This story was reported for San Diego News Network on December 15, 2009.
Marijuana, prisons and a new finance director. Nice mix, right? Here’s your California Budget Crisis Diaries fix.
Costly prisons: California’s health care receiver J. Clark Kelso said the high costs of a suicide-watch program is probably the fault of management and the budget woes.
In an ongoing series by The Sacramento Bee, reporters discovered the suicide-watch program cost the state $750,000 per month last fiscal year.
“A federal judge created the health care receivership in 2006 to fix a system known for deadly errors. Billions of dollars have been spent for new staffing and other improvements.
Kelso also released his report Monday on prison deaths in 2008, which set the number of deaths that were likely preventable or possibly preventable at 66, two fewer than in 2007 and the same as in 2006.”
The Bee also reports that “more than $152 million was spent on temps in the last fiscal year; in 2008, $60 million went to nursing overtime.”
In September, the State Legislature approved a plan to cut $1 billion from California’s prison system.
Welcome, new finance director: Gov. Arnold Schwarzenegger has appointed Ana Matosantos as the director of California’s Department of Finance – about a month after Michael Genest announced his resignation.
Matosantos has been the chief deputy director of the department since 2008 and has also served in several government roles in the past.
“I know Ana is the right person to take on this important role at such a crucial time for California,” Schwarzenegger said Monday. “In the coming year, our state will have to make incredibly challenging and tough budget decisions, and Ana has the knowledge and expertise necessary to guide my Administration through that decision-making process.”
Gov. Schwarzenegger also acknowledged Genest, who didn’t fully offer a reason for his resignation.
“Mike has a long and distinguished career of service to the people of California and he has been a tremendous asset to my Administration,” he said. “As director of the Department of Finance for the past four years, he served a critical role navigating the state through the worst fiscal situation we have seen in decades and I am deeply grateful for his service, dedication and commitment to our state.”
Taxing marijuana: Could California legalize and tax marijuana? Possibly.
On Monday, a group campaigning to put a marijuana legalization measure before California voters said it has enough signatures to qualify for the 2010 ballot.
Oakland medical marijuana entrepreneur Richard Lee said Monday the measure has far more than the nearly 434,000 signatures needed to make the November 2010 ballot.
The proposal would legalize possession of up to one ounce of marijuana for California adults 21 and older. Residents could cultivate marijuana gardens up to 25 square feet. Local governments would determine whether to permit marijuana sales within their boundaries.
If the state were to tax marijuana, it could make things easier for the city of Oakland, which already taxes medical marijuana.
In July, the city became the first American municipality to tax medical marijuana after it garnered much support from the entire City Council.
According to CNN, just one Oakland cannabis club will pay nearly $350,000 in taxes. In addition, other marijuana dispensaries are required to “pay about $18 in taxes for every $1,000 in marijuana sales.”
A past San Diego News Room report cited a Harvard Study that said the legalization of marijuana would save California about $7.7 billion “per year in government expenditure on enforcement of prohibition.”
The study also notes “that marijuana decriminalization would yield tax revenues of $2.4 billion annually if marijuana were taxed like all other goods and $6.2 billion annually if marijuana were taxed at rates comparable to those on alcohol and tobacco.”
Until then, the campaign organizers say they will submit the signatures to the California Secretary of State next month for validation. If it is validated, voters have less than a year to decide whether to legalize marijuana.
Associated Press contributed to this report. Hoa Quach is the political editor for the San Diego News Network.