January 17, 2008

Governor seeks budget reform, asks for the people’s help

By Bill Highlander
Staff Writer

Gov. Arnold Schwarzenegger found his way to San Jose on Tuesday to talk with a group of city leaders about the current state deficit and the budget reforms necessary to preclude future financial problems.

In a meeting room at the San Jose/Silicon Valley Chamber of Commerce, Schwarzenegger met with a crowd of business leaders, mainly the Chamber’s board of directors, local public officials and media. Pat Dando, Chamber president and CEO, introduced Schwarzenegger by expressing her confidence in his leadership to solve California’s issues. Mayor Chuck Reed echoed that sentiment.

In a room at the San Jose/Silicon Valley Chamber of Commerce, Governor Arnold Schwarzenegger met with a crowd of business leaders, mainly the Chamber’s board of directors, local public officials and media. To Schwarzeneggar’s right is Chamber president and CEO Pat Dando. Photo by Kymberli Brady

Schwarzenegger, an articulate and passionate advocate for his budget reform, used charts to demonstrate the gap between spending and revenue. He pointed to a continuing rise in revenues, showing spending outpacing income. “We have to learn to live within our means,” he said.

Noting that there are peaks and valleys in annual revenue streams, he warned that spending it all in good times leaves nothing for a shortfall. He emphasized that the budget problems are a mere bump in the road, if the budget structure is fixed.

The current deficit must be resolved this year, he said, making the point that the current deficit is $3.3 billion, not the $14.5 billion widely reported. He says that number happens only if the legislature fails to act by 2009.

Schwarzenegger appealed to the crowd to “contact legislators and tell them to spend only what we have, live within our means and don’t raise taxes.” He stressed that politicians must realize the importance of being a public servant, not a party servant, and to represent all the people.

In response to a question about term limits, he says he was for them when he first ran for office. He now favors a refinement of term limits and supports Proposition 93.

Current terms, he said, don’t allow legislators sufficient time to build experience, adding that the power has transferred to special interest groups with undue influence over the process.

Schwarzenegger is firmly against raising taxes. His math says that during his term, $34 million has been returned to the people from tax cuts, money that helped California’s economy. He claims the cuts didn’t hurt revenues, because the problem is excessive spending.

Schwarzenegger’s polished presentation was complemented by a well-versed knowledge of issues during the question-and-answer session. He responded to the need for preventive measures in health reform and stability in children’s education, the state’s water supply and its infrastructure needs. “We’re a state that is falling behind in our infrastructure, a major problem for economic power. We have to build for the future,” he said.

He emphasized that continued investment in California was necessary and could be done without raising taxes.
While the governor seeks bipartisan support to curb spending and balance the budget, the people will get a chance to vote on his reforms in an election during 2008.

In answering a question about the presidential campaign, Schwarzenegger said that with the early primary election, California now has the ability to help choose the Republican and Democratic nominees. “Now they have to come to us.”

Afterwards, District 10 Councilmember Nancy Pyle commented that she was impressed with Schwarzenegger’s ability to connect with the audience. “He’s a caring, charismatic person who truly wants to make a difference and he does. We need to do what we can as a city to support him,” she said.

It was her first actual meeting with the governor. Although she has attended functions where he spoke, this was the first time the two politicians met face to face.