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EARTHQUAKE / THE LONG ROAD BACK : Ideas but Not Agreement Abound on Raising State Quake Repair Funds

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TIMES STAFF WRITERS

State legislators on Wednesday considered several options for raising money to repair earthquake-damaged Los Angeles freeways, but Gov. Pete Wilson said talk of temporary tax increases or billion-dollar bond measures was premature.

A top aide to the governor said it was pointless to consider raising taxes until the total earthquake damage repair cost is known and the state finds out how much the federal government will pay.

“There is still no hard estimate, nor will there be for a while,” said Leslie Goodman, Wilson’s communications director.

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Although Wilson told President Clinton on Wednesday in Los Angeles that one estimate put the total earthquake damage at $15 billion to $30 billion, Goodman said that figure was generated by a computer and included public and private property, some of which might be insured.

In Sacramento, Legislative Analyst Elizabeth Hill said that “clearly, we are looking at very, very big costs.” She said Congress provided $1 billion in special funding to help pay for highways damaged in the 1989 Loma Prieta earthquake in the San Francisco Bay Area.

A temporary sales tax increase, a $2-billion bond issue on the June ballot and a gasoline tax hike were among the options being discussed Wednesday at the Capitol to pay for repair and reconstruction projects.

But there was no agreement on which method might ultimately be approved.

Assembly Speaker Willie Brown (D-San Francisco) indicated that he favored a temporary quarter-cent sales tax increase to pick up rebuilding costs that are not covered by the federal government.

The Legislature quickly imposed such a tax increase after the Loma Prieta earthquake. The tax was in effect for 13 months and raised $700 million.

Former Gov. George Deukmejian signed the sales tax increase into law three weeks after the magnitude 7.1 earthquake rocked areas of Northern California.

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The Assembly and Senate swiftly enacted a package of a dozen earthquake-related bills in a three-day special session called by the governor after the October 17, 1989, quake.

In addition to the sales tax increase, other bills were designed to speed up the repair of damaged highways, public buildings and parks, and to match federal aid granted to businesses and individuals whose property was damaged by the temblor.

The state Department of Finance estimates that a new quarter-cent sales tax increase could raise as much as $700 million over 12 months.

But Sen. Bill Lockyer (D-Hayward), who is expected to replace David A. Roberti (D-Van Nuys) as Senate president pro tem before the end of the month, said he preferred issuing a $2-billion bond in June to raising taxes.

“My personal preference is a bond issue,” Lockyer said, “not a tax increase of great magnitude in this recessionary climate.”

Roberti proposed a $500-million housing and infrastructure retrofit bond issue on the June primary election ballot.

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But Brown said the June bond issue route could delay repairs for six months.

“I want to get moving on this right away,” the Speaker said, urging the governor to expand the current special legislative session to deal with earthquake-related matters.

Sen. Quentin L. Kopp (I-San Francisco), chairman of the Senate Transportation Committee, said he favors raising gasoline taxes by 2 to 4 cents a gallon to rebuild freeways because motorists would benefit most from the tax.

“Those who use the freeways ought to pay the rebuilding fee,” Kopp said in an interview. He said a sales tax increase might be appropriate to help pay for other earthquake damage repairs, however.

Sen. Tom Hayden (D-Santa Monica) said he is prepared to introduce a bill increasing the sales tax by a quarter-cent to finance the repair of general earthquake damage.

Wilson, while not ruling out any of the proposed financing schemes, said he viewed them all as last resorts.

“These are folks who are eager to spend other people’s money,” Wilson said.

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