Measure T, The Fair Utility Tax is on the November ballot because the Taxpayers League Board believes the tax is regressive, taxing necessities, and hits low-income people hardest. It is three times higher than anywhere in the County of Sacramento, or surrounding cities, which, like Folsom, have no utility tax at all. The state Legislature rejected such a tax as inappropriate in the 1960s for the same reasons, and over the years have never seriously considered such a tax again. Even this year, with a $24+ billion shortfall, although playing with possible tax increases on automobile registrations, bullets, and sodas, no elected official suggested a state utility tax. Even a Sacramento Bee editorial on the tax stated: "It's an undesirable way to finance city operations."

Pointed out to the City was that their utility tax, three times greater than any similar tax in the County, created a $12.3 million tax windfall increase in three years as a result of rapidly increasing utility rates. We tried to convince the City to voluntarily lower the tax. They refused, and as a result, the League Board decided to put the tax on the ballot. The move was to reduce the tax from 7.5% to 2.5% over a four-year period, beginning in July 2003. Further, to help the City's neediest people, the Board included an extension to a rebate program for anyone with a yearly income less than $25,000, regardless of age.

With that decision, we began the campaign by obtaining over 15,000 City resident's signatures in a month and a half, qualified the Fair Utility Tax Act, and wrote the ballot arguments needed. This past week, the voters received the Sample Official Ballot and Voter Information Pamphlet successfully ending our first battle. But before the Pamphlet was even delivered, we won the second part of a three-part battle. The first was won when the Initiative qualified. The second was when the City Council voted to change the existing rebate program to match the rebate expansion contained in Measure T, and to commit a full $2.5 million to cover the cost. There can be no question that were it not for our qualifying the Fair Utility Tax Act, the City Council would NEVER have voted to add the cost to the budget. That action, a $2.5 million dollar annual tax cut, is one HECK of a return on our investment to qualify the initiative, even if we should lose.

And now we engage in the final battle. For the next 30 days, leading to November 5th, every member of the Sacramento City Council will argue against the Fair Utility Tax Act. They will make wild accusations of what drastic and Draconian cuts in vital services will result from the mere act of giving the people back some of their own money. They have already started with their transparent "workshops", telling people the sky is falling. But while crying poor, WITH ONLY ONE ABSTENTION, THE COUNCIL HYPOCRITICALLY VOTED TO PLACE A PAY RAISE FOR ITSELF AND THE MAYOR ON THE BALLOT, MEASURE S, WHICH WILL COST AT LEAST AN ADDITIONAL ONE MILLION DOLLARS A YEAR FROM THE GENERAL FUND.

This is the first time in our 41-year history that your Taxpayers League conceived and qualified its own tax reduction ballot measure. And our third battle is to see Measure T into law, which will provide real tax relief upon necessities of life to literally hundreds of thousands of our friends and neighbors. To do this, we must win the final battle!

Richard Mersereau