State Legislative - Week of March 5, 2010

Legislative Update - March 5, 2010  
 
New Assembly Speaker Sworn In.  On Monday, March 1st Assemblyman John Perez (D-Los Angeles) was sworn in as the new Assembly Speaker. During his address immediately following his ceremony he stated that he supports a majority-vote budget and that the next budget would not be written behind closed doors in “Big Five” meetings. It is expected that Speaker Perez will be making significant committee chairs and membership changes next week. While it is all but certain that Assemblyman Felipe Fuentes (D-Los Angeles) will no longer chair the Assembly Utilities & Commerce Committee, it is unclear at this point who will replace him.
 
Municipal Utility Pole Attachments. CCTA continues to brief the legislators on the escalating municipal utility pole attachment rates.   Through discussions on this topic, CCTA has learned that some municipal utilities have adopted a fee structure for pole attachment agreements based on a methodology created by the American Public Power Association (APPA). Inputs into the APPA calculator include, but are not limited to, the number of poles, dollars spent on pole maintenance, and the cost for pole installation. The specific APPA guidelines are not available to CCTA.  CCTA is attempting to work with the California Municipal Utilities Association (CMUA) to address this issue.  
 
Budget Update. Before adjourning for the week, in an attempt to address the state’s $8 billion current year budget deficit, the Legislature adopted legislation that included $4 billion in current year budget reductions in legislation requiring only a majority vote. Centerpiece to the budget actions was the elimination of the state’s gasoline sales tax and replacing it with an excise tax. Although this action will produce the same amount of revenue, it grants the state more flexibility on how the funds may be spent. Other actions included reducing the state worker payroll, the suspension of several local programs, and cuts to the state prison system. Not included in the budget deal were any restrictions on corporations applying net-operating losses for 2010, prohibition on unitary group credit sharing, and the authorization for local governments to implement local gasoline sale tax increases. Governor Schwarzenegger has not indicated whether he will approve the budget actions.