[img]http://www.pe.com/imagesdaily/2003/06-21/davis219.jpg[/img]
State to triple car tax Davis says the revenue is needed; Republicans vow to fight in court

06/21/2003

By MICHELLE DeARMOND and CLAIRE VITUCCI
THE PRESS-ENTERPRISE



California's finance director ordered the Department of Motor Vehicles to triple vehicle-license fees Friday to raise money for the cash-strapped state.

Republican lawmakers immediately vowed to sue and launch initiatives to stop the increase.

Gov. Davis, who met with police officers and firefighters Friday in Riverside, said law-enforcement agencies and fire departments would be devastated without the increase. Most of the vehicle-license fee revenues go to the cities and counties, which rely heavily on the money.

Gov. Davis, a Vietnam War veteran, addresses the American Legion Convention at the Riverside Convention Center on Friday.


[b]"If you want the police and fire to protect you, you have to pay for it," Davis said[/b] as he stood on a stage at the California Department of Forestry center in Riverside. "My parents told me there's no free lunch." Motorists who receive bills Aug. 1 or later will be charged at the higher rate, said Anita Gore, spokeswoman for Finance Director Steve Peace. Bills are sent 60 days before they're due, so the revenue won't be available until October.

The average California car owner will pay $234 now, plus other fees, instead of the $76 that would have been owed under the previous formula, she said.

The Legislature reduced the vehicle-license fee in 1998 but continued to pay local governments the same amounts as before. In his budget plan to reduce an estimated $38.2 billion funding gap, the governor proposed ending the backfill.

The law that lowered the annual vehicle-license fee to 0.65 percent of the car's value also stated that if the state ran out of money and could no longer pay the backfill, the fee would revert to the previous rate, which was 2 percent of the value, Gore said.

Peace said raising the fee was necessary.

"The state is broke," he said. "For the first time, we have none of our own money. As of today, we are operating totally on borrowed cash. In addition, we have no more borrowing capacity left."

Outcry from GOP leaders

The decision to trigger the increase prompted an outcry from Republican leaders, who oppose tax hikes and want to see spending cuts in the budget. They vowed to sue within the next two weeks to halt the increase, arguing that it is unconstitutional and should not happen without two-thirds approval of the Legislature.

In March, lawyers for Davis and Controller Steve Westly concluded that Peace could raise the tax on his own if he determined that the state government had "insufficient" funds.

"We believe that this so-called legal opinion is nothing but an end run around the Legislature," said Senate Republican Leader Jim Brulte of Rancho Cucamonga. "Only the Legislature can raise taxes."

Every Senate Republican has signed on to the lawsuit that the Howard Jarvis Taxpayers Association will be filing to challenge the increase, Brulte said.

California law prevents the association from going to court and getting a preliminary injunction to halt the tax, said Jon Coupal, association president. He hopes eventually to get the state to refund the money it will start collecting in October.

Raising the vehicle-license fee is expected to generate $4.2 billion in the 2003-04 fiscal year.

Coupal recommends that vehicle owners keep track of their payments so they can file claims for refunds "when we ultimately prevail in our lawsuit."

Sen. Tom McClintock, R-Thousand Oaks, immediately began efforts to repeal the tax. McClintock filed papers and plans to begin circulating petitions in support of two statewide initiatives that target the tax. One would abolish the tax. The other, a backup measure, would set it at $1 per year.

Local officials urge support

San Bernardino County's interim assistant county administrative officer decried efforts to stop the increase.

"If there's no backfill and they cut the tax permanently and pass it on to counties, it's a massive cut in local discretionary funds," said Dean Arabatzis, who added that would mean the county would have $90 million less in such funds next year.

While in Riverside on Friday, Davis called on local public-safety officials to comment on the issue.

Riverside Fire Chief Dave Carlson said cuts in the vehicle-license fee and backfills could force the city to lose two to four fire stations.

"So it is a severe impact on the city and the fire services and police services in cities, specifically Riverside," he said.

Davis has proposed a balanced budget that assumes the backfill will be eliminated and the vehicle-license fee increased, but the Legislature had not approved it. Democrats oppose program cuts, and Republicans have vowed to reject any budget that includes tax increases.

Democrats are the majority party in the Legislature, but they need the support of two Republicans in the state Senate and six in the Assembly to gain the required two-thirds vote for passage of the budget. The new fiscal year starts July 1.

Davis has estimated that the state will have a $38.2 billion funding gap through fiscal year 2003-04; however, his estimate doesn't take into account about $8 billion in cuts already approved by the Legislature.

Later Friday, the governor was scheduled to stop at Riverside's Mission Inn to meet with the Morongo Band of Mission Indians, whose reservation is near Banning. Earlier, the governor addressed the American Legion at the Riverside Convention Center.

The Associated Press contributed to this report.

I love the beach and many areas of Kali, but I cannot understand why any freedom loving person could live there.

Well, I have spent most of my life here, and it is a very nice area for weather.  It used to be a good area for a job.  

With taxes going through the roof, more new and stupid laws, and the lessening of services, I suspect this state will be BK soon enough.

Ok so if I can have all my good guns back and carry them I promise not to use the police.

You know, that's something that really pisses me off. This piece of shit is claiming that he needs money for the police and fire depts? Maybe if he didn't spend God knows how much money on entitlements, welfare, etc he wouldn't need to raise this tax? Gee, ya think? I just love it when they cry poverty for the police and fire depts when they wouldnt need the money for them (or anything else) if they didnt spend so much money on fucking social programs. "Let's see, if I claim it's for the police department, people will be more willing to open their wallets".

I laid down an ultimatum to my GF last week.  You have one week to decide if you are staying in this fucked up state without me or moving out with me.  We’ve been discussing this for over a year, she’s been sitting on the fence and my life has been on perma-hold waiting for a decision.

Today was D-Day and the answer was “Yes, I’ll go with you.”

I’d love to be gone before Nov 20th when my new rape-me-in-the-ass car registration fee is due, but that may be optimistic.

Just before we depart I’m planning to write Dufus Davis a nice letter explaining in clear, unambiguous terms why 2 home & auto owning,  taxpaying citizens are taking their money and their asses out of this socialist hell-hole, never to return again.

Unfortunately, the ex-wife and kids are still here and will continue to get around $14,000 a year from me that will contribute to this cesspool.  Oh, well.  Can’t win them all.

The dumbasses that voted for him had better not complain, that's all I got to say. Mother f'ers.
Only in CA could a loser of a governor be re-elected.
I'll be paying my reg in July so I won't get ass raped this year, but next year is another story, I have two cars [furious]

If you're close to moving, I heard you car wouldn't be working well and probably would need to be registered non-op, right?

That or register it in your new state ASAP.  Get a MailBoxes PO Box and use that for your address if nothing else.

What's on Joe (his real name) Davis' head?

How is that Gay Davis is not held accountable for his failures in Kali? Is it not true he inherited something like a 8 billion dollar surplus, that he spent into a 35 billion dollar deficit? .Why does he just keep greasing your poor folks up and nothing is done about it. Yah I know know you got the recall , but really.

Uhhh, NO, Gray "Weasel" Davis....the voters ALREADY paid for it. You just diddled their money away.

The ONLY free lunch going on here, is that in spite of your mismanagement, you get to make them pay for it AGAIN.

Weasel.

Hahaha, I love it.  I hope Kali raises taxes 1 billion percent and everyone who voted for that jackass and all his lemmings gets kicked into the ocean.  Keep the beautiful state available for us.

IN two local papers today were articles talking about how the current budget crisis isn't due to low taxes but overspending and overestimating on the .ca.gov's part.  Basically they thought that the Dot.Bomb economy would last (ok, show of hands...who didn't see that one coming?  Right....)

I wish public hangings were still allowed sometimes.

Just another nail in Davis' coffin.

The same day Davis stated this they Loacl Sherrif annouced 120 job cuts of officers.  He stated more money(taxes) was needed 911 calls would climb from 9 min to 16 min response times.

Scare tactices anyone??

It's all a bunch of lies.  Maybe I should write my congresswoman about it[rolleyes]

SGatr15

The State Leglislature is trying to get the Windfalls paid into the State Teachers Retirement System rescinded and the teachers are going bonkers.  They never should have paid extra into it based on the stock market bubble but it was just one in a bunch of political favors paid out when revenues soared.

Every motorist should be motivated not only to sign the re-call but to vote him out.  Now all the retired teachers have a reason.

ANSTAAFL... ?

On the plus side, between the year 2000 and the present, Davis & Co. created 30,000 new, full-time jobs in the state.

Um...well, yeah, as a matter of fact those 30,000 full-time jobs ARE new state employee positions, paid for by PRK taxpayers. What's that got to do with anything? Never mind, let's move on...

During that same period, Davis & Co. increased state spending approximately 30 percent over the inflation/population increase index. As a result, the PRK enjoys some of the finest roads and schools in the nation.

What's that you say, which nation? Um...well...since the PRK, where whites are now the minority and the southern border is virtually nonexistent, officially qualifies as a third world nation, I guess you could take your pick between, say, Nigeria and Nepal.

cynic