Gov. Arnold Schwarzenegger considers himself a glass-half-full guy, and he ended his California Small Business Day speech in Sacramento with a dose of optimism. But it seemed clear the governor has just about had it with California's governance system, especially after last week's special election was a colossal failure. Though he blamed many of the state's budget problems on the current economic collapse, he said part of our woes are "self-inflicted."
"California hasn't had a responsible fiscal system since Earl Warren in the late '40s and early '50s," he said.
The governor ticked off a number of complaints about the system this morning:
-- The state relies too much on personal-income and capital gains taxes.
-- The state doesn't have a spending cap, nor a "rainy-day fund" (the latter point is questionable given that Schwarzenegger asked voters to establish a "rainy-day" reserve in 2004, albeit one with weak restrictions).
-- Federal judges tell California how to run its prison health-care system.
-- Federal stimulus rules restrict how California can cut from its budget.
-- California requires a two-thirds vote to approve the budget.
-- An "endless list" of ballot-box budgeting requirements, including Propositions 13, 42, 49 and 1A, all of which he has championed in the past.
"Until we fix our system, nothing will ever change," Schwarzenegger said. "This is no way, of course, to run a state."
The last two points were most interesting. While Schwarzenegger did not explicitly say he opposes all of these facets of California governance, the mere mention of Proposition 13 and the two-thirds vote requirement in a list of items he says impinge upon his ability to govern is significant.
It was also notable that he named his own after-school measure, Proposition 49, among those that tie his hands and make it difficult to balance the budget. Schwarzenegger led the campaign for that initiative in 2002, and many believe it played a significant role in helping his gubernatorial aspirations a year later.
Schwarzenegger said voters sent "a very clear message" last week that California should live within its means, slash government and not raise taxes, though plenty of groups on the left would disagree. To that end, the governor's Department of Finance is expected to release more specifics today on additional cuts it would use to bridge the state's $24.3 billion deficit.
Addendum: Schwarzenegger press secretary Aaron McLear says the governor believes California should have a "robust debate" about its budgetary system, but Schwarzenegger does not support revoking the two-thirds vote requirement or Proposition 13.
Photo: AP/Rich Pedroncelli
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