California gubernatorial candidates say they could break budget gridlock

As the California Legislature set a new record for inaction on the state budget Thursday, both major candidates seeking the governor’s office used the opportunity to portray themselves as best equipped to break the gridlock.

After appearing before a group of women voters in Anaheim, Republican Meg Whitman ridiculed lawmakers for failing to come up with a spending plan more than two months past the start of the fiscal year, saying that if she were elected, she would veto any legislation not related to government spending, job creation, education and public safety. Earlier this week, she said California has “one of the most dysfunctional state governments in the country.”

“It’s irresponsible,” she told reporters after her appearance. “This is a crisis, and we simply can’t run the state this way.... Soon, we’re going to have to give IOUs to vendors. We must start this process much earlier.”

The hour-long event was Whitman’s first aimed at women, although the candidate has typically avoided focusing on her gender despite being the first female GOP gubernatorial nominee in California history.

“Women have decided every single election for the last 20 years, and we’re going to decide this one,” she said, before urging the hundreds of supporters in attendance to join her MEGaWomen coalition and sending them on their way with green T-shirts decorated with her stylized poppy logo.

She trumpeted her plan to cut state spending by billions, including the elimination of 40,000 workers, and called Democratic rival Jerry Brown’s description of his own fiscal record “the ultimate fairy tale.” On the heels of releasing his own budget plan, Brown returned the favor, launching a TV ad mocking Whitman’s ideas, without using her name.

“Our state is in a real mess, and I’m not going to give you any phony plans or snappy slogans that don’t go anywhere,” he says in the spot, speaking directly to the camera. “We have to make some tough decisions.”

Thursday marked the longest period ever without a budget being sent to the governor’s desk. Democrats and Republicans are deeply divided on whether to raise taxes or cut spending to close the state’s $19-billion deficit, and the California Senate’s leader has suggested that the stalemate could continue through the November election.

Both gubernatorial campaigns are seeking to capitalize on public frustration over the state’s finances and on the abysmal popularity of the Legislature and Gov. Arnold Schwarzenegger. In recent days, Whitman has chided Schwarzenegger for visiting China on a trade mission despite the lack of a budget and said Thursday that there has been a “vacuum of leadership on this issue.”

Brown and Whitman agree on a few principles. Both want to start the budgeting process immediately after the election, not in January when the governor traditionally submits a plan. They say they would meet with lawmakers frequently and fight for legislation that would suspend lawmakers’ pay and per diems if they fail to meet the budget deadlines.

Both candidates also support streamlining government bureaucracy, reducing prison healthcare costs, winning more federal dollars from Washington — in part to offset the costs of incarcerating illegal immigrants — and reducing some environmental regulations to expedite building projects.

This week, Brown released a plan that includes many ideas put forth by Republicans in the past, including vetoing legislation that lacks a means to pay for associated costs and proposing a constitutional amendment that would require future ballot initiatives to identify funding sources.

Whitman’s campaign called the proposals “nothing more than smoke and mirrors and a blueprint for raising taxes” and said the plan contradicts Brown’s record as governor. “He is now supporting principles he had previously opposed, demonstrating once again why he’s just another Sacramento politician Californians can’t trust,” said spokeswoman Andrea Jones Rivera.

For her part, Whitman has focused on cutting $15 billion from the state budget by reducing the state workforce, reforming the pension and welfare systems, and identifying waste, fraud and abuse in government. At the same time, she has proposed a series of tax cuts that she says will stimulate the bleak economy.

Appearing on KGO-AM (810) on Thursday, Brown singled out Whitman’s plan to eliminate the state capital gains tax, saying it would deepen the deficit by at least $5 billion.

“This is one of the grossest conflicts I’ve ever seen in a campaign, where a key economic plank is to enrich herself,” he said. “And she’s already a billionaire.”

Whitman’s campaign said the tax cuts would be offset by her reductions in spending and the revenue that credits would generate.

michael.mishak@latimes.com

seema.mehta@latimes.com

Mishak reported from Sacramento. Mehta reported from Anaheim.