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-- but we want to find out how the economy is affecting the nation's largest state.
California of course and then of course the second largest city San Francisco joining us now with the mayor of San Francisco and Atlanta -- could be.
California's next governor Gavin Newsom welcome to whom they are once again to the program.
Thanks for having me on -- big smile here especially at a time where you guys finally passed the budget but.
We just heard from John -- the controller yesterday at California so they still don't have the budget their hands but what's happening with San Francisco you've got up a big budget deficit shortfall.
And how do you make up for that.
Well -- mean good news in San Francisco because of the fiscal management of the city our bond rating was just upgraded.
As a state is now lower than Louisiana the lowest bond rating of any.
A state in the nation so we're doing I substantially better than the rest of the state unemployment rates about six point 6% the states now north of 10%.
As so we're in a position to sell our bonds when a position to get people.
Working again -- -- not out of the woods as you suggest with -- big budget deficits we're gonna have to make tough decisions but it's also an extraordinary opportunity.
To do a lot of the things candidly that we've been talking about doing for decades but there was never the political will to make the tough choices.
Well mayor let's broaden that a picture we -- a little bit now god knows why anybody would want to run for governor of California but if you -- Governor of California how would you address a 42 billion dollar deficit years ago.
It's easy to sit on the sidelines I'm still trying to -- said.
As a smaller version and a seven billion dollar budget locally they've got a 140 plus million dollar total budget.
A look at the reality is they were able to address most of that 41 point six billion dollars they're still not out of the woods as the economy continues.
To slow down in the state we're certainly going to be back in the next few months still tweaking this next fiscal year budget.
So it's easy for me to say I want it done the taxes -- -- -- on the borrowing are one -- done that cuts the reality is I think they found a reasonable blend of all of the above the most alarming though.
Candidly from an economic.
Perspective as well as an ethical and moral one is the education cuts.
Eight point four billion dollars in cuts and that's gonna devastate our ability to compete with the other states across this nation.
For that matter to compete around the world how we got invested human capital my biggest concern about the state.
Is not necessarily on a balanced book it's our ability to recruit and retain the best and the brightest and that's our educational system.
-- you just said you wouldn't have done.
It would have raise taxes on certain things and and the you don't really sound like an ultra liberal Democrat when you talk about things like that and I was looking for some of the things that you proposed.
You would propose a two year payroll tax exemption on new jobs eliminating property tax for the next two years on new business equipment purchased in San Francisco.
Wow I mean for a Democrat we don't often hear that tell us what's behind your thinking there.
On addition of those cited two examples we also want to -- -- -- in a liquidity and credit crunch we're gonna distribute tens of millions of dollars and zero interest loans.
Micro loans as well as larger loans for medium and small businesses look the reality is I come from the private sector I've.
Been proud to have developed over thirteen.
Fourteen small business is credit close to 2000 jobs that come from that real world perspective and one thing I understand.
Is that you can't be pro job and anti business there's nothing more frustrating.
For me to listen to some folks attacked the business community -- -- talk about the importance of job growth and job creation so we've got -- a strong tax base to invest in the things that.
Can only only San Francisco's investing in and that's universal health care we're doing it we're not talking about it universal preschool were doing it not talking about it.
And investing in growing areas where economy will continue to outperform the rest of the state Biotech life science in that attack.
Areas the digital media digital arts and -- a great opportunity the opportunity of a lifetime's.
Green technology which is real I know -- a lot of rhetoric behind it but it's taking shape out here in California.
All right but having said all that we do have to emphasize you still have a budget gap of what is it over 550 million dollars right now that's that huge budget gap how -- -- -- it.
Well we're gonna have to last game.
Our labor unions for wage concessions were asking.
For more focus on looking at redundancies we wanted this -- -- -- bureaucracy.
And that's why I've eliminated over 11100 jobs since the last seven months not easy thing.
To do a tough thing to do personally not just professionally.
Where reduce the size of our vehicle fleet renegotiating -- cellphone contracts changing -- what we do business in terms of just the data management and City Hall eliminate -- departments.
And getting rid of other redundancies as relates to departments that can be managed more effectively by combining.
Their functions so those are some of the ways and -- we're gonna have to make the tough choices in terms of cuts and those are never easy.
But within those -- will -- new ways of doing business where you can actually make cuts but still expand services that we have a program without recreation centers where we're going out to that.
Non profit community and weren't actually connect services in the non profits into our municipal rec centers.
Actually expanding services and reducing the cost of government there's creative ways of working way out of these things.
You should write on cutting the budget for dummies and then hit the congress.
Because just -- the hospital.
About a little things I know about things like the cell phone contracts and really getting down into the nitty gritty -- but every dollar saved definitely matters.
Mary -- you have that.
Gravelly Bill Clinton voice from being on the road campaigning you're in second appearance at a -- right the the banana we -- Understand.
That I did sense of fun and that no one of the -- states yet no not down we were data senators -- we also just stuff than that.
Plaster county one of the -- -- counties in the country not just the state California and I've been doing town halls up and down the state -- tea.
It's really true right now people are focused on the economy they're focused on their own personal budgets not just the state and federal budgets.
People have tremendous amount of anxiety again I don't want it sound redundant because everybody comes on since the same thing.
But I'll tell you were much more united as a state than a lot of the politics.
That is examples may appear.
Well David -- -- that Fox Business would be the perfect place for you to officially -- -- governor candidacy and you know I mean -- we're here for you there.
You -- I appreciate you being here for -- I'm just.
I'm not ready for you you may be ready pentagon have announced.
Maybe just -- -- now I understand the politics are right but mayor I have to be honest you have let down terribly.
A group of constituents who were relying on you.
To hold the line on bottled water and just recently to -- every Cisco chronicle spotted your hybrid SUV.
With a budget and the water bottles in the back modest zero or not -- -- It -- is -- much harder than I thought to reduce my dependency on bottled water by it is.
It's I I confess I can talk to you to your listeners and viewers.
All right we didn't get your running for governor on fox but at least we did get a confession on bottled water right up.
Yes you have.
Well you know all the good free and you could -- easily blame that on on a staffer -- because of what they had or are blamed it on the Republican Party.
What it seriously though if you do continue -- your listening tour you you have to go talk to other counties such as.
Orange County a very conservative county as well as -- you said.
Beyond that you know you've got to fight as -- stimulus is concerned for some of that money and you're you're battling up Oakland and Berkeley as well too tough competitors -- you.
Get that stimulus money to San Francisco.
But one of the things are guys are now relying on staff in Washington DC I've actually set out some of my -- -- to Washington to meet with department heads directly.
The some of the cabinet secretaries and their key.
I staff and it's only way we're going to be able to compete for those dollars -- -- formula dollars those are on auto pilot.
And we're gonna get a reasonable percentage of those formula dollars to states will and the cities and counties it's the competitive dollars the hundreds of billions of dollars that are out there.
Where you have to actually prove your resolve prove your ability to compete against those cities that you -- against other regions across the state of California.
And across this country and that's what we're going to be.
Front and center making sure that our grant applications are appropriate.
Making sure that where lies in terms of how we're advancing to spend the money but more importantly about how accountable to actually having spent the money.
We recognize that it's takes one or two of us to screw this thing up.
And it's going to be ridiculed across the airwaves and clearly put apparel this entire stimulus strategy.
And subsequently some other strategies if it -- the TARP to.
Or other efforts to get this economy moving again so we gotta take some responsibility.
Mayor we did have the mayor of Trenton, New Jersey on not long ago one of the things that in his wish list as far as the stimulus plan was at thirty million dollar museum.
Now you know may be in good time some like that my past but is there anything like that in your budget and your wish list for federal funds.
The other maybe even here's the first thing we were just a speaker Pelosi over the weekend we are looking to rebuild one of the most size and -- unsafe thoroughfares in the United States of America.
The I 35 structure in Indianapolis was rated.
Fifty out of a hundred by the Federal Highway Administration are Doyle drive the impediments to the Golden Gate Bridge the -- the West Coast.
Is -- to.
Out of a hundred arguably the fifth most unsafe -- in the United States we have raised over 900 million for 100 million short.
This is a perfect example of a shovel ready project design work environmental working on regional cooperation and support that's how will be spending our money.
Mayor keep us posted and now we're here for you that we can't say it enough when you're ready that I let us let us know I thank you very much better -- -- that from fox and I appreciate you guys mayor Newsom by the way before we get.
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