Schwarzenegger Vetoes ‘Job Killers’

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Gov. Arnold Schwarzenegger Friday announced that he has vetoed two bills business groups had labeled as “job killers.”

As expected, Schwarzenegger vetoed a bill that would have set up a single-payer health system within the state. The bill, SB 840, by Sen. Sheila Kuehl, D-Santa Monica, had been opposed by business groups claiming it would have created a costly state-run health bureaucracy. Supporters claimed it would have cut down costs by eliminating what they viewed as excessive profits among health insurers.

In his veto message, Schwarzenegger called the bill a form of “socialized medicine Such a program would cost the state billions and lead to significant new taxes on individuals and businesses, without solving the critical issue of affordability. I won’t jeopardize the economy of this state for such a purpose.”

Schwarzenegger said he was willing to work with the state Legislature next year “to develop a comprehensive and systemic approach to health care an approach that supports cost containment and recognizes the shared responsibility of individuals, employers and government.”

Schwarzenegger also vetoed SB 729, by Sen. Alan Lowenthal, D-Long Beach, which would have imposed a $60 fee on each 40-foot container going through the ports of Los Angeles and Long Beach.

The bill was supported by port officials and environmental groups because it would have set up a guaranteed revenue stream to tackle some of the ports’ most pressing congestion and pollution problems. But shippers, retailers and other business groups opposed it, saying the bill interfered with interstate commerce and would have made consumer goods more expensive.

In his veto message, Schwarzenegger said that the transportation bond on the November ballot would earmark more than $4 billion to address environmental and congestion impacts of goods movement, including $1 billion to address port issues. He also said the Lowenthal bill failed to consider leveraging additional funding from other sources.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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