Davis Attacks GOP Tax Position

In a thinly veiled attack on Republican lawmakers, Gov. Gray Davis stood before an auditorium filled with schoolchildren here Thursday and told them about what he characterized as a dire threat to their education.

The talk appeared to go over their heads, but the Democratic governor explained to students how demands for additional tax cuts are threatening state support for education. Davis was referring to Republican calls for continuing a quarter-cent reduction of the state sales tax.

The issue has emerged as a lightning rod in state budget negotiations, which have faltered and are expected to cause the governor to miss Sunday’s deadline for signing California’s 2001-02 budget by the start of the new fiscal year.

“Even though I have over $4 billion in tax relief in my proposed budget, some people want me to cut education and give more tax relief,” Davis told students at Herman Leimbach Elementary School. “I’m going to fight tooth and nail to protect every dollar I have in my budget for education because you, boys and girls in front of me, you are my highest priority.”

As Davis weighed in on the state’s next budget or lack of one, arrangements were made Thursday for members of his senior staff to meet with Republican leaders today to begin discussing thousands of vacant state government positions.

Senate GOP leader Jim Brulte of Rancho Cucamonga contends that as much as $400 million in salaries budgeted for empty jobs could be used to cover an extension of the sales tax cut that is being sought by his members. The quarter-cent reduction, which kicked in for the first time this year under provisions of a 1991 law, is expected to end next year, barring intervention by the Legislature or Davis.

“If we had a balanced budget this year, this tax increase would not be taking effect,” Brulte said.

Assembly GOP leader Dave Cox of Fair Oaks, meanwhile, circulated copies of a news release issued by Davis’ office last fall when the governor announced the cut.

“The governor can’t claim that this will be a benefit to society and taxpayers of the state of California in 2000 and then in 2001 claim that the increase has no effect and the Republicans have invented an issue,” he said.

Negotiations are expected to continue throughout the weekend. If a deal is struck, lawmakers could be called back to the Capitol to approve the budget, which failed to garner sufficient support earlier this week among Republicans in either the Assembly or Senate.