California: Davis dodges a bullet - VLF: Legislature shouldn`t fall for governor`s scheme

The Long Beach Press-Telegram ^ | Wednesday, January 15, 2003 - 9:50:12 PM MST | Editorial Staff

[Ernest_at_the_Beach]

In another of his cunning moves, Gov. Gray Davis has nearly ensured that the state`s vehicle registration fees will increase, possibly three-fold. But he`s not going to do the dirty work … he`ll leave that to the Legislature.

In the budget he released last week, Davis made a point of proudly proclaiming that he would not raise license fees to balance the state budget. Then, he proceeded to yank $4.2 billion in vehicle fee revenue from cities and counties, knowing those entities would … rightly … cry foul.

He also knows that state legislators will be held responsible by voters and city leaders for any loss of local revenue under their watch. And, finally, he knows that because the VLF is technically a "fee," and not a tax, it only needs a simple majority vote to pass in the Legislature. The Republican minority can`t block it.

It doesn`t take a genius to see two moves ahead: The Legislature will raise car license fees and direct that money to the cities and counties. Davis can then sit back and say, "Hey, it wasn`t me."

There is another way. State legislators can refuse to play Davis` game. Do not let him raise taxes and fees to pay for the state`s mistakes, and do not let him hurt cities and counties. And don`t be patsies, either. Fix the budget as any household would: Balance spending with current revenues.

Davis cannot raise the vehicle registration fees if the Legislature refuses to take part in his duplicity. Our locally elected leaders must demand a better solution.

[Ernest_at_the_Beach]

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[tubebender]

Davis cannot raise the vehicle registration fees if the Legislature refuses to take part in his duplicity. Our locally elected leaders must demand a better solution.

If this passes it will directly benefit the cities and counties so they will be pushing for it. It's up to us to put pressure on local officials and our assemblymen.

[marsh2]

The VLF are constitutionally protected (General Fund) revenues for counties and cities. They are fees received in lieu of property tax on vehicles. When the VLF was reduced, the implementing legislation required that the reduction would not result in a loss of revenues to counties and cities. The state General Fund now backfills the counties and cities for their loss.

Davis proposal would eliminate approximately $4.2 billion in general fund revenue for counties from Feb. 2003 to June 2004.

[In my county, 1/4 of the general fund revenue is VLF.) The General Fund pays for basic local public health & safety services - sheriffs, jails, emergency rooms, public health and some fire departments.