Accord Near on Ballot Measure to Hike State’s Gas Tax 8 Cents

After a series of closed-door sessions, Republican and Democratic legislative leaders said Thursday that they are near agreement on a gasoline tax increase that would be placed before voters on the Nov. 8 ballot.

The latest proposal would include an 8-cent-a-gallon gasoline tax increase--4 cents at the outset followed by a 1-cent hike each year for the next four years. Voters would also be asked to increase weight fees charged large trucks by 20% and raise state spending on mass transit from the current $60 million a year to $100 million. The tax and fee increases would mean more than $1 billion a year in added revenues for highways and rapid transit systems.

But not all the issues are resolved, and the bipartisan group decided against pressing ahead to get a measure out of the Legislature this week, in part because the group is still unsure how to deal with Republican Gov. George Deukmejian’s reluctance to support any tax increase.

The Legislature had been under pressure to act by Thursday because of a deadline for ballot measures set by Secretary of State March Fong Eu. Late Thursday, she extended the deadline until the end of the month.

Road Improvements

Meanwhile, Deukmejian met with Republican leaders Thursday and indicated that he still favors financing road and highway improvements with bonds and would not sign any measure to increase taxes, said the governor’s press secretary, Kevin Brett. The governor backed a $1-billion transportation bond measure on the June ballot that lost by 541 votes out of more than 5 million cast.

“If there is legislation that comes to the governor to increase the gasoline tax, the verdict is clear,” Brett said. “The governor would veto that type of measure.”

But if the gasoline tax hike is included in a constitutional amendment, it could go on the ballot with a two-thirds vote of the Legislature and without the governor’s signature. Another bill would be needed to speed the measure onto the November ballot.

The governor would be willing to let a speedup bill become law without his signature, Brett said.

Leaders of both parties say there are still some difficulties but that it is possible to resolve them by Aug. 31 when the Legislature is scheduled to adjourn.

“I’m very optimistic,” said Sen. William Campbell (R-Hacienda Heights).

“We have a real chance to do it,” said Assembly Republican Leader Pat Nolan of Glendale.

“The biggest hang-up is in the (governor’s) corner office,” said one Democratic participant in the negotiations.

Some Republicans agree.

“I think the problem to resolve now is the form and format that will get through the Legislature and get through the governor,” said Assemblyman Gil Ferguson (R-Newport Beach).

Ferguson, whose Orange County district is beset by worsening traffic tie-ups, pointed out the irony of Republicans becoming the moving force behind a tax increase.

“This is like Nixon going to China,” he said.

But he terms the state’s highway problems “a crisis” that requires an immediate remedy.

The lawmaker acknowledged that a number of legislators would have problems putting the gas tax increase into the Constitution.

“There are some who say there should be nothing in the Constitution that doesn’t start out with, ‘We the people,’ ” he said.

Simpler Measure

The plan represents a compromise between Democrats and Republicans, who earlier in the week proposed a simpler measure that would immediately raise gasoline taxes 8 cents a gallon.

Assembly Speaker Willie Brown (D-San Francisco) complained earlier this week that 8 cents was too large an increase and that more money needed to be set aside for mass transit. The tentative agreement shows that the Republicans made concessions on both points.

Brown also questioned labeling the gas tax increase a “user fee,” which would place the added highway revenue outside the state’s constitutional spending limit. Democrats have backed similar exemptions from the spending limit for education and social service programs. Privately, some of the negotiators said the issue remains a sticking point that is not entirely resolved.

California currently collects a 9-cent-a-gallon fuel tax on gasoline sales, as well as a 6% sales tax, on top of the 9-cent-a-gallon federal tax.