Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Arnold Speaks
The Weekly Standard Online | 8/21/03 | Bill Whalen

Posted on 08/21/2003 10:52:51 AM PDT by alwaysconservative

Arnold Speaks He's smooth and polished and comes fully equipped with wiggle room on taxes. by Bill Whalen 08/21/2003 12:00:00 AM

THE TERMINATOR broke his silence Wednesday, holding a press conference in Los Angeles to talk fiscal fitness and introduce his California Economic Recovery Council advisory team. As far as opening nights go, there were no signs of jitters or stage fright. The candidate was sharp, had command of his facts, and didn't back down from reporters' questions. The press will complain that he was short on specifics--but it's gonna stay that was until Election Day. Schwarzenegger is betting that voters want a winning style, not a wonkish approach.

Arnold's approach to pumping up California's economy: something old, something new; something borrowed, a lot that rings true.

The old: Schwarzenegger identified runaway state spending as the number one problem in Sacramento. As the father-of-four explained it, it's the same lecture he delivers to his 6-year-old son: You don't spend more than you make. That puts him in the same trim-the-pork camp as his two conservative rivals, state senator Tom McClintock and businessman Bill Simon.

The new: Arnold called for a 60-day review of state spending--in his words, "an outside auditing group"--to offer suggestions on how best to trim said excess. That's smart politics. It's proactive, results-oriented, and rings of Ronald Reagan's Grace Commission. (Note to calendar-watchers: If Arnold takes office in mid-to-late October, that group will have to kick it into high gear to impact next year's budget, which is drafted in early-to-mid December.)

The borrowed: Schwarzenegger announced that, once elected, he'd call a special session of the legislature to reform the state's out-of-control workers' compensation system. Former governor Pete Wilson, a Schwarzenegger co-chair, did the same in September 1992, making that issue Sacramento's battle royale the following year between the himself and the Democratic assembly speaker, Willie Brown.

And what rings true: Flanked by Warren Buffett and George Shultz, Arnold offered adult talk about California's economy, with a focus on job-creation and state credit ratings. As for the big question--would he raise taxes--Arnold was, well, adult about it. He said he didn't intend to soak anyone ("I'm principally against taxes"), but didn't rule out the unforeseen ("we can't ever say never"). That wiggle room will make some conservatives queasy, especially given California's history--both Reagan and Wilson raised taxes during their first year as governor.

Wednesday's press conference may not have been a window into Arnold Schwarzenegger's soul, but it did show what separates his campaign from the rest of the field. To the viewing public, Schwarzenegger is an outsider, not a politician--independently wealthy and not beholden to special interests. But on the inside, his ideals and goals are shaped and influenced by California's Republican establishment, many of whom fought the good fight, in the '90s, in Sacramento.

And for a first-time candidate seeking a road map to recovery, that's a good thing.

A decade ago, Pete Wilson faced the same challenge as Schwarzenegger does now--slow economy, massive deficit. Wilson came up with a two-track strategy: mend California's business, bring the tax code into the Information Age.

During his first year first in office, Wilson created a Council on California Competitiveness and charged it with removing barriers to job creation and increasing economic activity in California. The chairman of that council was Peter Ueberroth, the former baseball commissioner (who's also now a recall candidate).

The council's report, released in April 1992, provided Wilson with the ammunition he needed to sell the public on California's sorry economic state. In Los Angeles County, for example, 72 separate governmental agencies oversaw environmental policy. It also gave Wilson needed nonpolitical cover. In addition to Ueberroth, 17 other leaders from business and labor served on the council. With California once again bleeding jobs, Schwarzenegger would do well to follow this model.

As for taxation, Wilson turned to Shultz and the brain trust at the Hoover Institution--some of whom (Michael Boskin, John Cogan) have already joined Arnold's economic council. In his 1994 State of the State message, Wilson asked Shultz to investigate how California could leverage tax relief for further growth. In 1995, based on the recommendation of the Shultz-led Task Force on California Tax Reform and Reduction, Wilson proposed an across-the-board 15 percent tax cut for California individuals and businesses.

Perhaps Schwarzenegger will end up on the same dual track of business climate and tax relief. Perhaps he'll even borrow some of the ideas that Ueberroth unveiled the other day, such as a one-time tax amnesty, renegotiating state labor contracts, and cracking down on Medi-Cal fraud.

Just so Arnold doesn't leave a chair at the table for Cruz Bustamante, the leading Democrat on the second half of the recall ballot.

ON TUESDAY, Bustamante unveiled his "Tough Love for California" plan to fix the mess in Sacramento. If elected, Bustamante vowed to raise taxes by nearly $8 billion, in effect declaring war on upper income earners, smokers (an extra $1.50 per cigarette pack) and drinkers (25 cents per gallon of alcohol). He also wants $2 billion in spending cuts, but didn't specify where the ax would fall.

"It is tough love, but the people of the state of California understand what it is to make sacrifices," Bustamante said. Not all Californians will have the make sacrifices, though. Bustamante didn't ask Indian tribes to make a deeper donation from their gambling revenues. Oh by the way, those tribes are heavily underwriting Bustamante's campaign.

Bill Whalen is a research fellow at the Hoover Institution, where he follows California and national politics.


TOPICS: Politics/Elections; US: California
KEYWORDS: arnold; billwhalen; california; recall; republicans; schwarzenegger
I thought this was an interesting analysis, and searched to make sure it wasn't posted before.
1 posted on 08/21/2003 10:52:52 AM PDT by alwaysconservative
[ Post Reply | Private Reply | View Replies]

To: DoctorZIn
Ping for your recall threads.
2 posted on 08/21/2003 10:55:21 AM PDT by alwaysconservative (Better living through denial)
[ Post Reply | Private Reply | To 1 | View Replies]

To: alwaysconservative
You can see during the campaign what the candidate will be like if elected. Ahnold shows the team he will have if elected. Ahnold shows strength, power, and definition in budget matters. A natural showman. Good show.
3 posted on 08/21/2003 10:59:11 AM PDT by RightWhale (Repeal the Law of the Excluded Middle)
[ Post Reply | Private Reply | To 1 | View Replies]

To: alwaysconservative; RonDog; Rabid Republican
Well, for the realists among us, it looks like a choice between "new new taxes short of disaster" and "for sure new taxes".

I'd like to see some reassurance that Arnold can be tough on the unions; perhaps he could address that question.

I'd also like to see him say something like: "I support the kids, and our education dollars aren't getting to them ..."

If we could get rid of union janitors and put the savings into textbooks and teaching, I think we'd be a lot better off. Why pay $17/hour for janitorial services if you can do it for $6?

D
4 posted on 08/21/2003 11:04:46 AM PDT by daviddennis
[ Post Reply | Private Reply | To 1 | View Replies]

To: alwaysconservative
I watched Arnold's entire press conference last night on CSPAN with my wife, and we were both impressed. He's better at handling tough questions and giving thoughtful answers than many experienced politicians. One of his main themes was the importance of making California a business-friendly, job-rich state again.
5 posted on 08/21/2003 11:06:21 AM PDT by Califelephant
[ Post Reply | Private Reply | To 1 | View Replies]

To: daviddennis
I'd also like to see him say something like: "I support the kids, and our education dollars aren't getting to them ..."

I thought I heard him say something very much like that at the press conference. He was talking about how the entire budget is impossible for a group of experts and scholars to sort out, and it's leading to a lack of money "where it was supposed to go". Not education specific, but he meant it in a more general sense.

6 posted on 08/21/2003 11:09:49 AM PDT by Cyber Liberty (© 2003, Ravin' Lunatic since 4/98)
[ Post Reply | Private Reply | To 4 | View Replies]

To: alwaysconservative
Arnold speaks? So does my dog.
7 posted on 08/21/2003 11:10:50 AM PDT by Austin Willard Wright
[ Post Reply | Private Reply | To 1 | View Replies]

To: alwaysconservative
The FR poll should be run a third time. First it was after only media hype. Then after a smear campaign from both right & left. Now we have some of the policies & priorities Arnold himself (NOT Warren Buffett) plans to pursue. Hardly anyone has voted in either poll though, not enough to get an idea of real support for anyone.
8 posted on 08/21/2003 11:19:45 AM PDT by BonnieJ
[ Post Reply | Private Reply | To 1 | View Replies]

To: alwaysconservative
did he say anything about the "and the sound of the lamentation of their women"?
Conan the Libertarian
9 posted on 08/21/2003 11:26:32 AM PDT by joesnuffy (Moderate Islam Is For Dilettantes)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BonnieJ
Speaking of polls.... the following is from the Public Policy Institute of CA poll just released

Two of the questions on the Poll cited above... http://www.ppic.org/content/pubs/S_803MBS.pdf


6. On October 7 th , there will be a special election on whether to recall Governor Davis from office. On this ballot, voters will be asked two questions: first, whether Davis should be removed as governor, and second, who from a list of candidates should replace him if he is recalled. The list of about 150 possible replacement candidates includes: [rotate list, then say “among others”]
• Peter Camejo, Green Party
• Cruz Bustamante, Democrat
• Arianna Huffington, Independent
• Tom McClintock, Republican
• Arnold Schwarzenegger, Republican
• Peter Ueberroth, Republican
• Bill Simon, Republican

If the special election to recall Governor Davis were held today, would you vote "yes" to remove Davis as governor or "no" to keep Davis as governor?

58% yes, remove Davis as governor
36 no, keep Davis as governor
6 don’t know

7. Regardless of how you would vote on the first part of the recall, how would you vote on the second part of the recall ballot: If the election were held today, who would you vote for? [if necessary: read rotated list, then ask “or someone else?”]

23% Arnold Schwarzenegger, Republican
18 Cruz Bustamante, Democrat
5 Tom McClintock, Republican
4 Bill Simon, Republican
4 Peter Ueberroth, Republican
3 Peter Camejo, Green Party
3 Arianna Huffington, Independent
8 Someone else (specify)
32 don’t know
10 posted on 08/21/2003 11:31:48 AM PDT by deport
[ Post Reply | Private Reply | To 8 | View Replies]

To: alwaysconservative
If memory serves when Ronald Reagan served as guv he had the hard task of having to raise taxes at least once shortly after being elected didn't he. I thought I remember reading that in Noonan's book When Charter was King.
11 posted on 08/21/2003 11:43:29 AM PDT by GailA (Millington Rally for America after action http://www.freerepublic.com/focus/f-news/872519/posts)
[ Post Reply | Private Reply | To 2 | View Replies]

To: GailA
Yes, that tidbit was included in "When Character was King" by Peggy Noonan. I just love her writing and her affection for RR!
12 posted on 08/21/2003 11:45:57 AM PDT by alwaysconservative (Better living through denial)
[ Post Reply | Private Reply | To 11 | View Replies]

To: alwaysconservative
A decade ago, Pete Wilson faced the same challenge as Schwarzenegger does now--slow economy, massive deficit. Wilson came up with a two-track strategy: mend California's business, bring the tax code into the Information Age.

Wilson's "challenge" was largely of his own making:

In 1991, Wilson inherited a $3.7 billion deficit from his predecessor. With the economy in a downturn, he decided the best way to get off to a good start with Democrats, who controlled the state legislature, was to cooperate with them on a plethora of new spending. By the time his first budget was rolled out, the deficit had ballooned to $14.3 billion that year because legislators insisted on spending $10.5 billion more than the state was projected to take in.

In order to finance this excess, Wilson raised the sales tax 1.25 cents per dollar and kicked up the state's top income tax rate to a historic high of 11 percent...

Wilson eventually managed to pick off enough Republican votes to pass that budget which proved to be the disaster McClintock had predicted. Despite the new tax increases, general fund revenues dropped $1 billion that year and another billion the following year.

When the recovery kicked in, it was too late. So many California businesses had packed up and headed for the border, the state lagged far behind the rest of the nation.


Recent FR thread
13 posted on 08/21/2003 11:57:27 AM PDT by jam137
[ Post Reply | Private Reply | To 1 | View Replies]

To: alwaysconservative
PING!

Your One Stop Resource For All The California Recall News!

Want on our daily or major news ping lists? Freepmail DoctorZin.

14 posted on 08/21/2003 12:56:11 PM PDT by DoctorZIn
[ Post Reply | Private Reply | To 1 | View Replies]

To: deport
Isn't 32% for an "I don't know" response awfully high at this stage of the game? That sounds like a polite "I don't plan to vote anyway, but would never tell you that."
15 posted on 08/21/2003 2:26:38 PM PDT by alwaysconservative (Better living through denial)
[ Post Reply | Private Reply | To 10 | View Replies]

To: alwaysconservative
Sounds high but don't know as the race is just getting under way... It sort of matches the 36% that says keep Davis in the question above it.... #6.

It's early yet but time will move fast in this one.... What, only 47 days till the voting takes place... This one will be fast and furious....
16 posted on 08/21/2003 2:40:17 PM PDT by deport
[ Post Reply | Private Reply | To 15 | View Replies]

To: jam137
Course there was alittle more interesting specifics in the following paragraphs...probably didn't want to offend people on this thread with it, but I enjoy offending them so here it is;

The real live-action hero in this story is Tom McClintock – one of Schwarzenegger's Republican opponents, who at that time was a lowly state assemblyman.

McClintock refused to cover-up for Wilson. California is one of the few states that require a two-thirds majority to pass the budget. McClintock marshaled a band of deficit hawks together who held up the vote on the budget for weeks.

At one point, Wilson lost his cool. In a close encounter with McClintock, he backed his nemesis in the corner and called him "f---ing irrelevant."

Wilson eventually managed to pick off enough Republican votes to pass that budget which proved to be the disaster McClintock had predicted. Despite the new tax increases, general fund revenues dropped $1 billion that year and another billion the following year.

When the recovery kicked in, it was too late. So many California businesses had packed up and headed for the border, the state lagged far behind the rest of the nation.

By that time Wilson was so unpopular, he was booed at the next state party meeting and many wore "f---ing irrelevant" buttons.

and that is your "right wing" of the Ahrnold camp. Good luck RINOs!

17 posted on 08/21/2003 4:40:47 PM PDT by PeoplesRep_of_LA (Stop Dividing the Republican base; vote McClintock on October 7, 2003!)
[ Post Reply | Private Reply | To 13 | View Replies]

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson