Plans are underway for the campaign the League will conduct in support of its November 2002 ballot Measure, which gives Sacramento City voters the opportunity to lower the City's 7.5% Utility User Tax (UUT) over a 4-year period to 2.5% beginning in 2003, and to expand the rebate program to all City taxpayers and families with a yearly income of less than $25,000. The League obtained over 15,000 signatures, and on May 30th submitted 7,123 verified city resident voters signatures to cover the 5,546 valid signatures required to qualify the ballot Measure for the November ballot. For those curious about how the ballot Measure will be validated, it began when Vice President Jon Coupal, a city resident, one of the three recorded proponents of the Measure, provided the Petitions listing the signatures to the City Clerk on May 30th. The City then sends the Petitions to the County Office of Voter Registration who do the actual verification. They count and verify the signatures by taking a 3 percent random sample of the total number of signatures submitted, or at least 500 signatures, whichever is the greater, and project the "hit" percentage to the total number of signatures submitted to determine whether the required number has been collected. If the count is less than the required number of signatures, they will do a total count of the submitted signatures. However, because of workload there is no guarantee the count can be made in time for the November ballot. Ergo, you must collect a bunch of signatures to make sure you qualify. And we will qualify!

The League's SACRAMENTANS FOR A FAIR UTILITY TAX Recipient Committee, Identification Number ID 1240152, is handling the campaign and its finances. The Committee needs donations to help finance the campaign. We encourage all members to help by donating money to our Recipient Committee, as the Committee will face strong, well-funded opponents of the ballot Measure. Checks should be made out to SACRAMENTANS FOR A FAIR UTILITY TAX, and mailed to the League office.

CITY COUNCIL APPROVES EXTENSION OF UTILITY TAX REBATE

On May 21st the Sacramento City Council approved adding money to the budget to extend the Utility Users Tax (UUT) rebate for senior citizens over the age of 62 with incomes less than $25,000 a year, and all disabled people with incomes less than $25,000, to include all people paying the tax in the City with incomes less than $25,000. The action will take place sometime after the November election. The City's change would be somewhat similar to the same provision in the League's UUT reduction Measure, except that, as proposed by the City, it could be changed by any City Council in the future. The League Measure, however, provides that it could not be changed, except by a vote of the people. League President Mersereau spoke to the Council at the meeting, commending them for expanding the rebate. Be certain, however, that if were not for our pending Initiative and its PERMANENT increase in the rebate program, the City Council NEVER would have taken this action.

SACRAMENTO CITY COUNCIL VOTES TO ASK VOTERS FOR A PAY RAISE

On Tuesday May 21st the Sacramento City Council voted, with one abstention, Councilman Dave Jones, to ask voters to raise their pay and the Mayor's pay substantially. In addition, the Mayor's job would become a full-time position. However, nowhere in the proposal was any change made to the City Charter to increase the Mayor's powers or responsibilities. It neither provides the Mayor with veto power over Council decisions, nor control over the budget, as is the case with virtually all full-time, highly paid "strong" City Mayors. In cities with such Mayors, City Managers are essentially administrators, rather than the "strong" City Manager now defined in the City Charter. The ballot Measure would include selection by the Mayor of a five-person Compensation Commission, to be approved by a majority of the Council members, who would set the salaries. Consequently, the November ballot Measure will be a plain and simple pay raise action.

This action originally began as an effort by former Mayors Ann Rudin and Phil Isenberg to circulate a Petition to gather city resident signatures to qualify the Measure described above, exactly the same procedure just completed by the League to qualify the reduction in the City's Utility User Tax. To accomplish this, the proponents of the Initiative would have to obtain 18,800 verified City voters' signatures, plus an additional 10% percent as a safety pad to cover the vagaries of the Voter Registration's sampling method for validation. This raises the number of valid signatures to be gathered to a total of 20,890, roughly 15% of the City's registered voters. The two former Mayors began the Petition signature gathering, but in a relatively short time probably recognized they had embarked on a very expensive and virtually impossible task. This probably forced former Mayor Ann Rudin's embarrassing request of the City Council to vote to put their pay raise on the November ballot. And they acquiesced.

President Mersereau spoke at the meeting, and advised that although the League had not as yet taken a position on the proposal, he supports a full-time, fully compensated Mayor. However, he pointed out to the Council that the League had to go through the signature gathering procedure, whereas the full-time Mayor Measure now doesn't.

COUNTY UTILITY AND HOTEL TAXES

On May 22nd, the County Board of Supervisors approved Resolution 2002-0605, placing the Utility User Tax (UUT) on the November 2002 ballot. The action was taken as a result of our successful four year lawsuit charging that the County illegally passed a Utility User Tax, and an increase in its Transient Occupancy Tax (Hotel Tax) during the 1990s, without putting them before the voters. These actions violated Proposition 62, which requires voter approval of such actions.

The ballot proposition for the UUT Measure will read: "Shall the County of Sacramento continue to collect the existing utility user tax within its unincorporated area in the amount of 2.5% upon the use of electricity, natural gas, landline telephones and cable television and sewer service?"

The League anticipates that the Supervisors will also pass a similar Resolution to put the Transient Occupancy Tax (Hotel Tax) on the November ballot.

TAXPAYERS ALERT

The Howard Jarvis Taxpayers Organization has issued an ALERT on a NEW ASSAULT ON HOMEOWNERS. They advised that another bill to reduce the vote for local bonds that are the sole responsibility of property owners is working its way through the Senate. SCA 10 would reduce the vote for local bonds for libraries from two-thirds to 55%. Like Proposition 39, if approved, SCA 10 would be a significant blow to homeowners, who unlike businesses, have no way to pass on these increased costs.

The Taxpayers League also supports the Jarvis organization's fight to stop this bill and asks that every member write a letter to your State Senator to stop this anti-taxpayer legislation. Please take a moment to write your Senator and express your strong opposition to SCA 10. A brief letter works as well as a lengthy one.

All Senators have the same address: State Capitol, P.O. Box 942848, Sacramento, CA 95814.

THE GOVERNOR'S REVISED BUDGET

On May 14th Governor Davis, facing a $23.6 billion shortfall, released his $99 billion Revised Budget. The revisions clearly show he abandoned his no new taxes statement, proposing to raise at least $5 billion in new or higher taxes over the next two years. The budget calls for an increase in the car tax (vehicle license fee) by nearly $2.4 billion in 2003, and an increase in the cigarette tax by 50 cents a pack, raising about $475 million a year. His plan calls for covering over $9.5 billion of the shortfall by both direct and indirect borrowing, including borrowing $4.5 billion against future tobacco settlement funds. About $7 billion of the shortfall is to come from spending cuts affecting local governments, coupled to internal budget reductions. A great many of these measures simply result in pushing the problem into the future, laying a heavy additional cost to future taxpayers.

ORACLE DEBACLE

The administration signed a $95 million non-competitive, sole source contract on May 31st last year with the Oracle Corp. for computer software that reputedly the state didn't need, and as yet hasn't used. The contract was hurried through the system in record time, and was approved by the Governor's office. Daniel Weintraub of The Bee reported it was hurried as Oracle wanted to book the contract as an asset on a financial report to Wall Street for a fiscal period ending that day. They threatened to pull their offer off the table if it weren't signed by close of business. Lately it has been found that an Oracle lobbyist delivered a $25,000 campaign contribution to the Governor's technology advisor five days after the contract was signed. And when this became knowledge, the story exploded in all forms of the media.

This scandal has everyone in the California government running away from each other so fast that they look like a gaggle of geese suddenly confronted by an ax-carrying farmer. From the Governor on down, all fingers point at somebody else, supposedly responsible. And the killing of underlings has begun, in hopes of satisfying the press, and through them, the public, that things are being done to flush out the miscreant(s). But from years of watching we have learned that flurried activity does not necessarily mean progress is being made.

The only thing we know for sure is that the taxpayers' money is to be squandered wholesale.

The file on the Oracle Case in the League office has grown so fast, and is so large that we can hardly keep score on who is sabering whom. Of the dozens and dozens of accounts written, we used The Sacramento Bee May 4th editorial: THE ORACLE SCANDAL - THIS IS A CASE FOR THE U.S ATTORNEY to synopsize the debacle. The editorial stated: "Campaign fund-raising has been the great passion - indeed, the only passion - of Gov. Gray Davis' career…" "So when the governor's office and his campaign say that Davis knew nothing about a botched, hurry-up $95 million software contract with Oracle Corp., that led to the company's lobbyist to hand over a $25,000 contribution personally to the governor's e-government director 5 days after the contract was signed, pardon us for being skeptical." The Bee then points out that on the same day the Oracle story broke, "the governor's appointees on the state Buildings Standards Commission voted, against the original recommendation of it's own staff, and at the behest of the plumber's union, to block the use of plastic pipe to carry water into homes. The decision makes California one of two states to bar the use of the pipe, which is less expensive to install. The plumbers have contributed $1.3 million to the governor."

A Joint Legislative Audit Committee is looking into the debacle, and Governor Davis has returned his $25,000 to Oracle. But he was trumped by Attorney General Bill Lockyer, who had to return $50,000 in campaign contributions from Oracle. He is supposed to be investigating the associated dealings to determine whether any violations of civil or criminal law have occurred in connection with the contract. Lockyer said: "These contributions neither create a conflict of interest to me or my office, nor do they constitute any violation of law."

Any wonder why those outside, and some inside the "system" are yelling that this is a case for the U.S attorney's office? Much more will follow on this case. Keep tuned.

AB 1058 INCREASES VEHICLE FEES, CREATES TAX ON DRIVING, AND A 50-CENT GAS TAX HIKE

Assembly Bill 1058, favored by the California Air Resources Board (CARB), would give them broad powers to reduce carbon dioxide (CO2) emissions from vehicle exhaust by increasing the cost of vehicles, gasoline, and establishing a mileage driven fee! CO2 is an inert gas exhaled by humans, absorbed by plants and trees to produce oxygen, and which does not contribute to air pollution. Allegedly, it is a contributor to global warming, an interesting premise considering we are coming out of the last of many ice ages the earth has endured over the last 500 million years. It would continue to warm even if mankind had never existed.

Specifically, the Bill aims at reducing fuel consumption by increasing gasoline taxes by 50-cents per gallon, creating a two-cent tax on every mile driven by all passenger vehicles, and adding an extra fee of $3,500 on minivans, light trucks, and sport utility vehicles to discourage their purchase. The top speed limit in the state would be reduced to 55 miles per hour. If there ever was a Bill contrived to have a more negative impact on California's economy, its consumers, and taxpayers, we are not aware of it. How much would you be willing to bet Governor Davis, this election year, would approve such a monstrosity, even if it were supported by every state Senator and Assembly Member we have? Odds in favor would probably be a million to one that he would veto it with the first pen he could get his hands on. And if his veto were overridden, we promise to list every Legislator who votes for the override on the cover of the Tax Fax, under the name of Assemblywoman Fran Pavley of Woodland Hills, who dreamed up this clinker.

PROPOSITION 8 PROPERTIES' TAX INCREASES

County Tax Assessor Ken Stieger announced that the assessed values of Proposition 8 properties will again be on the increase in the coming tax year as a result of continuing improvement in Sacramento's real estate market.

Proposition 8 property results from annual enrollment of either a property's Proposition 13 value (factored for inflation by no more than 2% annually), or its current market value on the Lien Date (January 1), whichever is less. When current market value falls below Proposition 13 value, that lower value is referred to as a "Proposition 8 Value." Proposition 8 properties are reviewed annually, and appropriate adjustments made to reflect either current market value on the Lien Date (January 1), or Property 13 value, whichever is lower. In the real estate recession from 1992 -1997 some 130,000 of the County's 390,000 parcels were assessed under Proposition 8. This year 28,000 will have their Proposition 13 factored base year value reinstated and will no longer be assessed under Proposition 8. The number of parcels to be assessed under Proposition 8 this year will be about 7,000 parcels. In no case may the Assessor enroll a property value greater than a property's Proposition 13 factored value. The increases will take effect for the 2002-2003 Tax Year.

The Assessor asks that property owners not contact the office about possible increases until they receive written notice of a new assessment. After assessments are received and if owners think the assessment is incorrect they can discuss the matter by calling the Assessor's staff by calling (916) 874-5231.

A detailed discussion of the Proposition 8 review process is available on the Assessor's web site at: www.saccounty.net/assessor/prop8.html

MEMBERSHIP

Our Members constitute the League's strength and Members provide coverage on many issues we try to resolve.

Over 120 taxing and rate based agencies in Sacramento County and its six Cities handle billions of taxpayers' dollars yearly. The League's constant surveillance of their activities has been our mission for 41 years. We have been successful in rooting out many illegal uses of taxpayers' money, and have defeated the last three attempts to raise sales taxes in the city and county of Sacramento. The last alone has kept $120 million in the pockets of taxpayers over the last four years. It is estimated that our work during the past year offset $15 million in rate costs alone for County and Cities services.

We receive no outside funding. Funds are raised in the form of membership dues and donations to our Taxpayer Defense Fund. This year the League is part of, or in charge of, two serious battles in involving protection of the taxpayer, the reduction of the City of Sacramento's Utility User Tax (UUT) being just one example. These fights are local. In addition we are joining with a lead taxpayer organization sponsoring a statewide fight for all taxpaying property owners. To win these endeavors we ask all members to help by recruiting new members. And now, in view of the campaign we are waging in the City to reduce the UUT, in addition to contributions to the Taxpayer Defense Fund the League asks that campaign contributions be made to SACRAMENTANS FOR A FAIR UTILITY TAX, the Recipient Committee we created to put the City of Sacramento UUT Measure on the November ballot.

LETTERS TO THE LEAGUE

We seek "Letters to the League" from members on present projects and issues on which we are working, and recommendations on those we should look at. Letters may be edited and republished in any format, primarily in the interest of available space. Send letters, faxes, or e-mail to the Sacramento County Taxpayers League. Our e-mail is Sactaxleague@prodigy.net; our fax number is (916) 921-5991, and our address is:

Sacramento County Taxpayers League
1832 Tribute Road, #210
Sacramento, CA 95815

MEMORIAL DAY

Memorial Day started like most days. Got up about 6 a.m., made coffee, took pills, opened the door, and brought in The Bee. I start with the Metro, as local events interest me the most, the curse of being a taxpayers' advocate. Sure enough, the headline stated, "W. Sac may link tax hike with a cut". Mayor Kristoff proposes a half-cent sales tax increase, "balanced" by eliminating street light assessments. The article had the usual ploys and statements by elected officials aimed at convincing voters to vote a tax increase. But Councilman Villegas blew it. He commented, "There's money right in our community, sitting on the table that we have not grabbed". As Yogi Berra said, "It's déjà vu all over again."

The Opinion page returned me to reality. The Editorial "Memorial Day" was part of poet Walt Whitman's "When Lilacs Last in the Dooryard Bloom'd" memorializing the death of Abraham Lincoln, and his slow transit in the black draped train as it carried him to his final resting place in Springfield. I was not familiar with the poem's connection with Lincoln, as I remember only Whitman's poem "O Captain! My Captain!" his ode covering Lincoln's assassination. I read "Lilacs" again to get its full flavor, dwelled on the Civil War, and fast-forwarded to WW II, my war. My wife asked what I was thinking about, and I told her, "Men long dead." And tears came. Memorial Day honors those that gave their lives in defense of this nation, and so it should. But for me it's a Day I never look forward to. The memories of those I served with in Italy during WW II are too vivid, and those we lost too painful, to make the day at all pleasant.

At McClellan last week, the All American, one of only two WW II B-24 bombers still flying in the world, was on display. The aircraft is oddly marked. Looking forward, on its right side is a painted dragon from nose to tail that gives the aircraft its name, Dragon and His Tail. But it is the left side that means a great deal to me. From nose to tail, in alphabetical order, are the names of those who have contributed to its restoration, tied to their organizations. The left vertical stabilizer (tail - it has two) is painted with the colors of the 465th Bomb Group, my Group in Italy, used to recognize the organization that donated the most money to put the airplane back in the air. And on the fuselage are the names of many whom never came back, who had money donated in their name, as a memorial. So my Memorial Day weekend ran from visiting the All American on Saturday, doing the Jazz Festival tour in Old Town with my wife on Sunday, and sitting here Monday thinking about old friends and comrades whom have passed away, on this the day we remember our honored dead.

Joe Sullivan

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