Minority wrongs

National Review, July 20, 1992

CALIFORNIA IS STARING at another whopping budget deficit. To his credit, Governor Pete Wilson says he has ruled out tax hikes. Yet his new austerity has limits; some of the state's costly sacred cows may again go untouched.

Consider the affirmative-action program for public works. Quotas or "goals" benefit favored companies while bilking taxpayers. Contractors who would work for the state are muscled into giving 15 per cent of subcontracts to minority-owned businesses, 5 per cent to firms headed by women, and 3 per cent to companies run by disabled veterans. If you think the system is about giving a break to struggling, low-income businesses, think again. Minority or female-owned firms are favored regardless of how robust their financial condition, net worth, or gross revenues. And there's no "graduation" requirement limiting the time during which companies rate special status. So a small group of firms can hog minority contracts year in and year out, leaving the less fortunate to scramble for crumbs.

Many contractors have found it difficult to meet the quotas--suggesting the mandates far outstrip California's pool of qualified black, Hispanic, and female subcontractors.

Incredibly, the governor's aides, who should be lobbying to cancel it, are talking about pushing the program more aggressively. Wasn't opposition to quotas a major theme of the 1990 campaign? It's time he proved he was sincere by ordering an end to reverse discrimination in state contracts.