January 25, 2008

The Governor seeks budget reform, asks for the people’s help

By Bill Highlander
Editor

Governor Arnold Schwar-zenegger found his way to San Jose on Tuesday, Jan. 15 to speak about the current state deficit and the budget reforms necessary to preclude future financial problems.

Governor Arnold Schwarzenegger met with a crowd of business leaders, local public officials and media. Pat Dando, CEO of the Chamber (pictured above, right) introduced Schwarzenegger by expressing her confidence in his leadership to solve California’s issues. Photo by Kymberli Brady

In a meeting room of the San Jose/Silicon Valley Chamber of Commerce, the Governor met with a crowd of business leaders, mainly the Chamber’s board of directors, local public officials and media. Pat Dando, CEO of the Chamber introduced Schwarzen-egger by expressing her confidence in his leadership to solve California’s issues. Mayor Chuck Reed echoed that sentiment.

Governor Schwarzenegger, an articulate and passionate advocate for his budget reform, used charts to demonstrate the gap between spending and revenue. He pointed to a continuing rise in revenues, but spending that outpaces the income. “We have to learn to live within our means,” he said.

Noting that there are peaks and valleys in annual revenue streams, he warned that spending it all in good times leaves no room when there’s a shortfall. He emphasized that the budget problems are a mere bump in the road, if the budget structure is fixed.

The current deficit must be resolved this year. He made the point that the current deficit is $3.3 billion, not the $14.5 billion widely reported. He says that number happens only if the legislature fails to act by 2009.

Schwarzenegger appealed to the crowd to “contact legislators and tell them to spend only what we have, live within our means and don’t raise taxes.” He stressed that politicians must realize the importance of being a public servant, not a party servant, and to represent all the people.

The Governor doesn’t shy from challenge and he will have a battle on his hands as he tries to terminate the obstacles to budget reform. In response to a question about term limits, he says he was for them when he first ran for office. He now favors a refinement of term limits and supports Proposition 93.

His reasoning is that current terms do not allow legislators sufficient time to build experience and the power has transferred to special interest groups with undue influence over the process. That inexperience and special interests may stifle his efforts to gain across-the-board budget cuts.

The Governor stays firm against raising taxes. His math says that during his term, $34 million have been returned to the people from tax cuts, money that helped the California economy. He claims the cuts have not hurt revenues, the problem being excessive spending.

Schwarzenegger’s polished pre-sentation was complemented by a well-versed knowledge of issues during the Q&A session. He responded to the need for preventive measures in health reform, stability in the education of children, water supply and infrastructure needs. He noted “we’re a State that is falling behind in our infrastructure, a major problem for economic power." He continued, “We have to build for the future.”

He emphasized that continued investment in California was necessary and could be done without raising taxes.
While the Governor seeks bi-partisan support to curb spending and balance the budget, the people will get a chance to vote on his reforms. That will happen in an election during 2008.

In answering a question about the Presidential campaign, Sch-warzenegger said that with the early primary election, California now has the ability to help choose the Republican and Democratic nominees. “Now they have to come to us.”

Vice mayor and District 8 City Councilman Dave Cortese said, "I’m not sure I agree with everything, but it was great to hear the Governor’s perspective first-hand.”