SACRAMENTO PR02:007
FOR IMMEDIATE RELEASE
01/08/2002
SACRAMENTO
In his fourth State of the State address, Governor Gray Davis tonight delivered his proposals to tackle the State's budget challenges, step up security and lead California out of the national recession by investing in education, economic growth, health care, and public safety.
"Like nearly every state, we're facing fiscal challenges. But we also have a very bright future," said Gov. Davis. "Thanks to our smart investments in California's future, balanced by a commitment to fiscal restraint, we are poised to emerge from this downturn stronger than ever."
"In the coming year, we must have the courage to make tough decisions in tough times," said Gov. Davis. "We must put progress over partisanship."
"Restoring abundance in a time of economic shortfall; maintaining safety in a time of global conflict; sustaining hope and tranquility in a time of fear and uncertainty. The true measure of leadership is how we master these moments."
Vowing that "education will be protected above everything else in my Budget," Gov. Davis noted that California is entering the new year with "better schools, healthier families, increased worker protections, and safer communities."
Building on that progress, Gov. Davis also unveiled initiatives to bolster State security, create a new Cabinet-level Labor and Workforce Development Agency, recruit new nurses, protect financial privacy, and expand children's health and education programs.
In his 32-minute speech, Governor Davis detailed his Administration's accomplishments over the past three years:
"But new challenges are facing the State, particularly efforts to combat terrorism," said Gov. Davis. "No state has done more than California to protect its citizens and vital assets since the terrorist attacks," the Governor said.
He cited his actions to increased preparedness in California by:
"But there is more we can and must do," said Gov. Davis. He said his Administration is working with the Federal Government to create a tiered system of public warnings when terrorist threats occur; tightening controls over the transportation of toxic and hazardous materials; proposing legislation to monitor communications by suspected terrorists by allowing for "roving" wiretaps on suspects; and asking the federal government to allow CHP officers to provide additional "sky marshal" protection on in-state flights they are already taking in the course of their duties.
In addition to honoring the California members of the nation's Armed Forces, the Governor introduced the California families of several victims of the terrorist acts of September 11th. They included Inez Paskins of Anaheim, wife of Jerry Paskins who died at the World Trade Center; Tom and Melanie Frost of Rancho Santa Margarita, parents of Lisa Fost, who perished on United Airlines Flight 175; and Kim, Sonali, and Chris Beaven of Oakland, the family of Alan Beaven, who died on United Flight 93.
Also recognized by the Governor were Sacramento Fire Department Chief Rick Martinez, who coordinated California's search and rescue team efforts at Ground Zero; George Vinson, Special Advisor on Security to the Governor; Alice Hogland, mother of Mark Bingham, who died on United Airlines Flight 93; and Ingrid and Al Solaugh, parents of SSG Brian Cody Prosser, who was killed in action during Operation Enduring Freedom.
In honoring the State's National Guard, Gov. Davis said, "The citizen soldiers of the National Guard should not have to pay for the privilege of protecting us against terrorism. Many of the reserves called to duty left better-paying jobs behind. Given these extraordinary times, the State should pay the difference between military and civilian pay for State Employees who've been called to duty."
Gov. Davis also addressed California's energy challenge.
"California has the most technologically advanced economy in the world - and it lives or dies on a stable supply of electricity," said Gov. Davis. "Our high tech industries cannot survive the lights flickering, much less going out."
"Make no mistake: my overriding imperative last year was to ensure California had reliable electricity. By doing so, we protected public health and safety, prevented a meltdown of our economy, kept business from leaving the State - and even created new jobs through expansions that were put on hold earlier in the year."
Gov. Davis noted, however, that the State must continue to be vigilant. "We must continue to conserve. We must continue to build more plants, cleaner plants, more efficient plants to replace our aging facilities."
"That same resolve needs to be demonstrated by Californians in confronting the State's economic downturn and its consequences," said Gov. Davis.
"The budget I will submit to you in two days will be fair, will preserve the major gains of the last three years, will protect local government - and will not increase taxes," said Gov. Davis. "I will call on you to close the budget gap with a combination of cutbacks, deferred spending, internal borrowing, and accelerated revenue."
To meet the State's anticipated $12 billion shortfall, Gov. Davis said, "we will have to be smarter and more focused. And we will - with confidence in our eventual resurgence and still bright future."
"From Day One, we have exercised fiscal restraint and responsibility. In good times, we made smart investments in California's future. Even with our budgets flush - and well before the sharp decline of the technology sector and the attacks of September 11 - we were always careful with the taxpayers' dollar."
Gov. Davis noted that surpluses were channeled to one-time investments (such as transportation) instead of ongoing spending. With Democratic and Republican votes, two back-to-back, on-time budgets were passed in 1999 and 2000 - the first in 16 years. A $2.6 billion reserve in current budget year funding (the largest in 23 years) also was set aside.
Gov. Davis also exercised his veto authority to cut $7.4 billion in otherwise worthy proposals over three years. In addition, he suspended allocation of $2 billion in the current budget year, cut operating expenses by $150 million and ordered an immediate hiring freeze.
In discussing the economic challenges ahead, Gov. Davis outlined an economic stimulus package, which he will detail in a press conference at the University of California, Davis on Wednesday.
"Given our softening economy, we must do everything we can to help those who've lost their jobs. We must also stimulate the economy and create new jobs," he said.
The Governor's Economic Stimulus Package will include:
"My commitment to public education remains resolute," said Gov. Davis, noting a 34 percent increase in education spending during the past three years and exceeding the Prop 98 guarantee. "I will fight to protect those investments vital to the classroom itself, where teachers teach and students learn."
Gov. Davis also said he would expand the State's commitment to children by expanding:
"I am opposed to balancing the State's budget on the backs of local government," said Gov. Davis. "I will continue the State's commitment to repay vehicle license fees."
In his address, Gov. Davis also said he would unveil initiatives to recruit and train thousands of new nurses, who he called "the backbone of our medical delivery system."
He also said he would send the legislature a proposal to reorganize the State's job training and workforce development system to create a new Cabinet-level Labor and Workforce Development Agency.
"In streamlining these programs, we will achieve greater accountability and efficiency."
The Governor also pledged to protect the State's senior citizens. By proposing continuation of the Medicare Drug Discount Program, which provides seniors the same prescription drug discounts the State enjoys (20 to 30 percent).
Lastly, the Governor pledged to build upon his efforts to protect individual privacy, saying, "we have not done enough." In addition to establishing the first statewide Office of Privacy Protection, banning phantom calling, enhancing opt-out rights for credit card consumers, and requiring business to tighten controls on dissemination of personal information, Gov. Davis proposed legislation that "in clear and simple language, gives consumers more power to control whether, when, and where sensitive, personal information may be used or sold by financial institutions. When we're done," he said, "We'll have the most comprehensive, consumer-friendly privacy laws in the nation."
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