Is a constitutional convention in California’s future?

Monday, May 18, 2009, 12:53 pm

One of the fastest-growing divisions of Medtronic Inc. that focuses on treatments for diabetes is based in Northridge. But its 1,400-employee expansion won’t be there. It will be in San Antonio, Texas.

Defenders of California will cry that it was a clear case of Texas “poaching,” given that the state and local jurisdictions put up $14 million in incentives.

But the joke is on California.

Texas will get that money back in a year. And the city and state stand to gain many, many times that amount in economic benefits – estimated at $750 million a year – when the LEED-certified Medtronic facility is fully staffed in five years.

Texas isn’t guilty of poaching. It merely made a smart investment that will mean high-skill jobs and many other economic benefits for Texas residents.

Meanwhile, California has 11.5 percent unemployment, the highest corporate tax rate in the U.S., a water system that teeters on collapse, one of the worst K-12 education systems in the nation and, with Tuesday’s ballot initiatives in peril, a new budget deficit in excess of $20 billion.

California’s state government is clearly broken, and with it the basic elements that go into building and maintaining the economic vitality of its residents.

In response, a growing number of business and other leaders believe the only way to unlock gridlock in Sacramento and put California back on track is to change the structure of state government and finances.

Leading the effort to organize a constitutional convention – two of which have occurred in the state’s history – is one of the state’s most prominent business organizations, the Bay Area Council.

Speaking last week to the Business Journal’s Commercial Real Estate industry event, council President and CEO Jim Wunderman said the state’s economic and civic future is endangered if California’s fiscal, governmental and regulatory issues continue to go unaddressed.

The constitution allows the Legislature to call a constitutional convention when it believes one is needed. That requires a two-thirds vote. Mr. Wunderman said another route is to go to voters.

Whichever way one is called, Mr. Wunderman said be believes momentum is building toward the realization that fundamental, deliberative and balanced change is needed.

The last time the state’s constitution was fundamentally changed to meet the realities of the day was 1879. Since then, hundreds of sometimes piecemeal changes and amendments have been made.

Perhaps it’s time to take a fresh look.

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Brad Bollinger is editor in chief and associate publisher of the Business Journal. He can be reached at 707-521-4251 or bbollinger@busjrnl.com.