Governor Jerry Brown

(February 2, 2011) In his State of the State address Monday, Governor Jerry Brown again urged the Legislature to act on his budget proposal. He called for the two parties to work together to make the necessary budget cuts and send a package of tax extensions to the ballot for voter approval.

“We share the Governor's priorities of solving the state's budget crisis and improving our economy,” said California Chamber of Commerce President and CEO Allan Zaremberg. “We look forward to working with Governor Brown and the Legislature to achieve these important goals for our state.”

Governor Brown has called for roughly half of the $25 billion budget shortfall to be closed with budget cuts and the other half through an extension of taxes that are set to expire later this year. Brown has urged that those tax extensions be put up for a referendum in June.

Below are highlights of the Governor’s address, followed by excerpts from the Republican response.

State of the State

“California faces a crisis that is real and unprecedented. Each of us will have to struggle with our conscience and our constituencies as we hammer out a sensible plan to put our state on a sound fiscal footing, honestly balance our budget and position California to regain its historic momentum.

“Although our state’s economy has started to recover, we will not create the jobs we need unless we get our financial house in order. It’s absolutely essential that we do our work boldly and without delay...

“If you are a Democrat who doesn’t want to make budget reductions in programs you fought for and deeply believe in, I understand that. If you are a Republican who has taken a stand against taxes, I understand where you are coming from.

“But things are different this time. In fact, the people are telling us—in their own way—that they sense that something is profoundly wrong. They see that their leaders are divided when they should be decisive and acting with clear purpose...

“Under our form of government, it would be unconscionable to tell the electors of this state that they have no right to decide whether it is better to extend current tax statutes another five years or chop another $12 billion out of schools, public safety, our universities and our system of caring for the most vulnerable...

“My plan to rebuild California requires a vote of the people, and frankly I believe it would be irresponsible for us to exclude the people from this process. They have a right to vote on this plan. This state belongs to all of us, not just those of us in this chamber. Given the unique nature of the crisis and the serious impact our decisions will have on millions of Californians, the voters deserve to be heard...

“In recent days, a lot has been made of the proposed elimination of redevelopment agencies. Mayors from cities both large and small have come to the capitol and pressed their case that redevelopment is different from child care, university funding or grants to the aged, disabled and blind.

“They base their case on the claim that redevelopment funds leverage other funds and create jobs. I certainly understand this because I saw redevelopment first hand as mayor of Oakland. But I also understand that redevelopment funds come directly from local property taxes that would otherwise pay for schools and core city and county services such as police and fire protection and care for the most vulnerable people in our society.

“So it is a matter of hard choices and I come down on the side of those who believe that core functions of government must be funded first. But be clear, my plan protects current projects and supports all bonded indebtedness of the redevelopment agencies...

“But let’s not forget that Job Number 1—make no mistake about it—is fixing our state budget and getting our spending in line with our revenue. Once we do that, the rest will be easy—at least easier because we will have learned to work together and earned back the respect and trust of the people we serve.”

Republican Response

Assembly Republican Leader Connie Conway

Assembly Republican Leader Connie Conway (Tulare):

“Tonight, Governor Brown put forward his ideas to solve California’s most urgent problems. Assembly Republicans stand ready to work with the Governor and the majority party to achieve our common goal—getting California back on track.

“We share the Governor’s goal of passing an honest and on-time budget. It is our hope that Governor Brown focuses on cutting spending and on long-term reform.

“We need to break away from the failed status quo. That means rejecting higher taxes, attacking wasteful spending, and doing away with the policies and programs that got us into this mess in the first place...

“The people have made it clear: they don’t want to pay higher taxes. Voters have rejected every tax increase on the last two statewide ballots. It’s time for Sacramento to finally to listen to the people.

“Republicans stand united as the only line of defense for California taxpayers. We believe the best solution to help close our deficit is not by raising taxes, but by creating private sector jobs. That is done by lifting regulations and by reducing frivolous lawsuits...

“Assembly Republicans offer our hand of cooperation. We look forward to working across party lines to cut the deficit, encourage new hiring and end the ‘tax-and-spend’ mentality with true common sense.”

To watch the Governor’s address, click here.
To read a transcript of the State of the State address, click here.
To watch the Republican response, click here.
To read a transcript of the Republican response, click here.