by John M. Curtis
(310) 204-8700

Copyright May 27, 2004
All Rights Reserved.

itting Sacramento like a steamroller, Gov. Arnold Schwarzegger bulldozed his way through the Democratic legislature, flattening state senators and legislators en route to his 2004-05 budget. Shell-shocked legislators are only now beginning to wake up. Faced with a $34 billion deficit, California borrowed its way back to solvency, floating $25 billion in general obligation bonds. Arnold promised to not raise taxes, hiring Florida Gov. Jeb Bush's former finance director Donna Arduin to slash California's budget. Known as a tough conservative, Arduin spared no sacred cows, slashing $200 million from the University of California and California State University budget, forcing both institutions to nix 7,000 qualified freshmen in fall 2004. Though scoring a stunning Oct. 8 landslide over incumbent Gov. Gray Davis, Arnold wasn't licensed to traumatize deserving high school graduates.

      When Moody's Investors Service downgraded California's bond rating to BBB last December, Arnold was given added leverage to drive a hard bargain with the legislature. Asked to make sacrifices and promised to restore funding, UC and Cal State agreed to draconian cuts, forcing the nation's most prestigious higher education system to forfeit $200 million. Arduin first tried to slash funding to the state's regional centers, responsible for managing developmental disabilities. When the governor's wife Maria Shriver [daughter of Eunice Kennedy] stepped in, funding was restored, recognizing her longstanding commitment to mental retardation through the Joseph P. Kennedy Foundation. Fearing further downgrading of California's credit, the assembly and senate rubber-stamped Arduin's plan. After emerging from a dazed state, the Democratic legislature is finally waking up.

      Mandate or not, even popular governors can't crush the hopes of hard-working teenagers seeking a college education. Of all the areas to cut, the GOP shouldn't forget way-back-when, when another popular governor named Ronald Reagan eviscerated the University of California, also with the noble intent balancing the state budget. Arnold doesn't mind augmenting revenue by raising fees, as long as it's not called “tax hikes.” “This is going to be priority No. 1,” said Assembly Budget Committee Chairman Darrell Steinberg (D-Sacramento), putting the governor on notice that Democrats plan to hold up his budget until he reverses cuts to UC and Cal State. With an improving economy generating over $1 billion in new tax revenues, restoring $200 million looks more feasible. Arduin doesn't quite get the political implications of trashing higher education. Before inflicting lasting damage, Arnold must wake up.

      Heading into the summer, Democrats have the perfect issue with which to hold up Arnold's budget hostage. Although the UC and Cal State signed off on the cuts, Democrats can now save the day for California's deserving graduates, threatened with reductions in enrollment. “The governor knows what our priorities are, and I think he knows where we are headed,” said Assembly Speaker Fabian Nunez (D-Los Angeles), putting Arnold on notice that Democrats don't intend to roll over on higher education. There's no better way to highlight a controversial issue than during budget crunch-time. Arnold has already signaled his impatience with Democrats' stalling tactics. “The people will accept nothing less than a responsible on-time budget. This is a big deal for me, let me tell you,” said Arnold, blaming Sacramento and politicians for obstructing a constitutional deadline.

      Despite acquiescing, UC officials acknowledged that if funding is restored they could accommodate qualified students already deferred to community colleges. Agreeing to cut 7,000 students and hike undergraduate fees by 14% and graduate fees by 25% doesn't solve long-term problems with the nation's most prestigious public university system. Making UC and Cal State less affordable defeats the purpose public universities, leveling the playing field for low-income families. Affordable public universities and community colleges are one of the last remaining fringe benefits for California residents. Creating a hospitable environment for businesses involves more than lowering workers comp and tax rates. Having affordable quality public education attracts business and the best labor pool to California. Stripping the state of more incentives keeps business and individuals away.

      Gov. Schwarzenegger and his chief budget lieutenant Donna Arduin should pick their battles wisely before balancing the state budget on the backs of the state's smartest high school graduates. Arduin has plenty of room to trim the obscene payrolls of lobbyists and consultants currently usurping the state treasury. Hiking all sorts of state fees yet not touching income taxes can't be the only acceptable way of satisfying hardcore Republicans. Why is it OK to raise tuition and other fees but not OK to raise income taxes? Since taking office, Arnold has threatened to take controversial issues to voters through California's initiative process. On the subject of scaling back or hiking fees at the UC and State universities, he knows the outcome. Regardless of California's budget woes, the governor would be well advised to reconsider socking it to the state's smartest high school graduates.

About the Author

John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He's editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.

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