[1][4] Moretti's initial resistance to Reagan, however, gave way some cooperation, particularly on the issue of welfare costs.

Moretti and Reagan eventually developed a sense of mutual respect that culminated in the 1971 California Welfare Reform Act.

[2] In 1973, Moretti emerged as a leading figure in the successful campaign to defeat Reagan's Proposition 1, a ballot initiative to set state spending and taxes using formulas.

Seen as a vehicle to enhance Reagan's national profile ahead of a possible run for president, Moretti and other opponents argued the proposition would force drastic cuts in state services and force local governments to raise property taxes.

[6][7][8] In 1974, Moretti was a candidate for the office of Governor of California but was defeated in the Democratic primary by Jerry Brown, who went on to win the general election.