Westly: If propositions fail, state will be broke by June
DOWNTOWN — Three of California’s most influential politicians converged at a Santa Monica hotel Thursday to endorse a pair of controversial propositions aimed at alleviating the state’s growing financial woes.
Gov. Arnold Schwarzenegger, flanked by U.S. Sen. Diane Feinstein and State Controller Steve Westly, told journalists that Propositions 57 and 58 are crucial to the economic future of California, adding he wouldn’t even entertain the idea of defeat on the March 2 ballot.
“I think that the picture of us three together... says it all,” said a beaming Schwarzenegger, with more than 50 journalists on hand at the Fairmont Miramar Hotel on Wilshire Boulevard. “This is the new spirit of California.”
The propositions call for establishing an $8 billion reserve fund and borrowing $15.2 billion to cover the state’s debts. They also would force the legislature to pass a balanced budget each year and forbid the state from using deficit bonds in the future. Both must pass in order to become law.
Poll results expected to be released today show 38 percent of likely voters supporting Prop. 57, with 41 percent against it. Fifty-two percent of likely voters support Prop. 58, while 23 percent oppose it. The poll was conducted by the Public Policy Institute of California — a private, nonprofit, nonpartisan think tank.
Many voters are evidently still undecided on the propositions. According to results, less than half know Schwar-zenegger sponsors both of them.
Westly said internal polls show an increasingly greater amount of people approve the propositions over time, as voters become more familiar with them. However, there is still concern that voters won’t realize both need to be passed in order to become law. Proponents also worry that the number of items on the ballot will be confusing.
When asked by a reporter what would happen if the propositions were defeated, Schwarzenegger, who analysts have said may have tied his chances of reelection with the budget proposal, responded, “There is no, ‘What if.’ I don’t think that way.”
“There is no, ‘What if.’ I don’t think that way.” — — ARNOLD SCHWARZENEGGER Governor of California
Opponents of the ordinance say it will cost each family in California more than $2,000 in lost services or potential tax hikes. They also question whether the packaged propositions will really do what their backers contend they will.
But Feinstein said there’s no feasible alternative.
If the propositions fail on March 2, the state will run out of money in June, according to Westly, which almost certainly would lead to a downgrade in the state’s bond rating and further financial chaos.
Feinstein, a California native and leading Democrat who has been a U.S. Senator for the past 11 years, pointed to the broad support for the propositions and said she is optimistic voters will support them. More than 130 groups have endorsed the budget propositions, including such ideologically disparate organizations as the Howard Jarvis Taxpayers Association, the AFL-CIO and the League of Conservation Voters.
“It has to be solved — and it has to be solved now,” Feinstein said.
Thursday’s meeting was the first time that Feinstein has appeared publicly with the Republican governor since he was elected, governor aides said. Westly and Schwarzenegger are co-chairs of “Californians for a Balanced Budget — Yes on Propositions 57 and 58.” They have appeared together in four town hall-style meetings — in Fresno, Irwindale, Walnut Creek and San Diego.
As he closed the meeting, Westly offered to make side bets with members of the media as to the fate of the propositions.
It’s unknown if there were any takers.
Originally published in the Santa Monica Daily Press print edition on February 20, 2004. Read the original PDF.