CA: Back-door tax hikes

Riverside Press-Enterprise ^ | 12/9/04 | Op/Ed

[NormsRevenge]

Some Californians could find a nasty surprise in their water and sewer bills, courtesy of state government. Water consumers will be paying more to help cover the state budget shortfall, a back-door tax hike possible because of confusing, irresponsible state budget-writing.

Special districts - local agencies formed to provide water, sewer, fire protection and other services - were supposed to ship about $350 million in property taxes to the state this year, as part of a two-year deal to help balance the state budget.

But last-minute changes exempted many special districts from most or all of the tax shift, which dropped the burden disproportionately on "enterprise" districts. These districts directly charge customers for their services - and can raise rates to replace losses to the state.

Eastern Municipal Water District, for example, will lose $12.6 million in tax receipts each of the next two years, 100 percent of its share of local property taxes. San Bernardino Valley Municipal Water District will lose $4.1 million a year, 95 percent of its property taxes. Coachella Valley Water District will see $7.2 million of its property tax vanish into state coffers.

These and hundreds of other affected districts have income besides property taxes, but the loss carves huge holes in their budgets. Some can get by on reserves and borrowing, or by cutting services. But others will raise rates, so some Californians will be paying extra for water and sewer service because state legislators couldn't balance the budget honestly.

Dropping rate hikes randomly on Californians because the state wouldn't match its spending with its income extends a long tradition of legislative irresponsibility. The state needs candid budgeting, with clear-cut choices that the public can understand. Californians should know what's at stake when the state adopts a budget - instead of finding out later in their water bills.

[NormsRevenge]

Thar's gold in them thar pipes.

[Myrddin]

Socialism is expensive. There is never enough money to cover all the good deeds that can be concocted by politicians.

[mvpel]

They can make you pay, but they can't make you stay.

The $26 billion Davis Deficit has to be paid off somehow.

0% income tax and 0% sales tax here in New Hampshire, and comparable property taxes on comparable houses due to the lower cost of real estate.

[Logical me]

This has been stated many times, but the CRATS in California have been buying votes with handouts for years. They understand that to keep in power they have to continue handouts. We, here in CA, will never balance the budget until we can replace the liberal spending machine with conservatives. But if the conservatives start cutting the handouts, they will loose voters and back to the liberals again. No hope for CA. Maybe we could go to Hollywood and ask those overpaid jacka@@ to make a donation, we could eliminate the deficit.