Summit Puts Them on Spot, Lawmakers Say

As Assembly Speaker Willie Brown’s highly publicized economic summit closed Wednesday, lawmakers said the two-day event had so raised expectations across the state that they will have little choice but to pass laws aimed at helping California’s troubled economy.

After spending the first day listening to economists and academics describe California’s problems, Brown turned to entrepreneurs and others to offer ideas about how to put Californians back to work.

More than 500 politicians, business executives, academics and lobbyists participated in the two-day summit at the Biltmore Hotel’s convention hall in downtown Los Angeles.

While few of the ideas were new and there were many areas of disagreement, Republican and Democratic legislators said they now expect fast action in several areas. Many said they are considering relaxing state-imposed clean air standards and rolling back environmental regulations in the hope of allowing industry to get permits more easily to build factories and housing.

Brown vowed to produce a package to overhaul the $11-billion workers’ compensation system, widely criticized for high costs to business and low benefits to workers who are hurt on the job. Republicans called on Brown to put on the governor’s desk a workers’ comp bill within a month.

For all the talk of cooperation, legislators remained deeply split on many issues, such as whether to extend the extra 1/2-cent sales tax due to expire this summer. Brown wants to reimpose the tax, which brings $1.5 billion into state coffers annually. Republicans oppose it.

But Assembly members and top industry executives said the heavily covered event will leave the Democratic-controlled Legislature and Republican Gov. Pete Wilson with little choice but to put aside partisan differences on some questions.

“The issue isn’t who the speakers were or what was said here,” said Assembly Minority Leader Jim Brulte (R-Rancho Cucamonga). “The issue is: Do we cast votes in Sacramento that make sense for California.”

David Barram, vice president of Apple Computer who addressed the gathering, declared that if nothing comes of the summit, “there will be tremendous disappointment” and public cynicism toward Sacramento will worsen.

“I’m not saying these guys are bozos,” Barram said of the legislators. “It’s very tough to lead. But it’s time to step up and do it.”

On Wednesday, speakers talked about reducing health care costs and insurance costs, and discussed how to raise capital for public works projects and business expansion.

Speakers differed sharply.

While many called for strict limits to litigation, Washington lawyer Ralph Nader held a news conference to advocate changes to the law that could bring about more medical malpractice suits. On Tuesday night, Nader debated details of the North American Free Trade Agreement with an official who helped negotiate it for former President Bush.

Occidental College President John Slaughter called for more student aid money for private schools--what he called “independent colleges”--and said low tuition at public universities is an outdated concept. Cal State Northridge President Blenda Wilson and community college representatives said the state must rededicate itself to its public universities.

Enita Nordeck, a Northern California businesswoman, stirred the crowd by telling how her roots go back six generations in California. “This is my state. I can’t give up,” Nordeck said. But she demanded that the Legislature act, lest businesses such as hers pack up and leave.

“I don’t think that lesson will be lost on us,” Brown responded, asking that she give legislators another chance.

The event was probably the most heavily watched state legislative hearing ever. More than 6 million Californians had access to it over cable television, as well as UHF Channel 58 in Los Angeles. Scores of news reporters attended.

“It holds us more accountable,” Assemblywoman Gwen Moore (D-Los Angeles) said of the attention brought to the event. “In the long run, that’s good.”

At the end of the session, Brown declared, “The expectations will never be raised too high.”

Saying the summit achieved its goal by increasing the level of discussion, Brown predicted better cooperation between Republicans and Democrats. He also said there will be legislation addressing short-term problems. Over time, he said, he hopes to see legislation that would help insulate California for recessions “in perpetuity.”

“The work product will speak volumes,” he said.

Brown said it is too early to discuss details of any bills, but said he intends to put into legislation suggestions for enterprise zones and changes in redevelopment law to help create jobs. He also said he will present several ideas picked up during the summit when he meets next month with the California congressional delegation and the Clinton Administration.

Assemblyman Gil Ferguson (R-Newport Beach) said the gavel-to-gavel television coverage of the summit allows legislators to take their case directly to the people for such issues as reform of the workers’ compensation system. That may help lawmakers confront powerful special interests, some suggested.

“Some people think that is the whole purpose of all this,” Ferguson said. “The clamor is so loud that they (Democratic leaders) can go to special interests and say, ‘We have got to do something.’ ”

Yet many special interests participated in the conference. Lobbyists for building trades, insurance, labor and many others were well-represented. At times, Brown turned over the podium to industry representatives for their insights.

The Speaker’s guests included the chief Sacramento lobbyist for the California Medical Assn., who addressed health care issues, and a developer who used the forum to decry environmental regulations that have slowed his ability to transform 25,000 acres of rice fields in rural Sutter County into a city of more than 100,000 people.

The final day also was something of a platform for Democratic candidates for higher office, among them Treasurer Kathleen Brown and Insurance Commissioner John Garamendi, who are considering whether to run for governor, and Controller Gray Davis, a potential candidate for lieutenant governor.

In a poignant moment near the conclusion, Willie Brown acknowledged that he held the summit at political risk, but said it was a sincere effort to build bipartisan agreement. He noted he is facing forced retirement in 1996 because of voter-imposed term limits. If he must leave, he said, he hopes he will be remembered as a statesman.

“I will earn your trust,” he told one of the speakers who challenged him to persuade the Legislature to pass pro-business bills.

QUESTIONS OF UNITY: The summit’s conciliatory tone may be only superficial. A28