Jones Offers Proposal to Close State Budget Gap

Republican gubernatorial candidate Bill Jones laid out a plan Friday to close the projected $12-billion state budget gap without raising taxes, but offered few specifics on his proposed spending cuts.

Jones, California secretary of state, accused Democratic Gov. Gray Davis of driving California into fiscal crisis with his “reckless” mismanagement of the state. During his three years as governor, Jones said, Davis has increased spending by 36% and bloated the state payroll with more than 34,000 new jobs.

“Is your government 36% better off today than it was three years ago?” Jones asked in a breakfast speech to local Republicans. “I think most people would say no.”

Davis, who will propose a new state budget Thursday, has faced similar attacks from former Los Angeles Mayor Richard Riordan and businessman Bill Simon Jr., the other contenders in the March 5 GOP primary.

The budget shortfall--California’s worst since the recession of the early 1990s--has the Republican candidates appealing to GOP primary voters by sounding a theme of conservative fiscal management.

For his part, Jones said his plan would save $5 billion over the next six months and $8 billion the following year. In what his campaign billed as a “major policy address,” he said it was “time to stop ducking and dodging” the state’s tough budget issues.

“The time to stand up and show courage is here,” Jones said.

At the top of Jones’ list of trims: parts of the $3 billion in spending cuts and other measures that Davis already has proposed to lessen the budget shortfall.

Yet Jones declined to say which of the Davis cuts he supports and which ones he opposes. Among the proposed Davis cuts are $1.2 billion in spending for education, a perennially tough area to cut in an election year.

“We will go through each and every one of the items as the Legislature reviews them, and we will put forward an outline of specifics,” Jones told reporters after his speech.

Roger Salazar, a spokesman for the Davis reelection campaign, said Jones had “abandoned any semblance of reality in his quest to boost his flailing campaign.”

“It’s easy for somebody to put out a wish list if they have no accountability for what’s going to take place,” he said. “The fact of the matter is Gov. Davis has practiced sound fiscal management throughout his tenure as governor.”

Jones also proposed spending cuts to be chosen from a $1.4-billion list of options suggested by state Legislative Analyst Elizabeth G. Hill. She proposed cuts in agriculture, education, crime prevention, housing and other programs.

Again, Jones did not say which ones he would choose.

Jones also said he would freeze spending this year on programs funded by Propositions 10 and 99. Among those affected would be anti-tobacco advertisements and early childhood mental health programs, said Sean Walsh, Jones’ deputy campaign manager.

Beyond the budget, Jones proposed an economic stimulus package to create jobs and improve California’s business climate. It would expand business tax credits, fund infrastructure improvements with new debt, cut “job-killing” regulations that hamstring business and reform the workers’ compensation system.

Jones proposed a cut in the capital gains tax, but would not say by how much or when it should take effect. “We’ll leave that up to the Legislature,” he said.

Simon, who has proposed similar steps to lift California’s economy, said he applauded Jones’ plan. Simon also renewed his own attack on Davis.

“So far Davis has refused to lead,” Simon said in a statement released by his campaign. “Instead he has allowed fellow Democrats to propose huge tax increases and wishful accounting maneuvers to prolong their spending habits.”

On Thursday, state Senate leader John L. Burton proposed a $2.5-billion annual income tax increase on the wealthiest Californians, and state Treasurer Phil Angelides offered a debt-refinancing plan to save $1 billion. Both are Democrats.

Davis has said through aides that he will focus on cutting back the budget, rather than raising taxes.

“Just as in the energy crisis, several competing ideas have filled the leadership vacuum,” Simon said. “Californians just don’t have confidence that anyone is in charge.”