Posted: March 21, 2005
by WILLIAM E. SARACINO



Let Schwarzenegger be Schwarzenegger

Look again governor

‘California live within our means’ is a toothless tiger threatening both your reforms and your political soul.

William E. Saracino is a member of California Political Review’s editorial board.


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Transformative political leaders have ideas that, by definition, are controversial. Without “radical” ideas, leaders are place-holders, not transformers — in fact, not real leaders at all.

Such leaders encounter resistance in defenders of the status quo and in the leader’s own supporters who fear controversy. Both forms of resistance often plagued Ronald Reagan’s presidency. As long as he was served by fellow conservatives not afraid to confront controversy when necessary to shift the direction of government (such as Ed Meese and Lyn Nofziger), Reagan’s “banner of bold colors” was proudly hoisted. But when these men were replaced by timid technocrats flying a flag of pale pastels (like James Baker), a battle commenced within the administration to water down the Reagan Revolution in both message and proposals.

It appears Gov. Arnold Schwarzenegger now faces similarly unhelpful “support” from advisors and close friends evidently determined to dilute to the point of dissolving the bold reform initiatives that Schwarzenegger has repeatedly, publicly embraced from the beginning of his political life before the recall, specifically those dealing with spending control. Last week he chose to support the “California Live Within Our Means” initiative sponsored by the Business Roundtable and others, instead of a competing initiative sponsored by state Sen. John Campbell and the Howard Jarvis Taxpayers Association.

This “live within our means” measure is a toothless tiger incapable of controlling state spending. It would have allowed most if not all the spending of Davis’s fiscal irresponsibility orgy. In contrast, the Campbell/Jarvis measure would have halted the spending bacchanalia, and California today would enjoy a multi-billion dollar budget surplus.

Word from Sacramento is that the governor may not even know how futile the “live within our means” proposals is — that he may have been sandbagged by liberal staff and outside advisors who gave him a less than full picture on the competing measures. It would not be unprecedented. Another Schwarzenegger priority — merit pay for teachers — evidently was almost eliminated without the governor’s knowledge. A “final” draft of education proposals — without merit pay — appeared for the governor’s approval. He reportedly said something like “this has merit pay, of course.” Informed it did not, he reportedly reminded his friends he wanted merit pay, and insisted it be included in the package.

This is poor service from staff and friends. Powerful administration players, including finance chief Tom Campbell and left-wing EPA cabinet Secretary Terry Tamminen, have evidently waged a quiet war against real spending controls and efforts to eliminate the judge-created “Sinclair Paint” loop-hole in Prop. 13’s two-thirds-vote requirement for tax hikes. A major player outside the administration, Business Roundtable President Bill Hauck, seems to support this campaign and in fact is a main sponsor of the mis-named “live within our means” initiative.

The governor’s choice of the Roundtable’s phony spending measure over the Campbell/ Jarvis proposal is incomprehensible. It won’t spare him the unmitigated Hell he will catch from the tax-eaters and their clients in any event. He’ll still be smeared by the usual suspects in the media even if he only seems to be supporting spending reduction. Why not back the initiative that will actually bring spending under control?

Nobody near the governor (who actually has his interests at heart) seems to have considered that this move threatens not just the Schwarzenegger reform agenda and legacy but more fundamentally his defining political image: bold (“I want to blow up the boxes”) and guided by Milton Friedman/Ronald Reagan ideas of limited, responsible government and trust in the people. This is the second time since the launch of the recall that Schwarzenegger has led Californians fed up with liberal fiscal insanity to the point of achieving a promised spending cap only to be let down. Conservatives in the Legislature and around the state are justifiably appalled. Prominent conservatives supported Schwarzenegger in the recall at great risk based largely on the promise of fiscal restraint and toughness. They now fear that if the governor can’t tough it out on this essential campaign plank, he won’t be willing to take real heat on any issue.

But the governor can still rectify all this. The Roundtable’s measure is a hastily-drafted, last minute proposal that won’t be ready for signature gathering for another two to three weeks, leaving only 20 days or so for signature gathering. The Campbell measure has been vetted by attorneys for more than nine months, and in fact includes several elements specifically requested by the governor’s office. It’s ready to go.

Schwarzenegger came to Sacramento to be a transformative figure, not a place holder. Those who want him to succeed — and I’ve counted myself as one of those since before the recall — should raise their voices to encourage the governor to rely on his innate common sense and good judgment and to support the Campbell/Jarvis spending control.


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