BUSINESS SECTION

Time to Focus on Reform Issues on Ballot

Commentary from California Chamber of Commerce

August 26, 2005

 

Californians Have Chance to Fix State’s Broken Budget, Political Systems

With little more than 10 weeks remaining before the November 8 special election, it is time to move beyond all the rhetoric and begin discussing the issues that will be going to a vote of the people.

Two priorities for the California Chamber of Commerce are giving Californians an opportunity to repair California’s broken budget and political systems, both elements of the Governor’s reform package.

Opponents of Governor Arnold Schwarzenegger are spending a great deal of time and money trying to impugn him rather than discussing the merits of his reform proposals because they can’t defend the status quo. In any credible debate, nobody could assert that California’s budget system is fine just the way it is, or that a November general election without competitive seats is real democracy.

Repair Budget System

The state’s budget system is so badly broken that it has produced budget deficits for five years in a row now. Unless we change the system, the current budget structure will continue to produce chronic deficits.

Proposition 76, the Live Within Our Means Act, is designed to cut to the heart of the problem and stabilize the state’s fiscal future. It will ensure the state never has an unmanageable budget deficit.

The measure prevents the state from spending one-time money for ongoing programs — the shortsighted error that has led to budget deficits in this decade.

Proposition 76 gives legislators and the Governor the tools they need to deal with sudden drops in revenue, such as occurred in the early 1990s. The initiative limits budget increases to the average revenue growth over three fiscal years.

The Live Within Our Means Act will bring stability to California’s finances. It requires an adequate budget reserve that will protect funding for necessary programs — including education, public safety, health and welfare, and transportation — when the inevitable economic downturns occur. It eliminates automatic reductions in education funding when state revenues decline. Finally, Proposition 76 guarantees that legislators can’t steal for unrelated programs the transportation taxes Californians pay at the pump.

Repair Political System

Just repairing the budget system, however, isn’t enough to get California government back on track. We also need to reform our political system.

In that broken system, legislators get to draw their own district lines and choose their constituents. As a result, in the November 2004 elections, not one of 153 seats in the California congressional delegation, state Senate or state Assembly changed parties.

California needs to give people throughout the state a chance to choose their elected representatives. The way to ensure they will have a choice on the general election ballot is to create more competitive political districts.

Proposition 77, the Voter Empowerment Act, will assign the task of drawing fair, competitive districts to a bipartisan, independent three-person panel of retired judges. That reform removes the inherent conflict of interest when politicians design their own districts. Reform also marks a first step toward restoring competition to the political process. Competition, in turn, will be a start toward making legislators accountable to the voters, their constituents.

Timely Action

The mound of evidence that our budget and political systems need reform will only grow larger unless we act now. The time is right for Californians to approve Proposition 76, the Live Within Our Means Act, and Proposition 77, the Voter Empowerment Act, this November.

Allan Zaremberg is president and chief executive officer of the California Chamber of Commerce. This is the first in a series of commentaries on special election measures.

Background information:

California Chamber of Commerce Statement on the Special Election Called By Governor Schwarzenegger

June 13, 2005

Contact: Sara Lee

SACRAMENTO – California Chamber of Commerce President Allan Zaremberg, and proponent and co-author of the California “Live Within Our Means” Act, today released the following statement regarding the special election called this evening by Governor Schwarzenegger:

“We applaud Governor Schwarzenegger for his leadership in calling a special election for this November for voters to consider key initiatives that are important for the future of California’s economy – including the Live Within Our Means Act, and the measures focusing on teacher tenure and redistricting.

“A special election is a key component to keeping California on the road to fiscal recovery.  We cannot wait until the next election to enact the reforms needed to keep jobs in California because the longer we wait, the more tenuous our economic situation can become.  We need these reforms, and we need them now.

“Employers rely on a stable tax structure and the ability to plan and look at trends in areas where they locate or expand their businesses.  We need to get California’s budget crisis under control.  We are confident that when educated on the essential nature of the measure, Californians will support the Live Within Our Means Act this November.

“To know that California must have a balanced budget is important to investors – making the passage of the Live Within Our Means Act in just five months an immediate, predictable reform that will quickly help California’s economy by giving employers the stability they need to bring jobs to our state.

“The next five months will be a busy campaign season, and we will work hard to educate voters on the true merits of these measures.”

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The California Chamber is the largest broad-based business advocate to government in California.  Membership represents one-quarter of the private sectors jobs in California and includes firms of all sizes and companies from every industry within the state.  Leveraging our front-line knowledge of laws and regulations, we provide products and services to help businesses comply with both federal and state law.  The California Chamber, a not-for-profit organization, promotes international trade and investment in order to stimulate California's economy and create jobs.  Please visit our website at http://www.calchamber.com/.                                                    

Article courtesy of:

Bernardo Mendez

Consul for Trade and Business Promotion

Consulate General of Mexico

532 Folsom Street, San Francisco 94105

Tel 415-354-1731

www.sre.gob.mx/sanfrancisco

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