Willie Brown Proposes Cut in Sales Tax for December

In the continuing range war between Gov. George Deukmejian and state Demorats over a $700-million budget surplus, Assembly Speaker Willie Brown on Sunday threatened to “shock” the governor by introducing a bill to ban collection of 4 cents of the state’s 6-cent sales tax for the month of December.

“Now let him try to stop that truck,” Brown said of the governor.

Brown, a San Francisco Democrat, indicated that he still would prefer that the $700 million be spent on public education. But if Deukmejian and Republicans in the Legislature prevail on a tax rebate, Brown said his measure would be a more equitable way of returning the money to all state residents, not just those who pay income tax.

On Saturday, Deukmejian vowed not to be pressured into spending the surplus on education, even if that means the state will begin its new fiscal year July 1 without a budget. He has repeatedly insisted that the money be returned to taxpayers and that to give schools the $700 million, as Democrats and state Supt. of Public Instruction Bill Honig want, would put them over spending limits approved by voters in 1979.

The Senate has passed a $41.1-billion state budget, but Republicans in the Assembly repeatedly have blocked passage of the spending plan until the Legislature approves a full $700-million rebate. Democrats have attempted to come up with a compromise in recent days that could include a rebate of less than $700 million and more spending for schools.

Brown, speaking to a responsive group of about 200 Democrats in the Santa Ana home of Orange County Tax Collector-Treasurer Robert L. Citron, said: “If the governor will not directly help local schools, he will not directly help local government from that pot, then we can help them.”

Assemblyman Richard Katz (D-Sepulveda), reached at home Sunday afternoon, said that he had been working with Brown to develop an amendment to one of his bills that would not only suspend 4 cents of the 6-cent sales tax during December but also exempt schools, cities, counties and special districts from paying sales taxes on their purchases for a year.

He said the idea, which was proposed to the Democratic Assembly caucus last week, was received favorably.

“Frankly, the first preference is to give money to the schools,” Katz said. “If the governor is not willing to do that, we believe this is a fairer approach than the governor’s.”

He said he thought the proposal would be supported by Republicans in the Legislature.

“I think once this idea gets out, the popularity of it will be more than they can resist,” Katz said. “Everyone pays sales taxes. In the governor’s proposal, not everybody would have the opportunity to share in it.”

Brown also warned that he would attempt to have the proposed rebate, which he said would average $42, returned at $3.50 a month.

He asked: “Would you not as taxpayers prefer removing the sales tax during the month of December than, in fact, spending $3.50 a month on which, incidentally, you will have to pay taxes?”

Earlier estimates by Democrats and Honig have placed the rebate at about $50, while Deukmejian has said that it could range up to $95.

At the Democratic fund-raiser, Brown also took credit for Friday’s approval of a bill that would allow Orange County to build toll roads. (The state Senate has approved similar legislation by Sen. John Seymour (R-Anaheim). Differences between the two bills still must be resolved.)

Brown asserted that the bill’s author, Assemblyman Nolan Frizzelle (R-Huntington Beach), failed to properly present the bill, resulting in its initial defeat.

“That is a Democratic gift to you,” Brown told the Democrats, who are trying to rebuild the party in overwhelmingly Republican Orange County. “It’s kind of like the Marshall plan, since you clearly lost the war.”