Contract With California for New Jobs, Energy supplies and Investment

Guest Submission By Andy Caldwell, Executive Director, COLAB
Wednesday, February 18, 2009

It has been suggested by some in Sacramento that our Legislature needs the equivalent skills of a Captain Chelsey Sullenberger, the heroic pilot who landed his plane in the Hudson River. I take this to mean that the best Sacramento can hope for is a crash landing?

Carrying this analogy forward, I would maintain that unlike the wild birds that served to force the aforementioned crash, what the State of California has run into is a huge flock of trained homing pigeons, aka, special interest groups. These homing pigeons are trained to always come back for more. More money, influence and power. And for this reason, they have clogged the economic engine and undermined the structural and fiscal integrity of our once great State.

I would hope that instead of continuing our tradition of feeding the pigeons only to face additional crash landings in the future, we would do something altogether different. What we need is a Contract with California! A blue print for our State to follow that would serve in the context of our analogy as an emergency landing to clean out the engine of pigeon feathers and pigeon remains, and give us the opportunity to refuel our engines.

We need new jobs, energy supplies and investment to get us out of this slump.

In other words, let us rid ourselves of the things that are artificially draining our economy and begin to embrace business development and investment that will serve to raise revenue, not by raising taxes on existing businesses, but by generating new tax revenue.

Back in the early 1990’s we were in a recession that was adroitly analyzed by Peter Uberroth and a Commission he chaired. Their most apt diagnosis? “California was not suffering from a recession as much as we were suffering from self-inflicted blows to our own economy by our own government”. Things have only changed for the worse!

Let us not forget that the State of California was in dire financial straits while the California economy was still doing great! The only delay in the realization of this crisis was by means of phony budgets based on rosy predictions, massive debt deferral and sleight of hand.

It is time we address some real issues, regardless of how unpopular and politically incorrect they may be.

Here is my opinion as to what should be on the list:

1. Change the State Laws that affect pension obligations to public employees. Specifically, defined benefit pension plans must be eliminated as they are bankrupting us. Elected officials should have full control of retirement plan funds and related disbursements instead of retirement boards dominated by union members.

2. Agree to a sales tax hike only for a mere six months to give voters enough time to vote on a hard budget cap. If the budget cap is approved, we give them two additional years. But, we exempt auto sales from the sales tax. No income tax surcharge. No vehicle license fee increase. No increase in gasoline tax.

3. We repeal AB 32 and the Diesel Engine Rule. Unnecessary and unaffordable. AB 32 forces us to artificially constrain manufacturing and industry back to 1990 levels, when this is our best paying job sector. Diesel Engine Rule creates multi-billion dollar impact to construction, transportation and farming with limited benefit to public health. Defer instead to National Standards for compliance.

4. We reform CEQA. Have it apply to new projects only that extend urban boundary lines and services to rural areas. In other words, urban infill development becomes exempt. Also exempt all State approved/funded transportation and local government infrastructure projects.

5. Curtail new Waste Water Discharge Standards for new construction, septic systems and rural properties (farms and ranch lands). Complete overkill in terms of cost benefit. Let local communities figure out if they have a local problem and address it on a local basis.

6. Cut back authority of CA Coastal Commission. They should have jurisdiction in those communities that do not have an approved coastal plan. In jurisdictions with an approved plan, any appeals or challenges of projects can proceed to court.

7. Curtail State ESA provisions that give greater precedence to species over humans. Example given: No water will be cut off from urbanites and farmers in deference to listed species, especially water that is paid for via contract.

8. We open up State waters for oil and natural gas. Example given, we override the State Lands Commission and the Coastal Commission and approve the PXP slant drill project in Santa Barbara County that has the support of the entire county, including the environmental community. This project alone will add $3-5 billion to the State’s economy, with no adverse impacts. While we are at it, we also approve projects by Venoco in our county that will bring in billions more.

9. Eliminate prohibition against new nuclear power plants. Why continue to subsidize alternative energy supplies that do not pencil out and ignore the cleanest, most renewable and most potent form of energy known to man?

10. General Principles: Take a lesson from other States in order to learn how to be business friendly. Refuse to lead the country with new legislation that will only add to our economic misery. Invest in infrastructure. Reduce State mandates upon Schools, Cities and Counties. Restore funding to local governments and boards and downsize State government accordingly.