EXECUTIVE DIRECTOR'S MESSAGE

Farewell to Jack Kemp

Jack Kemp, the former Buffalo Bills quarterback who became a Congressman, died on May 2. Kemp was the Secretary of Housing and Urban Development under President George H. W. Bush, and the Republican vice -presidential nominee in 1996. I had the pleasure of meeting him, and watching a football game with him on one of his trips to California.

Possibly his greatest tribute to all of us was his position that tax cuts promote economic growth. This became Republican Party policy - that continues today. His theory was that the nation suffers under a "tax code that rewards consumption, leisure, debt and borrowing, and punishes savings, investment, work and production".

It's too bad that many of our current leaders don't seem to understand those principles.

It has been very interesting the last few months, reading and hearing about the reasons for the "worst economic downturn since the Great Depression". Some of what we hear makes sense as to its relationship to the causes, some other things don't fit at all. However, one fact that emerges from all of this is that a lack of "Moral Stewardship" is greatly responsible for the situation we are in today. How could so many people who were already doing well financially, just totally bend the rules to get even more. And this applies to some politicians as well as the business leaders we read about regularly. Is this a representation of who and what our country has become? I like to think not.

I'm just old enough that I remember adults that lived during the depression. They would turn over in their graves if they saw the young people of today wearing jeans with holes in them as a 'status symbol' of being cool. Back them, some people were lucky to have even one pair of pants without holes in them. Unemployment may be going up, but it's still under ten % in most areas. During the 1930's, unemployment reached 25% in some parts of the country. Hopefully our leaders of today learned from that experience, and will avoid some of the mistakes made during that terrible period of US history.

Cheers

To the Sacramento Union, for giving us two-and-a-half years of responsible reporting, and a good sports section too. Thank you Jim Dutra and staff; you will be missed, but not forgotten.

To Assemblyman Roger Niello, for receiving the Summa Cum Laude award from the California Small Business Association for the year 2008. This is a very high honor for a member of the legislature. Assemblyman Niello is not only a long time supporter of small businesses, but also a business owner himself. Congratulations!

Jeers

To Governmental follow through. Remember when the Governor first came in to office; he said he would get rid of the wasteful political boards that employ out-of-work former politico's. Many with six-figure salaries. Well, guess what - it hasn't happened. If fact the most recent Board that did not get eliminated - The "Waste Management Board". How appropriate!

Have they thought about getting qualified volunteers for some of these Boards, and pay $100-200 per meeting? Surely there are some ex-legislators out there that would be willing to do this during retirement.

Speaking of waste, the Bee recently pointed out that the State wasted over half a million $ by leasing office space that went unused for more than four years. This was uncovered by the State Auditor, who, in the minds of many, would be better equipped to run the State than our current legislators.

This N' That

Have you heard about the County Budget Deficit? Well, guess what, it's now up to $187,000,000 - and could still be growing. This is a result of some uncontrolled liberal spending policies over a period of several years. And what appeared to be a lack of oversight and decision-making in some key areas. Examples: the County Library system - with its multitude of problems, the Metro Fire Department - and its multitude of problems, the County non-emergency medical subsidy for undocumented immigrants - when many legal residents get no health care benefits, and (last but not least) the County workforce expenses. Over a seven year period there has been a small decrease in budgeted staff positions, but an almost 50% increase in budgeted staff costs (that amounts to almost a half billion dollars!).

Is anybody starting to get alarmed over this? If not, you should be.

Annual Dinner 2009

This years Annual Dinner, according to a long time Board member, was one of the best ever. This was very encouraging to hear, in that the League has suffered through the recent down economy just like everyone else. And we certainly appreciated the message delivered by Ward Connerly; focusing on family values, integrity, and equal opportunity for all Americans. Mr Connerly is the president of the American Civil rights Institute (ACRI).

We also had short presentations (with a Q & A session that followed) from Assemblyman Roger Niello, who supports Prop 1A, and from Howard Jarvis Taxpayers Association president Jon Coupal, who opposes Prop 1A. Both men agree over 95% of the time on most issues - but not this one.

The membership of the Taxpayers' League, and its Board, is what allows the group to function. Each of you deserves a big 'Thank You' for your support, with special thanks to the following:

American Civil Rights Institute

Howard Jarvis Taxpayers Association

Joe Mohamed Enterprises

Ken Payne

Pacific Gas & Electric

Sacramento Republican Assembly

AT&T

Howard Jarvis Taxpayers Association

If you missed this years dinner, you missed a really inspiring event. Once again, thank you for your support, and hope to see you in 2110.

Bob Blymyer

Ballot Measure Scare Tactics

BY JON COUPAL

To cover their posteriors after running up massive budget deficits, the Sacramento politicians have placed Propositions 1A through 1F on the May 19th special Election Ballot. Propositions 1B through 1F are of little consequence to taxpayers and are little more than rearranging the deck chairs on the Titanic. Proposition 1B is the $8 billion extortion payment to the teachers union, most others simply shift money from one state account to another, while Prop. 1C mortgages future state lottery revenues.

The elephant in the room that the politicians do not want to discuss is Prop. 1A, the $16 billion tax increase. The governor and Legislature want this additional revenue so badly they are deceptively marketing it as budget reform and a cap on state spending.

So desperate are lawmakers to get their hands on more taxpayer cash that when they wrote the ballot title and summary they deliberately avoided any mention of additional taxes. And because Proposition 1A originated in the Legislature, legislative leaders were able to manipulate the process by assigning to tax-and-spend liberals the duty of writing the opposition argument which, unsurprisingly, also fails to mention the tax increases.

Although the budget reform contained in Proposition 1A is in name only – the spending cap is increased every time taxes are increased – the tax increase is real, and Californians are beginning to catch on. Recent surveys show that when voters are told of the tax increase contained in 1A, the measure goes down in flames.

To counter the momentum against Prop. 1A, its chief cheerleader, Arnold Schwarzenegger, has been raising millions of dollars for campaign advertising. At last count, committees committed to passing 1A have raised nearly $12 million. One of the major contributors is the California Teachers Association, which is a strong indication that Prop. 1A will do little or nothing to put the brakes on spending. This public employee union recognizes that while the spending limit may be phony, the $16 billion in new tax revenue is very real.

Since the public is starting to understand what Prop. 1A is all about, some promoters have changed tactics. Assembly Speaker Karen Bass now says, "If these initiatives do not pass, we are looking at cutting $14 billion in programs." If they can't sell the ballot measures, and 1A in particular, as budget reform, then they will try to scare voters into submission.

However, this flies in the face of recent statements by the governor's foremost expert on the state budget, Director of Finance Mike Genest.

During the March 10, 2009, meeting of the Commission on the 21st Century Economy (the commission created to study California's tax structure), the following exchange between Commissioner Curt Pringle (currently Mayor of Anaheim) and Genest took place:

COMMISSIONER PRINGLE: "But could you tell me under 1A and 1B, if those did not pass, what the economic impact would be in the next two years?

DIRECTOR GENEST: Under 1A and 1B?

COMMISSIONER PRINGLE: Yes, in the next two years.

DIRECTOR GENEST: There wouldn't be.

COMMISSIONER PRINGLE: Okay.

DIRECTOR GENEST: In the next two years, neither one of those has an effect directly in the next two years.

COMMISSIONER PRINGLE: Okay, that's what I had thought. We understand the elements of the trigger in 1A or the trigger in the tax increases that would come about under the passage of 1A. But under 1A and 1B, you don't see any immediate shortage from the general fund?

DIRECTOR GENEST: Not a shortage."

Ok, so there we have it. The state does not NEED the $16 billion tax increase contained in Proposition 1A. The politicians WANT the $16 billion tax increase contained in Prop. 1A.

Taxpayers, hold onto your wallets. More scare tactics from Prop. 1A promoters are sure to be included in their upcoming advertising blitz.

Jon Coupal is President of the Howard Jarvis Taxpayers Association – California’s largest taxpayer organization – which dedicated to the protection of Proposition 13 and promoting taxpayers' rights.