CICGperspectives

February 2002

The New California Dream:

Regional Solutions for

21st Century

Challenges

by nick bollman

CALIFORNIA INSTITUTEFOR

COUNTY GOVERNMENTCICG

LETTER FROM THE INSTITUTE DIRECTORAs California sets a course into the new century, it is

increasingly clear that many of the state�s most pressing publicpolicy challenges call for solutions that are regional in scope.Land use patterns, commutes to work, watersheds, air pollution,and economic activity all span local government boundaries.And yet local governments lack the means � legal, financial, andpolitical � to fully address these regional issues. Recognizingthis as an important public policy challenge, Robert Hertzberg,Speaker of the Assembly, created a Commission on Regionalismto address these issues. In this edition of CICG Perspectives, NickBollman, Chair of the Speaker�s Commission on Regionalismand President of the California Center for Regional Leadership,discusses the challenge ahead and points the way toward regionalsolutions.

This edition of CICG Perspectives contains a specially preparedexcerpt from the report of the Commission on Regionalism tothe Speaker. The essay identifies some of the challenges ahead:economic compet i t iveness ; pers i s tent pover ty andunderemployment; traffic congestion and long commutes;unaffordable housing; and loss of open space and habitat, amongmany other s.  Mr. Bol lman a l so out l ines the spec i f icrecommendations for addressing these challenges proposed bythe Commission.

Taken as a whole, the fruits of the Commission�s labor are apol icy f ramework and ra t ionale suppor t ing spec i f icrecommendat ions . Though the pr imary focus o f theCommission�s work has been state government, the Commissionhas also noted important opportunities for improved strategiesamong local governments and regional agencies, as well as thebusiness, civic and philanthropic sectors. Among the manycarefully crafted and thoughtful recommendations put forth bythe Commission are several critically important to CaliforniaCounties. Mr. Bollman and the other commissioners clearlyrecognize that successful, fiscally stable, and independent localgovernments are fundamental to any regional solutions. Withthis in mind, the commission recommends, among other things,a return of ERAF and legal protection from state control forlocally levied taxes.

The policy framework and recommendations of theCommission are built on a foundation of hard work andthoughtful analysis . The Commissioners met regular lythroughout 2001, holding meetings throughout state. The groupsought out suggestions and information from business communityleaders, s tate and local e lected off icials , scholars, andcitizens. The group commissioned thirteen policy researchpapers, including one on the fiscal impact of regional revenuesharing proposals prepared by CICG. 

If California is to successfully accommodate an everincreasing population, reduce or eliminate persistent poverty,alleviate congestion, and lessen pollution we will need to developand implement successful regional solutions. I am grateful toMr. Bollman for sharing with us his hard work and that of theother Commissioners. It is my hope that this essay can serve tostimulate a healthy and productive debate about how to developand implement regional solutions to some of the state�s mostpressing public policy challenges.

Matthew Newman, DirectorCalifornia Institute for County GovernmentFebruary 2002

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THE NEW CALIFORNIA DREAM: REGIONALSOLUTIONS FOR 21ST CENTURY CHALLENGES

WHAT IS OUR CHALLENGE?California is at a crossroads. Over the past century,

California has in many ways come to symbolize a unique andcompelling version of the American Dream. The CaliforniaDream embodied economic success for businesses andworkers; social and economic opportunity for millions ofnew arrivals from other states and other countries; an enviablequality of life; protection of an extraordinary naturalenvironment, up in the Sierra wilderness and down at thebeach; a government at the forefront of civic reform, thewellspring of many national political reform movements fromearly twentieth century progressivism to late twentiethcentury conservatism. And largely it has been a place ofself- invention and reinvention, from the great publicinfrastructure projects like the water and highway systems tothe silicon revolution of computers and the Internet.

At the dawn of the 21st Century California is once againthe great experiment, but this time on a global stage. To meetour challenge this time, we will have to draw largely fromour deep stores of social capital, just as in the past 150 yearswe drew from our deep stores of natural capital. California�seconomic, demographic, and geographic diversity presentsan opportunity to invent a new social and economic orderthat celebrates complexity and diversity and that builds the

self-governing mechanisms appropriate to this new century.

That is the California challenge. Its attainment is the

New California Dream.

The major goals of the challenge, all inter-dependent with

each other, and all requiring regional solutions, are:

n Economic Prosperity for All

n Social and Economic Progress

n Building Better Communities

n Enhancing Environmental Quality Now and Forthe Future

n Collaborating for Effective 21st CenturyGovernance

n Enhancing Regional Security, ReducingVulnerability, and Increasing Self-Sufficiency

WHY REGIONALISM? WHAT IS THE 21ST CENTURYREGIONALISM?

In the 21st Century California is a state of regions. Issuesonce successfully addressed at a local or state level now mustbe addressed at a regional level. The world has changed andmade our challenges regional. We compete in a globaleconomy, region-to-region, not country-to-country. Ourethnic, racial, and income differences fragment us and isolateus from each other, and too many Californians are in dire,persistent poverty. These inequities and barriers to integratedcommunities are distributed unevenly across our regions.Our natural environmental resources, our air basins andwatersheds and open space and habitat are at risk, and theconflict between conservation and development worsens. Nopurely local solutions are at a large enough scale to be effectiveand sustainable. On top of all this, our anticipated populationgrowth in the decades to come, and regional and cross-regional settlement patterns, exacerbates all the problemsmentioned, and stretches our current governmental processesbeyond their capacity.

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Though solutions must be regional, our state and localgovernments lack sufficient constitutional or legislativeauthority, or planning processes, or funding schemes, or evena degree of public trust, sufficient to tackle these problemssuccessfully at the regional level. Though there areinnovative and committed public servants and state and localpublic agencies willing to do so, most of the fundamentalpolicies and practices that guide their work are from anothertime. They are inadequate at best and barriers to success atworst. Only a fundamentally different mode of governance,what we call regional stewardship, will be adequate to thechallenge. Stewardship, that is collaboration among localand state government and the private and civic sectors, is the

fundamental building block of 21st century regionalism.

To regain and sustain the California dream in the yearsto come, we need a new 21st Century regionalism: betterpolicies, practices, and governmental and civic institutionsthat are aligned to support essential, and promising, regionalstrategies to produce and sustain world-class communities.

This new regionalism seeks to re-empower and re-engagelocal and state government in successful problem solving.

21st Century regionalism:

n Brings together different sectors�public, private, and non-profit�in new, more collaborative and entrepreneurialways.

n Starts from �bottom up� self-organizing and self-definition,using functional issues to define the scope and scale of re-gional problem-solving, such as commute patterns to de-fine the jobs-housing imbalance problem (and solutions),or watersheds to define water supply and quality challengesor the conservation of aquarian habitat systems.

n Optimizes regional self-sufficiency and organizes effectiveextra-regional (even global) working relationships.

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n Draws all citizens into broad and informed re-gional dialogues about the future of theircommunites and implementation strategies.

n Assures that all solutions are measured againstsocial and economic equity standards.

n Supports the allocation of local and state revenuesin a manner that reflects the true cost of providinglocal and regional infrastructure and services.

n Promotes resource efficiencies: energy, land, andmaterials.

n Advances the idea of better government, not moregovernment, or extra layers of government.

n Holds all sectors accountable for results�public,private, and civic�measures progress�and learnsfor improvement.

n Acknowledges the need for sub-regional, inter-regional, and supra-regional strategies to addressspecific issues that are linked within smaller orlarger geographic areas or that cross regions thathave more definable boundaries.

THE SPEAKER�S COMMISSION ON REGIONALISMState Assembly Speaker Rober t M. Her tzberg ,

recognizing California�s need for a 21st Century regionalism,appointed a Commission to study and recommend new statepolicies that would support more effective solutions to someof California�s most serious immediate and long-term issues:economic compet i t iveness ; pers i s tent pover ty andunderemployment; traffic congestion and long commutes;unaffordable housing; and loss of open space and habitat,among many others. He recognizes that many of these issuesrequire solutions at the state and local level, but what�s missingis the ability to address them at a regional scale, tailored tothe unique needs of our state�s diverse regions. Without that,these problems simply won�t be solved.

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WHY FOCUS ON STATE POLICY?The state government�s policies, regulations and direct

spending are the key �driver� on most issues requiringregional solutions. Moreover, state government is the sourceof local government legal authority and drives the structureand purpose of most local finance, and therefore is a majordeterminant of whether local governments cooperateregionally. Through a series of constitutional amendmentsand legislative decisions over the past quarter-century, andthrough the devolution of much federal regulatory andspending authority from the federal government to states, thestate government now has the pre-eminent power andauthority to encourage, support, and even require regional

solutions�or not to do so.

The Speaker�s Commission on Regionalism met regularlythroughout 2001. The results of their work are contained ina Report to the Speaker published in January 2002. The reportoffers a Vision and a Statement of Principles that under girdall of the recommendations of the commission. It then offersa detailed analysis of the kinds of challenges we face, thebarriers in state policy to effectively addressing thosechallenges, and the many state policy reforms that, takensingly and together, could overcome those barriers. In thebody of the Report, the Commission offers dozens ofrecommendations for constitutional and legislative action,and even suggests corollary actions by the business, civic,and community sectors.1 This essay contains a speciallyprepared excerpt of the Commission�s report to the Speaker,inc luding a summar y of the Commiss ion�s spec i f icrecommendations.

WHAT SPECIFIC CHALLENGES REQUIRE REGIONALSOLUTIONS, AND WHAT POLICY REFORMS DOESTHE SPEAKER�S COMMISSION ON REGIONALISMRECOMMEND?

1 To review the complete text of the report, please visit the Speaker�sCommission on Regionalism website at http://www.regionalism.org.

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California is the fifth largest economy in the world. Butin some ways that statement has no meaning, because in factCalifornia is a state of autonomous though inter-connectedregional economies. In the global marketplace, thecompetitors to our regional economies are not othercountries, but other regional economies. Though driven byprivate sector innovation, workforce productivity, andfinance, governmental decisions can either help or hurt theability of our regions to compete in education and workforceinvestment, infrastructure planning and investment, and inthe efficiency and quality of government services. Therefore,state government must be informed, attuned, and aligned tosupport our regional economies. The State should have apermanent, yet dynamic economic strategy capacity, alignedto support sustainable regional economies.

n Economic Leadership. Carry out the language and intentof the statute that created the Economic Strategy Panel,that is, to obtain timely information on the emerging issuesand needs of regional economies and the labor force, toencourage and support data-driven public policy and in-vestment decisions.

n State Inter-agency Coordination. Provide assistance andoversight to all state agencies to align state resources withstate and regional economic strategies, and to drive re-sources closest to the �customers� in the regions, using andenhancing existing service delivery networks.

n Assist Regions. Provide data and technical assistance toregions to enable them to develop and implement economicstrategies for their industry clusters. Support partnershipsbetween state government and the regions through negoti-ated regional compacts and other approaches.

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THE ECONOMY: SUCCESSFUL REGIONAL ECONOMIES

Key State Policy and Program Strategies

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n Special Regional Needs. Establish a permanent state en-tity, modeled after the Appalachian Commission, to assistregions such as parts of the Central Valley and northernCalifornia that are now characterized by structural unem-ployment and under-investment, to compete in the globaleconomy.

n A Sustainable Economy. Identify economic developmentopportunities through environmental leadership, includ-ing energy conservation, renewable and self-sufficiencystrategies, investments in �green� infrastructure (urbanparks, open space, economic restoration, etc), and by pro-moting environmentally sustainable businesses practices.

THE ECONOMY: GOOD JOBS AND CAREERS FOR ALL

California workers� skills must match the needs of theCalifornia regional economies if they are to have successfulcareers and provide a high standard of living for theirfamilies. Therefore, regions must provide economic and jobgrowth matched with projected population growth. Theymust create or expand businesses and value-added jobs thatare competitive in the global economy. It is essential thatthey improve public education as the foundation of aproductive workforce and high quality of life. They shouldinvest for a trained workforce in the growth sectors of theeconomy, to enable workers to have satisfying careers, withincome and assets sufficient to support a high quality standardof living for individuals and families. And, they must ensuresufficient economic opportunity at the lower end of the labormarket to close income gaps, expand the middle class andavoid a permanent underclass. The state government is themajor public investor in education and workforce investmentsystems and programs. Its policies and practices must berealigned to support effective regional workforce investmentstrategies.

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n A World-class Education System. The best investment forthe workforce of tomorrow is the education system. Con-tinued improvement in educational achievement, throughpublic school reform and public charter school innovations,is the first priority.

n Workforce Investment: A Cabinet Agency. Elevate theimportance of workforce investment policy as a fundamen-tal economic development strategy. All workforce relatedagencies, such as the Employment Development Depart-ment, the Department of Industrial Relations, and the Em-ployment Training Panel should be linked together underthe direction or coordination of a Cabinet-level workforcedepartment.

n State Policy. The California Workforce Investment Board,a public-private advisory body to the Governor, shoulddevelop a comprehensive, regionally sensitive WorkforceInvestment Policy for the entire state workforce develop-ment system. The policy should call for a state-regionalintegrated, customer-driven workforce development sys-tem for all Californians, with a focus on lifelong learningopportunities and career progression.

n Data as the Driver. The state should produce high qualitydata and analytic tools, continually updated, and readilyaccessible. They should focus on dynamic regional econo-mies and emerging skills requirements, mismatches, andunmet needs, and should drive new education and trainingstrategies.

Key State Policy and Program Strategies

THE ECONOMY: TOWARD SOCIAL AND ECONOMICEQUITY

While California has emerged once again as a land ofopportunity, structural changes in the economy and otherfactors have resulted in a deep and growing disparity in familyincome and assets. The gap between rich and poor is growing,

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and the middle class is not growing. The cost of living andsocial isolation have made the ideal of economicallyintegrated communities increasingly illusory. Addressing thiswidening disparity is necessary not only to ensure that allCalifornians benefit from the State�s prosperity, but also abouthow this gap, if left unchecked, most certainly will undermineCalifornia�s long-term sustainability, security, and success.In general, state policy ought to be guided by a full andcomprehensive commitment to reducing poverty andincreasing social and economic opportunity, and its actionsshould be measured by progress toward this goal. California�snext wave of social and economic progress will be madethrough regional approaches to the problems of racialdiscrimination and economic injustice.

Key Policy and Program Strategies: For Individualsand Families

n Regional Equity. For those who are dependent and unableto support themselves, the state government should assurethat the income, services, and supports they need (oftendelivered at the county level) are available regardless ofthe local jurisdiction in which they reside.

n Regional Opportunity. Because work is the path to themiddle class, and many work opportunities are distributedacross regions, the state should encourage regional educa-tion and employment training strategies and transportationand child care policies that enable true access to opportu-nity.

n Cost-of-living Strategies. Because California is and mayalways be a high cost state, the state aggressively shouldaddress income and asset inequities through innovative costreduction approaches that reduce regional and communityinequities. Current examples include the Healthy Fami-lies program, providing lower-cost health insurance formoderate-income working families, and down paymentincentives for first-time homeowners. Inclusionary zon-

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Key Policy and Program Strategies: ForNeighborhoods and Communities

n Regional redevelopment. The state should re-examine re-development law to determine how to encourage, in addi-tion to local redevelopment, innovative regional redevel-opment and tax increment strategies.

n Urban reinvestment. The state should encourage urbanreinvestment, to bring back older communities and reducegrowth pressures at the urban fringe. An example of inno-vative policy is the State Treasurer�s proposal to create an�emerging markets� fund, to leverage private and philan-thropic capital investments in California�s poorer neigh-borhoods and communities. The state should ensure that itsites public facilities, directs infrastructure investments,and incentivizes local planning decisions to increase in-vestment in older, poor communities, and in a manner thatbenefits those communities and without displacing currentbusinesses and residents.

n Public participation. The state government should assureadequate access for representatives of low-income and otherunder-represented communities to participate in the re-

THE COMMUNITY: EMPOWERING REGIONSTHROUGH STATE-LOCAL FISCAL REFORM

Our system of state and local financing is seriously

misaligned and produces terrible local effects. An unintended

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ing and cross-subsidized multifamily housing provide af-fordable housing without requiring deep public subsidies.Some communities have income sensitive transit and trans-portation policies.

gional and local planning processes that influence the fu-ture of their communities, especially with respect to eco-nomic development, land use, housing, transportation, andparks/open space planning.

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consequence of Proposition 13, adopted in 1978, is that localgovernment finances are at the mercy of the state. Tocompensate for the loss of control of property taxes, localitieshave been forced to compete for sales tax revenue, oftenresulting in unsound land use decisions, building more retailthan we need and much less housing than we need, and oftenin the wrong places. Or localities have resorted to levyingfees to obtain revenue, often on housing, thus further reducinghousing affordability. Moreover, there is no fiscal incentivefor local government to repair infrastructure, so it must relyon new development to generate income. Counties, due totheir status as agents of the state, have few locally controlledtaxes to be used for local government services. The cost ofservices is borne disproportionately across regions, but thereis no incentive for local governments to come to agreementon a regional distribution of some of local revenues to addressdisproportionate shares, nor to create new regional funds,from which compensation might be made. The sta tegovernment itself, in its expenditures for state operations, orcapital expenditure for infrastructure, does not alignexpenditures with regional plans (except in the case oftransportation, and even here the requirement is not alwayshonored). As a result the state government often is not agood funding partner with local governments and regionalagencies at best, and in conflict with them at worst. Finally,except for school bond financing, local voters are hamstrungfrom financing local infrastructure with a two-thirds voterequirement.

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Key State Policy and Program StrategiesProtect local revenues. To increase the power of local

governments to finance local services, do sound planning andmaintain sustainable development policies:

n Amend the Constitution to protect locally levied taxesfrom being reallocated for state purposes. That portion ofproperty taxes allocated for local government serviceswould be considered locally levied.

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n Reduce the ERAF property tax shift by $1 billion over tenyears. This reduction should be conditioned on the adop-tion and implementation of regional and local �sustainabledevelopment� policies.

Encourage regional tax sharing. To revise the localfinance system to neutralize the effects of fiscal considerationson urban growth policy choices:

n Within each region, local governments should, within aspecific period of time, choose one or a combination of thefollowing fiscal systems for the purpose of reducing thefiscal impacts of growth policy choices:

- Swap with the state a portion of the locally leviedsales tax for a larger share of the property tax.

- Transfer all or a portion of the 1% locally leviedsales tax to the counties.

- Establish a split property tax allocation by landuse category by increasing the amount of propertytax that a city receives for specific land uses.

Incentivize voluntary, �regional home rule.�

n Within each region establish a Sustainable DevelopmentRegional Resource Allocation Fund. It would facilitate lo-cal tax sharing by ensuring that local governments within aregion have the power to enter into tax sharing agreements.It could be used for projects or infrastructure of regional

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significance; regionally important amenities such as openspace or housing; to reward localities carrying a dispropor-tionate share of unwanted land uses; or to offset the nega-tive consequences of the move from situs to non-situs salestax receipt.

n Authorize through constitutional amendment the develop-ment and adoption of a regional compact that would specifythe governance and fiscal choices of the region. A compre-hensive regional plan should be developed on a collabora-tive basis involving all of the region�s communities, and

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adopted plans should enable voters to approve general ob-ligation bonds for capital purposes and tax increases dedi-cated to specific purposes by a 55% vote and grantcountywide revenue raising authority for counties to sup-port countywide services at 55% voter approval.

THE COMMUNITY: LIVABLE COMMUNITIES IN 2020FOR 46 MILLION RESIDENTS

A generation ago, the state planned for and invested inthe major systems that support modern economies and society:land use and housing, water supply, roads and transit, portsand airports, K-12 schools and higher education facilities,parks and open space, and adequate funding for localgovernment to deliver high quality police, fire, health, andsocial services. With vision, leadership, innovation andsacrifice, California led the world in producing the neededinfrastructure, the foundation for our prosperity and qualityof life.

Since that time, however, the state has failed to maintainand expand these systems. Today California faces an�infrastructure deficit� estimated at well beyond $100 billion.During the same period, we all but abandoned California�sworld class approach to large scale planning. As Californialooks to the future, the question we face is not one of �growth�or �no growth.� Growth is unavoidable and its pace ispredictable. During the next 20 years, Califor nia�spopulation will grow by an estimated 12 million people�primarily from births, not immigration�an increase ofapproximately one-third over the current population of 34million. The question on the minds of the general publicand publ ic o f f ic ia l s a l ike should be : how can weaccommodate this growth and maintain and improve ourquality of life and our economic prosperity?

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Key State Policy and Program Strategies: RegardingState Government

n Goals. Through a statewide, regional and local consulta-tion process, adopt clear and concise state goals, and con-crete performance standards and quantifiable measures tohold state and local governments and regional agencies ac-countable for results.

n Fiscal Reforms. Adopt tax and fiscal reforms and capitalexpenditure strategies that require and adequately supportsound planning at the local and regional level, includingstate budget support for local planning agencies and depart-ments.

n Inclusive Planning. Ensure �planning equity� throughspecial support and capacity building for disadvantagedcities and for community groups representing�marginalized� populations.

n State Agency Collaboration. Ensure collaborative, inter-agency planning among the state�s own agencies, and be-tween those state agencies and local governments and re-gional agencies, and the public at large.

n Decision Tools. Provide the essential �tools� of good plan-ning: high quality, accessible data, especially geographicinformation systems data, and other planning technologies.Provide opportunities for skills development among plan-ning professionals, especially those working in small andrural counties.

Key State Policy and Program Strategies: RegardingRegions

n Collaborative Regional Planning. Adopt as the primaryapproach to �big systems� planning what we call collabora-tive regional planning� across local jurisdictions and acrossfields of interest, such as land use, housing, transportation,and open space�as the primary planning mode for �big

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SCHOOLS AND UNIVERSITIES AS CENTERS OFCOMMUNITIES AND ANCHORS OF REGIONALDEVELOPMENT

Schools and university facilit ies are major publicfacilities, and their siting, design, and use can be importantdeterminants of community development or decay. And thestrength of our neighborhoods and communities is a factor inwhether we have sound regional development, or insteadpromote �hopscotch� new development, fleeing olderneighborhoods and even jumping over newer suburbs. Toooften we have seen inner city or older suburban schools fallinto disrepair or abandonment, even as new �sprawl� schoolsare built, that is, schools located away from existingpopulation centers, on the edge of towns and cities or out in�g reenf ie lds,� and wi thout a broader communi tydevelopment planning context. Our land is a preciousresource, and the siting and use of schools and universityfacilities should always promote intelligent communitydevelopment; easy and safe access to schools for children,parents, school personnel, and supportive services; andcommunity involvement in schools.

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systems� and projects of regional significance. The River-side Comprehensive Integrated Planning project is a modelfor this program.

n Visioning. Engage the broad citizenry to understand, en-vision, and support (through local tax policy and other strat-egies) effective regional planning, with special outreach toinvolve under-represented populations and communities.

Key State Policy and Program Strategiesn Orientation of School Construction Funding. School

and university facilities construction and modernizationfunding, whether state or local, should support the idea of�schools as centers of communities.�

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n Permanent, Reliable School Construction Finance. Overthe long term, state financing for school and university con-struction should be based in one or more dedicated rev-enue streams, with bond financing used only to assure bal-anced allocation, design or use enhancements, or other spe-cial school construction financing needs.

n Joint Use and Other Efficiencies. All public facility con-struction agencies, including schools and universities,should encourage joint use, and efficient use of land, mate-rials and energy. Financial incentives should be providedfor high performance outcomes.

n Urban Reinvestment. Cities and redevelopment agenciesshould anchor their comprehensive community redevel-opment plans around a network of schools, encouragingmiddle class families to locate in older neighborhoods.

n Comprehensive Planning. Local general plans should becoordinated and consistent with school plans in the sitingand development of housing, transportation, parks/openspace, and other public facilities.

ENHANCING ENVIRONMENTAL QUALITY NOW ANDFOR THE FUTURE

Californians, even more than Americans generally, aredeeply committed to the environment. For many, the naturalbeauty and recreational opportunities are a part of theCalifornia lifestyle, the reason they moved here or stayedhere. Much of the state�s economy, historically and today, isbased in natural resources, and in particular farming,ranching, logging, fishing and tourism, which requireresource conservation and renewal to be economicallysustainable.

State environmental policy is inadequate to meet futurechallenges in three very important ways: First, there isinsuff icient �horizontal� integration across dif ferentenvironmental fields of interest (storing recycled lead

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batteries, for example, can create soil contamination; or theretreat from MTBE as a gasoline additive is a recent example).Second, there is very l i t t le �vert ical� integrat ion ofenvironmental planning, enforcement or other public sectorinterventions, and as a result federal state and localgovernments o f ten work a t c ross -purposes . Thi rd ,environmental goals are not sufficiently balanced andintegrated with other economic and social goals (for example,CEQA is often used inappropriately to block affordablehousing development, and only recently have we seenimportant advances in providing sufficient incentives for

farmers to be major agents of habitat protection).

n Regional and Local Data and Priority-setting Systems.The state should continue and expand support for region-ally based information programs such as the ResourcesAgency�s California Legacy Project. This project gathers,standardizes and organizes data on our state�s natural eco-systems and creates an analytical tool to help prioritizelarge areas of main ecological concern. The result will bean integrated process for setting conservation priorities andassigning fiscal resources in California�s regions.

n Environmental Justice. All state environmental agenciesshould make environmental justice a high priority, andimprove access to environmental data and resources forpoor and traditionally minority communities.

n Integrated, Comprehensive Planning. State and local gov-ernments should expand funding for programs that plancollaboratively and on a multi-stakeholder, multi-issuebasis, to achieve conservation and development goals on alarge-scale basis, including multiple species habitat plan-ning.

n Conservancies. State government should provide incen-tives for the creation of regional conservancies, such as the

Key State Policy and Program Strategies

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newly proposed Sierra Nevada Conservancy, to protect ournatural lands and working landscapes.

n Economic Environmentalism. State economic agenciesshould support analyses of the comparative advantage ofenvironmental industry clusters and business practices; thereturn on investment of �green� building initiatives andenergy conservation practices; and the regional economicvalue of various actions to protect the natural environment.

GOVERNANCE: PERFORMANCE-BASED REGIONALCOLLABORATION

Though California�s challenges need regional solutions,today we have a hodge-podge of governmental rules, fiscalpolicies, and institutional frameworks that often discourageregional collaboration among local governments, and rarelyencourage it. Since the mid-20th Century, the following deep,

structural impediments to regional collaboration have arisen:

Fragmentation. Local government is increasinglyfragmented among multiple jurisdictions and special districts.

State Control. The state government increasinglyimposes regional planning through its own infrastructureinvestments, or through statutory mandates, but this is largelytop-down, and not always with salutary results for regions.

Fiscal Disincentives. After decades of local home rule,Proposition 13 in 1978 removed the fiscal incentive forreg ional cooperat ion among loca l governments , an

unintended consequence.

Willing but Weak Councils of Government. Regionalcouncils of government do not have the regulatory power orfiscal tools (except in the case of federal transportation funds)necessary to drive or incentivize regional cooperation.

Technical Capacity. Region-level decision making andcollaborative processes are unfamiliar territory for many

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local elected officials and planning professionals, and the dataand technological tools that would make it work are oftenunavailable.

Political Will. There is too little political reward forregional leadership among local elected officials. Publicapathy and distrust of government is ubiquitous, ironicallyin part because government isn�t solving the regionalproblems that it is not well suited to solve.

Many of California�s regional civic, business, andcommuni ty leaders are anxious to work wi th loca lgovernment, but they know that fundamental reforms will benecessary if true regional cooperation is to become the norm.This is not a �blame game.� It is necessary to honor the roleand commitment of pubic servants and public institutions,but that is insufficient, because the rules that govern publicdecisions and implementation are deeply inadequate to the

challenge. Good people need good rules.

A new regional government may or may not be the answerin any given region. Consistent with the Commission�s strongsupport for a �bottoms up� approach, however, any regionalconsolidation should be chosen freely by the voters of aregion, and not imposed by state government. For regionsthat do not choose regional government or consolidation ofregional agencies, another pathway is possible: a promisingnew form of regional governance that depends largely onvoluntary collaboration and teamwork; cross-sectoralpartnerships (public-private-nonprofit); explicit adoption of�stewardship� values and principles, and �sustainability�goals; incentives, not mandates; good information, usedproperly to plan and assess results; and a network of

intelligent, watchful media and civic organizations.

Key State Policy and Program Strategies:Multipurpose Regional Governments or CollaborativeRegional Governance?

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GOVERNANCE: STATE DEVOLUTION, ALIGNMENT,AND SUPPORT

Substantial state government devolution, alignment, andsupport will be necessary for authentic collaborative regionaldecision-making. To accomplish this will require the stateto share power, funding, and accountability with localgovernments and regional agencies, and in a manner that isfully collaborative, without surrendering the state�s properoversight role. This complicated and historic reform willentail a fundamental shift in the role and function of stategovernment.

Specific Recommendations:

n Negotiated Regional Compacts. State adoption of a broadset of policy and financial incentives to encourage and sup-port the development, adoption, and implementation ofregional compacts. This could be preceded by a series ofstate-supported pilot demonstration compacts, addressinga wide variety of regional issues in different regions, withan appropriate matching requirement from local govern-ments as well.

n Public Participation. Financial and technical support tobroaden and deepen public participation in regional deci-sion-making processes, with a particular emphasis on build-ing the participatory capacity of �marginalized� commu-nities.

n Access to Data. Improved collection, storage, organiza-tion, and accessibility of geographic and other planningdata by state agencies, to support databased regional strate-gies.

n Performance Accountability. Additional research and de-velopment, and experimentation with regional performanceaccountability systems.

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Key State Policy and Program Strategies:

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n State Goals. In consultation with local governments, re-gional agencies, state agencies and the civic, business, la-bor and community sectors, the state should adopt as statepolicy a set of broad goals to frame California�s interest inbetter regional planning and outcomes.

n Devolution of Funding Authority. The state should con-sider devolving to the regional level many of the fundingdecisions that are better made at that level (regardless ofthe source of funds); however, retaining and allocatingenough resources to 1) support programs and projects withlarger-than-regional significance, 2) assist in balancing re-gional inequities, and 3) incentivize excellent regional per-formance.

n Negotiated Regional Compacts. The state should encour-age negotiated regional planning compacts, through fiscalincentives from the state government and tax and capitalexpenditure incentives, and reward good regional planningand investment that meets state and regional goals.

n Regional Civic Infrastructure. The state should providefinancial support to regional civic organizations that assistthe public sector by on-going and broadly inclusive citizenengagement in the regional collaborative planning process,including regional �visioning� projects.

NEXT STEPS: HOW TO ACHIEVE AND SUSTAINTHE RECOMMENDED POLICY REFORMS

To advance the policy framework and the specific policyreforms proposed, California must have a supportive andeffective civic and political culture, with individuals andinstitutions committed to carrying these ideas forward. TheCommission identifies the following broad conditionsnecessary to create such a supportive culture:

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1. Polit ical leaders who support the 21st Centuryregionalism (particularly the Governor, Legislators, and city,county, and school elected officials), and who are heldaccountable for results.

2. Individual leaders and organizations capable offocus ing on reg ional s t ra teg ies , advocat ing the i rimplementation, and monitoring results.

3 . Ef fec t ive publ ic communicat ions s t ra teg ies ,particularly through the regional print media.

4. Curriculum that teaches these values and ideas in K-12 schools and post-secondary education.

5. Sustained research, analysis, and discovery to learnhow to improve upon these 21st Century regionalism valuesand ideas.

6. A California Partnership for Regions (CPR), an on-going forum for advancing the ideas addressed in this Report.To continue and deepen the work now begun, and toexemplify the new kind of public-private stewardship theCommission has proposed, we believe that the stategovernment ought, in partnership with the private andphilanthropic sectors, to create a new entity, the California

Partnership for Regions.

A CALL TO ACTION

The Speaker�s Commission on Regionalism offers the idea

of 21st Century Regionalism as one way to meet our many

challenges, and to invent, build, manage, and sustain�

The New California Dream.

Please join us.

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ABOUT CICGThe California Institute for County Government (CICG)

is an independent research organization dedicated toimproving county government in California through researchand analysis. CICG is a joint program of the California StateAssociation of Counties, the California State Universitysystem, and California State University, Sacramento. CICGconducts empirical research projects in a broad range ofpublic policy areas relevant to county government inCalifornia. The Institute also maintains a database of localgovernment financial, economic, and demographic statistics,which provides researchers, county officials, and state-levelpolicy makers with access to accurate, reliable data for use inresearch, public policy analysis, and decision making.

CALIFORNIA INSTITUTEFOR

COUNTY GOVERNMENTCICG

For more information or to request

additional copies of this report,

please contact

CSUS Office6000 J Street

Sacramento, CA 95819-6081

orCapital Office

1107 9th Street, Suite 1011Sacramento, CA 95814

(916) 324-0796

or visit the CICG website: www.cicg.org

THE CALIFORNIA INSTITUTE

FOR COUNTY GOVERNMENT