PRESIDENT'S MESSAGE

Recently, I read two articles in the January 2009 edition of the “American River Messenger”—one about our own member, Assemblyman Roger Niello, and another by one of our VP’s, Jon Coupal. First, “Assemblyman Niello, recently introduced legislation to help California families faced with the loss of their homes through short sale or foreclosure.” Because lenders forgive a portion of the homeowner’s mortgage debt in those cases, the Federal Mortgage Debt Relief Act of 2007 was passed which allowed the amount of the forgiven debt, which used to be considered income and therefore taxed under federal and state income tax law, exempt from such tax liability. But now, the Federal Emergency Economic Stabilization Act of 2008 extends mortgage debt tax relief until January 1, 2012! Assemblyman Niello’s Assembly Bill 111 will provide Californians with conformity to federal law by extending the current income-tax-exempt provision until 2012. Thank you, Roger Niello!

Now, in Mr. Coupal’s article, he brings up an interesting point when he questions the concept of a State budget “crisis.” He says, “. . .if ‘crisis’ is defined as a situation where impending disaster is a probable outcome—think Cuban Missile Crisis—then the notion that California is in the midst of crisis needs to be challenged.” Jon goes on to say, “It is not a ‘crisis’ if you are merely driving down the freeway. It is a crisis if you fail to slow down when you get to your exit. Reducing government expenditures when revenues decrease should be as natural as slowing down a car when approaching an off ramp—and we do it [all the time] without invoking the ‘C’ word.” That’s brilliant, Jon; thanks! So, what do you think of that? Do we have a “Budget Crisis” or a “Spending Problem?” I know for a fact that revenue to the State is still coming in, because I still pay State sales tax almost every place I go! (Oh, that brings to mind IOUs for State income tax refunds. I better stop.)

Thanks for being part of the League and for writing, calling, and e-mailing your representatives about this budget “crisis.”

Hope to see you at our next meeting.

Ken Payne