FA S T F O R W A R D :
Governor Davis had to take stands on the various bills crossing his desk during the recall campaign. He signed a bill allow drivers’ licenses for illegal
THE BUDGET CRISIS
immigrants although he had vetoed a similar bill in
OF 2008-09 AND
the past. Opponents charged that the governor was desperately seeking Latino votes. (And the legislature
BEYOND
quickly repealed the license law after Schwarzenegger took office.)
“Our elected officials in Sacramento are facing Davis signed a hastily-drafted employer-mandated
a budget crisis unseen in this state since the
health insurance plan (which voters subsequently
Great Depression, and it was entirely avoidable…
repealed in a 2004 referendum). Republicans charged
California’s future is in danger.”
that the Davis administration was signing off on
—Candidate Arnold Schwarzenegger during the 2003 recall campaign 7 9
state union contracts without obtaining sufficient pay concessions. Meanwhile, a court decision blocked sale of a pension bond without a vote of the people. And
“It’s abundantly clear that just because you change
Davis’ rollover bond mechanism was challenged in
governors you don’t change the financial condition of
court—as expected—by the Pacific Legal Foundation
the state.”
on constitutional grounds.
—Former Governor Gray Davis commenting on the 2009 budget crisis8 0
Anything that suggested the budget was not yet under control was unfavorable for Davis. Moreover,
On taking office, Arnold Schwarzenegger was in many
the unpopular car tax hike went into effect October 1,
respects the complete opposite of Gray Davis. He was
only a few days before the October 7 recall election.
ebullient, optimistic, and—of course —
After the recall succeeded and Schwarzenegger took
a celebrity, not someone initially elected, as Davis was,
office, the first official action he took was repealing
with a reputation as a competent, professional public
the car tax hike. Although as governor he periodically
administrator. But Schwarzenegger could be unfocused
defended that action, it immediately worsened the
with too many goals, albeit popular goals.
budget situation he inherited. And the car tax repeal continued to be an issue into the next budget crisis
Davis came into office focused on education. He
of 2008-09, when the car tax was again raised. But on
retained that emphasis as long as the budget was flush.
the night he won office in the recall, Governor-elect
However, Davis’ tendency to micromanage produced
Schwarzenegger promised the voters that “I will not
a variant of lack of focus—since it is impossible to
fail you, I will not disappoint you, and I will not let
handle everything once difficulties are encountered.
you down.”
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Thus, early warning symptoms of the electricity crisis were missed. And the evolving budget crisis of the early 2000s eventually overwhelmed everything else, despite early denials by the governor ’s finance director that anything was amiss.
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