Cities optimistic about governor

Alicia Robinson

Local business and political leaders largely echoed the optimism seen

at the inauguration of Gov. Arnold Schwarzenegger Monday in

Sacramento, and said they are eager for the new administration to get

down to business.

“I think it was a great start to a new day,” Assemblyman John

Campbell said.

He and Newport Beach Mayor Steve Bromberg were among a crowd of

thousands who attended the ceremony.

“I guess if I was going to characterize it, I would say there was

just so much positive electricity in the air, it was noticeable from

any angle,” Bromberg said.

Local officials are anticipating action from the new

administration on the promised repeal of the car-tax increase, and

its effect on local budgets, and on initiatives to help businesses.

Legislators will begin tackling those issues today, when

Schwarzenegger convenes a special session of the Legislature.

Local governments have worried that they will lose funding from

the car tax, but Campbell said he expects a bill today that would

“backfill,” or make up local governments’ lost car-tax revenue with

money from the state’s general fund.

For now, backfilling so cities don’t suffer will add to the

state’s deficit, a problem that is “part of the spilled milk of the

Davis administration,” Campbell said.

“The increased car tax was never going to generate the revenue

that was projected anyway,” Campbell added.

Newport Beach budgeted for the possible loss of $4.2 million in

car tax dollars, Bromberg said, so the city won’t be hurting even if

there’s no backfill.

City officials kept a close eye on the $162-million budget and

held off on new public works projects so they wouldn’t come up short,

Bromberg said.

Businesses have high hopes that the new administration will ease

the burden put on them by workers compensation costs, mandated health

benefits and unemployment insurance, said Richard Luehrs, Newport

Beach Chamber of Commerce executive director.

“The governor in his campaign promises talked about reducing the

burden on business, particularly small business in the state of

California,” Luehrs said. “We’re expecting to see the Legislature

overturning some of these things.”

Costa Mesa City Councilwoman Libby Cowan expressed concern that

the city will lose state funds, which she said constitute “a very

nice piece” of Costa Mesa’s $112-million budget.

“I have major concerns about the budget, but they’re concerns I

would have no matter who was [in the governor’s office,]” she said.

Cowan has said she did not support the recall process.

“All I hope is, the state can move on and do the business it needs

to do,” she said.

Costa Mesa City Manager Allan Roeder was cautiously optimistic

about the new administration. He said the city could lose about $4

million from the car tax repeal, and if the state takes half of

cities’ sales tax revenue as it has considered, another $18 million

could disappear from city coffers.

Those numbers aside, he said, “I think it’s really a little too

soon to draw any quick assessment [of the new administration].”

* ALICIA ROBINSON covers business, politics and the environment.

She can be reached at (949) 764-4330 or by e-mail at

[email protected].