‘Might Cost Us Our Jobs,’ White Tells Legislature : Texas Governor Asks Boost in Sales Tax

Gov. Mark White, gambling with his political future three months before elections, asked legislators Wednesday for a temporary sales tax increase to help close the state’s $3.5-billion budget deficit.

“Some say this might cost us our jobs. And it might,” White told the Legislature on the first day of a special session. “I know what I’m asking of you when I call for a tax increase.

“It’s not a question of want, it’s a question of need,” White said. “We must do our job for the people of Texas--regardless of the consequences.”

Could Raise $900 Million

His plan would raise the sales tax rate to 5% from 4 1/8%. That would raise between $800 million and $900 million, experts said.

The plan calls also for $1.4 billion in spending cuts, an action that White said would be “agonizing,” to counteract the deficit brought on by worldwide low oil prices.

He said the need to save essential state services should rule out spending cuts alone, the path many conservative lawmakers say they prefer.

The tax increase would take effect Sept. 1 and expire automatically on Aug. 31, 1987, the end of the state’s current two-year budget cycle.

Proposes Salary Rollback

After vowing that layoffs of state workers would be the last resort, White proposed eliminating the 3% pay raise they are supposed to receive Sept. 1 and asked that their salaries be rolled back 3% for the 1987 budget year.

White pledged also to continue full spending for public schools, saying the sweeping improvements adopted in 1984 are too important to drop.

White, a Democrat, faces a tough reelection fight against former Gov. Bill Clements, the man he ousted in 1982. Clements had no comment on White’s proposals, press secretary Reggie Bashur said.

Against Income Tax

White asked the Legislature to endorse a constitutional amendment prohibiting imposition of either a personal or corporate state income tax. Clements has charged that, if White is reelected, he would impose an income tax.

Oil has dropped from near $30 a barrel last November to below $10 this year. “We would not be here today if oil were $26 a barrel,” White said.

The state gets substantial income from oil production taxes that are pegged to the price. In addition, the sagging oil economy has created soaring unemployment and lowered collections of other taxes, such as the sales tax.

Comptroller Bob Bullock last month estimated a total state deficit of $3.5 billion, a figure which includes loss of some federal funds, lost interest payments and other factors such as the possible outcome of various lawsuits.

White’s proposal would erase $2.23 billion, which his aides said would cover the governor’s estimate of the deficit total without the contingencies.

The governor’s plan met with skepticism from many legislators.

On Tuesday, House Speaker Gibson Lewis vowed to block a tax increase. Since any tax legislation must start in the House, Lewis’s support is crucial.