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In 1998 California voters approved Proposition 10 that imposed a tax on tobacco products, with the proceeds to be used for school readiness and other child development programs for children age 5 and younger. The Proposition required that each of California’s 58 counties establish a Commission to govern the county’s share of this tobacco tax revenue, with the State to establish its own Commssion to oversee the 20% the State would keep.
Actor/Producer Rob Reiner, who championed the enactment of the Proposition, was appointed Chairman of that State Commission. Eventually the program became known as First Five (Orange County’s Commission has resisted adopting that name however, sticking with its original name – the Orange County Children and Families Commission.)
Since the Proposition has been enacted there have been some scandals about various county commissions. Charges of favoritism with regard to the award of funds to various programs have abounded. In some counties, the staff Director has been fired. Here in Orange County, there has been criticism over the award of funds for what appears to be political purposes as well as the very generous high compensation package of the Director. In 2006 Rob Reiner resigned from the State Commission amidst adverse publicity regarding the awarding of funds by that Commission.
One thing many of the County Commissions did right was to forecast a 10 year revenue stream and try to make sure that as revenues likely declined with a predicted decline in tobacco consumption, programs funded with First Five Dollars would continue. This was to avoid or at least minimize the all too common crisis of public sector program defunding as the money ran out. This strategy required under-spending annual revenues, and building up a reserve for tough times.
Enter California’s tough times. The Governor and Legislature, desperately looking around for money to fill the States’ budget hole, saw nearly $ 1 billion sitting in the various county First Five accounts and decided to launch a program to raid those funds, citing the failure of the county commissions to spend the money. Ever wonder why the bureaucrats often adopt a use it or lose it philosophy? Well the attempted raid on these funds by the State is a classic example – save for a rainy day and you lose your savings!
The 11-12 State budget included language that would raid these county funds. That language was contained in Assembly Bill 99, a bill that cited a fiscal emergency for the State as one reason to seize these county funds. Several county commissions, including Orange County’s, sued. That brings us to today. The news today is that a Superior Court Judge in Fresno County ruled in the favor of the counties, stating that such a funding shift could only be approved by the voters. Whether the State appeals this decision or lives with an even bigger hole in the current State budget remains to be seen.
When a court rules that when the voters approve a tax and specify its use then only the voters can change that is to some of us a no-brainer. None the less, it seems that the Court has let the state politicians know that the will of the voters is not to be tampered with.
Is this the Commission that paid Matt Cunningham $200 an hour to listen to the radio?
yes – each county has their own Commission, but yes, this is the same tax
I believe that was the Orange County Chidlren and Families Commission, and that is but one of the indidents that prompted me to refer to “the award of funds for what appears to be political purposes.” Sorry if I was too gentle on my characterization.
the Commissioners are allowed to self-deal and so they do –
Orange County is perhaps the only county that does not use “First 5” in its name
And what is left out is that this program was supposed to be for ALL children but of course the WHOLE program focus on illegal immigrants and their children. While American Orange County families pay thousands in child care costs, illegal immigrants get it free. It’s really sickening!
Yeah and there is specific evidence that they have pretty much sidelined at least one group. From one of my Facebook Notes
“people, what we have here is a pattern:
Santa Barbara: 56 out of ~40,000+
Ventura (documented): 31 out of ~10,000+
Orange: 1066 out of ~115,000+
In total, of the approximately $55,000,000 received per year in Prop 10 funds in these three counties, of the 165,000 children, only 1,153 African American kids were served.
Though of course some programs cost more than others, for the sake of simple intuitive understanding, and ballpark speaking, about how much did they spend per child (including admin and evaluation costs)?
Prop 10 revenues / approx # kids served = estimated average cost per child served
Santa Barbara $ 5.7 million/40,000 ~$ 140 per child
Ventura $10.7 million/10,000 ~$1,000 per child
Orange $40.2 million/115,000 ~$ 350 per child
And so about how much went to serving African American kids?
Santa Barbara $ 140 per child x 56 = $ 7,840
Ventura $1,000 per child x 31 = $ 31,000
Orange $ 350 per child x 1066 = $373,100
In other words, only about $410,000 of about $55 million went to serving African American kids.
That is only 74/100 of 1% or 0.74% of the money.
There is only upside from this ruling for those who really want the money to be permanently directed to MediCal because now we can get rid of First 5 completely through a new ballot initiative. If they’d piecemealed it away, we’d be stuck with First 5 for another decade.
The problem with the First 5 law is that the Commissioners guard and EAT from the hen house. This lawsuit proved that they also thought the money was “their” money, for their pet projects, as most First 5 funds go to the Commissioner’s agencies or departments. The data is there to prove it. For those who want this state to start spending more responsibly, here’s an easy place to start:
First 5 is dysfunctional and allows the Commissioners to give most of the money to their own agencies. For ALL other agencies in California, this self-dealing is ILLEGAL and for good reason. It’s time to kick First 5 to the curb.
When they can show no proof of positive impact, and they have not, imo, it is little more than embezzlement. For more info, see my Facebook Notes under Ruben Stutter: 25+ articles, 10+ resignations and at least one grand jury can’t be wrong. http://www.facebook.com/note.php?note_id=188253321258716
Connect the Dots: First 5 is a $500 million tax per year DYSFUNCTIONAL waste of money.
LOS ANGELES TIMES
1. Audit prompts L.A. County to seek takeover of First 5 LA, October 25, 2011
2. Leader of First 5 LA education agency resigns after heavy criticism , November 11, 2011
3. First 5 LA’s embarrassment of riches, First 5 LA has an $800-million surplus, November 16, 2011
4. First 5 LA ex-chief to get sizable severance despite having quit, November 25, 2011
http://discussions.latimes.com/20/lanews/la-me-first-five-20111125/10 – the link to the discussions
RIVERSIDE (Riverside Press-Enterprise)
1. Fair bidding?, December 15, 2008
2. Changes urged for ‘dysfunctional’ First 5 Riverside commission , December 17, 2008
3. First 5 Commission looks at perception of conflict of interest, February 25, 2009
4. Riverside County supervisors want to make First 5 Riverside a county agency, March 17, 2009 (and then they did)
SAN DIEGO (San Diego Union Tribune)
1. Member of First 5 Commission steps down, June 3, 2009
2. Deeper conflicts emerge in First 5 funding, June 4, 2009
3. Glaring conflicts: First 5 grant program needs thorough overhaul, June 5, 2009
4. First 5 tightens funding policies: New bylaws target conflicts of interest, June 30, 2009
5. New rules prompt 9 to quit First 5 advisory panel, August 18, 2009
6. First 5 spending plan has old ties, Sept 13, 2009
7. Fix First 5 – now Use funds on health care, not belly dancing?, Nov 21, 2008
FRESNO (Bee)
1. Fresno Co. finds it hard to measure First 5’s results, Dec. 26, 2009
2. Fresno Co. First 5 faces conflict-of-interest worries, Dec. 27, 2009
SAN FRANCISCO (Chronicle)
1. Not all First 5 grants are helping poor kids, Apr 19, 2008
SACRAMENTO (Sacramento Bee)
1. Kids panels hold $2 billion Sacramento Bee, January 17, 2008
2. Program critics claim abuse, want to seize funds, January 13, 2009
TULARE (Visalia Times-Delta)
1. First 5 spends $18k on invitations for a $486 party, just weeks before election, Apr 21, 2009
CALIFORNIA WATCH – Nonprofit, Nonpartisan – Founded by the Center for Investigative Reporting
1. Children’s program balks at $1B in cuts, January 13, 2011
2. Legislature looks to take $1B from First 5, bypass voters, March 10, 2011
3. First 5 commissions sue over state budget, April 12, 2011
4. More First 5 groups challenge state budget , April 14, 2011
5. Brown sends mixed message on First 5 funds, May 19, 2011
6. Pay for ‘First 5’ directors varies widely by county, September 18, 2011
7. Director of First 5 LA resigns following audit, November 11, 2011
ACTOR ROB REINER FORCED TO RESIGN from First 5 (well, him and at least 12 others)
1. Rob Reiner Busted In $23M Conflict Of Interest Scheme – Using Children’s Funds To Further His Personal Agenda http://cctimeswatch.blogspot.com/2006/03/rob-reiner-busted-in-23m-conflict-of_29.html\
2. Meathead Money – Rob Reiner’s Additional Million http://maxine-log.blogspot.com/2006/05/meathead-money-rob-reiners-additional.html
3. Rob Reiner’s Fraud Based “First 5″; Tens of Millions of $$ Not Accounted For in LA http://capoliticalnews.com/2011/10/29/rob-reiners-fraud-based-first-5-tens-of-millions-of-not-accounted-for-in-la/
First, I have no agenda about Prop 8 itself personally, BUT, because people have raised the question as to why Rob Reiner (Meathead) would be interested in making a movie about Prop 8, here’s another view.
Rob Reiner is the progenitor of California’s First 5 Commission, a completely dysfunctional organization (see prior postings above).
Rob Reiner was himself forced to resign from the CA First 5 Board after clear conflict of interest problems and misspending $20+ million.
So – what’s the connection?
Kris Perry is the Executive Director of First 5 California.
Kris Perry is also one of the 4 named complainants in the Prop 8 lawsuit.
For news and more information about the First 5 Commissions, check out http://www.flopped5.org.