TO ARMS! TO ARMS! THE INITIATIVES ARE COMING

Governor Schwarzenegger has dug in his heels, and is taking on the Legislators with regard to how the state is managed. He has opened fire on a number of fronts, and appears be ready to foster Initiatives, nearly all of which will involve the Taxpayers League, its Directors, and its Members. The Sacramento Bee writer Gary Delshon wrote on January 29th that, "After a week of partisan bickering between Gov. Arnold Schwarzenegger and legislative Democrats, the Republican governor took his first official step Friday toward what many lawmakers and analysts suspect has been his intention all along - going around the Legislature to sell his proposals directly to voters."

The League has an unusual input and impact on local and statewide issues, notwithstanding its seemingly local interest as a county organization. And this is due specifically to the composition and experiences of its members and Leaders, and their present and past positions in the community. First and foremost is that we are all volunteers, and secondly is that we represent the biggest special interest group in the state, its taxpayers, be they individuals, commercial enterprises, or industrial complexes. At Board meetings on taxes, rates, fees and assessments, local or statewide, and state and local governments' operations that affect public money, included are our Vice President Jonathan Coupal, who is also President of the Howard Jarvis Taxpayers Association, and Director Carl Burton, Assistant to Ted Costa, CEO of the People's Advocate, who is also a Member of the League. Think about that. 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. Think a little harder, and you should recall that Ted Costa lit the fuse that caused the explosion that removed Governor Gray Davis from office, and that Director Carl Burton worked to process close to two million signatures to make sure that Ted's Proposition got on the ballot. Add that Jon Coupal promulgated both statewide Propositions 62 and 218, the right to vote on taxes laws, and that those laws have saved taxpayers many millions of dollars statewide, and used by the Taxpayers League, millions in the County of Sacramento. Our leaders and we are in statewide operations big-time.

Further, when elected, Governor Schwarzenegger asked two of our Directors, Jon Coupal, and then Assemblyman, now Senator Dave Cox to be part of the team that recommended those selected to fill positions in the new administration.

The Governor, at a Sacramento Press Club luncheon, "called on four issues: exploding pension costs, legislative redistricting, state spending and merit pay for teachers." wrote Delshon. Each may become an Initiative, and will be countered by other Initiatives in opposition. All bets are that they will surface early, aimed at a special fall election. With regard to redistricting, Ted Costa's People's Advocate already has it in print, ready to gather signatures. So get ready, the Initiatives are coming, and the Leagues will be in the game.

ELECTION OF THE YEAR 2005 BOARD OFFICERS

The Board's new Officers for 2005 were selected at the Board meeting on January 20th. Ken Payne was re-elected Board President as were Vice Presidents Jonathan Coupal and Bob Creedon. Joe Sullivan was elected Secretary, replacing Jay O'Brien, who had asked not to be considered for an Officer's post in 2005. Former League President Paul Carr replaced Sullivan as Treasurer.

THE TWISTED TALE OF THE KING'S ARENA GOES ON

Two months ago we told the story about North Natomas landowners pursuit of a plan to fund a new Arena for the Sacramento Kings in return for a speeded-up sale and development of about 10,000 acres of farmland north of the city. The idea was proposed by Sheriff Lou Blanas, who since has pulled himself out of any further activity with regard to the plan. Former Councilman and Mayor Jimmy Yee has now stepped into the breech, joining with former Assemblyman Darrell Steinberg, Realtor Mike Lyon, and Restaurateur Randy Paragary to review the landowner's and developer's plan.

The Arena would be privately funded, although The Sacramento Bee contended the profit being offered is public money, as the public, because of a possible voter's "decision to allow this development will create an enormous amount if wealth - somewhere in the neighborhood of $2 billion in land values alone." The property owners would dedicate 20 percent of the money from the sale, an amount expected to total $350 million to build the Arena and also create a $50 million endowment for arts groups and youth sports. It appears that the money may be provided to somebody, possibly local government, to construct the Arena, and in that case the Arena would be publicly owned. But until the final Initiative appears, actual details are unknown.

But a hitch has been introduced, as reported by the Bee's Mary Lynne Vellinga on January 21st. It seems that three of the North Natomas landowners, "broke ranks" with the rest of the landowners on the basis that consultants and lawyers putting together the deal have failed to answer a number of questions involving details. The dissidents are former Congressman Ose's and the Leal families, and Jeff Norton, who own over 1800 acres of the land involved. Vellinga reported that the proponents of the Initiative "would go forward even without backing from all the landowners."

Even our Secretary got involved. Doug Ose was on Tom Sullivan's radio program, discussing the landowners problems, when they took a call from Joe Sullivan who asked whether any public land was involved? Joe's underlying concern was that City of Sacramento land might be involved at the new Arena's possible site, close to the present Arena. Tom immediately identified Joe's connection with the Taxpayers League, and gave the League a warm kudo. Doug answered by saying that no public land was involved.

The Arena drama goes on and on. And the silence with respect to the deal exhibited by City leaders has been termed "Deafening" by The Sacramento Bee in a January 23rd Editorial.

LOBBYIST AND CONSULTANT ENTER THE INITIATIVE GAME

The Sacramento Bee reporter Margaret Talev wrote on January 9th, that Jim Gonzalez and Associates and John Thiella, their political consultant, who traditionally support Democratic issues, have submitted four proposed Initiatives to the State Attorney General's office that might attract support in the event of a special election to consider midcensus redistricting. Talev wrote, "The four proposals vary in terms of whether all members of any new redistricting panel would need to be retired judges; how many panelists there would be; and whether voters would need to approve new districts drawn by such a panel before they could take effect. But all the plans underscore federal protections for minority voters and urban districts, traditional Democratic bases, and make any redistricting that would take place as a result of the special election this year apply only to state races." The apparent attempt is to off-set the Governor's thrust to end gerrymandering of political districts to protect incumbents, as was done in 2001 after the year 2000 census. The effect was evident last year when not a single incumbent lost a seat in the November general election. The deck had been stacked.

NO CHARGE FOR FILING HOMEOWNERS' EXEMPTION CLAIM FORM

Sacramento County Assessor Ken Stieger sent a notice advising that owners of homes which may or may not have a Homeowners' Exemption on file with the Assessor are receiving advertisements from companies that for a fee offer to provide a completed exemption claim form for filing with the Assessor. The Assessor wants to alert the public to the fact that these companies are not affiliated with the Assessor in any way, nor is there any requirement that their services be used in order to file a Homeowners' Exemption claim.

The Assessor's Office does not charge for filing the Homeowners' Exemption claim form, nor is there any charge for the form itself. Any property owner who wishes, may file a claim directly with the Assessor at no charge and without using the service offered by these businesses.

Before taking any action, the Assessor suggests that owners who have received these ads first examine the annual property bill copy mailed to them in October. If the Homeowner's Exemption line shows any amount other than zero, they have the exemption and no other action is necessary. It should be noted that buyers of residential properties are automatically sent forms by the Assessor's Office. Anyone who thinks they may need to file for the exemption can call (916) 875-0710, between 9am and 4pm, to request a claim form. The final filing date for the full exemption on the annual assessment roll is February 15th.

The Homeowners' Exemption reduces the assessed value of an owner-occupied residence by a maximum of $7000, and results in an annual savings of about $70 in property tax. It is available to the owner of any type of property that they both own and occupy as their principal place of residence.

To qualify for the exemption, you must own and occupy a property as your principal place of residence on January 1st or within 90 days after the date the property was acquired, or new construction was completed. You are entitled to no more than one Homeowners' Exemption within the State of California.

WHY DOES "CUT" APPLY TO BUDGET INCREASES ?

Listening to arguments about the state budget, and the use of the word "cuts" by feeders at the public trough who aren't getting all they want, a recent article in a San Francisco Chronicle column by the Governor’s Finance Director Tom Campbell was well worth reading. He said the problem with state finances is “spending formulas set in stone”. Next year, California state revenues will go up $5 billion because of a reviving economy, but because of formulas set in existing law, expenditures will go up $10 billion. Campbell points out the Governor is proposing increasing school funding by $2.9 billion, a 7% increase over this year and enough to cover the increased school population, cost of living and new programs. Other parts of government will see an average of 2% increases. However, some education groups want $2.2 billion more because under some spending formulas that is how much more money they would like to receive. So the wail is that the Governor "cut" the school budget. Really?

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

In our last edition of the Perspective, we explored the concept of the “flat tax” in contrast to our current federal and state income tax systems. (Which is by all accounts and common first-hand knowledge to be highly complex and unbearably onerous.)

One very positive result of the article is that it generated a lively discussion among our members about our tax system in general and I received a good deal of feedback about it. (In particular, thanks go to , Russ Nicholson, who has been a member since 1965, for his numerous insights on this topic. In the weeks to come, we will continue our review of our overall tax system, including the concepts of the “Fair Tax” system and the tax system reform recommendations which President Bush’s Tax Commission are to release by July 31, 2005.

We’ll have much to review in the next few months. So sharpen your critical thinking skills and please keep the feedback coming. Your insights as members are very valuable. Many minds create a better work product.

Enjoy your February!

Bruce Lee

Executive Director

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