The Colossus of Sacramento
BARNES, FRED
The Colossus of Sacramento Schwarzenegger takes care of business. BY FRED BARNES Sacramento CALIFORNIA GOVERNOR Arnold Schwarzenegger's political -/clout continues to grow. Having won landslide...
...California voters have responded enthusiastically to Schwarzenegger's call for bipartisan solutions to their state's fiscal and economic problems...
...Absent agreement on worker's comp legislation, "there's a point in time when we decide we've got to go to the ballot," says Arduin...
...House seat aired a TV ad that showed a picture on his desk—not of his wife and kids, but of his friend Arnold...
...Having won landslide victories this month on two ref-erendums, he is now whip-sawing Democrats on his latest agenda item, reforming the state's out-of-con-trol worker's compensation system...
...After all, she is known, " from her work with other Republican governors, for being exceptionally skilled at slashing spending...
...In fact, the new budget Schwarzenegger unveiled in January proposed $11.5 billion in cuts and no tax increase...
...And Schwarzenegger has demonstrated he knows how to win a referendum...
...He'd become one of us," says Senate Republican leader Jim Brulte...
...Allies of the Republican governor were on the steps of the California capitol last week, signing petitions to get a referendum to overhaul worker's comp on the ballot in November...
...They have every reason to feel that way...
...And she was praised by the legislature's leading Democrat and foremost liberal, John Burton...
...One proposition—to sell $15 billion in bonds to avert a tax hike—attracted less than 40 percent support in polls several weeks before the vote...
...It would repeal the law passed last year that requires businesses with 50 employees or more to provide health insurance to employees...
...More victories seem likely...
...It's on worker's comp that Schwarzenegger's political prowess comes heavily into play...
...They're fearful that if he endorses the proposition, the health insurance mandate is doomed...
...Given Schwarzenegger's popularity, Democrats don't feel safe obstructing his agenda...
...But Schwarzenegger campaigned hard for it, with a whirlwind of personal appearances and TV ads...
...A Republican legislator running in the primary for a U.S...
...Before the budget is resolved, Schwarzenegger may reach a deal with Democrats on worker's comp...
...Just four months in office, Schwarzenegger is on offense...
...Republican legislators are in awe of him...
...And now, after the success of Schwarzenegger's two propositions on the March 2 ballot, his position is stronger than ever...
...Democrats will have enough trouble combating a separate proposition that's already made it onto the November ballot...
...He probably won't have to buckle...
...When Schwarzenegger came to office last November after winning an impressive victory in the special recall election, it was assumed that governing with an overwhelmingly Democratic legislature would be difficult...
...The governor has said, "A tax increase would be the final nail in California's financial coffin...
...Fred Barnes is executive editor of THE WEEKLY STANDARD...
...Nonetheless, Arduin's nomination was approved 5-0 by a Senate committee last week...
...With his dual strategy, the new governor has given Democrats an unenviable choice: Either retreat on worker's comp, now widely viewed as a job-killer in California, and agree to a compromise acceptable to the governor and most Republicans in the legislature, or face Schwarzenegger in a referendum this fall that could approve even more sweeping reform...
...Schwarzenegger wants to slash premiums—California's are the highest in the nation—as part of his "Sell California" strategy to attract jobs and businesses to the state...
...Democrats fear dealing with him, but they fear even more what might happen if they don't deal with him...
...Democrats are on defense...
...Democrats, Burton especially, would love to force Schwarzenegger to swallow a tax increase to get a budget passed...
...His negotiations with Indian casinos should produce more revenue soon...
...And since no Republican legislator would dare back a tax boost Schwarzenegger opposes, Democrats wouldn't get the two-thirds majority required to raise taxes anyway...
...If he yields, Republicans believe he would be seen by voters as no better than the pols here...
...But they know if they cooperate, the bipartisan agreements will be mostly on his terms...
...It's been easy...
...Not surprisingly, Democrats are inclined to seek a compromise and avoid another referendum battle with the governor...
...Democrats are bound to dislike any reform package the governor favors...
...When Schwarzenegger picked Donna Arduin as his finance director, Republicans worried she might not be confirmed by the legislature...
...The second proposition (mandating a balanced budget) got 71 percent...
...Inside the capitol, Schwarzenegger was negotiating with Democrats to get a tough reform measure through the legislature...
...The proposition won with 63 percent...
...So far, Schwarzenegger hasn't taken a position, and Democrats don't want to goad him into one...
...But the alternative is a Republican-written proposition that would be all the more devastating to the current system...
...The new Democratic assembly leader, Fabian Nunez, is already talking about a budget with no new taxes...
...In recent years with Democrats in total control in Sacramento, premiums paid by businesses have tripled, further adding to the state's reputation as hostile to business...
...When he drops by their meetings, they stand up as if royalty has entered the room...
Vol. 9 • March 2004 • No. 27
