Speedy Action Urged on Gas Tax Hike

A top official in the Deukmejian Administration predicted Thursday that lawmakers must reach agreement on a gasoline tax increase by July if they are to have any hope of getting it approved by voters in a November special election.

Michael Frost, Gov. George Deukmejian’s chief of staff, said that as a practical matter supporters of any gas tax increase would need at least three months to raise money and mount a campaign for voter approval of the tax.

Frost said in an interview with reporters from three California newspapers that if the Legislature doesn’t approve the November special election by July, when it recesses, that the issue will be effectively dead. “This isn’t any artificial deadline. I just think from a practical standpoint it can’t be done after that.”

On Tuesday, Deukmejian called for a special election in November for voters to consider a comprehensive financing plan that would raise an additional $20 billion for transportation during the next decade.

While Deukmejian has the authority to call the election, the Legislature must approve the measures that actually appear on the ballot.

The governor refused to endorse a specific proposal himself although he said there seemed to be a consensus among business, labor and legislative leaders with whom he has met that a gas tax hike of 9 cents a gallon would be needed. He suggested an initial 5-cent hike to be followed by 1-cent increases in each of the next four years.

Lawmakers in both houses have proposed similar increases without voter approval.

Californians now pay 9 cents a gallon in state taxes, 9 cents in federal taxes and a 6% state sales tax on gasoline.