O.C. Legislators Oppose Wilson on Tax Increases : Budget: Most put removing sales levy exemption on sports, entertainment admissions at top of blacklist.

SACRAMENTO —  Drawing an ideological line in the sand, most Orange County lawmakers say they will firmly oppose any tax increases to help the state climb out of its $14.3-billion budget abyss.

They made good on that promise last week by voting against increased income taxes for the rich. And most of the area’s 11 senators and Assembly members vow to do the same with other proposals, including one that would particularly affect Orange County by adding a 6 1/2% sales tax on tickets to sporting events and entertainment attractions such as Disneyland.

Instead, they want Gov. Pete Wilson and legislative leaders to stop the fiscal hemorrhaging by instituting a number of “structural” budget reforms that would suspend automatic cost-of-living increases for state programs, as well as making deep cuts in welfare payments.

The reason, they say, is simple: California is living beyond its means. Just like any family with a predetermined income, they say, the state simply must learn to tighten its belt and not resort to hitting up the taxpayer when it goes into the red.

“They (taxpayers) don’t live that kind of a life themselves,” Assemblyman Gil Ferguson (R-Newport Beach) said. “If their income is frozen, their expenses are frozen. But government is a different animal. It doesn’t care what the income is; it cares what it wants to spend.”

Wilson and legislators say a budget compromise could come together as early as this weekend. The state Constitution requires the Legislature and governor to enact a balanced budget annually by June 30, the end of the fiscal year, but deliberations often drag on past that deadline.

As the budget drama unfolds, area legislators discussed their positions on several key spending issues in a series of Times interviews. Assemblyman Tom Umberg (D-Garden Grove) was on Army reserve duty and unavailable for comment. Ross Johnson (R-La Habra), the Assembly’s Republican leader, declined to say how he would vote on the issues.

“When my constituents contact me, I’ll talk to them,” said Johnson, one of four legislative leaders who negotiate directly with Wilson on the budget.

However, the remaining nine Orange County lawmakers expressed views that were sometimes at odds with the governor. And some admit that Californians will likely see some increased taxes to bridge the historic gap between what the state will take in and what it could spend during 1991-1992.

“To pass a state budget, it takes a two-thirds vote requirement of both houses of the Legislature, plus you have a governor who has already proposed a certain level of taxes on people,” Sen. John R. Lewis (R-Orange) said.

“Because the Democrats and the liberal philosophy enjoy a majority status in the Legislature, I don’t think it takes a rocket scientist to figure out that ultimately there will be tax increases in the package. I think that’s a reality,” he said.

But what some consider inevitable in Sacramento apparently won’t stop many Orange County lawmakers from making their stand.

On Tuesday, the area’s six Republican Assembly members joined their caucus colleagues at a press conference to bad-mouth tax increases and demand structural reforms. If all 31 Republicans hold out, it could be enough to deprive the 80-member Assembly of its two-thirds budget vote and tie up the spending plan indefinitely.

“We feel strongly that there is no way to continue to tax Californians, tax businesses, and have a healthy economy,” Assemblyman Tom Mays (R-Huntington Beach) said. “We have to provide incentives during the recession to help build our economy back up. . . . We need to all work together to get out of this recession so we don’t come up with these proposed tax increases.”

Tops on the delegation’s tax blacklist is a proposal that some fear could take a bite out of Orange County’s lucrative tourism trade. The measure by Sen. Frank Hill (R-Whittier) would remove local sales tax exemptions from admission to sporting events and entertainment attractions.

The move, which would raise about $425 million statewide, would increase ticket prices 6 1/2% in Orange County for California Angels’ and Los Angeles Rams’ games, movies, and national tourist draws such as Knott’s Berry Farm and Disneyland.

“If you want to pay an extra 35 cents to go to the movies, that’s life in the big city,” said Hill, adding that entertainment and sporting events are “voluntary, discretionary” activities.

Yet he stands alone in the delegation. The others say they will vigorously oppose the entertainment tax because it could damage Orange County’s economy while hurting middle-class patrons, some of whom save all year for a trip to Disneyland or Knott’s Berry Farm.

At Disneyland, the proposed increase would add $1.79 to a $27.50 adult ticket and $1.46 to a $22.50 ticket for children 3 to 11 years old. Jack Lindquist, the park’s president, said through a spokeswoman Tuesday that he is “100% vehemently opposed” to the tax.

Sen. Marian Bergeson (R-Newport Beach) shared the sentiment, warning that it would not only hurt the world famous attraction but “be a real detriment to tourism, and that is a very, very heavy source of revenue to Orange County.”

Assemblywoman Doris Allen (R-Cypress) said the tax is “punitive” to the middle-income: “I don’t think that everyone who goes to Disneyland is rich or that it’s a luxury. It’s part of life, I mean, unless you are just going to work, sleep, eat and go to bed. . . .”

Orange County lawmakers unanimously rejected two proposals last week to increase the top income tax rate from 9.3% for the wealthiest Californians--individuals making at least $100,000 and couples earning $200,000 or more. The Assembly measure raising the rate to 11% was defeated, but the Senate’s proposal to make it 10% survived and is still alive in the Legislature.

Area legislators say they are equally opposed to removing the sales tax exemptions for newspapers, candy, and snack foods. They also turn thumbs-down on Wilson’s request to overcome the deficit by boosting the sales tax on routine items by 1 1/4 cents, a sweeping proposal that would bring Orange County’s sales tax to 7 3/4 cents.

On program cuts, the delegation is also prepared to buck Wilson on his request to suspend Proposition 98, the voter initiative that requires about 40% of the general fund to be used for public schools. The governor needs to lift the mandate to make more than $2 billion in cuts, a step that local legislators said is too drastic. Only Assemblyman Nolan Frizzelle (R-Fountain Valley) said he would go along with Wilson.

Yet most heartily agree with Wilson that welfare payments must be trimmed by 8.8%, cutting the average monthly subsidy for a mother and two children from $694--the second highest in the nation--to $633. Only Mays said he favored a less severe legislative proposal to cut welfare payments by only 4%.

In fact, reforming the welfare system is perhaps the highest budget priority among Orange County representatives. Edward R. Royce (R-Anaheim) wants to require able-bodied welfare recipients to perform 30 hours of community service a week--a tactic he hopes will stem a migration of public assistance candidates from other states.

“These folks may be lazy but they’re not stupid,” Hill said, adding that drastic welfare changes would be necessary in this budget before he votes for a selective number of tax increases.

The lawmakers generally support a reduction in the renter’s credit. Wilson wants to save $210 million in tax rebates by scaling back the annual credits from $120 to $70 per couple, and $60 to $35 for individuals. While most Orange County legislators said they would not support that plan, they said the credits should be cut out altogether for the poorest renters who file no income taxes.

Lawmakers were divided, however, on a proposal to trim $300 million from the state corrections budget by relaxing some parole supervision and restrictions.

O.C. Lawmakers and the Budget

How Orange County’s lawmakers stand on major points of the budget now being negotiated between legislative leaders and Gov. Pete Wilson. Many lawmakers said their positions could change depending on how the final budget proposal is put together.

SENATE

Marian Frank Bergeson Hill Issue R-Newport Bch R-Whittier Suspend Prop. 98, which No No dedicates 40% of state revenues for education. Increase sales tax No No by 1 1/4 cents. Tax newspapers, No Yes candy, snack foods. Tax entertainment and No Yes /or sporting events. Increase income taxes No No for the wealthy. Cut welfare payments by 8.8% 8.8% either by 8.8% or 4%. Make additional cuts Yes No in the prison budget. Reduce the renter’s credit. Yes Yes

John R. Edward R. Lewis Royce Issue R-Orange R-Anaheim Suspend Prop. 98, which No No dedicates 40% of state revenues for education. Increase sales tax No No by 1 1/4 cents. Tax newspapers, No No candy, snack foods. Tax entertainment and No No /or sporting events. Increase income taxes No No for the wealthy. Cut welfare payments by 8.8% 8.8% either by 8.8% or 4%. Make additional cuts Unsure No in the prison budget. Reduce the renter’s credit. Yes Yes

ASSEMBLY

Tom Robert C. Mays Frazee Issue R-Hunt. Bch. R-Carlsbad Suspend Prop. 98, which No No dedicates 40% of state revenues for education. Increase sales tax No No by 1 1/4 cents. Tax newspapers, No No candy, snack foods. Tax entertainment and No No /or sporting events. Increase income taxes No No for the wealthy. Cut welfare payments by 4% 8.8% either by 8.8% or 4%. Make additional cuts No Yes in the prison budget. Reduce the renter’s credit. Yes Yes

Gil Nolan Doris Ferguson Frizzelle Allen Issue R-Newport Bch. R-Ftn. Valley R-Anaheim Suspend Prop. 98, which No Yes No dedicates 40% of state revenues for education. Increase sales tax No No No by 1 1/4 cents. Tax newspapers, No No No candy, snack foods. Tax entertainment and No No No /or sporting events. Increase income taxes No No No for the wealthy. Cut welfare payments by 8.8% 8.8% 4% either by 8.8% or 4%. Make additional cuts Yes No Yes in the prison budget. Reduce the renter’s credit. Yes Yes Yes

The Times was unable to obtain answers from Assemblymen Ross Johnson (R-La Habra) and Tom Umberg (D-Garden Grove). Johnson declined to answer written questions about budget issues.Umberg was out of state on Army reserve duty.