CommentsLA WATCHDOG--In 368 days, we will be voting for the next President of the United States. In very blue California, the outcome is not in doubt. Nor is the party of our next US Senator.
On the other hand, the statewide ballot measures will be a donnybrook as special interests with wads of campaign cash are looking to raid our wallets and to prevent citizens from authorizing the issuance of billions in debt on major public works projects.
The educational establishment, the teachers’ unions, and the building industry have placed a $9 billion general obligation school bond measure on the ballot. This will end up costing taxpayers an average of $500 million a year for the next 35 years, a total of $17.6 billion, including $8.6 billion in interest. The proceeds from these bonds will be used for new construction ($3 billion), modernization of K-12 public school facilities ($3 billion), charter schools ($1 billion), and California Community Colleges ($1 billion).
The “No Blank Checks Initiative” has also qualified for the ballot. This measure would require a public vote to approve any revenue bonds on state projects that exceed $2 billion. Unlike general obligation bonds that are serviced with our tax dollars, revenue bonds rely on the cash flow of the particular project which, in turn, relies on the fees paid by the citizens using the services of the particular project.
The provisions of this constitutional amendment would apply to Governor Brown’s two legacy pet projects, the $68 billion High Speed Rail boondoggle connecting Los Angeles and San Francisco and the $15 billion Twin Tunnels that will convey hundreds of billions of gallons of water every year from the Sacramento River to the California Aqueduct that serves Southern California and to farms in the Central Valley.
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While No Blank Checks only qualified for the ballot on November 2, the political establishment and business and labor groups are already trashing this initiative that will limit their ability to pick the pockets of the citizens of California unless they have our approval. The opposition to this citizen empowering amendment will no doubt devote huge resources to defeat this measure sponsored by Dean Cortopassi, a Stockton based farmer who opposes the Twin Tunnels.
We can also expect several other tax measures on the ballot, including efforts by the public sector unions to extend or make permanent the temporary tax increases imposed by Proposition 30 that was approved by 55% of the voters in November of 2012. This measure increased our sales tax by a quarter of a cent until December 31, 2018 and the marginal tax rate on higher incomes ($250,00 and up) until December 31, 2016.
Alternatively, State Senator Bob Hertzberg (D-Van Nuys) is considering a proposal to extend the sales tax to include services in order to smooth out the revenue swings of our boom or bust tax system that relies heavily on upper income residents and a good stock market. But under the guise of reform, Hertzberg wants to raise $10 billion in additional revenue for the State. Otherwise, to use the $10 Billion Man’s own words, “it’s not worth the effort.”
But that’s not all folks!!!!
There is also an effort to increase our gas tax to fund the $59 billion repair bill for our highways as designated funds were diverted by our free spending Legislature to pay for ever increasing personnel costs, including ballooning pension contributions.
Other political insiders and union leaders are pushing for a “Split Roll” ballot measure where Proposition 13 would not apply to commercial properties, raising an estimated $9 billion for local governments. Of course, these proponents will fail to mention that these additional taxes will be passed along to us through higher prices for goods and services.
In Los Angeles County, Metro and the Board of Supervisors are preparing to place on the ballot yet another half cent increase in our sales tax to pay for transportation projects. Mayor Garcetti has endorsed this tax increase, in large part because the Local Return provision will kick back 25% of the tax revenue to our profligate City which, despite huge increases in tax revenues, still has not eliminated its Structural Deficit or made an effort to Live Within Its Means.
Prepare for barrage of propaganda and a heavily financed assault on our wallets by the fiscally irresponsible politicians, the public sector unions, self-serving special interests, and their ring kissing cronies. But until the City, County, and State reform their finances and inefficient operations, we need to reject their efforts to pick our pockets.
After all, we are already one the highest taxed states in the nation, right up there with financial basket cases like New York, New Jersey, and Connecticut.
We are not striving to be Number One. Just Say No.
(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee and a member of the Greater Wilshire Neighborhood Council. Humphreville is the publisher of the Recycler Classifieds -- www.recycler.com. He can be reached at: [email protected])
-cw
CityWatch
Vol 13 Issue 90
Pub: Nov 6, 2015
November 8, 2016: Hold on to Your Wallet
