November Gas Tax Vote Called for by Governor : Special Election Would Decide on $20-Billion Transportation Plan, Including 9-Cent Fuel Hike

SACRAMENTO —  Gov. George Deukmejian, a longtime opponent of tax increases, Tuesday called for a special November election to allow voters to consider a $20-billion transportation improvement plan that would include a 9-cent-per-gallon gasoline tax hike.

Minutes before convening the final meeting of his transportation summit, Deukmejian outlined a 10-year financing plan for upgrading California’s transportation system.

As the governor proposed it, the special election would place three related measures before the voters:

- A lifting of the state’s constitutional spending limit as it applies to additional revenue raised by the proposed transportation package. The spending limit, called the Gann amendment after its author, Paul Gann, was approved by voters in 1979.

- An initial 5-cent-per-gallon gasoline tax hike, to be followed by 1-cent increases each of the next four years.

- A $2.4-billion general obligation bond issue for mass transit.

Truck Fee Increase

As part of the overall plan, Deukmejian also proposed legislation that would impose substantial increases in truck fees.

While the governor has the authority to call a special election, the Legislature must approve the measures that actually appear on the ballot.

The governor said the plan was being presented in “the spirit of compromise” and represented his assessment of what would be needed to raise an additional $20 billion over the next decade and provide California with “a first-class transportation system.”

In an attempt to show that he has not broken faith with his anti-tax constituency, the governor insisted that he was not making specific proposals but merely picking and choosing the suggestions made by the summit’s participants that he believed “should be included in a transportation plan if, in my judgment, it is to succeed.”

The plan, however, was so specific and detailed that many Republicans and Democrats alike immediately viewed it as the governor’s official proposal. Sen. William Campbell (R-Hacienda Heights) offered to revise transportation legislation he is proposing to mirror the governor’s plan.

Campbell acknowledged that his legislation was defeated Tuesday in the Senate Transportation Committee, but he said he will ask for reconsideration. The committee meanwhile, approved 7 to 2 a proposal by Senate President Pro Tem David A. Roberti (D-Los Angeles) and Sen. Quentin L. Kopp (I-San Francisco) to increase the gas tax 10 cents.

While some business and political leaders taking part in the transportation summit meeting were visibly annoyed by the governor’s refusal to firmly pledge his support for the transportation plan, others interpreted his latest remarks as a softening of his position. They said they were encouraged by his willingness to both call a special election quickly and to consider a gas tax increase that would eventually rise as high as 9 cents.

“It is an important offer but not a conclusion to which we are going to accede without a lot of discussion and negotiation,” Roberti said.

Both Roberti and Assembly Speaker Willie Brown (D-San Francisco) said they are troubled that Deukmejian apparently intended to keep the spending limit intact for all other state programs.

“If he intends to do it only for transportation, it won’t work,” Brown said. “We won’t do it only for transportation.”

Roberti said the health-care system in California could have “real problems” if it is not also included in the Gann modifications.

“I prefer to see the Gann limit lifted across the board,” he said.

Deukmejian conceded that the final summit meeting ended without reaching a consensus on a transportation plan, but he believed it had narrowed the issues enough so that the Legislature would eventually be able to fashion a plan that he could endorse.

Although he agreed he had compromised on some issues, Deukmejian said he did not believe his “no new tax” reputation had been tarnished.

Earlier, the governor had said he would “not stand in the way” of a gas tax ballot measure but had given no indication that he would support it. On Tuesday, he surprised transportation leaders by actually suggesting an increase and hinting that it could get his endorsement.

Nonetheless, Deukmejian said he had steadfastly insisted that tax increases had to be presented to the voters, even though most of the people attending his summit--more than two dozen legislative, business and labor leaders--opposed that idea. Statewide polls have indicated that a gas tax increase of more than a few cents would be defeated.

As the final meeting ended, several business leaders said they were now looking for ways to win voter approval of a 9-cent gas tax increase.

David Ackerman, a lobbyist for the Associated General Contractors of California, praised the governor for calling for a special election, saying it improved the tax increase’s chance of passage. A special election, with its relatively low turnout, would probably draw a higher proportion of voters who favor the increase, he predicted.

“I think the governor has come a long way, and I think he really deserves credit for it,” added Tom Ellick, president of the California Manufacturers Assn.

But for any transportation plan to win public approval, Ellick contended, it is essential that Deukmejian stump the state in favor of a gas tax increase.

“It’s going to take that kind of leadership for the public to understand how important this is to the economy of the state,” Ellick said.

Jack Maltester, president of Californians for Better Transportation, said he believes that the major accomplishment of the governor’s summit was the agreement that an additional $20 billion needs to be pumped into transportation in the next decade and that a gas tax increase is essential to do it.

Californians now pay 9 cents per gallon in state gasoline tax and another 9 cents in federal tax. In addition, they pay a 6% state sales tax.