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A Letter to the Governor

Governor Gray Davis
State Capitol
Sacramento, California 95814

March 15, 2003

Dear Governor Davis,

My name is Julie McDannold Miller,  President,  United Small Business of California.  We are a small business group with an underlying membership of 5000.  I am writing to let you know how outraged the business community is over the budget deficit you created, as well as your meager and feeble attempts to resolve the crisis.  Make no mistake, Governor Davis, this state deficit was NOT brought about due to a bad economy.  Over the past four years, state revenues have INCREASED by 28 percent!! We have a deficit, Governor Davis, because at the same time revenues increased by 28 percent, you increased costs by 36 percent!! Even the weakest mathematician among us can figure that this flurry of spending, not set off by attendant revenue increases, causes a deficit.  During the same four-year period, Governor, while revenues were INCREASING AND NOT DECREASING, the state hired 91,000 new state workers, creating a new record of 325,564 workers.  As this increase took place under your watch, perhaps you would like to explain to my little businesses how you can justify spending levels so far over revenues that if any of them tried it, they would be bankrupt. 

Now you are asking taxpayers, as well as local governments, to eliminate an exorbitant deficit that we did not create.  You have proposed a massive $8 billion tax increase.  This tax-and-spend mentality will achieve what it always achieves a sharp decline of investment in our great state.  Businesses of all types, along with the more affluent of our citizenry, are already leaving the state in droves.  This massive tax proposal will simply hasten the process.  California must focus on job creation-not taxation.  If you choose LOWER-rather than higher taxes, reform workers comp so that it is affordable once again, and undue the cumbersome and burdensome regulations that the business community finds itself mired in today and you will see a healthy economy reemerge from the ashes in which you have it smoldering today. 

It is time, Governor Davis, to reign in the out-of-control government spending that ultimately falls disproportionately on the shoulders of the small business community in the form of taxes so large so as to threaten the life of the business itself.  Our suggestion is that you form a state commission like the federal Grace Commission formulated by President Reagan in 1981, wherein Resident Reagan utilized business executives in a volunteer capacity to suggest viable ways to reduce wasteful spending and burdensome regulations at the federal level, culminating in billions of dollars in saving to our nation. 

United Small Business of California stands ready to assist you and your staff to see this through to fruition.  Please assist our business community, so vital to the economic health of our great state, by making it happen.  We believe an excellent starting point, Governor Davis, is your aggressive endorsement of SBX11. 


Julie McDannold Miller

United Small Business of California
17221 Roscoe Blvd.  Suite #17 Northridge, CA 91325
Phone 877-791-7705 fax 630-475-3844
E-mail JMM@unitedsmallbusiness.com

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