Governor's opportunity to create fiscally responsible Board of Equalization

(As posted in the LA Republican Examiner)


For the past three years, Board of Equalization Members Michelle Park Steel and Bill Leonard have worked tirelessly to try and give business taxpayers opportunities to reconcile their tax debts, only to be consistently opposed by fellow board members Betty Yee and Judy Chu, with State Controller John Chaing often casting the tie-breaker vote to squeeze business owners for every dollar they can. They claim to do so in order to maximize the state’s revenue, but this short-sightedness often results in these businesses leaving the state or simply having to close its doors to liquidate enough assets to pay the board’s imposed debt.

With board member Judy Chu winning Tuesday’s special election to replace former congress member, now Secretary of Labor, Hilda Solis, the opportunity to appoint a third advocate for taxpayers was laid in front of Governor Schwarzenegger. Someone who understands, just as the Governor purports to solicit, that small businesses are the employers of over 70% of the California workforce would symbolize the start the beginning of the business revolution for our Golden State.

But the Governor understands that his selection must also be approved by the State Legislature. So appointing someone like former Assembly Member Ray Haynes or a Tom McClintock “disciple” would prove fruitless. The new selection needs time to build up enough support in the district to run for the seat in the statewide elections in November 2010. The taxpayers need a true advocate who understands what businesses provide to our state, and will ensure that the Democratic legislators will support.

In what may signify as a total understanding of both the opportunity in front of him and the need to have a candidate that the Liberal Democrats in both state houses dare not take on directly, Governor Schwarzenegger appointed former South Bay Assembly Member Jerome Horton, the 2006 runner-up in the Democratic primary to Judy Chu, to serve on the Board of Equalization.

Horton brings a solid reputation and performance record of business-friendly legislation as both a six-year Assembly member representing the 51st District (cities include Inglewood, Hawthorne, Lawndale, Gardena, West Compton and Playa Vista, among others), as well as over 20 years experience working for the State Board of Equalization.

If confirmed by the Democratic Legislature, Horton will become the swing vote on a board that has been split 2-2 between liberal and conservative members. Comparisons to current State Senator Rod Wright, another business-friendly Democrat, have already been spread in leadership circles of both parties, and Republicans would be wise to take advantage of the opportunity to support one who is more aligned with their current cries for lower business taxes and regulations. Democratic veterans know well the similarities between Horton and Wright. Both have established records of switching sides for votes on key anti-business legislation.

In his announcement on Wednesday, Schwarzenegger credited Horton with "supporting tax policies that promote economic growth”. This governor is apparently hoping that pro-business Democrats in California, just as Blue-Dog Democrats are doing across the state, will provide the necessary momentum to challenge their own party’s allegiance to the special interests and anti-business unions bleeding the state economy dry.

This appointment can be summarized as a very bold chess move by the Governor. It will be interesting to see how the leadership of both parties, from their elected legislative leaders to the state party leadership, respond.