IRS Concludes Audit of Vernon, City Administrator Sums Up Momentous Year

December 23, 2011 by · Leave a Comment 

Vernon officials announced Thursday that one of the several audits ongoing in their city has concluded.

The audit, begun in August, was to determine if Vernon improperly avoided paying taxes to the IRS.

The IRS found that the $419 million bond issued by the city’s Light and Power Department to purchase a 15-year supply of natural gas is in compliance with IRS regulations.

Auditors said the city’s bond is indeed tax exempt.

U.S. Department of Treasury closed its IRS review of the Vernon Light and Power Series-A revenue bonds issued in 2009, making the “determination to close the examination with no change to the position that interest received by the beneficial owners of the bonds is excludable from gross income under Section 103 of the IRS Code.”

Vernon City Administrator Mark Whitworth said the audit finding was “positive and reassuring.”

An audit begun in September by the state legislature is still ongoing. The city has not received any further communications from the Attorney General which began an audit of the city last Fall (clarification: September 2010).

The city is in the middle of implementing a series of reform measures as part of an agreement meted out by State Senator Kevin De Leon. He agreed to protect the city from disincorporation in return for the reforms.

On Friday, Whitworth issued a message about the city’s experiences in the past year as they faced a disincorporation effort, and about how they will proceed with the series of reforms it signed onto with de Leon:

“Despite what anyone inside or outside of the City of Vernon might say, the changes enacted over the past 12-months to implement a series of municipal reforms have made Vernon a stronger city and more unified community.

“The reforms have vitalized our city’s electorate, business community and workers. Vernon remains on a path to reform that will further strengthen our community and city.

“The reforms undertaken to date helped preserve our city’s 1,800 businesses and 55,000 jobs. Vernon has the ongoing opportunity to light the pathway toward reform for other troubled cities within Southeast L.A. County.

“The reforms taking place in Vernon are historic. We are proud of our city’s reform accomplishments and continuing contributions to the local economy. The work on our city’s reforms is not finished.

“When future generations of city residents, business leaders and employees look back on 2011, they will view this year as the time when Vernon used reforms to elevate our standing and engage communities and cities that make up our region.

“One year ago, at this exact point in time in December 2010, Vernon faced an unprecedented political and legal challenge to its constitutional right to exist.

“The political and public assault visited upon our city required an extraordinarily talented, skilled and experienced team of legal professionals to counsel city leaders and guide our city’s defense of its municipal incorporation.

“If we, as a city, had exhibited a weaker resolve to reform, our city would have fallen under the withering political attack mounted against it, and been eliminated.

“The people of Vernon can be proud. Our city embraced municipal reforms. Our city’s leaders enacted good governance changes. Our city’s voters cast ballots to place those reforms in our city’s charter. Our city remains standing for good reason.

“This week, as we prepare for the holiday season and bring a close to 2011, we can be thankful for the steps we took to save the City of Vernon. We are grateful to those in organized labor and local business who assisted us with their Save Vernon Jobs effort. Without their help and their strong push for municipal reforms, we would have surely failed.

“We close 2011 on a positive note. Vernon received reassuring news this week from the IRS. The close of the IRS audit with a ‘no change’ determination was not unexpected. In fact, it was anticipated from the start of the Treasury Department’s examination. Vernon fully cooperated with the IRS auditors, confident that our bond financial dealings have been legal and appropriate.

“The City of Vernon looks forward to a promising 2012. We have more reform steps in store in the coming year. We are hopeful our city will receive a positive progress report from our Independent Ethics Advisor John Van de Kamp in early 2012.

“We wish our city residents, businesses and their workers and our city family of Vernon public employees a very happy holiday and a Happy New Year.”

Commerce Truck Stop Robbed

December 22, 2011 by · Leave a Comment 

Five armed men robbed a 24-hour truck stop in Commerce and escaped with thousands of dollars Wednesday morning, say the Sheriff’s.

The gunmen hit the Commerce Truck Stop at 4560 East Washington Boulevard just after 3 a.m., said Lt. Tim Carr of the Los Angeles County Sheriff’s Department’s East Los Angeles Station.

The suspects held up the cashier and made off with nearly 8,000 dollars. No one was injured in the robbery.

December 22, 2011 Issue

December 22, 2011 by · Leave a Comment 

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EDITORIAL: House GOP Members’ Holiday Message: Bah-Humbug!

December 22, 2011 by · Leave a Comment 

It’s quite a Christmas present the Congress has presented working class Americans this year.

No, it’s not financial relief, but a higher tax burden that will on average cost American workers who still have a job $1,000 over the next year.

What’s becoming clear is that the party that professes to be against tax hikes is really only against taxes on the wealthy and large corporations. We suppose they believe that the poor and middle class don’t create jobs — they just do the work — therefore they are not deserving of the same consideration afforded the country’s wealthier class.

As for jobless Americans unlucky enough to have exhausted their unemployment benefits, House Republicans say they can just “eat cake” because there will be no extension of those benefits.

There is a lot of blame to go around in this latest Congressional lapse in responsibility and statesmanship.  The games members of Congress play to try to out maneuver their opponents are really disgusting.

They remind us of children who refuse to continue playing when they don’t get their way. The push by some members of Congress to include items that would otherwise be defeated is inexcusable.

A bill that only contains the extension of unemployment benefits and the payroll cut of Social Security withholdings, would likely pass in both the House and the Senate. But House Republicans, bucking even the agreement reached with their fellow Republicans in the Senate, decided to complicate things by adding quid-pro-quo riders to prove they can still exert some muscle.

It seems that members of Congress are unmoved by recent polls showing that their approval rating is even lower than the President’s numbers, perhaps because they know there will be few if any repercussions for their failure to act appropriately. They know that those Americans who bother to vote won’t throw the bums out; they know the voters would also rather have their party win an election than punish the games players.

So what can we do? Write letters, protest, make phone calls?

For the next few days maybe we should just pretend all is well, share a little Christmas joy with our loved ones, our neighbors, and do the best we can to help those in need around us.
The heck with the Congress! Let them wallow in their self-importance and lack of regard for their fellow Americans.

We hope Santa leaves a lump of coal in their holiday stocking.

Too Many American Children Now Living in Poverty

December 22, 2011 by · Leave a Comment 

The Census Bureau recently delivered some disturbing news about how the Great Recession and its aftermath are affecting the most vulnerable among us — America’s school children.

More than 20 percent of the nation’s counties saw significant increases in poverty among school-aged children between 2007 and 2010. Nationally, 22 percent of our children are living in poverty.

This poverty increase has hit large, urban school systems the hardest, with 96 of the 100 biggest school districts reporting increases in the number of poor children. In Detroit, for example, 47 percent of school children are poor. In New York City, the rate stands at 29 percent.

This is a moral outrage. While the debate drags on in Washington about the right balance of spending cuts and taxes, a real and preventable tragedy is unfolding before our eyes.

Through no fault of their own, millions of children whose parents have lost jobs need free school lunches, and in many cases are going without health care. As depicted in a recent “60 Minutes” segment, some are homeless and living in cars.

The new Census data comes on the heels of news in September that the number of impoverished Americans has risen to 46.2 million. That’s 15 percent of us, the largest number in 52 years.

Many previously middle-class families are finding themselves standing in line at food banks and homeless shelters. And, according to the Children’s Defense Fund, one in three African-American and Latino children are living in poverty. This should be a loud and urgent wake-up call to Congress and policymakers.

If Congress fails to act, already struggling families face the end of the payroll tax cut in the New Year. This would add about $1,000 to an average family’s tax bill. Lawmakers may also fail to extend unemployment benefits. According to the non-partisan Center on Budget and Policy Priorities, unemployment benefits, together with supports like the Earned Income Tax Credit and the Child Tax Credit, are keeping 7 million people out of poverty.

Beth Davalos, who runs Families in Transition in Seminole County, Florida, was interviewed for the “60 Minutes” segment on homeless children living in cars. She explained in stark terms the impact poverty is having on a kindergarten child she was trying to help: “That little 5-year-old was so troubled over where she would be sleeping, she was not thinking about 2 + 2.”

The fact is, we shouldn’t even be talking about child poverty in the richest nation on earth. We have the means. We simply need to summon the will to end it.

If we can find the money to bail out Wall Street and give tax breaks to the wealthy, surely we can find the resources to provide food, shelter, health care, and a good education for our children.

As Marian Wright Edelman, president of the Children’s Defense Fund, has said, “A country that does not stand for and protect its children — our seed corn for the future — does not stand for anything.”

Marc Morial is the president and CEO of the National Urban League. www.nul.org
Distributed via OtherWords org.

The Incredible Shrinking State Dollars for K-12 Schools

December 22, 2011 by · Leave a Comment 

State funding for California’s K-12 public schools has fallen by $7 billion since the onset of the recession. The state now spends $1,000 less per student than it did in 2007-2008.

“There has been a very large reduction in revenues that determine Prop 98, California’s formula for calculating minimum school funding,” said Jonathan Kaplan, senior policy analyst with the California Budget Project, a nonpartisan group that monitors fiscal and policy issues.

Per student spending is now close to the 1989-90 level, after adjusting for inflation. “We are basically at a similar level of funding than we were at 20 years ago,” Kaplan said.

Prop 98, or the Classroom Instructional Improvement and Accountability Act, was passed by voters in 1988. It requires the state to spend a minimum percentage of its budget on K-12 and community college education. It is by far the largest source of dollars schools receive.

In good times, the Act provided ever-increasing funds that grew each year with the economy and number of students. But with the rapid drop in tax revenues following the onset of the recession, funding on K-12 plummeted from $50.3 billion in the 2007-2008 school year to $43 billion in 2008-2009, where it has remained static.

Schools See a 6 Percent Reduction Per Student
Local school districts have offset the deep cuts in state funding through a mix of strategies, from tapping to one-time only federal stimulus dollars to deferring unpaid programs to the following year’s budget, a practice known as deferral.

The state began significantly relying on deferrals in 2008-09, when the state delayed $3 billion in payments to the next fiscal year to balance the budget. The state has continued to rely on payment deferrals to achieve budget savings by increasing deferrals in the last years. For the 2011-12, the state will be deferring $9.5 billion in K-12 payments.

“It doesn’t mean that programs necessarily went down by the same amount because districts are borrowing and using federal dollars to supplement them,” explains Jennifer Kuhn, director of K-12 education with the Legislative Analyst’s Office (LAO).

Thanks to the promised dollars from deferrals, as well as federal stimulus money, Quality Education Investment Act (QEIA) and other state funds, Kuhn found the actual drop per pupil funding was about $500.

“We have funding down 6 percent in 2011-2012 from the 2007-2008 level on a per pupil per program basis,” said Kuhn. The results are visible in increased class sizes, shortened school year, and teacher furloughs.

Mid-Year Budget Risk: The Triggers
All this, of course, is before mid-year trigger cuts. Governor Jerry Brown announced yesterday that K-12 school districts will face another $79.6 million reduction in general funding, along with a $248 million elimination of school bus funding.

Though the mid-year cuts was not as dramatic as many predicted for this year, the budget future on education remains uncertain. The budget shortfall for 2012-2013 could reach $13 billion unless voters pass one of numerous revenue proposals on the November 2012 ballot.

“If none of them is adopted, then presumably that 13 billion will come largely from cuts,” said Kuhn. “Education will bear some portion of that reduction.”

Read more on budget impacts on local schools through New America Media’s “A Day in the Life of a Classroom” project, a journalistic collaboration between NAM and six ethnic media outlets to document the toll of budget cuts on local schools.

Regulating What’s in Your Turkey Today Will Protect Your Health Tomorrow

December 22, 2011 by · Leave a Comment 

As millions of Americans gather around dinner tables this holiday season, there’s no better time to be mindful of where our food comes from and who is ensuring its safety. This is particularly important when it comes to meat and poultry, because the misuse of antibiotics in animal agriculture is leading to the creation of antibiotic-resistant superbugs that threaten human health, and there is no regulation in sight.

Most people probably would be surprised to learn that 80 percent of antibiotics sold in the United States are used in animal agriculture. The vast majority is for non-therapeutic purposes, such as promoting growth and compensating for effects of unsanitary and overcrowded conditions. Many of the antibiotics used in food animal production, such as penicillins and tetracyclines, are the same drugs we rely on to treat human illnesses, and therein lies the problem.

Scientists say there is no question that improper use of antibiotics in animal agriculture is leading to the development of resistant bacteria and diluting the effectiveness of the drugs for both animals and people. The Alliance for the Prudent Use of Antibiotics has estimated that antibiotic-resistant bacteria generate $16.6 billion to $26 billion per year in extra costs to the U.S. health-care system.

Since 1977, the FDA has been trying to curtail the improper use of antibiotics when producing meat, dairy and egg products, but stiff opposition from industry has stopped it every time. But this past year it looked like the FDA was finally ready to take a firm stand on the issue.

In June 2010, the FDA’s former principal deputy commissioner, Dr. Joshua Sharfstein, called a news conference to issue a draft guidance that would set the stage for stronger regulations. Sharfstein called the overuse of antibiotics in animals, “an urgent public health issue” (Washington Post, FDA seeks less use of antibiotics in animals to keep them effective for humans, June 29, 2010).  Sharfstein also recommended that industry voluntarily take steps to fix the problem on its own, rather than have the FDA impose regulations on it.

Not only has industry done nothing to fix the problem, the amount of antibiotics purchased for use in animals has actually increased. This past year, for the first time, the FDA released 2009 data showing exactly how much antibiotics were sold for use in animals – 28.8 million pounds, four times the 7.2 million pounds sold for human use. Newly released data for 2010 show the overall amount used in animals increased to 29.1 million pounds.

Knowing that industry has not taken the FDA’s warning seriously, you’d think agency leaders would say enough is enough. But sadly, it seems the FDA has lost its backbone. Just last week it denied two petitions to ban use of certain antibiotics in animals raised for food.

The petitions were filed by organizations such as the American Academy of Pediatrics, the American Public Health Association and the Center for Science in the Public Interest.

When pressed to explain why the petitions were denied, the FDA reportedly said its hands were tied. If so, by whom? If industry will not voluntarily stop irresponsible use of antibiotics on its own, then it is time we demand our government do what Americans have entrusted it to do and impose stiff regulations to protect us.

McDonnell is founder and CEO of Applegate Natural and Organic Meats and a member of the American Sustainable Business Council.

Cantwell Sacred Heart Basketball Team Wins Tourney, Moves to 9-0

December 22, 2011 by · Leave a Comment 

Highlighted by winning the championship of its own tournament, the Cantwell Sacred Heart of Mary boys basketball team is off to a 9-0 start.

The Cardinals outlasted Huntington Beach Ocean View, 87-76, in overtime Saturday to win Cantwell’s eighth annual Cardinal Classic tournament. They are the first Cantwell team to win the 16-team tournament and were the first to reach the championship game.

Cantwell Sacred Heart of Mary High School guard Jose Estrada drives to the basket in Saturday’s game against Huntington Beach Ocean View. The Cardinals are off to a 9-0 start. (EGP Photo by Mario Villegas)

Moreover, the team’s 9-0 start is the best in recent memory and many around the school believe it’s the best ever. It comes under a new coach in George Zedan, who was hired after last year’s team went 2-25.

The Cardinals defeated Duarte, South Pasadena and Oceanside El Camino to earn the right to play Ocean View for the title.

Zedan said he was really concerned about his team’s matchup with Ocean View (6-3).

“They’ve got a lot of talent and have a winning history,” he said. “We were definitely underdogs tonight. But our players responded by rising to the challenge. I’m happy for the kids, our program and the school.”

Jose Estrada led the Cardinals with a spectacular performance, as the junior scored a game-high 47 points and was named the tournament’s most valuable player. Sophomore guard Joe Covarrubias scored 22 points, topping all scorers with nine points in the overtime period. Jacob Alaniz added 15 points.

After falling behind 2-0 at the game’s outset, Estrada scored 26 points to lead the Cardinals to a 39-30 halftime lead.

Ocean View rallied back in the third quarter to pull within 54-51 behind Tyler Burch (26 points for the game) two 3-point baskets. The Seahawks went ahead early in the fourth and led 65-61 on a 3-pointer by Christian Rivera with 3:40 left.

Free throws by Estrada and Covarrubias, who also muscled in a layup, tied the score and the game went into overtime.

A basket by Covarrubias and a 3-pointer by Alaniz gave the Cardinals a five-point lead and they never looked back.

Covarrubias and Alaniz were named to the all-tournament team.

The Cardinals opened the season by winning five games at El Rancho’s Blue Gray Classic tournament. Cantwell defeated Salesian, Montebello, Rialto Carter, El Rancho and Fullerton Sunny Hills.

Cantwell Sacred Heart of Mary High School guard Jose Estrada drives to the basket in Saturday’s game against Huntington Beach Ocean View. The Cardinals are off to a 9-0 start.

How Democrats Fooled California’s Redistricting Commission

December 22, 2011 by · Leave a Comment 

This spring, a group of California Democrats gathered at a modern, airy office building just a few blocks from the U.S. Capitol. The meeting was House members only — no aides allowed — and the mission was seemingly impossible.

In previous years, the party had used its perennial control of California’s state Legislature to draw district maps that protected Democratic incumbents. But in 2010, California voters put redistricting in the hands of a citizens’ commission where decisions would be guided by public testimony and open debate.

The question facing House Democrats as they met to contemplate the state’s new realities was delicate: How could they influence an avowedly nonpartisan process? Alexis Marks, a House aide who invited members to the meeting, warned the representatives that secrecy was paramount. “Never say anything AT ALL about redistricting — no speculation, no predictions, NOTHING,” Marks wrote in an email. “Anything can come back to haunt you.”

In the weeks that followed, party leaders came up with a plan. Working with the Democratic Congressional Campaign Committee — a national arm of the party that provides money and support to Democratic candidates — members were told to begin “strategizing about potential future district lines,” according to another email.

The citizens’ commission had pledged to create districts based on testimony from the communities themselves, not from parties or statewide political players. To get around that, Democrats surreptitiously enlisted local voters, elected officials, labor unions and community groups to testify in support of configurations that coincided with the party’s interests.

When they appeared before the commission, those groups identified themselves as ordinary Californians and did not disclose their ties to the party. One woman who purported to represent the Asian community of the San Gabriel Valley was actually a lobbyist who grew up in rural Idaho, and lives in Sacramento.

In one instance, party operatives invented a local group to advocate for the Democrats’ map.

California’s Democratic representatives got much of what they wanted from the 2010 redistricting cycle, especially in the northern part of the state. “Every member of the Northern California Democratic Caucus has a ticket back to DC,” said one enthusiastic memo written as the process was winding down. “This is a huge accomplishment that should be celebrated by advocates throughout the region.”

Statewide, Democrats had been expected to gain at most a seat or two as a result of redistricting. But an internal party projection says that the Democrats will likely pick up six or seven seats in a state where the party’s voter registrations have grown only marginally.

“Very little of this is due to demographic shifts,” said Professor Doug Johnson at the Rose Institute in Los Angeles. Republican areas actually had higher growth than Democratic ones. “By the numbers, Republicans should have held at least the same number of seats, but they lost.”

As part of a national look at redistricting, ProPublica reconstructed the Democrats’ stealth success in California, drawing on internal memos, emails, interviews with participants and map analysis. What emerges is a portrait of skilled political professionals armed with modern mapping software and detailed voter information who managed to replicate the results of the smoked-filled rooms of old.

The losers in this once-a-decade reshaping of the electoral map, experts say, were the state’s voters. The intent of the citizens’ commission was to directly link a lawmaker’s political fate to the will of his or her constituents. But as ProPublica’s review makes clear, Democratic incumbents are once again insulated from the will of the electorate.

Democrats acknowledge that they faced a challenge in getting the districts they wanted in densely populated, ethnically diverse Southern California. The citizen commission initially proposed districts that would have endangered the political futures of several Democratic incumbents. Fighting back, some Democrats gathered in Washington and discussed alternatives. These sessions were sometimes heated.

“There was horse-trading throughout the process,” said one senior Democratic aide.

The revised districts were then presented to the commission by plausible-sounding witnesses who had personal ties to Democrats but did not disclose them.

Commissioners declined to discuss the details of specific districts, citing ongoing litigation. But several said in interviews that while they were aware of some attempts to mislead them, they felt they had defused the most egregious attempts.

“When you’ve got so many people reporting to you or making comments to you, some of them are going to be political shills,” said commissioner Stanley Forbes, a farmer and bookstore owner. “We just had to do the best we could in determining what was for real and what wasn’t.”

Democrats acknowledge the meetings described in the emails, but said the gatherings “centered on” informing members about the process. In a statement to ProPublica, Rep. Zoe Lofgren, head of California’s delegation, said that members, “as citizens of the state of California, were well within their rights to make comments and ensure that voices from communities of interest within their neighborhoods were heard by the Commission.”

“The final product voted on by the Commission was entirely out of the hands of the Members,” said Lofgren. “They, like any other Californian, were able to comment but had no control over the process.”

“At no time did the Delegation draw up a statewide map,” Lofgren said. (Read Lofgren’s full statement.)

California’s Republicans were hardly a factor. The national GOP stayed largely on the sidelines, and individual Republicans had limited success influencing the commission.

“Republicans didn’t really do anything,” said Johnson. “They were late to the party, and essentially non-entities in the redistricting process.”

Fed-up voters create a commission

The once-a-decade redistricting process is supposed to ensure that every citizen’s vote counts equally.

In reality, politicians and parties working to advance their own interests often draw lines that make an individual’s vote count less. They create districts dominated by one party or political viewpoint, protecting some candidates (typically incumbents) while dooming others. They can empower a community by grouping its voters in a single district, or disenfranchise it by zigging the lines just so.

Over the decades, few party bosses were better at protecting incumbents than California’s Democrats. No Democratic incumbent has lost a Congressional election in the nation’s most populous state since 2000.

As they drew the lines each decade, California’s party bosses worked in secret. But the oddly shaped districts that emerged from those sessions were visible for all to see. Bruce Cain, a legendary mapmaker who now heads the University of California’s Washington center, once drew an improbable-looking state assembly district that could not be traversed by car. (It crossed several impassable mountains.)

Cain proudly told the story of the district, which was set up for one of the governor’s friends. Cain said he justified the odd shape by saying it pulled together the state’s largest population of endangered condors. “It wasn’t legitimate on any level,” Cain recalled.

The 2010 ballot initiative giving the citizen commission authority over Congressional districts was sold to voters as a game changer. Not surprisingly, it was strenuously opposed by California’s Democrats, who continue to control the Statehouse.

No fewer than 35 Democratic politicians — including Minority Leader Nancy Pelosi — and their allies spent a total of $7 million to campaign against the proposition. The effort included mailings from faux community groups that derided the commission’s $1 million annual budget as “bureaucratic waste.” Despite this effort, Californians voted 61 percent to 39 percent to wrest federal redistricting from the hands of state lawmakers.

Immediately, Democrats began organizing to influence the citizen commission. There were numerous opportunities.

According to civics textbooks, the aim of redistricting is to group “communities of interest” so that residents in a city, neighborhood or ethnic group wield political power by voting together. The commission took an expansive view of this concept, ultimately defining a “community of interest” as anything from a neighborhood to workers on the same commute, or even areas sharing “intense beach recreation .”

This gave savvy players an opening to draw up maps that benefited one party or incumbent and then find — or concoct — “communities of interest” that justified them.

Democrats set out to do exactly that.

On March 16, members of the California delegation gathered at Democratic Party offices to discuss how to handle redistricting. They agreed that congressmen from the various regions of California — North, South and Central — would meet separately to “create a plan of action,” according to an email recounting the day’s events  by Alexis Marks, the House aide. Among the first tasks, Marks wrote, was determining “how to best organize communities of interest.”

Democrats were already working “BEHIND THE SCENES” to “get info out” about candidates for the job of commission lawyer who were viewed as unfriendly. “I’ll keep you in the loop, but do not broadcast,” Marks wrote.

“The CA delegation has been broken down into regions that will be discussing redistricting at the member level,” read another party email from late March. “Members will be asked to present ideas on both issues” — communities of interest and district lines — “and will be asked to come to some consensus about how to adopt a regional strategy for redistricting.”

Over the next several weeks, California Democrats huddled with Mark Gersh, the party’s top mapmaking guru. Officially, Gersh works with the Foundation for the Future, a nonprofit declared goal is “to help Democrats get organized for the fight of the decade; the fight that will determine Democratic fortunes in your state and in Washington, D.C. for years to come: Redistricting!”

The foundation is well funded for this fight. Its supporters include longtime supporters of the Democratic Party: the American Federation of State, County and Municipal Employees as well as the American Association for Justice (previously known as the Association of Trial Lawyers of America). The foundation was launched in 2006 when Nancy Pelosi’s office worked with both groups to start it.

Neither Gersh nor participants would describe in detail what was discussed at the meetings. But from Marks’ emails and other sources, it is clear that California’s Democrats sat down together to discuss mutually agreeable districts that would protect incumbents.

The value of coordinating efforts to influence the commission cannot be overstated. If each Democrat battled separately for the best district, it was likely that one Congress member’s gain would harm countless colleagues. Creating Congressional districts is a lot like a Rubik’s cube: Each change reshapes the entire puzzle. The Democrats’ plan was to deliver synchronized testimony that would herd the commission toward the desired outcomes. If it worked perfectly, the commissioners might not even know they had been influenced.

Over the summer, Marks sent out more than 100 emails about redistricting, according to multiple recipients of the messages. According to House records, Marks earned $112,537 in 2010 in her post as deputy director of the California Democratic delegation. That makes her a federal employee. But although many of the messages were sent during the work day, a spokesman insisted Marks did so in her after-hours role as a political staffer for Democrats. They were sent from a Gmail account. Lofgren’s office did not make Marks available for comment, citing policy that staffers do not speak on the record. Instead, they pointed to Rep. Lofgren’s statement.

Federal employees are not allowed to do campaign work on government time, or use government resources, according to House ethics rules.

The emails alerted staff and legislators when the commission was scheduled to discuss their districts and they encouraged them to have allies testify to “community of interest” lines that supported their maps.

Marks told members they would be asked to raise money for a legal challenge if things didn’t work out. The delegation, she said, was working with Marc Elias, who heads an organization called the National Democratic Redistricting Trust. (The trust shares a website with The Foundation for The Future.)

Last year the trust persuaded the Federal Election Commission to allow members to raise money for redistricting lawsuits without disclosing how the money was spent, how much was raised, and who had given it.

The commission blinds itself

Back in California, the commission was getting organized. Its first task was to pick commissioners. The ballot initiative excluded virtually anyone who had any previous political experience. Run for office? Worked as a staffer or consultant to a political campaign? Given more than $2,000 to a candidate in any year? “Cohabitated” for more than 30 days in the past year with anyone in the previous categories? You’re barred.

More than 36,000 people applied. The state auditor’s office winnowed the applicants to a group of 60 finalists. Each party was allowed to strike 12 applicants without explanation. Then, the state used Bingo-style bouncing balls in a cage to pick eight commissioners — three Republicans, three Democrats and two people whose registration read “decline to state” (California-speak for independent). The randomly selected commissioners then chose six from the remaining finalists to complete the panel.

The result was a commission that included, among others, a farmer, a homemaker, a sports doctor and an architect. Previous redistrictings had been executed by political pros with intimate knowledge of California’s sprawling political geography. The commissioners had little of that expertise — and one of their first acts was to deprive themselves of the data that might have helped them spot partisan manipulation.

The law creating the commission barred it from considering incumbents’ addresses, and instructed it not to draw districts for partisan reasons.

The commissioners decided to go further, agreeing not to even look at data that would tell them how prospective maps affected the fortunes of Democrats or Republicans. This left the commissioners effectively blind to the sort of influence the Democrats were planning.

One of the mapping consultants working for the commission warned that it would be difficult to competently draft district lines without party data. She was overruled.

The lack of political data was “liberating,” said Forbes, the commissioner. “We had no one to please except ourselves, based on our best judgment.”

“I think,” he said, “we did a pretty good job.”

The commission’s judgments on how to draw lines, Forbes and others said, was based on the testimony from citizens about communities of interest.

“We were provided quite a number of maps from various organizations,” said another commissioner, attorney Jodie Filkins-Webber. If the groups were basing their maps on political data to favor one party, “they certainly did not tell us that.”

“Districts could have been drawn based on voter registration,” Filkins-Webber said, “but we would never have known it.”

The commission received a torrent of advice — a total of 30,000 separate pieces of testimony and documents. Records suggest the commission never developed an effective method for organizing it all. The testimony was kept in a jumble of handwritten notes and computer files. The commissioners were often left to recall testimony by memory.

The difficulties in digesting and weighing the reams of often-conflicting testimony enhanced the value of people or groups who came bearing draft maps.

“Other people offered testimony; we offered solutions,” said Stuart Waldman, president of the Valley Industry and Commerce Association, a powerful business group outside Los Angeles that persuaded the commission to adopts its Congressional map for the San Fernando Valley.

How Democrats locked down Northern California

Redistricting is a chess game for people with superb spatial perception. Sometimes, anchoring a single line on a map can make everything fall into place.

According to an internal memo, Democrats recognized early on that they could protect nearly every incumbent in Northern California if they won a few key battles. First, they had to make sure no district crossed the Golden Gate Bridge.Then, they had to draw a new seat that pulled sufficient numbers of Democrats from Contra Costa County into a district that included Republicans from the San Joaquin Valley.

The man with the most to lose was Rep. Jerry McNerney, who represented an octopus-shaped district that had scooped in Democrats from the areas east of San Francisco. McNerney’s prospects seemed particularly dismal. Early in the year, he made The Washington Post’s national list of top 10 likely redistricting victims.

Republicans moved first, attempting to create a district that would keep San Joaquin County whole and pick up conservative territory to the south. But then a previously unknown group calling itself OneSanJoaquin entered the fray.

OneSanJoaquin described itself as a nonprofit, but records show it is not registered as such in any state. It has no identifiable leadership but it does have a Facebook page called OneSanJoaquin, created by the Google account OneSanJoaquin.

The page was posted in early April, just as the commission began taking testimony. Its entries urged county residents to download maps and deliver pre-packaged testimony.

On the surface, the OneSanJoaquin page seemed to be serving Republicans’ interests. But Democrats were one move ahead and understood that a united valley would inevitably lead to a Democratic-leaning district. (Republicans apparently did not understand that federal voting rights requirements ruled out their proposed district, since it would have interfered with the Latino district to the south. That misconception was encouraged by the maps on the OneSanJoaquin page, which were drawn to make this look possible.)

In fact, the only way to make a district with “one San Joaquin” was to pull in the Democrats in eastern Contra Costa — the far reaches of San Francisco’s Bay-area liberals.

The author of OneSanJoaquin’s maps was not identified on the Facebook page, but ProPublica has learned it was Paul Mitchell, a redistricting consultant hired by McNerney.

Transcripts show that more than a dozen people delivered or sent the canned testimony to the commission, which accepted it without question. There’s no sign that commissioners were aware some of the letters had been downloaded from the mysterious OneSanJoaquin page.

After the commission finished, McNerney announced he was moving to the newly created San Joaquin district to run for re-election. It was a huge improvement for him. In 2010, he barely won his district, beating his opponent by just one point. If the 2010 election were re-run in his new district, he would have won by seven points, according to the Democrats’ internal analysis. (McNerney’s office did not respond to requests for comment.)

Summing up the story, an internal Democratic memo said the GOP had been decisively out-maneuvered “Their hope was to create a Republican Congressional seat,” the memo said. “Their plan backfired.”

“McNerney ends up with safer district than before,” Mitchell’s firm tweeted, after McNerney announced his candidacy in his new district. “Wow! How did he do that?”

An under-funded commission

While players attempting to influence the process were well funded, the commission struggled with a lack of time and money. They responded, in part, by reducing citizens’ opportunities for input.

The budget for the whole map drawing undertaking was just over $1 million. At first, the commission had its public hearings transcribed — then the money ran out and they stopped.

The commissioners worked for free, with only a small stipend for expenses. As a result most kept their day jobs at the same time they tried to juggle their roles as commissioners.

It was a grueling schedule, with 35 public hearings taking place over just three months. “I had three days off between” April and August, said Commissioner Filkins-Webber, who maintained her legal practice while serving. “I was working basically on average18 hours a day.”

The commissioners also had to deal with public anger. The Tea Party in California decided to use the hearings as a forum to protest the Voting Rights Act, for instance, and at one hearing got so rowdy that police intervened.

Experts hired by the commission to actually draw the maps were also overworked and underpaid. Half a dozen times the meeting transcripts contain references to map drawers working overnight to prepare maps.

Overwhelmed by the task at hand, the commission decided to essentially shut down public participation halfway through the process. After the first round of drafts, which were widely criticized and abandoned, the commission stopped releasing formal drafts. More importantly, commissioners stopped holding hearings, which meant the next draft was prepared without public input.

The commission moved its meetings to Sacramento, not far from where party bosses had once gathered in secret to set the lines. The commission’s meetings were webcast to the public. But only those with the resources and time could participate.

“You have to ask yourself, who has the money to send people up to Sacramento like that,” said Eugene Lee, voting rights project director at the Asian Pacific American Legal Center, which was active in organizing grassroots participation in the redistricting process.

“We didn’t have the money to do that. No way.

The commission released no further drafts. In July, it made public a “draft final.” Voters had two weeks to submit comments before it became final. Most of those comments came from insiders who had been closely watching the Sacramento meetings.

Southern California Democrats also win

For those who could stay engaged, the Sacramento phase of the commission’s work proved rewarding. One politician who benefited was Southern California Congresswoman Judy Chu.

When it appeared that Chu would get an unfavorable district late in the game, a group with ties to the congresswoman went before the commission in Sacramento and convinced the commissioners to draw a favorable map that included her political stronghold, a town called Rosemead. Chu enjoyed broad support in Rosemead, where she was first elected to the school board in 1992 and later served in the state assembly.

The group, which called itself the Asian American Education Institute, worked with Paul Mitchell, the same consultant who helped engineer the triumph of Northern California Democrats.

Records show that crucial last-minute testimony in favor of Chu’s district was delivered by Jennifer Wada, who told commissioners she was representing the institute and the overall Asian-American community. Wada did not mention that she lives and works as a registered lobbyist in Sacramento, 400 miles from the district, or that she grew up in rural Idaho, where most of her family still lives. Wada says she was hired by the institute to “convey their concerns about Asian and Pacific Islander representation” to the commission.

The second witness was Chris Chaffee, who said he was a consultant for the institute and an employee of Redistricting Partners, Mitchell’s firm.

Commissioners accepted this map without asking a basic question: Who, exactly, was the Asian American Education Institute representing?

The group’s tax records show it had no full-time employees. Its website is barebones, and clicking on the “get active” button on the home page leads nowhere, simply returning users to the home page

There’s another interesting feature of the Web site: the domain name is registered to a man named Bill Wong, a political consultant who has worked on multiple Chu campaigns, as well as her husband’s successful bid for Judy Chu’s old state assembly seat. Chu paid Wong $5,725 for consulting work in 2010, FEC records show. Her husband, Mike Eng, donated $4,500 to the Asian American Education Institute in 2010 and 2011.

The institute, said Wong, “argued to keep communities of interest together. Since Rep. Chu has been a strong advocate for Asian communities, it would make sense for her to represent them.” Wong added that he “discussed redistricting with a number of Asian-American legislators.”

An email obtained by ProPublica shows Amelia Wang, Chu’s chief of staff, telling Chu and Bill Wong about testimony submitted by another Asian group, Coalition of Asian Pacific Americans for Fair Redistricting, which also intervened at the last minute to offer similar maps. In case that didn’t do the trick, Mitchell himself went before the commission, urging the commissioners to accept the maps submitted by the institute (his employer) and the coalition.

And that’s what the commission did, incorporating proposed lines for both groups and drawing a map that included Rosemead in Chu’s new district.

Wang told ProPublica that Chu’s office and the institute “did communicate about keeping communities of interest together, including Rosemead. However, Rep. Chu did not hire Bill Wong for redistricting or to testify on her behalf before the commission.”

“Rep. Chu has represented a united Rosemead city since 2001,” said Wang, “it would have been a tragic mistake to divide it.”

Though the process turned out well for Chu, it didn’t work out so well for the town of South El Monte.

To make room for Rosemead in Chu’s district, South El Monte — 85 percent Latino — got bumped into another district across the mountains that is much less Latino, and much more affluent.

The town’s mayor, Luis Aguinaga, say the new lines “don’t make sense.” South El Monte is now split off from sister communities in the San Gabriel Valley — including North El Monte and El Monte.

“We’re always on the same side, always fighting for the same issues,” Aguinaga said. “On this side of the San Gabriel Valley we have a voice. If we’re apart it will be much harder to be heard.”

Other communities lost, too.

Outside Los Angeles, residents of what’s known as Little Saigon begged the commission to undo what they saw as decades of discrimination and put the U.S.’s largest Vietnamese community together in one district. Instead, the community was split in two — a result of testimony by supporters of Rep. Loretta Sanchez, including a former staffer  and one of her wedding guests, to get her a safe district. A large section of Little Saigon ended up in a district with Long Beach, a town that is 1 percent Vietnamese.

“Residents who live in Little Saigon share the same needs, but if they’re in two different districts they may not be represented,” said Tri Ta, a City Council member from the area.

“This district is characterized by the Port of Long Beach,” the commission writes in its final report, “one of the world’s busiest seaports and the area’s largest employer.”

“It does not make sense to put the area known as Little Saigon in a district with Long Beach,” Ta said. “The two areas are distinctively different.”

“Congresswoman Sanchez believed strongly throughout the redistricting process that the population growth of the Latino community should be accurately reflected in the newly drawn congressional districts,” said Adrienne Elrod, Sanchez’s Chief of Staff, in a statement, “She’s glad that members of the Orange County community shared her views, and as a result, was pleased to see them take an active role.”

Paul Mitchell, the consultant whose work had such a large impact on the commission’s decisions, said voters benefited from the work done by him and others deeply involved in the process. The commissioners, he said, “knew some of the testimony was being fabricated by outside groups. But what were they to do? They couldn’t create a screen of all testimony and ferret out all the biases.”

The work he did on behalf of his diverse group of clients, he said, “created better maps — regardless of if they came with the additional benefit of helping some local city, union, or incumbent that was the client,” Mitchell said.

“My only regret is that we didn’t do more.”

Corrections: The story originally posted on the ProPublica website stated that the Asian population of Long Beach was less then 1 percent. It has been corrected to say that the Vietnamese population of Long Beach is 1 percent. The story also previously stated that Rep. Judy Chu previously served as a state senator. In fact, she served in the state assembly.

Federal Low-Interest Loans Available to Wind-Damaged Businesses

December 22, 2011 by · Leave a Comment 

The Small Business Administration announced Monday that low-interest federal disaster loans are available to California residents and business owners affected by the high winds that battered the Southland from Nov. 30 through Dec. 4.

The announcement by SBA Administrator Karen G. Mills came in response to a request by Gov. Jerry Brown. It makes SBA assistance available in Los Angeles, Orange, Kern, San Bernardino and Ventura counties.

“The U. S. Small Business Administration is strongly committed to providing Californians with the most effective and customer-focused response possible, and we will be there to provide access to federal disaster loans to help finance recovery for residents and businesses affected by the disaster,” Mills said.

“Getting our businesses and communities up and running after a disaster is our highest priority at SBA.”

An SBA Disaster Loan Outreach Center that opened Monday will remain open from 9 a.m. to 5:30 p.m. through Friday at the Pasadena Fire Headquarters, 199 S. Los Robles Ave., suite 550.

The center will close for the holidays, but will reopen Jan. 9.

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