Facing a record $35 billion deficit, Gov. Gray Davis promised to
present “one of the toughest budgets ever” during his
State of the State address Wednesday evening, while highlighting
plans to create new jobs.
Davis said there will be cuts in nearly every area of the
state’s spending, but avoided discussing tax increases, which
he has said are necessary during the past month.
He also proposed a goal of creating 500,000 new jobs throughout
the state in the next four years.
“My most immediate priority can be summed up as jobs, more
jobs, and even more jobs,” Davis said.
This replaces education, which Davis said was his top priority
during his first term of office.
He said his budget will protect public education ““
including the University of California ““ “to the extent
possible” but that every area of the budget will face
cuts.
He avoided mentioning specifics, which will appear when he
presents his 2003-2004 budget plan Friday, but said that major
changes are necessary in how the state collects revenue to insulate
it from swings in the economy.
The state enjoyed a windfall based on capital gains taxes when
Davis was first elected, allowing him to expand programs such as
education.
The university’s budget is dictated by these cycles, and
the shrinking state revenue in the past two years has forced the UC
Regents to raise student fees to make up for lost state
funding.
Republicans in the state legislature widely oppose a tax
increase, which they say could lead to a prolonged stalemate in the
months to come.
“The governor needs to understand that raising taxes will
send even more jobs out of California,” said Dave Cox, R-Fair
Oaks, the assembly’s Republican leader.
To create jobs immediately, the state will fast-track its $21
billion housing bond, making some of the money available
immediately.
The program, called “Build California,” would be
used to accelerate the building of freeways and public transit
projects.
He said it will also speed up construction of the UC Merced
campus by a year, which would help the university alleviate some of
the overcrowding problems it currently faces.
These efforts would create 68,000 new jobs, Davis said.
Cox approved of Davis’ goal to create more jobs, and said
the governor should repeal workers’ rights legislation passed
last term, which Cox said cost the state jobs.
Davis also asked the regents to invest the pension fund in
California housing, which he said would create additional jobs.
He said the state will also establish a permanent state Office
of Homeland Security, but asked the federal government to provide
the money to fund it.
The department will coordinate security activities throughout
the state, he said.
Davis also launched a life sciences initiative to increase the
number of lab technicians and increase access to federal and
private sources of funding.
He highlighted the work of scientists at UCLA’s Mattel
Children’s Hospital, who were able to save the life of
10-year-old Anies Garcia through a combined kidney-heart
transplant.
With reports from Daily Bruin wire services and Andrew Edwards,
Daily Bruin Staff.