It is no secret that California is ailing. What is needed is a California political reform act for 2011 and beyond. The state is mired in a roughly $10 billion budget deficit which as recently as January was at a staggering $26 billion. Through a round of budget cuts and tax increases fueled by the budget vote reform of proposition 25, lawmakers have significantly reduced the state deficit. However, $10 billion is still a serious amount of money and can potentially drag the state into further deficit spending. Infrastructure is falling apart and California’s position as a premier destination for the world’s best and brightest is now threatened.

To get California back in the black there has to be further political reform and the appetite for political change has to grow. The status quo has clearly failed the state. Change must be mandated now. Below are three suggestions to help get the state get back on track. Hopefully these policies can serve as the basis of a new California political reform act for the future.

1. Extend Gubernatorial Term Limits: Reform has to start at the top. State politics and policy making is a complex and arduous process to say the least. When the impact of the average piece of legislation is not felt for at least seven years, it makes sense for the leadership to not only see legislation through but also adjust and fortify it. Two terms is just not enough to make lasting generational change.

2. Moratorium on State Payroll Tax for New Businesses: Impose a two year moratorium on state payroll tax for newly started businesses. The employers of the majority of people not just in California, but in the United States as well are small businesses. The state corporate tax structure has long needed reform, however an initiative such as this is not overly complex to implement, but has tremendous potential to spur new job growth. And this growth can likely help California solidify new economy industries such as biotechnology and green tech.

3. Maintain Multi Year Budgets: Budget reform has been a hot topic in California. The process itself is very political and usually leaves both major parties with a bad taste in their mouth. Instead of making this a yearly roll in the mud, have budgets that last for two or three years at a time. This will alleviate yearly gridlock and gimmicky "flavor of the month" policies. Budgetary policies are marathons, not sprints!