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Davis policies buffeted by recall Once adamant about no deficit spending, Davis was prepared to finance billions in debt over five years, making peace with local governments, Indian gambling tribes and a Democrat-controlled public education establishment angry over hits they would have taken under his earlier proposal. Now the recall campaign is raising the stakes on dozens of other legislative decisions heading the governor's way, from a local income tax to driver's licenses for undocumented workers. "It's hard to imagine how you even handle a situation like this," said Mark Baldassare, research director at the Public Policy Institute of California. "He's got to be very aware of the implications of all of his actions." Consider these developments: * The California Professional Firefighters, a longtime Davis supporter, is leading a labor-backed campaign to oppose the recall and has donated at least $118,000 to the cause. The firefighters also are behind a bill allowing cities and counties to impose local income taxes for public safety programs. Davis has not taken a position on the plan, proposed before the recall bid began. "We believe the governor is going to look at our legislation now the way he's always looked at our legislation, which is on the merits," said firefighters' spokesman Carroll Wills. * While Wills insists the governor's supporters aren't using the recall as leverage, he says Davis' opponents are doing just that. From the start, the rationale Republicans have cited for the recall is that Davis should be held accountable for the state's budget crisis. And Senate Republican leader Jim Brulte warned fellow GOP lawmakers last week that he would campaign against them if they agreed to tax increases. "If they get an early budget, the steam goes out of this" recall, Wills said. "So it's in the interest of the Republicans to hold out on the budget as long as possible." Meanwhile, he said, "The presence of the recall in their minds makes them believe they can get more out of the governor. It's become a bargaining chip, in their hopes." Sunday's June 15 constitutional deadline for passage of the budget passed with no action taken. Brulte says his threat was consistent with his no-new-taxes position and had nothing to do with the recall campaign. * Two unions representing state employees and prison guards have yet to attach their names to the anti-recall group; advocates don't expect them to as long as Davis wants contract concessions because of the state's $38.2 billion budget shortfall. * The Operating Engineers, representing public and private transportation workers, succeeded in persuading the administration last month to restore millions of dollars in proposed cuts from state transportation funds. The union last week gave $75,000 to the anti-recall group. Cindy Tuttle, political director of the union, Operating Engineers Local 3, said the group has historically supported the pro-labor governor and that his budget revisions played no role in the decision to donate to the anti-recall campaign. * As the recall campaign proceeds, lawmakers are debating dozens of measures to curb soaring costs to businesses of providing workers' compensation for injured workers. Davis has pledged to sign comprehensive reforms to reduce premiums, but some proposals could anger campaign donors in the legal and medical communities. Davis is also under pressure from businesses to scale back injured worker benefits. Among major anti-recall donors, at $100,000, is Zenith Insurance Co., one of a handful of workers' comp carriers in California.
Stanley Zax, chairman of the company, said he would contribute against the recall even if one had been launched against former Republican Gov. Pete Wilson. "People
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