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Tough talk raises the heat

jsanders@sacbee.com

Published Saturday, Aug. 23, 2008


Gov. Arnold Schwarzenegger, who years ago blasted legislators as "girlie men," is at it again – characterizing them as fearful and lacking backbone to do the right thing.

Schwarzenegger, speaking of the state's two-month budget standoff, told The Bee that lawmakers are so afraid of political fallout that they can't "step over their own shadow."

"Everyone is kind of frightened to make any move," he said.

Schwarzenegger's release this week of his "compromise" budget proposal, anchored by a temporary sales tax increase, lifted the curtain on tense closed-door talks with legislative leaders over a $15.2 billion deficit.

The governor said he is "trying to act as the grown-up in the budget negotiations."

By taking the fight directly to voters, however, strategists for both parties said Schwarzenegger could antagonize the very lawmakers he needs to strike a deal.

"The problem with using that kind of bullying language is that he's tried it in the past and it didn't work," said Democratic political consultant Roger Salazar.

Assembly Republican leader Mike Villines of Clovis questioned the governor's own gutsiness.

"I don't believe it shows strong backbone to have said (no tax increases) publicly for years and years and years – and then to change your position overnight," Villines said.

Schwarzenegger, after unveiling his proposal Wednesday, launched a full-court press to build a coalition of support.

He gave private interviews to Capitol reporters, is scheduling meetings with editorial boards of major newspapers statewide and is open to speaking to chambers of commerce and other such groups.

Communications Director Matt David said the governor will continue meeting with lawmakers of both parties to urge that they "get on board."

Schwarzenegger questioned the political courage of lawmakers who hide behind party lines.

"These are all people that admire our great men and women who go to Iraq and Afghanistan. Look at what they risk – they risk their lives. That's heroic. To be afraid of what the consequences are (in budget votes), I mean, that's quite the opposite."

Schwarzenegger said his proposal for a three-year, 1-cent sales tax hike, followed by a permanent 1.25-cent tax reduction, will work in combination with a stronger "rainy day" fund and an economic stimulus package to fix the state's broken budget system once and for all.

But the former actor with a reputation for salesmanship has not been able to sell his budget plan to anti-tax Republicans or to Democrats, who oppose strict spending restraints.

Schwarzenegger's proposal drew immediate criticism from education, labor and other major Capitol interests.

The governor's staff subsequently has compiled a list of nearly two dozen plaudits from editorial boards, business groups, civic groups and elected officials.

The California Hospital Association said the temporary tax and other key elements of Schwarzenegger's plan are "important components of a solution."

Allan Zaremberg, president of the California Chamber of Commerce, wrote an online column Friday for the FlashReport that urged consideration.

"Nobody likes tax increases, least of all the hard-working taxpayers and the business men and women who pay them," Zaremberg wrote.

"However, this budget – this year – is about more than tax increases," he added.

"The governor's framework may provide a unique opportunity … to achieve flexible work days, to guarantee a mandatory budget reserve, to limit the growth of government, and to permanently reduce the state's tax rate."

Schwarzenegger, who previously had vowed not to raise taxes, said he has concluded that a temporary hike is the most realistic option. Going public was a message to lawmakers, he said.

"It was just my way of saying, 'Look, I go and am willing to compromise and go beyond what I have said I will do – and why don't you do the same thing?' " Schwarzenegger said.

"I try to let Republicans know that it's OK to go and do a tax increase, that the state isn't going to come to an end," he said.

The Education Coalition, representing teacher and numerous school groups, does not support the governor's spending plan but does applaud his resistance to solving the deficit by borrowing transportation or local government funds. It sent a letter to lawmakers Friday urging them to reject borrowing.

Schwarzenegger, asked if lawmakers will bristle at his criticism, said that only time will tell. "Remember, the dynamics change here every day," he said.

Senate President Pro Tem Don Perata dismissed the governor's potshots.

"His point is, you never make real change unless some people take a risk, and he's right," said Perata, D-Oakland. "But I don't think that calling us out – he's frustrated, let's face it."

Sen. Jeff Denham, R-Atwater, said that voters are not likely to embrace a tax hike in tough economic times, no matter what appeal the governor makes.

Schwarzenegger said he does not plan to use hardball tactics employed by other governors to secure lawmakers' budget votes, such as dangling prospects of future job appointments or the threat of slashing projects in their districts.

Assemblyman Chuck DeVore, R-Irvine, said the governor has little sway with GOP legislators because some of his closest advisers are Democrats, he is ineligible to run for re-election, and he has now broken his vow not to support a tax hike.

"It's like the final repudiation of his Republicanism," DeVore said.


Call Jim Sanders, Bee Capitol Bureau, (916) 326-5538.