Moorlach: Challenge awaits new governor

S.J. Cahn

Whoever wakes up this morning as the governor of California faces a

daunting challenge.

That was the message early Tuesday morning from a man who has

delivered warning cries before: County Treasurer John Moorlach.

“It’s pretty bleak, and obviously some cuts have to be made,”

Moorlach said of the state’s economy during a meeting of the Newport

Beach Sunrise Rotary.

Moorlach, who has been in his post since 1995, stressed that a

lack of money coming into the state has not been the cause of the

present economic turmoil.

“The problem hasn’t been on the revenue side, it’s been on the

spending side,” he said, adding that any proposals to raise taxes to

solve the problem are “pure baloney.”

The worst of that spending he broadly characterized as

“pay-for-play” deals between special interests -- he mentioned in

particular prison guards, energy companies, Indian gaming casinos and

state employees who receive a wide array of retirement benefits --

and government leaders in Sacramento.

And the worst of the players? Gov. Gray Davis, whom Moorlach

referred to as “the most tragic practical joke played on this state.”

In this environment, it is no surprise that voters are rebelling,

he said.

But it is encouraging, he added as he quoted Samuel Adams: “The

tumult of the people is very properly compared to the raging of the

sea. When the passions of a multitude become headstrong, they

generally will have their course.”

Moorlach, himself, rode into office on a wave of county passions

following the 1994 bankruptcy, which he had predicted during an

unsuccessful run for the treasurer seat.

“Bankruptcy” came up more than once during the talk, only now as

an extreme solution to the state’s budget crisis.

If the state declared bankruptcy, it could then rework deals with

unions receiving pensions to lower spending, he said.

He also pointed out that he is working on a ballot measure that

would cap spending at the average of the previous five years. That

way spending growth would be tied to a historical number and not be

able to spike during years of economic growth.

The goal, he said, must be to look at everything else before tax

increases.

Moorlach estimated that the recall would succeed at 55% to 45% and

argued the case for Republican Arnold Schwarzenegger as the best

candidate.

“I’m hoping for Arnold, but it could be real interesting tomorrow

when you pick up your papers,” the Costa Mesa resident said.

“He’ll be a very fascinating person to watch,” he said, because

Schwarzenegger will not be beholden to special interests or

contributors and will be able to dominate -- and win -- political

debates.

“He doesn’t put up with a lot of guff,” he said, launching into an

impression of the candidate shutting up state senators or even the

whole Legislature.

Moorlach did call the accusations that Schwarzenegger had groped

and abused women disturbing.

And his mention of the Los Angeles Times drawing criticism for its

coverage of the race and the publication of the accusations drew

strong agreement from the 25 Rotarians and guests assembled at the

Five Crowns restaurant.