority Leader Ellen Corbett, D-San Leandro, has decided not to run against Rep. Pete Stark, D-Fremont, in the newly drawn 15th Congressional District this year. Here’s the statement she issued moments ago:

“I thank all my wonderful supporters for their encouragement to run for Congress, but before I do that, I want to finish the job I started in the state Legislature, where I’m fighting to support schools, protect consumers, create jobs and improve the lives of all Californians. I plan to continue my work as Senate Majority Leader and complete my term in the state Senate, and I look forward to continuing to serve my East Bay constituents in the future.”

Corbett had said months ago that she was committed to finishing her state Senate term and respected Stark, but later acknowledged she was exploring the possibility of a 2012 run.

Dublin Councilman Eric Swalwell, another Democrat, is challenging Stark this year, and completed his nomination filing earlier this week. We’re still waiting to see whether conservative independent Chris Pareja of Hayward completes his filing.

And Silicon Valley attorney and former Obama administration official Ro Khanna of Fremont hasn’t taken out any papers to run this year, despite having shattered fundraising records in 2011′s final quarter.

State Senate Majority Leader Ellen Corbett issued a news release this morning saying she celebrated India’s Republic Day today by honoring several prominent Indian Americans from her district in a special ceremony on the Senate floor.

“On this important day, we pay tribute to India’s independence, its constitution and its thriving democracy, and we remember those who sacrificed their lives to make the Republic of India a reality,” Corbett, D-San Leandro, said in the release. “I thank the Indo-American community in my district for sharing the joy of this wonderful celebration with us and reminding us of its significance, and for its dedication to core community values of family, service, knowledge and peace.”

Hmm. I don’t recall Corbett ever having moved before to recognize Republic Day in the Legislature. In fact, I checked my archive of all releases received from local lawmakers (in Corbett’s case, back to the start of 2009) and the only hit I get on anything regarding the Indo-American community is her honoring Union City’s Paddy’s Coffee House – owned by Bombay native and Fremont resident Paddy Iyer – as her district’s 2011 small business of the year.

Now, far be it from me to ascribe ulterior political motivations, but might Corbett’s recent praise of the Indo-American community have anything to do with her exploring a run in the newly drawn 15th Congressional District, which has a significant Indo-American population? And, by the way, where an Indo-American candidate shattered fundraising records by pulling in $1.2 million in the last quarter of 2011, even though he insists he’s not challenging incumbent Pete Stark in 2012?

Nah, that can’t be it. Indo-Americans do contribute a lot to the communities in her district, and there’s nothing wrong with recognizing that. Besides, Corbett told me in October that she’s committed to finishing her state Senate term, which expires in 2014: “I think it’s important for people to complete their terms and finish what they set out to do when they were first elected.”

Then again, Stark, 80, told me yesterday that because fellow Democrat and Dublin Councilman Eric Swalwell is challenging him this year, “there will be others” who jump into the race during the mid-February through mid-March nomination period for the June 5 primary.

“Understandably, they’ve told me if one person gets in, they all have to get in,” he said, lest he suddenly fall ill and Swalwell be the only other Democrat on the ballot. “From my standpoint, that’s great – you get four or five candidates in there and I win. They’ve all got to hope that I win, because they wouldn’t want any of the other wannabes to win and knock me out – they’d all be second-string then.”

Anyway, for the curious, India’s Republic Day commemorates Jan. 26, 1950, when the Constitution of India took effect and officially became that nation’s ruling document. Corbett flew the flag of India on the Senate floor for the occasion, and recognized several Indian American businessmen and public officials from her district, including acting Fremont Mayor Anu Natarajan, one of the first Indian American woman mayors in the nation.

UPDATE @ 10:57 A.M. THURSDAY FEB. 2: Just talked to Corbett about something else, and she said that she has commemorated India’s Republic Day every year she has been in the state Senate. She also said she attends several commemorations of the day each year in the district. So… my bad. She also said she has not yet decided whether to run for the 15th Congressional District in 2012 or in 2014.

The Legislative Analyst’s Office today issued a fiscal forecast showing California’s state budget deficit for the fiscal year starting next July 1 will be almost $13 billion.

If the state Finance Department concurs next month, this could mean $2 billion in mid-year “trigger cuts” this year, mostly in the K-12 and higher education budgets.

From Gil Duran, spokesman for Gov. Jerry Brown:

“California’s budget gap is the result of a decade of poor fiscal choices and a global recession. This year, we cut the problem in half. Next year, we’ll continue to make the tough choices necessary until the problem is solved.”

From Assembly Speaker John Perez, D-Los Angeles:

“Today’s announcement by the LAO is indicative, but not determinative of the final decision on whether the budget triggers will be pulled next month and we must wait until the Department of Finance December forecast, which will have up to date information and certainly may alter the trigger calculation to lessen the level of trigger cuts.

“Given the uncertainty in the global economy, we included these triggers as a mechanism to ensure California’s fiscal solvency through this budget year. We approved budget solutions that eliminated seventy five percent of the ongoing structural deficit over time, and we have more work to do to accelerate the elimination of the remainder of that deficit.

“Ultimately, we all know that the best long-term solutions to our budget challenges are rebuilding our economy and putting Californians back to work, and we will continue working to build on the progress we’ve made with respect to job creation in the coming year.”

From state Senate Majority Leader Ellen Corbett, D-San Leandro:

“I am deeply troubled by this forecast and the prospect of making another round of deep cuts to public schools and higher education. The Legislature and governor should explore all of our available options, and do everything we can, to prevent mid-year cuts.

“The bottom line is our public schools and institutions of higher education are woefully underfunded, and we must find a way to reverse this trend of cutting their support if we are serious about providing Californians and their children with a bright future.”

From Assembly Budget Committee Vice Chairman Jim Nielsen, R-Gerber:

“The Legislative Analyst’s Office report indicates, as predicted, that the budget passed by Democrats with only a majority vote was overly optimistic and based on shaky assumptions. In this budget, state spending is predicted to increase by 12 percent by 2012-2013. It is clear that state spending has not been brought under control, and that’s not even factoring in the enormous cost of the federal healthcare mandates.

“It indicates that a lot more needs to be done to get California’s budget under control, and that does not happen through tax increases. Government has changed very little in how it conducts its business in the last three years.”

From state Controller John Chiang:

“Today’s news is no surprise. Our economy’s sluggish growth means a tax windfall is unlikely, and not a penny of the estimated $4 billion has been collected to date. The Governor and lawmakers were smart to backstop their hopeful budget projections with mid-year cuts, but they may not have gone far enough. Today’s report tracks with the troublesome pattern we have seen in the State’s receipts and spending, which could mean a cash-flow problem in California’s near future.”

From state Senate President Pro Tem Darrell Steinberg, D-Sacramento:

“Today’s numbers make it clear that the state’s first priority must be to get to the ballot in November and raise needed revenues to avoid any more damage to Californians. The notion of cutting deeper into education, public safety and services for those in need is unthinkable. I imagine an overwhelming majority of Californians agree.

“We’ve cut to the point that the results are being felt like never before. The cupboard of easy solutions is bare. Just ask the students in our higher education systems; the more than one million elderly, blind, or disabled living in poverty; the families who see their kids go to school where the classrooms are more crowded and the resources are dwindling. We’ve hit a crossroads where the time has come to turn things around.

“Democrats have tackled more than half of the reoccurring deficit problem we’ve been plagued with ever since Governor Schwarzenegger cut the Vehicle Licensing Fee. As the LAO points out, last year’s budget actions have put our ongoing deficits at the lowest we’ve seen since the recession began. By building on that foundation, new revenue will finally allow the state to recover and reinvest.”

Read more, after the jump…
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