However, a spokesman for Google sought to assure the anxious musclemen that their future was safe.
The company, which moved in to 100,000 sq ft of office space in Venice last year, will be taking over the lease on the Gold's building in 2014, but appears to be intending to sublet the gym to Gold's.
The spokesman said: "We have no plans to expand into Gold's Gym space. In fact, we are working with them to extend their lease."
Local councillor Bill Rosendahl said: "We have been thoroughly assured that Google appreciates the significance of Gold's Gym to the Venice and bodybuilding communities, and wants the gym to stay where it is."
Source: www.telegraph.co.uk
California’s Stockton May Skip $10 Million Owed on Debt - Bloomberg
Stockton, California, facing a $26 million deficit, laid out a bankruptcy contingency plan that includes skipping $10.2 million in debt service in the fiscal year that starts next month.
The plan, described on Stockton’s website yesterday, would pair a total of $12 million in debt expenditure reductions with $11.2 million in cuts to employee pay and benefits. It will be presented to the City Council June 26 for consideration.
The community of about 292,000, described as the 10th-most dangerous in the U.S. in terms of violent crime, is poised to become the biggest U.S. city to enter bankruptcy. The council will vote on the plan a day after the close of mandated talks with creditors on concessions to help avoid a bankruptcy filing.
“The city cannot assume that agreements reached will enable the City Council to completely close the budget gap,” City Manager Bob Deis said in a memo accompanying the plan. The plan says the city’s proposed general-fund budget for fiscal 2013 has an operating shortfall of $25.9 million.
If tentative agreements are reached in the talks, “they will be honored and will contribute to the city’s ability to use bankruptcy as efficiently and expeditiously as possible,” he said.
The city, located about 80 miles (130 kilometers) east of San Francisco, is required by the state constitution to adopt a balanced budget for the year that starts July 1.
Retiree Cuts
The plan, which would produce a general-fund surplus of $39,000, includes a $7.1 million reduction in payments for retiree medical benefits for a year before eliminating the payments the following year. Deis has said escalating health costs for pensioners contributed to the city’s insolvency.
The debt service reductions would skip paying $5.8 million owed on 2007 pension-obligation bonds and $2.6 million on 2007 variable-rate debt lease-revenue bonds for a new City Hall. The plan also calls for appropriating $3.5 million for Chapter 9 restructuring costs.
The council voted June 5 to give Deis the authority to seek Chapter 9 municipal bankruptcy protection for Stockton as soon as June 26, if the negotiations with creditors fail.
Stockton could join Central Falls, Rhode Island, which filed in August after failing to win union concessions, and Jefferson County, Alabama, which initiated the biggest U.S. municipal bankruptcy in November, with $4.2 billion in debt. Vallejo, California, near Napa Valley’s famed wineries, exited court protection last year.
Fiscal Factors
Stockton buckled under the weight of retiree health costs, dwindling tax dollars in the wake of the recession and accounting errors that overstated municipal revenue. City officials in February agreed to the talks with creditors under a labor-backed state law aimed at deterring bankruptcy filings while providing guidelines to follow.
Negotiations began on March 27 and were extended to June 25. The California Public Employees’ Retirement System, the largest U.S. pension, and San Francisco-based Wells Fargo & Co. (WFC), the nation’s biggest home lender, were among 18 creditors involved in the talks.
“By the time the City Council hears this item, we are hopeful that we will have reached tentative agreements with some creditors,” Deis said in the memo.
The community’s financial practices and reporting are the subject of a state investigation to clarify the fiscal situation, California Controller John Chiang said in April.
To contact the reporter on this story: Alison Vekshin in San Francisco at avekshin@bloomberg.net
To contact the editor responsible for this story: Stephen Merelman at smerelman@bloomberg.net
Source: www.bloomberg.com
California Budget 2012: Gov. Jerry Brown Reaches A Deal With Democratic Leaders - Huffington Post
SACRAMENTO, Calif. — California will close its projected $15.7 billion budget deficit by restructuring the state's welfare program, streamlining health insurance for low-income children, and reducing child care coverage and college aid, as part of a deal Gov. Jerry Brown and Democratic leaders announced Thursday.
The governor and lawmakers provided only broad outlines of the cuts and few hard dollar figures, but Brown said the deal met his demand for permanent welfare reform and is enough that he now is willing to sign the main budget bill Democratic legislators sent him last week.
Even with the changes, the state's new spending plan still relies heavily on voters in November approving Brown's initiative to raise the state sales tax and increase the income tax on people who earn the most. If that ballot measure fails, automatic cuts would be triggered; among other things, public school years would be cut by as much as three weeks.
Senate President Pro Tem Darrell Steinberg said with a budget outline in place, it's now up to voters.
"If we pass those taxes in November we will be in a new chapter," the Sacramento Democrat said.
The Legislature passed a $92 billion budget Friday but the Democratic governor pressed members of his own party for deeper cuts to welfare and other social services. Several companion bills must also pass before the state's spending plan can take effect July 1. Votes will occur next week.
"This agreement strongly positions the state to withstand the economic challenges and uncertainties ahead," Brown said in a statement. "We have restructured and downsized our prison system, moved government closer to the people, made billions in difficult cuts, and now the Legislature is poised to make even more difficult cuts and permanently reform welfare."
Democrats have majorities in both the Assembly and Senate and can pass the budget without any Republican votes. Republicans have been shut out of the budget negotiations and said the pending agreement won't receive adequate public scrutiny.
"My biggest concern is I think the public has a right to see what's in this budget before we vote on it, and that's not going to happen," said Sen. Bill Emmerson, the ranking Republican on the Senate Budget Committee.
He objected to provisions that take hundreds of millions of dollars from a national mortgage settlement with big banks to help balance the budget, and he said the welfare revisions would not save the state money in the upcoming fiscal year.
"I just don't see where it is going to create the savings they say it is," Emmerson said.
Under the state's welfare-to-work program known as CalWORKS, Democratic leaders agreed to Brown's request to phase in a two-year time limit for new recipients to find work. Currently, parents on welfare have four years before they risk losing cash aid.
The two sides agreed to eliminate Healthy Families, a children's health insurance program for low-income working families, by slowly moving 880,000 children into Medi-Cal, the state's version of Medicaid. Lawmakers say the move will streamline health coverage and save the state on administrative costs.
Welfare advocates applauded the transition to make health care more efficient, but doctors and advocates for families currently in Healthy Families worried the move would limit access to care. Currently, a family of four can make up to $30,000 and qualify for Medi-Cal, while a family of four can qualify for Healthy Families with an income of up to $56,000.
"The governor and legislative leaders have struck a short-sighted deal that unnecessarily puts the health of California children at risk," said Wendy Lazarus, founder of The Children's Partnership, a Santa Monica-based nonprofit children's advocacy group.
Doctors and health providers receive a higher reimbursement rate from Healthy Families than from Medi-Cal. Dr. James Hay, president of the California Medical Association, said the shift could make it harder for children to see their doctors.
Brown and Democratic leaders also agreed to reduce funding for child care assistance by 8.7 percent, which will reduce the number of slots available to low-income families by 10,600. Cost-of-living adjustments will also be suspended through 2015.
College aid under the Cal Grants program will also be reduced beginning in the 2013-14 school year.
Steinberg, the Senate leader, said legislative negotiators prevented deeper cuts to in-home support for now but will negotiate more savings in the future.
"We have a good deal with the governor," said Assembly Budget Committee Chairman Bob Blumenfield. "We were 99 percent there with the governor before. He took our bills, he still was pushing to go a little bit further, and we were willing to work with him and try to work out some of the details, and we've done it."
The deal counts on voters approving Brown's tax initiative, which would raise income taxes for people earning $250,000 or more a year and increase the state sales tax by a quarter cent for four years. The governor projects the tax would raise $8.5 billion in the upcoming fiscal year.
A rival proposal, backed by Los Angeles attorney Molly Munger, would raise income taxes on nearly all Californians, with the biggest increase on the wealthiest Californians. All revenue from her proposal would go directly to public schools, while Brown's measure would use the money to prevent deeper cuts to schools and guarantee money for local public safety.
___
Associated Press writers Hannah Dreier and Don Thompson contributed to this report.
Source: www.huffingtonpost.com
California serial killer arraigned on '70s NY murders - msnbc.com
NEW YORK (Reuters) - Convicted California serial killer Rodney Alcala was arraigned Thursday in Manhattan Supreme Court on charges of murdering two women in the 1970s, the same decade when he appeared on "The Dating Game" television show as a bachelor contestant.
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The 68-year-old Alcala, who was extradited from death row in California to New York and arrived Wednesday, entered court in handcuffs and an orange corrections jumpsuit, his graying hair held back in a ponytail. He pleaded not guilty to the charges.
A professional photographer, Alcala lured his victims by offering to take their pictures, according to prosecutors. He was convicted of killing a 12-year-old girl and four women in California, where he has been imprisoned for more than 30 years.
The cold case unit of the Manhattan District Attorney's office indicted Alcala on the two murders last year, after conducting more than 100 new interviews with witnesses.
Airline flight attendant Cornelia Crilley, 23, was found murdered in her Manhattan apartment in 1971. Ellen Hover, also 23, the daughter of a nightclub owner, was killed in 1977.
(Reporting by Joseph Ax; Editing by Jackie Frank)
(c) Copyright Thomson Reuters 2012. Check for restrictions at: http://about.reuters.com/fulllegal.asp
Source: www.msnbc.msn.com
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