O.C. business leaders receptive to governor's plan | brown, tax ...

IRVINE ? Gov. Jerry Brown's call for a combination of tax hikes and massive public works projects was warmly received when he pitched it to 50 of Orange County's top business executives Thursday.

On the heels of Wednesday's unveiling of the plan, Brown is touring Southern California to garner support for a temporary tax initiative, high-speed rail construction, a water project, public pension reform and key changes to education.

Gov. Jerry Brown cracks a smile while talking to the press after meeting with the Orange County Business Council Thursday in Irvine. He talked about raising the retirement age, cutting the budget and investing in a bullet train.

MINDY SCHAUER, THE ORANGE COUNTY REGISTER

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While the 300-member Orange County Business Council has not voted to support any of the specific plans, OCBC Executive Director Lucy Dunn said the group has been supportive of those proposals in the past and that Brown's presentation Thursday at an Irvine roundtable with 50 key members was greeted with enthusiasm.

Commercial real estate broker Fran Inman was among those embracing Brown's approach, including sweeping cuts previously signed into law by the governor.

"I just think it's time for that kind of commitment and passion," she said. "I think we have to roll up our sleeves and get to work. ... It's pretty clear we need both cuts and additional revenue."

Brown pitched his proposed tax initiative as costing half as much as the temporary tax hikes imposed under Gov. Arnold Schwarzenegger ? and which expired last year. That point was emphasized by Dunn when she and Brown met with reporters after the hour-long roundtable meeting.

"It's half the tax that Gov. Schwarzenegger raised," she said. "It's less money than we paid in 2010."

Brown's four-year proposal calls for an additional half-cent sales tax and a marginal tax hike of up to 2 percent for the state's highest earners in order to cover a $9 billion budget deficit. Brown last year wanted legislators to put the measure on the ballot, but it was blocked by the Republican minority. So now Brown has launched the measure as a citizen's initiative, with petitions being circulated to qualify the measure for the November ballot - although those same Republicans remain critical.

"If I lay out the truth, I think the public will vote for it," Brown said.

Dunn noted that her group endorsed the effort to have legislators place the measure on the ballot provided it was accompanied by regulatory reforms. She said the group had previously backed a similar water project, the high-speed rail project, and reforms to public pensions and schools.

One potential obstacle facing Brown and his ballot measure are three other proposed initiatives to hike taxes. Brown acknowledged that if more than one competing tax hike was on the ballot, it lowered the chances of any of them passing.

"If they all go down, it doesn't help anybody," he said, adding that he hope to convince proponents of other plans to back his measure instead.

Brown also emphasized the improving business climate in California, saying that job creation here last year was 50 percent higher than the national average. In particular, he touted his new business development office.

"We are prepared with highly skilled people to cut the red tape," he said.

Brown didn't flinch when asked about the state losing jobs to places like Texas.

"Texas specializes in minimum-wage jobs," he said. "We have more higher-wage jobs."

He was also asked about critics who complain that Brown should not be adding massive water and rail projects at time when other services are being slashed.

"For some, chewing gum and jumping rope is daunting," he quipped. "You have to do both. For rail and water, we're talking about the next 100 years. This state - it's a building place. It's important for America that California lead the way."

Contact the writer: 714-796-6753 or mwisckol@ocregister.com

Source: http://www.ocregister.com/news/brown-336427-tax-measure.html

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