Wilson Backs Off on Plan to Shift Taxes : Budget: Governor concedes he does not have enough votes in the Legislature. A consensus is growing among lawmakers for a partial transfer of property tax revenues from local governments to schools.
SACRAMENTO — The Wilson Administration acknowledged Thursday what virtually everyone else in the Capitol has been saying for days: The governor lacks the votes to enact the centerpiece of his proposed state budget, a $2.6-billion shift of property tax revenues from local governments to schools.
Wilson told reporters that he is still committed to the property tax transfer but is willing to accept a smaller shift.
“There are some things happening to change the number,” Wilson said, declining to offer a new figure that might be acceptable to him.
Dan Schnur, Wilson’s chief spokesman, said the governor relented after being persuaded by county officials that his plan would devastate the services they provide.
Schnur also conceded that Wilson could not get the two-thirds majorities needed in the Legislature to enact his plan.
“There are not 54 votes for anything right now,” Schnur said, referring to the number needed to pass a budget in the 80-member Assembly. “There are discussions going on in the Legislature and the Administration to try to identify savings in other areas that would allow us to lessen the effects of the property tax transfer.”
The Administration’s concession comes amid reluctance by members of both parties in the Legislature to go along with the governor’s proposal. Senate Republican Leader Ken Maddy of Fresno and members of a bipartisan task force on local government issues said Wednesday that Wilson’s proposal is all but dead.
A consensus seems to be developing in the Legislature for a $1.3-billion shift in the fiscal year that begins July 1, with the potential a year later for the full $2.6-billion transfer that Wilson has been advocating.
Maddy and Assemblyman John Vasconcellos (D-Santa Clara), a key budget writer, have advocated a $1.3-billion tax transfer. Assemblyman Mike Gotch (D-San Diego), chairman of an Assembly task force on the issue, has also said that a $1.3-billion shift is the most that could be defensible.
The local government issue is politically entwined with the fight over the future of a temporary, half-cent sales tax due to expire June 30.
Wilson wants to extend the tax for six months and hand the money over to counties to help them survive his proposed shift of property taxes. The property tax transfer is needed, the governor says, so he can keep commitments made to public education without spending more state money.
Others say the property tax transfer would be unnecessary, or could be made smaller, if the state kept the sales tax on its books or gave it to schools.
The Assembly took a step in that direction Thursday, passing amendments to a bill by Speaker Willie Brown (D-San Francisco) that would extend the half-cent sales tax for one year and keep the $1.4 billion it would raise in the state’s general fund. Brown’s bill also would allow every California county to increase the sales tax another half-cent for local purposes with the consent of a majority of voters.
The Assembly also amended a bill by Assemblyman Dean Andal (R-Stockton) to suspend, through 1996, the renters tax credit. The credit, $60 for individuals and $120 for couples, costs the state about $400 million a year.
Both bills await final action, perhaps as soon as Monday.
Meanwhile, an Assembly-Senate conference committee on the budget announced plans to complete its task by today and move a spending plan to the floors of both houses.
The constitutional deadline for legislative passage of the budget is Tuesday.
Times staff writer Dan Morain also contributed to this article.
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