California Capitol Review #602

 

September14, 2001

 

Terrorist attack

End of the legislative session

 

(( Melissa ))

Thank you for joining us.

Our hearts go out to the victims of this week’s tragedy.

 

The events that stunned our nation were closely watched here in California.

 

We’ll examine the long-term impact, concerns about safety and the economy as well as the effects on California.

 

Plus Jack will have the pressing business facing the legislature in the final week of session.

 

We begin with reaction from our state Capitol.

 

Capitol Package

 

(Assemblyman Tony Strickland, [R] Thousand Oaks)

A lot of a confusion in terms of, you know, how soon we’re going to get out of the building.

 

Outside the state Capitol, a flurry of activity as workers were asked to leave…

 

The Capitol was closed, tours cancelled, sadness and disbelief…

 

(Woman)

Oh, it reminds me of Pearl Harbor.

 

(Assemblyman Tony Strickland, [R] Thousand Oaks)

It’s hard to even put into words.

 

Leaders were shaken as well…

 

(Robert Hertzberg, Assembly Speaker)

All four of those planes were headed to California.  We don’t know what else could be in store.  It’s surreal.  It’s horrible.

 

(Dave Cox, Assembly Minority Leader)

Well, this is just a devastating event, and the legislative session has been cancelled for today.

 

(Robert Hertzberg, Assembly Speaker)

For a bunch of reasons, out of respect for this just extraordinary tragedy, and also out of an abundance of caution, and to run through all the drills and make sure we sweep the building.

 

(Mike Flores, California Secretary of Foreign Affairs)

It’s pretty surreal in terms of what’s taking place.  This morning, I grabbed the kids, and we all sat in bed early on to watch it.  It was unbelievable sitting there trying to explain to a seven-year-old and an eight-year-old what was taking place.

Flores was part of an early morning meeting to plan strategy…

 

Now he’s one of the last to leave, and in place of lawmakers and staff at the Capitol, a bomb-sniffing dog.

 

(Dave Brunell, California Highway Patrol)

As of this morning, we’ve decided to go with a heightened state of security.

 

(Melissa Crowley, California Capitol Review)

It’s ten o’ clock on Tuesday morning.  What should be a very busy day during this last week of session finds the halls completely deserted.  Everyone here has been asked to leave.

 

The California Highway Patrol chose to move Governor Gray Davis to another secure location.  In West Sacramento, he monitored emergency efforts and spoke later in the day…

 

(Governor Gray Davis)

We’ve taken measures to control vital assets on the ground and in the air in California, including the electrical grid, the state water project, and a number of our bridges.

 

And a command center was set up at the Sacramento Airport.  On Tuesday, the FAA ordered all fights grounded on US airports closed…

 

Back in the heart of California’s government, no chances were taken on suspicious cars or packages, and inside it was striking what was not said…

 

A place normally bustling now so quiet on a day when words seemed to fall short…

 

END CAPITOL PACKAGE

 

(Melissa)

Here’s the latest:

More then 2,000 victims have been injured and at least 3,000 people are still unaccounted for…

 

Though most airports are open, new security procedures have been put into place. One measure will eliminate curb side check in, forcing travelers to go inside…

 

And the United Postal Service is slowly resuming their services but a statement has been issued by FedEx and UPS that they will no longer guarantee overnight deliveries until further notice…

 

Joining us now to share more on what this all means, specifically for California, are:

Colin Carter, an expert in international trade issues and Professor of Agriculture and Resource Economics at UC Davis,

 

Miki Vohryzek-Bolden  a terrorism expert and California State University professor,

 

and Robert Dugan, board member of the American Red Cross.

 

BEGIN DISCUSSION #1

 

(Melissa)

We appreciate you all making time for us, and Miki, we’ll start with you.  The horror of watching those pictures, I don’t think we’ll ever be the same, but what we’re hearing is that there are going to be some major changes about how we do business as far as even putting bulletproof plates in the cockpit.  How far will this go?

 

(Miki Vohryzek-Bolden, CSU Terrorism Expert)

Well, I think Americans can anticipate and will not be surprised with increased security measures.  Airports, government buildings, courthouses, and other areas in which there is a possibility of a terrorist act, but, you know, there’s that balance between individual civil liberties and the extent to which you go in order to protect the public generally, and I think that’s a balance that the government authorities are aware of, individuals are aware of.  We are going to be willing to be inconvenienced in terms of the airport, bus, travel, government buildings.

 

(Melissa)

When we were talking at the Capitol after this happened, some of the lawmakers were saying the horror was that it really hit home that they could be targets, that anyone is actually a target, and we actually spoke to some folks that said it’s horrendous that this is what had to take place for changes to happen.  Should we have had better security in place?

 

(Miki Vohryzek-Bolden, CSU Terrorism Expert)

Yeah, I mean, at our airports, we thought we had had fairly good security.  They talk here in the state now is to put a fence around the Capitol, for example.  I guess I have difficulty with seeing how that would really stop anyone.  The idea that they set up barriers and structures that the CHP have talked about is fairly effective.  You don’t want to create a fortress situation.  I think that that has a psychological impact on the people, so you really balance the level of security you need to protect a facility and the people within the facility and the notion that you don’t want to put walls up around every building in order to protect them.

 

(Colin Carter, UC Davis International Trade Expert)

Miki, doesn’t it sort of bring into question the quality of our intelligence if something on such a large scale could actually happen on one single morning?

 

(Miki Vohryzek-Bolden, CSU Terrorism Expert)

Well, I clearly think the government authorities, the intelligence agencies, are sitting down and reconstructing what happened and how it happened, but Americans are very aware that governments, airlines, and government buildings get threats every day, and we’ve seen—Robert, you’ve indicated the increase in the number of bomb threats—

 

(Melissa)

In California, Robert?  You were mentioning that immediately after—

 

(Robert Dugan, American Red Cross)

I know that there were some.  Right, there were some.  In the wake of any disaster or terrorist attack, we hear about an increase in bomb threats and building evacuations, and fortunately none of them are borne out, but it happens.

 

(Melissa)

A very real threat that a lot of people are talking about in the wake of this tragedy is the financial one and the economic implications as to how far this will go, and we were speaking, Colin, that the markets might not open until Monday.  Specifically in California, what does that mean?  We know that a lot of people in the tech sector, for instance, and agriculture are concerned about the international implications about what this could do.

 

(Colin Carter, UC Davis International Trade Expert)

Yes, for California, we are closely tied to the Asian economies, of course, and the markets in Asia are relatively stable.  However, in the aftermath, there will be a flight of so-called quality investments such as US treasuries, which could mean less foreign investment in Asia, which would slow the growth of the Asian economies, so there could be some long-term impacts associated with that.

 

(Melissa)

What do you see immediately as the biggest cloud on the horizon in terms of California?

 

(Colin Carter, UC Davis International Trade Expert)

Immediately there is concern about what happens when the stock market opens on Monday, and other than that, the short-term impact on California is not large.

 

(Melissa)

People are so shaken; they’re afraid to fly now.  We hear that vacation trips and tourism are suffering.  The mail is not running; businesses can’t get packages out.  This is going to be a long time as the FBI continues to sift through suspects and as we continue to see some of the fallout from this tragedy.

 

(Colin Carter, UC Davis International Trade Expert)

Yes, that’s right, and clearly the costs of doing business.  You mentioned travel, but also the costs of conducting of international transactions, the shipment of containers, etcetera will be more costly.  There will be additional time delays for many, many years to come.

 

(Melissa)

We know that the mail service is saying that they’re doing a lot by ground now.  If you live within six hundred miles, your letter will probably make it.  If not, expect a delay, just one of the small inconveniences.  Robert, is this changing how we respond to disasters of this magnitude?  The Red Cross is always prepared, but how did this affect your organization.

 

(Robert Dugan, American Red Cross)

You know, I probably need to start by saying we have seen the greatest outpouring of support ever experienced in the form of volunteer donations, blood donations, and financial support, but, of course, there’s a lot more work to be done.  We’ve never seen devastation like this in America before.  Our organization is caught a little off-guard by the lack of air transportation.  Traditionally, when there’s a large magnitude disaster like this, we’re able to ship volunteers from all over America and all the Red Cross chapters to the scene of the location; whereas, here, there has been a little bit of a lag time there, and it has also affected blood deliveries to the east coast as well, but, you know, as far as mobilization of volunteers goes, we have done a great job setting up all of the shelters for the victims, families of the victims, families of the rescue workers, families of the police, the firemen, and the volunteers, so we’ve actually been able to deploy as scripted out there to New York, but we’ve also got a lot of chapters here in California that are mobilized and ready to go when the call comes and when we can get them there.

 

(Melissa)

And the California response, can you tell us a little bit about that?

 

(Robert Dugan, American Red Cross)

Sure—

 

(Melissa)

And for the folks that are at home watching this, can you tell us what is most needed at this point in time?

 

(Robert Dugan, American Red Cross)

Okay, I would say that probably the most needed is financial support, and financial support through the Red Cross to the Disaster Relief Fund, and that applies to anybody in California, wherever you are.  It will go straight to disaster relief.  That’s what the Red Cross is chartered to do and mandated by the government to do.  Even though we’re not a government agency, we’re purely voluntary-funded.  We do disaster relief for the country, and, really, worldwide, so resources that go to the disaster relief fund are the number one need so that they can be spent on the ground by the local decision makers where necessary.  Now, the rest of California, they’ve mobilized support.  Our disaster volunteers have called in and volunteered their time, and we’ve just seen a great outpouring, so continue with that local support.  Watch for local blood needs.  You’ll hear in your local media when there is a need for more blood, or call now to your local blood shelter and make an appointment for a future donation.

 

(Melissa)

If there is, at all, anything good in this whole thing, it has been the outpouring of support, which has been quite touching, those acts of kindness.  The other toll that I think we’re looking at is the mental toll, the anguish.  What do we tell our children, Miki, about what happened?

 

(Miki Vohryzek-Bolden, CSU Terrorism Expert)

I think you need to talk.  I think you need to allow them to almost express themselves, to allow them to describe it in their words and not in your words, to create the venues for talking.  I’m speaking at a high school tomorrow.  I think we need to continue to dialogue and to begin to understand because of the level of devastation.  I have a 13-year-old, and we kept him home that day and just spent some time with him to talk about it.  Now, Colin, you have a ten-year-old, and I think this if of a magnitude that they will remember this, but we need to help them understand, and I guess the other point that really concerns me is that we don’t begin, as a country or as a people, to attribute characteristics to a class of people.  We need to remember that this was an action on the part of some individuals, and it did not represent them as a people.

 

(Melissa)

And I think that is an important message.  Robert?

 

(Robert Dugan, American Red Cross)

If I could add onto the mental health piece; that is so critical.  The Red Cross is designated by the federal government to provide mental health services during aviation disasters.  We have an aviation incident response team that has been deployed to both the disaster areas as well as to the airports affected, so I would encourage anybody who is starting to feel those feelings that they’re not in control of their emotions and that they’re really being swept up by the day, which is probably all of us, seek help.  Seek help from your local Red Cross.  They can direct you to someone who is trained to help you deal with the mental turmoil of what’s happened because we’ve all been affected, whether we know someone on the east coast who we haven’t been able to reach or whether we just sat at home and watched the images.

 

(Melissa)

And, Colin, this is not going away.  This has incredible long-term implications; it’s basically changed the American way of life.  A lot of folks wanted quick action when they first hear about what happened, and many folks and the government has stressed this is going to take a very long time to find out who is responsible and bring them to justice. Meantime, what are the implications as we try to go on with our lives, and in a business sense, try to get the economy going.

 

(Colin Carter, UC Davis International Trade Expert)

Well some of the markets remained closed, however the bond market opened today, and it was up strongly. To me that indicates two things, first of all there is a continued domestic and international faith in the U.S. government, people are buying U.S. securities. And secondly it also suggests that the is  a so called flight to quality so, as I mentioned going into  the next few years, you will see investors taking a more conservative path. Which will have implications for the growth of foreign economies, that depend on foreign investment from the U.S.

 

(Melissa)

On that note, we are all out of time. And we want to thank our guests very much for being with us.

In addition to potential security changes, there are also pressing state business to attend to. As we promised, we will get to that in a moment. But the horrific events did spotlight, as we mentioned, some truly heroic efforts. And here in California Jack Cavanaugh tells us how some tried to help ease the  pain in any way they could.

 

END OF DISCUSSION # 1

 

VOLUNTEERISM PKG.

 

(Shannon Blasingame, brought flowers)

Well, we thought that, you know, if we were sent home it was kind of something that we should do. It kind  of tugged at our heart.

 

(Adrian Nunenkamp, donated blood)

It’s something I personally feel that everyone should do and needs to do because when you have something this bad, it just emphases the point.

 

Three thousand miles across the country, tragedy has struck, but hundreds of Californians were pulling together in any way that they can…

 

(Brina Williams, donated blood)

There is not a lot else I can do, I’m not there, I can’t administer help to anyone. Besides praying, this is one thing I can physically do.

 

The injury total still unknown, the Sacramento blood bank reaching out to help, and many California residents answering that call…

 

(Leslie Botos, Sacramento Blood Center)

There has been a tremendous response, but we are going to have to continue having people respond. Not only today and tomorrow, but over the very long haul.

 

In search of people with universal type O blood. One way to help victims not so close to home...

 

(Leslie Botos, Sacramento Blood Center)

The turnout that we have seen is absolutely incredible, its people who are feeling so helpless that they have nothing else to do. But they know that they can donate blood.

 

And besides blood, the Sacramento Urban Search and Rescue team donating their time and services. The team left for New York City, to help find survivors and victims in the rubble, of where the World Trade Center once stood…

 

(Captain David Whitt, Sacramento Fire Department)

We are very adept at and highly trained to heavy debris removal, shoring, access and breaching. Anything you can think of this team can do.

 

Also back at the Capital, Governor Davis lowered the flag at half staff. And is asking all Californians to say a prayer for those on the east coast.

 

(Gray Davis, Governor)

Our hearts and prayers go out to all the victims, no matter where they reside.

 

(Jack Kavanagh, California Capital Review)

It seems as if every Californian is trying to help. If you are interested in donating blood, please call 1-866-82-BLOOD for more information.

 

Meantime, long hours and pressing issues face our state lawmakers who despite the tragic events, find themselves with  business that they must attend to.

 

Approximately 100 bills were up for a vote in the final week of session. Adding to the workload, the 10 year redistricting process, and the sheer volume of bills and last minute amendments.

 

But despite the loss of time by canceling session Tuesday, and the tragedy overshadowing businesses, leaders say work must be done. One big bone of contention, seems to be the Edison Bailout Bill…

 

(Jim Brulte, Senate Minority Leader)

Well, I’m not supporting it. The private sector has shown a willingness to purchase all of part of Edison. Which would eliminate the need for the taxpayer or the ratepayers to bail out Edison.

 

(Robert Hertzberg, Assembly Speaker)

I think we are closer than other, at least the ones I’ve been reading about in the newspaper, there has been a couple of issues. But by in large, we try to use as much of the framework of the senate, as we possibly could.  And so I think there will be some changes, but my sense is that we can reach consensuses.

 

The report of Democrat tug-of-wills between senator John Burton, who is backing a higher rate for workers compensation, the second lowest in the nation, and Governor Davis is overblown according to Burton.

 

(John Burton, Senate President Pro Tempore)

I’m trying to do something that I think is right for injured workers, the governor’s got a different point of view.

 

DISCUSSION #2

 

(Jack Kavanagh, California Capitol Review)

Joining us to share more on the last week of session and what this week’s events mean is Dan Schnur, Republican consultant and Gale Kaufman, Democratic consultant. Of what happened in the legislature, or  what is about to happen in the legislature as we go into the last session, what’s most important here? Is it the Edison Bailout, the energy issue?  Is it the redistricting? What’s the most important thing to come out?

 

(Gale Kaufman, Democratic Consultant)

Well, if you mean to members personally, I’m sure redistricting is, but if you are talking about the state as a whole, I would have to come down on the Edison Bailout. And whether or not there is going to be final closure on something that gets to the Governor’s desk. I think all year, up until this week, the energy issues and energy bills have been the most important, critical things that the legislature has worked on. And they are close, I think, to an agreement.  We will have to see what happens in the next 24 hours.

 

(Jack)

Do you agree Dan? Will there be an Edison Bailout, or will this not happen and this goes into bankruptcy court?  What’s going to happen?

 

(Dan Schnur, Republican Consultant)

I don’t know what’s going to happen with the Edison Bailout, Jack. I will say that the events over the past week, to some degree, have overshadowed what is going on in the state capitol. And obviously the legislatures need to keep working because when life returns to normal, or what ever approximation of normal it returns to, the ramifications of what they do this week are going to be long standing.  Having said that, the terrorist activity has had a very significant affect on two of the most important things going on in the capitol this week. Number 1, it appears now that the bond sale, the 12 billion dollars of energy bonds that the state of California looking to sell, may be delayed, because of the upheaval  of the financial markets. Second, and more interesting, at least for governor Davis, is it looks like there is going to be a significant economic consequence to these terrorist activities. In particular for California, which relies so much on trade and on tourism. The ongoing delays on air travel and shipment of cargo can have a significant affect on California’s economy. And for Gray Davis going into a reelection year, this increases the pressure on him, not to sign John Burton’s workers comp bill. Already, California’s business community is calling it a job killer, but with the state already teetering on the brink of recession, and these added impetus, which looks to have a downward affect of California’s economy, it’s much, much  harder for Davis to sign a bill which California’s business community find so unacceptable.

 

(Jack)

And if he did not sign the bill, that would leave California with what is has now, the second lowest worker’s compensation in the country.

 

(Gale Kaufman, Democratic Consultant)

Right.  I was having trouble doing all that math so quickly. I think what happened this week will have long term ramifications.  It’s way too early to figure that out, but all the more reason to be very serious about what has been in the works at this point. The Edison Bailout and even the worker’s comp bill, which, yes,  has economic ramifications but is incredibly important to injured workers, and I think that you can’t lose sight of that reality whether there is an economic situation that we have to deal with down the line in the next couple of months.

 

(Jack)

Do voters in California really care about redistricting?  I know that there are minority groups that are threatening to sue.

 

(Dan Schnur, Republican Consultant)

Except for communities that are just beginning to realize their political potential, like the various minority and ethnic communities in California, redistricting is really too much of an abstract for people to really engage with in too much interest, but as Gale said earlier, for politicians, it is their lifeblood.  Moving one line a block or two can mean the difference between victory and defeat, and because, as we all know, the most important thing to politicians is staying in office—Edison aside, worker’s comp aside, nothing gets more intense interest from the members of the legislature, from the members of the congressional delegation and their staffs and advisors than how these lines are drawn.

 

(Jack)

Has the political landscape totally changed now after the events of this week?  We are taping this program on Thursday, and we just saw President Bush and Laura Bush both on television, and President Bush, frankly, was cool, candid, in command, in control, emotional at the right time, absolutely everything you’d ever want in a President of the United States.  It was a wonderful, very necessary performance today.  Has that changed politics in California, and if it has, what should we look for?

 

(Dan Schnur, Republican Consultant)

I don’t know that these events have a direct impact on the California political landscape.  If you remember back in 1990, only a few months before the election between Pete Wilson and Diane Feinstein for Governor, Saddam Hussein invaded Kuwait, and there’s some speculation that a Republican, male senator somehow benefited from that over a female former mayor of San Francisco.  In next year’s Governor race, not only is it more than a year away, but those sort of demographic wedges don’t exist, so, at least in terms of that political impact, it’s hard to see the California landscape being tremendously altered.  Having said that, I do want to come back to the point about California’s economy because if it does end up going into a downturn because of the impact of the lack of air travel, the increased cost of cargo flights, and all the other restrictions we’re facing, it becomes much harder, not only for Governor Davis, but for any incumbent member of the Legislature to run for reelection in an economic downturn when you’re making very, very difficult budget and economic choices.

 

(Jack)

Do our priorities change, though, as voters.  For example, during the election campaign, there was a lot of discussion about social security and drug benefits.  Do all those issues now fall off the cliff?

 

(Gale Kaufman, Democratic Consultant)

No, I don’t think they fall off the cliff.  In the short run though, I think what is going on in the national arena and security for people and things like that take precedence.  I think people are looking for strong, decisive leadership right now on the national and the state levels, and in the simple view you could say that that bodes well for incumbents, but in the next year, calm, cool, collected leadership—you said that this morning the president looked like a leader on television, and I think that there’s discussion over the last couple of days of just pulling the country together and a bipartisan need for calm, and I think those things take priority over the locked box discussion, social security issues, and anything else that’s on the table.

 

(Jack)

Not since Franklin Roosevelt has a President faced something as serious as this, and does this mean that the Bush Presidency restarts today?

 

(Dan Schnur, Republican Consultant)

That’s exactly right.  Whether it turns out for the better or the worse is something that’s impossible to predict right now, but everything that has happened in the Bush Administration up until this point will have long since been forgotten by voters by the time they go to the polls in 2004.  This not only defines the Bush Presidency, but as you said, it starts the clock over.  One other point on that, Jack because it really is difficult to tell at this point what’s going to happen in terms of the President’s future because this is an ongoing test.  In times of national crisis, the people and the leaders of both political parties rally around their leader, but if you look back through recent history, certainly not through tragedies of this scope, but other similar challenges that recent Presidents have faced, you can see all sorts of outcomes.  Bill Clinton was able to redefine his Presidency in the aftermath of the Oklahoma City bombing.  Jimmy Carter never recovered from the crisis in Iran, so I think the point you made about the President’s remarks today was extremely acute, Jack.  I think as time passes, it’s going to be a continuing test for him.

 

(Jack)

In the last few seconds, it means it could go either way?

 

(Gale Kaufman, Democratic Consultant)

Absolutely.  I think it could, and I think people are giving Bush the benefit of the doubt right now and will for the foreseeable future, but we are all looking for strong leadership and for a plan of action.

 

(Jack)

All right.  Gale Kaufman, thank you very much.  Dan Schnur, thank you very much.

 

We would like to know what you think about this week’s events.  Please send us an e-mail to capitolreview.org or a letter to the address you see on the screen.

 

Melissa?

 

(Melissa)

Thanks Jack.  As a reminder, if you’d like to help, contact your local Red Cross office. 

 

As we mentioned earlier, concerns about the economy had started long before this tragedy, but recent events heightened those concerns.  Next week, State Treasurer Phil Angelides and State Controller Kathleen Connell about our economic health.

 

(Jack)

That’s all we have for this week.  Thank you very much for joining us.  We’ll see you next time.

 

(Melissa)

Goodnight.