Davis Releases Tax Records Showing Income Drop

Gov. Gray Davis and his wife, Sharon, reported that their income dropped sharply last year as Mrs. Davis quit her job to campaign full-time with her husband in his drive to become governor.

The couple’s total income fell from $143,492 in 1997 to $109,103 last year, according to tax forms released Tuesday by the governor’s office.

The income included the $78,295 Davis earned as lieutenant governor.

In addition, his wife made $5,417 before leaving the Ralphs / Food 4 Less Foundation and $21,000 in consulting fees afterward. She reported $2,706 from the sale of stock in U.S. Airways, where she previously worked.

The Davises reported $2,007 in capital gains from the redemption of a state bond, $338 in dividend income and $730 in interest.

The couple paid a total of $17,623 in federal taxes and $5,075 in state taxes. In both cases, they owed money at the end of the year--$1,815 to the U.S. Internal Revenue Service and $950 to the California Franchise Tax Board.

While their income fell by $34,389 last year, it will bounce back and then some in 1999. By ascending to governor, Davis’ pay will double to $156,750 this year. The first lady is not employed.