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Wilson Gives Up on Early Tax Plan Talks : Budget: Governor learns Legislature works at its own speed. Lawmakers offer no stand on proposal for $10 billion in cuts, levies.

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TIMES STAFF WRITER

Gov. Pete Wilson on Monday learned what all governors find out sooner or later: The Legislature works at its own speed, so it does not do any good to set early deadlines, and lawmakers rarely speak with one voice, particularly when the subject is money.

The first lesson was acknowledged Monday afternoon when Wilson said he has given up on persuading the Legislature to act by April 1 on several plans to increase taxes and a proposal to reduce welfare benefits. The tax increase measures, which the Republican governor said he wanted in order to get an early start on solving the budget deficit problem, would raise levies on candy, snack foods, newspapers and magazines.

“We are not going to make the April 1 deadline,” Wilson told reporters after meeting privately in his office with Republican and Democratic party leaders from the Legislature.

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As for lawmakers speaking with one voice, the reality hit home when a panel of 30 legislators, who had been studying the problem for a month, released a master list of more than $10 billion in possible budget cuts and tax increases, but made no proposals or recommendations. The report came with this disclaimer: “The options presented are not necessarily endorsed by any or all of the working group members.”

Thomas W. Hayes, state finance director, who coordinated the panel’s effort, said: “The report contains options, not recommendations, and the groups did not reach consensus on many of the difficult decisions facing the state.”

Wilson reacted by asking lawmakers to return with something more concrete, focusing on legislation that would realign traditional roles of state and local governments.

Although there is no consensus, the governor and lawmakers appear to be moving in the direction of turning back to counties the responsibility for health care programs for the indigent and support of trial courts.

Legislative leaders said it could be at least another month before a concrete plan reaches the floor of either house.

As for the $10 billion of tax increase and budget cut proposals outlined in the report, Wilson said, “I shudder.”

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The upshot is that even though the Legislature has had Wilson’s budget proposal before it for three months, it seems only to be inching toward a solution to a budget problem of unprecedented magnitude.

Senate President Pro Tem David A. Roberti (D-Los Angeles), who attended the meeting with Wilson, said he was putting one tax increase proposal contained in the report on the legislative fast track. The measure, still being drafted, could boost property taxes on publicly held corporations by $1 billion a year in 1992. The legislation, to be carried by state Sen. Quentin L. Kopp (I-San Francisco), would allow corporate holdings to be reassessed whenever 51% of the shares of a corporation’s stock changes hands, legislative sources said.

Roberti said he was moving forward with the measure even though he lacks the support of the governor or Democratic leaders in the Assembly.

The measure would raise property taxes, which go to cities, counties, schools and special local governmental districts and would not directly help the state treasury. Roberti said all governments share in the budget problem. “If we find them revenue it is as good as finding us revenue,” Roberti told reporters.

Roberti seemed somewhat annoyed that he was still getting mixed signals from Wilson over how large a tax increase the governor is willing to accept. Asked about indications from Wilson that he would go along with tax increases larger than the $2 billion a year the governor proposed, Roberti said, “He always seems to imply it but then he never says what (he would accept).”

Roberti backed away from other potential budget measures outlined in the report, such as a suggestion that aid to the aged, blind and disabled be reduced by $638 million a year and that mortgage interest deductions be reduced.

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Roberti said the report was valuable because “you have to put the programs on the table for the purpose of getting the debate started.”

Earlier in the day, Wilson said that because government was so short of cash, he hoped to enlist volunteer efforts in public schools from active and retired business executives. Wilson said the business executives could serve as teachers and mentors.

“Many of you can help,” Wilson told 200 business executives during a speech to the California Manufacturers Assn.

Wilson also called for a new statewide testing program to assess student and teacher performance and said experimental programs could be established in some districts that would allow students to attend schools of their choice.

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