California schemin'
The Golden State needs big, bold ideas to solve the puzzle its future presents'
In each era of modern American history, California has been at the forefront. It emerged from the Depression and World War II as the nation's archetype of the suburban middle class. It marked the end of government expansion with Ronald Reagan and Proposition 13. And it ushered in the age of technology, as the birthplace of Apple, Intel and Hewlett-Packard.
Californians are still willing to push the envelope, as they demonstrated with the unprecedented recall of a governor in 2003 and the passage of an ambitious but untested stem-cell initiative the following year. But the creativity and risk-taking in the population is not matched in government.
The policy debate in Sacramento remains trapped in an outdated Cold War between the traditional left and right. Solutions in health care, education, energy and budget are stalled because both sides have the power to kill a big idea but not to pass one.
As Gov. Arnold Schwarzenegger said in his State of the State speech on Thursday evening, "California is innovation." And his call for a 10-year building boom at a staggering cost of $222 billion is bold and inspiring. But it was not innovative.
Innovation means policies that recognize the new opportunities and demands created by emerging technologies, a growing population and a globalized, economic transformation. It would break the left vs. right stalemate by drawing from the best principles and goals of each side. And it would describe a new way to teach students, or treat patients or develop communities that were not possible during the last California building boom.
"Bring me your innovative ideas," the governor said in his speech.
So, as California enters an historic election year, let's look at seven big ideas especially well suited for America's most entrepreneurial state Each one cuts across left-right polarities and could be ripe for picking by candidates in either party -- or both parties.
-- The next generation's Homestead Act: Today's middle class owes much to the Homestead Act of 1862 and the GI bill in 1944. Fully one-quarter of adults today can trace their wealth to the Homestead Act, and the GI Bill has returned $7 to the nation for every $1 invested.
Similarly, expanding the ownership of financial assets should be the cause of the 21st century.
British Prime Minister Tony Blair set the example last year by establishing a law that bestows upon every British newborn a government-funded savings account. And in Kentucky, a bipartisan group is working on a "Cradle to College" program that would donate state funds to a pretax savings account for every child born.
This is a rare opportunity to redefine the role of government in a way that meets the liberal goal of new opportunity for youth -- particularly the disadvantaged -- and President Bush's vision to make "every citizen the agent of his or her own destiny."
-- Lower prices for greater efficiency: Energy is simultaneously a tremendous curse and an enormous opportunity for California. Growing demand and shrinking resources have made fuel prices exceptionally volatile in the state, resulting in price spikes last year that cost Californians $6.5 billion more than in 2004. But few places are better positioned to develop the revolutionary green technologies that are in growing demand worldwide.
Right now, California should adopt a plan called "Three in three," with the goal of reducing the state's fuel consumption by 3 million gallons a day -- or 5 percent -- within three years. The benefits would be enormous, with lower fuel costs, cleaner air and a new, cutting-edge industry.
The goal is also well within reach. For example, Californians today are already driving 300,000 alternative fuel vehicles, but they're stuck running regular gasoline because there's only one ethanol station in the state.
-- A Legislature that looks like California: California's political dysfunction is clearly demonstrated by voter trends. Participation is alarmingly low, the Republican and Democratic parties are shrinking, and their future is ominous, because more than 40 percent of voters under age 23 are registering outside the two major parties.
A new and vibrant California democracy would allow more candidates a viable chance and offer more choices for voters. Election systems in place around the world could help.
Instant Runoff Voting, used for the first time in San Francisco last year, is designed to encourage voter participation by reducing negative campaigns, giving voters a wider range of choices and broadening support for election winners.
Proportional voting systems also promise a greater representation of California's rich political diversity, including voices that are nonexistent today, such as urban Republicans, rural Democrats and independents.
-- Hiram Johnson redux: Nearly a century ago, Gov. Hiram Johnson created the state's initiative process because he believed lawmakers were failing to act in the people's interest. Today, as demonstrated by the utter lack of competition for district seats in California, lawmakers still have a conflict when it comes to the rules for their own offices.
Like the initiative, the Citizens' Assembly is a populist tool to address issues where legislators are conflicted. As demonstrated in British Columbia last year, 160 adults were randomly chosen to participate in an 11-month Citizens' Assembly that was assigned the task of improving the province's democracy.
In the end, the group placed its recommendation on the ballot. And the success of the model was affirmed by the dedication of the participants and the 58 percent support their recommendation received from the electorate.
-- Universal coverage for universal responsibility: Employer-based health coverage is an anachronism in a new economy where the average job tenure is shrinking and companies compete globally.
The most promising and politically feasible route to universal coverage is to make an adequate level of health insurance mandatory, accessible and affordable for all individuals.
That means government, employers and individuals each share responsibility for extending insurance to the 7 million Californians left out today.
California could also take a first step toward such a universal system by ensuring that all children have access to affordable care and -- like immunization or education -- that parents take responsibility for enrolling their children.
-- Rethinking "smart growth": For decades, smart growth doctrine has opposed suburban sprawl and directed enormous resources to urban centers and structures for moving many workers over increasingly long distances. But the attraction of lower prices, bigger homes and better schools has defied this strategy.
Between 1990 and 2000, 93 percent of all growth in the Bay Area occurred in suburbia. And with recent population loss in the cities, the suburban growth trend has increased to 140 percent since 2000.
In the future, "smart growth" should attempt to make suburbs work better by creating regional "villages" -- essentially mini-cities -- that can serve as pockets of culture, mixed-use housing and commerce.
Combined with increased telecommuting, these strategies offer the best hope for ratcheting down the demand side of traffic.
-- Greater retirement savings options: For those workers who have them, 401(k) savings accounts provide a simple and valuable opportunity to ensure adequate resources in retirement. But largely because most small businesses don't offer the pretax accounts, barely 40 percent of California workers participate in one.
For a modest cost, California could ensure that every worker in the state has access to the important benefits of pretax savings. In Washington state, officials are in the process of creating a government-sponsored 401(k)-style account that will be available to every worker.
Officials estimate that the startup cost of the program will be $13 million over five years, after which it will be self-sustaining.
Californians could certainly be forgiven for voter fatigue, since this will be the state's fifth consecutive election year. And despite all of the money and attention directed to voters in recent years, there has been remarkably little progress.
If the upcoming election becomes another messy blame game between the candidates, California will suffer yet another setback. But a gubernatorial campaign also offers an opportunity for candidates to describe their vision for the next administration. It's a chance for them to step back and consider the unique promise of an exceptional state.
It's clear that Californians are willing to think creatively and take risks. The opportunity for candidates is to do the same.
David Lesher is the California program director at the New America Foundation. Contact us at insight@sfchronicle.com.
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