Ms Oropeza's view of the California public:
Posted on 02/25/2004 8:14:14 PM PST by calcowgirl
SACRAMENTO – Even as prices at the pump soar beyond $2 a gallon, a South Bay lawmaker has proposed to hike the gas tax by a nickel.
"It's not going to win me any popularity points from Southern California drivers," conceded Assemblywoman Jenny Oropeza, D-Carson.
However, the state's transportation system that drives the economy desperately needs an immediate cash infusion to unclog freeways and patch roads, she argued.
Gov. Arnold Schwarzenegger, who has proposed diverting more than $1 billion in highway funding to balance a debt-riddled budget, rejected a gas tax hike.
"The governor has made it abundantly clear that he is opposed to tax increases," said H.D. Palmer, a spokesman in the state Department of Finance.
Over the last few weeks, California drivers have been socked with accelerating gas prices, as much as 35 cents higher than a month ago in some areas. Some analysts fear the brakes won't be applied until mid-spring.
Californians already pay 18 cents a gallon in state sales tax, and an 18.4 cent federal levy. The state also imposes a sales tax, the amount of which depends on the locale.
Californians last approved a gas tax hike in 1990, which was phased-in over time. The last penny of the increase went into effect in the summer of 1994.
Oropeza said it's time to explore a new round of increases with the economy dependent on gridlock-free highways and funds hard to come by.
"Transportation funding is, to a degree, on life support," Oropeza said.
Separately, Sen. Tom Torlakson, D-Martinez, has introduced legislation to raise the gas tax by a dime a gallon. Of that, 5 cents would go to the state, 4 cents to cities and counties and a penny to air-pollution programs.
"We're sensitive about gas prices. We drive cars too," said Robert Oakes, a Torlakson spokesman.
But, Oakes continued, "How do you keep the state economy moving with an outdated transportation system?" Torlakson's legislation is SB 1614.
Both measures drew a sharp rebuke from the oil industry, which called the higher taxes "regressive" and harmful to the poor.
"Higher gasoline taxes are a drag on the economy," said Dave Fogarty, a spokesman for the Western States Petroleum Association.
Oropeza, whose tax proposal is in AB 2847, said she is not wed to any hike. As chairwoman of the transportation committee, she plans hearings on ways to bridge the difference between funding and need.
"I'm not taking sides in this debate. I'm initiating the debate," Oropeza said.
The state estimates about $5 billion worth of roads projects will be neglected because of the budget crisis.
Politically, a gas tax increase faces a bumpy road at best. Motorists are steaming over price spikes and likely will cringe at the thought of paying even more.
Torlakson has described his measure as a "road user fee." If it is determined to be a user fee, and not a tax, Torlakson could avoid the tough job of convincing two-thirds of the Legislature to support an increase. Oropeza said she may take a similar tack.
Oropeza said her goal is to inject a gas tax into the mix when the governor and lawmakers intensify talks over the state budget and spending on roads.
The governor's proposal to divert transportation dollars is "damaging" to the state's economy and is only necessary because of Schwarzenegger's "stubbornness" in spurning tax increases, she said.
Liz Hill, the respected nonpartisan Legislative Analyst, has recommended lawmakers raise the gas tax by 6 cents.
"We are very concerned that transportation project delay in California is harming the California economy," Hill said in releasing her proposal last week.
Every penny increase would generate about $180 million each year, according to state analysts. Motorists here burn 15.5 billion gallons of fuel annually.
Both the Legislature and governor have fueled the crisis, critics say, by dipping into a special transportation account to pay for general state programs.
Taking a cue from his predecessor, Schwarzenegger proposes to siphon $1 billion in transportation funds generated by the sales tax on gasoline – a levy separate from the 18-cent gas tax.
Voters in March 2002 approved Proposition 42, which set aside nearly a third of that sales tax revenue for transportation projects and new school buses. But, the proposition did not include protections from state raids on the account.
The governor also wants to take nearly $190 million out of the Proposition 42 transportation account to help close a yawning budget gap this fiscal year.
Schwarzenegger's spending plan does not include provisions to repay the transportation account – a significant shift from former Gov. Gray Davis' policy of treating the redistribution as a loan.
"This is an unfortunate price we have to pay this year because previous budgets have been papered over," Palmer said.
Torlakson and Oropeza, although party to past diversions of transportation funds, said it's time to make sure the sakes tax revenue remains earmarked for roads.
Torlakson plans to introduce a constitutional amendment to shield the fund, estimated at up to $1.4 billion annually, unless there's a natural disaster.
Oropeza said she could support a "firewall between the funds and a grab by the government."
Torlakson plans to introduce a constitutional amendment to shield the fund, estimated at up to $1.4 billion annually, unless there's a natural disaster
If Torlakson can pull this off (the amendment) there will be no need to raise transportation taxes.
This technique is borrowed from the master, Schwarzenegger. Ask for a large tax increase and then promise to put mechanisms in place that will prevent it from every happening again.
Ms Oropeza's view of the California public:
Hey, score one for Arnoold!
Schwarzenegger has raided the transportation funds just like his predecessors.
He should then get points because he won't raise taxes to supplement the funds he raided?
Taking a cue from his predecessor, Schwarzenegger proposes to siphon $1 billion in transportation funds generated by the sales tax on gasoline – a levy separate from the 18-cent gas tax.Voters in March 2002 approved Proposition 42, which set aside nearly a third of that sales tax revenue for transportation projects and new school buses. But, the proposition did not include protections from state raids on the account.
The governor also wants to take nearly $190 million out of the Proposition 42 transportation account to help close a yawning budget gap this fiscal year.
Schwarzenegger's spending plan does not include provisions to repay the transportation account – a significant shift from former Gov. Gray Davis' policy of treating the redistribution as a loan.
Now THAT would be GREAT news!
I'm gettin' REAL sick of those Barbara Kerr commercials. ;-)
Yep. Not as of now. And I certainly hope he won't.
That is what he campaigned on; that is what he should be held to.
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