STATE : Deukmejian Signs Tax Hike, Earthquake Relief Package
Gov. George Deukmejian today signed a 12-bill earthquake relief package, including a temporary sales tax hike to raise $800 million.
“We’re going to do whatever is necessary to restore the lives and the homes of the people who were victims of this quake,” Deukmejian said as he began signing the bills.
As Mayor Art Agnos and a dozen legislators looked on, Deukmejian signed the relief package at 11:45 a.m. after riding a ferry boat across the San Francisco Bay from Oakland.
“I congratulate the Legislature on its quick action on the earthquake relief package to assist the earthquake victims in rebuilding their lives, businesses and communities,” Deukmejian said.
State and federal aid, the Republican governor said, “should provide the necessary resources in order to restore some semblance of normalcy in the Bay area.”
Some legislators of both parties criticized the plan, which raises the sales tax to as much as 7 cents on the dollar, depending on local rates. Deukmejian also plans to tap the state reserve for $200 million.
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