Speaker Moretti delivers a speech harshly critical of Governor Reagan's administration. After highlighting how, at the state level, the three branches of government are almost always not co-equal, and there is often too little government. He believes the Reagan administration has failed to govern California and has badly misled its citizens. The legislature shares some blame for the lack of action on critical problems, he furthers, but the principal lack of initiative comes from the executive branch. Moretti explains the legislative process, discusses taxes, and analyzes welfare reform.