COMMENTARY
California still faces daunting problems

By John Griffin

Honeymoon seems the best word for much of California these days, judging by one of our regular visits to the San Francisco Bay area. And, meanwhile, in Hawai'i ... ?

California Gov. Arnold Schwarzenegger, who was elected in October after the recall of Democrat Gray Davis, has sky-high approval ratings. AP library photo

In contrast to previous visits, the atmosphere and the news were more upbeat, despite the ominous developments in Iraq and echoes of the presidential campaign.

Schwarzenegger, the Republican actor and political neophyte who was elected in October after the recall of Democrat Gray Davis, has been getting great early reviews nationally as well as at home.

The New York Times, which was a vocal doubter of this "accidental governor" early on, recently editorialized that he "has ended years of paralysis in the California Legislature and delivered on a string of campaign promises, like winning public approval for a $15 billion bond issue and reforming the state's hugely expensive workers' compensation system."

Other good moves have followed as Schwarzenegger shows unexpected skills for political compromise. And that, of course, has invited comparisons with Ronald Reagan, another actor who served two terms as California governor.

Even there, Schwarzenegger has come out well. Journalist-author Lou Cannon, Reagan's acclaimed biographer, recently wrote that the Gipper was suspicious of legislators after taking office in 1967 and didn't really negotiate until his second term.

In contrast, Cannon said, Schwarzenegger "has been transformed into a master politician, wheeling and dealing with the Democratic-controlled Legislature and pulling off a string of surprise victories. He has also been able to negotiate with many constituencies historically leery of Republicans, including the California Teachers Association, the trustees of the state's two university systems and the public employees' unions."

Vast challenges still remain in a California government that needs fixing (discussed later in this column). For example, that $15 billion bond issue is like consolidating one's credit-card debt — putting off problems in hope of later economic improvements.

But for now, Schwarzenegger enjoys sky-high approval ratings as he has charmed both the public and usually cynical Sacramento pols.

Democratic Mayor Newsom's story is less dramatic and more controversial six months after he succeeded master wheeler-dealer Willie Brown.

He's internationally famous now for deciding in February to grant marriage licenses to same-sex couples — an issue still being played out in the courts after thousands of such weddings were performed.

Newsom, 36, is no political newcomer. He comes from an old Democratic establishment family and was elected three times to the San Francisco Board of Supervisors. He also has been successful in the wine and restaurant businesses.

In the election battle for mayor, leftist critics suggested Newsom was a kind of Democratic George W. Bush, well-born and wealthy, a former playboy helped along by family friends and business ties.

In any event, Newsom has emerged as a hands-on mayor tackling the city's tough problems, including seeking a minimum-pain solution to the toughest one of all, homelessness.

The San Francisco Chronicle this month praised his first budget proposals, which feature both government layoffs and new taxes, saying: "The package asks labor, business and average taxpayers to share the pain in plugging a $307 million shortfall."

Coming budget battles will be crucial for both Schwarzenegger and Newsom, two moderates doing well in a diverse electorate notable for political extremists.

And that is all the more so because California remains a virtual nation-state of 35 million people, full of contrasts and paradoxes.

On one hand, this huge state remains a great economic success capable of reinventing itself. Its annual gross state product of $1.4 trillion makes it the sixth-largest economy in the world. Los Angeles County alone would be the 16th-biggest economy in the world, ahead of Russia.

Yet contrast that with these statements from a recent 16-page survey by The Economist magazine:

"The underlying structure of Californian government is rotten — unaccountable, capricious, counterproductive and deeply undemocratic. ...

"In terms of party politics, the state has been in gridlock for some time. The Democrats, heavily reliant on the public-sector trade unions, will not consider reform. The Republicans, for their part, have clung to the myth that disdain for government is strength — the flip side of the rugged individualism that has powered the economy."

Critics trace many of California's urgent governing problems back to the 1978 passage by voters of the infamous Proposition 13 initiative. With good rightist intentions, it cut and partly capped property taxes, the main revenue source of local governments.

Prop 13's "success," in turn, prompted a tidal wave of other initiatives, most often financed by moneyed special interests of the right and left, to not only direct but sometimes hamstring government. Direct democracy often got hijacked.

Responsible government — and California's once-hailed public education system — have suffered in the process. The Golden State's public infrastructure has not kept pace with its economic expansion, a worry to those Californians who look to better educating today's youth (and incoming immigrants) and to meet challenges from other states and countries.

In fairness, California is not alone in this mixture of outdated systems, political opportunism and costly, dysfunctional government. It is just a leader in bad habits, as, paradoxically enough, it also has been a leader in an expanding American dream.

The obvious challenge is to fix the governing system without harming economic freedom and expansion, all the while promoting more democracy. But even reforming Proposition 13 remains a no-no for Schwarz-enegger and many others.

So as one enjoys California's upbeat atmosphere today, you can also wonder how long the honeymoon feelings will last in the face of both the underlying problems that need attention and this year's special political feelings.

Comparing states so different is difficult and often impossible. Yet, since returning from California, I have wondered how things might be different here had Republican Gov. Linda Lingle and the entrenched Democratic Legislature been different kinds of people in facing Hawai'i's economic and educational problems over the past two years. This election year, their short honeymoon seems far away.

Still, if our improving economy is distant from California's regenerating dynamo, one also might feel that government here, with all its problems, is as good or better than California's and that of many other places on the Mainland — and, sadly, that's still not good enough.

John Griffin, a frequent contributor, is former editor of The Advertiser's editorial pages.