GOP Calls for Gas Tax Hike to Aid Roads

Calling for aggressive action to improve the state’s overcrowded and deteriorating highways, Republican legislative leaders Monday proposed placing an 8-cents-a-gallon gasoline tax increase on the November ballot--despite Gov. George Deukmejian’s longstanding opposition to any tax hike.

But the Republican leaders said they were hopeful that Deukmejian would not stand in the way of this particular proposal, a state constitutional amendment to establish a special “user fee” to raise more than $1 billion a year for local and state highway and transit projects.

The measure would place the revenues raised by the added tax outside of the Gann limitation, which restricts the rate of growth of the state budget. About half the increase--4.1 cents--would go to state projects; the rest--3.9 cents--would go to local governments. A portion would be used to improve rapid transit systems.

Presently, the state collects a 9-cent fuel tax on a gallon of gas and a 6% sales tax, on top of a 9-cent federal tax and varying local taxes.

Assembly Republican Leader Pat Nolan (R-Glendale) said the Legislature would have to move this week to place the measure on the November ballot and help restore what was “once the greatest highway system in the world.”

Senate Republican Leader Ken Maddy (R-Fresno) said he had discussed the highway issue with the governor last month and was assured that Deukmejian “will allow the right proposal to go on the ballot, to let the people speak.”

“This is a very Republican idea,” said Assemblyman William P. Duplissea (R-San Carlos), vice chairman of the Assembly Transportation Committee. “We’re taking a very . . . aggressive approach to a problem that is before us.”

The constitutional amendment would require two-thirds approval in both the state Assembly and Senate and would go to the voters without the governor’s signature. “The governor won’t have to have his fingerprints on it,” said Sen. John Garamendi (D-Walnut Creek).

However, because there is so little time before the November election, Deukmejian would have to approve legislation placing it on the ballot this year, said Anthony L. Miller, chief deputy secretary of state.

Deukmejian, attending the National Governors’ Assn. meeting in Cincinnati, has not yet seen the proposed constitutional amendment for highways, said Deukmejian’s press secretary, Kevin Brett.

“The governor has said that he is amenable to considering a possible agreement that would entail placing a measure on the ballot,” Brett said. “The governor remains opposed to a gasoline tax increase. . . .”

The governor’s top aides are scheduled to meet with the Republican legislative leaders today and will discuss the highway proposal, Brett said.

Deukmejian’s own plan for a $1-billion bond issue to raise money for highway improvements was defeated by voters in June by the narrowest of margins--just 541 votes out of more than 5 million cast.

“Some reality had to set in after the defeat of the governor’s bond proposal,” Maddy said, later adding: “I think (Deukmejian) recognizes as we do that we have to do something.”

Uncertain Outcome

Whether the Republican measure can win the two-thirds vote it needs in both the Assembly and Senate is still uncertain.

But several Democratic leaders said they are encouraged by the Republican proposal and are hopeful that the impasse on highway funding will be broken.

“We are open to any and all suggestions,” said Senate President Pro Tem David A. Roberti (D-Los Angeles).

Assembly Speaker Willie Brown (D-San Francisco) would not comment until he had discussed the tax hike proposal with his fellow Democrats, his press aide said.

“We’re making progress,” said Garamendi, who chairs the Senate Revenue and Taxation Committee and who has a highway revenue measure of his own. The Republican proposal represents “a major step forward,” he said. “Their willingness to go as high as 8 cents is a major step.”

Senate Transportation Committee Chairman Quentin L. Kopp (I-San Francisco) said he is not happy with “tinkering” with the Gann limit to fund highways, but did not rule out supporting at least a part of the Republican proposal.

Kopp has backed a proposal that would increase gas taxes by 6 cents per gallon and increase weight fees on large trucks by 40% to raise about $1 billion a year in revenue for highways. “I think trucks contribute to a larger extent than passenger vehicles to the wear and tear of roads and highways,” he said.

The Republican leaders, who unveiled their plan at a Capitol press conference, stressed the urgent need to do something about California’s traffic problems and that they have the wide support of the business community for a solution.

“It takes $1.5 billion a year just to keep us where we are,” said Assemblyman Gil Ferguson (R-Newport Beach). The 8-cents-a-gallon increase would simply allow the state to maintain current conditions, he said.

“The important thing today is a unanimity of opinion among Republicans,” said Sen. William Campbell (R-Hacienda Heights). Campbell proposed placing a non-binding, advisory measure on the ballot in November, leaving it to the Legislature to pass any actual tax increase. But that approach has been rejected by Deukmejian, leaving Campbell with no choice but to embrace the new Republican proposal. “I think it is the only plan that will fly.”