Petition Seeks to Lower Threshold for Tax Hikes

A coalition of labor, liberal and government reform groups presented state officials with 1 million signatures Wednesday for a ballot measure that they say would resolve the political gridlock that seems to annually haunt California’s legislative budget process.

Opponents, however, say it would only result in higher taxes.

The state Constitution requires a two-thirds majority vote in both houses of the Legislature for taxes to be raised. The proposed Budget Accountability Act would lower the threshold to 55%.

Under the current makeup of the Capitol, that change would allow Democrats to increase taxes or institute new ones without a single Republican vote -- and make it impossible for GOP members to block a budget, as they did this summer, by insisting that no taxes be raised.

The likelihood that the initiative will be on the spring ballot means that California voters face another heated contest revolving around the state budget and taxes on the heels of the current recall campaign.

In addition to lowering the vote threshold for new taxes, the measure would withhold lawmakers’ pay when a budget was late, force them to work exclusively on adopting a budget once the June 15 constitutional deadline for doing so had passed, and require legislators seeking reelection to disclose how they had voted on state spending.

Business and conservative groups oppose the measure and have labeled it the “Blank Check Initiative.” They warn that it would promote out-of-control spending, saying the supermajority requirement is all that kept Democratic lawmakers this year from raising taxes by $8 billion.

If state elections officials certify the signatures -- only 600,000 voter signatures are required -- the measure will appear on the March 2 ballot. That election is expected to have a heavily Democratic turnout because it coincides with the presidential primary. The certification process could take several weeks

Although the idea of lowering the threshold for tax increases or new taxes has been floated before and has failed to gain traction, supporters say voter anger over the budget this year has reached a boiling point.

“This is going to pass, because there is a tremendous level of frustration by voters about the fact that the Legislature is not doing their job,” said Gale Kaufman, a Democratic political consultant working on the initiative campaign. “Voters have made it very clear that the status quo is not working.”

As supporters campaign, they are downplaying the fact that the measure would allow lawmakers to raise taxes more easily. Instead, they are pitching the initiative as a reform package that would hold legislators accountable for not getting a budget signed on time.

“This measure sounds good until you hear the elements within it,” said Al Lundeen, spokesman for Californians Against Higher Taxes, which was formed by business and other groups to fight the proposal. “The promoters want us to believe it is about punishing legislators for late budgets. What it simply is about is making it easier to raise taxes.”

Foes cite a Field Poll taken last month showing that 45% of voters opposed lowering the legislative vote requirement for new taxes and 40% backed it. Kaufman countered that support for the idea grows when it is presented with the other reforms in the ballot measure.

California is among a handful of states that require a two-thirds vote for raising taxes. That rule is often cited as a reason that lawmakers can’t reach consensus on a spending plan and miss their deadline year after year. The state has started a new fiscal year without a budget nine times in the last 13 years.

The inability to compromise has disrupted schools, local governments, road crews and others because it temporarily halts the flow of payments from the state.

Trudy Schafer, program director for the League of Women Voters, which supports the initiative, said the system forces the majority party to dangle enticements before minority lawmakers to get the votes to pass the budget. This year, Democrats added more than $260 million in spending to secure last-minute GOP votes so the compromise budget could pass.

Schafer said the league favors provisions in the initiative that would require establishment of a budget reserve and publication of how lawmakers voted on financial issues.

Democrats, as the majority party in both houses of the Legislature, stand to gain the most from the initiative. If it passes, they will be able to push through plans such as the half-cent sales tax hike they proposed this year that Republicans blocked.

Democrats had earlier announced that they would try to rescind the recent increase in the vehicle license fee -- or car tax -- and make up for the lost revenue with income and tobacco tax increases. They said the state Constitution would let them do so by simple majority vote because there would be no net increase in revenue collected. They are now backing away from that idea.

County officials have until Sept. 10 to count the signatures on the petitions and send them to the California secretary of state’s office, which then has about six weeks to verify the counts. If the state concludes that 600,000 valid signatures were submitted, the measure will appear on the ballot.