Prolonged Budget Battle Gives Lobbyists Extra Chances

Not everybody is unhappy about the delay in solving the state budget crisis.

For Sacramento lobbyists trying to beat down tax proposals, the longer the impasse lasts, the more time they have to persuade legislators to see things their way.

Take lobbyist Dennis H. Mangers of the California Cable Television Assn. Gov. Pete Wilson proposed a 6% tax on cable television and telephone bills to raise $675 million to help balance the budget. The tax would tack an additional $3 charge on the average subscriber’s monthly bill--too high, Mangers says, especially when added to local fees.

Because the budget issue remains unresolved, Mangers, a former Orange County legislator, is able to continue campaigning hard against the higher levy.

One tactic he has chosen is a daily parade of about 50 cable operators from communities all over California who arrive in Sacramento to buttonhole and talk to their own legislators. At the same time, full-page advertisements are running in newspapers and a telephone hot line has been set up so cable subscribers can add their voices to the howl.

“More and more legislators are saying that they agree a 6% tax is too high,” Mangers said. “The continuing delay gives us more time to try to convince others.”

As he talked in his second-floor office in the refurbished Senator Hotel across the street from the Capitol, a dozen cable television representatives ate lunch and mapped out afternoon visits with various lawmakers.

Six floors above, a representative of AT & T was busy pointing out to legislators that a 6% tax on their constituents’ phone bills would be coming on top of local fees already levied. Richard K. Mason said that as long as the budget debate goes on, he is able to go to lawmakers one by one, showing them just how severe the tax bite would be on voters in their districts.

“The situation is still very fluid,” Mason said.

It became less fluid late Thursday--to the benefit of both Mason and Mangers. Although it was not a done deal, three legislative leaders and Wilson emerged from a private meeting with an agreement on an alternative. Instead of a 6% tax on cable TV and phone calls, they said they favored a 2% tax on a broader array of utilities.

Meanwhile, lobbyist David Swoap, who works for Frito-Lay, said he is hoping for similar good news for his client. Swoap is opposing the governor’s plan to raise $200 million by extending the sales tax to snack foods and candy.

“We think we are getting more and more people to listen. The delay enables us to continue to make our point,” said Swoap, who was secretary of the Health and Welfare Agency during the Deukmejian Administration.

“There is no rational justification to tax pretzels and cookies and not tax other food like caviar and Brie.”

Lobbyist George Steffes, who once served as a legislative liaison for former Gov. Ronald Reagan, is busy coming up with alternatives to Wilson’s plan that would extend the sales tax to newspapers and bottled water. It would reap another $114 million.

“More time means more people are floating more new tax schemes,” he said. “Maybe some of . . . those of interest to my clients can be dropped.”

Not every lobbyist is happy, however. If one group gets its way, the Legislature might turn to other interests not now the target of new taxes.

One major oil lobbyist, who declined to be identified, said, “I’m more afraid of what could be done to us if (the budget) keeps getting put off. Delay isn’t in our long-term interest.”

For all the lobbyists working the Capitol halls, the longer the budget fight continues, the more that tempers are likely to flare.

“Every 24 hours that passes without a solution, the negative attitude of (legislators) is growing,” said lobbyist Dennis Carpenter, a former state senator from Orange County.

“They aren’t happy. They aren’t fun to talk to. They aren’t fun to lobby at this time.”

Carpenter added: “And, if they don’t get something done this weekend, starting Monday, a lot of wives and children are going to start asking, ‘Are we going on our vacation or not?’ ”