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Jessica Levinson

Jessica Levinson

Posted: December 31, 2010 02:35 PM

Like it or not, the Governator will not "be back." We've had a long run with him, seven years.

The economy is now, undeniably, in the tank. Questions continue to linger as to whether California is governable. Answers are many, but real solutions too often seem few and far between.

So behind all the rhetorical noise, it is worth asking, how did the Governator do and what does his tenure mean for the future of California?

To answer those questions, let's take a look at a few key issues:

BUDGET AND TAXES


The Budget Process: Perhaps more important than anything else, Schwarzenegger failed to fix the budget. This is Schwarzenegger's greatest short coming, and was the primary purpose of his 2003 campaign. However, it is important to ask how much any governor could have accomplished.

Schwarzenegger has managed to get one of his favored reforms on the 2012 ballot; a measure would mandate a larger rainy day fund. Further, in November of 2010 Californians did pass a measure to reduce the number of votes needed to pass the budget from two-thirds to a simple majority. Yet, at the same time Californians also passed a measure which requires that all fee increases be passed by two-thirds of both houses. This is the same requirement necessary to raise taxes. Unless one party magically garners two thirds of both legislative houses, these supermajority requirements will result gridlock.

Gimmicks aside, there are only so many options when it comes to balancing a budget. One can raise revenue, cut spending, or borrow. Because it will be arduous, though not impossible, to raise revenue (taxes or fees), the later two options are likely to continue in at least the short term.

Bonds/Indebtedness: When Schwarzenegger took office California had $34 billion in bond debt. That sounds like a sizable number until you hear that we now have $91 billion in such debt. This is in some part due to two bond sales that Schwarzenegger supported. First, at Schwarzenegger's behest, California sold $15 billion in bonds to balance the 2005 budget. Second, again with Schwarzenegger's urging, we sold $37 billion in infrastructure bonds.

And he wants more. Schwarzenegger is supporting an $11 billion bond for water conservation that will be on the 2012 ballot.

Bonds debt is sometimes quite necessary, and certainly not inherently evil. However, it will need to be repaid at some point. It is not free money.

The Tax System: Schwarzenegger called a bipartisan tax commission that was charged with finding ways to make our sometimes volatile tax system less dependent on the highest earners and capital gains taxes. However, the recommendations were dead on arrival.

The Car Tax: One of the first things Schwarzenegger did when he rode into office was cut the infamous vehicle license fee. This was one of Schwarzenegger's first campaign promises, and he fulfilled it. The problem is that it is has cost California big time, to the tune of about $6 billion per year. Goodbye car tax, hello structural deficit.

ETHICS

Schwarzenegger has been plagued by charges of unethical behavior. The Citizens for Responsibility and Ethics named him as one of America's worst governors in 2010.

There have been questions about his use of non-profit and campaign funds for travel and special elections. He has also given termed out legislators and other friends "soft landing" jobs on state boards.

GOVERNMENT REFORM

Redistricting Reform: He supported common sense redistricting reform. (Click here for more on redistricting). Legislators will no longer draw their own, gerrymandered districts in order to stay in power. Now an independent redistricting commission will draw the state and congressional district lines.

Open Primaries: Schwarzenegger endorsed open primaries. There are undoubtedly pros and cons to the new California law which provides that any voter can vote for any candidate in the primary election, and that the top two voter-getters, regardless of party affiliation proceed to the general election. Whether or not this is an achievement largely depends on your perspective.

One potential drawback is that races could be more expensive because candidates have to appeal to the entire electorate in both the primary and the general election. In addition, the new law will all but eviscerate third party candidates, who are unlikely to be among the top two voter getters, and hence will not appear on the general election ballot.

The stated purpose of the law is to elect more moderates, who are likely to be consensus builders who will break up partisan grid lock. Time will tell whether this reform proposal takes flight.

ENVIRONMENT

Schwarzenegger paved the way to make California a leader in green energy. He signed AB 32, the Global Warming Solutions Act. Voters refused to delay implementation of this measure as recently as November 2010.

****

As always, history will be the final judge of Governor Schwarzenegger. In the meantime, hasta la vista and Ciao for now, Governator.

 

Follow Jessica Levinson on Twitter: www.twitter.com/levinsonjessica

Like it or not, the Governator will not "be back." We've had a long run with him, seven years. The economy is now, undeniably, in the tank. Questions continue to linger as to whether California is g...
Like it or not, the Governator will not "be back." We've had a long run with him, seven years. The economy is now, undeniably, in the tank. Questions continue to linger as to whether California is g...
 
 
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11:46 AM on 01/11/2011
Jesus never said is the GOD,But he was sent to redeem or pay for our ransom for us to be save at the end of the day..
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Artemis34
Women can vote against the GOP or against their ow
12:23 AM on 01/04/2011
laissezleswontonsbrulez   wrote:
"As a California­n I recall a little-rep­orted meeting between him and a small group of billionair­es just before the recall election, a group that happened to include Ken Lay [of Enron]...

California was in the process of suing Enron to recover some of those billions stolen in the power market manipulati­ons at the time of the recall election. This suit was promptly dropped after he took office. Draw your own conclusion­s."
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Artemis34
Women can vote against the GOP or against their ow
11:30 PM on 01/03/2011
He was saying that he was going to fix California's finances but now they have a bigger deficit than ever and he leave less popular than Davis.
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Nelson Montana
Artist, Author, Composer
12:01 AM on 01/04/2011
Oh, and that was all because of bad decisions? Come on. He inherited a collapsing economy and then the state experienced fires, floods, drought and tornados. And still he managed some improvements. You just want to hate him to hate him.
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Artemis34
Women can vote against the GOP or against their ow
02:46 AM on 01/06/2011
Natural disasters are totally foreseeable events.  Events that can be foreseen, can be planned for and managed.  Not surprised the you and Arnold seem unfamiliar with the basics of risk management. 

That said, the things you cite are not the reason for California's downfall.  He was in league with American robber barons to loot California.  He acted on behalf of the robber barons to the detriment of the people in dropping the suit against Enron et al for example. 

It was totally okay with him if privatized energy drove up price as much as 2400% in one day, just meant they could empty the treasury more quickly into robber baron hands. 

And please, don't project your hate on me.  I don't hate him, but I do disdain his acts against a decent governor, against the government of California and against the people of California. 

BTW, "you hate him" is really a pathetic ad hominem argument for a HuffPo blogger to make.
marilyn 63
LEVEL ONE NETWORKER
10:50 PM on 01/05/2011
yeah i was just telling someone the other day. California could have just kept Gray Davis. Arnold leaves with California in the hole>.Arnold. I;LL BE BACK>.Californians ummm never mind.
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Artemis34
Women can vote against the GOP or against their ow
02:39 AM on 01/06/2011
Yes, I believe they would have been better off with Davis.
11:53 AM on 01/11/2011
is he truly coming back......i mean arnold
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03:08 PM on 01/03/2011
I'm very VERY excited about Brown's coming tenure.
But I'm also thankful for Schwarzenegger:
He "decriminalized" marijuana use, making it no worse than a traffic violation.
He championed gay rights.
He eliminated thimerasol from vaccines.
He championed green energy and ushered in federal funds for solar power.

I'm proud to call myself a liberal, but I can honestly say he granted every wish I had for government. I'm glad I voted for him.
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Nelson Montana
Artist, Author, Composer
09:55 AM on 01/02/2011
Arnold is a winner with relentless ambition. I would never count him out.

I think he wanted to be known as a great governor who crossed party lines and got things done. But California was plagued with too many problems. With any legacy, there must be a little luck, and it wasn't in the cards for Arnie at this time.

He was far from perfect, but I think he has it in him to do more simply for the fact that he enjoys the role. He sure doesn't need the money. I'd keep an open mind toward whatever he tries next.
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Artemis34
Women can vote against the GOP or against their ow
11:37 PM on 01/03/2011
If by "great" you mean "schemer."  He seized power supposedly to put finances in order but instead made a mess.
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Michael Valentine
Retired SEIU Member
10:28 PM on 01/09/2011
Far from perfect?

Love the understatement.
10:26 PM on 01/01/2011
Arnie...You were one lousy Governor!
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Drewry
10:02 PM on 01/01/2011
It's going to be a pretty interesting look to see what Arnold does next, in terms of finding employment. I'm looking for work too myself!

http://www.DrewryNewsNetwork.com/hiring-employers-job-recruiters
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TomAmitai
01:16 PM on 01/01/2011
You left out the most important aspect of Schwartzenegger's tenure; he came into office after the previous Governor's term was shortened by a recall drive fueled by the public's anger over a power "crisis" that was manufactured by big business, specifically, Enron. We should all be concerned when private corporations have the power to effectively thwart the democratic process by manipulating markets and public opinion to suit their private interests. And the Citizens United decision is going to make it easier for them to do it.
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laissezleswontonsbrulez
Semi-retired Family Physician
10:12 PM on 01/01/2011
I strongly suspect that the connection between the Enron-engineered fake power crisis and Schwartzenegger's election is even deeper than what you suggest. As a Californian I recall a little-reported meeting between him and a small group of billionaires just before the recall election, a group that happened to include Ken Lay, Warren Buffett and a few others. Nothing was reported about the content of this meeting, just pictures of him strolling cordially with his BFFs smoking expensive cigars.

California was in the process of suing Enron to recover some of those billions stolen in the power market manipulations at the time of the recall election. This suit was promptly dropped after he took office. Draw your own conclusions.
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Artemis34
Women can vote against the GOP or against their ow
11:40 PM on 01/03/2011
Thank.  I drew the obvious conclusion but...
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12:57 AM on 01/02/2011
You'd better be careful, TomAmitai, or PayPal, Bank of America, and Amazon.com may cut off your access to cash!
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studioh!
just.words.
11:45 AM on 01/01/2011
don't let the door hit you on the way out, and take that stogey tent with you!
10:49 PM on 12/31/2010
The Governator's 'tenure' was an absolute disaster.

If anyone wants to see what MASSIVE AUSTERITY and so-called 'green policies' would do to an economy, just watch the online documentary: 'California Dreamin''.

Remote thermostats installed in people's home to set the prescedant that if it's too hot or too cold in your home, you don''t have the freedom to turn on the air-conditioner, like in Europe.

"Lexus Lanes" on public interstate highways, instead of hi-tech rail, so PPP (private-public-partnerships) can make it possible for foreigners to turn a profit off infrastructure built-n-paid-for by the American taxpayers.

So many Californians living in their vehicles or RVs, unable to shower daily, raise their children in decency so the banksters can keep their loot without threat of hyper-inflation.

A backwards thinking of PPP (public-private-partnerships) sets California to lead America back to what this country fought against; the corporate empire of the British East India Co.
05:35 PM on 01/01/2011
And unbelievably Arnold is one of the better Republicans
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demar
10:35 PM on 12/31/2010
Arnold was dragged kicking and screaming to sign AB32 and only after it was watered down. He is a fossil fuel toady.
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nastywolf
...to promote the general welfare...
10:27 PM on 12/31/2010
Alaska charges a 24% oil extraction fee. Every other oil-producing state charges a similar fee. CA is the only state that charges.....0%. That's $7.5B of annual tax revenue that CA's Repubs have blocked.

Annually there's almost $22B in fees that CA was and should be receiving but doesn't because the Repubs use legislative procedures to hold them up. CA could wipe its budget deficit clean in 18 months if not for the GOP.
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GoldwaterKid
Vote Person, Not Party
10:40 PM on 12/31/2010
This is a good point. So, since you seem to be keen on 'numbers', how much oil producing is going on in Cali.
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nastywolf
...to promote the general welfare...
11:36 PM on 12/31/2010
In 2007/2008....about $250M bls. @ $100/bl a 24% fee would be over $6B. Oil industry expects crude to go for at least $120 in 2011 and possibly over $150 by the 1st Q of 2012.

The Dems asked for a 6% extraction fee in 2008, 2009, 2010. The Repubs refused to allow the issue to go to vote.
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GoldwaterKid
Vote Person, Not Party
09:51 PM on 12/31/2010
This Governor could have done more, if the Representatives voted in the State, would have actually done their job, and made decisions good for the whole state. But, NO, once again, the Dems just took, took, took, but the (R) let them. They both need to start doing the tough work, like we all have had to do in our own lives.
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nastywolf
...to promote the general welfare...
10:17 PM on 12/31/2010
You don't have a clue. During the Governator's tenure the Dems never once raised spending and they cut the annual budget by over $20B , the Repubs tried to raise the budget another $4B.
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GoldwaterKid
Vote Person, Not Party
10:44 PM on 12/31/2010
Obviously you don't live in CA. It's the decay that's happening.....spending with no worry about more money.......
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Artemis34
Women can vote against the GOP or against their ow
11:34 PM on 01/03/2011
If you are a Goldwater Republicans, you are one of the 3 that remain.  No "R" stands for "Robber Baron."
08:47 PM on 12/31/2010
Read it and weep repugnants (When Schwarzenegger took office California had $34 billion in bond debt. That sounds like a sizable number until you hear that we now have $91 billion in such debt.) {Schwarzenegger did when he rode into office was cut the infamous vehicle license fee. it is has cost California big time, to the tune of about $6 billion per year. Goodbye car tax, hello structural deficit.} Once again repugnants ruin the economy, every time a repugnant wins the deficit loses. Repugnants irresponsibly give tax breaks and the results are big cuts in public services.
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nastywolf
...to promote the general welfare...
10:21 PM on 12/31/2010
$6B each and every year. An additional $21B each year in Dem sponsord tax cuts. But a $20B pwr year accumulation of tax cuts for big business, sponsored by Repubs. The accumulated deficit after 8 years is about $32B. In other words, CA doesn't have a budget problem....it has too manyu Repubs in office.
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GoldwaterKid
Vote Person, Not Party
10:45 PM on 12/31/2010
what State do you live in?
07:15 PM on 12/31/2010
Arnold's seven year remake of "The Good, Bad, and the Ugly" staring the State of California. The Good, the environmental first steps to make California a leader in Green. The Bad, the on going budget mess and deficits, the Legislature has a hand in this mess too. The Ugly, the debt. This is going to make future budgets even harder to balance.
Jerry Brown has his work cut out for him. Jerry should remake Eraser and erase all California's budget problems. Hollywood the city of dreams.