Where are our elected leaders? When government can’t come up with responsible solutions, where is a good, law-abiding, conscientious, tax-paying citizen or business owner supposed to turn? To the neighbor next door with the fuel-efficient car, the drought-tolerant landscaping and the “stay-cation” planned for next weekend? But many of us have had to make tougher choices than simply cutting back on get-aways and eating out. Our homeless population is growing, unemployment numbers are alarming and there is worse to come unless some tough choices are made by those in government. Sacramento would do well to remember the take-home lesson from Marie Antoinette: stop offering friends treats and start acting like responsible adults.

We shouldn’t have to hold a symbolic guillotine over the Legislature’s head—or threaten recalls—to get them to make the tough choices. Is Sacramento willing to admit that the cycle of enthusiastic tax-and-spend can not function as it has in the past? One relevant example is that many businesses now have fewer employees and are thus paying less in taxes and therefore the government is receiving less revenue. Instead of easing up on businesses to promote hiring, over 2300 new bills were introduced this legislative session with new mandates, new taxes proposed! Where are the incentives for new equipment purchases, new hires, regulatory relief and lower fees which will attract new companies to California and encourage entrepreneurs? More business translates into more revenue for the state. It’s just that simple.

Fortunately, we can look to a few people for either example or ideas for responsible solutions. Businesses in California have all felt the strain of this economy and most have instituted hiring freezes and have been forced to lay off many workers. Some Sacramento leaders propose staff raises and few, if any, cut-backs. Steve Poizner, Insurance Commissioner of California, is one of the only leaders in Sacramento brave enough to reduce his staff to adjust to the times. Government should look at boards, committees and staff to make the first cuts and also as a first step to regain our trust. A yard sale on the Capital lawn might be a nice touch.

Indeed, it’s time to reinstate the Gann Amendment to impose a ceiling on spending, being careful not to incentivize the Legislature to raise taxes—a fatal flaw of the recent Prop 1A. Increased borrowing has been discussed and it may be necessary. But it doesn’t solve any problems, it only eases the symptoms. Gubernatorial candidate Meg Whitman has commented that the solution to the budget crisis is cutting bureaucracy. At this juncture, would a constitutional convention, as suggested by the Bay Area Council, be a smart move? Is the slow and measured approach to reform suggested by California Forward a better alternative? And are the failed May 19 measures enough of a wake-up call for Sacramento to change the culture of “what’s in it for me” versus “what’s best for the state as a whole?” How the Governor and the State Legislature respond to this rebuke by the electorate will be our answer. In the end, it’s up to all of us to make sure California’s economic vitality and quality of life are restored. OCBC is ready to assist.