During the economic boom years of the Davis administration, the California budget expanded to cover Davis's new programs. California's low national K-12 education rankings and Davis's campaign pledge to help education, along with the large majority that elected Davis to his first term and his early popularity, suggest that a majority of Californians supported increases in education spending during the early part of his first term when California was in budget surplus. Polls also showed that increased spending in education was supported by the California voters.^[55] Under the Davis administration, taxes were cut by over $5.1 billion that included a $3.5 billion cut in sales tax and a reduction in the vehicle licensing fees.^[26][56] The cut in sales taxes was mandated due to a 1991 law that required sales taxes to be reduced a quarter percent when budget reserves exceed 4 percent of the state general fund for two straight fiscal years which they did in 1999 and 2000.^[56] Davis also vetoed $5.1 billion in appropriations during that span.^[56]

Davis signing the 2000-2001 state budget. The 2002-2003 and 2003-2004 budgets would prove much more difficult to balance with a dramatic drop in state revenue.

While California's economy was expanding, California was producing record budget surpluses under Davis even after his tax cuts and new spending. According to the California Department of Finance, California had a 10% surplus at the end of 1999 and California was projected to have a 4% surplus at the end fiscal year 2000.^[56] These surplus monies were left in the treasury. Davis claimed to be cautious with state finances.

Then, the dot-com boom that had been fueling California's record tax revenues burst unexpectedly because of the large number of high tech firms in California and California's dependence on state income taxes. Because of the loss of state revenue associated with Proposition 13, California became more dependent on state income taxes. When the dot-com boom turned to bust, state revenues fell while ongoing spending commitments created deficits. Restoring the licensing fees to pre tax cut levels to close the budget gap and stabilize the state's credit rating became unpopular.^[7][57] The beginning shortfall for the 2002-2003 state budget was $23.6 billion.^[58] Davis announced that the 2003-2004 budget shortfall would be $34.6 billion while the Legislative Analyist projected a $21.1.^[59]

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2002 reelection

Main article: California gubernatorial election, 2002

Davis began fundraising for his 2002 reelection campaign early in his governorship. Davis raised $13.2 million in 1999 and $14.2 million in 2000, both unprecedented sums at the time so early in an elected term.^[60] Davis's 1999 and 2000 contributions included contributions from Pacific Gas & Electric and Edison International.^[60] Davis also received large contributions from labor groups, environmental groups, and individuals.^[60]

Arnoldwatch.org, part of their home page is pictured here, was one group that was critical of Davis's fundraising efforts.

Davis' fundraising efforts attracted much attention. University of California Berkeley's Institute of Government Studies claimed that Davis' fundraising skills were "second to none in the political arena" while Senator John McCain called Davis' 2001 goal of $26 million "disgraceful."^[61] One article in the San Francisco Chronicle claimed that Davis was raising $34,000 a day.^[62] Although Davis' fundraising pace was criticized by his many detractors, Arnold Schwarzenegger would later collect contributions at a quicker rate during the early years of his governorship.^[63] Now Arnoldwatch.org, a project of the Foundation for Taxpayer and Consumer Rights which is a nonpartisan organization that is critical of both Democrats and Republicans, called Davis a "pay to play" politician and a "sellout".^[64]

During the 2002 election campaign, Davis took the unusual step of taking out campaign ads during the Republican primaries against Los Angeles mayor Richard Riordan. Davis claimed that Riordan had attacked his record and that his campaign was defending his record.^[65] Polls showed that, as a moderate, Riordan would be a more formidable challenger in the general election than a conservative candidate. Polls even showed that Riordan would defeat Davis.^[66] Davis attacked Riordian with negative ads in the primary. The ads questioned Riordan's pro-choice stance by questioning Riordan's support of pro-life politicians and judges.^[67][68] The ads pointed out Riordan's position of wanting a moratorium on the death penalty as being to the left of Gray Davis, who strongly supported it.^[69][70][71]

Davis' negative ads against Riordan and a variety of other equally important factors explained on the 2002 election page, lead to Riordan's defeat in the Republican primary by the more staunchly conservative candidate Bill Simon. In the first 10 weeks of 2002, Davis spent $10 million on ad: $3 million on positive ads boasting of his record, $7 million on negative ads against Riordan.^[72]

Davis was re-elected in the November 2002 general election following a long and bitter campaign against Simon, marked by accusations of ethical lapses on both sides and widespread voter apathy.^[73] Simon was also hurt by a financial fraud scandal that tarnished Simon's reputation.^[74] Davis campaign touted California's improving test scores, environmental protection, health insurance coverage for children, and lower prescription drug costs for seniors.^[75]Davis's campaign featured several negative ads that highlighted Simon's financial fraud scandal.^[76] The 2002 gubernatorial race was the most expensive in California state history with over $100 million spent.^[77] Davis's campaign was better financed; Davis had over $26 in campaign reserves more than Simon in August 2006.^[76] Davis gained re-election with 47.4% of the vote to Simon's 42.4%. However, the Simon-Davis race led in the lowest turnout percentage in modern gubernatorial history, allowing a lower than normal amount of signatures required for a recall.^[78] Davis won the election but majority of the voters disliked Davis and did not approve of his job performance.^[79][80]

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Other challenges

While polls attributed Davis' declining popularity to the energy and budget problems, some newspaper articles and commentators have identified other issues of Davis' tenure that limited his effectiveness and political appeal. Davis had some trouble in his relations with the California legislature. There were disagreements between the more moderate Davis and the more liberal Democrat-controlled Legislature.^[27] Democrat John L. Burton, the leader of the California State Senate, was Davis' chief antagonist.^[27] In 2003, Republican leader Jim Brulte told The Los Angeles Times that Davis lacked the basics of political collegiality to pull him through hard times. "I never felt I got to know him ... I always felt a little sorry for him".^[28]

Davis' moderate record made it difficult for him to appeal to any core constituency of the Democratic Party. During the recall, Davis failed to gain the full support he needed from his more liberal Democratic base.^[15] He got the reputation of being beholden to supporters and unable to satisfy them.^[28]

Davis' leadership and compromise building skills have also been questioned. Many of the challenges that California faced during the Davis' years required a strong force of personality to forge compromise but Davis lacked such skill.^[28] Davis was also hurt by redistricting in 2000 that made most districts safe for the incumbent party, limiting some legislators need and willingness to compromise.^[28]

Davis' personality was often reported to be aloof and his political style cautious and calculated instead of charismatic and someone the voters and those who worked with Davis could identify.^[15] Davis' personality caused Davis to depend more on political skill such as fundraising to win elections.^[15] Davis' management style and his tendency to micromanage his administration drove people out of his administration and made it difficult for people to present opposing views.^[50]

As Davis left office in 2003, the San Francisco Chronicle published an editorial discussing the legacy of Davis. The newspaper claimed that Davis lacked vision, allowing the legislature and its policies define his tenure, and focused on "robotic governing style" that focused on fundraising instead of personal relationships. The Chronicle commented that Davis was often on the right side of the issues but that being on the right side of the issues alienated the electorate. Davis lacked the charisma and seemed to be more passionate about winning campaigns than governing.^[15] Davis never revealed emotion to the voters.^[81] He often could only spend time on his campaigns talking about his accomplishments instead of providing the voters with a vision.^[4]

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Second term

Davis signs AB 574 on September 11, 2003, establishing a student loan repayment program for members of the State Military Forces.

Davis's second term, which lasted only ten months, was dominated by the recall election. Davis signed into law several controversial measures during the closing weeks of the recall campaign, including one granting drivers' licenses to illegal immigrants. Davis also signed legislation requiring employers to pay for medical insurance for workers and legislation granting domestic partners many of the same rights as married people. He vetoed legislation giving illegal immigrants free tuition for community college. Many of Davis's opponents were furious over the signings of these measures during the final weeks of the Davis administration.^[82] Some political observers say these efforts as an attempt to reenforce support from Hispanics, labor union members, and liberal wing Democrats.^[82] Ultimately, Davis did not have as much support from Hispanics and union members in the recall election as he did in his 2002 re-election.^[15]

Governor-elect Arnold Schwarzenegger, President George W. Bush, and Governor Gray Davis speak to firefighters on November 4, 2003.

Davis was Governor during the southern California fires of 2003 more commonly known as the Cedar Fire. Davis declared a state of emergency in Los Angeles County, San Bernardino County, San Diego County, and Ventura County in October 2003 and deployed the national guard to help in disaster relief. By mid November, the greater South Los Angeles area had been declared a disaster area to help the area cope with flooding and weather related damage due to the fires destroying thousands of acres of vegetation.^[83] The Cedar Fire was Davis' last major event during his tenure as Governor. With Schwarzenegger as the Governor elect, both Davis and Schwarzenegger worked to help in disaster relief. Schwarzenegger went to Washington, D.C. and met Vice President Dick Cheney to lobby the federal government for more disaster relief funds.

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Recall

Main article: 2003 California recall

In July 2003, a sufficient number of citizen signatures were collected for a recall election. The initial drive for the recall was fueled by funds from the personal fortune of U.S. Rep. Darrell Issa, a Republican who originally hoped to replace Davis himself. The 2003 California recall special election constituted the first gubernatorial recall in Californian history, and only the second in U.S. history.

Early in the recall election, Davis called the recall election an “insult” to the eight million voters who had voted in the 2002 gubernatorial election.^[84] The Davis campaign tried to run against the recall Yes/No vote instead of against the candidates that were trying to replace him.^[21] Davis tried to depict the recall as a $66 million waste of money that could allow a candidate with a very small percentage of the vote to become Governor—potentially someone who was very liberal or conservative.^[21] There are no primaries in a recall election. Davis tried to run “outside the recall circus” and to make himself appear gubernatorial and hard at work for California, who had made improvements to education and healthcare.^[21][85] Early August polls showed that over 50% supported the recall.^[21]

In September 2003, Davis conceded that he had lost touch with the voters and he was trying to correct that with numerous townhall meetings.^[23] Poll numbers in September showed a 3% drop in the number of California voters who were planning to vote yes on the recall.^[86] According to some analysts and campaign aides, Davis's town hall meetings and conversations with voters were softening his image.^[86] Many political insiders remarked that Davis had made several comebacks and that he should not be counted out of the race despite poll numbers that showed over 50% planning to vote yes on the recall.^[86][21][5]

Headlines of Gray Davis' defeat in UC Berkeley's newspaper, the Daily Californian

During the recall, Davis blamed some of the state's problems on his predecessor Pete Wilson.^[87] Davis claimed that he would have rather raised taxes on the upper tax brackets instead of restoring vehicle registration fees and college student tuition.^[87] California law requires legislation that raises taxes to gain a 2/3 majority in the legislature. Davis could not gain that majority in the California legislature because that majority would require many Republican votes. The Republican members were firmly against any such tax increases, while raising fees only require a simple majority in the legislature.

Davis tried to define the recall as a right-wing effort to rewrite history after losing the fall election last year.^[87] In a major 19 minute campaign address that was broadcasted statewide, Davis called the recall a "right- wing power grab" by Republicans and he blamed Republicans in the legislature and in Washington for many of the states problems while at the same time he tried to take some of the responsibility for the states' problems.^[88]

On October 7, 2003, Davis was recalled with 55.4% of the votes in favor of the recall, and Republican Arnold Schwarzenegger was elected to replace him as governor. The Bay Area was the only region in California to vote no on the recall: San Francisco rejected the recall by a 4 to 1 ratio.^[89] Davis joined Lynn Frazier of North Dakota, who was ousted in 1921, as the only governors in American history to be recalled.^[89] His final full day in office was November 16, 2003.^[90]

On the night of the recall, Davis conceded defeat and thanked California for having elected him in 5 statewide elections. Davis mentioned what he defined as the accomplishments of his administration such as improvements in education, environmental protection, and health insurance for children.^[91] Davis said he would help Schwarzenegger in the transition and he later urged his staff to do the same.^[92]

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Life after politics

After leaving public office, Davis appeared on several shows, such as The Tonight Show with Jay Leno and The Late Show with David Letterman, as well as a cameo as himself on CBS sitcom Yes, Dear. In December 2004 he announced that he was joining the law firm of Loeb & Loeb.

Davis spends 80% of his workdays practicing corporate law as "of counsel" to Loeb & Loeb in Century City, a firm where all attorneys wear casual attire, even Davis. American Lawyer magazine called the firm one of "best places" in the country to work.^[7]

Davis has done several media interviews about his legacy. He appeared prominently in the documentary Enron: The Smartest Guys in the Room.^[93]

The debate about his legacy and role regarding the energy woes that proved to be his downfall remains. Davis feels complete vindication because of the revelation that Enron manipulated the California energy market and because of Schwarzenegger's (then) low approval ratings.^[93] In a CNN interview on August 5, 2005, Davis said that he had no interest in running for Governor again, although he had been urged to run by some Democrats.

He was a guest lecturer at UCLA's School of Public Policy in 2006 alongside former Republican State Senator Jim Brulte. He wrote an introduction for a journalist's book on the Amber Alert system for missing children, a cause he championed.^[7]

On April 23, 2007, Davis was appointed to the Board of Directors of animation company DiC Entertainment, as a non-executive.^[94]

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See also

United States Army Portal

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References

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External links

Wikiquote has a collection of quotations related to:

Gray Davis

Wikimedia Commons has media related to:

Gray Davis

• Gray Davis Digital Library (active web site, launched 2006)
• Gray Davis's Web site as Governor (from the Internet Archive)
• Gray Davis at the Internet Movie Database
• lnterview With California Governor Gray Davis, Wife Sharon Davis
• Department of Energy article on Davis's energy conservation efforts

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Political offices held

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