Gann Had Open Mind on Tax Plan, Governor Says

In the weeks before his death, anti-tax crusader Paul Gann indicated that he had an open mind about a ballot proposal that would make substantial changes in the state spending limit that bears his name, Gov. George Deukmejian said Thursday.

Deukmejian said Gann had told him and other state officials in private discussions that he understood that the passage of Proposition 98, which guarantees schools at least 40% of general purpose tax revenues, had worsened the effect of the spending limit on other areas of government.

Deukmejian said the dying man appeared to be “very appreciative” that officials were seeking voter approval of a proposal to modify the limit rather than attempting to abolish it outright.

“He seemed to be very supportive of that but he did not make any commitment with respect to formal support,” the governor said. The proposal would tie the spending limit to a population factor that would allow higher rates of budget growth than does the present limit.

Gann died last month from pneumonia complicated by his infection with the AIDS virus. He had contracted the virus from a blood transfusion.

Even in death, Gann is a key figure in the campaign by state officials to win voter approval of proposed modifications in the spending limit that would also trigger a 9-cent per gallon increase in the state gasoline tax. Gann’s success in winning passage of the spending limit in 1979 and his co-authorship of the tax-cutting Proposition 13 gave him high credibility with voters on tax issues.

Had he gone on record in opposition to the June ballot measure before his death, any opponents of the proposal would have had a potent weapon to use in a campaign against it. As it was, Gann at first expressed opposition to the spending limit modifications, but after discussions with Deukmejian and other state officials indicated that he was willing to talk more before he made up his mind.

“It is true that Paul went to his grave without taking a position,” said Ted Costa, Gann’s assistant for many years.

But Costa, who attended Gann’s final meeting with the governor’s office, recalled that the anti-tax crusader told state officials that he had problems with the proposed gas tax increase. Costa said he offered to talk more about supporting it only if it was lowered to 5 cents per gallon and more guarantees were made that the revenue would be used exclusively for roads.

He said Gann died before any more talks were held.