Capitol Alert

Roger D. Barnes, a state civil engineer from Grover Beach:
"If the Governor had not rolled back the Vehicle License Fee (VLF),
California would not be facing a 14 billion dollar deficit. The governor
needs to be a man and own up to his own mistakes."

Tim Morgan, state government lawyer from Benicia:
"Tell the Guv, please: You’re not running a campaign anymore: reinstate the “car tax” as should have been required by this crisis! It’s the fairest move other than income tax changes, as it hits only those affluent enough to own cars, and hits luxury cars the hardest."

Brian Broumas of Roseville, who operates a small business networking site:
"Tax breaks for small businesses to help stimulate economy!"

Art Pulaski, executive secretary-treasurer, California Labor Federation:
"These are challenging times for California and our working families. Our low and middle-income families are more vulnerable than they have been in years, with state unemployment rates approaching six percent and a weak economy that indicates an encroaching recession. We need real solutions to help working people get better wages, affordable health care, secure retirements, and provide better lives for their families.

"In his four years in office, Governor Schwarzenegger has made many promises about how he would turn our state's economy around. But we know that cutting social programs to resolve our budget crisis is not a real solution. The governor is proposing to cut funding from our teachers, our public employees, and our health care providers-a sure way to further erode our middle class.

"We have to fix the structural problems in our budget, and establish stable income sources for the state's future. In 2008, we urge the governor and legislators to secure our middle class and improve our state's economic future."

Senator Dave Cox, R-Fair Oaks:
“With a $14 billion deficit facing the state, the Governor tonight laid out his ideas to restrain state spending.

“The Governor and his Administration should be applauded for calling on state government to tighten its belt on spending and reforming the budget process so that the state does not spend more than it takes in.
“He should also be commended for his bold effort to bring reform to healthcare. But now is not the time to experiment with new costly government programs that may or may not work.

“Now is the time to roll up our sleeves and tackle this budget crisis. In the past, my colleagues on the Democratic side of the aisle have led negotiations with little or no input from Republicans. My experience tells me that not engaging both Republicans and Democrats in this process will do an extreme disservice to those who elected us to make the tough decisions.

Marty Omoto, director, California Disability Community Action Network:
"The state of the State means more than how a budget is balanced. It also means how the State treats its people, especially people with disabilities, mental health needs and seniors, how it balances priorities and keeps its promises and commitments. The Governor and policymakers need to remember that."

The Consulting Engineers and Land Surveyors of California:
"With the governor’s proposal, CELSOC stands ready to partner with elected officials and state and local resources to help California rebuild and maintain its infrastructure systems quickly, efficiently, and cost effectively. We simply cannot go another 30 years without investing in our transit systems, bridges, schools, water treatment and sewage plants, courthouses, and levees. Failure to invest in California’s infrastructure today will jeopardize our quality of life, environment, and position in the national and global economies."

CALPIRG:
"Recommendation #1: Don't rush into privatization deals without first establishing public interest protections.
Recommendation #2: Stay committed to health care reform.
Recommendation #3: Support long-term reforms to the mortgage lending industry to prevent future crises.
Recommendation #4: Protecting funding for critical public programs and services, including public transportation.
Recommendation #5: Demand greater transparency and accountability in budget revenue and spending."

Assemblyman Guy Houston, R-San Ramon:
“The Legislature must respond to the Governor’s call to rein in spending. The State of California must take a hard look at its spending priorities and its funding obligations. Retiree pension and health care costs and our water storage and delivery infrastructure are only two of many unavoidable needs that must be addressed. The debate over how to resolve these issues will dominate this year’s agenda.”
“I agree with the Governor that our “boom or bust” budgeting has to stop. If we can put a process in place to help smooth out the peaks and the valleys of our spending, then we will be in much better shape during the difficult years.”

Assemblyman Jim Silva, R-Huntington Beach:
“I commend Governor Schwarzenegger for addressing the biggest issue facing our state this year by proposing deep budget cuts across the board to deal with California’s budget crisis.

“I am pleased that the governor recognizes that cutting spending—not raising taxes—is what is necessary to get our state’s finances back on track and keep our economy strong. New government programs that have been irresponsibly implemented in the last two years should be the first cuts that are made.

Sen. Joe Simitian, D-Palo Alto:
“The Governor’s continued commitment to work with the Legislature in a “post-partisan” fashion is both welcome and encouraging.”
“However, the notion that we can solve a $14 billion budget shortfall with across-the-board cuts –– in education, health care and public safety –– is simply unrealistic. The real solution is as challenging as it is simple: Spend less. Collect more. Do it now.
“My own efforts will continue to focus on protecting public education and our environment. These issues remain a priority for me, my constituents and Californians throughout the state.”

Assemblyman Ted Gaines, R-Roseville:
“I am satisfied to see that the governor recognizes that we face a serious problem and has declared a fiscal emergency in California. Our state’s $14 billion dollar budget crisis requires immediate and real spending reform.

In my own small family business, when times are lean, we cut spending to meet our bottom line. It’s about time that state government started following that lead.”

Assemblymember Noreen Evans, D-Santa Rosa:
“Californians value public education, safety nets for the poor and disabled, public safety, transportation, and environmental protection. For years we have compromised these programs by cutting their funding in a vain effort to balance the budget. This vicious cycle cannot continue. Difficult choices are ahead and all options must be on the table.

The Governor has put himself, and us, in a tight spot. He, along with most of his Republican colleagues in the Legislature, pledged not to support new taxes. He has solved past budget problems by borrowing, which has only contributed to our ongoing deficit. He also insisted on eliminating the vehicle license fee while maintaining the services it paid for. These two items account for more than half of our current deficit. The Governor and his Republican colleagues have run out of smoke and mirrors. California needs real leadership and real solutions, not rigid ideology.

Chris Thornberg, principal, Beacon Economics, Los Angeles:
"What's he going to do? You raise taxes, that has a negative effect on the economy. But if you cut services, that also has a negative effect on the economy."

State Treasurer Bill Lockyer:
“I hope the Governor is as good as his word in today’s remarks, and that when we see his actual proposals for coming to grips with California’s budget ‘demons,’ he’ll be asking Californians to deal not only with the autopilot spending devil, but also the autopilot revenue devil. We need to exorcise both those demons that currently possess our State Constitution and give the controls back to the people and their Legislature. We need the ability to deal intelligently with setting a course for the future we want, and deal fairly with the cost of paying for that future.”

Assembly Member Alberto Torrico, D-Newark:
“The Governor opened his remarks by mentioning the impact of the largest firestorm in state history on all sorts of people, including nursing home residents. Fortunately, as the governor said, people came together, and many lives were saved and homes preserved.

“The Governor is right – government can work, the budget system must be fixed and revenues need to be stabilized. I just think he’s going about it the wrong way.”

California Building Industry Association (CBIA) President & CEO Robert Rivinius:
"The first thing policy-makers must do is make housing a priority and emphasize the importance of homeownership to the state.

Third we to take immediate steps to help the industry begin to climb out of its slump, such as extending expiring subdivision maps, allowing payment of impact fees at certificate of occupancy; and asking Congress to increase limits on federally guaranteed loans to better reflect California high-cost housing markets."