Berggruen Institute on Governance | Think Long Committee for California

<!DOCTYPE html> <html> <head><script type="text/javascript" src="/_static/js/bundle-playback.js?v=HxkREWBo" charset="utf-8"></script> <script type="text/javascript" src="/_static/js/wombat.js?v=txqj7nKC" charset="utf-8"></script> <script>window.RufflePlayer=window.RufflePlayer||{};window.RufflePlayer.config={"autoplay":"on","unmuteOverlay":"hidden"};</script> <script type="text/javascript" src="/_static/js/ruffle/ruffle.js"></script> <script type="text/javascript"> __wm.init("https://web.archive.org/web"); __wm.wombat("http://berggruen.org/councils/think-long-committee-for-california","20130712150804","https://web.archive.org/","web","/_static/", "1373641684"); </script> <link rel="stylesheet" type="text/css" href="/_static/css/banner-styles.css?v=S1zqJCYt" /> <link rel="stylesheet" type="text/css" href="/_static/css/iconochive.css?v=3PDvdIFv" />    <title>Berggruen Institute on Governance | Think Long Committee for California</title> <link href="/web/20130712150804cs_/http://berggruen.org/assets/application-72a375453fc9a2efe431bcba4ebb4f7b.css" media="all" rel="stylesheet" type="text/css"/> <script type="text/javascript"> var localizedShowMoreText = "Show more"; var localizedShowLessText = "Show less"; var localizedEllipsisText = " ..."; </script> <script src="/web/20130712150804js_/http://berggruen.org/assets/application-8b0f362434e8724d53ba4e55a3a805bb.js" type="text/javascript"></script> <meta content="authenticity_token" name="csrf-param"/> <meta content="Ni/kYn0y+8SRzhNtAwhGIZu3YTz2DGN1G+N3He/bf0A=" name="csrf-token"/> <script type="text/javascript"> var _gaq = _gaq || []; _gaq.push(['_setAccount', 'UA-35901629-1']); _gaq.push(['_setDomainName', 'berggruen.org']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 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long-term future.</span></p> </div> </div> </a> </td> <td class="councilBtn"> </td> </tr></table> </div>   <table id="councilTable" colspacing="0" cellspacing="0" cellpadding="0"> <tr> <td colspan="2"> <div class="breadcrumbs"> <a class="breadBack" href="/web/20130712150804/http://berggruen.org/">< Homepage</a> </div> </td> <td></td> </tr> <tr> <link rel="stylesheet" href="/web/20130712150804cs_/http://berggruen.org/css/jquery.rollbar.css" media="screen"/>  <script type="text/javascript" src="/web/20130712150804js_/http://berggruen.org/js/jquery.easing.1.3.js"></script> <script type="text/javascript" src="/web/20130712150804js_/http://berggruen.org/js/jquery.mousewheel.js"></script> <script type="text/javascript" src="/web/20130712150804js_/http://berggruen.org/js/jquery.rollbar.min.js"></script> <script type="text/javascript"> // $(window).ready(function(){ // // scroll homepageTableTwoColCScroller // if($('#membersScroller')){ // if($('#membersScroller').height() > 1024) { // 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<div class="memberHeadshotCaption"> Nicolas<br/>Berggruen </div> </a> </td> <td class="memberImageTableCellR"> <a class="memberImageLink" href="/web/20130712150804/http://berggruen.org/councils/think-long-committee-for-california/members/david-bonderman" <div class="memberImage"> <img alt="David_bonderman_1351539537" class="memberImage" src="/web/20130712150804im_/http://berggruen.org/uploaded_images/david_bonderman_1351539537.jpeg"/></br> </div> <div class="memberHeadshotCaption"> David<br/>Bonderman </div> </a> </td> </tr> <tr> <td class="memberImageTableCellL"> <a class="memberImageLink" href="/web/20130712150804/http://berggruen.org/councils/think-long-committee-for-california/members/eli-broad" <div class="memberImage"> <img alt="Eli_broad" class="memberImage" src="/web/20130712150804im_/http://berggruen.org/uploaded_images/memberMainImages/eli_broad.jpg"/></br> </div> <div class="memberHeadshotCaption"> Eli<br/>Broad </div> </a> </td> <td class="memberImageTableCellR"> <a 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href="/web/20130712150804/http://berggruen.org/councils/think-long-committee-for-california/members/condoleezza-rice" <div class="memberImage"> <img alt="Condoleezza_rice" class="memberImage" src="/web/20130712150804im_/http://berggruen.org/uploaded_images/memberMainImages/condoleezza_rice.jpg"/></br> </div> <div class="memberHeadshotCaption"> Condoleezza<br/>Rice </div> </a> </td> </tr> <tr> <td class="memberImageTableCellL"> <a class="memberImageLink" href="/web/20130712150804/http://berggruen.org/councils/think-long-committee-for-california/members/eric-e-schmidt" <div class="memberImage"> <img alt="Eric_e_schmidt" class="memberImage" src="/web/20130712150804im_/http://berggruen.org/uploaded_images/memberMainImages/eric_e_schmidt.jpg"/></br> </div> <div class="memberHeadshotCaption"> Eric E.<br/>Schmidt </div> </a> </td> <td class="memberImageTableCellR"> <a class="memberImageLink" href="/web/20130712150804/http://berggruen.org/councils/think-long-committee-for-california/members/terry-s-semel" <div class="memberImage"> <img alt="Terry_s_semel" class="memberImage" src="/web/20130712150804im_/http://berggruen.org/uploaded_images/memberMainImages/terry_s_semel.jpg"/></br> </div> <div class="memberHeadshotCaption"> Terry S.<br/>Semel </div> </a> </td> </tr> <tr> <td class="memberImageTableCellL"> <a class="memberImageLink" href="/web/20130712150804/http://berggruen.org/councils/think-long-committee-for-california/members/george-pratt-shultz" <div class="memberImage"> <img alt="George_pratt_shultz" class="memberImage" src="/web/20130712150804im_/http://berggruen.org/uploaded_images/memberMainImages/george_pratt_shultz.jpg"/></br> </div> <div class="memberHeadshotCaption"> George Pratt<br/>Shultz </div> </a> </td> <td class="memberImageTableCellR"> <a class="memberImageLink" href="/web/20130712150804/http://berggruen.org/councils/think-long-committee-for-california/members/laura-d-tyson-1" <div class="memberImage"> <img alt="Laura_d_tyson" class="memberImage" src="/web/20130712150804im_/http://berggruen.org/uploaded_images/memberMainImages/laura_d_tyson.jpg"/></br> </div> <div class="memberHeadshotCaption"> Laura D.<br/>Tyson </div> </a> </td> </tr> </table> </div>   </td>  <td class="councilTableCellC">  <div class="columnTitleC columnTitleC_spacer" style="margin-left: -10px; padding-top: 15px; "> <div class="columnTitleL">DOCUMENTS</div> </div> <div id="activityScroller" style="margin-top: -14px;"> <div class="documentsContainer"> <a style="text-decoration:none;" href="/web/20130712150804/http://berggruen.org/councils/think-long-committee-for-california/documents/a-blueprint-to-renew-california"> <div class="documentButton">"A Blueprint to Renew California" <div class="councilButtonSelectedBodyTextOPEN"> Report of the Think Long Committee (2011) </div> </div> </a> <a style="text-decoration:none;" href="/web/20130712150804/http://berggruen.org/councils/think-long-committee-for-california/documents/what-is-the-think-long-committee"> <div class="documentButton">What Is the "Think Long Committee?" <div class="councilButtonSelectedBodyTextOPEN"> <img alt="Playbtn" src="/web/20130712150804im_/http://berggruen.org/assets/playBtn-ad821ae4658714a44078263d07ccfdfc.png" style="opacity:.5; vertical-align:middle;"/> <span style="">VIDEO</span><br/> </div> </div> </a> <a style="text-decoration:none;" href="/web/20130712150804/http://berggruen.org/councils/think-long-committee-for-california/documents/the-reform-agenda-after-the-california-election"> <div class="documentButton">The Reform Agenda After the California Election <div class="councilButtonSelectedBodyTextOPEN"> </div> </div> </a> </div>   <div class="columnTitleL" style="border-top: solid 1px #ddd; margin: 50px 10px 20px -10px; padding-top: 10px;">COUNCIL ACTIVITY</div> <div class="activityPanel"> <div class="activityDate"> 5 October 2012</div> <div class="activityHeader">Council Update</div> <div class="activitySubheader">A Ballot Initiative, Tax Reforms, and Raising Infrastructure Investment</div> <div class="activityBodyCopy"><p>Since the release of the Think Long Committee’s final report, <a href="/web/20130712150804/http://berggruen.org/files/thinklong/2011/blueprint_to_renew_ca.pdf" target="_blank">A Blueprint to Renew California</a>, last November, we have proceeded to act long, rolling out our proposed reforms on tax and governance over several election cycles stretching to 2018. The Think Long Committee is working with the legislature and governor, but is also engaging in the initiative process, in which the public votes directly on policies. </p> <p>Here are the three areas of immediate action:</p> <p>1. We have joined with a bipartisan reform group, California Forward, to place the Government Performance and Accountability Act (GPAA) as an initiative on the November 2012 ballot. Our political action arm contributed $1.5 million to help gather the one million signatures necessary to qualify the proposition for a public vote.</p> <p>As a new experiment in governance, we developed the elements of this initiative through a “deliberative poll” in which 400 citizens, chosen by sampling to represent the population as a whole, gathered to discuss, with the help of experts, what changes might make state government more responsive and effective.</p> <p>The key elements that emerged include two-year performance-based budgeting, transparency in legislation to prevent back door deals at the last minute, devolution of power to localities by providing more flexibility in how they implement state programs, and greater discretion for the governor to make budget cuts when bipartisan agreement cannot be reached in the legislature.</p> <p>These elements are all reflected in the GPAA on November’s ballot.</p> <p>2. We are positioning our bipartisan tax reform for the 2014 general election along with advocating a Rainy Day Fund that would put away budget reserves for cyclical downturns. How we ultimately proceed will depend on the fate of other tax initiatives on the current 2012 ballot.</p> <p>The Think Long tax plan would raise $10 billion in new revenues annually for paying down debt, education and local infrastructure by extending a sales tax to services (not now taxed in California, although services constitute half of the state’s $2 trillion economy) while reducing income taxes across the board in a way that retains the state’s progressive rate structure.</p> <p>The need for tax reform remains clear. California’s deficit has ballooned to $17 billion as expected tax collections from capital gains and high-end earners failed to materialize with the depressed price of Facebook and other tech stocks after IPOs this year. Even though more than $1 billion has been cut from the University of California and CalState college budgets since 2008, the state still spends more on prisons than higher education.</p> <p>3. Along with Laura Tyson – a Think Long and 21st Century Council member who was Bill Clinton’s top economic advisor -- and McKinsey’s Lenny Mendonca, we have been working together with the governor’s office on an infrastructure investment vehicle that can attract large institutional investors – from California’s own Public Employee Retirement System (PERS) to the China Investment Corporation (CIC) – to projects in California. Presently, the state has a $750 billion infrastructure deficit.</p> <p>As part of this effort, our institute arranged a meeting between Governor Jerry Brown and Gao Xiqing, president of CIC, to explore investment opportunities for China in California.</p></div> </div> </div> </td>  <td class="councilTableCellR"> <div class="columnTitleR">FEATURED MEDIA</div> <div class="featuredMediaContainer"> <div class="fmPub">U-T San Diego</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://www.utsandiego.com/news/2013/apr/06/democratic-governance-after-the-end-of-power/">Democratic governance after the end of power</a></div> <div class="fmAuthorOnHighlight"> - Nathan Gardels</div> <div class="fmPub">The Economist</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://www.economist.com/news/business/21571106-some-ideas-making-government-more-businesslike-fixing-common-affairs">Fixing Common Affairs: Some Ideas for Making Government More Businesslike</a></div> <div class="fmAuthorOnHighlight"> - Schumpeter</div> <div class="fmPub">Oxford Union</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://youtu.be/U1h63Q-VYnw">Is California Broken?</a></div> <div class="fmAuthorOnHighlight"> - Nicolas Berggruen and Nathan Gardels</div> <div class="fmPub">Los Angeles Times</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://latimes.com/news/local/la-me-reform-20121126,0,4357352.story">Reforming California: Easier Said Than Done</a></div> <div class="fmAuthorOnHighlight"> - Evan Halper</div> <div class="fmPub">San Francisco Chronicle</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://www.sfgate.com/politics/article/Prop-31-Budget-overhaul-defeated-4014974.php">Budget Overhaul Defeated</a></div> <div class="fmAuthorOnHighlight"> - Wyatt Buchanan</div> <div class="fmPub">Pacific Standard</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://www.psmag.com/politics/citizens-council-45296/">Citizens Council: The Third and a Half Branch of Government</a></div> <div class="fmAuthorOnHighlight"> - Joe Matthews</div> <div class="fmPub">Pacific Standard</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://www.psmag.com/politics/the-freethinking-homeless-billionaire-and-the-flat-broke-state-44858/">Freethinking Homeless Billionaire and the Flat Broke State</a></div> <div class="fmAuthorOnHighlight"> - Joe Matthews</div> <div class="fmPub">Washington Post</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://www.washingtonpost.com/opinions/be-thankful--sensible-solutions-do-exist-for-us-problems/2011/11/23/gIQAW7pCqN_story.html">Be thankful — sensible solutions do exist for U.S. problems</a></div> <div class="fmAuthorOnHighlight"> - Fareed Zakaria</div> <div class="fmPub">The Sacramento Bee</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://www.sacbee.com/2011/11/20/4065880/thinking-long-about-states-future.html">The Conversation: Thinking long about state's future</a></div> <div class="fmAuthorOnHighlight"> - Nicolas Berggruen, Nathan Gardels</div> <div class="fmPub">The Sacramento Bee</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://www.sacbee.com/2011/11/20/4067828/think-long-coalition-will-propose.html">'Think Long' coalition will propose overhauling California's tax system</a></div> <div class="fmAuthorOnHighlight"> - Torey Van Oot, Kevin Yamamura</div> <div class="fmPub">PBS NewsHour</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://www.youtube.com/watch?v=d_8BruVaVq4&noredirect=1">Nicholas Berggruen talks to Spencer Michels about his efforts to "fix" California</a></div> <div class="fmAuthorOnHighlight"> - Spencer Michels</div> <div class="fmPub">NBC LA</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://www.nbclosangeles.com/blogs/prop-zero/Think-Long-Committee-Could-Change-California-Governance-Game-130582463.html">"Think Long" Could Be Governance Game-Changer</a></div> <div class="fmAuthorOnHighlight"> - Joe Mathews</div> <div class="fmPub">The Sacramento Bee</div> <div class="fmTitle"><a class="featMedLink" style="text-decoration:none; font-size:17px;" target="_blank" href="https://web.archive.org/web/20130712150804/http://www.sacbee.com/2011/01/02/3290025/can-california-be-pulled-from.html">Can California be pulled from the brink?</a></div> <div class="fmAuthorOnHighlight"> - Nicolas Berggruen, Nathan Gardels</div> <a class="featMedLink" href="/web/20130712150804/http://berggruen.org/councils/think-long-committee-for-california/featured_media">view all</a> </div> </td> </tr> </table> </div> <div id="footer"> <table id="footerTable" colspacing="0" cellspacing="0" cellpadding="0"> <tr> <td class="footerColumnHead">CURRENT PROJECTS</td> <td class="footerColumnHead footerColumnHeadExtra1">BERGGRUEN ORGANIZATIONS</td> <td class="footerColumnHead footerColumnHeadExtra2">CONTACT INFORMATION</td> <td class="footerColumnHead"></td> </tr> <tr> <td class="footerColumn footerColumnExtra1"> <a href="/web/20130712150804/http://berggruen.org/councils/21st-century-council" class="footerLink">21st Century Council</a> <br/> <a href="/web/20130712150804/http://berggruen.org/councils/the-future-of-europe" class="footerLink">Council for the Future of Europe</a> <br/> <a href="/web/20130712150804/http://berggruen.org/councils/think-long-committee-for-california" class="footerLink">Think Long Committee for California</a> <br/> <a 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