Capitol Alert

Democratic lawmakers and officials:

Bill Lockyer, treasurer:

"The Governor's proposal is realistic and provocative. The plan acknowledges that a balanced remedy of spending reductions and revenues is the best cure, that we would do more harm to our economy and families if we set fire to government, or treated taxpayers like ATMs. And it provokes a necessary discussion about how much responsibility and accountability for public services should reside in our communities. To prevent further damage to the State's credit rating and start restoring California's reputation, action by the Legislature and Governor must be timely and credible. It's time narrow interests took a back seat to California's interests."

Senate President Pro Tem Darrell Steinberg, D-Sacramento:

"The governor's proposed budget is complete and it is balanced. His budget asks the Legislature and the public to make some of the most difficult choices we have ever been asked to make. But as unappealing and painful as the governor's proposed budget is, the only thing worse is to allow this fiscal crisis to linger."

Assembly Speaker John. A Pérez, D-Los Angeles:

"The Governor's budget is the starting point of a responsible fiscal plan for California. I look forward to working with the Governor to approve a budget that will begin to eliminate our structural deficit and protect California jobs."

Sen. Mark Leno, D-San Francisco, chairman, Senate Budget Committee:

"As we give careful consideration to each of the governor's ideas, we recognize that difficult cuts have to be made in a way that spares the pain and suffering of our most vulnerable citizens. In order to prevent the worsening of our fiscal situation in the next few months, it is also critical to consider new revenue and thoughtful tax reform and ask voters to weigh in on what they want from their government and how to pay for it. It will take bold leadership to make the needed systemic changes, find additional resources and make targeted cuts to help heal California's budget, stimulate our economy, create new jobs and restore luster to our great state."

Assemblyman Bob Blumenfield, D-Woodland Hills, chairman of the Assembly Budget Committee:

"Brown's call for change doesn't hold anything back. His vision acknowledges that we are long past a debate about cuts and taxes. California government must be restructured in order to be more responsive and cost-effective. Brown is appropriately asking the people to be part of the solution. Moving forward, we must ensure that Californians are equipped for the challenge by confronting enduring budget myths. Most Californians think we can balance our budget only by eliminating waste. And most oppose cuts to the areas that make up most of the budget. These expectations don't match reality. The budget is more than a bunch of numbers on a ledger. It's about jobs and our economy. The Assembly Budget Committee will meet to review Brown's budget through this lens on Thursday. I look forward to working with him to ensure that this time of great challenges and sacrifice transforms California into an even better place."

Superintendent of Public Instruction Tom Torlakson:

"The Governor made good on his word to make tough decisions. Unfortunately, this budget extends the financial emergency facing California's schools. The Governor is correct in pointing out that our schools already have been hurt far too much by the $18 billion in cuts made over the last three years. We once led the nation in investing in our children and their future. Now, we're scraping the bottom of the barrel--with the largest classes, the shortest school year, and the fewest counselors of almost any state in the nation. This budget should sound the alarm for every Californian, and challenge us all to find a way to provide our schools with the resources that restore our state to its rightful place as a leader in public education."

Assemblyman Jerry Hill, D-San Mateo:

"Gov. Brown has proposed the first honest budget in years. While it includes painful cuts, the governor is committed to fully funding K-12 education if voters agree to maintain our current tax structure. Both parties have a responsibility to end their bickering and work with the governor to help California climb out of the deepest recession of our lifetime. The governor's proposal to move more government services from the state to local control is worthy of consideration. I am particularly heartened that he has vowed to provide state funding to run those services.

Controller John Chiang

"Governor Brown has proposed some ugly solutions to an even uglier situation, but history has shown that surrendering to gimmicks and delay only makes our problems multiply. It is a refreshing departure from past schemes that too often sacrificed long-term fiscal stability for band-aid solutions. While more work is required, this plan is an honest first step toward building consensus on how to best shape California's future. This plan is a good first step toward building consensus on how to best shape California's future."

Assemblyman Rich Gordon, D-Menlo Park

"Governor Brown's budget reflects the State's dire budget problem. I understand the concern that many will have about the depth of some of the proposed cuts. I share those concerns. However, the Governor's budget is balanced and contains no more tricks. As a result the cuts we face are real. ... These tax measures are not proposed lightly or without thoughtful reflection. However, we must evaluate this budget as an entire package and work towards a fiscally responsible California to ensure a better future for all Californians."

Assemblyman Wesley Chesbro, D-Arcata

"Jerry Brown has laid out a plan to put us on a road to a cure for California's chronic economic condition. This plan represents a starting point. It is now our job to work with the governor to heal the state's economic woes."

Assemblyman Marty Block, D-San Diego, chair of the Assembly Higher Education Committee

The Governor's budget proposal is a heavy dose of reality that asks for sacrifice from every area in state government - including a reduction in funding for the University of California, the California State University and the California Community College systems. ... These cuts underscore the difficult choices before us that must be made if we are to get our state back on the road to fiscal responsibility. Every cut, reduction and elimination represents a choice to the people of California regarding what services and programs they believe should be a priority for a government facing chronic budgetary problems I am pleased the Governor is giving the people the chance to decide between making additional cuts or maintaining continued revenue streams to keep schools open and provide important social services.

Assemblywoman Mariko Yamada, D-Davis

"I continue to be concerned about the deep cuts to social welfare programs that provide the safety net for people suffering job loss, disabilities, and poor health through no fault of their own, especially our children and the elderly. The dismantling of proven and cost-effective alternatives to institutional and emergency care, such as adult day health care, is counterintuitive to the goal of deficit reduction over time.

Assemblyman Roger Dickinson, D-Sacramento:

"There is much to dislike in these proposals, but they realistically suggest a path for the challenging road ahead. We have limited options to close this historic deficit. As we embark on the process to find solutions to this crisis, let us focus on the values that Californians' hold dear: education, health, shelter, and the opportunity to prosper."

Republican lawmakers and officials:

Senate Republican leader Bob Dutton, R-Rancho Cucamonga:

"Governor Brown's budget proposal contains difficult but necessary spending reductions, which Republicans have supported in the past as the best way to address our state budget deficit. Unfortunately, the governor's proposal is not a complete plan because it assumes voters will support major tax increases, but doesn't provide solutions if they reject them. If voters say 'no' to the tax hikes, as Republicans expect, it means a $10 billion budget hole come June. First things first! Democrats need to make permanent spending reductions and enact reforms that change the way state government operates. There's nothing in this budget to help stimulate the economy and create jobs. Senate Republicans believe higher taxes will further delay putting Californians back to work."

Assembly Republican leader Connie Conway, R-Tulare:

"Assembly Republicans stand united as the last line of defense for California taxpayers. There are not votes in the Assembly Republican Caucus to place the same tax increases that voters overwhelmingly rejected less than two years ago back on the ballot. Californians have sent a strong message at the polls that they want Sacramento to make government live within its means. Assembly Republicans are ready to work with the Governor and Democrats to achieve an on-time, balanced budget that respects the will of the voters."

Assemblyman Jim Nielsen, R-Gerber, vice chairman, Assembly Budget Committee:

"Governor Brown today presented his approach to closing California's $25.4 billion deficit. The next step in this process is setting priorities and finding the absolutely necessary functions of government. We must look at ways to maximize every dollar and spend no more than the state takes in. There's no doubt that difficult choices lie ahead, but working together I know we can find common-ground for reforms that make government more accountable to the people."

Sen. Sam Blakeslee, R-San Luis Obispo:

"This budget is troublingly similar to the failed proposals of the Schwarzenegger administration. Perpetuating the status quo without reforms is a prescription for continuing job losses and declining revenues. Instead of relying on the failed policies of the past we should move assertively to modernize the tax code, strengthen our competitiveness, and streamline government operations. I stand ready to work with Governor Brown to craft credible and sustainable solutions that move the state forward."

Assemblyman Jeff Gorell, R-Camarillo:

"While I applaud the Governor's no nonsense approach to budget cuts and generally support his $12.5 billion in cuts, I cannot support more than $8 billion in continued taxes. ... Without seeing all the details yet, I support the Governor's efforts to reform California's redevelopment program. While most people think this is a local program, in fact it is a state program managed at the local level. This has committed the state to billions of dollars a year in a mandated program that restricts both the State and local government's ability to meet basic services. If the numbers we have seen are correct, this element of the Governor's budget will return more than $1.5 billion over the next couple of years to local government for schools and law enforcement without hurting the development agencies ability to pay for existing bonded indebtedness."

George Runner, member, Board of Equalization:

"I applaud the Governor for proposing difficult spending cuts. But I can't support proposals to hurt private sector jobs through punitive tax hikes. Californians have already spoken on the issue of taxes by resoundingly rejecting every proposed tax increase on recent ballots. A special election to hike taxes is a waste of taxpayers' time and money. Certainly we have to make some hard decision and cuts are necessary. But if we make it harder for the private sector to create employment than this is the wrong way to go. Enterprise zones are California's only remaining public policy measure aimed at keeping private sector jobs in our state. Abolishing them would be irresponsible. Instead we should make the whole state an enterprise zone."

Sen. Doug LaMalfa, R-Richvale:

"The proposed cuts are real and do reduce spending, but simply taking a meat cleaver to the budget without examining the bureaucracy's dysfunction means we'll continue to face the same problems in the future. I'm also disappointed that the Governor's plan relies upon the very tax hikes that voters overwhelmingly rejected just a year and a half ago. Californians want government to look inward for solutions, not turn to taxes the moment things get tough. The real solution to the budget is for California to become a productive business-friendly state, and for that to happen we must remove government's boot heel from business's throat."

Sen. Bob Huff, R-Diamond Bar, vice chair, Senate Budget Committee for the 1st Extraordinary Session:

"California voters have shown no appetite for new taxes. They've been asked twice to raise taxes in the last two years, and rejected each attempt. First was the ballot measure to extend the temporary tax hikes by two years, and just last November the voters rejected an increase in the car tax for state parks. So, we don't think that voters will approve of the idea, which is why we're calling on both the Governor and the Majority Party to look at real, honest and permanent solutions that will reduce the size of state government and to live within the tax dollars already entrusted to us."

Jon Fleischman, FlashReport publisher, vice chairman of Southern California Republican Party

"While Jerry Brown campaigned for office with promises of doing things differently, the reality is that today he has demonstrated that he is just another tax and spend Democrat. To ask lawmakers to put what would be the largest tax increase in the history of California on the ballot -- and to have the hubris to ask working Californians in the midst of a recession to approve them, exhibits an amazing tone-deafness by Governor Brown. In principle it is unfair to increase taxes on California's families and businesses to offset decades of overspending by liberal politicians. As a practical matter, voters rejected these very same taxes proposed for a two-year duration (let alone five) just two years ago, and last November voters rejected ballot measures that would raise taxes as well. Brown assumes that voters are either dumb or gullible -- as he uses a 'Washington Monument' scheme to try to put a gun to the heads of the electorate. The fact remains that Californians are among the highest taxed people in the nation, yet that doesn't seem to provide enough tax revenue to feed the voracious appetite for spending of Capitol Democrats. The cynicism and disapproval that voters have with Sacramento politicians will only go up when news of the Governor's proposal of massive new income, sales and automobile taxes reaches them."

Sen. Tom Harman, R-Huntington Beach:

"Taxes and ugly cuts - as expected, there were no surprises from Governor Brown today. The $25 billion question is whether legislative Democrats will go along with the spending cuts. Some of these proposals are things Republicans have previously advocated but were rejected by the Democrats. So much of this proposal is based on voters approving the tax increases. These are the same tax increases overwhelmingly rejected by Californians before. I just don't see enough meat in this proposal to woo voters, already burdened with incredibly high taxes, unemployment and rising consumer prices, to jump at the chance to raise taxes. As far as I am concerned any conversation about revenue increases is moot until Californians see real, permanent structural reforms."

Local government:

John Tavaglione, president of California State Association of Counties, Riverside County supervisor:

"CSAC has long advocated for a balanced approach to dealing with the significant budget deficit. The Governor's budget proposal reflects a tangible acknowledgment that reform and revenue, along with deep cuts, must be part of the package. The question we will be working on for the next few days and weeks is whether this version of reform is workable for counties. The Governor's budget calls for a massive realignment of services to the counties, along with significant cuts to programs that support a basic quality of life for 38 million Californians. Funding for realignment hinges upon an extension of taxes over the next five years and is dependent upon a vote of the people. Realignment can only succeed if there are stable revenues to fund the new responsibilities being handed to counties. In our view, counties must be assured of ongoing revenues or the programs should revert back to the state."

John Shirey, executive director of the California Redevelopment Association:

"This budget proposal to eliminate redevelopment is more budget smoke and mirrors that will bring little financial gain for the State, but will cause widespread and significant economic pain in communities throughout California. It is another gimmick that will likely result in extensive litigation. ... Bottom line, the budget proposal to eliminate redevelopment will hurt California and cripple the local economy in cities and counties statewide. It is not a solution and will not work to solve the State's budget problems."

Neil McCormick, executive director, California Special Districts Association:

"The Governor made a sober, straightforward presentation today reflecting the
serious nature of our problems and his determination to deal with them head on. You can agree or disagree with him on different issues, but you have to give him credit for making thoughtful proposals aimed at restoring the fiscal health of California. Special districts are fully committed to working with the Governor and the Legislature to meet California's fiscal challenges and deliver its vital community services."

Doran Barnes, executive director of Foothill Transit and chair of the California Transit Association:

"We laud Governor Brown for keeping faith with voters who overwhelmingly approved Proposition 22 last November, requiring local funds to be used for local purposes, including for transportation programs and public transit. Facing a massive General Fund deficit, he smartly finds solutions for maintaining funding for public transit, state highways, and local streets & roads, while still working within the structure of Proposition 22 to deliver appropriate General Fund relief from available transportation sources. The governor's solutions acknowledge the vital role transit plays in moving our citizens to jobs and maintaining mobility in this tough economy. "

Business/industry groups:

Jack Stewart, president, California Manufacturers & Technology Association:

"Closing the budget gap will not be easy. We commend Governor Brown for his efforts to achieve a long term solution. Our dire circumstances stem from a poor economy and state policies that do not support new investment and hiring. It is projected that we will not recover jobs lost in the recession until 2016. That is too long to wait. Manufacturers urge state leaders to take steps to lower the costs of doing business and to make the regulatory climate more predictable and hospitable. California should lead the country out of the recession, not hold it back. A healthy economy is the best solution for the broken budget. We look forward to working with Governor Brown to make California an engine of job and wealth creation again."

C. Duane Dauner, president, California Hospital Association:

California hospitals lost $4.8 billion last year in treating Medi-Cal patients. The Administration's proposal to increase hospital copayments for the state's poorest residents will ultimately result in more bad debt incurred by hospitals. It is unlikely that most Medi-Cal patients will be able to afford this increased cost-sharing. As a result, hospitals will face greater losses when they treat Medi-Cal patients. Also included in the proposed budget is a recommendation that a six-month hospital fee program be implemented. CHA, as one of the co-sponsors of the original hospital fee program, supports a six-month hospital fee, from Jan. 1 through June 30, 2011."

Allan Zaremberg, president and CEO of the California Chamber of Commerce

"We appreciate Governor Brown's frank assessment of the situation California faces. As we delve into the details of what the Governor has proposed, we will need to carefully weigh the cumulative impact of the budget proposals against their impact on the economy. We must remain focused on California's need for continued investment in private sector job growth, since private sector job creation is the key to long-term budget solvency."

Bob Balgenorth, president, State Building and Construction Trades Council:

"Jerry Brown faces tough choices trying to bring this budget into balance. But his redevelopment proposal will significantly harm one of the state's leading job-generating engines, particularly for construction employees. Redevelopment activities support more than 304,000 full- and part-time jobs annually, including 170,600 construction jobs. At a time when unemployment in the construction sector is above 30%, we should do all that we can to stimulate jobs in this sector, not destroy them."

Labor unions:

Art Pulaski, executive secretary-treasurer, California Labor Federation:

"While Gov. Brown's proposal isn't perfect, it at least strikes a much-needed balance between cuts and revenues. Our state simply can't sustain a cuts-only budget if we're to have any hope of emerging from the current economic morass. While the proposed cuts are certain to inflict greater pain on those least able to endure it in this harsh economic environment, we're hopeful that Gov. Brown's balanced solution to the budget crisis signals a willingness to look at all options."

Lou Paulson, president of California Professional Firefighters:

"At some point, we have got to start unwinding the dysfunctional relationship between state and local government. The governor's plan starts us down that path by cutting out an $8 billion middle-man between local government and the taxpayers they are sworn to serve. Redevelopment agencies are not directly elected and are largely unaccountable, yet they control billions of dollars that are earmarked for developers and pet projects, rather than basic services. Right now, about 15% of property tax revenue is skimmed off into local redevelopment agencies. That's about $8 billion that can't go to schools, police, fire and other core services. We can't tell taxpayers that their fire stations and police stations are closing, but turn around and say there's $50 million going to build a new ballpark or arena. The governor's proposal doesn't take money away from these projects - it just means they have to be considered with every other priority of local government. The governor's plan restores an unprecedented level of local control - the kind for which local agencies have been clamoring for decades."

David Kieffer, executive director, SEIU California:

"It's time to stop playing games in California and get serious about a balanced approach to solving our budget crisis. Our state will not survive and recover if we do not come together to solve our problems. We cannot afford another year of gridlock and partisanship like we've seen in recent years. Instead, we need a cooperative effort on both sides of the aisle to restore the greatness of our state. Our top priority should be to restart job growth, but that will require that we get our state budget mess fixed. Doing so will be painful, and the sacrifices should be shared by all."

George Popyack, executive director, AFSCME Council 57:

"The state realignment is a very tricky piece of business. We've seen realignment before, it often means programs are put at the local level and the funding isn't there, so of major importance for us is that the funding for these programs as they go, if this passes, that the funding is there to ensure that the services are provided, that the level of quality of service - there's certainly a great risk that the quality will vary from city to city, county to county, so we want to make sure that both the quality and the funding is maintained."

Lakesha Harris, president of AFSCME Local 3299:

"UC is facing, at this point, a $500 million cut which would be devastating to the workers we represent. When you think of public employee, you hear a bunch of rumors about the 'rich' public employees, but our workers are on the verge of poverty. We just won a contract to help our workers get out of poverty, and this kind of cut devastates the work force. It puts us right back in poverty, which puts us back on state assistance. We did polling that showed that 80, 85 percent of our workers were eligible for public assistance two years ago. We tried to lift that, and now we're going back into that, which puts the burden actually back on the state. So the state has to pay, one way or another. We have to keep the workers working, out of poverty and paying taxes or we can put them back as a burden on the state - and the state is also cutting all the welfare programs that will help them."

Education groups and educators:

UC President Mark Yudof:

"This is a sad day for California. In the budget proposed by Gov. Brown, the collective tuition payments made by University of California students for the first time in history would exceed what the state contributes to the system's general fund. The crossing of this threshold transcends mere symbolism and should be profoundly disturbing to all Californians. ... Undeniably, the governor's hand has been forced. He has produced, as he calls it, a tough budget for tough times, and the university will stand up and do all it can to help the state through what is a fiscal, structural and political crisis. There can be no business as usual."

California Community Colleges Chancellor Jack Scott:

"These are difficult times for California and there's no way to avoid the pain of budget cuts. However, if our community colleges sustain reductions of this magnitude, we anticipate up to 350,000 students will be turned away next year. California's economy is highly dependent upon an educated workforce and it's the taxpayer who is short changed when colleges and universities turn away students. If just 2% more of California's population earned associate degrees and 1% more earned bachelor's degrees, the state's economy would grow by $20 billion. Those educated workers would generate state and local taxes of $1.2 billion a year and 174,000 new jobs would be created in California."

California Faculty Association:

"Any plan to fix our state must be based on genuine shared sacrifice involving all Californians, including those at the top. We are all in this mess together. It is time to address reform of California's tax structure, including closing corporate tax loopholes that have resulted in everyday Californians and small businesses paying more on their property and purchases while the largest corporate entities and highest paid individuals pay less."

Antonio R. Flores, President and CEO of Hispanic Association of Colleges and Universities

"We acknowledge the magnitude of California's budget and structural deficits. However, the magnitude of California's cuts to higher education risks damage to the dreams of Latino students for generations to come. We hope the Governor and Legislature can find ways to mitigate these cuts, particularly their impact on low-income and first-generation students."

Martha Fluor, president, California School Boards Association:

"We truly appreciate the Governor's attempt to work within the current economic situation while trying to protect K-12 education, but the reality is that schools have already been cut $18 billion, approximately $1,900 per student, and if temporary taxes are not extended to support education, the additional $2 billion in cuts that schools face are unfathomable."

Health and human services:

Anthony Wright, executive director, Health Access California:

"These cuts will deny medically necessary care, place greater financial strain on families, and turn back hundreds of millions of dollars in federal matching funds for our economy. While we appreciate Governor Brown seeking revenues to prevent even worse cuts, it's hard to overstate the severity of health cuts in the budget that will be felt directly by over eight million Californians, and for all of us who want our health system to be there for us when we need it."

Lydia Missaelides, executive director, California Association for Adult Day Services:

"We are disappointed but not surprised that Gov. Brown's budget eliminates the Medi-Cal Adult Day Health Care (ADHC) program. Over the last two years, Gov. Schwarzenegger also proposed elimination of the ADHC program, and both years the Legislature wisely rejected the idea as unacceptable, because of the severe cost shift to the state's taxpayers and its cost in human suffering. ... We have fought these cuts the last two years, and we will fight them again this year."

Darcel Harris, executive director of the California Black Health Network:

"Governor Brown's proposed budget reductions to Medi-Cal, CalWorks and other vital public programs and services will put further strain on an already taxed community safety net and exacerbate the myriad problems faced by underserved populations during this economic downturn. Decreasing provider reimbursement rates, increasing co-payments, limiting program eligibility, and reducing funds for child care are all actions that disproportionately affect the state's African American communities. The Black Health Network is committed to doing everything it can to help Governor Brown pass his revenue generating proposals to avert these devastating cuts."

Wendy Lazarus, Founder and Co-President The Children's Partnership:

"We understand the difficult choices facing this Administration, but protecting California's children and ensuring children have basic health coverage should be among the highest priorities for our state. These programs are critical to the health and well-being and future of California's children. The State must find ways to preserve children's health care. Even during the most difficult times, stripping hundreds of thousands of children of access to health coverage is not an acceptable solution."

Deena Lahn, policy director, Children's Defense Fund California:

"This budget proposes to continue the trend of doing less for our children each year, relinquishing responsibility for ensuring that the most basic needs of children are met. It is time to be honest about our policy choices and about their inevitable consequences: we spend far more on an inmate in prison than we spend on providing high quality schools, health care or child care to give a young child a decent chance in life."

Jean Ross, executive director of the California Budget Project.

"Protecting our core public systems and structures is essential for securing a prosperous future and paving the way for an economic recovery. Lawmakers and voters should examine the Governor's proposals in the context of what they mean not just for the next 12 months, but also five, 10, and 20 years in the future."

Taxpayers groups:

Jon Coupal, Howard Jarvis Taxpayers Association:

"Today, Governor Brown released a budget which proposes the largest tax increase in the history of all 50 states -- a tax on California's working families for 5 years during one of the worst recessions of our time. While we support his budget cuts and reforms to areas such as redevelopment agencies, we are perplexed that his proposal does not include a single mention of the largest growing disaster facing California - the unfunded Pension crisis. And, although Governor Brown says this is a 'temporary tax,' history has proven that Sacramento politicians regard no tax as temporary."

Californians Against Higher Taxes:

"Californians Against Higher Taxes will analyze all proposals for revenue enhancements to determine if they have an adverse impact on California's economic recovery and the creation of jobs. The Coalition looks forward to working with the legislature and the administration to ensure that any budget solutions that increase state revenues are not detrimental to private sector job creation. Additionally, we appreciate the Administration's proposals to seek either a two-thirds vote of the legislature--in keeping with the language of prop 25--or a vote of the people to increase revenue.

Government reform groups:

Nicolas Berggruen, founder of the Think Long Committee for California

"California clearly stands at a tipping point for long-term reform and we all have a profound duty to engage in this process and move this state forward. I personally applaud Governor Brown and Senator Steinberg's leadership here and we're excited to work with them in the months ahead."

California Forward:

The governor's 2011-12 budget is a good start, but the final document must include a broader discussion of budget reforms that will increase transparency and accountability - and help restore public confidence. .... If part of the solution requires Governor Brown to move forward with an initiative encapsulating his new budget priorities, then California Forward encourages the Governor to take these and other reforms to the voters and ensure we all have a voice in moving our state forward.

Some statements edited for brevity.