February 28, 2011

Governor Brown is Looking for Votes


by Rebecca Burgoyne, 
CFC Research Analyst


California Governor Jerry Brown and legislative majority Democrats continue to look for Republican votes to put $12.5 billion in tax extensions related to higher income, sales and vehicles on a June special election ballot. So far, Republicans are having none of it. While the possibility of adding five additional years of special taxes onto the ballot without Republican votes may exist, Democrats are trying to find two Republicans in the Assembly and two in the Senate to make up the otherwise needed two-thirds majority to raise taxes (assuming all 52 Democrats vote for the increases). Brown would prefer six or so Republicans join him to project a sense of bipartisan support, a move Republicans describe as “looking for political cover.”

Last week, 30 of 42 Republican legislators joined a new California Taxpayers Cause. While all of them had previously signed a No New Taxes pledge, sponsored by Americans for Tax Reform, they now pledge to oppose placing any tax increases on the ballot, unless equivalent cuts appear on the same ballot. 

Should he achieve the seemingly insurmountable task of getting tax extensions on the June ballot, the Governor would still need to convince the California voter, who in the past has been reticent to approve tax increases. One exception – when Governor Pete Wilson successfully sponsored a tax extension in 1993 – has laid the roadmap for Governor Brown and the Democrats. Now, Governor Brown is painstakingly portraying the increase as extensions – not added taxes. Already Brown – backed by labor unions – is laying the groundwork, and polls have found “great but not insurmountable” opposition to tax increases. 

Last week, in a rare appearance before a budget committee, Gov. Brown testified, “I want to make one thing clear, and that’s another reason I came here: If we don’t get the tax extensions, I am not going to sign a budget that is not an all-cuts budget. I think we need to meet the moment of truth now,” he added, “…and if we can’t do that, then maybe we don’t get a budget.” 

While Brown and the majority’s leadership troll for budget votes, hard-working California families have already tightened their budgets and want their representatives to do the same. Sen. Tony Strickland (R-Moorpark), co-chairman of the new taxpayer caucus, argues, “Taxpayers in California are under increasing assault like never before.” In the midst of a continuing recession, unemployment remains at 12.5 percent, many homeowners are under water with their mortgages, and Californians pay 9.08 percent in state and local taxes – second only to Tennessee. Taxpayers voted not to extend the temporary increases a year ago. If they make it onto a June ballot, and people are again asked to approve higher taxes, they may refuse them again.