Deukmejian’s Quake Tax Reflects Political Odyssey : NEWS ANALYSIS

When Gov. George Deukmejian, after seeing the Bay Area’s earthquake devastation for himself, admonished civil servants over national television not to worry if they were spending more state money than the law allowed for victims’ relief, ears perked up in the Capitol.

This did not sound like the fiscal conservative people had come to know, the tightwad governor who holds the all-time record for budget vetoes.

When Deukmejian further indicated his willingness to accept a modest tax increase to pay for the relief, then actually proposed one, people wondered: Whatever happened to the Iron Duke who just last year swore to veto any tax increase--or anything even “perceived to be a tax increase?”

Was anything going on of significance here? Was something happening inside Deukmejian that might signal a change of direction as he approached his final year as governor?

One thing was certain: George Deukmejian had been acting differently--especially since the Oct. 17 earthquake, but actually ever since his announcement last January that he would not run for reelection in 1990.

A governor long accused of stubbornness and being unwilling to work with legislators, Deukmejian led delicate negotiations this year that resulted in major legislative agreements on transportation planning, workers’ compensation and garbage disposal. A career opponent of gun control, Deukmejian was the person chiefly responsible last spring for pushing through legislation banning semiautomatic assault rifles.

The governor who, after the earthquake, was outspoken, decisive and animated--publicly questioning Caltrans’ expertise, aggressively leading legislators in developing an earthquake relief package and repeatedly making himself available for news interviews--seemed a far cry from the cautious politician who, over the years, had attained the image of a closed-mouthed, very deliberative, essentially dull recluse.

A Rare Appearance

Media stunts never had been a staple of Deukmejian’s politics, yet last Monday he boarded a colorful ferryboat in Oakland and--accompanied by TV crews and reporters--cruised across San Francisco Bay to sign his first general tax increase since becoming governor. This was an odyssey, clearly, that began in spirit long before that morning in Oakland.

When and where it actually began is open to conjecture. Some point to the Armenian earthquake that killed an estimated 25,000 of Deukmejian’s ethnic brethren last December. But looking at the broader picture, most speculate it evolved as the lame-duck governor began worrying about his legacy, becoming particularly sensitive to criticism that he lacked vision, was uncompromising and had caused the state’s infrastructure to deteriorate by being overly frugal.

Deukmejian and his advisers insist that he really has not changed; only the circumstances have: Not being a candidate for reelection, there now is less animosity and more trust between the Republican governor and the Democratic-controlled Legislature. This is the plus side of being a lame duck. It also leaves him free to act without weighing political considerations.

“The pressures on him, if he had been running for reelection, are just not there,” noted attorney Steven A. Merksamer, a former chief-of-staff and longtime Deukmejian adviser. “It’s easier for him to act on his first instincts, rather than deliberating a long time. It’s easier for him to say the first thing that comes to his head and be a little more spontaneous with the news media. He’s more relaxed about what he does and says because it can’t be used against him in an election campaign. And legislative leaders know he has no political motivation.”

Beyond that, some close to him say, Deukmejian’s strong response to the earthquake mainly reflected his belief that the principal responsibility of government is to provide for public safety. “Not only protection from criminals, but to make sure that roads and bridges are safe,” Merksamer said. “That’s why I understand and appreciate his rage and frustration after personally seeing the I-880 disaster.

“The paramount reason he ran for governor in the first place was his commitment to public safety. It has been the hallmark of his whole life--much more so than taxes or other issues. It’s something he has told me he was brought up with.”

Deukmejian was brought up by parents for whom public safety was more than just a catch phrase: They came to America fleeing the wholesale massacre of Armenians by Ottoman Turks. Deukmejian always has felt a strong bond to his Armenian heritage. And after the earthquake hit Soviet Armenia, he contributed $100,000 from his political kitty to the relief effort.

“George Deukmejian had his eyes opened by the Armenian earthquake,” said a Republican legislator who has watched him up close for many years. The lawmaker did not want to be identified, but one state official echoed that view on the record.

“During the past year, Deukmejian has signed almost every good earthquake safety bill,” said Fred M. Turner, structural engineer for the State Seismic Safety Commission. “This has been a big turnaround. I think the earthquake in Armenia changed his mind.”

Interestingly, five days before the Northern California earthquake, Deukmejian gave his chief-of-staff, Michael R. Frost, a handwritten note outlining some things to check on back at the office. The governor, at the time, was in a hotel room in Milan, Italy, in the middle of a European trade trip.

The governor’s note read: “I would like to give high priority to earthquake preparedness funding in next year’s budget. Please notify (the) finance (department) that we may need to include a substantial increase in funding next year.”

Skip ahead after that to 1:30 a.m., local time, on Oct. 18 in Frankfurt, West Germany. The telephone rang in Frost’s hotel room. “Are you awake?” asked the caller from Sacramento.

Frost woke up fast as he was told of the severe earthquake that had struck Northern California less than half an hour earlier. He then phoned Deukmejian in the next room.

“His first reaction,” recalled Frost, “was sort of the same as mine: We have earthquakes all the time in California. He tried to find out whether it was a serious one. I told him this wasn’t just another California earthquake. They had canceled the World Series game, the Bay Bridge was damaged and closed, power’s out, a lot of communications are out . . .

“He said, ‘Well, we have to get back to California immediately.’ ”

Deukmejian was planning to return home a day later anyway. But the symbolism of his cutting short the trip--if only for one day--and rushing back to California to personally take charge of the state’s rescue and relief efforts was important.

“A disaster puts a leader in the spotlight and it becomes a test,” Frost observed. “It’s his greatest opportunity for success or failure. If the governor had done the opposite of what he did--stayed in Europe, then sort have come back to California and said, ‘I can’t take any action until I get a lot more facts’--I would suspect he would be under a great deal of criticism right now. He has always planned for what he would do in a crisis. He’s always known that he would grab the reins of leadership and act boldly.”

Acting boldly never has been a Deukmejian trademark. Deliberation and caution are his style. “He could be holding a royal flush in his hand and not believe it. And if he did, he’d raise the ante a nickel,” commented Sen. William Campbell (R-Hacienda Heights), a longtime ally.

Operating on very little sleep, Deukmejian and Frost spent the first few days after the earthquake in a flurry of telephone calls and meetings--with White House aides, President Bush, state disaster officials, lawmakers and local leaders--while also touring wreckage.

Interviewed on NBC’s “Today” show, Deukmejian lectured civil servants: “If you make a mistake, if you err, if it turns out that you spent a little more state money than you think, upon reflection, you should have--let’s not worry about that. Let’s render the aid and the service just as fast as possible and let’s not get tied up in bureaucratic red tape.”

A different Deukmejian? Not really, according to Sal Russo, a veteran political consultant and former Deukmejian adviser: “He gets a bum rap. He’s compassionate--not just a guy in some green eye shade looking at the budget. He’s not a fanatic on taxes, not a Howard Jarvis type. Of course, I had a hand in creating the Iron Duke reputation, so I don’t want to be too harsh on the press for picking up on it.”

Meeting privately with legislative leaders in the Capitol, Deukmejian insisted on a quarter-cent sales tax hike. Senate President Pro Tem David A. Roberti (D-Los Angeles) suggested a three-eighths-cent increase to appease fellow Democrats who regarded a quarter-cent as too low. Senate Minority Leader Ken Maddy (R-Fresno) even thought a half-cent would be better.

But Deukmejian “really set the agenda,” Maddy recalled, and warned that Sacramento would be criticized by the voters if it raised more money than needed.

The governor’s role, according to Assembly Speaker Willie Brown (D-San Francisco), was “key” and “quite different” from negotiation efforts in previous years. “In the last year, he has been involved in policy matters quite aggressively. In the quake thing, he was even more aggressive--more aggressive than any time in my memory,” Brown said.

“I don’t think we would have gotten that tax (increase) without him. Not one nickel without him. (Assembly) Republicans would have taken the safe harbor--voted for the relief without the revenue to pay for it. He did a good job. I have nothing but praise.”