Gray Davis

Early life, education, and military service Davis was born in the Bronx, New York City, on December 26, 1942, the son of Doris (Meyer) Morell and Joseph Graham Davis. Davis was the oldest of five children: Three boys and two girls. Davis's father, an advertising manager at Time Inc. and an alcoholic, was the son of businessman William Rhodes Davis. who gave him the nickname "Gray". Davis moved to California with his family in 1954.

Davis graduated from a North Hollywood military academy, the Harvard School for Boys (now part of Harvard-Westlake School). After Davis entered Stanford, his father left the family, forcing Davis to join the ROTC to stay in school; his arrangement with ROTC included a promise to enter the Army after completing his education. In 1964, he graduated with distinction from Stanford, receiving a Bachelor of Arts in history. He then returned to New York City to attend Columbia Law School, graduating with his J.D. degree in 1967. Davis saw time on the battlefield during his time in Vietnam. Davis is a life member of the American Legion and the Veterans of Foreign Wars.

Early career Davis volunteered for John V. Tunney's campaign for the United States Senate in 1970.

Davis served as the Assemblyman from the 43rd district, representing parts of Los Angeles County including West Los Angeles and Beverly Hills from 1983 to 1987. Davis championed a popular campaign to help find missing children by placing their pictures on milk cartons and grocery bags. Davis cut all ties with La Pietra following a Los Angeles Times report on his pornography convictions.

State Controller Davis with Shelley Duvall, U.S. Senator Alan Cranston, and Morgan Fairchild in 1986. In 1986, Davis ran against six other contenders in the race for State Controller; several of those candidates, including Democrat John Garamendi and Republican Bill Campbell, were arguably better known at the time. He was the first controller to withhold paychecks from all state elected officials, including himself, until the governor and the Legislature passed an overdue budget. He also found and returned more than $1.8 billion in unclaimed property to California citizens, including forgotten bank accounts, insurance settlements and stocks. The Davis campaign featured an ad that compared Feinstein to the incarcerated hotelier Leona Helmsley. Some experts consider that ad to be the most negative in state history. The ad backfired with Davis losing to Feinstein by a significant margin for the nomination, although this loss did not stop Davis from using negative campaign ads in the future, including in his race for lieutenant governor. Davis used ads to depict Wright as a Republican who was too conservative for California. Davis's campaign slogan during the primary was "Experience Money Can't Buy." Early primary polls showed Davis in third for the Democratic nomination. Davis even finished ahead of the unopposed Republican nominee in California's first blanket gubernatorial primary.

Davis won the 1998 general election for governor with 57.9% of the vote, defeating Republican Attorney General Dan Lungren who had 38.4%. Davis aimed to portray himself as a moderate centrist Democrat and to label Lungren a Republican too conservative for California and out of touch with its views on issues like guns and abortion. After his victory, Davis declared that he would work to end the "divisive politics" of his predecessor Pete Wilson. His numbers peaked in February 2000 with 62% approval and 20% disapproval, coinciding with the peak of the dot-com boom in California. Davis held his strong poll numbers into January 2001.

Davis's first official act as governor was to call a special session of the state legislature to address his plan for all California children to be able to read by age 9.

"I ran for governor because of my passion for education," Davis told CNN the Sunday night before the recall election on Larry King Live. Public schools received $8 billion over the minimum required by Proposition 98 during Davis's first term. Davis increased spending on recruiting more and better-qualified teachers. He campaigned to lower the approval threshold for local school bonds from two-thirds to 55 percent in a statewide proposition that passed. Davis earmarked $3 billion over four years for new textbooks and, between 1999 and 2004, increased state per-pupil spending from $5,756 to $6,922.

In May 2000, a coalition of civil-rights groups filed Williams v. California, alleging that the state’s failure to ensure basic and decent educational necessities—qualified and credentialed teachers, current textbooks, clean and safe facilities and classrooms, decent schools—violated the state constitution’s guarantee of a free and equal public education; plaintiffs emphasized that the worst conditions were concentrated in schools serving low-income and nonwhite students.

Rather than pursue a negotiated settlement, Davis retained the private law firm O’Melveny & Myers to defend the state; by September 2001 the firm had been paid $2.5 million, and its lawyers drew criticism for deposing student plaintiffs—including children as young as eight—about their school conditions.

Davis’s legal strategy also included cross-complaints against the school districts attended by the student plaintiffs, a move criticized at the time as the state “suing itself” and potentially diverting tens of millions of dollars from repairs and instruction into litigation; in the same litigation, San Francisco Superior Court Judge Peter Busch ruled that delegating duties to districts “does not absolve the state of its ultimate responsibility.”

In 2001, Gov. Gray Davis signed Senate Bill 19, which establishes nutritional standards for food at elementary schools and bans the sale of carbonated beverages in elementary and middle schools.

Another early act of Davis's was the reversal of his predecessor Republican Governor Pete Wilson's alteration of California's eight-hour overtime pay rule for wage earners.

Signing SB 400 into law

In 1999, the CalPERS board proposed a benefits expansion that would allow public employees to retire at age 55 and collect more than half their highest salary for life (pension spiking). CalPERS predicted the benefits would require no increase in the State's contributions by projecting an average annual return of 8.25% over the next decade. When Board member Phil Angelides' aide questioned whether the stock market could grow that long, Board Chairman William Crist, a former union president, replied that they "could make all sorts of different assumptions and make predictions, but that's really more than I think we can expect our staff to do." CalPERS' chief actuary, objected, finding that it would be "fairly catastrophic" if the fund only grew at 4.4%. The benefits expansion bill, SB 400, passed with unanimous backing by California State Assembly Democrats and was signed into law by Governor Gray Davis. CalPERS then produced a video promoting the legislation with Chairman Crist promising greater benefits "without imposing any additional cost on the taxpayers" and the California State Employees Association president praising it as "the biggest thing since sliced bread". The next year the dot-com bubble burst, and CalPERS did not grow, instead losing value in the stock market downturn of 2002. In 2001–2002, CalPERS provided technical assistance for the Sarbanes-Oxley Act because it had sustained financial losses from the Enron and WorldCom bankruptcies. After the Great Recession, in 2009 CalPERS investments lost 24%, dropping $67 billion in value. Chairman Crist retired from the board and it was later revealed he had accepted more than $800,000 from a firm to ensure hundreds of millions of investment from CalPERS.

Domestic partnerships Davis recognized the domestic partnerships registry in 1999 and, in 2001, gave same-sex partners a few of the rights enjoyed by opposite-sex spouses such as making health care decisions for an incapacitated partner, acting as a conservator and inheriting property.

Relations with Mexico Early in 1999, Davis sought to improve relations with Mexico. Davis believed that California under Pete Wilson had left millions of dollars of potential trade revenues "on the table." Davis said he wanted California to have relations with Mexico that were more like Texas under then-Governor George W. Bush. Davis met with Mexican President Ernesto Zedillo to improve relations with California's southern neighbor and major trading partner within Davis's first 30 days in office. Because of the growth in the California economy, Davis opened and expanded trade offices around the world, including in Mexico. But most of these offices were eliminated in the 2003 California budget due to difficult fiscal times. R. J. Reynolds and Lorillard Tobacco sued over California's antismoking campaign but their lawsuit was dismissed in July 2003. Davis also authorized a new hard-hitting anti-smoking ad that graphically depicts the damage caused by secondhand smoke.

Davis approved legislation creating a telemarketing do-not-call list in 2003. Automakers claimed the law would lead smaller and more expensive cars to be sold in California. In 2003, Davis signed legislation aiming to ban junk email.

On March 25, 1999, Davis issued an executive order calling for the removal of MTBE (a toxic gasoline additive) from gasoline sold in the state. In 2001, in order for gas prices to remain reasonable in California while removing MTBE, Davis asked President George W. Bush to order the EPA to grant California a waiver on the federal minimum oxygen requirement. Without a waiver, California would have to import a much larger amount of ethanol per year and gas prices were projected to increase drastically. Bush did not grant the waiver and in 2002, Davis issued an executive order reversing his earlier executive order.

Davis's actions when it came to regulating business suggested that Davis was a more moderate governor. He worked to kill a comprehensive bill opposed by banks and insurance companies to protect consumers' personal financial information. "What you saw in the campaign was what you got," said UC Berkeley professor Bruce Cain. "He's tried to negotiate a course between the different interest groups and keep Democrats on a more centrist, business-oriented track". On December 7, 2000, suffering from low supply and idled power plants, the California Independent System Operator (CAISO), which manages the California power grid, declared the first statewide Stage 3 power alert, meaning power reserves were below 3 percent. Rolling blackouts were avoided when the state halted two large state and federal water pumps to conserve electricity.

During the electricity crisis, the Davis administration implemented a power conservation program that included television ads and financial incentives to reduce energy consumption. These efforts, the fear of rolling blackouts and the increased cost of electricity resulted in a 14.1% reduction in electricity usage from June 2000 to June 2001. Some of Davis's energy advisers were formerly employed by the same energy speculators who made millions from the crisis. In addition, the Democratic-controlled legislature would sometimes push Davis to act decisively by taking over power plants which were known to have been gamed and place them back under control of the utilities. Some conservatives argued that Davis signed overpriced energy contracts, employed incompetent negotiators and refused to allow electricity prices to rise for residences statewide much as they had in San Diego, which they argue could have given Davis more leverage against the energy traders and encouraged more conservation. The electricity crisis is considered one of the major factors that led to Davis's recall.

In a speech at UCLA on August 19, 2003, Davis apologized for being slow to act during the energy crisis, but then forcefully attacked the Houston-based energy suppliers: "I inherited the energy deregulation scheme which put us all at the mercy of the big energy producers. We got no help from the Federal government. In fact, when I was fighting Enron and the other energy companies, these same companies were sitting down with Vice President Cheney to draft a national energy strategy."

When the Enron verdicts were rendered years later, convicting Enron and other companies of market manipulation, Davis responded with the following quote:

Ken Lay and Jeffrey Skilling, more than anyone, are the reason I'm talking to you now from this law firm.

In March 2003, the Federal Energy Regulatory Commission's long-awaited report on the so-called "energy crisis" was released. That report substantially vindicated Davis, laying the blame for the energy disruption and raiding of California's treasury on deliberate tactics employed by some 25 energy trading companies, most of which were based in Texas. Of the latter, the most notable was Enron, a number of whose principals were subsequently criminally prosecuted for their roles.

Budget crisis During the economic boom years of the Davis administration, the California budget expanded to cover Davis's new programs. California's low national K-12 education rankings and Davis's campaign pledge to help education, along with the large majority that elected Davis to his first term and his early popularity, suggest that a majority of Californians supported increases in education spending during the early part of his first term when California was in budget surplus. Polls also showed that increased spending in education was supported by the California voters. Under the Davis administration, taxes were cut by over $5.1 billion that included a $3.5 billion cut in sales tax and a reduction in the vehicle licensing fees. The cut in sales taxes was mandated due to a 1991 law that required sales taxes to be reduced a quarter percent when budget reserves exceed 4 percent of the state general fund for two straight fiscal years which they did in 1999 and 2000. The beginning shortfall for the 2002-2003 state budget was $23.6 billion. Davis announced that the 2003-2004 budget shortfall would be $34.6 billion while the Legislative Analyst projected a $21.1.

Relationship with legislature Davis, a moderate, had some disagreements with the more liberal Democratic-controlled Legislature. By December 2001, Davis's approval ratings spiked up to 51%. His numbers declined back to the May 2001 level and remained about the same over the next year. In April 2003, Davis had a 24% approval rating and 65% disapproval rating. The leading causes of Davis's steep decline in popularity (and eventual recall) were the California electricity crisis, which involved a sharp increase in electricity rates and a series of blackouts in 2001, as well as voter discontent with an increase in state car registration taxes.

Davis had tried to maintain a middle-of-the-road approach, but ultimately alienated many of the state's liberals who viewed him as too conservative and many conservatives who viewed him as too liberal. Many were upset that in trying to balance the budget, Davis cut spending for schools while increasing spending for prisons. Some critics attributed the proposal to the California Correctional Peace Officers Associations donations to Davis's re-election campaign.

2002 gubernatorial campaign

Davis began fundraising for his 2002 reelection campaign early in his governorship. Davis raised $13.2 million in 1999 and $14.2 million in 2000, both unprecedented sums at the time so early in an elected term. Davis's 1999 and 2000 contributions included contributions from Pacific Gas & Electric and Edison International. One article in the San Francisco Chronicle claimed that Davis was raising $34,000 a day. Arnoldwatch.org, a project of the Foundation for Taxpayer and Consumer Rights, which is a nonpartisan organization that is critical of both Democrats and Republicans, called Davis a "pay to play" politician and a "sellout".

During the 2002 election campaign, Davis took the unusual step of taking out campaign ads during the Republican primaries against Los Angeles mayor Richard Riordan. Davis claimed that Riordan had attacked his record and that his campaign was defending his record. Polls showed that, as a moderate, Riordan would be a more formidable challenger in the general election than a conservative candidate. Polls even showed that Riordan would defeat Davis. Davis attacked Riordian with negative ads in the primary. The ads questioned Riordan's pro-choice stance by questioning Riordan's support of pro-life politicians and judges. The ads pointed out Riordan's position of wanting a moratorium on the death penalty as being to the left of Gray Davis, who strongly supported it.

Davis's negative ads against Riordan and a variety of other equally important factors explained on the 2002 election page, led to Riordan's defeat in the Republican primary by the more staunchly conservative candidate Bill Simon. In the first 10 weeks of 2002, Davis spent $10 million on ads: $3 million on positive ads boasting of his record, $7 million on negative ads against Riordan.

Davis was re-elected in the November 2002 general election following a long and bitter campaign against Simon, marked by accusations of ethical lapses on both sides and widespread voter apathy. Simon was also hurt by a financial fraud scandal that tarnished Simon's reputation. Davis's campaign touted California's improving test scores, environmental protection, health insurance coverage for children and lower prescription drug costs for seniors. Davis's campaign featured several negative ads that highlighted Simon's financial fraud scandal. The 2002 gubernatorial race was the most expensive in California state history with over $100 million spent. Davis's campaign was better financed; Davis had over $26 million more in campaign reserves than Simon in August 2002. Davis won the election, but the majority of voters disliked Davis and did not approve of his job performance.

Second term Davis signs AB 574 on September 11, 2003, establishing a student loan repayment program for members of the State Military Forces.

Davis's second term, which lasted only ten months, was dominated by the recall election. He was widely criticized for responding to the budget crisis by reversing a decade of fee reductions on motor vehicles, a decision which his opponents repeatedly referenced. Not long after Davis signed a law allowing the Department of Motor Vehicles to grant driver's licenses to undocumented immigrants, he was challenged to a recall election. Davis had also signed legislation requiring employers to pay for medical insurance for workers and legislation granting domestic partners many of the same rights as married people, and vetoed legislation that would have given undocumented immigrants free tuition for community college. Some political observers saw these efforts as an attempt to reinforce support from Hispanics, labor union members and liberal Democrats.

Governor-elect Arnold Schwarzenegger, President George W. Bush and Governor Gray Davis speak to firefighters on November 4, 2003.

Davis was governor during the southern California fires of 2003, more commonly known as the Cedar Fire. Davis declared a state of emergency in Los Angeles County, San Bernardino County, San Diego County and Ventura County in October 2003 and deployed the National Guard to help with disaster relief. By mid-November, the greater South Los Angeles area had been declared a disaster area. This enabled federal funding to help repair flooding and weather-related damage, including the destruction of thousands of acres of vegetation. The Cedar Fire was the last major event during Davis's tenure as governor. Both Davis and governor-elect Schwarzenegger worked to help with disaster relief. Schwarzenegger went to Washington, D.C., and met Vice President Dick Cheney to lobby the federal government for more disaster relief funds.

Davis spent 1,778 days as governor and signed 5,132 bills out of 6,244, vetoing 1,112 bills.

Recall election

In July 2003, a sufficient number of citizen signatures were collected for a recall election. The initial drive for the recall was fueled by funds from the personal fortune of U.S. Rep. Darrell Issa, a Republican who originally hoped to replace Davis himself. The 2003 California recall special election was the goal of the "Dump Davis" campaign and constituted the first gubernatorial recall in Californian history and only the second in U.S. history. Later, the unsuccessful recall of Scott Walker of Wisconsin in 2012 would be the third, and the 2021 California gubernatorial recall election of Gavin Newsom would be the fourth in September 2021.

Early in the run-up to the recall election, Davis called the recall election an "insult" to the eight million voters who had voted in the 2002 gubernatorial election. The Davis campaign tried to run against the recall Yes/No vote instead of against the candidates who were trying to replace him. Davis tried to depict the recall as a $66 million waste of money that could allow a candidate with a very small percentage of the vote to become Governor—potentially someone who was very liberal or conservative as there are no primaries in a recall election. Davis tried to run "outside the recall circus" and to make himself appear gubernatorial and hard at work for California, and who had made improvements to education and healthcare. Early August polls showed that over 50% supported the recall. Poll numbers in September showed a 3% drop in the number of California voters who were planning to vote yes on the recall. According to some analysts and campaign aides, Davis's town hall meetings and conversations with voters were softening his image. Davis claimed that he would have rather raised taxes on the upper tax brackets instead of restoring vehicle registration fees and college student tuition.

"It's like the Oakland Raiders saying to Tampa Bay, 'We know you beat us, but we want to play the Super Bowl again, said Davis about the recall.

On the night of the recall, Davis conceded defeat and thanked California for having elected him in five statewide elections. Davis mentioned what he defined as the accomplishments of his administration, such as improvements in education, environmental protection, and health insurance for children. Davis said he would help Schwarzenegger in the transition and he later urged his staff to do the same. His last day in office was November 17, 2003.

Life after politics

Davis participating in a public service announcement as part of the State of California's "Your Action Saves Lives" series promoting facemasks during the COVID-19 pandemic in 2020.

In December 2004, Davis announced that he was joining the law firm of Loeb & Loeb.

The debate about his legacy and role in the energy woes that proved to be his downfall remains. In a CNN interview on August 5, 2005, Davis expressed that he felt vindicated because of the revelation that Enron manipulated the California energy market and because of Schwarzenegger's then-low approval ratings. He also indicated that he had no interest in running for governor again, although he had been urged to run by some Democrats.

On May 21, 2009, Davis was keynote speaker at the Columbia Law School graduation ceremony.

In September 2024, Davis was one of several former governors to sign an open letter to all 50 current governors urging them to certify their states' votes after the upcoming November election.

Public image and political views Davis's moderate record made it difficult for him to appeal to the core constituency of the Democratic Party. During the recall, Davis failed to gain the full support he needed from his more liberal Democratic base. but when it was declared unconstitutional by the Ninth Circuit Court of Appeals, he did not appeal the decision.

Davis's personality was often described as aloof and his political style cautious and calculated instead of charismatic. He spent much of his campaign time talking about his accomplishments instead of providing voters with a vision.