SACRAMENTO -- Carl Guardino, the president and chief executive officer of the Silicon Valley Leadership Group, gave unqualified support to Gov. Jerry Brown's budget and tax extension plan Tuesday at the Capitol, urging legislators to quickly come to an agreement to close the $26.6 billion deficit.

Guardino, SunPower CEO Tom Werner and Varian Medical Systems CEO Tim Guertin met with Brown at his office Tuesday. Later, Brown met with leaders of the Hispanic and Black chambers of commerce and the California Small Business Association as he continues to try to rally support among business leaders.

"What we're urging (legislators) to do is make a strong deal that's true to your principles but calls for compromise and consensus," Guardino said. "Silicon Valley knows the art of the deal. There is a deal here."
It was just the latest in a series of endorsements from business leaders for Brown's budget, which includes $12.5 billion in spending reductions and a ballot measure asking voters for a five-year tax extension on purchases, income and vehicles.

Last week, the Bay Area Council announced its support, while the state Chamber of Commerce signaled it would provide campaign support to Republican legislators who vote to put the tax extensions on the ballot. Earlier, the Los Angeles Area Chamber of Commerce endorsed the plan, as have a number of smaller business groups.

Later this week, the state Chamber of Commerce's executive board will decide whether to fully endorse Brown's budget and tax extension.


A quick agreement will help small businesses plan for the future and add jobs to the economy, said Aubry Stone, president and CEO of the California Black Chamber of Commerce.

"We just want to move the agenda," Stone said. "If Republicans are the blockage, we're going to spend a large majority of our time sitting down with them and trying to convince them to do the right thing."

Brown is hoping that pressure being applied by business groups, natural allies of Republicans, will eventually pay off.

"Certainly, all of this helps," said Steve Glazer, Brown's political adviser.

But it's not clear that business support is having much impact yet. Brown's hopes of getting a budget deal through the Legislature this week were dealt a blow Monday when a Republicans who had been negotiating with him said their talks were at an impasse.

In a letter co-authored by Sens. Sam Blakeslee, R-San Luis Obispo; Anthony Cannella, R-Ceres; Tom Berryhill, R-Modesto; Bill Emmerson, R-Hemet; and Tom Harman, R-Huntington Beach, the legislators said Brown had either rejected or watered down their proposals so much that they couldn't continue for now.

Brown needs a deal cut as early as possible in March to allow for a June special election. He was targeting a June 7 to leave room for further budget negotiations in case voters reject the tax extension.

But some Republicans who are considering a compromise want to push back a possible deal until after the Republican state party convention, which is being held in Sacramento March 18-20. That way they would avoid any ugly face-to-face confrontations that might show up in a challenger's campaign ad. But it would push a special election to late June, giving little leeway for backup budget negotiations.

Both legislative chambers are scheduled to hold votes on the budget Thursday, though the two parties remain apart on key issues. Most Republicans are calling for an outright rejection of the tax extension, hopeful that they can force Democrats to balance the budget exclusively through spending reductions.

Senate Leader Darrell Steinberg, D-Sacramento, and Assembly Speaker John Perez, D-Los Angeles, have said they are willing to consider reforms favored by Republicans. The question is to what degree they will offer reform concessions on top of the spending cuts they've already agreed to.

Guardino characterized the hourlong discussion at the governor's office as "fruitful," and praised Brown for bringing "such a cool head, thoughtful approach and experienced hand" to the Capitol.

The Silicon Valley Leadership Group group views the tax extensions as an "investment in the future while we're making painful cuts," Guardino said.

He said a strong economy and pro-business environment requires a quality K-12 system, a top-notch higher education system, a "strong and viable" transportation system, and a safety net that ensures support for the most vulnerable.

The proposed tax extensions "touch all of our lives and livelihoods in a way that's fair and based on what we can afford," Guardino added. "If it's important for California, then we should all have skin in this game."