In a private letter, Treasurer Bill Lockyer has blasted Gov. Arnold Schwarzenegger for two of his end-of-session vetoes, saying he was "more than usually displeased and downright angry."
The Democratic treasurer accuses the Republican governor of "negligent failure to apply good public policy judgment." Lockyer even goes so far as to suggest Schwarzenegger may have been unaware of his own vetoes.
"It is simply shocking and I do not believe it represents your own thinking on the matter," he wrote of one veto in the Oct. 7 letter obtained by Capitol Alert. Lockyer goes on to demand a meeting during the recess "to ask that you reconsider your position."
Schwarzenegger spokesman Aaron McLear responded that, "It is not uncommon for public officials to voice their opinions when the governor signs or vetoes bills."
McLear added that Schwarzenegger "reviewed every single bill before taking action."
The spat between the two statewide officials comes as California wades into the tumultuous credit market to borrow up to $7 billion in short term loans.
Schwarzenegger has already written to U.S. Treasury Secretary Henry Paulson saying the state may ask the federal government to step in and loan the state funds, if the credit market remains tight.
Lockyer, the state's chief banker, is responsible to negotiating such loans.
Tom Dresslar, a Lockyer spokesman, declined to comment on the letter, calling it a private matter. But he did say, "Lockyer and the governor have an excellent relationship, they have worked well and effectively together to help the state cope with the credit crunch, and they will continue to do so."
McLear agreed. "The governor maintains a strong working relationship with Treasurer Lockyer and is working with him every day on the state's financial situation," he said, adding the two had lunch late last week. The letter was sent last Tuesday.
The target of Lockyer's ire was vetoes of two, relatively obscure pieces of legislation, SB 1293 by Sen. Gloria Negrete-McLeod and SB 1221 by Sen. Sheila Kuehl. Both dealt with "joint powers authorities," governmental conglomerates that have the power to issue tax-exempt financing.
Schwarzenegger vetoed the Negrete-McLeod legislation, which received not a single 'no' vote in the Legislature, with his "boilerplate veto message," as Lockyer called it. Schwarzenegger blamed his veto of 136 bills on the budget delay, saying he only had time to consider the "highest priority" legislation.
Due to the late budget, the governor's usually month-long signing period was condensed to roughly 10 days.
"If SB 1293 was secretly opposed by any organization or individual after it arrived on your desk, I would be very interested in learning who opposed the measure and why," Lockyer said. "If instead SB 1293 truly was not considered by your staff to be a high-enough priority item for your approval, then I am not only disappointed but truly saddened by this negligent failure to apply good public policy judgment."
Unlike SB 1293, many legislative Republicans did oppose Kuehl's bill. But Kuehl said, "The no votes stemmed primarily from the do not regulate in any way crowd."
In his veto message, Schwarzenegger wrote, "With interest rates rising and the capital markets in turmoil, it does not make sense to place more burdens on non-profit health facilities seeking affordable financing."
Lockyer panned the veto as "odd and mistaken." He's hardly the only one frustrated by Schwarzenegger's record-setting vetoes this year. Capitol Weekly last week rounded up responses from some of the miffed lawmakers.
Either way, the fight will continue in 2009. Lockyer wrote he plans to sponsor both bills again next year.
Read the full letter.
Photo: Gov. Arnold Schwarzenegger talks with then Attorney General Bill Lockyer in happier times in 2005. Credit: Brian Baer, Sacramento Bee
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