2. Public interest Bipartisan Governance reform California Forward: Who we are

3. California: A dream in jeopardy California – world-renowned as a symbol of innovation, diversity and opportunity. State’s size and complexity are a growing challenge, magnified by: Historic economic downturn Lack of modern fiscal and management tools Political gridlock and public distrust

4. Back in May More than 75% of likely voters believe the state is run by a few big interests. Just 16% of likely voters trust state government to do the right thing. Strong majorities of adults (63%) and likely voters (71%) think the people in state government waste a lot of taxpayer money. Source: PPIC Statewide Survey: Californians & Their Government May 2009

5. Back in July Schwarzenegger's approval rating was 28%. 1 The Legislature's approval is even worse, 17%. 2 Disapproval of voters own legislator’s performance is 46% – nearly double what it was in December 2008. 3 1.PPIC Survey, Californians and the Environment, July 2009 2.PPIC Survey, Californians and the Environment, July 2009 3.Fairbank, Maslin, Maullin & Associates for California Forward, August 2009

6. Distrust with good reason How well do states manage themselves? Forty one states got higher grades for overall performance – and only two scored lower.

7. CA: “D+” for Fiscal Performance Looking solely at fiscal performance, California earned a “D+” from the Pew Center on the States.

8. Consequences are everywhere Unending budget deficits Political stalemates Inability to set priorities, innovate and solve problems Loss of public confidence Ultimately, poor results in what matters most: education, public health & safety and economic development.

9. To be safe, healthy & prosperous: 1.Entrepreneurs from all regions in CA need to be competitive in dynamic global markets. 2.We need effective schools, adequate infrastructure, smart regulations, efficient services – so all have a chance at a quality life. 3.This will require government to be innovative, efficient, responsive and trusted.

10. The California Forward Reform Goals 1. Redefine state and local responsibilities to bring government closer to people 2. Overhaul the fiscal system to link authority with resources to increase accountability. 3. Improve the political system to encourage compromise, end gridlock, create accountability.

11. Making Change as Fast as We Can Create a 2010 reform package that will stabilize fiscal decision-making and begin empowering community government. Develop during 2010 and 2011 transformational reforms to the structure of government and the fiscal system for consideration by voters in 2012.

12. 2010 1. Responsible Budgets on Time Require policy choices to be financed (Pay-Go) Focus budgets on results, not dollars spent Two-Year Budgets; five-year forecasts One-Time Use of One-Time Revenue Reduce the Budget Vote Requirement Provide Certainty Regarding Passage of Fees

13. 13 The General Fund Rollercoaster (Year over year change in expenditures) FY 1999-00 to 2009-10

14. 2010 2. Government Closer to the People Protect Local Revenue Foster and Fund Long-Term Collaboration

15. What our research shows about trust in California government

16. What CA gets in return for these kinds of reforms? Better reading scores among fourth-graders. Better math scores among eighth- graders. Roads and highways in good repair. More children with health coverage: State Pew Grade₁ Reading₂ Math₃ Roads₄ Children₅ Florida B‐ 224 277 14.2 80.5 New York B‐ 224 280 6.8 91 North Carolina B‐ 218 284 9.5 86.7 Ohio B‐ 226 85 14.4 92.5 Pennsylvania B‐ 226 286 5.5 92.3 Georgia B+ 219 275 19 87.5 Michigan B+ 220 277 12.5 94.1 Texas B+ 220 286 7.5 78.2 California C 209 270 5.7 87.7 Illinois C 219 280 11.6 91.7 1 Source: Pew Center on the States, Grading the States 2008. 2 Mean fourth‐grade reading scores. Source: National Center on Education Statistics, State Comparisons, National Assessment of Educational Progress 2007 3 Mean eighth‐grade math scores. Source: Ibid. 4 Percentage of roads and highways in good or very good condition. Source: Bureau of Transportation Statistics, State Transportation Statistics, 2008 5 Percentage of children with health coverage. Source: Kaiser Foundation, State Health Facts, Health Insurance Coverage of Children 0‐18, 2007