I have spent many years as a public servant advocating an attractive California business climate through tax credits, trade missions, and attempts to streamline and consolidate the state's burdensome regulatory environment.

I have supported, and would continue to support as governor, tax credits to help California's businesses grow. As governor, I would sign legislation to expand the investment tax credit to software production, food processing, and warehousing equipment. I will seek to lower franchise fees for small businesses. I will also seek to encourage industry research by instituting tax incentives for research and development. I sponsored the single largest tax credit in the country - 24 percent for research and development in conjunction with a California university.

I will use all of my authority as the governor of California to oppose any tax passed by the Legislature that would treat Internet transactions any differently than any other transaction. I will also be a strong advocate for affirmative legislation that would prevent any of California's taxing authorities from imposing any discriminatory taxes on the Internet.

I do not support any increases in personal income or sales taxes. Californians do not need additional tax burdens, and California's businesses need the state's support for continued growth of our economy. As our economy continues to flourish in its recovery, current levels of taxation should continue to provide a stable revenue stream sufficient to provide necessary government services.

Any reductions in current taxation levels should be carefully considered. I feel our budget surplus should be wisely managed to help put California's public schools back on track. I have stated that I support the return of a small percentage of the surplus to the taxpayers, as they too deserve to benefit from our state's economic recovery. I want to reiterate, however, that any tax refund paradigm that I support will not threaten the revenue stream for important state or county services.

I intend to provide government with support needed to succeed without jeopardizing the growth and success of business in our state. If businesses don't succeed, there are no jobs and no revenues. We all succeed when business succeeds.

While California's economy continues to thrive, we can afford to spend more on schools, infrastructure, health care, and other critical programs to improve the lives of Californians. I do not want the state to forget about "IOUs" (registered warrants required to pay the state's bills when the Legislature and governor failed to approve an on-time budget) that I, as state controller, had to issue in the early 1990s. Consequently, we must not overspend during our prosperity.

As state controller, I learned the effective use of state audits to streamline our government, making the best use of every tax dollar. For example, my efforts uncovered half a billion dollars in waste in the Medi-Cal system. We cannot sacrifice Californians' hard-earned tax dollars to bad management of public resources entrusted to government. As governor, I will audit the State Lottery and many other programs to achieve true and responsible cost savings. This will in turn free up more money for use in our schools and medical facilities.

I am a builder of consensus and coalition. The most successful government plans involve the participation of all stakeholders. My administration would bring government together with business and labor to design solutions that work for everyone.

Lieutenant Governor Gray Davis has a 23-year record of public service as chief of staff to then Governor Jerry Brown, as a member of the state Assembly and State Controller. He is the Democrat Party's nominee for governor.

Davis: "If businesses don't succeed, there are no jobs and no revenues. We all succeed when business succeeds."