It
is hard to imagine a worse election for California’s business community than
this year’s March primary. The next Legislature will be more anti-business
than any Legislature since at least the middle 1970s.
There are a
number of reasons why this is so. This election had the lowest turnout of
voters in California history. Just 20 years ago in the 1982 gubernatorial
primary, 52 percent of registered voters went to the polls. Four years ago, 42
percent turned out. The March 5 turnout was only 33 percent. We now have a
democracy without citizenship.
There are
many reasons for the low turnout, not the least of which is the permanent
March primary, a misguided product of our urge to be a player in presidential
politics. This should be the last March primary ever. Senator Ross Johnson
(R-Orange County) has a bill with bipartisan support to divide the
presidential primary from the primary for other state offices and to move the
state primary to September. That way we could vote for president early and
for other offices at a later primary, as most states do.
Then there
is the matter of who did and who did not vote. With few exceptions, only the
most partisan voters turned out, and again with few exceptions the most
extreme candidates were the ones nominated. This is especially true among the
Democrats, where the so-called “progressives” triumphed in most close
primaries.
While
Governor Gray Davis might argue that as a centrist Democrat, he wants a strong
business climate to create jobs, the “progressives” view the corporate world
as predators that must be restrained for the benefit of consumers. Trial
lawyers were major backers of the “progressive” cause because the current
Assembly has killed several bills to expand their power to bring lawsuits
against business.
The next
Assembly will probably see an increase of about five anti-corporate Democrats
in the Democratic caucus, and an equal decline among the so-called “moderate”
Democrats. The ratio between the two parties will not change that much
because all seats were drawn to be safe for the incumbent party in the 2001
redistricting, but the intraparty dynamics will change a lot, especially among
the Democrats.
Just one
example: State Senator Sheila Kuehl (D-Los Angeles), who helped bankroll the
“progressive” campaign, is the leading candidate to replace the lame-duck
Senate president pro tem, John Burton (D-San Francisco). There is no question
that trial lawyers and others on the left will fare better in the next
Legislature than they have in this one. After all, to the victors go the
spoils, and the victors in the Democratic primaries were those farthest to the
left.
As an
example: JobsPAC and other pro-business groups tried to impact the Democratic
primaries on behalf of more moderate candidates, but with little success.
JobsPAC spent $387,000 for independent expenditures in four Democratic
primaries and lost three. Californians for Common Sense, consisting of beer
distributors, Chevron/Texaco and Sempra Energy, spent $375,000 on five
Democratic primaries and lost all five. On the other hand, the California
Alliance, funded by trial lawyers, the League of Conservation Voters, and
California Nurses Association, the main “progressive” independent expenditures
committee, spent $683,000 and won four of six Democratic primaries.
All this
occurred because the extremely low March turnout came at a time when
California was forced to return to a closed primary. If business wants to
blame someone for this miserable state of affairs, they can blame Justice
Antonin Scalia and his colleagues on the U.S. Supreme Court. They overturned
California’s open primary law.
That law,
Proposition 198 passed in 1996, allowed any voter to vote for any candidate in
a primary election. The dynamic was that in safe districts, voters from the
less dominant party voted in the primary of the more dominant party, and this
tended to moderate the eventual winner.
As a result
of the incumbent gerrymander of districts enacted in 2001, almost all
legislative districts in California are dominated by one party or the other –
there are almost no marginal districts – and there will be almost no fall
legislative contests. The Legislature nominated in March will be the one that
takes office after November.
If the
primary is closed, in a gerrymandered legislative district, in a low-turnout
election, do not be surprised if only the party activists turn out to
vote. And the party activists will nominate the most liberal Democrats in a
Democratic primary and the most conservative Republicans in a Republican
primary.
The
Republicans are less of a factor in this equation because they do not divide
on business issues; the divisions among Republican candidates are on social
issues such as abortion rights. But among Democrats, the big issue in several
primaries was whether you were pro- or anti-business. The anti-business
position generally came down to the need for more government regulation to
protect consumers, more opportunities for consumers to file class-action
lawsuits, and increasing the tax load on business and high-income individuals
rather than cutting budgets in tight economic times.
Thanks to
these dynamics, business can look forward to a more hostile Legislature next
year, especially in the Assembly, regardless of who is elected governor.