California coalition backs tax hikes over budget cuts

Rather than point the state budget ax at each other, a broad spectrum of interest groups has joined forces in a battle to press Gov. Arnold Schwarzenegger and lawmakers to raise taxes.

Groups representing nearly every state general fund service – education, labor, public safety, environment, health care and social services – have formed an alliance to oppose the governor's proposal for 10 percent across-the-board cuts.

Members say the goal of the newly formed umbrella coalition, which has yet to be named, is to raise public awareness about the effect of cuts and press elected officials into supporting revenue increases.

"Our focus is on solutions," said Anthony Wright, executive director of Health Access, a statewide health care consumer advocacy group that is part of the coalition. "It's not just cut somebody else. That's not a viable strategy."

Coalition members say it's too early to identify specific taxes they would support. They have established committees to focus on lobbying efforts in and out of Sacramento. If they're not successful in the Legislature, the effort could lead to a ballot initiative.

"Everybody realizes they can't do it alone; that's what's bringing everyone together," said Mike Herald, a lobbyist for the Western Center on Law and Poverty. "I think that's why we're going to be strong."

For his part, the governor's recent rhetoric signals more acceptance of increasing revenues.

"I will not raise taxes on the people of California, because they are already paying enough taxes," he said in January when he proposed his budget. Last week, he said "we should go after those tax loopholes" to provide more revenue.

And Friday, he went a step further, mentioning the sales tax. Senate President Pro Tem Don Perata, he said, "has talked about tax increases, about the sales tax, tax loopholes, all of those things ought to be on the table."

Republican lawmakers, on the other hand, continued to oppose tax increases based on what they perceive as government's inability to control spending. General fund spending has increased more than 32 percent in five years.

"If the state of California were to go to a debt counselor, they'd say, 'Do you have a cell phone? Get rid of it. Do you have a credit card? Get the scissors,' " said Sen. Dave Cox, R-Fair Oaks.

Schwarzenegger has proposed cutting across all agencies and departments as California grapples with an estimated $8 billion deficit through June 2009.

Although elected officials approved a series of cuts, borrowing and accounting maneuvers back in February, leaders face more difficult decisions ahead, such as whether to cut school funding, reduce Medi-Cal benefits, close parks and release prisoners early.

Coalition members are trying to prevent those proposals from becoming reality by launching grass-roots campaigns to drum up public support for taxes. A number of rallies have been organized throughout the state.

California Teachers Association President David Sanchez has warned that the governor's proposal would be "equivalent to laying off about 107,000 teachers, or increasing the number of students in every classroom by up to 35 percent" in K-12 schools.

Coalition members warn that cuts also would result in higher college tuition rates, hamper medical access for the poor and decrease fire protection during wildfire season.

Members of the coalition say they hope to energize a number of grass-roots efforts that have already sprung up to fight school cuts, park closures and medical service reductions.

The California State Parks Foundation has launched a "Save Our State Parks" campaign, to reject the governor's proposal to close 48 California state parks and reduce lifeguard staffing on 16 state beaches. The campaign is part of the coalition.

Assemblyman Ted Gaines, R-Roseville, said the state should look for savings by finding efficiencies in government. He suggested laying off school administrators, not teachers.

"I don't think it has to come from teachers," Gaines said. "There's no discipline in government … what they do is come back to taxpayers but they don't look at how they can operate more efficiently."

Herald, who advocates for the poor, said the campaign wants to dispel notions about overspending.

He said the governor and Legislature cut taxes during boom times that have helped exacerbate the deficit as soon as the economy began to slow.

"We want to make sure there's an alternative to a cuts-only solution," Wright said.

"We recognize we have some legislators that are committed to a cuts-only solution but that's the debate. … We don't think voters in Republican constituencies care any less about schools or hospitals or vital services."

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