Business Leaders Concerned Over Supermajorities
Governor Brown's temporary tax hike, Proposition 30, is now law, thanks in part to support from business leaders. The same elections also led to possible Democratic supermajorities in both houses of the state legislature, however, and that has some businesses worried.
The Governor promised no spending binges after winning the historic vote. But business leaders at the Council's annual Economic Institute forecast on Thursday weren't so sure about a veto-proof legislature.
Council President Jim Wunderman says business will look to Brown and to moderate Democrats to hold the line. "Having spoken to the Governor about this a lot of times," Wunderman said, "he truly does want to be someone who is a fiscally responsible, restraint-oriented governor. This is not a person who has it in his core to go throwing money around."
But some at the meeting worry the governor will be under a lot of pressure to restore programs and services cut in recent years -- particularly if the supermajorities hold up when all the votes are counted.