Governor Releases Budget Proposal

On January 5th, Governor Jerry Brown released his proposed 2012-2013 budget. The spending plan builds upon significant Democratic deficit reduction efforts of previous years.

The proposed budget is based on the Department of Finance's projected deficit of $9.2 billion. The Governor proposes to balance the budget with billions of dollars in additional cuts, including a difficult $1.4 billion reduction in human services and child care aid for the poor, and through increased revenue raised through a ballot initiative in November. The initiative would seek voter approval of a tax initiative that will temporarily raise the income tax of wealthy Californians and temporarily increase the state sales tax by half a cent. If approved by the voters, the tax proposal will generate nearly $7 billion in new revenue annually for five years, and help protect K-12 education, higher education, and public safety programs from additional cuts.

A summary and details of the proposed budget can be reviewed at the Governor's budget website.

Senator Gloria Negrete McLeod to Chair Senate Budget Subcommittee #4

Senator Gloria Negrete McLeod has been named the Chair of the Budget and Fiscal Review Committee that oversees state administration and general government functions. Known as Budget Subcommittee #4, the subcommittee reviews the budgets of the state Department of Veteran's Affairs, the Department of Housing and Community Development, and the Department of Consumer Affairs along with many others. The role of the subcommittee is to provide a forum for public input and ongoing oversight of critical programs and issues.

"The budget continues to be California's biggest challenge," said Negrete McLeod upon her appointment. "While we've made great improvements in the structural deficit and will continue to do so; we need to get back to a place where we are investing in California."

Additionally, Senator Negrete McLeod serves as a member of the full Senate Budget and Fiscal Review Committee, which has scheduled a series of informational hearings to focus on Governor Brown's budget proposal. The following informational hearings of the full Budget Committee have been scheduled at the State Capitol in Sacramento:

February 16 - Education Reforms
February 23 - Long Term Care and Medi-Cal Managed Care
March 1 - CalWORKs and Child Care Proposals and Program Redesign

Cal Grant Workshops Scheduled As Deadline Approaches

The California Student Aid Commission is launching its official start of the 2012 financial aid and Cal Grant application period. Students can maximize their financial aid options by applying for a Cal Grant by the March 2, 2012 deadline.

Cal Grants cover tuition and fees at California's public colleges and universities and some private institutions for over 300,000 low income students. Grants can also help students pay for textbooks, living expenses and equipment for Community College and career technical education.

California State Senator Gloria Negrete McLeod stated, "Even though Sacramento faces budget shortfalls, we cannot abandon the commitment to our student's educational endeavors. This essential investment in our future workforce ensures California's continued prosperity."

High school seniors or recent graduates who meet eligibility and financial requirements and submit a Free Application for Federal Student Aid (FAFSA) and a Cal Grant GPA verification form before the March 2nd deadline can receive up to $12,194 per year.

"I have partnered with many educational centers to host several Cash for College financial aid workshops in my district. Students and their families can receive one-on-one, multi-lingual assistance on the FAFSA and other financial aid forms," said Senator McLeod. Financial aid and outreach professionals, high school counselors and trained community volunteers will be on hand to help students at workshops during the Cal Grant application window. For more information, please contact the Office of Senator McLeod at (909) 621-2783, or students can visit www.californiacashforcollege.org or call 888.CA.Grant (888.224.7268) to locate a workshop near you.

Scheduled Workshops:
February 2, 2012 - 6 to 8 PM - Rialto High School 595 S. Eucalyptus Ave, Rialto, CA
February 7, 2012 - 6 to 8 PM - 15551 Summit Avenue, Fontana, CA

Local Firms Receive Job Training Grants to Remain Competitive

Senator Gloria Negrete McLeod is pleased to announce the award of job-training funding to local firms, one in San Bernardino and one in Pomona. The Paramount Windows & Doors Millwork Co. of San Bernardino was awarded $26,208 for updating the skills of its 24 employees. In addition, the Hayward Manufacturing Company of Pomona was awarded $99,360 for training of its 138 employees. The training programs are designed to keep the California labor force competitive and address out-of-state competition.

The training funds were awarded by the Employment Training Panel (ETP), a public private partnership between business, labor, and government. Created in 1982, ETP is a statewide economic development program to support the overall economy in California by ensuring that employers have the trained workers they need to compete in a global economy. The ETP primarily funds re-training of employees of businesses who are threatened by out-of-state competition.

Senator Negrete McLeod Holds Conference Committee Hearing On Pension Reform

On January 25th, the Joint Public Employee Pension Committee held its third in a series of hearings to examine the Governor's Twelve Point Pension Reform Plan. The hearing focused on the Governor's proposal to mandate a state-wide hybrid plan for new public employees. The Committee examined hybrid pension plans in other states, the federal hybrid pension plan, and the California State Teacher Retirement System's hybrid plan. "The hybrid plan is the most controversial piece of the Governor's plan and is also the least detailed. It's important for us to look at the pros and cons of existing hybrid programs while the Governor develops the details of his proposal," said Negrete McLeod.

The Joint Committee, formed in September of last year, is tasked with examining the current public pensions system, the efficacy of recent reforms, and options going forward to help bring fiscal stability to the systems in a way that's fair to both workers and the citizens of California. The Conference Committee on Public Employee Pensions is Co-Chaired by Senator Gloria Negrete McLeod and Assemblyman Warren Furutani.

In 2011, the Senate and Assembly passed a number of pension reforms, including new memoranda of understanding (MOU) agreements with six collective bargaining units of state employees. The changes raised employee contribution levels and, in many cases, pushed back the eligible age of retirement for members in the bargaining units. Those recent reforms, and others, are projected to save at least $13 billion over the next 30 years.

In response to increasing public interest in public employee pension, CalPERS - the nation's largest public employee retirement system - maintains "CalPERS Responds" a website dedicated to educating the public and separating fact from fiction on CalPERS' pensions and investments.

Revamped Federal Program to Help Struggling Home Owners

Late last year, officials at the Federal Housing Finance Agency (FHFA) released new guidelines for the Home Affordable Refinance Program (HARP). Because HARP guidelines changed significantly, many consumer advocates are calling the retooled program "HARP 2.0".

Changes to HARP are part of the Obama administration's "Making Home Affordable" initiative, a joint program of the Departments of the Treasury and Housing and Urban Development.

The program attempts to help homeowners who are "underwater" on their home mortgages by offering incentives to banks to modify terms of home loans before a consumer is either forced to default, or comes to the conclusion that simply walking away from their home is in their best financial interest. The expanded eligibility guidelines should allow the program to meet its target of refinancing 1-2 million loans.

For a mortgage to be considered for a HARP refinance, it must be owned or guaranteed by Fannie Mae or Freddie Mac.

More information on HARP for Fannie Mae loans.
More information on HARP for Freddie Mac loans.

The new guidelines eliminate HARP's loan-to-value ratio cap (a limit on the severity of lost home value to the size of the homeowner's loan), along with certain appraisal requirements, upfront adjustment fees, and representation and warranties risk for participating lenders (thereby lowering risk for banks). The changes also extend the program through Dec. 31, 2013.

FHFA released a frequently-asked-questions document on HARP 2.0.

Black History Month

February is Black History Month which celebrates the achievements and contributions of Americans of African descent. Originally, historian Carter G. Woodson and other African American leaders started the celebration as Negro History Week. They chose February because it was the birthday month of President Abraham Lincoln and abolitionist and civil rights activist Frederick Douglass. In 1976, Negro History Week was expanded into a four week-long celebration and was officially recognized as Black History Month.

In honor of Black History Month, the US Census assembled a collection of African American history, art, biographies and a data base on almost 35,000 slave voyages that forced 10 million Africans to be transported to the Americas. The collection is housed through the Library of Congress. The US Census also has useful information that provides a detailed portrait of today's diverse African American community.

The California Legislative Black Caucus has ongoing event information during February.

Senator Gloria Negrete McLeod "Out and About" in the Community

Senator Negrete McLeod at the Chino McDonalds Grand Re-opening Ribbon Cutting with Store Manager Rosanna Hutchins and Owner Eddie Yuen.

Senator Negrete McLeod at the Pomona Civic Center for the "Sugar" Shane Mosley Diamond Love Foundation Event with Board Chair Cerena Mosley-Prude.

Senator Negrete McLeod with performers from the Pomona Valley Chinese Association's Lunar New Year Celebration at the Museum of History and Art.