Published: December 19, 2008
Governor Schwarzenegger Holds Press Conference to Discuss State Budget
Editor: Alan Gray, NewsBlaze
Transcript of Governor Schwarzenegger Holding Press Conference to Discuss State Budget
At 4:15 p.m., Thursday, December 18, 2008, Governor Arnold Schwarzenegger held a Press Conference, in Room 1190, State Capitol, Sacramento, CA.
GOVERNOR SCHWARZENEGGER:
Good afternoon, everybody. Well, we had a wonderful, happy menorah lighting, right? But we had a terrible budget that they sent down to me and so, therefore, I will not sign the bills that were sent down to me.
I was very disappointed. I thought that when we negotiated that we negotiated a very balanced kind of a compromise where we agreed to raise revenues and increase revenues and also make the necessary cuts and also have a very, very strong economic stimulus package, or recovery package, right along with a bill that will help people stay in their homes for an extra 90 days, those that have to go into foreclosure. And really, the whole idea was that we help the people as much as possible in these very terrible times.
Gov. Schwarzenegger Holds Press Conference to Discuss State Budget
Photo: Peter Grigsby, Office of the Governor. |
But this proposal that they have sent down and this package that they are sending down does really only one thing and this is punish the people of California. We are asking the people of California, they are saying, you pay more fees, you go and we make the cuts and you will go and have to suffer the consequences of those cuts. But we are not willing to look inside government and make the necessary changes so we can create a stimulus package, an economic stimulus package and an economic recovery package so we can put people to work and have public-private partnerships and make the necessary cuts in all of those things.
So it fell short on every single level. I thought that when they were talking about that they can't negotiate with the Republicans, that they're not serious - I remember in one of the meetings I said to myself, well, let's give them the benefit of the doubt and let me negotiate with them and work something out and do a revenue package that does not increase taxes but just fees. But we did that, we negotiated and we negotiated. And I think that the special interest groups were just more powerful again and convinced them to turn the clock backwards and that's exactly what they did.
And so I cannot sign this. Maybe they have done everything they could, but I think that they should stay here, work some more on this budget. I'm willing to stay here and I don't think that anyone should go and celebrate Christmas, none of the legislators and have people out there suffering. I think that the legislature owes it to the people of California to solve this problem before Christmas, so I will urge them to stay here.
And so anyway, if you have any questions about any of this, please feel free.
QUESTION/ANSWER:
QUESTION: More specifically, Governor, what would you like to see in this thing that's not there?
GOVERNOR: Well, we made it very clear what our definition of an economic recovery package is. We've got to go and have public-private partnerships. We've got to go and -
QUESTION: Did they have those?
GOVERNOR: Well, read through it. You see, that it is one thing, when you say economic recovery package. But then read through it. It actually doesn't do anything and it makes it more difficult, actually, to do certain projects. And we will give you a briefing on the details - Will Kempton can take you through the infrastructure package and all of those kind of things. They have not at all addressed the CEQA. They have not at all addressed the public-private partnerships. They have not addressed at all that we can go and - as a matter of fact, they made it tough, that we can lay off people. They even said that we have to ask labor if we can have the furloughs that we recommended.
I mean, think about all of those things. They have not given us anything to keep the people in their homes for 90 more days. In every area that you look, it was all about - you know, they call it economic stimulus, but then there's nothing there. They call it CEQA reform, but there's no CEQA reform. It makes it actually more tough to build. So they were really not sincere and serious about this whole thing. And it's again one of those things, I think, that they have to get to the cliff and fall off in order to really take this seriously.
QUESTION: Governor, the Treasurer said in a statement earlier that if you rejected it, it would leave us, "In even worse shape tomorrow than we are today." And there are also Democrats who said you shouldn't reject it just because you didn't get everything you want. So can you talk about what condition the state is in?
GOVERNOR: The state is in a terrible condition and I think that if the legislature continues not acting on these problems that we have, I think that, as I said, we are going towards a financial Armageddon and a fiscal Armageddon. And I think that the whole country is looking at the state now and saying, you know, this legislature is dysfunctional.
QUESTION: Governor, what's your take on the claims that the tax increase method used today is illegal, or unconstitutional?
GOVERNOR: Well, I always made it clear that I don't get into those kinds of debates. I let someone else do that. To me what is important is that we raise the revenues that we need, because we need extra revenues. And what's also important is that we make the necessary cuts. But what they have done is exactly the opposite. They cut the cuts down and they increased the revenues that we were negotiating.
So it's like - you know, it's amazing to me to see that. And now I understand when Republicans say they say that they are serious about negotiating, but when it comes down to the language itself, that's where it will fall apart. And that's exactly what happened this time.
QUESTION: Governor, Darrell Steinberg said that he talked to you last night or the night before and the way he characterized the conversation it sounded like you guys were on the same page. What happened?
GOVERNOR: First of all, let me just say that from day one I always made it clear to Senator Steinberg and also to Speaker Bass that I will be willing to sit down with them and negotiate. But it is clear that I need my, exactly what I recommended, economic recovery package and that I need also the one that helps people stay in their homes if they have a problem with foreclosure. And also, that we have to go and do the kinds of things, the kind of cuts that we recommended and also the fees that they have proposed. Let's stay with that, I said. Put this to bed, write it down, work with our team.
And we negotiated and sat down and they always wanted to reduce the spending and they always wanted to reduce the economic recovery package. And I said I would not sign the budget - "I just want you to know, I don't want you to be upset about this now." I said, "If you don't do exactly what we have proposed and if you try to water it down, it is not an economic recovery package. It's just a bogus thing that just makes it appear to the people that we are doing something to bring back jobs." I said, "But I want to create 200,000, 300,000 jobs immediately," not wipe out 200,000 jobs, which they just have done. So that's what I want to do.
So I made it very clear to the senator that I will not sign if he starts moving things around and changing everything. I also made it clear to him, I said, "Okay, if you cannot do and if you need something for later for negotiations with the Republicans when it comes to the meal and rest period, let's leave that off for right now. I'm more than happy to compromise." And also the flex time. I said, "I'm more than happy to compromise on that," I said. "But leave everything else intact."
And obviously, they didn't. Because they thought that, you know, I'm going to sign it, that they were going to put the pressure on it. I could see what was going on the last few days. You know how they had the outsiders from the Democratic Party attacking, like Perata and Mulholland and all those guys making their statements. I know what's going on out there. It was very clear that they thought they were going to put the pressure on us.
Let me tell you something. The only pressure that I feel is not from the legislators. The pressure I feel is from the people. We've got to act on behalf of the people. And what we have to do is, we have to create jobs as quickly as possible, stimulate the economy, keep people in their homes and make sure that our economy comes back and that we don't go out and punish people with extra fees and taxes and all those kinds of things, punish them with cuts in various different programs and not do anything as a state.
I mean, the legislature is not even willing to go and make cuts in their programs. And in their office, 3 percent last year, when everyone else took a 10 percent haircut. So I think that it needs a lot of work here in this building still.
QUESTION: Governor, Senator Steinberg said that they got the job done, he says you should take down your sign. Does this in any way open you up to criticism that they gave you a package that could have solved an $18 billion hole and that you chose to veto it?
GOVERNOR: I know he said, "We acted; the Governor should take down the sign." There is acting and there is acting. Let me tell you something, that was terrible acting - terrible acting. So the sign will not come down. The sign will stay there and I hope that they go back to the drawing board and take this more seriously rather than playing games. Thank you very much. Thank you.
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