Governor Schwarzenegger’s toured European last week and stopped in France, where he discussed trade, global warming and politics with French President Nicolas Sarkozy. After a 30-minute talk, Schwarzenegger said he admired Sarkozy “tremendously” and believed the president would “put a new energy in the relationship between France and other countries, and our state.” Both pledged to work together on ways to reduce greenhouse gas emissions. Schwarzenegger called Sarkozy “fresh new blood for politics in the world, because he is a politician that believes in inclusion and not in making everyone the enemy, which we have seen so many times in politics.” The Governor said he also was studying France’s method of using public-private partnerships to build schools, highways, rail lines, energy plants and other projects. Schwarzenegger and Sarkozy also discussed the possibility of twin trade missions next year, with French officials promoting their country’s products in California and Schwarzenegger returning to France. The Governor has previously organized trade missions to China, Japan, Mexico and Canada for his business associates and Corporate supporters. An additional trade mission to India is planned for the fall.

Governor Schwarzenegger has written a letter to the U.S. Senate criticizing the proposed reforms of the H1B visa program.  His letter says in part:

Although I support the bill’s effort to increase temporary H-1B visas it is critical that the annual level be based on the actual workforce needs of these sectors and not an arbitrary cap. The current caps of 65,000 for skilled professionals and 20,000 for holders of advanced degrees have proven to be far less than what is needed. Future levels for these visas must be based on the demands of the market or this policy will strangle these important industries, forcing them overseas. The H-1B program must also be enforced in a way that does not impose unnecessary, costly administrative burdens on law-abiding U.S. businesses. I am concerned that the current bill may make the H-1B program harder to administer, especially for smaller businesses, such as technology start-ups, and force these companies to consider moving critical functions, including product development, to facilities offshore. My greatest concern, though, is with the proposal for a new points-based “green card” system designed to encourage the immigration of workers with training and skills in key areas. Replacing the current employer-based system, where companies can identify the specific skills needed and sponsor qualified immigrants, with an untested system run by the government threatens the very foundation of the program and must be amended. I strongly urge the Senate to retain an employment-based application process and consider authorizing a smaller points-based pilot program prior to any wider implementation.

This opinion could be expected from a Governor who takes all his consul from large Corporations and campaign donors, but he has absolutely NO right to claim that he is representing the opinions of small business. The current H1B Visa program is a modern version of indentured servitude- a throwback to this seventeenth century system that was long ago banished from our society. Naturally big Corporations love the current H1B visa programs as it gives them a ready supply of something akin to slave labor- employees that are completely beholden to them and under their complete control. Ask anyone who has worked on an overseas contract as a small business or independent contractor- you must completely shut down your life to work on one of these contracts and you are completely at the mercy of your “Corporate Sponsor”.

In 1999 and 2000, at the tail end of the dot com boom, I worked as a Program Manager in Silicon Valley. The firm I worked for imported large numbers of technical workers from a large Central Asian country. My job was to try to manage these poorly trained workers who were assigned to companies in California cities outside of the Silicon Valley, and I can tell you from first hand experience that any claims that these workers are more qualified then Americans- or that they can’t find Americans to do these jobs, is simply laughable. They want the cheap slave labor- it is as simple as that.

If we need to let people into our country to fill workforce needs, then they should be allowed to work where ever they want in our economy for some specified period of time, and a comparable number of Americans should be allowed to go to those countries to work. If these corporations really must hire foreign workers instead of Americans, then they should be required to provide at least some re-training of American workers. What we are seeing here is a sad example of what happens when big Corporations hijack our Government and political system. Governor Schwarzenegger probably doesn’t know any of this as he has closed himself off to all business opinions except those expressed by large Corporations and select business associations, such as the California Chamber of Commerce. As a result, he presides over a State Government that has become increasing hostile to small business interests, and is well on its way to becoming far more corrupt then the Davis administration ever was. Please call or write Senate Majority Leader Harry Reid and U.S. Senate Minority Leader Mitch McConnell and tell them to that on this issue, Governor Schwarzenegger is once again sadly misinformed and his opinions in this letter represent Corporate interests, not the interest of the people of the State of California.

The D-Day Blog has weighed in on the Schwarzenegger Canada junket- and if you thought what we wrote was harsh this guy nails it:

This is about the eighth time I’ve seen a report similar to this one that undisclosed donors are financing a Schwarzenegger trade mission… The excuse put forth by the Governor’s spokespeople is always the same: this SAVES taxpayer money because they don’t have to finance these trade missions! Really? What about all the corporate welfare checks that get cut as a result of this access? What about all the watered-down regulations that cost taxpayers, not only with money but with public health and quality of life? What about the state contracts that could go to lower bidders who don’t have the same relationships (read: bribery poke) with the Governor? .. It should frankly be outlawed for a private company with business before the state to finance the Governor’s travel, especially when it’s supposed to be official business. This is government for sale from the guy who was supposed to be such a big reformer because he was richer than dirt. This is also why I’ve been so adamant about the CDP-Chevron donation. Influence peddling in the capital is an epidemic that needs to stop.

The Sacramento Bee has covered Governor Schwarzenegger’s three day mission to Canada, and noted that of the fifty-two business delegates on the trip “a third of those going represent interests that have donated to Schwarzenegger’s campaign”. As with his other “trade missions” this has been funded by the “California State Protocol Foundation” a special “non-profit” set up by some of California’s major corporations to pay for these junkets. The trip includes many of the usual suspects- among those attending will be a lobbyist for Pacific Gas and Electric, former California Republican Party Chairman Duf Sundheim, and of course California Chamber of Commerce President Allan Zaremberg, who is an officer of this “Foundation”.

Schwarzenegger spokesman Aaron McLear said- apparently with a straight face- that the political donations “had nothing to do with the selection of delegates”, and Zaremberg expects us to swallow the same thing, “”There are people on the delegation who might have given to the foundation and people who didn’t give to the foundation,” he said. “It isn’t a part of the criteria to go on the trip.” Yeah, right.

It seems as if it doesn’t matter how many reputable publications cover the corruption that has crept into the State’s international business policy under the Schwarzenegger administration. They are not listening, and they apparently don’t care. It is important for people to know that this administration is not “pro-business” as they want you to believe – they are “pro-corporation” – and there is a big difference. The State government is absolutely sick with sole source deals and no-bid contracts, and this administration is completely closed to outside input and ideas. These guys are so administratively incompetent they can’t even manage to answer letters written to them by ordinary citizens. Don’t take our word for it, call or write them yourself and see what happens- if you are not a big shot, they are simply not interested.

The Schwarzenegger administration is driven by publicity- not by good public policy. They apparently have no concept of “the greatest good for the greatest number”. It is possible to organize a trade mission in the public interest, especially if it is part of a larger coordinated program, but that is not what this administration is doing- this Canada trip, and Schwarzenegger’s other “trade missions” really have been “junkets” – in the worst sense to the term. What the seem to want is more of that fawning media publicity that seems to feed this behavior. This time, let’s not give it to them.

Governor Schwarzenegger has issued a press release announcing that 11 major California corporations have signed contracts with Chinese businesses totaling more than $3 billion, and additional contracts will be signed later this week in Chicago. It is unclear from the press release whether these contracts had been jointly negotiated or why they were being jointly announced. Here is the full text of the press release:

Several California companies today signed contracts with Chinese businesses totaling more than $3 billion, with additional contracts for California employers to be signed later this week in Chicago. The contracts announced today are with 11 different California employers including Qualcomm, Applied Materials, HP, Oracle and CISCO.

Today at the State Capitol, Governor Arnold Schwarzenegger met with Madam Xiuhong Ma, Chinese Vice Minister of Commerce, and her delegation to thank her for encouraging Chinese companies to invest in California. During the meeting, Vice Minister Ma announced that the Chinese company Jiangxi Greatsource Display Technology Co., Ltd. will invest $95 million to build a research and development center in San Francisco.

“Since I’ve come into office, California has nearly doubled its sales to China. A key part of California’s economic success is export-led growth that recognizes the enormous potential outside California and the United States. The marketplace is now the whole world and that offers tremendous growth potential for our companies, but our competition is also worldwide. This means we must keep our costs under control, including our fast-growing healthcare costs, and make our infrastructure competitive and I will continue to travel the globe to promote California goods and services,” said Governor Schwarzenegger.

In November 2005, the Governor led a trade mission to China encouraging Chinese businesses to buy California products and invest in California. Since he took office California exports to China have grown 82.5%, and have grown by more than 27 % since the China trade mission.

In 2006, exports from California to China totaled almost $10 billion – almost doubling from $5.5 billion in 2003 when the Governor took office. California is the number one state in terms of total exports to China and top exports include computers and electronic products, waste and scrap materials, transportation equipment and heavy machinery.

Exchange at the Republican party debate with Governor Schwarzenegger looking on. All except Giuliani indicated that they would not change the constitution to allow for a Foreign born President. McCain tried to weasel his way out of the question with a lame joke:

Moderator: One of our prized guests here today, Governor Schwarzenegger — looking this man in the eye, answer this question — I’m going to go down the line, starting with Governor Romney. Should we change our Constitution, which we believe is divinely inspired to allow men like Mel Martinez, the chairman of your party, born in Cuba, great patriot, the senator from Florida, and Arnold Schwarzenegger, to stand here some night?

Romney: Never given that a lot of thought, but with Arnold sitting there, I’ll give it some thought, but probably not.

Mike Huckabee: After I’ve served eight years as president, I’d be happy to change the Constitution for Governor Schwarzenegger.

Duncan Hunter: We haven’t seen his endorsement yet, that’s a no.

John McCain: Depends on whether he endorses me or not.

Giuliani: When he called me up to endorse him, he got me on the phone, he said, “Will you endorse me?”, and I was too afraid to say no. I would say yes.

Tom Tancredo: Intimidating as he might be, I’m saying no.

The Orange County register has given it’s take on junkets being funded by the California Foundation on the Environment and the Economy, a non-profit organization founded by several large Corporations in the Energy and Telecommunications industry. Their take is that this abuse of non-profit status is similar to the Abramoff case and could be considered “bribery” – though it would be difficult to prove. Our take has already been written here. We wouldn’t begrudge Schwarzenegger Administration officials and California Legislators an occasional junket if there were doing a decent job of international business development in the interests of California companies and citizens- but they are not doing a decent job- they are doing a crappy job. Also, where are the “trip reports” for these junkets? I can’t find them, and they certainly don’t seem to be on the CFEE website. How can the recipients of these junkets claim they were in the public interest, if the information they (should have) generated is not available to the public? Excepts from the OC register article:

At the end of March, lawmakers and members of the Public Utility Commission joined corporate executives on a trip to Japan. The expenses, valued at $8,000 to $9,500 per person, were picked up by the California Foundation on the Environment and the Economy – a nonprofit in San Francisco funded and connected to firms represented on the trip.

Lawmakers say trips like these are valuable educational experiences; government watchdogs say they’re attempts to buy influence and circumvent the law, which bars corporations from buying trips for government officials or funneling money through organizations that can.

But without evidence, like a memo or an e-mail, directly linking corporate money to officials’ travel, the law says it’s OK. ‘It’s extraordinarily frustrating,’ said Carmen Balber of the Foundation for Taxpayer and Consumer and Rights. The foundation recently uncovered documents showing the value of the Japan trip. ‘You don’t need a smoking gun in California to know a $10,000 gift to the Speaker of the Assembly is illegal,’ Balber said. ‘But the law does require that smoking gun if that $10,000 gift is funneled through a nonprofit organization. And that’s absurd.’

The Jack Abramoff case illustrates the kind of concrete evidence needed to substantiate such a connection. By now, it’s known the disgraced former lobbyist used the National Center for Public Policy Research and other nonprofits as intermediaries for himself and his clients to pay for trips to Scotland and other things. (At the time, businesses were allowed to pay for House of Representatives trips; Abramoff was trying to dodge a rule that required trip sponsors to be directly connected to the reason for the travel.)

But proving those links required a mountain of documentation and testimony: e-mails showing Abramoff arranging pass-through payments; donations dated the same day trips were taken; sworn statements by insiders. I asked Bryan Sierra, a Department of Justice spokesman, why political corruption cases require reams of evidence. He said the burden of proof can be incredibly high.

For bribery, he said prosecutors have to prove the intent of two parties: the briber, who must be shown to have offered something of value and delivered it, and the bribed, who must be shown to have taken an official action directly because of that thing offered or delivered.

Excerpt from Dan Water’s column in the Sacramento Bee entitled: “California can’t avoid expansion”:

The exact dimensions of growth are less important than the fact that it continues, and as it does, it will remain the most important factor in the state’s social, economic and political evolution. A half-million more Californians every year — more in some years — translates into a demand for about 200,000 additional units of housing, a quarter-million jobs and space on the roads for several hundred thousand more cars and trucks, for instance, as well as more water, more desks in schools and so forth.

Those demands fuel political conflicts — over water and housing development, to cite but two examples — that are made even more contentious by the fact that California’s population growth is almost entirely immigration-driven, both directly and through births to immigrant mothers. Environmental groups, for instance, often oppose housing developments, water projects, highway construction and retail complexes to serve population growth, while ignoring immigration issues out of fear of alienating Latino political figures…

Arnold Schwarzenegger, to his credit, has been more willing than any recent governor to acknowledge that population growth generates political conflicts that should not be ignored. He often cites the state’s relentless push toward 50 million people in urging other politicians and voters to invest in the infrastructure that was shamefully neglected for decades because of political denial and ideological gridlock.

Schwarzenegger doesn’t see growth as a cause for celebration, as Pat Brown and others of his era did, nor as something to be ignored, as Brown’s son and his successors often did, but simply as an inescapable fact of California life.

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“The governor paid a visit to the Burbank set of ABC’s freshman series “Brothers & Sisters” on Monday and praised ABC Television Studio, executive producers Ken Olin, Jon Robin Baitz and Greg Berlanti, along with the show’s cast and crew, for their commitment to keep production in California, Broadcasting & Cable reports. Schwarzenegger said production companies have choices about where to film, and shooting in the state translates to the generation of more jobs and revenue for California’s economy. Since July 2006, 25 episodes of the drama have been filmed exclusively at the Disney studios in Burbank and on-location around Southern California.”

Governor Schwarzenegger has been getting heavy media attention recently, including getting his picture on the cover of Newsweek, said that Michigan’s carmakers should get off their “butt” on greenhouse gases. During his presentation as featured speaker for a Global Environmental Leadership Conference at Georgetown University the Governor said:

I say, Arnold to Michigan: get off your butt and join us. California may be doing more to save U.S. automakers than anyone else. We are pushing them to make changes. If they don’t change someone else will. Only technology will ultimately save Detroit, If they don’t change, someone else will, the Japanese will, the Chinese will, the South Koreans will. In California, we are doing everything we can to tip the balance in favor of the environment, California is big. California is powerful, and what we do in California has an impact. We are sending the world a message.

The Los Angeles Times has reported that the $500,000 donation AT&T gave to one of Governor Schwarzenegger’s charities came just six months after the governor signed a law lifting barriers to the company’s bid to sell pay television service in California. The money went to After-School All-Stars, a tax-exempt group founded by Schwarzenegger in the early 1990s to provide tutoring, recreation and other programs to poor children. The organization’s board includes some of Schwarzenegger’s closest friends and aides, including Bonnie Reiss, a former senior aide in his administration, and Paul Wachter, his financial advisor, the Times reported. “It’s all to the good for low-income kids, but it’s also noted on AT&T’s balance sheet in more ways than one,” said Sheila Krumholz, executive director of the Center for Responsive Politics in Washington, D.C. “There is a benefit to regardless of his technical affiliation with the charity.”

Last November, AT&T gave $25,000 to the Governor’s campaign, and just four days later Susan Kennedy, now his Chief of Staff voted as Public Utilities Commission member to approve AT&T’s merger with SBC Communications. Less then a month later, Governor Schwarzenegger paid that exact amount to Susan Kennedy leading many to suspect that AT&T had paid this money as a bribe in order to secure this favorable decision by the PUC.

They were eyeball to eyeball, and Schwarzenegger blinked. Earlier this week Governor Schwarzenegger responded to right-wing radio personality Rush Limbaugh who had been taunting him by saying that he is “not a real Republican” and of being a “Democrat pretending to be a Republican”. Speaking during an interview on the today show the Governor said, “Rush Limbaugh is irrelevant. I am not his servant; I am the people’s servant of California. Whether they call me a Democrat or a Republican, or in the center, or I changed, or this or that, that’s not my bottom line”. This “irrelevant” comment was widely praised, and maybe the Governor should have left it at that. Rush Limbaugh is popular among some conservatives but he is despised by progressives and liberals. He was one of the biggest cheerleaders for the war in Iraq and helped the Bush administration make it’s case that Iraq was “linked” to Al Qaeda, along with other frequently misleading and highly partisan reporting.

Limbaugh continued taunting Schwarzenegger, on Tuesday saying, “if he had the leadership skills to articulate conservative principles and win over the public as Reagan did, then he would have stayed conservative” and also mocked the Governor on his Web site by putting up a fake poster with Schwarzenegger’s face titled ‘Total Sellout’ a play on the title of the film ‘Total Recall’. On Wednesday the Governor threw in the towel and called into the show, but the dressing down continued. Limbaugh pressed Schwarzenegger about his the $12 billion universal health care proposal that is opposed by many conservatives, and said that the compromises Schwarzenegger said were necessary were really a “capitulation to liberals”. Schwarzenegger still seemed eager to make up with the talk show host, however, and suggested they get together to smoke cigars, “You and I, we’re going to have a good time again in our next smoke out,” Schwarzenegger said. “We’ll smoke a stogie together, and we will talk about this from here to eternity. The key thing is that people should know that you and I, we don’t have a fight.”

“California Gov. Arnold Schwarzenegger will be in San Antonio Tuesday for a special ceremony that will involve the AT&T Foundation giving a major gift to After-School All-Stars, an after-school program the former actor founded… The AT&T Foundation’s gift will be used to support the national program — which is a nonprofit organization that offers tutoring services and sports to at-risk middle school students. The exact dollar amount will be released at a special event at Alamo Stadium.”

Governor Schwarzenegger will lead a trade mission to Canada on May 29, 2007 and return May 31, 2007, his office announced today. The Governor will be visiting the cities of Toronto, Ottawa and Vancouver, and his press release says he will focus on promoting California trade and tourism, discuss ways of reducing the effects of climate change while boosting economic growth and look at creative ways to finance infrastructure: “I am very excited to visit Canada – our state’s second largest trading partner. Californians share so much with our neighbors to the north – whether it is a desire to protect our environment and reduce greenhouse gas emissions or our entrepreneurial spirit. I look forward to meeting with Canadian government officials to share the benefits of our state’s burgeoning cleantech industry, promoting California as a travel destination and encouraging Canadians to buy California’s goods and services,” Governor Schwarzenegger said. The Governor also claimed that his previous trade missions had been a success: “We have already seen great success from our past trade missions to Mexico, China and Japan, and this mission will continue on in that tradition of success”. There was no information on the Governor’s site about who will be participating in this trade mission.

“British Columbia’s policy wonk premier headed down to California Thursday where he met with Hollywood action hero Gov. Arnold Schwarzenegger to plant the first seeds of what’s being billed as an ambitious Pacific Coast green plan. The Los Angeles meeting between Gordon Campbell and the Terminator was a private affair where the two political leaders started to map a strategy for a green summit later this spring in British Columbia. Campbell said the two leaders want to launch a climate change initiative that could potentially include the Canadian and United States governments.”

Governor Schwarzenegger has issued this statement praising Prime Minister Tony Blair for the introduction of legislation in Great Britain to reduce greenhouse gases. California and the United Kingdom signed an agreement- some might even call it a treaty- to cooperate in the fight against global warming. The Governor credited Blair with being the inspiration behind California’s Global Warming Solutions act:

I would like to congratulate Prime Minister Tony Blair for taking this historic step to do in Great Britain at the national level what California is doing at the state level. The Prime Minister has been an inspiration to California as we have taken our own historic steps to fight greenhouse gases with the Global Warming Solutions Act. His leadership has shown us that we can protect the environment without harming the economy. Great Britain has already successfully reduced its greenhouse gas emissions below 1990 levels while at the same time growing their economy by 38 percent.

California’s economy stands to greatly benefit from the wave of new businesses and jobs created by the emerging technologies and different approaches to fighting climate change. By harnessing market forces, we will reduce carbon emissions to 1990 levels by the year 2020. And by 2050, we will reduce emissions to 80 percent below 1990 levels.

California is proudly partnering with Great Britain to fight climate change and I look forward to advancing our efforts and linking our regional trading schemes so we can create a global carbon market.

Last July, Prime Minister Blair and I took the unprecedented step of signing an agreement between California and the United Kingdom to create an international partnership to fight against global warming. Our agreement includes efforts to evaluate and implement market-based mechanisms to spur innovation, deepen our understanding of the economics of climate change, collaborate on technology research and enhance linkages between our scientific communities.

There has been more coverage in the San Francisco Chronicle on Corporations links to “non-profits” that are being used to pay for junkets for Schwarzenegger administration officials and members of the State Legislature:

Some of the same corporate interests that dominate the Capitol through high-priced lobbyists and campaign donations also bankroll nonprofit organizations that in turn spend tens of thousands of dollars a year entertaining state lawmakers and administration officials far from home — gifts that otherwise would exceed state limits.

Since 2002, the largesse has included a weekend at a fashionable beachfront golf resort south of Rio de Janeiro for 14 state officials, including Assembly Speaker Fabian Núñez, D-Los Angeles, and the governor’s chief of staff, Susan Kennedy.

There was also a luncheon cruise on New Zealand’s Hauraki Gulf for two state senators and three Assembly members; dinner at Harry’s Bar in Rome for Núñez and another lawmaker; and golf at the renowned Kapalua Resort on Maui — a treat enjoyed by state Sen. Jeff Denham, R-Salinas, and Bill Leonard, a member of the state Board of Equalization.

The trips, which typically involved study groups and conferences, are sponsored by organizations such as the Pacific Policy Research Foundation, the American Legislative Exchange Council and the California Foundation on the Environment and Economy.

According to a Chronicle investigation, each of these organizations receives substantial funding from major corporations such as ChevronTexaco, Sempra Energy, Pacific Gas and Electric Co. and Altria Corp. (the lobbying arm of Altria Group, which owns Philip Morris tobacco).

We’re disappointed, but no longer shocked to learn about these shenanigans. In truth, if our elected leaders were doing a decent job we wouldn’t begrudge them an occasional junket. In the area of international trade and economic development, however, they are not doing a good job- they are doing a terrible job.

None of the basics for an effective economic development program are in place in California. After more than three years, they haven’t formed any cohesive business development strategy or policies, there is no administrative infrastructure and few effective public services. The few remaining small business programs are listless and bureaucratic. The junkets are the fun part- but they haven’t earned it by doing any of the hard work to justify their little romps.

Another huge question that always seems to go unanswered is what happens to the information that was collected on these trips? Do they even bother to collect it in an organized and professional manner? The Schwarzenegger administration is virtually closed to public input in these areas- presumably unless you are one of the Corporations funding their junkets and other pay offs, so shouldn’t we at least be allowed to see what they came up with?

That’s what you might conclude by reading the latest LA Times report on the favoritism the Governor has given to those who supported his reelection campaign:

Gov. Arnold Schwarzenegger, once a critic of patronage in government, has rewarded 29 aides from his reelection campaign with state jobs, promotions and hefty raises… Administration staffers from the governor’s first term who were employed by Californians for Schwarzenegger in 2006 today earn an average 27% more than they did in January 2006. That is 8 percentage points more than the average salary increase given to aides who were never employed by the campaign, state payroll records show.

Couple the with the revelation that Governor Schwarzenegger paid huge “bonuses” to his Chief of Staff and other senior officials- apparently from Corporate campaign donations, and it is obvious that the seeds have been planted for a corrupt state government. They may not be there yet, but they are getting dangerously close.

The San Francisco Chronicle has written still another expose of Governor Schwarzenegger’s use of business associations and large Corporations to fund his foreign trade missions:

Gov. Arnold Schwarzenegger’s foreign trade missions are paid for by the California State Protocol Foundation. Though neither the governor’s office nor the foundation will disclose the group’s funding sources, tax records filed by other nonprofits doing business with the foundation show that it received $75,000 from agribusiness interests and banking. The foundation is led by two of the state’s most influential business groups — California Chamber of Commerce and the California Roundtable.

The Chronicle quoted Aaron McLear, Schwarzenegger’s spokesman, as saying the governor accepts the gift from the foundation because both share a “passion” for creating jobs in California. He said Schwarzenegger is not influenced by those that pay for the trips and makes his decisions based on what is best for the state.

This is extremely difficult to swallow. There is a huge difference between being “pro-business” and being “pro-Corporation” and to-date the Schwarzenegger administration has not shown the slightest interest in small business concerns. The non-profit organizations he uses to fund his trade missions- including the California Protocol Foundation, The California Chamber of Commerce, The California Roundtable, the California Commission on Jobs and Economic Growth and others are primarily interested in supporting their large Corporate clients, for the simple “Willie Sutton” reason: “that’s where the money is”.

Together, these groups form a private network of Schwarzenegger supporters that have no real interest in diluting their influence with the Government with annoying small business concerns. Since the Governor has essentially used these “non-profit” groups as proxy economic development agencies they have the power, but not the responsibility that comes from being part of government. On the important issue of economic development and international trade promotion, the door is simply not open to the rest of us.

This won’t be the first time that one of California’s big newspapers has done an investigative report on this issue, but we are nearly three and a half years into the Schwarzenegger administration and nothing ever seems to change. Governor Schwarzenegger, who just two years ago said: “I want your ideas, and the more radical the better” now seems to only be interested in input from a few closed groups of his own associates. Since the Governor has not made economic development part of his Government “for all the people” pledge it may be time for the State Legislature to step in and make sure that all California citizens interested in this issue are fairly represented.

Governor Schwarzenegger was quoted in a Reuters interview as saying that California needs $500 billion in bonds to rebuild:

“I was at a meeting this morning where someone said, ‘Look, we need $150 billion just for infrastructure and transportation.’ It’s true – We need $500 billion to rebuild California the way it ought to be,” he added. “But this is of course too big for people to digest, so you don’t talk about that.”

Speaking about the total of $42.7 billion in general obligation bonds authorized by voters last year for public works spending, Schwarzenegger said: “This was only the foot in the door, to whet the appetite.”

In the short term, Schwarzenegger acknowledged California could face lower tax revenues than projected in his January budget plan, but said he opposed new taxes. “We have done tremendously with the revenue increases, but we do not want to do a tax increase.”

He said he does not expect California to issue less debt if the economy slows. “I don’t think we have to do that,” he said.

The blog “Mish’s Global Economic Trend Analysis” called this “fiscal insanity” and calculated that it “translates to a staggering $22,176 liability for every working age person”. Mish concluded, “The kicker is that Schwarzenegger thinks this can be paid for without increasing taxes, in the face of falling revenues, even if the economy heads into a recession. Mark my words California, your taxes are going to skyrocket if anything remotely close to this proposal passes.”