Why The Perata/CDP Scandal Threatens The Budget Fight

(Air America readers take note: I also cover California politics at my site and Calitics, the progressive website for the Golden State. Forgive my parochial interests today)

As many have noticed, the Leadership has moved on the offense in the budget fight. They're not negotiating with themselves, instead staking out a fairly strong position for changing the revenue model and rejecting a stop-gap, borrow-and-spend, cuts-only approach. Media wags, who normally act like two year-olds and talk about "working together" as if this would solve the problems in Sacramento, are responding to the aggressive approach. George Skelton writes today about how California voters "can't handle the truth," how they want unlimited services without paying for them, and how they need to face reality. He also specifically cited the 2/3 requirement as crippling the state. Dan Walters says it's about time for a "budget cage-match," the ideological battle to once and for all address the structural deficit and budgeting-by-catastrophe that has become commonplace.

Yet at the same time, the California Democratic Party hands $250,000 to the Senate President Pro Tem to pay for his legal bills, causing oodles of outrage. Over the last two days I've been given a lot of reasons for this. "The money was earmarked for Perata," they say. Perata has his own campaign account already and he's perfectly capable of raising his own cash. If people want to hide their donations by legally laundering them through the CDP, that's nothing the state party should involve itself with. There ought to be transparency. "He's being railroaded," they say. That's certainly possible in an era of Bush league justice, but nobody is making that case credibly, just talking about how long the investigation has dragged on.

And then there's this excuse. "If the Senate leader is indicted, that will hurt downticket races." But the appearance of impropriety in the CDP legally laundering contributions and paying for Perata's legal defense fund is doing the EXACT same thing, and at a crucial time. The LAT op-ed that Bob mentioned is just the beginning.

Furthermore, I have no idea why Sen. Perata is still the leader. Sen. Steinberg, who did a $10 fundraiser in Sacramento a couple days ago and who I feel represents a breath of fresh air, is perfectly capable of carrying out the duties, and having someone this tainted as the face of the budget fight is incredibly damaging. It won't be long before the press connects this story and the budget story, and then all the mostly laudable efforts to cast a stark difference between Democrats and Republicans on the budget will be compromised. For the life of me, I can't figure out why the caucus has not demanded immediate leadership elections. I believe Steinberg is scheduled to take over on August 11, when we'll already be down the road in budget negotiations. It is the height of stupidity to thrust someone into the leadership at that late date. He should have been in there a month ago.

At the least, Perata can return the money and throw himself fully into this budget fight as a means of preserving what's left of his legacy. The CDP can return to its core mission of electing Democrats, and if it has to give back this $250K to donors, so be it. But at a time when the momentum is on Democrats' side and the budget fight is going to consume all the oxygen for the next couple months, allowing a distraction like this is a huge mistake.