Pushing Props. 57 and 58

Californians for a Balanced Budget Yes on 57 and 58 is scheduled to begin airing its first two advertisements today, one for radio and one for television.

The ads were posted on the campaign’s website Monday. The 60-second radio spot features Gov. Arnold Schwarzenegger, the main backer of the initiatives, and his populist call for voters to join him in supporting the measures on the March 2 ballot. It will air statewide on talk-radio shows.

The 30-second TV spot shows Schwarzenegger and the campaign’s Democratic co-chairman, Controller Steve Westly, finishing each other’s sentences. It is scheduled to appear statewide for the next week, at a cost of $1.5 million.

Radio

Title: “Reasonable”

Producer: Don Sipple

Script: An announcer says: “Gov. Arnold Schwarzenegger.” Schwarzenegger begins: “Our state has been running huge deficits that have been papered over by borrowing without voter approval. I am committed to putting our financial house in order. And I need your help. After all, it is your money. On the March ballot, Proposition 57 will refinance past deficit borrowing at low interest rates. And Prop. 58 tears up the credit card for good. It requires a balanced budget every year without borrowing so we never get in this mess again.”

The announcer then says: “Propositions 57 and 58 are endorsed by the California Taxpayers Assn., California’s peace officers, the Howard Jarvis Taxpayers Assn., California’s district attorneys, the California Chamber of Commerce and other business groups as the reasonable bipartisan solution to California’s fiscal crisis.” Schwarzenegger closes by saying: “Please join me in voting yes on 57 and 58.” The announcer concludes: “Paid for by Californians for a Balanced Budget Yes on 57 and 58. Major funding provided by Gov. Schwarzenegger’s California Recovery Team.”

Accuracy: The state has run a deficit in recent years and responded by issuing warrants to borrow money against future revenues. Proposition 57 is a measure that authorizes the borrowing of up to $15 billion to cover the deficit. It consolidates borrowing authorized by the Legislature and Gov. Gray Davis; that borrowing is subject to court challenge because, as Schwarzenegger points out, it was not submitted for voter approval. But Prop. 57 also borrows money to cover the cost to the state of Schwarzenegger’s repeal of the car tax. And the prohibitions in Prop. 58 against future borrowing are not iron-clad. The measure still allows the state to do short-term borrowing to cover cash-flow problems and to borrow between state-controlled funds.

The listed endorsements are correct. The California Recovery Team, which provides money for the ads, does not belong just to Schwarzenegger; it has received contributions from a number of donors, including corporations.

Analysis: The advertisement demonstrates Schwarzenegger’s determination to simplify the two complicated measures -- Prop. 57’s $15-billion deficit bond and Prop. 58’s balanced-budget constitutional amendment -- into simple terms: a “refinance” and a “cutting up of the credit card.” It emphasizes the high-profile endorsements of taxpayers groups -- a good fit for the ad, which will be played mostly on conservative talk radio. The ad also borrows liberally from the populist rhetoric that fueled last fall’s recall campaign. The governor asks for voters’ “approval” and “help” because state dollars are “your money.” It concludes with Schwarzenegger asking voters to “join me,” an echo of his gubernatorial campaign slogan: “Join Arnold.”

Television

Title: “Duet”

Producer: Don Sipple

Script: Schwarzenegger, wearing a blue dress shirt and tie but no coat, speaks into the camera as he walks. “For the first time in a long time, Republicans and Democrats ... “ he begins. Westly, also walking and wearing a white dress shirt with tie but no coat, breaks in to finish the sentence: “ ... are working together in Sacramento to solve California’s problems.”

The screen flashes back to the governor, who says: “To solve our fiscal crisis the Legislature placed two measures on the ballot that comprise a bipartisan balanced-budget plan.” Then back to Westly, who is still walking: “Proposition 57 will refinance past deficit borrowing with lower annual interest payments.”

Schwarzenegger, also walking, then adds: “Prop. 58 requires a balanced budget every year without borrowing, so that we never get into this mess again.”

The walking stops, and we see that both men are standing next to each other. Westly begins, “Join us ... “ and Schwarzenegger concludes: “ ... in voting yes on 57 and 58.” The screen then fills with the campaign logo.

Accuracy: Westly and Schwarzenegger are correct in noting that Propositions 57 and 58 have broad bipartisan support -- and that such support is often rare in Sacramento. As in the radio ad, the description of Prop. 57 as a “refinance” of past borrowing does not tell the whole story. Some of the money covers the additional hole in the state deficit created by the governor’s repeal of the car tax. And the ad does not mention parts of Prop. 58 that allow the governor and the state to borrow for short-term cash flow or to borrow from various state-controlled funds.

Analysis: The ad emphasizes bipartisanship. The Democrat Westly and the Republican Schwarzenegger are working so closely together, it seems to argue, that they are finishing each other’s sentences. While the measure does have bipartisan support, it has lagged with Democrats in polls. Some liberal Democrats have argued that instead of borrowing, the state should raise taxes. Conservative Republicans who oppose the measure say they would prefer to see spending cuts. The measures are polling strongest among moderates, who are most likely to respond to the appeal. The ad also reinforces joint public appearances Schwarzenegger and Westly are making around the state, often in “swing” areas that are heavy in political independents.

While the governor and controller have talked up the “devastating” consequences to public services if the measures don’t pass, this ad stays positive and doesn’t mention consequences. “We have a positive message,” says Sipple, the ads’ producer. “We think that is the correct way to give information to voters.”

Compiled by Times staff writers Joe Mathews and Peter Nicholas

Los Angeles Times