Today and over the weekend, high-level nogotiations are taking place among the legislative leadership and the Governor – the focal point of these discussions – infrastructure investment.
In January, the Governor unveiled plans for a massive $222 billion ‘strategic growth plan’ for California, and a central component of his plan – a $68 billion general obligation bond.
The response to the Governor’s plan was mixed — Democrats, who love to spend money were tepid or even critical in their response, unsure how to react to a massive spending plan proposed by their political adversary – the Republican Governor. Republican reaction to the plan was also mixed – unsure of how to respond to such a large spending proposal from the top guy in their own party.
I know from my personal meeting with three members of the Governor’s senior staff the day of the State-of-the-State "Build it" address — that the Governor was keenly aware that this kind of large-scale spending proposal would be uncomfortable for conservative lawmakers, and other Republicans supporters of the Governor to swallow.
I was told that the Governor had drawn a line in the sand in terms of responsible borrowing — and the central points to this line (i.e…no give on these points): first and foremost a 6% cap on spending, secondly needed spending reforms (CEQA, engineering reforms, etc.) and finally that this borrowing would be for mortor-and-brick real infrastructure (not for social engineering programs).
Even with these assurances, Republicans in the State Assembly came together behind a pay-as-you-go proposal that makes VERY GOOD PUBLIC POLICY. The basic thesis is this: Californians already pay more than enough money in taxes to finance a well-run state government AND a healthy investment in infrastructure. The problem is not one of tax or debt burdon (we are taxed enough, and in debt enough) but one of spending priorities. Republicans have said that a proposal to borrow money to make up for past non-prioritization of infrastructure must be matched with a go-forward commitment of annual general-fund dollars towards infrastructure. This, along with the other "lines in the sand" make for sound infrastructure plan.
Obviously, like most of the thousands of you who read the FlashReport each day, I am not privy to the behind-closed-door discussions taking place in the Capitol. But I can only offer advice and encouragement to the Governor to remember the line in the sand that he himself drew when assauging the concerns of fiscal conservatives. For members of the legislature, I will say this — the vote on this plan is going to be a defining moment in your careeers…
LOOK CAREFULLY at what comes out of the negotiations. Were the Republican Governor and Republican legislative leaders able to hold the ‘line in the sand’ against the big-government, spend-a-holic Democratic leaders?
Does the plan:
1) HAVE A SIGNIFICANT PAY-AS-YOU-GO COMPONENT FOR FY ’07-’08 AND BEYOND?
2) HAVE A 6% BORROWING CAP?
3) CONTAIN CEQA AND OTHER NEEDED REFORMS?
4) LIMIT THE BORROWING TO MORTOR-AND BRICK REAL INFRASTRUCTURE?
Remember that it is not only okay to vote NO if the best compromise plan doesn’t pass muster. As a matter of fact, you SHOULD vote no if the plan doesn’t have these important components. The Democrats want to spend, and will eventually come around, even if it means delaying until a November vote. The GOP also has the option of going to the ballot for November with an initiative that contains every point mentioned above.
Integrity is sometimes defined as doing the right thing when no one is watching. Courage is defined by doing the right thing when everyone IS watching.
Good luck to you all.
Jon
PS: If you are a legislative staffer in the Capitol, this will format well if you print it — why don’t you give it to your boss, with a "Must Read" note on it! :-)