Author: Joel Fox

Able Abel and the Role of Acting Governor

Acting governor Abel Maldonado stands tall in the San Bruno gas line fire tragedy. Filling in for Governor Arnold Schwarzenegger who is on an Asian tour generating business for the Golden State, Maldonado has taken over the controls of the California ship and proved a hands-on leader directing resources to the sight of the crisis. Importantly, he is available to explain to the people suffering from the crisis and the public at large what the government knows and what it is doing.

Over the years, many observers of California government have suggested that the state constitution be changed to keep power with the elected governor, even when he or she is out of state. The argument goes that with modern communication systems, a governor traveling far away would still be informed and aware of any situation and the traveling governor can still direct the bureaucracy to respond in a crisis.

However, it is clear from the current crisis that some one on the ground has a better understanding of on-going problems and possible solutions to confront them. Maldonado has proven that.

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Prediction: A Brown Win Means Special Election May 17

Conversation is getting louder that there will be a special election next year if Jerry Brown wins the governorship as reported by KQED’s Jon Myers. Brown’s meeting with the San Francisco Chronicle editorial board in which he mentioned the possibility of a special election increased the speculation.

I think it’s a sure thing and have for some time. I’ll even predict the date: May 17, 2011.

Brown said he plans to work on the next budget immediately after getting elected. If he can’t get past the hurdles his predecessor couldn’t jump in the polls-apart legislature, he will take his solution to the voters. Since Brown’s mantra is that he will not support taxes unless the people approve, his solution will probably include tax increases on the ballot.

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Bravo to the US Chamber’s California Campaign

In 2005, I wrote in a document titled, Creating a Business Friendly California, meant to energize the business community: "To achieve a business friendly California, the business community must speak directly to the voters.  We must educate voters on issues of the economy, business, regulations, and taxes. It’s not enough to educate the elected policy makers. Voters are the policy makers, themselves, when they vote on initiatives.  We have to show them that a business friendly California is good for everybody."

Finally, such an effort is coming about thanks to the United States Chamber of Commerce. The Chamber issued a report the end of last month on California’s economic troubles and offered suggestions on how to turn around our economy. You can find the full report here.

The Chamber plans to back up this report with a media campaign to get the word out along the lines of my proposal from years ago.

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Voters Beware – Prop 27 has Big Teeth

You remember the fairy tale … the little girl visits her grandmother but notices something strange about her … "What big teeth you have, grandmother."

A Big Bad Wolf has dressed up as Little Red Riding Hood’s grandmother so as to catch her by surprise and devour her.

The backers of Proposition 27 play the Big Bad Wolf in a modern day version of the tale. The politicians behind Prop 27 want to devour the poor voters who think it’s a good idea to remove legislators from the obvious self-interest of drawing their own legislative districts.

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Jerry Brown’s Republican-Like Message

Jerry Brown released his first official campaign television ad and it contains a decidedly Republican theme. Following a revisit of his governorship by an announcer, Brown comes on the screen to tell voters three points of his platform: We must live within our means; power must move to the local level; and no new taxes without voter approval.

Of course, there are many Republicans who want no new taxes — period! But, generally, for years Republicans have emphasized the points expressed by Brown.

However, Brown adopting these themes raises some questions in the current political environment.

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Jobs is Issue Number One

While last night’s senate debate between Barbara Boxer and Carly Fiorina covered a number of issues, it also affirmed what we have been saying all along – that jobs is issue number one.

California stuck with over 12% unemployment for what seems an eternity must unlock the formula to create more jobs. Both candidates hit the job issue hard during the debate.

Boxer excoriated Fiorina for sending 30,000 jobs overseas when she headed Hewlett-Packard. Fiorina responded that she made tough executive decisions and cut some jobs to save others.

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The Senate Debate: Riding Momentum

Tonight’s debate between Barbara Boxer and Carly Fiorina will set the race for California’s United States Senate seat off in a new direction. By all accounts the race is even. It feels even … if I can justifiably claim that one can get those feelings about political races after hanging around politics for a long time.

That means what happens starting at 7 p.m. tonight at St. Mary’s College in Moraga could be a very important step in deciding California’s next senator. A superior performance or a sub-par one likely would be a game changer.

Will Fiorina look inexperienced next to the three-term senator? Will Boxer appear out-of-touch and arrogant, as her opponents have charged in the past? Any mistakes, superior ability, or personality traits could set an impression with observers and allow one of the candidates to build momentum.

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Two Budget Votes Are Not Enough

The scheduled votes Tuesday on two disparate budget plans for California — one put forth by Governor Arnold Schwarzenegger, the other by legislative Democrats — are fine as far as they go but they do not go far enough. There should be votes on many possible budget plans.

Tuesday’s exercise is designed to consider two different ways to look at spending plans for the state government and to take a measure of where those plans stand with legislators. The outcomes of the votes are obvious.

The Republicans will support the Schwarzenegger plan built around extensive budget cuts to close the $19-billion state deficit; the Democrats will stand behind their own plan, which features far fewer cuts.

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Big Business Should Loan to Small Business

Los Angeles Times business page columnist, Michael Hiltzik, and I often disagree.

I’ll never understand why the Times insists on business columnists who spend a great deal of time criticizing the business community, as they have over recent years. In my view, working toward a more business friendly state would lead California out of its perennial doldrums. Saying that, however, I think Hiltzik’s latest column hits on a subject that can help the state and country recover.

Hiltzik criticizes corporations from sitting on piles of cash. He reports that "operating earnings of companies in the Standard & Poor’s 500 index jumped 38.4% in the second quarter compared with a year earlier, according to Thomson Reuters, and companies are sitting on an estimated $1.8 trillion in cash …"

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