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| Office of the Chancellor / Public Affairs |
Wednesday, January 28, 2004
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San Jose Mercury-News 1-28-04 Governor keeps options open on tax increases |
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SACRAMENTO - Gov. Arnold Schwarzenegger would not rule out raising taxes as part of this year's budget solution and chided state lawmakers on Tuesday for moving slowly on his demand that they send him a workers' compensation reform package by March 1. While Schwarzenegger has previously said he opposes higher taxes to help solve the state budget crisis, the Republican governor skirted questions about whether he might change his mind. ``I'm considering only one thing and that is to fix the spending problem because then we are home free,'' Schwarzenegger said when twice asked during his first appearance before the Sacramento Press Club if he would categorically rule out raising taxes this year. In a wide-ranging question-and-answer session with reporters, Schwarzenegger also vowed to put workers' compensation reform on the November ballot if state lawmakers fail to meet his deadline for sending him a proposal. Schwarzenegger said lawmakers are moving slowly because they are beholden to groups that fund their political campaigns. ``They can't do it because a lot of them are owing things to the special interests,'' he said. ``Now they are scrambling: `What do I do about the trial lawyers? What do I do about the insurance companies?' '' `` `How do I handle this situation now so that I can get elected again?' '' he added. ``This is what it is all about.'' The jab drew a dry retort from state Sen. Richard Alarcon, the Van Nuys Democrat leading workers' comp talks in the Legislature. Alarcon called the March 1 date an unrealistic deadline that had nothing to do with crafting good policy. ``I'm not going be threatened to move forward in a matter of eight weeks just because somebody wants to meet their political rhetoric,'' said Alarcon. While outlining his plans, Schwarzenegger sought to charm reporters at the press club, drawing laughs when he tossed out his staff-written speech, complimented a male radio reporter as ``sexy'' and threatened to make listeners watch his first B-movie -- ``Hercules in New York'' -- thirteen times if they failed to chuckle at his jokes. Schwarzenegger also used his appearance to promote Propositions 57 and 58, the March ballot measures the governor and other state leaders say are critical to rejuvenating California's fiscal health. Proposition 57 would allow the state to borrow $15 billion in bonds to help ease its budget crisis. Proposition 58 would place new limits on the budget designed to prevent the state from excessively borrowing money to pay its bills. The governor faces an uphill battle, with polls showing weak support for the bond. With five weeks until election day, the governor's committee is lagging in raising at least $8 million it hopes to collect. So far, said strategist Marty Wilson, the team has collected less than $1 million. On Tuesday, Schwarzenegger shut the door on donations from unions such as the California Teachers Association that have endorsed the measures and could provide a critical cash flow. ``We will not take money from any union,'' he said, repeating a promise he made during his own political campaign. Schwarzenegger also offered his first public comments about the state's independent watchdog for prisons since his Jan. 16 firing of John Chen, the acting head of the Inspector General's Office, which the governor wants to move under his corrections agency. For now, Schwarzenegger said, he opposes proposals to restore the inspector general's budget -- now about $3 million -- to as much as $11 million. ``Let me just tell you the biggest problem we have seen is that the inspector general, they haven't done the job that they were supposed to do,'' he said. He sought to deflect a question about who advised him to fire Chen by labeling as ``one of those unfortunate things'' that Chen's dismissal came on the eve of last week's legislative hearings on the prison system. ``One had nothing to do with the other,'' he said. |
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These news clips are provided by the Public Affairs Department of The California State University. They are intended for the internal use of The California State University system and should not be redistributed. Questions and submissions may be sent to publicaffairs@calstate.edu. |
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