SACRAMENTO TAXPAYER ORGANIZATIONS SUPPORT GOVERNMENT REFORMS

On February 25th, at a Rally on the North steps of the State Capitol, Jonathan Coupal, President of the Howard Jarvis Taxpayers Association, and Joe Sullivan of the Sacramento County Taxpayers League called for important government reforms in order to solve California's multiple financial problems, and denounced the unrealistic "status quo" demands of special interests. Coupal and Sullivan emphasized the need for significant change to start immediately.

"Our state budget and political systems have suffered under the stranglehold of special interests for too long." said Sullivan. The speakers, joined also by statements from Taxpayers League President Ken Payne, pointed out that fundamental changes are long overdue to end the destructive downward spiral of fiscal and political mismanagement that puts the state farther and farther behind the economic curve every year, which ultimately will put real growth and revitalization out of reach.

The local taxpayer organization leaders specifically pointed to the deficit-riddled state budget, lavish public pension program, under-performing education system, and gerrymandered political districts as major obstacles facing California on the road to economic recovery. The current state of government operations has created an environment that makes it impossible to solve California's recent financial issues.

Coupal stressed the need to take a stand against the groups that have put California in this compromising position. Sullivan reinforced this by saying, "These special interests that benefit handsomely from the status quo demand that we preserve huge deficits at the expense of the people of California and our future generations. We must reform the way our government operates and curb the state's spending habit that is virtually out of control. Reform is not only necessary, but the price of inaction is too costly to pass on to our children."

The event demonstrated that Californians welcome meaningful reforms to the state government, and that Sacramento taxpayers, and their organizations, are proud to play an active role to improve California's future.

FORUM ON ANNEXATION BY SMUD OF PG&E ASSETS IN YOLO COUNTY

The next League Board of Directors meeting on March 17th at 12:00 noon will be held in Conference Room1, on the first floor of the building at 8800 CA Center Drive, south of the intersection of Watt Avenue and Route 50. The meeting was moved from Coco's Restaurant on Arden as the number of people expected exceeds the capacity of Coco's conference area.

The meeting will be a special Taxpayers League Forum featuring presentations by the Sacramento Municipal Utility District (SMUD) and Pacific Gas and Electrical (PG&E) regarding the request by people in Yolo County for SMUD Annexation of a portion of Yolo County for electrical service. The area under consideration is presently served by PG&E. All those interested are invited to attend.

KING'S ARENA TALE GOES ON

Draw a line through the original North Natomas landowners plan to fund a new Arena for the Sacramento Kings with money from development of 10,000 acres of farmland north of the city. Three of the landowners, "broke ranks" with the rest, and pulled their 1800 acres out of the deal. Although proponents of the plan said they would go forward without backing from all the landowners, the attempt collapsed as it was obvious that not enough private money would be raised. The cost of the Arena again became a problem. The Maloof's want at least $400 million spent. The remaining land-owning proponents, could only commit $225 million. As a result, Joe Maloof of the Kings said an arena built with private money was unrealistic. He believes it has to be a private-public partnership.

Sacramento City Councilman Steve Cohn picked up on Maloof's comment, and thinks the plan can be resurrected by throwing in the full value of 180 acres of city owned land adjacent to the Arco Arena for development as a gift. It was this possibility that concerned our Secretary Joe Sullivan when he talked to former Congressman Doug Ose on Tom Sullivan's radio program. Doug and Tom were discussing the landowner's problems. Doug answered Joe by saying that no public land was involved. However, this was before Joe Maloof made his statement.

Underlying this is recognition a new Arena will not make money. Joe Maloof said that even if the city built the Arena, the Kings would need to control revenues and Arena naming rights in order to generate the money for big player salaries and fan amenities. He repeated that the Kings will pay off their $83 million loan from the city (that bought the Arco Arena), and pay enough rent to cover about 15 to 20 percent of the Arena's cost. And Maloof added, "We haven't made money with the Kings."

Let's see. Years ago the city loaned the builders of the Arco Arena $73.6 million to get the job done. The Kings assumed the loan, and notwithstanding that the Kings made payments on the loan over the years, the loan is now $83 million. Now Arena proponents want to start over with a $400 million investment. Care to rush in and put your money into this neat deal?

WATER DISTRICTS WATCH OUT!

Special districts better wake up, become alert, and hang on to their wallets, because the state's elected bandits are looking to rob them. The California Association of Sanitation put out a Memorandum to its member agencies, associates, and lawyers, Subject: "SENATOR PERATA COMMENTS ON "RESERVES" which related that Senate President Don Perata, at a press conference, discussed how Senate Democrats were going to address the Governor's Budget and Initiatives. He mentioned they were going to look at "special districts and hundreds and hundreds of taxpayer dollars they have embargoed ….. specifically water and wastewater districts." The Memo went on to state that current statute prohibits any transfer of funds from the Local Agency Investment Fund (LAIF) of special districts for any State General Fund purposes. Yeh! Right! Ask anyone involved in transportation where the money taxpayers voted for to pay for building and repair our roads went, and get ready to duck. So watch out water guys, the bandits are coming!

GOVERNOR GOES ON THE ROAD WITH INITIATIVES

Governor Schwarzenegger drew a line in the sand marked March 1st as a deadline for action by the legislature on his proposals to reform how the state is managed. The Governor is pressing four issues: exploding pension costs, legislative redistricting, state spending, and merit pay for teachers. When the Legislature failed to respond by March 1st, the governor, on March 2nd, took his first official step in going around the Legislature to sell his proposals directly to voters. He personally sought voter's signatures on two petitions, pension reform and redistricting. With regard to redistricting, the Governor used Ted Costa's People's Advocate Petition titled: "Reapportionment, Initiative Constitutional Amendment" which will amend state constitutional provisions governing redistricting of California's Assembly Senate, Board of Equalization and Congressional Districts, and put the job in the hands of three retired judges to craft redistricting plans. This is the same Ted Costa, a League Member, who lit the fuse that caused the explosion that removed Governor Gray Davis from office. With the Governor pushing the redistricting effort, Ted Costa may accomplish two historical events, the removal of a sitting governor, and the killing of the dreaded state Gerrymander. Maybe, in the future, Ted may also develop the Initiative for a part-time Legislature he has spoken of, that, if successful, could make him all time winner in the "three-strikes-and-your-out" category.

A PRIMER ON PROPOSITIONS 13, AND ITS RELATIVE, PROPOSITION 8

Proposition 13, the state's constitutional property tax protection law is coming under heavy fire from Legislative tax-and-spenders determined to kill its provisions. The Proposition limits the property tax to one percent of a property's value, and limits annual reassessment to no more than two percent. Notwithstanding that assault, another hitch has was encountered that all property owners should be aware of.

Jonathan Coupal, of the Howard Jarvis Taxpayers Association, who coincidentally is one of the League's two Vice Presidents, covered the problem as part of an article, "Propositions 13 and 8 Combine to Keep Property Taxes Reasonable." He wrote that after Proposition 13 was approved to protect homeowners against being penalized by increasing property values, a question was raised concerning what would protect taxpayers whose homes, for reasons beyond their control, lost significant value. The issue was addressed by Proposition 8, which allowed homeowners whose homes had lost value to apply for a tax reduction --- actually a reduction in value --- that would amount to one percent of the property's lower value. However, assessors operate as if the lower tax only applied as long as the property remained depressed. If the value increased, the tax could be raised based on the new value as long as it was never higher than the amount allowed by Proposition 13. The result can be confusing. While the actual tax will not be greater than what would have been allowed if the taxes had not been temporarily reduced, the result can be an increase in taxes that exceeds Proposition 13's two percent annual limit. This difference from the two percent limit was challenged as a violation of Proposition 13 in court, and the trial court agreed. This decision was later overturned by the Appellate Court, which found that Proposition 8 allowed an increase greater than two percent to recapture value. The issue was raised to the California Supreme Court. After Coupal published the article, the California Supreme Court declined to hear the argument. Therefore, the Appellate Court decision stands. Consequently there are, and can be, a glitch when homes whose values and property taxes were decreased under Proposition 8, that may see more than a two percent yearly increase as the value of some homes increase in the now booming real estate market.

THE REST OF THE STORY

The Perspective's story covering the Taxpayer organization's rally at the State Capitol in support of the Governor, told of speakers President Coupal of the Howard Jarvis Taxpayers Association (HJTA), League President Payne and Director Sullivan representing the Taxpayers League, and what they said. But untold was the effort of those behind the scenes to made it happen. League Director Carl Burton did almost all advance work with the aid of Penny Stauffer and Jennifer Abreu of the HJTA staff. Carl, Penny, and Jennifer began weeks in advance, mailing out notices, and sending e-mails and faxes to League and HJTA members, and to a number of organizational group's members known to support the Governor's efforts. The trio also arranged for preparation of signs, reproduction of flyers, and written material to be used at the Capitol. Carl, besides attending organizational meetings and a dinner, advertised the event. He also took on the task of getting a conference table, podium, microphone and sign stanchions on the Capitol steps. And when the event was over, he made everything go away. He did the heavy lifting, and Penney and Jennifer helped. All three deserve our thanks.

AMPLIFICATION OF FEBRUARY 2005 "PERSPECTIVE STORY

We were called by Ernie Dynda of the United Organization of Taxpayers,Inc., who pointed out that in February's Perspective article To Arms! ToArms! The Initiatives are Coming! Stated, "The leaders of the Jarvis and Gann organizations that put Proposition 13 on the books, that started a tax revolution in California are on our Board of Directors." gave the impression that the Organizations were the People' Advocate and the Howard Jarvis Taxpayers Association. Actually it was Paul Gann's People's Advocate and the United Organization of Taxpayers, Inc., headed at that time by Howard Jarvis. After Proposition 13 passed, Howard Jarvis formed the California Tax Reduction Movement whose basic mission was to protect Proposition 13. The organization's name was changed to the Howard Jarvis Taxpayers Association shortly after Howard Jarvis's death in 1986.

LETTERS TO THE LEAGUE

We seek “Letters to the League” from Members concerning projects and issues on which we are working, along with 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 telephone number is (916) 921-5991. Our fax number is (916) 567-1279. And our address is:
Sacramento County Taxpayers League
1804 Tribute Road, Suite 207
Sacramento, CA 95815.

EXECUTIVE DIRECTOR'S MESSAGE - ANNUAL DINNER

The Taxpayers League Annual Dinner will be on Thursday, April 21st. in the Doubletree Hotel across the from Arden Fair shopping Mall on Arden Way. The Annual Dinner is the only full Membership Meeting held during the year, and provides League Members the opportunity to gather to review events of the past year, and to honor those in the community whom have worked to protect the County's taxpayers. All Members should set aside the evening of April 21st to join with other Members at the League's major yearly event.

The event will begin at 6:00 pm with a no-host reception and the main dinner will begin at 7:00 pm.

We're looking forward to a fun event and a great opportunity to see old acquaintances and make new friends. Details on the event will be out shortly.

Bruce Lee

Executive Director

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