Governor finds trouble at home

Governor Finds Trouble at Home

STATE OVERHAUL: He drops proposal to abolish 88 boards

Sacramento — Gov. Arnold Schwarzenegger said Thursday he was backing
off a controversial proposal to abolish 88 state boards and commissions
that oversee everything from licensing doctors to running recycling
programs. It seemed nearly everyone in Sacramento found something to
hate in the proposal, from Democratic and Republican lawmakers to
interest groups that rarely agree on anything.
The plan was Schwarzenegger’s most ambitious attempt to fulfill a
pledge to "blow up boxes" and streamline state government — a goal
that has largely eluded him so far.
Schwarzenegger also has generally ignored a review he commissioned last
year that made more than 1,200 recommendations to restructure
Schwarzenegger touted the California Performance Review as a way to
save taxpayers’ money and make the state more responsive to citizens,
but he has yet to advance most of the ideas.
Speaking in Washington on Thursday, the governor said he plans to
revise and "perfect" his proposal to kill dozens of boards and
commissions before bringing it up again. And administration officials
said they have implemented some ideas to shake up bureaucracy.
But others said the governor’s pledge to conduct a massive remake of
government — made during his first state of the state speech last year
— was naive.

"He had this rather childish concept of marching into Sacramento and tearing down everything," said Richard Holober, executive director of the Consumer Federation of California. "What he found was that there are plenty of reasons why things operate the way they do."

Holober and virtually everyone in California agree there are plenty of inefficiencies in state government.
But Schwarzenegger’s performance review has been attacked as an overly
partisan power grab. And a study of the review’s conclusions done by
the nonpartisan Legislative Analyst’s Office found that the ideas would
save far less money than the report claimed.
A six-month effort that included 260 people scrutinizing all areas of
government, the performance review was released last summer and made
recommendations ranging from eliminating county school superintendents
to changing the age at which children should begin kindergarten.
It also recommended shutting down more than 100 boards and commissions,
and from that list Schwarzenegger crafted his proposal to kill off 88
and shift most of their duties into state departments.
That proposal was sent in January to the Little Hoover Commission, a
state agency which conducted public hearings and was set to give its
opinion on the plan next week. The proposal appeared to have little
support in the Legislature, and on Thursday the governor sent the
Little Hoover Commission a letter withdrawing the proposal.
Critics complained that Schwarzenegger was proposing the abolishment of
many regulatory boards that have existed for decades to protect
consumers. Some argued that the boards, many of which include members
of the public and political appointees from the governor and
Legislature, did a good job of representing multiple interests when
they set rules for things like nursing practices or building standards.

They also noted that the idea seemed to contradict one Schwarzenegger
mantra — a more open government — that the governor espoused while
running for office.
By abolishing boards, which typically make decisions during public
meetings, critics worried that rule-making would be done behind closed
doors by bureaucrats.
Schwarzenegger also faced criticism over which boards he proposed to
abolish and which he suggested keeping. He was accused of doling out
favors to political supporters.
He called for ending the Commission on Health and Safety and Workers’
Compensation, for example, which had angered pharmaceutical interests
last year when it called for lowering prescription drugs costs in the
state’s workers’ compensation system.
The pharmaceutical industry has contributed more than $1.6 million to
Schwarzenegger and his campaigns, according to an analysis of campaign
contributions by the Foundation for Taxpayer and Consumer Rights.

Even some of Schwarzenegger’s supporters voiced concerns about the boards proposal.
The California Healthcare Association, which represents hospitals and
has backed several of the governor’s decisions on health issues and
health-related legislation, opposed killing the Board of Registered
And state Sen. Sam Aanestad, R-Grass Valley, a dentist, said he was
concerned about ending several boards that regulate the medical
"I thought the decision to eliminate a number of medical boards and
commissions went a bit too far," said Aanestad, who is typically
aligned with the governor.
Schwarzenegger is pushing an ambitious reform agenda this year on
several other fronts and may have concluded that he needs to focus on
more broad-based reforms before tackling the government overhaul, said
Bill Hauck, president of the California Business Roundtable and
co-chairman of a commission that studied the performance review’s

Schwarzenegger officials insist they are moving forward with some government restructuring.
Ashley Snee, spokeswoman for the governor, noted that Schwarzenegger
has proposed a reorganization of the state’s prison system, for
example, and has hired a private firm to buy products for state
agencies, which is supposed to save $96 million this year by making
bulk purchases. The purchasing program, however, has only saved about
$1 million so far.

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