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WESTWOOD VILLAGE ROTARY CLUB

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Induction

President Steve asked me to come forward with our new member and induct Janet Schwartz into Rotary. Since Janet is related, I thought it should be extra special and asked Oakland Rotary Club member Finoa Ma to pin Janet with her first Rotary Club pin. Rather than read the stock induction paragraphs, I spoke from my heart about what Rotary has meant to me and how it changed my life and wished the same for Janet. The Club members responded by giving Janet a standing ovation as our newest member. (In two weeks we induct Jerry Bergstein).

Guest Speaker

Fiona Ma is the first woman of color and first CPA elected as State Treasurer. She also garnered the most votes in that position in the history of California. More than 3 trillion transactions clear her office every year, which also covers oversight on government funds and investments. The State of California investment portfolio is currently over $200M. She is also the Agent of Sale for the state funds and trustee of billions more. She was installed as a Rotary member in Oakland a couple months ago, along with Kawanas, Lions and other organizations. (only Rotary really counts!)

As the banker for state of California, $3.7 Trillion dollars passes through her office. Her total portfolio is $150B today, including numerous state boards she sits on as a board member. 

State Treasurer is her fourth elected position, preceded by Assembly and state Senate, (serving ultimately as majority whip and speaker pro tem), and sat on the State Board of Equalization. Fiona also loves to raise money for non-profits. 

Fiona walked through the state of California finances by offering the Club an insight of the past few years, with the visit by Mr. Covid. Everything was moving along and then Covid hit and the state had a $46B surplus. Everyone was still spending money but generated within the state, generating lots of sales tax in the state and not out of state, and still buying and selling stocks, generating capital gains taxes. Then the governor put more money into infrastructure projects and rebated tax funds back to state taxpayers along with the federal stimulus. The following year there was a $96B surplus. This year the state coffers had a $31B deficit due to lay-offs in the high-tech sector, lower home sales, and lower sales taxes collected. She and the governor met the challenge through delayed spending, internal borrowing, and shifted funding. (Tax gimmickry in my humble opinion). Taxes are now due October 16th. The state is expecting $42B to come in from state income tax and $34B in rainy day funds. 

Now the questions from Club members

• PPx2 Chris Gaynor – any pending state tax laws that increase tax revenues? And thoughts on investing in municipal bonds? Answer – in the past you can buy Calif bonds directly. Now you must go through brokers. California has always received very good ratings. Credit agencies upgraded California in her first year term.  

Fiona added that Legislation was passed requiring a budget pass on time or cost legislators their pay. First year legislators lost 4 days of pay. Next year, budget passed early. 

The California Fiscal Year is June 30th 

• PP Ed Gauld – Ed observed that 90% of general fund is generated from personal income taxes and sales tax and a little corporate tax and fees make up the balance. California’s dependency on personal income taxes is the highest in the nation. Prop 13 does not allow the state to increase the property taxes too much. Some people want to change the income tax and include a service fee instead. PP Gordon Fell had the right answer, “Cut costs”. Fiona responded that the state is also looking at oil and gas extraction fees and tobacco taxes. Approximately 99% of state taxpayers in California have until Oct. 16th to pay their taxes. (Schmucks like me paid them early)

• PP Tom Barron had a question about the refund made from surplus funds, but for those who did not pay taxes. Like his barber. 

• Roozbeh asked about how funds are allocated for services. Approx 50% of the general fund goes to K-12 education, health and human services takes about 35% and Medi-Cal, prisons, etc account for about 10% and the balance for other items. 

• Phil Gabriel asked about California going to other states and auditing for the “use” tax. Fiona confirmed that California maintains offices in a number of states to audit out-of-state companies and when they generate the California “use” tax. 

• PP Mike Newman asked what the increased revenues are for the Prop 19 parent-to-child wipe out. And the Capital Gains (which is a federal tax) is forcing people to stay in their house to avoid it. Fiona responded that Prop 21 and 22 addressed that issue, and still allows homeowners to keep their Prop 13 taxes and still leave it to a direct heir, unless the heir(s) rent it or sell it. 

• PP Steve Scherer asked about the impact of migration out of California. Fiona responded that migration exits of high net-worth individuals has had a negative impact on revenues. She does not have a measure on that.

• PE Ben Fisher asked where our local government gets their money – Fiona told us that L.A. City and County governments are notoriously slow in everything without exception, including the paperwork to receive state funds. Also, the 1% millionaire’s tax is underwriting $2.0B in bonds to help homeless. (not sure I got that correctly). 

President Day thanked Treasurer Ma for her talk.  

The meeting was opened by our esteemed President Steve Day, advocating “Great Hope in the World”.

Pres Steve asked Jim Crane to lead us as we recite The 4-way Test and he did it!

Phil Gabriel led us in the Pledge of Allegiance.  

PP Steve Scherer came up to the podium to offer the “Thought for the Day”, offering us wisdom for the masses. PP Steve gave us an alternate choice of a recap of his recent hernia surgery. By unanimous acclamation, the Club chose the surgery. So, Steve told us about his hernia operation. The surgeon offered Steve the choice to watch, using only a local anesthetic. PP Steve absolutely wanted to watch. (you could have heard a pin drop in the room!) There was a 1-1/2 hour dialogue with the surgeon, Steve watching him operate inside his body cavity.  The High Point was wrapping his finger around the intestine. As Steve said, “it was kind of an existential experience”. Service above self. Thank you for sharing, Steve. No one ate any of the catered lunch after that. 😊 Amen.

PP Ed Gauld lead us in a rendition of “Side by Side”.

President Steve asked me to give a history of Sukkot, which was short.

PP Steve Scherer introduced his special guest, the Reverend Dr. Molly Vetter of the Westwood United Methodist Church. Sarah Huang, our UCLA Rotaract President and Vice President Ricky Ramirez also were in attendance.

• This week's meeting will be at the Hillel beginning with social hour at noon. The speakers will be Gina Grelbo and Jill Mather with Volunteer Cleaning Communities.

• Dave Stover announced the Oct 14th Westwood Cleanup 8:30a - 10:30a. All volunteers will start by meeting at the Salvation Army Transitional Village. It's a general clean-up along Westwood Blvd, not among the homeless.

• OPICA Art Show is taking place Oct 14th from 1p - 5p. Volunteers are needed.

• October 14th - Wine, Sip and Sea at the home of Rose and Chris Gaynor in the Palisades. Always a fun party. Remember, if your last name beings with a letter from A to M, bring an appetizer, from N to Z, bring a dessert. Also, bring a bottle of your favorite wine! The party will start at 4:30 (not a.m).
• October 21st - there will be a Rotaract/ Interact event - come see what they're all doing. It will be at the UCLA Luskin Conference Center from 9:30a - 2:00p.

• October 28th - The Rotary PEACE walk sponsored by our favorite Peace Rotarian, PP Marsha Hunt!! This will be at Holman Church Parking Lot on West Adams beginning at 9:00am. Registration is $15.00 pp and includes a t-shirt and refreshments. Let's all get out and support Rotary's Action for Peach and, PP Marsha Hunt!!

• November 5th - Spouse Event at the home of Shirley & Peter More. Please be sure to RSVP.

• November 18th - Rise Against Hunger volunteer opportunity sponsored by the South Bay Rotary. Plan to carpool with other WVRC Rotarians to Volunteer and help feed the hungry.



• November 19th - Foundation Celebration in Marina Del Rey which has sold out but if interested, let President Steve know to put you on the wait list. Opportunity tickets are now available. Go online to the District 5280 website to purchase your tickets or, talk to PP Gordon Fell and ask for a book. It is a $100 donation with the chance to win $5000!! WIN BIG ROTARIANS!!



• April 2-12th Humanitarian Trip to Ecuador is now opened for registration. Sign up now District 5280 Website.

OCTOBER MEETINGS

• October 12th, 2023, at Hillel: Come hear Gina Greblo and Jill Mather talk about the non-profit, Volunteers Cleaning Communities and how they garner a sense of family one community at a time.

• October 19th, 2023, at Hillel: Michael Goldstein, Esq. will talk to us about current trends in the Legal Community.

• October 26th, 2023, on ZOOM with Steve Cotton's very sweet, sweet potato farmer from Northern California who will talk to us about growing this popular vegetable.

WVRC 2023/2024 Leadership Team