How to Dispute Mistakes In Your Credit Reports With the Credit Bureaus

A few helpful tips if you see something that shouldn't be on your credit report.

You can dispute mistakes with the credit bureaus by mail or telephone, but you’ll get the fastest results if you initiate a dispute online. Here are the websites and phone numbers you should use for the credit bureaus when you contact them to dispute errors:

http://www.investigate.equifax.com or 888-800-8859
http://www.Experian.com/disputes or 866-200-6020
http://www.Transunion.com/investigate or 800-916-8800

It’s best to dispute errors one at a time – because contesting a slew of alleged mistakes all at once may cause your dispute(s) to be thrown out. By law, the credit bureaus can opt not to investigate your claims if they deem your dispute(s) to be “frivolous” or “irrelevant.”

What to Expect From the Credit Bureaus

Generally speaking, all three credit bureaus allow you to dispute errors related to the “Ownership” of an account or the “Account Information”/“Status” of an account. For example, when you fill out the dispute investigation forms supplied by the bureaus to mail them in, or when you file an online dispute, the bureaus will ask you to check off boxes that specify what information you are contesting.

Disputing Ownership of an Account

If you dispute “Ownership” of an account, you will check one of these boxes:
• I have no knowledge of this account.
• This account does not belong to me.
• This is not my account; it belongs to a relative or another person with same/similar name.
• This account belongs to my ex-spouse.
• This is a fraudulent account; account opened by someone who stole my identity.
• Fraudulent charges were made on my account.
• Creditor agreed to remove my liability on this account.
• Corporate account.
• I am no longer liable for this account.
• I did not authorize this inquiry.
• This is a fraudulent inquiry.
• Other.

Disputing “Account Information or “Status”

If you dispute the “Account Information” or “Status” of an item, you will check one of these boxes:
• This account is included in my bankruptcy.
• My credit limit and/or high credit amount is incorrect.
• My account balance is incorrect.
• Please verify date of last payment, date opened, date closed, or date of delinquency.
• Please verify the account descriptions shown on my account.
• I have never paid late.
• This account is closed.
• This account is not closed.
• My account is closed per my request to the creditor.
• This account is paid.
• I have paid this account in full.
• I paid this account before it went to collection or before it was charged off.
• Too old to be on file, please remove.
• Terms are incorrect.
• Creditor agreed to remove charges and/or fees.
• Creditor agreed to remove this account from my file.
• This account is transferred to another lender
• I am a victim of a natural or declared disaster.
• I have Active Military Duty status.
• Account is deferred.
• This account is settled.
• Other.

There may be variations in some of the wording. But as of this writing, these are all the possible reasons for disputes at Equifax, Experian and TransUnion.

The Differences Between Equifax, TransUnion and Experian

At Equifax and TransUnion, you can only choose from either the “Ownership” dispute category or the “Account Information” category that best describes your dispute. You can not make selections from both categories.

Equifax’s online dispute system also allows you to add a “Dispute Account Statement.” There you can type up to 250 characters to provide additional information to support your dispute.

At Experian, you can enter up to 120 characters about your reason for disputing something in your credit file. Experian alerts consumers that it will send your statement to the creditor. For example, assume you check the reason for your dispute as “I have never paid late.” If you then want to explain your position, you might add a statement such as: “The creditor said they misapplied my payment,” or “I moved but my creditor acknowledged that they erroneously sent the bill to my old address.” Such statements will be sent by Experian to your creditor to help them understand why you are disputing certain reported information. (Under federal law, all creditor bureaus are supposed to forward your explanation statements or supporting information to creditors/furnishers when you have a dispute. But critics say the credit bureaus routinely violate this requirement just to cut costs and save money).

At TransUnion, the online dispute service specifies that you can make only one submission that includes all of your requests for investigation or changes of information. If you need to make additional requests after your online dispute, you must call or write the bureau. TransUnion’s mail-in form, called a “Request for Investigation,” also includes a section for you to write in additional comments related to your dispute.

Proving That a Mistake Exists is Up To You

Remember: In the event of a mistake, the burden is on you to notify the credit agencies about that error. And it’s not enough to simply say something is “incorrect.”

You have to state why certain information is erroneous or outdated. Once you do, your claim will be investigated. If you have documentation like statements or cancelled checks, provide copies to support your claim.

In general, the credit bureau has 30-45 days to investigate your dispute and respond to you, in writing, with the results of the investigation.

Hopefully this helps and let me know your input.

How to Safeguard Your Credit, Privacy and Accounts While Holiday Shopping

After a tough couple of years, Americans are loosening the grips on their wallets and planning to do a bit more shopping this holiday season.

The National Retail Federation predicts the average U.S. shopper will spend $689 over the holidays, up slightly from $682 in 2009.

Many of us will hop on the Internet to comparison shop and score bargains. But plenty of people will head to the malls and other brick-and-mortar stores to purchase holiday gifts, decorations, toys and more. Here are some helpful tips to safeguard your credit, your privacy as well as your bank accounts whether you’re shopping over the Internet or in person.

For Online Shoppers

While Black Friday – the day after Thanksgiving – has traditionally kicked off the official holiday shopping season, savvy consumers are increasingly interested in Cyber Monday deals that can typically be found only online.

So if you’re like me and you dread the thought of getting up early for in-store deals or battling massive hordes of shoppers, use these guidelines to shop safely and easily from the convenience of your home.

Only Use Secure Sites

The number one rule of safe online shopping – during the holidays or any other time of the year – is to only use secure websites. These are highly safe sites because they utilize encryption technology, which scrambles your credit card number and other personal information, making it nearly impossible for thieves and hackers to steal your data.

You’ll know a site is secure if it has any of these three things:

*a website or order page that says https://. The letter ‘s’ is your clue that the site uses encryption;

*a closed padlock at the bottom of the page. Don’t place any orders on sites where there’s an open padlock; or

*an unbroken key, which also signals safety measures are in place.

Stick With Reputable Sellers

When buying online, it’s best to patronize merchants and retailers you know, or those you’ve done business with before. If you plan to purchase something from an individual or a company that you’re not familiar with, be sure to first check out consumer reviews about the merchant. You can also check out companies from the Better Business Bureau.

Pay the Right Way

Never sends personal checks or money orders for merchandise you buy online. Credit cards generally are a safe option because they allow buyers to seek a credit from the issuer if the product isn’t delivered or isn’t what was ordered.

Guard Your Passwords

Many websites require you to set up an account or create passwords in order to complete online transactions. Be sure to keep passwords private and not divulge them to others. Also, don’t create easy-to-crack passwords, such as those with birthdates.

Read the Privacy Policy

To decrease the chances of winding up on someone’s spam list, or getting unwanted junk emails, always find and read the privacy policy for an online retailer you’re patronizing. Usually the privacy policy is on a website’s home page or in a section called “Legal.” The privacy policy will tell you what information the seller plans to collect from you, and how that information might be used, and how you can stop data about you from being distributed to third parties. Don’t ever give up private information like your social security number to anyone online. And ideally, you’d want to see a seal from a privacy enforcement organization, such as BBBOnLine or TRUSTe.

Complain if Necessary

If something goes wrong with an online purchase – say, your order doesn’t arrive or you get double billed – don’t hesitate to complain to the seller. If your complaints are not satisfactorily handled, you can also register complaints with the Better Business Bureau (http://www.bbbonline.org), the Federal Trade Commission (http://www.ftc.gov or 877-FTC-HELP) or the State Attorney General in either your state or the seller’s state (http://www.naag.org).

For In-Store Shoppers

Those of you shopping in retail stores should follow these tips:

Know the Return Policy

You should know a retailer’s return policies before spending money in a particular store. In addition to getting the low-down on how many days you have to make a return, or what items are and aren’t exchangeable or refundable, pay close attention to return policies that are specifically tied to your use of credit cards. For example, some stores may demand that you show the same credit card used during a purchase if you want to make a return. Others will only give you store credit, or credit back on your credit card, as opposed to cash refunds. Whatever the details, make sure you understand everything upfront before buying anything.

Keep Those Receipts

In the hustle and bustle of holiday shopping, it’s easy to lose track of how much money you spent and where. To minimize your risk of being over-charged and to protect your credit information, destroy carbon copies you might get from retailers, but keep the receipts. Later, check those receipts against the charges shown on your credit card statements to make sure everything is correct.

Limit What You Carry

Don’t carry your entire collection of credit cards, your checkbook and a wad of cash with you all in the same wallet. If a pickpocket targets you or you lose your wallet, you could lose all of it. Instead, leave some things at home and carry only what you need. And remember, never carry your Social Security card in your wallet.

Protect Your Cards

Lastly, you can protect your credit cards in several ways while shopping in stores. Start by only carrying one or two cards with you. Also, always double-check to make sure that cashiers return your credit cards after you’ve made a purchase. And finally, create a list of all your credit card account numbers and the numbers to call if they’re lost or stolen. Put this list away at home for safe-keeping.

By following these steps, you’ll have peace of mind this holiday season, knowing that your personal information, credit and privacy are all being properly guarded while you’re shopping online and in person.

Dos and Don'ts For Credit Card Balance Transfers

Dos and Don'ts For Credit Card Balance Transfers

Shifting debt from one credit card to another can save you lots of money – particularly if you’re taking debt from one high interest rate card and transferring it on another lower interest rate card.

Here are some do’s and don’ts if you’re considering a credit card balance transfer.

DO Look at the Entire Deal
Too often, when people conduct balance transfers, they only look at the interest rates of the credit cards involved. But it’s really wise to look at the overall deal you’re getting.

For example, is there a fee involved to do the transfer? If so, how much? Does your old or new card have an annual fee? What terms apply to each card? What credit limits will be imposed on each card?

Weigh all of these factors in your decision-making, and do the math to make sure a balance transfer makes good economic sense.


DO Get Online
Comparison shop online to make sure you’re getting a good deal. Several consumer-friendly websites – such as Bankrate.com, CardWeb.com and CardRatings.com* – will help you shop around, which can save you time and money when you’re trying to find a card that best fits your needs. The sites let you search for cards in multiple categories, such as:

• Low rate (ranked by APR)
• Low Intro/Promotional Rate
• No Annual Fee
• Rewards (gas, travel, cash-back, etc.)
• Secured (deposit required)
• Business
• Student
• Pre-paid/Gift Cards
• Smart Cards

DON’T Apply for Too Many Cards at Once
I don’t recommend applying for multiple credit card accounts at once, even if you get multiple offers with very low interest rates. Opening up too many accounts at once can actually hurt your credit score for two reasons.

For starters, the length of your credit history is one factor (approximately 15%) used in determining your FICO® credit score. Generally speaking, the longer you have been managing credit, the more positive that influences your score. So if you open several new accounts at the same time, the average age of your accounts will decrease and possibly lower your score. (Source: MyFICO.com)

Additionally, you don’t want to have too many inquiries on your credit report. When you apply for credit, a “hard” inquiry is generated. Even though inquiries account for just 10% of your FICO® credit score, my personal experience has found that it's not uncommon for a single inquiry to result in a double-digit drop in your score.

Although this “hard” inquiry stays on your credit report for two years, the good news is that a “hard” inquiry only counts against you for the first 12 months. After one year, that inquiry is no longer taken into consideration when your FICO® score is calculated. (When you check your own credit report, a “soft” inquiry is generated. “Soft” inquiries have no impact on your credit rating and don’t hurt your score). (Source: MyFICO.com)

DON’T Close Old Accounts Immediately
Some people mistakenly believe that getting rid of their credit cards will improve their credit. Therefore, they immediately close certain accounts once they pay them off, or when they complete a balance transfer. But doing so is a mistake that could hurt your credit score in two ways.

First, if you cancel existing accounts, you don’t get the full benefit of having those older accounts get counted in the “average age” of your accounts. And remember, a longer credit history is viewed more favorably.

Also, if you close a credit card account, especially one that now has a zero balance after you’ve done a balance transfer, you can inadvertently impact your credit utilization rate. With less credit available, your credit usage ratio will increase, lowering your credit score.

So even if you do a balance transfer, it’s generally best to keep open an older account that has a long credit history open. If for some reason you simply don’t want the card any more – perhaps it has a high annual fee – just keep the account open for a while after you complete the balance transfer. Later, you can close it, after you’ve had the new credit card account for a year or so.

Dos and Don'ts For Credit Card Balance Transfers

Dos and Don'ts For Credit Card Balance Transfers

Shifting debt from one credit card to another can save you lots of money – particularly if you’re taking debt from one high interest rate card and transferring it on another lower interest rate card.

Here are some do’s and don’ts if you’re considering a credit card balance transfer.

DO Look at the Entire Deal
Too often, when people conduct balance transfers, they only look at the interest rates of the credit cards involved. But it’s really wise to look at the overall deal you’re getting.

For example, is there a fee involved to do the transfer? If so, how much? Does your old or new card have an annual fee? What terms apply to each card? What credit limits will be imposed on each card?

Weigh all of these factors in your decision-making, and do the math to make sure a balance transfer makes good economic sense.


DO Get Online
Comparison shop online to make sure you’re getting a good deal. Several consumer-friendly websites – such as Bankrate.com, CardWeb.com and CardRatings.com* – will help you shop around, which can save you time and money when you’re trying to find a card that best fits your needs. The sites let you search for cards in multiple categories, such as:

• Low rate (ranked by APR)
• Low Intro/Promotional Rate
• No Annual Fee
• Rewards (gas, travel, cash-back, etc.)
• Secured (deposit required)
• Business
• Student
• Pre-paid/Gift Cards
• Smart Cards

DON’T Apply for Too Many Cards at Once
I don’t recommend applying for multiple credit card accounts at once, even if you get multiple offers with very low interest rates. Opening up too many accounts at once can actually hurt your credit score for two reasons.

For starters, the length of your credit history is one factor (approximately 15%) used in determining your FICO® credit score. Generally speaking, the longer you have been managing credit, the more positive that influences your score. So if you open several new accounts at the same time, the average age of your accounts will decrease and possibly lower your score. (Source: MyFICO.com)

Additionally, you don’t want to have too many inquiries on your credit report. When you apply for credit, a “hard” inquiry is generated. Even though inquiries account for just 10% of your FICO® credit score, my personal experience has found that it's not uncommon for a single inquiry to result in a double-digit drop in your score.

Although this “hard” inquiry stays on your credit report for two years, the good news is that a “hard” inquiry only counts against you for the first 12 months. After one year, that inquiry is no longer taken into consideration when your FICO® score is calculated. (When you check your own credit report, a “soft” inquiry is generated. “Soft” inquiries have no impact on your credit rating and don’t hurt your score). (Source: MyFICO.com)

DON’T Close Old Accounts Immediately
Some people mistakenly believe that getting rid of their credit cards will improve their credit. Therefore, they immediately close certain accounts once they pay them off, or when they complete a balance transfer. But doing so is a mistake that could hurt your credit score in two ways.

First, if you cancel existing accounts, you don’t get the full benefit of having those older accounts get counted in the “average age” of your accounts. And remember, a longer credit history is viewed more favorably.

Also, if you close a credit card account, especially one that now has a zero balance after you’ve done a balance transfer, you can inadvertently impact your credit utilization rate. With less credit available, your credit usage ratio will increase, lowering your credit score.

So even if you do a balance transfer, it’s generally best to keep open an older account that has a long credit history open. If for some reason you simply don’t want the card any more – perhaps it has a high annual fee – just keep the account open for a while after you complete the balance transfer. Later, you can close it, after you’ve had the new credit card account for a year or so.

Housing: Mortgage database's murky legal status adds another wrinkle to foreclosure mess - latimes.com

Housing: Mortgage database's murky legal status adds another wrinkle to foreclosure mess - latimes.com

LA County Fair Discount

LA County Fair Discount


COURTESY OF Bolton and Company

We are again pleased to offer to all Bolton clients, your employees and their family members, special pricing for the LA County Fair, which will be opening Labor Day weekend (Saturday, September 4th). The Bolton rate is $9 for adults (vs. $17 on the weekends) and $6 (vs. $12) for children ages 6-12 (please note that there is a $1 processing fee per order). This discounted pricing can only be obtained online with the exclusive access code as listed on the flyer below.

Enjoy!

NEW CREDIT CARD LEGISLATION

New Credit Card Legislation:
What You Need to Know

New laws have radically changed how credit card companies can operate. Here's what you need to know about the new credit card legislation and how it may affect you.

Over-limit fees have been banned. Purchases are now denied if there are insufficient funds. And if cardholders want overdraft coverage, they must choose to opt in for this service. This is a huge loss of revenue for credit card companies and they've mounted an aggressive campaign to convince cardholders to opt in. The fees are typically $30 for each time you use your credit card and don't have sufficient funds available.

One of the consequences of the new legislation is that credit card companies are reducing available credit limits, some by as much as 50%. If you carry an outstanding balance, this is a concern because a higher debt-to-credit ratio could potentially lower your credit score. On each credit account, it's best to keep debt less than 30% of your available credit.

Credit card bill payments are now due on the same day every month. You can now schedule automatic monthly payments to avoid being late on paying your bill.

Credit card companies are busily sending cardholders the details of their new terms. These new terms might include annual fees, higher interest rates and lower reward points. Cardholders have the option of opting out of these new terms, whereupon the account will be closed. However, under the new legislation, cardholders have five years to pay off the debt under the old terms.

Rose Magazine, Pasadena, California: L.A. Street Food Fest lands at Pasadena's Rose Bowl in July

Rose Magazine, Pasadena, California: L.A. Street Food Fest lands at Pasadena's Rose Bowl in July

For all your real estate needs....

If you know anyone buying or selling their home, I would appreciate a chance to meet with them and discuss my outstanding service...

Thanks -

Jess Mangubat
Dilbeck Realtors - Pasadena
jessmangubat@yahoo.com

Real Estate 411:

Real Estate 411:

[Housing Market] Life After the Tax Credit?
By: Sara Sutachan, senior research analyst

After dipping briefly below the 500,000 mark in April, sales bounced back strongly in May, to a seasonally adjusted annualized rate of 552,800 for single-family detached homes, increasing 14.1 percent from April and 1.2 percent from last May and registered the highest sales pace in the last five months. The current surge in home sales was due in large part to the delay in escrow closings for many first-time buyers who wanted to close in May to take advantage of both the state and federal tax credits.

However, the numbers of properties that went into contract during the month of May dropped 16.9 percent compared to April. That was consistent with expectations that activity may decline once the federal tax credit deadline passed. Looking forward, we can expect the flurry of sales dealing with tax credits to subside somewhat. However, with the state’s unsold inventory index at very lean levels (4.6 months in May, well below the long-run average of about seven months) and with mortgage rates expected to be favorable, prices should remain steady or perhaps even increase in the coming months.

For questions about Real Estate 411, please contact the Research & Economics Department at research@car.org or (213) 739-8352

2010 Decline in Value

NOTICE OF REVIEW OF 2010 ASSESSED VALUE

California Law provides for a temporary reduction in assessed values when the Prop 13 value of a property excees the actual market vlaue as of Jan 1.


For more information regarding decline-in-value reassessments, please visit the Assessor's website at
http://assessor.lacounty.gov and review the information.

If you have any questions please feel free to call me.

Remember this is a free service!!

Various private companies may be sending mailings to property owners offering their services to pursue a reduction in their property taxes. These companies may charge hundreds of dollars to file for a reduction in value on behalf of the property owner. Some companies even impose late fees if the application is received after an arbitrary deadline. Be aware that solicitations from private companies offering to pursue a reduction in property taxes must clearly indicate that they are NOT a government agency and that their services are NOT approved or endorsed by any government agency. Failure to provide such notice is a violation of California law.

I hope this information is useful. Thank you for following my blog.

Enjoy the your weekend!!

Jess Mangubat
Dilbeck Realtors - Pasadena
626.431.2266
jessmangubat@yahoo.com

Governor Schwarzenegger Signs $10,000 Homebuyer Tax Credit Legislation

Governor Schwarzenegger Signs $10,000 Homebuyer Tax Credit Legislation

Posted using ShareThis

FIRST TIME HOMEBUYER CREDIT HAS EXTENDED!!

First-time homebuyers have to sign a purchase agreement by April 30, 2010,
and close by June 30, 2010. The income limit for claiming the
full tax credit for single taxpayers is $125,000 and $225,000 for married taxpayers filing a joint return. The tax credit does not have to be repaid. Homes purchased for up to $800,000 are eligible.

A first-time buyer is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers,
this includes the home ownership history of both spouses.

THE FIRST-TIME HOMEBUYER TAX CREDIT
Did you know that first-time homebuyers have accounted for 53% of all
real estate transactions in 2009?1 Are you prepared to achieve your dream of purchasing their first home?

Know the good news about this exciting tax credit!

Call me today....

DILBECK REALTORS CHARITABLE FOUNDATION

We are once again asking for your HELP!

DILBECK REALTORS CHARITABLE FOUNDATION

IS TEAMING UP WITH OUR LOCAL CHAPTER OF THE AMERICAN RED CROSS TO HELP THE VICTIMS OF THE HAITI EARTHQUAKE.


DOUBLE YOUR DONATION!!!!

As all of you know . . .Tuesday, a 7.0 magnitude earthquake caused widespread damage on the island of Haiti, especially in the capital city of Port au Prince. Every building has been damaged. Every hospital has been destroyed...every school, every house, every car, every street, every makeshift home, every orphanage, every church, every shantytown; even the capital’s main prison and presidential palace have been ruined by Tuesday’s massive earthquake. The sheer magnitude of this quake seems to have left the government there unable to mount any significant relief effort. Haitians are digging through the rubble with their bare hands as international relief agencies mobilized. It's the disaster of the century,! It has been reported that there are thousands and thousands of dead and injured.



Our Local Red Cross Needs our Help.


Dilbeck Realtors & Associates Charitable Foundation is starting a Matching Funds Drive to help the quake victims of Haiti.
The foundation’s Grants Committee is putting in place a matching grants program where the foundation will match every dollar contributed, up to $5,000. This means, if you give $25 your donation will be $50.




HERE IS HOW YOU CAN HELP AND DOUBLE YOUR DONATION:


Due to the immediate need of these victims your donation must be received by
Monday, February 1st.
Please pouch your tax deductible donation to Dennis Falsetti in the La Canada office.

Make your check payable to American Red Cross – Haiti Earthquake Relief Fund

To make a credit card donation: download a credit card authorization form from the Dilbeck intranet, fill out the information and forward to Dennis Falsetti in our La Canada office.


THANKS FOR YOUR BIG HEART!

If you have a question please contact me,
Bev Widney, 626-852-3929, or email, bev.widney@dilbeck.com or
Phone Dennis Falsetti, 818-949-7848 or email, dennis.falsetti@dilbeck.com

1st Time Home buyer Tax Credit information

Tax Credits Provide Outstanding Opportunities for Home Buyers
The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. It also authorized a tax credit of up to $6,500 for qualified repeat home buyers.

Frequently asked questions about the $8,000 first-time home buyer tax credit.
Frequently asked questions about the $6,500 tax credit for repeat home buyers.
Some key points for prospective home buyers.
Special rules that apply to members of the military, the foreign service and the intelligence community.

check on the link below for more answers to your questions - http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.federalhousingtaxcredit.com%2Ffaq1.php&h=c542376675fc547bc9f838bce95e35fc

Thanks again everyone!


Jess Mangubat
626.797.1886
Jess Mangubat@yahoo.com

BCS NATIONAL CHAMPIONSHIP GAME

The City of Pasadena is pleased to welcome the 2010 Citi BCS National Championship Game.

On Thursday, January 7th, 2010 at 5:00 p.m. (PST) the Rose Bowl will host a match up between the Texas Longhorns and the Alabama Crimson Tide. This game will be broadcast exclusively on ABC.

Date: Thursday, January 7, 2010
Time: 5:00 p.m. (PST)
Match-Up: No. 2 BCS-ranked Texas Longhorns vs. No. 1 BCS-ranked Alabama Crimson Tide
Location: Rose Bowl Stadium in Pasadena, Calif.
Television: ABC

Fellow Residents, plan your drive home accordingly. There will be additional traffic.

Enjoy the GAME!!!

Gov. Schwarzenegger Lays out Priorities, Urges Continued Bipartisan Teamwork in State of the State Address

Today, Governor Arnold Schwarzenegger delivered his annual State of the State address before a joint session of the California legislature. The Governor reflected on the teamwork that brought California through the worst recession since the Great Depression in 2009 and laid out his vision for California in 2010.

“This coming year can be summarized in one word: priorities. As we face another round of fiscal challenges, we must get our priorities straight and keep them straight. Creating jobs and getting our economy back on track, protecting education, reforming our tax and pension systems and putting an end to our boom and bust budget cycle must all be priorities,” said Governor Schwarzenegger. “I know that if we can recreate the teamwork we built last year and focus together on these priorities, California, already seeing clear signs of recovery, will emerge from these difficult times stronger and more vibrant that ever.”

In his speech, the Governor announced two new California initiatives: the California Jobs Initiative, designed to create jobs and ensure California is a better partner to the economy, and Operation Welcome Home, a program to ensure returning veterans are provided access to the services and opportunities they deserve. In addition, the Governor announced a historic shift in California’s priorities by proposing a constitutional amendment to ensure that the state never again spends a greater percentage of funds on prisons than on higher education.

The Governor also continued to push the priorities he has been advocating for years, including fighting for California’s fair share of federal funding, tackling tax and pension reform and reducing prison costs. The Governor went into detail on each priority and provided specific proposals, which include:

Constitutional Amendment to Increase Higher Education Funding
While this budget year will pose many challenges, the Governor drew the line at education and called for a historic realignment of California’s priorities. He announced that he would work to protect California’s schools and to shield higher education from further cuts. The Governor called on the legislature to help him make California’s education system a higher priority than prisons. Specifically, he proposed:
A constitutional amendment to ensure California cannot spend a greater percentage of General Fund (GF) dollars on its prisons than on higher education.
Under the Governor’s initiative, no less than ten percent of GF dollars would be allocated to fund public institutions of higher education and no more than seven percent would be allocated to support the state prison system. These mandatory limits would begin in the 2014-15 fiscal year.
The Governor announced that the amendment will include a provision that allows the California Department of Corrections and Rehabilitation the authority to contract with private entities – while retaining all authority - to build or operate prisons and manage or transfer inmates. This would save the state billions of dollars per year.

Click here for additional information on the Governor’s proposal

Jobs and Economic Growth
The Governor made it clear that his number one priority in 2010 is fostering a business-friendly economy and creating jobs. In his speech, he outlined measures he will present to the legislature to achieve that priority including:

The California Jobs Initiative, a program to pump jobs into California by creating or retaining up to 100,000 jobs and providing training to 140,000 individuals to enable them to retain their current positions or compete for higher paying jobs.
A measure to streamline the permitting of construction projects that already have a completed environmental impact report.
A proposal to extend and expand the $10,000 homebuyer tax credit to include the purchase of existing homes in addition to new residences for first-time homebuyers.
A proposal to eliminate sales taxes on green tech manufacturing equipment.
A proposal to eliminate frivolous lawsuits that punish California’s small businesses.

Click here for additional information on the Governor’s proposal

Budget and Tax Reform
For years, Governor Schwarzenegger has been calling for structural reforms in how California budgets and spends its money, and this year is no exception. In 2009, California's economic growth declined 2.8 percent, but our tax revenues were down more than 8 times that much – reinforcing the fact that our budget woes are self-inflicted wounds.

The Governor called on the legislature to work with him to fix California’s broken tax system and take up the bold reforms proposed by the bipartisan Commission on the 21st Century. Restructuring our tax system will help ensure California has a stable, reliable revenue stream to fund the state’s vital programs and services.

Click here for additional information on the Governor’s proposal

Pension Reform
In 1999, the legislature boosted lifetime pensions for government employees without setting aside enough money to pay for them. Now annual pension costs are up over 2,000 percent just in the last ten years and will keep on growing and crowding out other programs unless we take action. Every dollar needed to meet underfunded pension promises is a dollar taken from higher education, environmental protection, parks and recreation and other important programs. To protect programs and taxpayers, the Governor called on the legislature to make pension reform a priority this year and to pass legislation reducing pension burdens going forward.

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Federal Funds
The Governor is committed to building a more fair and equitable financial relationship with the federal government. California must be reimbursed for overspending mandated by federal regulations and relieved of the costly burdens placed on our programs that restrict us from living within our means.
The Governor will fight for a permanent shift in the monetary relationship between California and the federal government.
Being a border state, California has a heavier financial burden when it comes to security, but the federal government is not sharing that burden fairly. The Governor will fight to restructure this inequitable funding arrangement.
While the Governor has always been a strong supporter of health care reform, the legislation currently being debated in Congress will pile billions of dollars in additional costs on California. The Governor followed up his December 22, 2009 letter to Speaker of the House Nancy Pelosi and members of the California Congressional Delegation by calling on them to either vote against the current legislation or fight for a more equitable deal for California.

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Operation Welcome Home
California has more returning veterans than any other state and the Governor committed to making these brave men and women a priority. Operation Welcome Home will put 300 recent veterans to work identifying and making direct contact with the 30,000 heroes returning to California annually to counsel them about benefits and transitional workforce training available to help them enter the workforce and transition successfully from the battle front to the home front. Specifically, Operation Welcome Home:
Establishes nine regional full-time teams that will assist veterans in finding employment and job training, educational opportunities, housing, mental and physical health care, federal benefits and support for their families.
Launches the California Veteran Corps, a volunteer network to reinforce the efforts of the full-time regional teams.

Click here for additional information on the Governor’s proposal