September 17th, 2004

GOVERNOR SCHWARZENEGGER ESTABLISHES COUNCIL OF ECONOMIC ADVISORS

Governor Arnold Schwarzenegger today announced the establishment of the Council of Economic Advisors.

The 16-member council will serve in an advisory capacity to the Governor on economic matters. The council will meet with the Governor periodically to assist him in confronting the economic challenges facing the State in addition to identifying economic opportunities for California. The Council will be chaired by former Secretary of State George P. Shultz. The Governor has also established a Commission on Jobs and Economic Growth. The co-chairmen of the Jobs Commission, Warren Hellman and Ronald Olson, will serve as ex-officio members of the Council. Secretary Shultz will also serve as an ex-officio member of the Commission on Jobs and Economic Growth to facilitate coordination and communication between the two entities.

"The people of California elected me to return economic vitality to the Golden State by creating a more competitive economic environment that encourages job creation," said Governor Schwarzenegger. "This is a group of brilliant individuals with a clear understanding of the complexities of our economy and the steps necessary to rebuild it. I look forward to gaining their insight and advice as we work together to improve California's economic and jobs climate."

Secretary Shultz is the Thomas W. and Susan B. Ford Distinguished Fellow at the Hoover Institution. He was sworn in on July 16, 1982, as the sixtieth U.S. Secretary of State and served until January 20, 1989. In January 1989, he rejoined Stanford University as the Jack Steele Parker Professor of International Economics at the Graduate School of Business and as a distinguished fellow at the Hoover Institution. He is a member of the board of directors of Bechtel Group, Fremont Group, Gilead Sciences, and Charles Schwab & Co. He is also chairman of the J. P. Morgan Chase International Council and the Accenture Energy Advisory Board. He was awarded the Medal of Freedom, the nation's highest civilian honor, on January 19, 1989. He also received the Seoul Peace Price in 1992, the Eisenhower Medal for Leadership and Service in 2001 and the Reagan Distinguished American Award in 2002.

Council members:

Dr. Annelise Anderson is a research fellow at the Hoover Institution at Stanford University with expertise in the area of governmental economic reform. She was associate director of the Office of Management and Budget in the Reagan Administration and focused on domestic budget policy. She served on the Commission on Privatization in the Reagan Administration and Governor Pete Wilson's Council of Economic Advisors. Prior to her service in the federal government, she was professor of economics and finance at California State University, Hayward. In addition to her service within the United States, Anderson has advised the governments of Russia, Romania and the Republic of Georgia on economic reform. Anderson earned her Ph.D. in Business Administration from Columbia University.

Dr. Martin Anderson is the Keith and Jan Hurlbut senior fellow at the Hoover Institution at Stanford University. Anderson has been a senior fellow at the Hoover Institution since 1971, with his primary attention devoted to research and writing on domestic policy issues. He served in Washington, D.C. as a key policy advisor for President Nixon and President Reagan. His public service also includes membership on the President's Economic Policy Advisory Board from 1982 to 1989, the California Governor's Council of Economic Advisers from 1993 to 1998 and as chairman of the Congressional Policy Advisory Board from 1998 to 2001. He has also taught at Columbia University's Graduate School of Business as a professor of finance. Anderson received his undergraduate degree and a Masters degree in engineering and business administration from Dartmouth College and his Ph.D. from the Massachusetts Institute of Technology in Industrial Management.

Dr. Gary S. Becker, who won the Nobel Memorial Prize for Economic Science in 1992, is a University Professor of Economics and Sociology at the University of Chicago and the Rose-Marie and Jack R. Anderson senior fellow at the Hoover Institution at Stanford University. He is recognized for his expertise in human capital, economics of the family, and economic analysis of crime, discrimination, and population. His current research focuses on habits and addictions, formation of preferences, human capital and population growth. Becker serves as a research associate of the Economics Research Center at the National Opinion Research Center and as an associate member of the Institute of Fiscal and Monetary Policy for Japan's Ministry of Finance. He was a professor at the University of Chicago from 1954 to 1957 and taught at Columbia University for twelve years before returning to the University of Chicago in 1968. In 2000 he received the National Medal of Science for his work in social policy. Becker attended Princeton University as an undergraduate and earned a Masters and a Ph.D. from the University of Chicago.

Dr. Michael J. Boskin is a senior fellow at the Hoover Institution and the T. M. Friedman Professor of Economics at Stanford University. He is also a research associate at the National Bureau of Economic Research. In addition, he serves on several federal advisory panels and as an adviser to presidents and prime ministers, finance ministries, and central banks around the world. Boskin served as chairman of the President's Council of Economic Advisers from 1989 to 1993 and the blue-ribbon Commission on Consumer Price Index. Boskin also serves on several corporate boards of directors and has authored more than one hundred books and articles. In addition to Stanford and the University of California, Boskin has taught at Harvard and Yale. Boskin has received numerous professional awards and citations, including Stanford's Distinguished Teaching Award in 1988, the National Association of Business Economists' Abramson Award for outstanding research and its Distinguished Fellow Award, the Medal of the President of the Italian Republic in 1991 for his contributions to global economic understanding, and the 1998 Adam Smith Prize for outstanding contributions to economics. Boskin earned his Bachelor of Arts from the University of California at Berkeley, where he also earned his Master of Arts and Ph.D.

Dr. Tom Campbell, an economist and lawyer, is the Bank of America dean and professor of Business at the Haas School of Business, at the University of California, Berkeley. Before assuming the deanship at the Haas school, he was a law professor at Stanford University for nineteen years. He was a member of the California State Senate from 1993 to 1995 and a United States Congressman representing the Silicon Valley from 1989 to 1993 and again from 1995 to 2001. During his congressional tenure he authored the 1998 Food Bank Relief Act and the 2000 Peace Corps Reauthorization Act. Since 2003, Campbell has served as the chair of the World Affairs Council of Northern California. He holds a Ph.D. in economics from the University of Chicago and a Juris Doctorate from Harvard Law School, where he served on the Board of Editors of the Harvard Law Review.

Dr. John F. Cogan is the Leonard and Shirley Ely Senior Fellow at the Hoover Institution at Stanford University and a professor in the Public Policy Program at Stanford University. He was an associate economist at the Rand Corporation from 1975 to 1980. In 1979, Cogan was appointed a national fellow at the Hoover Institution. In 1980, he was appointed a senior research fellow and in 1984 he became a senior fellow. Cogan interrupted his academic career in 1981 to enter public service as assistant secretary for policy in the U.S. Department of Labor. In 1983, he joined the Office of Management and Budget where he was first named associate director for economics and government and subsequently associate director for human resources. In 1988, he was appointed deputy director of the Office. He has served as a member of the U.S. Bipartisan Commission on Health Care (The Pepper Commission), the Social Security Notch Commission, and the National Academy of Sciences' panel on Poverty and Family Assistance. In May 2001, Cogan was appointed to serve on a bipartisan commission on Social Security reform. He is also a member of the Congressional Budget Office's Panel of Economic Advisors, the Congressional Policy Advisory Committee and serves as an economic advisor to President George W. Bush. Cogan received his Bachelor of Arts degree and Ph.D. from the University of California, Los Angeles, both in economics.

Robert Denham is a partner in the law firm of Munger, Tolles & Olson, LLP, having rejoined the firm as a partner in 1998 after serving as the chairman and chief executive officer of Salomon Inc. Denham joined Salomon in August 1991 as general counsel and became chairman and chief executive officer in 1992. In this position, he managed the rebuilding of Salomon following the settlement of the U.S. Government's Treasury auction claims against the firm, developed risk management procedures and developed the firm's bank and bridge lending business. In September 1997, Denham negotiated the sale of Salomon Inc. to Travelers. Prior to joining Salomon, Denham had been at Munger, Tolles & Olson, LLP for twenty years, including five years as managing partner. Denham earned an undergraduate degree from the University of Texas, a master's degree in government from Harvard University and a Juris Doctorate from Harvard Law School.

Dr. James L. Doti has been president of Chapman University since 1991 and holds the Donald Bren Distinguished Chair in Business and Economics. Doti joined the Chapman faculty in 1974, and in 1978, he founded the University's Anderson Center for Economic Research. He also served as dean of the George L. Argyros School of Business and Economics and as acting president of the University prior to assuming his position as president. Doti is the co-author of two econometric texts, he co-edited a collection of readings in free enterprise that received the Templeton Honor Award for Scholarly Excellence and his work is frequently published in nationally read periodicals. Other awards Dr. Doti has received include the Horatio Alger Award and the Ellis Island Medal of Honor, and he was honored by the Council for Advancement of Education as 2003 CEO of the Year. Doti is also chairman of the Association for Independent California Colleges and Universities, serves on the Orange County Business Committee for the Arts, the academic advisory board of the Reason Foundation, in addition to service on several corporate boards. He earned a Bachelor of Science degree in economics from the University of Illinois, Chicago, and his Master of Arts and Ph.D. degrees from the University of Chicago.

Sebastian Edwards is the Henry Ford II Professor of International Business Economics at the Anderson Graduate School of Management at the University of California, Los Angeles. He is also a research associate of the National Bureau of Economic Research, a member of the advisory board of Transnational Research Corporation, co-chairman of the Inter American Seminar on Economics and president of the Latin American and Caribbean Economic Association. Edwards is a profesor extraordinario at the IAE, Universidad Austral, Argentina, and a member of the Scientific Advisory Council of the Kiel Institute of World Economics in Germany. From 1993 to April 1996, he was the chief economist for the Latin America and Caribbean Region of the World Bank. Edwards is the author of more that 200 scientific articles on international economics, macroeconomics and economic development. Edwards has been a consultant to a number of multilateral institutions, including the Inter-American Development Bank, the World Bank, the IMF, and the OECD. He has also been a consultant to the United States Agency for International Development, and to a number of national and international corporations. He was educated at the Catholic University of Chile, and earned a Master of Arts. and Ph.D. in economics from the University of Chicago.

Dr. Milton Friedman, recipient of the 1976 Nobel Prize for Economic Science, has been a senior research fellow at the Hoover Institution, Stanford University, since 1977. He is also Paul Snowden Russell Distinguished Service Professor Emeritus of Economics at the University of Chicago, where he taught from 1946 to 1976, and was a member of the research staff of the National Bureau of Economic Research from 1937 to 1981. Friedman was awarded the Presidential Medal of Freedom in 1988 and received the National Medal of Science the same year. In addition to his scientific work, Friedman has also written extensively on public policy, always with primary emphasis on the preservation and extension of individual freedom. He has also served as a member of the President's Commission on an All-Volunteer Armed Force, the President's Commission on White House Fellows, and President Reagan's Economic Policy Advisory Board. Friedman is a past president of the American Economic Association, the Western Economic Association, and the Mont Pelerin Society, and is a member of the American Philosophical Society and of the National Academy of Sciences. Friedman earned a Bachelor of Arts from Rutgers University, a Master of Arts from the University of Chicago, and a Ph.D. from Columbia University.

Warren Hellman is the Chairman and co-founder of San Francisco-based Hellman & Friedman, LLC, a private equity investment firm. Since he founded the company in 1984, Mr. Hellman has grown Hellman & Friedman into one of the top 100 private equity funds in the country. Hellman & Friedman has raised and managed more than $5 billion in capital and invested in over 45 job-creating companies. Hellman is currently a director of The NASDAQ Stock Market, Inc., in which Hellman & Friedman is a 10% investor. Previously, he was a general partner of Hellman, Ferri Investment Associates, Matrix Management Company and Lehman Brothers. At Lehman Brothers, he served as president and chairman of Lehman Corporation. He is a board member of the San Francisco Committee on Jobs and SFSOS; a trustee of The San Francisco Foundation; and a member of the University of California Walter A. Haas School of Business Advisory Board. A native of New York City, Hellman is a graduate of the University of California at Berkeley and the Harvard Business School.

Dr. Arthur B. Laffer is the founder and chairman of Laffer Associates, an economic research and consulting firm. He was formerly the distinguished university professor at Pepperdine University and a member of the Pepperdine Board of Directors. From 1976 to 1984 Laffer was the Charles B. Thornton Professor of Business Economics at the University of Southern California. He was an Associate Professor of Business Economics at the University of Chicago from 1970 to 1976 and a member of the Chicago faculty from 1967 through 1976. During the years 1972 to 1977, Laffer was a consultant to Secretary of the Treasury William Simon, Secretary of Defense Donald Rumsfeld and Secretary of the Treasury George Shultz. From October 1970 to July 1972 he served as chief economist at the Office of Management and Budget. Laffer is a founding member of the Congressional Policy Advisory Board, was a member of President Reagan's Economic Policy Advisory Board. He has received several awards for his economic work including two Graham and Dodd Awards from the Financial Analyst; the Distinguished Service Award by the National Association of Investment Clubs; the Adam Smith Award for his insights and contributions to the Wealth of Nations; and the Daniel Webster Award for public speaking by the International Platform Association. Laffer earned a Bachelor of Arts in economics from Yale University and a Master of Business Administration and a Ph.D. in economics from Stanford University.

Ron Olson is a partner in Los Angeles law firm of Munger, Tolles & Olson, LLP, where he specializes in commercial litigation and counseling executives and boards of directors. He has represented such companies as Berkshire Hathaway, Shell, Merrill Lynch, Edison International, Microsoft, and Universal Studios. He has represented clients in some of California's most historic matters, including the electricity crisis and several landmark antitrust suits, and negotiated the $400 million settlement of the Orange County bankruptcy case. Olson currently chairs the Board of Trustees for the RAND Corporation. He is a director of Berkshire Hathaway, Edison International, City National Corporation, Washington Post Company, California Institute of Technology, Southern California Public Radio, the Council on Foreign Relations and the Mayo Clinic Foundation. Olson earned his Bachelor of Science degree from Drake University and his Juris Doctorate degree from the University of Michigan and a Diploma in Law from Oxford University, England. He began his career as an attorney for the Civil Rights Division of the Department of Justice and in 1968 clerked for Chief Judge David L. Bazelon, U.S. Court of Appeals for the D.C. Circuit.

John B. Shoven is the Wallace R. Hawley Director of the Stanford Institute for Economic Policy Research and the Charles R. Schwab Professor of Economics at Stanford University. He is also a Senior Fellow at the Hoover Institution and a research associate of the National Bureau of Economic Research. He specializes in public finance and corporate finance and has published on Social Security, corporate and personal taxation, mutual funds, pension plans and applied general equilibrium economics. Shoven has been at Stanford since 1973, serving as chairman of the economics department from 1986 to 1989, director of the Center for Economic Policy Research from 1989 to 1993, and dean of the School of Humanities and Sciences from 1993 to 1998. Shoven served as a consultant for the U.S. Treasury Department from 1975 to 1988. The author of more than one hundred professional articles and eighteen books, he has been a visiting professor at Harvard University, the London School of Economics, Kyoto University, and Monash University. In 1995 he was elected a fellow of the American Academy of Arts and Sciences. Shoven earned his Ph.D in Economics from Yale University.

Dr. James L. Sweeney, of Stanford University, is professor of management science and engineering, senior fellow of the Stanford Institute for Economic Policy Research and senior fellow of the Hoover Institution. His professional activities focus on economic policy and analysis, particularly in energy, natural resources, and the environment. He is also a senior fellow of the U.S. Association for Energy Economics and a fellow of the California Council on Science and Technology. In addition, Sweeney recently served on the review panel for the State of California Public Interest Energy Research program, the National Research Council's Committee on Benefits of Department of Energy Research and Development in Energy Efficiency and Fossil Energy and the National Research Council's Committee on Effectiveness and Impact of Corporate Average Fuel Economy Standards. He holds a Bachelor of Science degree from the Massachusetts Institute of Technology in electrical engineering and a Ph.D. from Stanford University in engineering-economic systems.