Income Tax Conformity Bills Signed by Governor

Gov. George Deukmejian on Friday signed, as expected, two major bills overhauling the state income tax system to align it more closely with the revised federal law and reduce taxes for an estimated 70% of the state’s taxpayers.

The governor also signed into law legislation to:

- Allow community college students to attend the school of their choice, regardless of where they live. The measure was nicknamed the “free flow” bill.

- Restore $87 million in aid to urban school districts that Deukmejian cut from this year’s budget, including $31 million earmarked for the Los Angeles Unified School District.

- Extend the $50-per-semester fee at community colleges, scheduled to expire in January, for another four years.

The tax conformity law was the product of negotiations between Deukmejian, Assembly Speaker Willie Brown (D-San Francisco) and Senate President Pro Tem David A. Roberti (D-Los Angeles), during the final hours of the 1987 session that ended Sept. 11.

‘Good for the Taxpayers’

Afterward, the governor left little doubt that he would sign the two pieces of legislation, saying that they would be “very good for the taxpayers,” making it simpler and easier for them to compute their taxes, and providing more equity.

The top rate for individual taxpayers drops from 11% to 9.3% and the number of brackets shrinks from nine to six.

The tax overhaul legislation was carried by Sen. John Garamendi (D-Walnut Grove), chairman of the Senate Revenue and Taxation Committee, and Assemblyman Johan Klehs (D-San Leandro), chairman of the Assembly Revenue and Taxation Committee. The community college fee measure was carried by Asseemblyman Pat Johnston (D-Stockton).

Meanwhile, the governor signed two “free flow” bills for community college students--one by Sen. Robert G. Beverly (R-Manhattan Beach) and the other by Assemblyman Tom Hayden (D-Santa Monica). The Beverly bill also contained the $87 million in urban school aid.

Choice for Students

Both bills are designed to let students attend community colleges located outside of the students’ home districts.

“Community college students are adults and there is no reason why they should not be able to select which campus they want to attend . . .” the governor said. “These ‘free flow’ bills will also serve as an additional incentive to community college districts to offer the best educational courses possible.”

Opponents of “free flow” said it was a prelude to disaster for community colleges plagued with declining enrollments.

The $87 million in urban school aid was part of a compromise reached between Deukmejian and Democratic legislative leaders on another bill to give Californians a $1.1-billion income tax rebate that was signed into law earlier this week.