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March 25, 2004
GOLDEN HANDSHAKE:
Back in January, the Journal
reported on rumors that the Pacific Lumber Co. was planning to
lay off about 400 employees. At the time, company spokesperson
Erin Dunn refused to confirm or deny, saying only that the company
did not "comment on rumors." Since then, the company
has announced that it plans to build a new, high-tech production
line in Scotia and that it will close its Carlotta mill. On Monday,
Palco made another announcement: It is offering a severance package
to some 475 production employees if they choose to leave the
company voluntarily -- not a layoff, exactly, at least not yet.
According to a press release and local news reports, the package
includes a cash payment, six months of medical insurance, "job-searching
skills" and continued participation in the company's pension
and children's scholarship plans.
ACTIVISTS WIN A
ROUND: The legal team representing
nine forest activists who were pepper-sprayed in 1997 won another
big legal victory Monday, after the U.S. Supreme Court declined
to hear an appeal brought by Humboldt County's attorneys. The
court's action meant that Judge Vaughn Walker -- whom the activists
have accused of bias -- will be prevented from conducting the
trial in the case, scheduled to begin on Sept. 7 at the Federal
District Court in San Francisco. The activists' lawsuit against
the county seeks damages for three incidents in which sheriff's
deputies swabbed pepper spray directly into the eyes of protesters.
Walker dismissed the suit in 1998, after a jury that heard it
reached a split decision; the 9th Circuit later ordered it to
be re-tried.
A STEP FORWARD:
The beleaguered North Coast Railroad
Authority received a welcome bit of news from the Federal Emergency
Management Agency Tuesday. Mitch Stogner, executive director
of the state agency that owns the defunct Northwestern Pacific
Railroad, learned that FEMA had decided to sign off on the authority's
plan to re-open the southern half of the line, from Napa County
to Willits. The move should free up $7.9 million in disaster
relief funding that has been promised to the NCRA for years.
With funds on the way, Stogner said trains could be rolling by
this fall. Service to Humboldt County is still on the back burner,
as the untold millions required to fix up the Eel River Canyon
section of the line are still nowhere to be found. Still, Stogner
said that the recent news should give a boost to the project.
"We believe the best argument for service north of Willits
is to get service on the south end of the line -- to show we
can run trains."
FASTING FOR THE
FOREST: Earth First! activist Naomi
Wagner, who this week began a 40-day jail sentence for resisting
arrest during a logging protest in Freshwater last March, said
she will fast during her imprisonment. Joining the 58-year-old
Wagner in the fast, outside the courthouse, will be fellow activist
Jeanette Jungers, a Eureka teacher. "We are fasting to focus
maximum attention on the fate of the forest, especially the old
growth, at the hands of Maxxam/Pacific Lumber Co.," the
women said in a statement. If the trees were houses, they said,
"they would be protected as historical monuments."
Wagner, a Petrolia resident, and Jungers chained themselves to
the base of a redwood when the Pacific Lumber Co. began removing
tree-sitters from its land off Greenwood Heights Road in March
2003. Wagner was acquitted of trespassing but the appeal on her
conviction for resisting arrest was denied.
UNDESERVING PLOVER?
Does the federally "threatened"
western snowy plover, which nests up and down the West Coast,
including on Humboldt County beaches, really need protection?
The U.S. Fish and Wildlife Service announced Monday it will take
a look at that question under a procedure known as a "12-month
status review." The decision comes after the filing of a
petition and a lawsuit contending that the plover is genetically
identical to populations in the interior of the country that
are not imperiled. What impact, if any, the review will have
on the management of county parks at Clam and Moonstone beaches,
both nesting spots for the bird, is unclear.
BIG TEST: All hail the mighty Lumberjacks! The HSU Men's
Basketball team is making its first-ever appearance in the NCAA
Division II's national championship tournament, a.k.a. "The
Elite Eight." As we went to press, the `Jacks were preparing
for their quarterfinals match against the University of Massachusetts-Lowell
River Hawks (Wednesday, 8:30 p.m.). If our boys can de-claw the
Hawks, they'll move to the semifinals (Thursday, 8:30 p.m.) and
then to the championship game (Saturday, 10 a.m.), which will
be carried on CBS television. All `Jacks games will be broadcast
on KATA Radio, 1340 AM, and streamed live on the Internet at
www.hsujacks.com.
NEW BANK OPENS:
Redwood Capital Bank, the newest
entry into the local financial scene, opened its doors this week,
with a gala reception in its brand-new headquarters at 402 G
St., Eureka, Tuesday evening. For Redwood Capital CEO John Dalby,
the enthusiasm for the new venture among local investors proves
that people want a locally owned bank. "[The investor base]
is very thinly spread across the community," he said. "Virtually
every investor is either in this community or has very strong
ties to the community." Redwood Capital's opening comes
hard on the heels of the sale of Humboldt Bank -- where Dalby
was formerly an executive -- to Oregon's Umpqua Bank.
LEAD CANDY ALERT:
The public health department issued
a warning this week that an imported chili-based candy from Mexico
called Chaca Chaca may contain "excessively high" levels
of lead that could cause serious health problems. At particular
risk are children and pregnant women. Lead can damage the brain
and nervous system, resulting in learning disabilities and behavioral
problems that can last a lifetime. The FDA has placed the candy
on "import alert" to detain future shipments from Mexico
into the United States. The only way to know if your child has
lead poisoning is to have the child's blood tested, health officials
said.
CORRECTION: A news item
in last week's issue misidentified the Humboldt County Office
of Education's spokesperson. She is Janet Frost. In addition,
last week's chart showing the final 2003
Academic Performance Index scores for local schools may have
been confusing for some readers. The column of figures labeled
"% English Language" should have read "% English
learners" -- in other words, the percentage of students
at the school for whom English is a second language. [The online version has been corrected]
Chesbro
holds forth
State legislator on Davis, Arnold
and the budget crisis
by
KEITH EASTHOUSE
State
Sen. Wes Chesbro was in town last week to chat with the local
press and to honor Dr. Ann Lindsay as the "Woman of the
Year" in his district for her work in improving access to
health care.
A resident of Humboldt County
for the past 32 years, Chesbro was elected to the State Senate
in 1998. He is chairman of the Senate Budget Subcommittee, which
oversees the budgets of state agencies dealing with health and
human services, labor and veterans affairs -- and which earlier
this month rejected Gov. Arnold Schwarzenegger's proposed enrollment
caps on state health programs.
In a visit to the Journal's
office in Arcata, he fielded questions that primarily had
to do with the new governor and the ongoing state budget crisis.
The Arcata Democrat, who entered politics 30 years ago when he
was elected to the Arcata City Council, began the interview with
a bit of criticism of himself and his party.
WC: The
problem with the Democrats' position has been that we've always
put taxes first and said we'll solve the budget deficit by taxes.
That hasn't worked. The Republicans wouldn't vote for it and
the previous governor got recalled because of the increase in
vehicle license fees. I don't think people are against taxes
because they don't think we need money to pay for services. It's
because they've lost faith in government. So our first priority
needs to be to work with the governor to come up with ways to
reduce the cost of state government and reduce the cost of providing
services rather than reducing the services. People don't believe
we've done a good enough job of reducing the overhead in Sacramento.
[At a recent hearing of the
Budget Subcommittee] we looked at an AIDS drug assistance program
and other health care programs, such as Healthy Families for
children. The governor has proposed to cap those programs. So
[what that means is if] you are diagnosed with AIDS or HIV and
are not already in the program, then you have to be on a waiting
list. Which of course with an illness like AIDS means a quick
deterioration and probably death--so [the governor's caps have]
life and death consequences. And assuming [the ineligible] person
loses their employment, they become Medi-Cal recipients and we
wind up having to pay for the catastrophic results of not managing
their disease through the program. So [the caps are a] bad proposal.
But in a budget crisis if you
don't like what the governor is proposing, you have to come up
with your own solution. So we discovered that there was a more
efficient way of administering the prescription program that
would save more money than keeping people out of the program.
We also found that there was drug rebate money from the pharmaceutical
manufacturers that was owed the state for a number of these programs
-- and that we could collect and actually expand the program
slightly and reduce the general fund contribution to pay for
it.
So we're looking to make state
government more streamlined, to reduce the cost of state government,
before we start talking about reducing services to people or
raising their taxes.
KE: What's
wrong with enrollment caps?
WC: They
treat people in the same circumstance differently. They mean
that a person who was accepted into a program because he was
born on one date will be eligible while someone who's born on
a different date will be ineligible. It's just an arbitrary cut-off
of services. It's not fair and in many cases will cost us more
money in the long run.
The other budget strategy I've
begun to work on is an outgrowth of something I was doing during
better times, when we had money and were expanding programs.
I came up with the concept of minimum funding levels for small
rural communities because in a number of programs the per capita
distribution of money was insufficient to do anything with. An
example is [a state program] that helps local law enforcement
hire police officers. Cities like Arcata and Ferndale and Trinidad
weren't getting anywhere near enough money to hire police officers,
so we established a $100,000 minimum funding level.
This last week we've begun to
apply that in a budget deficit situation. In terms of cutting
funding, how can we build in floors so that funding doesn't drop
below the level that's necessary to offer services? Take child
care. The child care programs in Humboldt County would not receive
enough money to survive just by the economies of scale. If you
take a set percentage cut and apply it to Los Angeles County,
to millions of people, the impact is spread out. In a small community,
the impact might be so extensive that the program gets eliminated
altogether. In my position as chair of the Budget Subcommittee,
I'm hoping to insert that minimum funding level protection for
rural programs. It doesn't mean they won't be reduced. It just
means they won't be reduced below the levels where they can't
survive.
KE: What's
it like to be a committee chairman?
WC: I
have more statewide responsibilities. And it becomes more of
a challenge to represent the specific items in my district. The
theory was that I wanted to be chairman so I could better represent
my constituents. But in a budget crisis, the Senate leadership
expects me to set a good example. So it's frustrating. I can't
stand up and say let's cut everything else except for my community.
But I can stand up and say let's protect rural communities all
over the state because it's not fair to disproportionately impact
them.
KE: How
has the budget crisis affected you as a legislator?
WC: Instead
of coming back to the district and telling people what I'm doing
to make their lives better, I have to come back and tell people
how I've made things less bad than they might have been. That's
not as rewarding for an elected official. I have this daily debate
about the wisdom of accepting this leadership role. But at the
end of the day I always come to the same conclusion -- which
is if I have a chance to be, even under horrible budget circumstances,
in the room on behalf of constituents and helping make the decisions,
or outside the room frustrated with a lot of other people, I
would [prefer the former].
KE: Give
me your appraisal of Gov. Schwarzenegger.
WC: I
didn't vote for him and neither did my district. But in this
crisis I feel it is my obligation to work with him. He has in
word and deed shown a willingness to compromise.
KE: Could
you give an example?
WC: The
best example was last December, when we were negotiating over
Proposition 57, the bond measure. He originally proposed a $20
billion bond to be paid back over at least 50 years and to have
it paid for by the general fund, which was the most expensive
way to do it. So we negotiated him into a bond that will be paid
off as early as eight years from now. It's a $15 billion bond
and it will be paid back by a quarter-cent of the existing sales
tax dedicated to pay it back so we'll get better terms on interest
rates. Basically, with this compromise, the cost of borrowing
was dramatically reduced from his original proposal.
Another example is his mid-year
budget cuts, in which he proposed drastic reductions to developmentally
disabled folks. What really changed his mind was that everywhere
he went people in wheelchairs showed up with picket signs. And
he backed off that position in January.
I think he's the kind of guy
who lives a fairly protected and privileged life as a celebrity
and now a governor. So he doesn't come in contact with real world
impacts very often. But perhaps through his wife [former television
personality Maria Shriver], when he is presented with information
about the impacts, he is willing to reconsider.
KE: How
has the recall of Gray Davis changed the political landscape
in California? Was it people power in action or was it some perversion
of people power?
WC: It's
still a little early to give a complete political analysis. But
the general perception is that it was a unique set of circumstances.
You had a fairly unpopular Democratic governor caught in the
energy crisis and then a huge budget deficit. And voters were
confronted with an opportunity to switch to what appeared to
be a very powerful personality who they thought might act more
decisively. But my own feeling is that it reflected a lack of
trust in state government. It was focused on Davis. But there
was a broader lack of trust.
KE: Why?
Who betrayed the trust?
WC: Part
of it was the extreme partisanship on the part of many legislators
[from both parties]. Voters expect their elected representatives
to roll up their sleeves and work together and we weren't doing
that. But part of it was what someone referred to as a perfect
storm. First the energy crisis. Then the dot com bubble bursting
and the income of California investors dropping dramatically,
and California's tax revenue dropping dramatically. And also
Sept. 11. That's beginning to fade in people's memories, but
it had a dramatic impact on people's confidence in everything
-- in the economy, in public safety and security, and in the
government's ability to do its job. All these things sort of
converged. And Gray Davis was an extremely cautious governor
who failed to act decisively and restore people's confidence.
KE: If
it was a perfect storm then it's not much of a precedent. They
don't happen very often.
WC: Well,
budget deficits are cyclical. Ronald Reagan experienced one;
Pete Wilson experienced one in 1991 and 1992. It wasn't that
long ago, in the early `90s, on a percentage proportional basis,
that the state economy and the state budget faced very similar
circumstances to what we face today. The difference was that
the governor then didn't get recalled. Instead, the Legislature
was able to come to a bipartisan compromise agreement, and that
restored people's confidence even though it caused a lot of pain.
KE: How'd
you feel about Prop. 56, which would have made possible legislative
approval of the budget with a 55 percent majority, rather than
a two-thirds majority? (The proposition was defeated in the March
2 election.)
WC: I
didn't take a position on it because I thought people would see
it as self-serving. The reason voters rejected it goes back to
the trust question. They don't feel we're adequately using the
tools they've already given us, so why give us another. The two-thirds
majority gives the minority party veto power [over the budget].
And in the past the minority party has used that to negotiate
a compromise. The current minority party, however, unified around
the idea of saying no. I think that dynamic has changed. The
Republicans didn't have any incentive to make Gray Davis look
good. Now there's a Republican governor who has a great stake
in solving the problems and so they have much more motivation
to compromise to help him to do that.
KE: But
what kind of attitude was that, to make Davis look bad?
WC: Obstructionist
and irresponsible.
KE: To
what extent is there bitterness on the part of Democrats over
Davis' fate?
WC: I
don't think we can afford to be bitter. But the fact that we
already cut $12 billion out of the budget last year and have
borrowed far more than we should is a direct result of Republicans'
unwillingness to compromise. And so it makes it on the part of
some of my colleagues, and to a degree me, too, it makes the
challenge of solving the problem again almost totally with cuts
much more difficult.
KE: Aren't
we in such a predicament that we have to do both, cut spending
and raise taxes?
WC: That's
how Ronald Reagan solved the problem. And that's how Pete Wilson
solved the problem. And ultimately the answer is yes. But the
governor's position as he's expressed it to me, when I've met
with him, is that the issue isn't so much that people don't think
government needs the money. It's that they don't trust us with
the money. So we have to demonstrate an ability to be bipartisan
and to compromise, and then they'll be more willing to consider
taxes. I agree with him. And that's one of the reasons I'm being
as kind as I am in my comments about him. I think it's a mistake
to go to our corners and start shooting at each other.
It's
getting ugly
Layoffs inevitable as Supes order
across-the-board county cuts
by
EMILY GURNON
Resigned to the county's grim
budget fate, the Board of Supervisors on Tuesday unanimously
ordered department heads to slash 20 percent from their budgets
for the coming fiscal year, to eliminate two code enforcement
positions, to look into combining the sheriff and coroner's offices,
and to consider putting a 1 percent sales tax measure on the
November ballot.
The across-the-board cuts are
certain to mean layoffs and reductions in services throughout
the county.
The spending cuts are necessitated
by the estimated $8 million budget deficit the county faces in
the coming year out of a total county budget of $210 million.
"We're at that edge where
we're now cutting bone," said Supervisor John Woolley. "That's
what this is all about."
Other cuts approved by the board,
to take effect July 1, include:
The outright elimination of
$182,750 that the county gives to local substance abuse programs;
A dramatic reduction in facility
maintenance spending, from $265,000 to $50,000;
A $134,441 cut in tourism promotion;
Elimination of the county's
$91,600 contribution to the budget of the Youth Services Bureau,
which helps homeless teens.
Elimination of the $65,000 contract
for predatory animal control.
There was relatively little
board discussion about the cuts, which were recommended by County
Administrative Officer Loretta Nickolaus and a budget task force
that included Nickolaus, some department heads and supervisors
Woolley and Bonnie Neely.
Supervisors Jill Geist and Jimmy
Smith both expressed reservations about the decision to eliminate
the two code enforcement positions. One of the officers
has already resigned effective June 30.
The two officers work to get
rid of neighborhood blights like drug houses, trash accumulation
and abandoned vehicles. "It's such a critical service that
we are able to provide," Geist said. She also said she hated
to see cuts to the Youth Service Bureau, which helps homeless
teens, among other things.
Neely and Woolley countered
that there was no other choice given the severe budget constraints.
"All of these things we consider to be extremely important
to the county, but there's no money," Neely said. "We
took the tough stand at the committee level" to recommend
the cuts, she continued. "There are no heroes in this process.
There's no good news."
There are a number of reasons
for the dark budget forecast, but they come down to two simple
things: less money coming in and more money going out.
The state, of course, is to
blame for the loss of millions, including $2.5 million in property
taxes in the coming year that are being shifted to Sacramento
under the new governor's budget, county officials said.
In the "money going out"
category, the Sheriff's Office has estimated it will have a $309,000
shortfall this year, plus a $465,000 shortfall in the jail, because
of overtime payments to employees. Sheriff Gary Philp said he
could reduce that shortfall by about $300,000 -- but it will
mean not filling three positions of retirees, canceling all training
outside of regular work shifts, and lowering minimum staff levels.
Asked whether the lower staff
levels might force the sheriff to assign more overtime in emergencies
-- thereby exacerbating the very problem they were designed to
fix -- Philp said yes.
"That is a very real possibility.
We think we can achieve this, but are we working short? Yes."
The poor economy will force
the county to pay out $2.3 million more to the California Public
Employees Retirement System (CalPERS). (Counties and cities statewide
must contribute more to the fund if investments are not generating
enough to pay what has been promised to workers.) But county
budget chief Karen Suiker said that stocks and other investments
are looking up, which should decrease the county's required contribution
in the years to come. During the boom years of the 1990s, for
instance, the county paid out no money to the CalPERS fund, she
said.
Another hit to budget coffers
came in the form of $700,000 in vacation and sick leave payouts
made this year as a result of "golden handshakes" to
12 longtime employees to avert layoffs.
And the governor's recall election
cost the county $156,600 in unanticipated expenses. Though officials
have written to Sacramento requesting reimbursement, "it'll
never happen," Suiker said.
The board also directed Nickolaus
to give it more information on a proposed ballot measure for
a 1 percent regional sales tax -- a tax that would generate an
estimated $6.8 million annually. The measure would be slated
for the November ballot, and, if designed as a general tax, would
require a simple majority of voters approving it. It would then
take effect April 1, 2005.
Officials plan a May 25 public
hearing on the budget, with final adoption of the budget slated
for June 1.
Science
winners go to state
29 projects by local students will
compete
by
JUDY HODGSON
How are wolves and dogs different
and how are they alike? What nutrients are left in the soil once
a wildfire roars through? Should straw used to stem roadside
erosion be infused with mushrooms for greater efficiency? Can
hydrogen replace gasoline to power cars?
These and other questions were
asked and answered in last week's Humboldt County Science Fair
competition in Eureka, and as a result, 29 projects are eligible
to advance to the state competition at the University of Southern
California May 24-26.
"It's the most ever. We
rank fourth in the state [in number of projects eligible], right
behind Los Angeles, Sacramento and Santa Cruz counties,"
said Melody McGuire, McKinleyville Middle School teacher and
coordinator of this year's fair.
Students from fourth through
12th grades compete in schoolwide competitions in an attempt
to qualify for the county contest. Only the top winners from
grades six through 12 are eligible for the state.
"They look at our percent
of winners from previous years and this year, we get to send
two more," McGuire said.
Fourteen grand prize winners
will have their expenses paid for the trip. They are: Garnet
Abrams, Scotia; Victor Blanc, Garfield; Josh Campton, Pacific
Union; Chelsea Fusek, Fieldbrook; Carlyn Girard, Jacoby Creek;
Jodi Grinsell, Ferndale; Kaela Jorgenson and Etta Grover-Silva,
Arcata High; Cody Long, Jacoby Creek; Seth McFarland, Pacific
Union; Billy Paris, Green Point; Teiwaz Smith, Arcata High; Amy
Wolfberg, Green Point; Angeline Wolski, Arcata High; and Elena
Tessler, Pacific Union.
Runners-up may travel to the
state, but must be responsible for their own travel arrangements
and expenses. County school officials are hoping to find additional
funding from local parent teacher organizations or businesses
to sponsor additional students.
Runners-up include Benjamin
Bairrington, McKinleyville Middle School; Chris Cameron, Jacoby
Creek; Austin Campbell-Loya, Sunny Brae; Isaiah Cooper, Sunny
Brae; Ben Desch & Kevin Woolley, Sunny Brae; Steven Dewey,
Pacific Union; Shane Finley, Garfield; Dorae Hankin, Pacific
Union; Sarah Knight and Brittainy Gower, Winship Middle School;
Taran Lu, Sunny Brae; Casey Mansfield, Sunny Brae; Lucas Miller,
Jacoby Creek; Greg Passani, Jacoby Creek; Michelle Shin and Jason
Park, St. Bernard's; and Liberty Williams, Redway.
A
new beginning
New owners for Arcata Theatre
![[photo of the marquee of the Arcata Theater, reading "Sold at last"]](news0325-arcatatheatre.jpg)
The 67-year-old Arcata Theatre,
closed for more than two years, was sold last week to Arcata
residents Brian and Lara Cox, who outbid two other potential
buyers. The cost? Something less than the $485,000 asking price
was all Cox, director of the Humboldt County Environmental Health
Department, would say. "Pretty cool, huh?" was his
wife's comment. "We got it."
Repair of the marquee, damaged
last year when a truck backed up into it, is a priority. But
first, Cox said, they will "take care of the asbestos problem,"
a $33,000 procedure that will remove sprayed insulation from
the ceiling.
Ever since Bay Area investor
Robert White purchased the building from the Minor Theatre Corp.
in April 2002, plans for its use -- which ranged from a concert
hall to a gymnastics center -- have repeatedly fallen through.
What do the Coxs have in mind? "We don't know yet,"
said Lara, owner of Lola, an Arcata clothing store. "We
have a few ideas, but we need to work out a lot of stuff before
we say anything. We're asking the public to us
and tell us what they want to see there."
Her husband was a little more
forthcoming. One possibility, he said, is to build a stage and
convert the old movie house into a live entertainment venue.
Another is to keep the screen and do "beer and movies."
Whatever they do, Cox made clear,
although somewhat sheepishly, that they are "looking to
make a profit." Given the repair work, he said it could
take as long as a year before the facility is once again open
to the public.
Calling
for peace
Eureka Peace March
ONE YEAR AGO, 4,000 PEOPLE MARCHED
THROUGH EUREKA to protest the Iraq War. Last Saturday about that
many folks, perhaps a few hundred more, did the same thing, a
tide of humanity (and not a few dogs) that for two hours, from
11 a.m. to 1 p.m., flowed from the Municipal Auditorium to the
Old Town Gazebo under warm, sunny skies.
The Second Annual Eureka Peace
March was part of a global day of protest marking the first anniversary
of the American invasion. From Los Angeles to London to Barcelona
to Hong Kong, people took to the streets to show their opposition
ultimately to one man, U.S. President George Bush, who took the
country to war claiming that Iraqi leader Saddam Hussein possessed
weapons of mass destruction. Such weapons, of course, have yet
to be found.
The demonstration in Eureka
was lively and colorful, as people brandished protest signs,
played musical instruments, or walked in costume. It was also
orderly -- the heckling between marchers and a small group of
supporters of the American invasion that marked last year's event
was noticeably absent this time around.
The Women in Black were on hand,
as were some local politicos, among them State Assemblymember
Patty Berg and Arcata Mayor Bob Ornelas. But the prevailing force
was one that has been pretty effective around here of late, what
with the failure of the DA recall and the withdrawal of Calpine:
People power.
EUREKA PEACH MARCH PHOTOS
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