Schwarzenegger Steps Up

With a dizzying media savvy, Arnold Schwarzenegger rode to the rescue of California cities and counties Thursday. He was hailed as a hero by more than a score of swiftly assembled city and county officials, including Los Angeles Mayor James K. Hahn, L.A. County Sheriff Lee Baca and -- right in the front row -- Oakland Mayor Jerry Brown, the former Democratic governor.

Legislators thought Schwarzenegger would take the blame when they dragged their heels in bailing out local government. Show us where the money will come from to make up for your car tax reduction, they demanded. Instead, Schwarzenegger went into action, seizing an obscure law to justify immediate payment of the money without legislative action. So much for Democratic lawmakers, who see themselves as the cities’ natural allies.

Schwarzenegger told a news conference Thursday that “our legislators left town,” leaving cities and counties high and dry. The local officials applauded him for “bold leadership” and “courage” in averting a crisis rather than leaving localities holding the bag. There’s never been anything quite like it in Sacramento, even when Ronald Reagan was governor.

Democratic leaders could only reply that Schwarzenegger was “skating on thin legal ice.”

Never mind the lawyers. If there’s a legal problem, Schwarzenegger will deal with that later. That’s what Republican Gov. Pete Wilson and Democratic legislative leaders did during the fiscal crisis of the early 1990s. Besides, the governor was supported Thursday by Democratic state Controller Steve Westly, who called the plan “an appropriate but temporary solution.”

So, where will the money -- $2.65 billion -- come from now? Schwarzenegger says $1.8 billion will come from higher-than-expected tax receipts as a result of an improving economy. He earlier proposed $2 billion in midyear cuts from a variety of sensitive programs, including aid to the developmentally disabled, causing a roar of protest. On Wednesday, Schwarzenegger removed that idea from the table, telling aides to find another place to cut.

Despite protests, it should not be too difficult to find $2 billion in savings from a nearly $100-billion state budget. Lawmakers know it’s got to be done. Unfortunately, that just gets the state through the current fiscal year. The real problem will come in the governor’s budget proposal for fiscal year 2004-05, due out in less than a month. There’s expected to be a minimum gap of $10 billion between revenue and the present level of spending. Asked how he would close the gap, Schwarzenegger said the details would have to wait until January.

Though Schwarzenegger zapped lawmakers Thursday, he also reiterated his desire to work with them in developing the new budget. If legislative leaders want to remain real players in the game, they will need to develop a credible, detailed program of their own to bring to that difficult bargaining table.