Deukmejian Warily Skirts Endorsement of Tax Boost

SACRAMENTO —  Gov. George Deukmejian would like to be remembered as the governor who never raised taxes.

And so in calling Tuesday for a special statewide election to consider a $20-billion transportation package, the Republican governor carefully orchestrated his announcement so he would never have to endorse the tax increase that is the centerpiece of the plan.

“It’s not my proposal,” Deukmejian insisted only hours after presenting the plan to the press and then to two dozen of the state’s top transportation leaders.

In talking with reporters, the governor repeatedly refused to say even whether he supports the proposal he outlined, which includes a gasoline tax hike of 9 cents per gallon and a $2.4-billion bond measure.

Deukmejian scolded the Capitol press corps saying, “Get off this business of, you know, does the governor support this or doesn’t he, or is the governor changing his position or not changing his position.”

After six years in office, Deukmejian is caught in a sensitive predicament.

Under his tight-fisted fiscal leadership, the state’s network of roads and highways has become so congested that many of the governor’s own supporters in the business community are clamoring for increased spending to solve the crisis.

At the same time, the governor has repeatedly pledged that he would not raise what he calls “general taxes,” whether to pay for transportation improvements or any other program.

So in an attempt to balance between the two, Deukmejian proposed placing the $20-billion transportation plan before the voters--but refused personally to take a stand on the issue.

“What I said to the public when I ran for governor on two occasions was that I was not going to support general tax increases,” he explained. “This approach leaves it up to the people to decide whether or not they want to increase their own taxes.”

Deukmejian acknowledged that “there are some features of this that I do not support.” But he added it would be “premature” to give his views on the proposed ballot measure. “I want to reserve my answer to that question for a little later in the process,” he said.

Assumes Limited Role

Under the proposal outlined by Deukmejian, his only role in placing the package before the voters would be to call a special election. It is up to the Legislature to actually place the tax hike and spending plan on the ballot.

This is not the first time Deukmejian has become the focus of questions about whether he supports a tax increase.

Last year, he proposed raising $800 million in new revenues to make up for a drop-off in expected state funds. He insisted that the plan was merely “a temporary minimal adjustment.” But after legislators and the press labeled it a tax increase, he angrily withdrew the plan.

Faced with a fiscal crisis early in his Administration, Deukmejian approved a series of tax increases in 1983. One, a short-term increase in the statewide sales tax, never took effect because the state’s revenues increased with an upswing in the economy.

However, a number of other tax hikes Deukmejian approved remain in effect today, including an increase in motor vehicle fees, a sales tax on video rentals and higher property taxes brought about by the elimination of lengthy delays in reassesing property when it is sold.

Fred Silva, an adviser to Senate President Pro Tem David A. Roberti (D-Los Angeles), estimated that the tax increases cost taxpayers $3.7 billion in the first five years after the governor signed them into law.

Deukmejian said the transportation package he outlined Tuesday represented a “consensus” of the legislative, business and labor leaders he called to a series of “summit” meetings over the last two months.

“I think it is fair to say what I gleaned from those discussions is incorporated in the major elements of this package,” he said.

Stood Nearly Alone

While the elements of the package appeared to enjoy the general support of those attending the summit, Deukmejian stood nearly alone in his insistence that the package be submitted to the voters.

If the governor wanted to disavow fathering the proposal, however, some of his Republican allies did not get the message.

“I’m pleased Gov. Deukmejian has offered this statesmanlike plan to meet our transportation needs,” Assembly GOP Leader Ross Johnson said in a press release.