Posted on 06/20/2003 3:18:04 PM PDT by NathanR
The Los Angeles County Board of Supervisors is expected to vote next week to oppose a bill that could soon give cities and counties the authority to impose a personal income tax on residents.
Earlier this month, the Assembly passed a bill now moving through the Senate that would allow cities and counties, with approval from voters, to tax residents' personal income to fund public safety.
However, before the issue could be put on a ballot, local governments would first have to create public safety finance agencies. The tax collected would go to that entity and be used only for fire, police and sheriff's services or public safety-related capital projects, officials said.
The idea, say supporters, is to give local governments a tool to raise money in light of expected cuts in revenue from Sacramento. Without it, city leaders have said they may have to make cuts in public safety and other vital services.
"I support this simply as a means of giving an option or alternative to local government to ride out this budget crisis,' said Assemblyman Ron Calderon, D- Montebello.
Calderon said the "intimidation level is very high' in Sacramento and Republicans are refusing to accept any tax increases.
But County Supervisor Don Knabe said the bill would create a first in California history one that he believes should not happen.
"I think it's another attempt by the state to shirk their responsibility and pass the buck to cities and counties,' Knabe said.
Knabe also said he fears it would create an inequity among local governments based on income and could eventually pit cities and counties against themselves.
"I just think it's an unfair proposal,' Knabe said.
The bill was introduced by Assemblyman Mark Leno, D-San Francisco, and supported by Assemblyman Ed Chavez, D-La Puente.
West Covina Mayor Steve Herfert said it sounded like a way for the state to worm out of its responsibilities to fund mandated programs.
"They don't want to raise taxes so they're trying to make us do it,' he said. "I think they're just passing the buck.'
Supporters caution, however, that the bill would not force cities to impose the tax.
"It's no harm, no foul if cities choose not to take the opportunity,' said Keri Bailey, a spokeswoman for Chavez. "It's just something floating out there in case of a worst-case scenario.'
Enjoy
Most politicians will be falling all over themselves to dip into this new source of revenue. The state politicians will use the local income tax as an excuse to divert state tax revenues away from things they have traditionally funded because they don't need it.
When California approved the state lottery to help fund schoools, the politicians redirected state income tax revenues away from schools in proportion to the new revenue stream from the lottery. There was no net improvement in school funding. The money went somewhere else.
The idea is a phony-baloney money shuffle in an attempt to bypass the Prop 13 requirement that new local taxes have to be approved by 2/3s of the voters. The first governmental entity that tries this crap is going to have to defend itself all the way up to the CA Supreme Court.
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