February 24, 2006

Governor preaches to the choir while outlining
‘Strategic Growth Plan’

Main concerns: packed roadways, vulnerable levies,
inefficient ports and building new schools

By Lorraine Gabbert
Staff Writer

Governor Arnold Schwarzenegger enthusiastically outlined his $222 billion “Strategic Growth Plan” for California’s economy to Silicon Valley business leaders Feb. 9 at San Jose’s Tech Museum of Innovation.

Governor Arnold Schwarzenegger emphasized his “Strategic Growth Plan” for revitalizing California’s economy to business leaders at the Tech Museum of Innovation.

The governor painted broad brushstrokes of his vision for the state’s economic growth and renewal, including strengthening California’s infrastructure and constructing new schools. Chief among his concerns are California’s packed roadways, vulnerable levies and inefficient ports. With an eye to the environment, he is also focusing on providing clean waterways and air, especially in the Central Valley. “Our highways are jammed. Our schools are bursting at the seams. Our levies are vulnerable. Our ports are backed up,” Schwarzen-egger said. “I propose … a $220 billion blueprint to build the roads, bridges, schools, courts, jails, ports and levies, everything that you need to maintain the quality of our lives.”

Schwarzenegger’s plan was warmly received and strongly supported by members of the San Jose Silicon Valley Chamber of Commerce and Silicon Valley Leadership Group, whose CEOs also emceed the event. U.S. Small Business Administrator Hector Barreto traveled from Washington, D.C. to attend the event and support the governor’s agenda. Barreto sees small business as the engine that fuels the nation’s economy and called Silicon Valley “the birthplace of innovative technology and new jobs.”

However, as the governor’s plan relies upon $68 billion in bonds raised over five election cycles, it is not without its critics. “Some have called the plan too big and irresponsible,” noted Schwarzenegger, “They are dead wrong. In a state with the size and ambition of California, I say it is irresponsible not to have a vision this bold for our future.”

Past chamber Chair Bill Baron agrees that the state’s investment in its infrastructure is a priority. “It’s time for California’s leaders and citizens to get serious about the competition our state faces,” said Baron. “That is why the San Jose Silicon Valley Chamber of Commerce joins happily with the Silicon Valley Leadership Group in supporting Governor Schwarzenegger’s ‘Strategic Growth Plan.’ The time has come to invest in our future.”

Carl Guardino, president and CEO of Silicon Valley Leadership Group, believes that Schwarzenegger’s proposal will not only rebuild California’s infrastructure, but also voters’ faith in state government. He is encouraged by Schwarzenegger’s plan to bring BART to Santa Clara by protecting Proposition 42, a sales tax on gasoline intended for transportation funding.

The governor has dedicated $107 billion to transportation for road improvements and increased mass transit to alleviate traffic congestion. He also considers it critical to invest in rebuilding California’s damaged levies. “Our levy system is worse than that in New Orleans,” he said. “We are one big earthquake or storm away from a major disaster.”

San Jose Silicon Valley Chamber of Commerce President and CEO Pat Dando credits Schwarzenegger as being the first governor in decades to protect city and county treasuries from being raided by Sacramento. Dando points out that because of Proposition 1A, San Jose will keep $11.1 million more this year, than they would have, as well as $218 million in redevelopment funds. “I don’t think any of us could dare doubt that Proposition 1A was an excellent move for the governor,” she said, “and for our local community.”

However, Schwarzenegger did not address his detractor’s concerns that he did not honor the agreement he made with the Education Coalition to protect Proposition 98’s guarantee to schools to increase per pupil spending, nor did he return the $2.3 billion he borrowed in 2004 to alleviate the state’s fiscal emergency. Although under his “Strategic Growth Plan,” about $38 billion has been earmarked for education to build small schools, new classrooms and modernize universities, it does not provide a budget to restore K-12 school staff (like nurses, librarians, custodians and groundskeepers), classroom materials and key programs like art, music and band, which were sacrificed due to lack of state funding.

San Jose Silicon Valley Chamber of Commerce CEO Pat Dando and Silicon Valley Leadership Group CEO Carl Guardino strongly support the governor’s plan.

“We have overcrowded classrooms,” said Schwarzenegger. “This is why I think that infrastructure is so important for education.” Ironically, during the last few years, school districts, such as San Jose Unified’s, were forced to close schools due to the previous and current governor’s education budget cuts.

“I promised as governor to be fiscally responsible,” he told business leaders at the Tech Museum of Innovation. “When it comes to bonds … when we’re fiscally responsible, we get a better credit rating and save hundreds of billions of dollars a year, and the more we can save, the more we can pay down our debt which is the most responsible thing we can do.”

Schwarzenegger noted that California voters authorized more than $42 billion in bonds during the past five years. “It’s gone for parks, schools, stem cell research, coast protection, libraries, all over the place,” he said. “With all that money … not one single dollar was spent on building roads or levies or clean water storage … all of the things that are absolutely crucial to the future of California.”

The governor sees his “Strategic Growth Plan” as steps toward economic success. “It’s good for the people and it’s good for business,” he said, “and jobs in construction all over the state of California. I want to see cranes everywhere."

Quoting from Chicago city planner Danial H. Burham, Schwarzenegger said, “Make no little plans; they have no magic to stir one’s blood. Make big plans; aim high in hope and work.” The governor believes that Californians have always aimed high. “The state has a spirited history of big plans and great ambition,” he said. “We need to build for the future. If we take on this challenge …Californians today and future generations will reap tremendous benefits. They will thank us as we thank those visionaries that built so much before us.”