CA: Setting bipartisan tone, Schwarzenegger proposes massive bond

SACRAMENTO (AP) - Attempting to rekindle his image as a bipartisan populist, Gov. Arnold Schwarzenegger on Thursday urged cooperation among lawmakers and proposed a sweeping $222 billion public works program that would require the largest bond package in state history.

The governor's annual State of the State speech addressed issues basic to the lives of most Californians, including more funding for public schools, rebuilding freeways and transit systems, improving air quality and raising the minimum wage.

He asked Californians to move beyond a year filled with acrimony over the special election he had called and devoid of significant political accomplishment.

"I have absorbed my defeat. I have learned my lesson. And the people, who always have the last word, sent a clear message - cut the warfare, cool the rhetoric, find common ground and fix the problems together," Schwarzenegger said before a packed Assembly chamber. "To my fellow Californians, I say, 'Message received.'"

The governor's speech was his third State of the State address but was widely viewed as among the most pivotal appearances of his political career. Facing re-election in November, his task was to persuade Californians to set aside any lingering bitterness over last year's election campaign and regain the bipartisan image that made him so popular his first year in office.

The vision Schwarzenegger laid out in the 30-minute speech proposed a bold program for rebuilding the state's aging freeways, bridges, schools and flood-control systems.

The governor proposed spending $222.6 billion in public works improvements over 20 years, to be paid in part by $68 billion in new general obligation bonds. The bonds would go before voters in a series of elections between 2006 and 2014.

The governor also pledged that his plan would ensure fiscal prudence for a state that grappled with multibillion dollar budget deficits before he took office in 2003. One aspect of his "Strategic Growth Plan" would constitutionally cap debt payments, limiting them to no more than 6 percent of the state's general fund revenue.

Schwarzenegger said his plan is necessary to keep pace with California's expanding population, which is expected to hit 46 million people by 2025. The state has not embarked on such a massive series of public works projects since the 1960s.

"We cannot spend more than we have, but at the same time cannot afford costly delays in investing in critical infrastructure," he said. "The reality is that we face more than $500 billion in infrastructure needs over the next 20 years."

The address by California's 38th governor contrasted sharply with his speech a year ago. At that time, he threatened a special election if lawmakers didn't meet his demands on a variety of budget and government reforms.

It was his first statewide speech since voters rejected all four of his ballot measures on Nov. 8.

Schwarzenegger tried to reposition himself in the political center, a step that could be crucial for his re-election chances as a Republican running in a state where two-thirds of voters are registered as Democrats or independents.

"I hope the members of the Legislature also heard the message that the people want us to work together," the governor said. "I have always felt that the people are my partners."

His proposed budget for the 2006-07 fiscal year is expected to include $4.3 billion more for public schools and a freeze in university fees. A predicted $5.2 billion in extra, unanticipated tax revenue next fiscal year gives the governor a welcome boost.

He also has proposed a $1-an-hour raise over two years in the state's minimum wage.

Democratic leaders welcomed Schwarzenegger's conciliatory approach, saying they were willing to work with him in the spirit of what Assembly Speaker Fabian Nunez called "principled compromise."

He said both parties realize that Californians want an end to partisan squabbling. Instead, they want lawmakers and the governor to address problems in transportation, education, health care and other bread-and-butter issues. Democrats also desire consensus, Nunez, D-Los Angeles, said during the formal Democratic response following Schwarzenegger's speech.

"Even in an election year, when rational voices will be more difficult to hear, we pledge to place the interests of all Californians above the interests of politics," Nunez said. "We expect the governor to do the same.

State Sen. President Pro Tem Don Perata praised what he called Schwarzenegger's back-to-basics approach, especially the emphasis on rebuilding the state's schools and universities, as well as its transportation and water systems.

Perata, D-Oakland, introduced his own bond proposal nearly a year ago to provide money for transit systems, housing and levees.

"As long as the focus is on basic problems like that - ones that really affect our lives - this Legislature will be able to work with this governor," Perata said. " We all know this is an election year, but we still have a window to get some big stuff done before the usual bickering starts."

Reactions to the State of the State
By Capitol Weekly Staff

E-mail article
(published January 5th, 2006)
http://www.capitolweekly.net/news/article.html?article_id=419

Gray Davis

It was like night and day. In Year 1 he took this moderate approach, in Year 2, he took a detour to the right, got his head handed to him in the election, Year 3 he's back on a moderate, bipartisan, visionary approach. I give him very high marks for his speech. I'm pleased on the emphasis on infrastructure. The only thing I would fault him for is for sort of pulling his punches on prescription drugs.

Dan Schnur, GOP political strategist

No governor ever wins or loses reelection based on his state of the state address, but Schwarzenegger took a good first step in the right direction...

The causal swing voter who he needs to win back heard three things: number one, I apologize; number two, let's build roads and schools and other things you like; and number three, I want to work with the Democrats. That's what voters need to hear.

There wasn't much in the speech that a conservative Republican would hate. Conservatives don't hate prescription drug access, or lower college tuition.
But there wasn't much in here to motivate them, either. Schwarzenegger already is on his way to the political center, but his other challenge now is coming up with something that will inspire the Republican base."

Bob Balgenorth, President, State Building and Construction Trades Council of California

I was glad to hear the build, build, build. Now, for the first time, the governor and the Assembly and the Senate all seem to be on the same page. Maybe we'll get around to actually building something.I don't think it's clear what he's doing with organized labor. I know we handed him a tremendous defeat in the special election. He started out okay when he was elected, but he later turned against us. Now, we're leary.

"What's important is that every single person is talking about the need to build, and they have not done that for a long, long time."

Bob Mulholland, advisor, Phil Angelides for Governor

He sounded more like a supply sergeant than a governor. Not very impressive. I don't think and historians will ever mention this speech. For a guy who had two months to prepare, he came across like he only had two hours. I just was surprised. And he is the first governor never to introduce his wife. Did you notice that?

Sen. Carole Migden, D-San Francisco

I'm in a state about the State of the State!

As always, the governor talked a good show, he was well scripted and a little giddy in his embrace of the Democratic agenda. Words for him are easy, but follow-through has been his downfall.

What is new here, for the first time, is the governor's pledge to work with the Legislature instead of ridiculing us. I am glad he got the people's message and is now prepared to do his duty, which is to build consensus. It would help if he spent time here in Sacramento and stayed focused.

Doug Aadland, Chairman of Transportation California

While the scale of what the Governor is proposing in infrastructure investment may seem ambitious, it is really the least that we can afford to do to begin closing the gap created by years of disinvestment and procrastination. The cost of continuing to neglect California's transportation system and other infrastructure needs is far greater than what is being proposed.

The transportation community is also heartened that an integral part of the infrastructure package will be a constitutional amendment to protect Proposition 42 funds in the future. The voters have made it loud and clear that they want sales taxes paid at the pump used for transportation and not diverted to fill gaps in the General fund. It is also vital that transportation receive full funding from Proposition 42 in the 2006-07 Budget.

Patrick Dorinson, former Schwarzenegger administration official

The only thing I found missing was any mention of pension reform. That's the elephant in the closet..We have all these contracts coming up this year with the state bargaining units. This is a larger problem than just sitting down with the Legislature. All these cities have their own pension-fund liabilities.

Tom Sulliuvan, radio talk show host
Before the speech, I was wondering, 'Will the real Arnold Schwarzenegger please stand up?' But this was classic Schwarzenegger, with big ideas, positive thinking-that's Schwarzenegger. I was pleasantly surprised. I was worried that he was going to try to pander to different political wings, and instead it was classic Schwarzenegger, with big ideas.

When he ran for office, he said he wanted recovery, reform and rebuilding. We got the recovery, and now he is trying to push reform and rebuilding."

Jon Fleischman, editor, The Flash Report

I don't mean to be too cute, but since I read his address from last year before coming up to Sacramento, I now am wondering if this is a movie plot, and the Governor will announce that this speech was given by an alien that had taken over his body... Seriously though, the governor was specific about massive borrowing and building but didn't talk much about debt repayment. Oh yes, and there is that minimum wage hike... Grrr.

Rose Ann Demaro, California Nurses Association
What assurances will Californians have that these projects will not accrue hundreds of millions of dollars in profits to Arnold¹s deep pocket donors? Given this governor¹s history of handing out political favors to his campaign contributors, Californians have every reason to be extremely wary of who will get these lucrative contracts. The $250 million to $300 million squandered in the unnecessary special election and the Abramoff scandal are clear evidence that an overhaul is needed to protect our democracy and sharply cut the undue influence of corporate interests.

Gale Kaufman, consultant, Alliance for a Better California
While Gov. Schwarzenegger appears to have changed his tone, the truest test will be whether he actually does what he says. Since taking office, the governor has broken a number of important promises. So while we're hopeful, we're naturally skeptical about what he says.

Sen. Dianne Feinstein
"I have been briefed on the Governor's proposed infrastructure investment plan and am very pleased to see that it sets up a 10-year investment program particularly in the areas of flood protection/water infrastructure and transportation -- two of California's major needs.
In the next 20 years, California could grow to nearly 50 million people with a water and transportation infrastructure sufficient for half the population. This is clearly untenable and this 10-year program is a major step in remedying the situation. I will do all I can to work with the Governor and the State Legislature to see that this infrastructure plan is carried out. And when a federal match is required, I will fight for the federal dollars involved."

California GOP Chairman Duf Sundheim
"Every Californian deserves a financially responsible government committed to protecting public safety and providing top quality vital state services such as education and transportation. They deserve a government that will work to improve the state economy, create jobs for California's workforce, and allow families across the state to keep more of their hard earned money by not raising taxes.

"A strong economy and good quality of life require a long term vision. Governor Schwarzenegger made it clear in his speech that without raising taxes this vision can become a reality. Now it is up to Democrats and Republicans in the Legislature to work with the Governor to come up with a sound fiscal plan that is in the best interests of this, and future generations of Californians.

California Democratic Party Chairman Art Torres
"While the Schwarzenegger we saw tonight espoused Democratic ideals such as providing affordable prescription drugs for our seniors, fully funding education for our children and repairing our infrastructure, time will tell how genuine this governor is. We will see how long his walk on our side of the aisle lasts. After Schwarzenegger wasted immense amounts of time and money on his right wing agenda that failed, he is now trying to reinvent himself.

"We stand ready to work with him for the good of our state; however we are wary of his sudden changes of heart, especially given some of his most recent actions: he has indicated, after vetoing legislation to raise the minimum wage, that he now supports raising it. After twice vetoing legislation by Majority Leader Dario Frommer (D-Glendale) to allow prescription drug importation from Canada, Schwarzenegger now indicates that he supports it. And he just hired a right-wing campaign manager who works for Dick Cheney and George Bush, and who Newsweek magazine characterized as an 'artillery shell.'

"We wait to see if the Governor is genuine--we hope that he is for the good of our state.

Art Pulaski, California Labor Federation
California's unions want to work with the Governor and the Legislature to achieve great dreams for Californians. We don't want more short-term, politically expedient solutions.

We must increase and index the minimum wage so that our lowest wage earners can regain and retain their purchasing power. Since Schwarzenegger was elected, the minimum wage has already lost 10% of its purchasing power.

The Governor's proposal to rebuild California's crumbling infrastructure - highways, roads, ports, hospitals, and schools - is a positive step to grow our economy and improve our quality of life. But, we must diversify and expand our tax base to avoid saddling our children and grandchildren with insurmountable debt.

We must re-examine our tax structure to sustain this down payment in education funding. A one-time increase is not enough. We must be able to maintain our higher per-pupil funding investment.

We also remember that the Administration's one-year deadline to finalize proposed lunch break take-away regulations comes next week. After a jury awarded Wal-Mart employees $172 million in owed wages for denied lunch breaks, we hope the Governor will back away from this anti-worker proposal. Only then will we begin to know if today is a new day in California or if we are back to business as usual.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.