February 2009 Contra Costa Council News and Events

Dan Borenstein, left, moderates a CCUSA panel with former legislators (from left) Willie Brown, Keith Richman and Joe Canciamilla.

--Photo by www.StahlbergStudios.com

Focus on state's economic crisis offers another lively exchange at CCUSA 2009

While discussions at the Contra Costa Council's Contra Costa USA event on January 29 did not solve all of the governance issues facing California, the conversation went a long way toward clarifying what is wrong with our government and how it might be fixed.

"The speakers challenged our audience to consider out-of-the-box solutions to the budget and governance crisis facing California, a very timely topic that stimulated energetic discussion," said Council Chairman of the Board Ed Shaffer. "Willie Brown especially helped illuminate the current dysfunction in Sacramento. This is why the Council holds this annual event--to bring the County's best and brightest business leaders and public officials together to tackle tough issues and recognize common interests."

The 23rd annual day-long conference drew 250 people for the day program and 450 for the dinner presentation at the Concord Hilton. In addition to panel discussions and the evening keynote by George Will, an array of exhibit booths and tables completed the offerings. Exhibitors and organizations--ranging from Opportunity Junction to John Muir Health--provided information and promotional items for those attending (for a full list of event sponsors, please see below).

While perhaps not a "battle of the Wills," three Wills--author and political columnist George Will; political satirist Will Durst; and former San Francisco Mayor and legendary Speaker of the California State Assembly Willie Brown--all offered humorous and sage perspectives that carried the discussion forward.

A failure to budget

Following the barbed but funny warm-up by comedian Durst, the first panel, titled "The California Budget--A Failed Process," featured Jim Mayer of California Forward, David Plank of Policy Analysis for California Education, Julie Meier-Wright of San Diego Regional Economic Development Corporation; and Dwight Stenbakker of the League of California Cities. Panel moderator was Mark Curtis of MarkCurtisMedia.com.

Jim Mayer opened the conversation with a description of the reforms for a new budget system being offered by the California Forward organization, whose stated mission is to transform state government through citizen-driven solutions to provide better representation, smarter budgeting and fiscal management, and high quality public services . . . "Legislators need to link policy decisions that involve money and how to pay for them," said Mayer. He noted that this "pay-go" requirement, if combined with a multiyear budget cycle, performance metrics and a revamped legislative process, could lead to more consensus and legislative oversight.

David Plank noted the state needs substantial education reform and requires more resources, not less. The budget is bad news for schools because it exacerbates structural problems. Dwight Stenbakker observed that the volatility in the state budget process completely interrupts the ability to plan for services. Local government that is transparent and accountable, and is focused on delivery of services, "is the cornerstone of democracy in many ways," he said.

"Municipal government pays a heavy price when the state falls short," agreed Julie Meier-Wright. She noted that personal income tax is 53 percent of the state budget, a highly volatile tax category, with top wage earners paying 88 percent of that tax. She challenged business leaders to identify ways to make the hard decisions being discussed, and praised California's entrepreneurial economy.

When asked by Curtis whether term limits have made any difference in the decision-making process with regard to the budget, most panelists were negative. While term limits had some good impacts "and some change in term limits is part of the solution," less expertise is being brought to bear," said David Plank. "Term limits was largely a mistake," said Meier-Wright, noting that Prop. 11 "is equally bad" and alienates people who might otherwise be involved.

An audience member asked about the structural limitations through the initiative process, which leaves legislators with little control and ultimate decisions getting made by the "big five" (the governor and four top legislators) behind closed doors. "That's an accurate perception," responded Jim Mayer, noting that in the short term, a lot of the budget is locked in, but over the long term, all of those commitments can be revisited. The challenge is that the public doesn't want to limit their authority at the ballot box until they can trust the Legislature to do its job.

A matter of term limits

A second panel, moderated by Dan Borenstein of the Contra Costa Times, titled "In Retrospect--Recommendations for the Future" featured former legislators Willie Brown, Joe Canciamilla and Keith Richman. Brown opened the discussion with criticism of the current Legislature, which he said once comprised people who understood the rules. "I do not think the same environment exists in Sacramento today." He noted that term limits have robbed legislators of the opportunity to develop any relationships around subject matter or personalities.

Keith Richman, who served in the State Assembly from 2000 to 2006, said that legislators then solved problems in constructive ways, but sometimes had to do things in secret so there would not be reprisals. He said current representatives in both parties are unwilling to break out of special interest groups. "We need to get to a representative democracy that will represent people, not special interests," he observed, suggesting that a constitutional convention was also likely to be controlled by the same groups. Richman threw out the concept of a citizens' assembly wherein several representatives are selected from each district, similar to how a jury pool is formed.

Joe Canciamilla, who was a member of the Assembly during the same years as Richman, said the legislative environment got markedly worse during his tenure, with early camaraderie quickly disappearing. He noted that the interest groups behind the "big five" settle the budget and have the dominant say, partially as a result of term limits and the abdication of leadership. "We need to take the money back from Sacramento . . . to evaluate programs and decide what works and what doesn't."

Willie Brown said he would love to have had Richman and Canciamilla in "my house." "We had the opportunity to deliberate and come forward with a result that reflected the consensus that a democracy requires." He said, "the Obama movement is dramatic in its implications; it is not rooted in partisanship." Regarding the question of majority approval of the budget, Brown observed, "It's amazing that you can impose 2/3 approval with only a majority vote." The session on the budget should be joint session of both houses, with all provisions written on the assembly floor. I always maintained the budget was a neutral document from day one, he added.

Exploring a new vision

Following lunch and time for exhibits, a third panel, "A New Vision for California Governance" featured Sunne Wright McPeak of the California Emerging Technology Fund and Thomas McKernan of AAA of Southern California and co-chair of California Forward. McKernan postulated that California is governable while also unique. "We're going to have to figure out how to solve our own problems and our own challenges," he said, adding that the current crisis is driving middle class jobs out of the state. He noted that California Forward does not have all the answers but is trying to get a broader group of citizens involved in the process to effect change.

"Government is in organizational inertia," said Sunne McPeak, adding, "there are more than enough people in this room to change California. I know we have the wisdom, the experience and the will. It needs to become a movement." Thanking the Council for its work in advocating for improvement in many areas, and "hanging in there with Delta Vision process," McPeak said that she is confident that California can be governed and Californians want the opportunity to be engaged.

In response to a question about the new economy being diversified, McPeak and McKernan agreed that diversity is a goal. Learning about each region's strengths is important, and there is a need to recognize agriculture, the implications for water, etc., said McPeak. We have to have a more stable environment so business people can predict what's (going to come), noted McKernan. He suggested the best way to help may be to get out of the way and grease the skids for business to do its part.

Will he or won't he?

Political pundit George Will began his keynote presentation following dinner by talking about his favorite team, the Chicago Cubs ("any team can have a bad century") and finished by responding to a question about newly elected President Barack Obama ("I think he does want to work across the partisan divide more than has been possible in the past" . . . but he is going to make Washington worse-because the bigger government gets, the more people will spend money to influence it.).

He discussed George Bush, Amtrak ("the federal government can't run it"), Iraq (government thought it could run that) and the subprime loan crisis (a pretext for people in Congress to do what they would have done anyway . . . where government sets foot, it never seems to withdraw it), the elderly ("I am not against the elderly. I am the elderly."), social security and more.

Will also asked questions, among them: Why are we trying to kill the innovative capacity of the American pharmaceutical industry? He decried the fact that in a country where John F. Kennedy appointed a President's Council on Physical Fitness, 40 percent of schools have eliminated recess. He said that Americans need to decide what the U.S. is going to be: a country that gets things done or a country that stops doing things.

CCUSA aired on CCTV (Comcast channel 27 and Astound channel 32) on Thursday, February 12, at 6 p.m. and Friday, February 13, at 10 a.m. For additional air dates, please visit CCTV's program guide.

The Council thanks all CCUSA sponsors, including Chevron (title sponsor); Contra Costa Times, John Muir Health, Morrison & Foerster, Shell Oil Products, Wells Fargo (major sponsors); Allied Waste Services, Citibank, City of Concord, Comcast, ConocoPhillips, First Republic Bank, PG&E, San Francisco Business Times, Sunvalley Shopping Center, The PMI Group (sustaining sponsors); AAA of Northern California, Nevada and Utah, Delta Diablo Sanitation District, Foley & Lardner LLP, Miller Starr Regalia, Mirant LLC, Nossaman LLP, Parsons Brinckerhoff and The Mechanics Bank (contributing sponsors).

We also thank supporting sponsors, AlphaGraphics, Walnut Creek; Archer Norris and Eichleay Engineers Inc.