State Lawmakers Warn They Won’t Stand Still for Earthquake Tax Hike : Legislature: The local delegation is already voicing criticism of proposed increases to fix the freeways. Many say the federal government should shoulder much of the repair cost.

As state legislators scramble for money to repair earthquake-damaged freeways in Los Angeles, they face one near certainty: If it comes down to a tax hike, the Orange County delegation won’t provide much support.

With the state on the brink of insolvency even before the temblor struck, legislative leaders have proposed a variety of tax increases to raise revenue for quake repairs. But lawmakers from Orange County, though sympathetic to the plight of their neighbor to the north, heartily object.

“The earth hasn’t even stopped shaking and we’re talking about tax increases,” said Assemblyman Bill Morrow (R-Oceanside), whose district includes a swath of South County. “Hold the phone. Not so fast. We’ll never get out of this hole if we keep taxing ourselves deeper.”

While estimates of damage from the quake run as high as $30 billion, authorities remain unsure just how much it will cost to fix the freeways, including major bridge collapses along Interstate 5 and the Santa Monica Freeway, the world’s busiest.

“Californians are very resilient, but they’re beginning to feel we have four seasons--flood, drought, fire and earthquake, with every leap year a riot,” said Assemblyman Gil Ferguson (R-Newport Beach). “The economic costs are unbelievable, and the desire of government to right every wrong is really stretching the state’s pocketbook.”

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Whatever the ultimate price tag for the earthquake repairs, it will be huge--big enough that Democrats are floating a range of ways to raise new revenue, among them a temporary quarter-cent sales tax increase, a gasoline tax hike or a $2-billion bond measure.

Several Orange County lawmakers say they are willing to look at a bond measure, but none want any part of a tax increase.

“Every solution is tax,” complained Assemblyman Mickey Conroy (R-Orange). “I think new taxes should be the last resort, not the first thing out of our mouths. We have taxed ourselves almost out of existence as it is.”

Assemblyman Ross Johnson (R-Fullerton) suggested the idea of a “temporary” sales tax hike is dubious given recent history. After the Loma Prieta earthquake that struck the San Francisco Bay Area in 1989, the Legislature imposed a half-cent tax for repairs. Today, much of the work still isn’t done--and the tax has been made permanent.

“Look what happened before,” Johnson said. “You know that saying: Fool me once, shame on you, fool me twice, shame on me. I’d be very hesitant there.”

Instead, the state should push hard on the federal government to bear the cost of fixing the freeways, Johnson said, noting that Congress financed relief efforts after Hurricane Andrew in Florida and last year’s Midwest floods.

“It appears the federal government stepped to the plate and took care of those problems,” Johnson said. “Given that, I would certainly feel it’s entirely too premature to look at increasing taxes in California.”

Meanwhile, many state lawmakers from Orange County see opportunity amid the misery of the quake to push some of the conservative ideas they have long espoused. They want to cut regulations and see the state tighten its budgetary belt to pay for repair work.

“We have to start all over with the budget,” said Sen. John R. Lewis (R-Orange). “We have to re-examine everything, look for savings and efficiencies across the board.”

Others suggest that the state should suspend environmental permit requirements that could slow freeway reconstruction. “You shouldn’t have to get an environmental impact report to rebuild a freeway that was already there,” reasoned Assemblyman Curt Pringle (R-Garden Grove). “We’ve got to get rid of this legal and environmental morass that will hold this work up.”

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Sen. Rob Hurtt (R-Garden Grove) has already introduced legislation to reduce the “prevailing wage” for quake-related public work projects. That legislation was defeated in committee the week before the earthquake. Hurtt estimated that the drop in wages could mean a savings of about 20% on most projects.

“The Democrats are sitting there saying, ‘Raise taxes,’ ” Hurtt groused. “But this is the perfect opportunity to make some fundamental changes and stop adding to our already bloated state government.”

Hurtt also suggests the state adopt across-the-board cuts to pay for repair work, reasoning that “if everyone takes a hit, that will alleviate the chances of special interests pounding away on us” with complaints of unfair treatment.

In the past, the Democrat-dominated Legislature has scoffed at such proposals, but Orange County lawmakers say the earthquake and looming budget crisis could combine to change attitudes.

“I think opportunities are created when a crisis is there,” Pringle said. “This is a crisis. It may spur many of those who have opposed these ideas to consider them.”