State Economic Summit Opens Today in L.A.

Assembly Speaker Willie Brown will open his much-heralded economic summit today in Los Angeles, where the recession has hit hardest, pledging to make this gathering the fulcrum for state government action to improve California’s struggling economy.

Brown will preside as Gov. Pete Wilson opens the event with a speech. U.S. Trade Representative Mickey Kantor also will speak in the morning, but New York Gov. Mario Cuomo, who was to give the lunch speech today, canceled because of illness.

In all, 500 officials, economists, industrialists and business owners from California and around the country will converge on the Biltmore Hotel for the two-day affair.

Three Orange County Republicans will be among the group. Newport Beach developer Kathryn Thompson, who broke ranks with the GOP last year and supported Democrat Bill Clinton for president, received an invitation from Brown. And John Martin, chief executive officer of Irvine-based Taco Bell Corp., said he will make a presentation at the Speaker’s request. Assemblyman Mickey Conroy (R-Orange), said he also plans to attend the summit today.

Starting at 8 this morning, 6 million Californians will be able to watch the event gavel to gavel on cable television stations from Mt. Shasta to San Diego, as well as on KLCS Channel 58 in Los Angeles.

In choosing this forum, the Speaker, known more for wielding political power than carrying out policy, is putting his considerable authority on the line. Regarded as the most powerful politician in California after the governor, Brown said he anticipates that the session will result in legislation that he will shepherd through the Assembly.

“They (voters) will hold the Willie Browns of the world accountable for whether or not the recommendations formed by the summit become implementable, implemented and advocated,” Brown said at a recent news conference.

Borrowing heavily from the economic summit held by President Clinton in Little Rock before he took office, Brown and his staff have done little to douse expectations of what may result.

“This summit is being held for serious reasons: to try to produce something that we have not been able to produce here in our committees and in our negotiations,” Brown said.

Yet many Republicans and Democrats doubt that the summit will produce much more than air. Nearly all the Senate Republicans are sending their regrets.

“I’ve got more important things to do,” Sen. Bill Leonard (R-Upland) said. “If it were just a dog and pony show, it wouldn’t be all bad. But we’ve had so many of these. Now it’s time for action.”

Defending the summit, Brown said: “I don’t know any reason why people ought to be less than optimistic. You have got to believe that there is an answer, and we haven’t found it, and maybe we will find it. . . . It will be up to us to proceed to put it into place, and I think we will.”

Brown has suggested that Wilson convene a special legislative session for bills that may emerge from the summit.

Skeptics note that last year, in another high-profile approach to rescuing the economy, Wilson appointed a Council on California Competitiveness headed by Peter V. Ueberroth. Nothing has come of it by way of legislation. A contrary report by Democrats also has gone nowhere.

The event is almost certain to receive wide media attention. National newspapers and magazines, television and radio networks, and even some foreign newspapers have credentials to cover it.

“There is an opportunity here to accomplish something very significant,” said Dan Schnur, Wilson’s communication director. “This an opportunity to talk about bringing back California’s economy. That opportunity ought to be taken advantage of.”

Beyond the confines of the Capitol, there is hope that pressure has built to the point where the Legislature has no choice but to act.

“There is a rest of California,” said Woody Godbold, president of the Los Angeles-based Zero Corp. and chair of the California Chamber of Commerce. “The rest of California is concerned. No longer can the Sacramentans live among themselves.”

Brown announced his plan for an economic summit before the Assembly in the opening session Dec. 7. His staff was as surprised as the rest of the Capitol at his suggestion.

“I thought: ‘Hmm, that’s an interesting idea--I wonder who’s going to do that,’ ” recalled Pete Price, an assistant to the Speaker for environmental matters. Soon afterward, Brown called Price into his office and asked him to take on the logistics.

It has been a mad dash ever since.

With a core staff of 10, and a few dozen others to help on details, Price has lined up panelists, culled through names of guests, lined up a hall and taken care of scores of other details, while Doug Stone of the Assembly television operation lined up a network of cable systems to air the event.

“That’s what a leader is supposed to do--take a few risks,” Price said of Brown. “He’s supposed to lead. That’s his job.”

Among those with business before the Legislature, the summit has been a hot ticket. Michael Galizio, Brown’s chief of staff, estimated that more than 2,000 people requested invitations to attend or speak.

Brown allowed each Assembly member to invite one guest, and some of those guests are campaign donors. A sampling of nine guests released by Brown’s office showed contributions from some of more than $200,000 to recent state campaigns of Republicans and Democrats, as well as ballot initiatives.

Brown urged members of his house to hold their own summits. Several did, with varying degrees of success. Based on those gatherings and other factors, Brown said he has found one front to move on. He said he believes there is a need to cut back on environmental regulation.

Too often, Brown said recently, the California Environmental Quality Act is used to obstruct developments that would benefit the state.

Brown suggested the South Coast Air Quality Management District as one target of regulatory reform. A bill is pending to curb the agency’s authority and merge the unit with another body.

At the top of the agenda for Republicans and business groups at the summit is reform of the troubled workers’ compensation system, which provides benefits to employees injured on the job. Business groups say the $11-billion system has gotten so expensive that it is forcing some businesses to move from California.

Unlike their Senate counterparts, Assembly Republicans plan to attend the summit, but are skeptical. They say the upshot will not be known for a month or more, when bills start emerging from legislative committees and the GOP learns whether the Democrat-controlled Assembly is willing to compromise.

“No one on Thursday or Wednesday should be patting themselves on the back, and congratulating themselves on a successful outcome,” said Assembly Minority Leader Jim Brulte (R-Rancho Cucamonga). “The result won’t be known for 30, 60, 90 days.”

Today’s speakers will focus broadly on California’s problems and the state’s future. Tonight, consumer advocate Ralph Nader will debate the North American Free Trade Agreement with Gary Edson, a key negotiator on the trade pact with Mexico and Canada. On Wednesday, the focus will be on solutions.