Gov. Says Prop. 76 Will Let Him Do More With Less

Sacramento — It just has an odd sound, this pitch by the governor for Proposition 76: \o7We must slow down spending so we can spend more.

\f7That's the way it comes out, anyway -- confusing and illogical on its face.

Political strategists for Gov. Arnold Schwarzenegger must think there's voter appeal in telling people they can have it both ways: less and more at the same time. Or, regardless of where people come down on the side of spending -- wanting more or less -- they're covered by Prop. 76.

Schwarzenegger told KABC radio's Larry Elder recently: "We cannot continue spending more money than we take in.... [Prop. 76] means controlling spending, paying down the debt and balancing the budget without raising taxes."

But he also told the talk show host: "What is important to me ... is to build the huge infrastructure that we need here. We need to build our roads.... We have to build more schools and more hospitals."

It's a constant message: The need to do with less while attaining more.

Interviewed on public television's "California Connected" last week, Schwarzenegger said:

"Look, we don't have enough money to build hospitals, ... freeways, bridges. We need more energy. We need to make sure we have the cleanest environment.... We need more water, we need more of everything. And more affordable housing, which is the biggest problem of all."

Prop. 76 has three main elements:

* A new state spending limit. The goal is to smooth out and stabilize spending over time. The annual budget couldn't increase by more than the average growth in tax revenue for the previous three years. Any revenue that exceeded the limit would be funneled into a reserve, debt repayment and road or school building projects.

* New budgeting powers for the governor. When revenue fell 1.5% below budget forecasts, he could declare an emergency and cut spending practically any way he wanted if the Legislature failed to act within 45 days. As with any budgeting, it would require a two-thirds majority vote of each house to act.

* A reduction in school funding guarantees. The measure would repeal a requirement that if schools are funded below the Prop. 98 minimum, the lost money must be restored later and figured into the guaranteed base. It also would allow Sacramento to pay above the minimum without the bonus money becoming forever guaranteed, as Prop. 98 now requires.

Schwarzenegger calls it his "live within our means act."