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Schwarzenegger outlines ambitious agenda; state of the state packed with ideas, hefty price tag
By: EDWARD SIFUENTES - Staff Writer | ∞
California Gov. Arnold Schwarzenegger smiles at the audience after arriving at the podium to deliver his State of the State address at the Capitol in Sacramento, Calif., on Tuesday. At the left is Assembly Speaker Fabian Nunez, D-Los Angeles.
STEVE YEATER Associated Press
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NORTH COUNTY -- In Tuesday's State of the State address, Gov. Arnold Schwarzenegger laid out an ambitious agenda for the legislative year, including proposals to build more prisons, classrooms and water projects.
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Before the speech, administration officials unveiled the governor's proposal to borrow $43.3 billion in bonds to build prisons, schools and dams. It was similar to a $42.7 billion plan that voters approved in November, but the governor said the "job is not done yet."
"As I said last year, California's population is expected to increase by as much as 30 percent over the next 20 years," the governor said in his speech. "That is the equivalent of adding three new cities the size of Los Angeles. We have to prepare for that growth."
The governor is calling for $29.4 billion in general obligation bonds, which require voter approval, and $13.9 billion in lease revenue and other bonds, which the administration says would not need to be approved by voters.
Mike Genest, Schwarzenegger's finance director, said the state can afford the new borrowing because it is paying off early the bonds voters authorized in 2004 to reduce the budget deficit that ballooned after the dot-com crash.
Some financial analysts said the proposed borrowing plan was so large that it could take days to fully analyze its effect on California's budget. Some economists immediately criticized the concept as shortsighted.
"The tendency for the state to borrow is extremely unwise," said Edward Leamer, director of UCLA's Anderson Forecast. "It's pushing spending on to the next generation, and that's not fair and it's not wise. ... Borrowing is not some magical way to pay for what the state provides."
Schwarzenegger said the state needs new prisons to relieve overcrowding. The prisons are so full that the federal courts are threatening to intervene by capping the inmate population and potentially ordering early releases of criminals.
The governor also wants to spend $4 billion on new dams in Northern California and near Fresno, an idea most Democrats and environmentalists vehemently oppose. He wants to spend another $500 million on ground water storage.
Schwarzenegger said the dams are necessary to store more of the water from Sierra snow melt, which could be reduced by global warming. Two-thirds of Californians depend on the snow melt for drinking water, and Central Valley farmers use it to irrigate their fields.
The school bonds would build 15,000 new classrooms and renovate another 40,000, in addition to the $10.4 billion school bond voters approved last year.
Janet Bledsoe Lacy, a member of the Oceanside Unified School District board of trustees, said schools could use more money for classrooms. She said she had not heard the governor's speech but had heard some of the news coverage.
"I do believe that the governor has a strong commitment to education," she said. But for too long the state's spending on education has fallen behind. "I can't think of a better thing for the state to spend on."
Schwarzenegger, who will release his budget plan today, said his spending plan would fully fund education and "dramatically reduce" the state's estimated $4 billion deficit.
State Sen. Mark Wyland, R-Carlsbad, called the governor's speech "ambitious and visionary," but said he wanted to hear more of the details.
"A lot of what we heard tonight may sound good in concept, but I want to know more specifics," Wyland said. "Details matter, and right now they are not available. The main concern I have is, once again, how do we fund these proposals?"
On Monday, Schwarzenegger unveiled a sweeping plan that would require all Californians to have health insurance and would extend coverage to more low-income children, including those who are in the country illegally. He said people who have insurance pay a "hidden tax" in the form of higher premiums to cover the nearly 6.5 million people who have no medical coverage.
Barbara Mannino, executive director of the Vista Community Clinic, said she liked the governor's health reform plan, but also said she wanted to learn more about it.
"I'm excited, and I have cautious optimism," Mannino said. "The overview is wonderful, but how is it actually going to be implemented?"
Children's advocates and some Democrats criticized a Schwarzenegger plan unveiled Sunday to cut off welfare aid to children whose parents don't meet minimum work requirements or who are in the country illegally. Administration officials said the reduction would trim $465 million from the state's welfare budget.
"Cash assistance is used for minimal basic necessities: food, medicine, clothing and shelter," said Deena Lahn, policy director for Children's Defense Fund California. "Where are the children going to go when there is no money to pay the rent and keep the lights on?"
In his speech, Schwarzenegger also delved back into the global warming issue.
He said cars should run on cleaner-burning fuel to help reduce greenhouse gases, mostly carbon dioxide, that many experts say are causing the Earth's atmosphere to warm. And he proposed that California become the first to develop a carbon fuel standard.
"Let us blaze the way, for the U.S., for China and for the rest of the world," Schwarzenegger said. "Our cars have been running on dirty fuel for too long. Our country has been dependent on foreign oil for too long."
Though the governor struck a bipartisan tone in his inaugural address Friday, Democratic leaders said they will fight some of the governor's proposals announced this week, including his plan to cut welfare.
"We won't take breakfast away from poor children and will not allow Wall Street traders to control our fight against global warming," Senate President Pro Tem Don Perata, D-Oakland, said in a televised Democratic response to the state of the state.
-- The Associated Press contributed to this report. Contact staff writer Edward Sifuentes at (760) 740-3511 or esifuentes@nctimes.com. Comment at nctimes.com.
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Larry J wrote on Jan 10, 2007 2:06 AM:Arnold thinks he is doing the heavy lifting as governor by proposing $43.3 billion in more bonds to develop infrastructure. However, spending money by appropriating bonds is easy. Spending money isn't the heavy lifting-- gathering the money is the heavy lifting, and this is done by government through taxation. Certainly not popular to tax, is it? But, this is what this state needs if it is to restore healthy and effective government. In trying only to be popular, this governor is proving himself to be a pantywaist.
Sherry wrote on Jan 10, 2007 3:54 AM:Arnold's arm has indeed grown long. California is now a 'Nation State'? I thought what was once the Lovely Gem of the United States but has now become an International Flophouse for Illegal Aliens is a welfare state. The rest of USA states fork out billions to feed, clothe, medicate, school to take care of the physical needs of the illegals and more millions to fund the Lawyers of Ludlow, Maldek,LaRaza, Mecha, Chicano Nation, Rich Families of Mexico a la Michele Waslin of LaRaza and so forth who keep them here and bring in more hundreds of thousands as I type this post. And a good shout out to the Catholic Bishops...but have a care. Don't leave young boys alone with them, legal or illegal. It is Good to know the rest of the USA no longer has to support the new Nation State. Hasta la Vista!
Rburgundy wrote on Jan 10, 2007 8:19 AM:Great. The Healthanator wants to solidify the market problem in healthcare by keeping his big money Insurance Company donors happy. Individual mandates. Thanks. Maybe Progressive will cut me a deal on auto and health. An actual solution passed the legislature last year but he vetoed it.
Maximillian wrote on Jan 10, 2007 8:27 AM:Right on Arnold! Thanks for moving in the right direction on global warming and universal health care. I wish you would just become a democrat already!
bryan wrote on Jan 10, 2007 8:36 AM:No new taxes no new bonds. arnold thinks he can borrow money and not pay it back. We should have a pay as you go system. I dont want my kids or grandkids paying for stuff today that arnold wants to improve his political standing with the liberals.
John E wrote on Jan 10, 2007 8:47 AM:America's heart and soul and true silent plurality, its political center, is re-emerging and re-energizing.
Mike wrote on Jan 10, 2007 9:39 AM:What a perfect picture to the right. Two true democrats to the core. Thanks for nothing Arnold. You are a real disappointment.
RWC wrote on Jan 10, 2007 10:15 AM:Wonderful! We are going to borrow our selves out of debt. The Federal Reserve, which is no more federal than Federal Express, is going to make more play money. Of course, the citizens will be charged interest for this loan. When is the American citizens going to wake-up?
Patriot wrote on Jan 10, 2007 12:44 PM:Great. Let's spend more money on cleaner emissions while keeping silent about the Indonesians continuing to add to the world's carbon dioxide levels by burning and chopping down their carbon dioxide-reducing rain forests. Let's spend more money on prisons and schools and health care for illegal aliens and their children while keeping silent about the federal government's failure to curtail illegal immigration or at least reimburse California taxpayers for the costs. California politicians cannot and should not try to solve global problems unilaterally. They should insist the federal government address multi-national problems before asking the California taxpayer to take on more liability.
morty wrote on Jan 10, 2007 12:53 PM:hafe of mine are not printed eithermine hit to the point. they want junk.
susan wrote on Jan 10, 2007 1:07 PM:Health care for the entire world payed for by california citizens. Anyone who can put their foot on california soil can get free coverage. Come one come all. You need that heart surgery fly to california and get it done for free. You think the 30 million illegals US has now is big just wait until this goes through there wont be anyone left in mexico they will all be in calfornia.
Reply to RWC wrote on Jan 10, 2007 1:18 PM:Maybe your blogs "isn't being posted" because you don't know how to use proper grammar!
Ricardo wrote on Jan 10, 2007 1:20 PM:Who would have thought we'd one day be thinking that Davis looked like not sucha bad guy after all? Arnie, you are a out-of-control tax-and-spend liberal. Like Maixmillian wrote, just declare yourself a DemoRAT already!
JIM wrote on Jan 10, 2007 1:42 PM:Basic health care is OK and can be supported by everyone. The problem with our system are out of control costs and unlimited benefits, especially for those on Medicare and MediCal. Who will say "no" to out of control entitlements? Nothing in our Governor's speech addresses this.
Vista Citizen wrote on Jan 10, 2007 1:59 PM:Ouch!! We've been Screwed by a RINO! The Pandernator! Hey Arnold, your job here is done. Go back to Hollywood.
Rburgundy wrote on Jan 10, 2007 2:26 PM:He's not a democrat and neither is Fabian. There both corporate prostitutes. Jim is right about one thing - this corporate welfare, insurance company pay off is out of hand. Max - this is not a step towards true universal healthcare it simply exacerbates all that is wrong with market based medicine.
LONG TIME RESIDENT wrote on Jan 10, 2007 3:15 PM:WHEN IS CHINA AND INDIA AND MANY OTHERS GOING TO HEAR ABOUT GLOBAL WARMING. I THINK THAT WE SHOULD ALL HAVE THE GREAT INSURANCE THAT OUR SENATE AND CONGRESS HAVE. REMEMBER WHEN BUSH PROMISED THAT ONE?. WHY SHOULD I PAY A CENT FOR EVERY DEADBEAT AND ILLEGAL TO BE INSURED? ARNOLD IS PANDERING TO HIS RICH INSURANCE FRIENDS SO THAT THEY CAN GET OFF THE HOOK CHEAPLY. ARNOLD NEEDS TO BE REPLACED.
Bill wrote on Jan 10, 2007 3:16 PM:I think Arnold is doing the right thing. It's nice to see such rapid progress. Borrowing isn't necessarily bad if it pays for useful infrastructure and societal investments. These projects will pay dividends and generate money over time.
Hey you happy meal without wrote on Jan 10, 2007 3:28 PM:french fries. Take your illegal prisoners fly them to the middle east. The Arabs will imprison them for half the money we spend now.
Ummm.... wrote on Jan 10, 2007 3:32 PM:World destroyed by the computers turning over to the year 2000, Bird flus that would kill millions of people, and now global warming that will kill all life on earth....Where is the Flying Saucers with the ray guns?
The Irony of Democracy wrote on Jan 10, 2007 4:48 PM:I guess Arnie doesn't read blogs! Most Californians want stricter enforcement of our immigration laws and to eliminate benefits intended for legal residents. Ironic, illegals can driver without auto insurance, but the governor is offering them health insurance?
Mary wrote on Jan 10, 2007 4:57 PM:Your health is your wealth. You would not expect your employer to pay for your house or apartment, so why should you expect them to pay for your health insurance? Mandate companies turn over their premiums to the their employees and let the employees shop around for the best deal. Make health insurance tax deductible for everyone. As for illegal aliens - give everyone free vacanations no matter what their immigration status. Open up urgent care centers that accept cash. This applies to everyone. Only use insurance for more expensive items. Only allow ambulances to go to emergency rooms.
Terminating the Taxpayer wrote on Jan 10, 2007 5:04 PM:Let me get this straight. Illegals don't pay taxes, send billions of dollars home to Mexico saying that they cannot afford health care so we give it to them for free, knowingly? Borrow money to fund the grand plan and tax the Californian citizen to pay the bond?
Roberto wrote on Jan 10, 2007 7:36 PM:To all you whiner phobies...Bye!, and take someone with you pleeeeze!
reality wrote on Jan 10, 2007 9:45 PM:Arnold is so out of touch with the legal citizens of this state. He has no clue. He seems to be working for the illegals or working for mexico. there some sort of hidden agenda with him, i think he really wants to turn california into a third word country with no middle class. There will be the ultra rich like him and Pelosi on one end and the illegals on other making less than minimum wage working for him. Hes the new slave master of the 21century
I get it! wrote on Jan 10, 2007 10:04 PM:This explains all his trips down to Mexico! By the way there isn't anything in life that's free folks. Creating a state of low wage/non-taxable earners is beyond idiotic. You'll be the first to complain in the future Roberto and Co. when the quality of life here goes down the toilet.
John wrote on Feb 5, 2007 5:30 AM:Welcome to the Peoples Republik of California. The place were we get our butts taxed off do we can fund programes for people who shouldnt be here.Sounds idiotic to me.
Wrong focus? wrote on Jan 9, 2008 8:55 PM:Ok It is kind of irritating to see so many people complaining about this topic. Sure that is alot of money, but it is for a good cause. You complain about this and yet I see noone talking about all of the money that NASA is wasting sending robots on rockt ships to mars to x-ray rocks.. oh and they missed the first time. They launched a probe to venus never to be seen again. Might as well loaded a shuttle with gold and launched it into the sun. BILLIONS of dollars have been wasted on this crap we DONT NEED and you are complaining about a fraction of that amount that is going to used for something usefull.. open your eyes people.
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