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A Low-Profile Election In California
by Maureen Sirhal
Voters in the center of the nation's high-tech industry will be weighing several ballot initiatives in the Nov. 5 election that are designed to improve the quality of life. But while technology firms are tracking the ballot measures in California, they are mounting little effort in individual races.
Most observers in California politics are predicting that Gov. Gray Davis, despite lower approval numbers, will defeat Republican Bill Simon and Green Party candidate Peter Camejo. Several tech firms and high-profile tech leaders have donated heavily to Davis' re-election campaign. The donors have included Microsoft, Oracle and Sun Microsystems, and even Cisco Systems CEO John Chambers, who is a close supporter of Republican President Bush.
Thanks to redistricting, many state legislative districts are expected to favor Democratic incumbents. Only a handful of races could affect seats in the state legislature.
In Salinas Valley, south of Silicon Valley, the race for the 12th District Senate seat is close. Republican Jeff Denham is challenging Democratic incumbent Rusty Areias. Should Areias win re-election, Senate Democrats could garner a two-thirds majority, which would enable the Senate to override gubernatorial vetoes and meet requirements to raise taxes.
Candidates like Democratic state Sen. Jackie Speier, who has championed privacy legislation, are expected to win re-election easily. The same is true of statewide candidates such as Attorney General Bill Lockyer, who helped spearhead the multistate antitrust lawsuit against Microsoft.
As is the case with nearly every other state, California faces a budget deficit -- of more than $15 billion. Officials blame dwindling tax revenue triggered by the economic downturn. Job growth and employment also are becoming big issues, as many candidates have emphasized the need to help reinvigorate the tech sector. But neither Gray nor Simon has offered many specifics about how they might help the industry or address the fiscal crunch as governor.
Simon often blames Davis' policies for the budget crisis, calling for less taxation and regulation. He has urged cutting the state capital gains tax from 9.3 percent to 5 percent, a permanent gains cut in inner cities and a permanent extension of the Internet tax moratorium.
But tech firms have done well under Davis, who pushed through a 4 percent increase in the state's research and development tax credit. He also vetoed privacy legislation and recently killed a measure that would have created statewide recycling fees on electronics equipment.
The Quality Of California Life
California's tech and business communities are tracking several statewide bond initiatives intended to enhance the quality of life in the state by lowering the cost of housing, improving school buildings and easing congestion. Here is a look at the issues before voters:
- Proposition 46 would raise more than $2 billion from bond sales to fund programs designed to create affordable housing. High housing costs around Silicon Valley and the San Francisco Bay area have made it difficult for technology firms to attract and keep skilled workers. More than $1 billion in bond sales would encourage developers to build more moderate housing, such as rental housing projects, condos and town homes, and would provide aid to some 60,000 homebuyers.
- Proposition 47 would raise more than $13 billion from bond sales to build and repair schools. California tech firms view educational improvement as critical to workforce development.
- Measure B in Santa Clara County aims to direct $585 million in state and federal funds to the Santa Clara Valley Transportation Authority. The money would be used to repair and expand roads and highways in an effort to ease congestion in a key Silicon Valley region. The measure has support from the Silicon Valley Manufacturing Group, which argues that the money would address badly needed road repairs without raising taxes.
Tax Talk In Texas Concerns Techies
Taxes and transportation infrastructure are paramount issues for the Texas high-tech community, which is looking to boost investment prospects and attract more skilled workers.
Texas' budget shortfall is expected to exceed $5 billion, with some estimates reaching as high as $12 billion. That debt prospect has raised the potential for tax hikes. Texas relies on its 8 percent sales tax; it is one of the few states without an income tax. The business community fears that the potential budget shortfall could pave the way for an income tax or new taxes on businesses.
But most candidates are "falling over themselves to say, 'We're not going to raise taxes,'" according to one observer. The Texas Chamber of Commerce is advocating alternatives, including using money from the state's share of the tobacco settlement reached a few years ago.
The state's educational funding system also is emerging as an issue in regions suffering from high property taxes. Those taxes largely fund the school districts, but the current system redistributes funding among wealthy and poorer Texas schools. Gov. Rick Perry and other Republican candidates have expressed a desire to change the funding mechanism.
Texas voters are not confronting any ballot initiatives this year, placing the electoral emphasis on the gubernatorial and state legislative races.
Perry faces Democrat Tony Sanchez, a self-made millionaire. Pouring millions into his own race -- $58 million compared with Perry's $16 million -- Sanchez has criticized Perry for taking donations from the insurance industry when rising rates have been a major concern to state voters. But Perry has made Sanchez's lavish spending a campaign issue as well. While Perry does not advocate new taxes, neither candidate has ruled out the possibility.
The open race for lieutenant governor pits Democrat John Sharp against Republican David Dewhurst. The Texas Association of Business is among the groups backing Sharp based on his record as the former state comptroller. In that role, Sharp instituted several reforms by modernizing state programs with new technologies.
A key state Senate race, meanwhile, sets Democratic incumbent Gonzalo Barrientos against retired Dell Computer executive and Republican Ben Bentzin. The 14th District represents much of Austin's tech sector, and the Austin-American Statesman has characterized Bentzin as the most serious challenger that Barrientos has faced in nearly two decades.
"What you have is this core of state government that has high tech grown all around it," Bentzin said of the district. "Austin is politically split down the middle." While redistricting reduced the region's Democratic hold, Barrientos still is favored to win. But the Texas Legislature likely will remain Republican even if Bentzin is defeated.
New Jersey Plans First Bioterrorism Network
New Jersey would become the first state to implement a network for tracking smallpox vaccinations under a deal announced Wednesday by Gov. James McGreevey and BD, the medical technology firm that will create the system.
The system will be tested at regional clinics in coming weeks, according to a press release from the governor's office. Each clinic will be equipped with mobile immunization stations, which will consist of personal computers the size of a piece of paper and high-quality digital cameras.
Clinic staff will enter personal and medical histories on each patient, and patients will sign consent forms directly on the computers. Digital photographs incorporated into the system will be used for personal identification and documentation of successful vaccinations, and the network will be linked to New Jersey's Immunization Information System.
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