As the News Director for KUSP-FM Santa Cruz back then, I attended what I thought would be a routine speech by then-Governor Pete Wilson of California on Nov. 13, 1993, and was struck by the emphasis Wilson gave to an asserted connection between immigrants and the state budget gap. This was new for a politician who previously had been seen as a moderate on immigration, so I wrote a longer story than I’d planned to and submitted it to the AP.
The speech turned out to foreshadow a theme that would end up costing Wilson and the California Republican Party dearly. But it would be adopted enthusiastically by other GOP leaders, notably Donald Trump. Here’s the story I submitted, along with a notes for the AP editor at the bottom. I tack on the short version as fed to broadcasters — quite a difference, as you’ll see, and an indication as to why we need newspapers!
(MONTEREY) Governor Pete Wilson says California’s budget problems are made worse by a population that is not just growing but growing younger: more young people who require services are moving to the state while older, wealthy residents who generate jobs and tax revenue are moving away.
Speaking on the state’s worsening revenue gap, the Republican governor traced the current difficulties to 1985, when, he said, California’s then-prosperous economy started breaking all the rules.
“In the economic boom times your safety net costs decrease – right? Wrong… Instead of welfare enrollments going down, they too were on the rise.”
The governor said the huge influx of young immigrants, and immigrants with children, is the major strain on state services. During the ‘80s, he noted, “California took in the equivalent of the population of Georgia” – 6 1/2 million people.
Wilson told the county supervisors the problem is worse now, when jobs are leaving the state – he cited 380,000 in the 11 months ending in March, 1991 – and the recession lingers on.
He blamed job losses partly on federal cuts in defense spending, but also on what he called “job killing burdens” on business: too many regulations, which, according to Wilson, hurt the state’s competitiveness in the world market. He called such regulations well-intentioned individually, but said that together they amounted to California’s “self-inflicted wounds.”
Wilson confirmed that he is reviewing the current budget, predicting further shortfalls on top of the $14 billion gap supposed to have been closed by this year’s spending cuts and record new taxes. And, he said, estimates for fiscal year ‘92-‘93 are also being revised.
He told the county officials that less revenue and more demand on services means local authorities should be given more say in how tight money is spent: Just as small businesses decide for themselves where to cut spending when income falls, so must counties be given that ability. Citing this year‘s historic realignment legislation, which transfers to counties both responsibility and $2.3 billion in funding for many health and social programs, Wilson said “a far greater realignment must take place,” both in Sacramento and in Washington, in favor of local control of spending.
Said Wilson, “We simply can’t continue doing business as we have in the past — not at the federal level, not at the state level, and not at the local level, where in fact… most of the good ideas about solving problems come from.”
Wilson called for local “discretion, not mandates,” and criticized Congress for setting mandates and options on Medicaid programs without sending states the money to live up to the requirements.
At seminars in working lunches, county and state officials huddled to seek ways to protect existing locally controlled funds: the money provided under realignment comes from the state sales tax and vehicle licensing fees, both of which are down because of the recession. Monterey County Supervisor Barbara Shipnuck, an architect of the realignment deal with the state, said one solution might be to shift money from foster care to Aid to Families with Dependent Children.
Shipnuck said, “While AFDC caseloads are very much increased, foster care is down, and we are able to move money under realignment.” She attributed decreased demand for foster care to the state family preservation act (1991), which seeks to keep more children with their families through in-home support services.
Adjustments to the overall state budget will come before the legislature when it reconvenes in December, unless a special session is called before then. At a news conference following his speech to the supervisors, Governor Wilson expressed skepticism that members of the Assembly and Senate will work effectively on the budget gap.
“Are they prepared to do anything? I am not confident that much would be accomplished (by a special session)… When they do go back, they’re going to have to do some things that are very unpleasant, and I’m not at all certain that they’re prepared to do that.”
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Notes For Editor:
1. Wilson’s remarks on the demographic shift to younger immigrants (see quote #1) is emerging as a key theme with him: see his interview in the current Time magazine. Also, Wilson spokesman Bill Livingston told me the governor will soon give a speech addressing the impact of shifting demographics in California. Although Wilson is focusing on the politically less sensitive issue of age, this may be because it’s a way around talking about national origin – ref statistics showing influx of immigrants from countries with traditionally high birth rates.
2. Wilson spoke at the opening session of the annual conference in the county supervisors Association of California, held at the Monterey Hyatt. Runs Nov. 13-15.
Short version as fed to stations on the AP broadcast wire:
(MONTEREY) Governor Pete Wilson says less revenue and more demand on services means local officials should have more say in the flow of funds.
The governor spoke in Monterey today to a conference of the county supervisors association.
In his words… “We simply can’t continue doing business as we have in the past – not at the federal level, not at the state level, and not at the local level.“
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