Budget Tight, Schools Come 1st, Davis Says

In his first State of the State speech, Gov. Gray Davis reaffirmed his campaign commitment to make California schools the top priority of his administration--but he warned there won’t be much money left for other issues.

“My first priority--in fact my first, second and third priority--is education,” Davis said. “And my goal is to set higher expectations for everyone involved in our schools: students and parents, teachers and administrators. This, I believe, is our duty to the future.”

In his characteristically robotic speaking style, Davis told lawmakers to convene a special session of the Legislature on Jan. 19 that will consider education reforms on an emergency basis--meaning that the legislation could be implemented immediately rather than at the end of the year.

He also warned that the upcoming year could be financially difficult for the state because of economic troubles in Asia, a possible dip in U.S. production this year and some of the costly spending programs the Legislature passed last year--such as tax cuts.

“This year we face budget pressures that require discretion, financial caution and crystal-clear priorities,” Davis said.

The governor pointed out a half-dozen teachers nearby in the gallery of the ornate state Assembly chamber, where he addressed a joint session of the Legislature for about 40 minutes.

During part of the speech, California’s first lady, Sharon Davis, sought to illustrate her husband’s education focus by reading “The Little Engine That Could” to a ponytailed preschooler on her lap.

Davis’ speech was a landmark for Democrats--the first time in 16 years that their party has had a governor to set the state’s annual agenda with the traditional State of the State speech and a budget proposal. The governor’s budget package will be released Friday.

But the policy blueprint Davis described was more modest than revolutionary. Except for the announcements on education, many of the items cited in his speech are existing programs that he plans to continue--like those for teenage pregnancy, youth shelters, water resources, local police funding and college tuition rates.

Most lawmakers responded with polite but cool applause. Still, the remarks won praise from both Republicans and Democrats.

“He’s not a stemwinder,” said Senate President Pro Tem John Burton (D-San Francisco). “You don’t bring them to their feet talking about accountability. Basically, it was sound policy.”

From the Republicans, state Sen. Jim Brulte (R-Rancho Cucamonga) said, “We think this is a good speech.”

State Sen. Ross Johnson (R-Irvine), the Senate’s Republican leader, added that these are “ideas that in many instances we have heard before--and in many instances have come from Republicans.”

Deficit Predicted

The state’s financial condition is a disputed topic in Sacramento.

State economists have predicted a shortfall of at least $1 billion by next June because of a dip in foreign trade and an unexpected hike in Medi-Cal costs. Davis aides suggest that the deficit could reach $3 billion.

But until April, when the state receives much of its revenue from taxes, most of the forecasting is guesswork.

Last year, a $4-billion budget surplus was not realized until the spring. This year, some Republicans say the continuing climb of the stock market could produce another windfall in April.

Aides said Davis, however, does not think he can count that. He offered modest sums of new money for some programs.

He pledged $14 million for a new veterans home in San Diego County. He also directed some money to the environment--$10 million more for coastal protection and about $20 million for a plan to improve Lake Tahoe.

On gun issues, Davis said he would sign a ban on assault weapons that was vetoed by former Gov. Pete Wilson. But he did not mention a companion gun bill high on Democratic wish lists that would prohibit the sale of cheap handguns--so-called Saturday night specials.

Davis pushed off some of the state’s most intractable issues, assigning them to a series of special task forces that will explore remedies for health care regulations, transportation problems and local government finance.

Some of the research duties will be headed by the new lieutenant governor, Cruz Bustamante, indicating a much more substantial role for the state’s second-in-command than Davis enjoyed under Republican Wilson.

Administration officials previewed the heart of Davis’ education proposals earlier this week.

On Wednesday, state Supt. of Public Instruction Delaine Eastin indicated for the first time that Davis’ education budget will exceed--by at least $100 million--the minimum spending required by law. For the current year, the state’s minimum share of the education budget is $23.1 billion.

Special Focus on Schools

Davis’ policy package focuses special attention on reading skills for children up to grade three. It is also designed to add more responsibilities for all players in the education system.

“No one gets a free ride,” Davis said. “Students will be tested. Teachers will be reviewed. Principals will be held to account and parents will be urged to take greater responsibility.”

Davis also designed a market-style approach to encourage better school performance with cash bonuses for those institutions that demonstrate improvement. For example, he asked lawmakers to create a fund of $150 million next year to distribute among schools that improve their test scores from one year to the next.

He also proposed a Governor’s Reading Awards Program to provide cash bonuses to the 400 schools whose students read the most books designated on a California Reading List.

Davis also took aim at schools and teachers who do not meet minimum standards.

He proposed a peer review panel at each public school, made up of veteran teachers who would evaluate colleagues and pass their reports to principals for promotional decisions.

The issue is likely to be controversial for teachers who don’t want to be evaluated and for more aggressive reformers upset that Davis stopped short of calling for termination of substandard teachers.

“Just like it took Nixon to go to China, it may well take a Democratic governor to get accountability [in schools],” said Eastin. “In the end, the best teachers want the worst teachers removed.”

Turning to students, Davis said California should follow many other states in establishing a rigorous test for graduation from high school. And he promised serious consequences for schools that are singled out for improvement and fail to meet minimal goals.

The governor said the state could take charge of such schools, making personnel decisions such as hiring and firing teachers or administrators.

“These will include dismissal of the principal or reassignment of the teachers or creation of a charter school by the parents or reorganization of the school or even closure of the school or district,” Davis said. “When an NFL coach has one losing season after another, he gets replaced.”

Labor unions were the backbone of Davis’ election campaign, and their representatives have won high places in his new administration. In the speech, Davis confirmed that he will approve a pay raise for state workers and he endorsed a plan to restore a state law requiring overtime pay after an eight-hour workday.

Democrats predicted quick passage of the idea. It is “payback to workers,” said Assembly Speaker Antonio Villaraigosa (D-Los Angeles).

Davis also pledged full funding for family planning programs, saying, “To those who would deny a woman her right to choose, please don’t waste the Legislature’s time.”

In one of the strongest applause lines of his campaign, Davis pledged that the “era of wedge-issue politics will be over when I take the oath of office.” Davis closed his speech Wednesday by proposing “a four-year moratorium on wedge-issue politics.”

“In recent years we have had too much scapegoating and finger-pointing,” he said. “I believe the time has come for all of us to pull together, not apart.”

Times staff writers Carl Ingram, Dan Morain and Amy Pyle contributed to this story.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

In His Own Words

Excerpts from Gov. Gray Davis’ first State of the State speech before the Legislature:

On funding for teaching reading

“I will call on you to allocate $186 million for reading improvement programs, including $75 million specifically targeted for intensive reading instruction academies for pupils.”

On teacher training

“I intend to continue a program, appropriately started by Gov. Wilson, to provide $10,000 in merit awards to teachers who demonstrate extraordinary skills by successfully completing the rigorous process of obtaining certification from the National Board of Professional Teachers.”

On public safety

“I will make good on my pledge to sign a tougher ban on assault weapons. . . . I was trained in the use of these powerful weapons in the Army, and they do have a legitimate place on the battlefield. But we must do everything we can to rid them from the streets of California.”

On family planning and abortion rights

“To those who would deny a woman her right to choose, please don’t waste the Legislature’s time.”

Compiled by Times researcher Tracy Thomas