Governor Makes Additional Cuts in 'Ugly' Budget Fix

Vol. III, No. 28 August 10, 2009 IN THIS ISSUE Note from Cal-Tax: We hope you are enjoying this publication. If there are others in your office who should receive this publication, please let us know. Karl@caltax.org. State Budget: Governor makes additional cuts in "ugly" budget fix. Corporate Taxes: Workers' wages hurt by high corporate taxes, study finds. Tax Commission: Governor will call special session to take up tax commission's recommendations in September. California's Business Climate: Tax credit for filming in California is having positive impact on jobs, governor says. State Board of Equalization: Federal "Cash for Clunkers" auto rebates not subject to sales tax. Local Taxes: Sales tax increase on November ballot in Ventura. Waste, Fraud & Mismanagement: Your Tax Dollars at Work: Fresno pays $11,000 to guard vacant homeless camp. Potpourri: LA Times online readers support Proposition 13. Blast From the Past: FTB's 1957 report says economic expansion is best source of revenue growth. STATE BUDGET: Governor Makes Additional Cuts in 'Ugly' Budget Fix Governor Arnold Schwarzenegger on July 28 signed the 2009-10 budget fix package, passed by the Legislature July 25, after further reducing spending by $489 million with line-item vetoes and by another $168 million through other actions. The Legislature's budget package fell short of covering the projected deficit, as Assembly Speaker Karen Bass was not able to deliver enough Assembly votes to support the agreement for the package negotiated by the "Big Five." The Assembly rejected a provision to generate $100 million in revenue from offshore oil drilling in the Santa Barbara area (AB X4 23) and a proposal to shift gas tax revenue from local government to the state ($971 million in 2009-10 and $750 million in 2010-11) (AB X4 30). Before signing AB X4 1, the main budget reduction bill, the governor called it the "good, the bad and the ugly." While eschewing any significant tax increases, the package could result in a balanced 2009-10 general fund if revenues don't deteriorate further and spending is held in check to the levels appropriated. However, there are a number of provisions that could force further cuts or tax increases to balance the budgets for 201011, 2011-12, 2012-13 and beyond. Dangers for Future Budgets These future problems stem from the passage of future spending obligations, use of onetime solutions, and borrowing that has to be repaid. The potential problems are: 1215 K Street, Suite 1250, Sacramento, CA 95814 • 916-441-0490 • www.caltax.org • New Spending Obligations. The biggest new spending obligation included in this package is $11.2 billion of additional funds appropriated to schools in AB X4 3. This amount is not included in the 2009-10 tally, but will come due over a series of future fiscal years, and will be built into the Proposition 98 base. This spending is not required, pursuant to the provisions of Article XVI, Section 8(d) of the state constitution (a provision that was added to the constitution through legislation sponsored by Cal-Tax). There is no funding provided to pay for this new obligation. One-Time Solutions. About $4.7 billion in one-time solutions (called "gimmicks" or "smoke and mirrors" by some) are helping balance the 2009-10 budget. These one-time solutions will not be available next year, leaving a gap that will have to be filled either by economic growth or other solutions. The one-time fixes are: Acceleration of withholding and estimated taxes in AB X4 17, totaling $2.3 billion in 2009 and $193 million in 2010-11. A pay date shift for state employees from June 30 to July 1 in AB X4 12 – a one-time benefit to the general fund of $900 million. Sale of a portion of the State Compensation Insurance Fund in AB X4 12 – one-time revenue of $1 billion. • • Borrowing. Borrowing has a more negative fiscal impact than use of one-time revenues. When money is borrowed, not only is it available for one-time use only, but it must be paid back. This creates a double-whammy. The budget fix package is predicated on borrowing $2.2 billion (AB X4 14 and AB X4 15). Most of this is from local government by shifting 8 percent of property tax revenues from local agencies to schools (which reduces state costs for school support). This borrowing has to be paid back by June 30, 2013. February Revenues Sunset. With the failure of Proposition 1A in May, the sales tax increase, personal income tax increase and car tax increase enacted in February will sunset after the 2010-11 fiscal year. The total of additional taxes that will not be collected as the result of the voters' rejection of the proposition was estimated by the legislative analyst to be $16 billion. • Revenues In addition to the one-time revenues from the overwithholding and earlier estimated tax payments mentioned above, the budget fix relies on several other sources of additional revenue: • Compliance. AB X4 18 requires backup withholding of 7 percent (when required by federal law), and requires non-retailing businesses with receipts of more than $100,000 to register with the Board of Equalization and file annual use tax returns. These provisions were scored as producing $58 million in 2009-10 and $155 million in 2010-11. Originally, the BOE scored the use tax bill as a $640 million increase, but later modified the figure downward. The FTB has scored backup withholding as a $26 million revenue gain. August 10, 2009 2 • • Driver's License Fee Increase. AB X4 10 increases the driver's license fee from $28 to $30. This should raise approximately $16 million. Higher Education Fees. Directly, AB X4 2 increases community college fees by $1 per unit, to generate about $80 million. Indirectly, as a result of reductions of general fund support for higher education, the University of California increased fees to raise approximately $166 million and the California State University increased fees to raise about $366 million. Other Fees. There are numerous other fee increases in the package. For example, AB X4 12 increases mobile home registration fees by $12 and raises fees on providers of employee housing to $200 per facility and $27 per employee. The bill also creates the Labor Enforcement and Compliance Fund, funded by surcharges on employers, for support of the activities of the Division of Labor Standards Enforcement. • Reduction in General Fund Appropriations The budget fix anticipates a reduction of $16.1 billion (as estimated by the governor) or $18 billion (as estimated by the legislative analyst) in general fund expenditures, depending on what is counted as an expenditure reduction. Whether this level of reduction actually will materialize is anyone's guess. These changes often are misconstrued by the press and public to be "cuts" or "program reductions." Some of these reductions do fall into this category, but the category also includes a lot of actions that are not program reductions. For example, the college fee increases described above are scored as budget cuts, as the general fund expenditures have been reduced. However, this is not a program reduction of $612 million, as fees have been substituted for general fund money to continue the programs. Further, this budget fix, combined with February's actions, anticipates a $1.2 billion cut in corrections ($788 million in this package), but there is no plan for making such a cut. One bill that passed as part of the package, almost unnoticed, is SB 90 (Ducheny), appropriating $645 million from the general fund to the Department of Corrections to cover deficiencies in 2007-08 and 2008-09. This illustrates the point that the level of expenditures can be higher than budgeted, and so-called "cuts" may not materialize. Budget Fix: Process Has Not Improved. The process by which the budget revision was adopted was not much different than the one in February, which was subject to much criticism from the press and public. The details were negotiated in secret by the "Big Five," amended into bills and jammed through the Legislature without public hearings and without adequate time for the public or legislators to read the bills. Legislators were forced to stay up all night to vote on the package. Los Angeles Times columnist George Skelton tossed out an idea in a July 26 column: prohibit the Legislature from voting on measures after sundown. August 10, 2009 3 State Employee Unions May Ask Workers to Take More Time Off Without Pay. Members of the union that represents almost half of the state government's workforce have voted to authorize a strike due to anger over Governor Arnold Schwarzenegger's decision to furlough state workers three days a month. Service Employees International Union Local 1000 announced August 1 that members have voted to authorize "job actions up to and including a strike." Union leaders said 74 percent of those voting gave the goahead for a strike, but they would not reveal how many people voted. (Cal-Tax: A strike would have the same economic impact as a furlough. For example, a 12-day strike would represent the same loss of pay as one furlough day per month for a year. A strike could save the state a considerable amount of money.) (Source: San Francisco Chronicle, August 2.) CORPORATE TAXES: Workers' Wages Hurt by High Corporate Taxes, Study Finds A new report from the Tax Foundation reveals that workers have comparatively lower wages in states with higher corporate taxes. The non-partisan group's research found that a 1 percent increase in the average tax rate leads to a 0.014 percent drop in real wages – roughly a $2.50 loss in wages for every dollar increase in corporate tax collections. By comparison, states with comparatively low corporate taxes have seen wages rise beyond what they otherwise would have, the report said. The Tax Foundation used state-level data from all 50 states from 1970 through 2007, and controlled for labor market variables such as unionization, right-to-work laws and demographic features of the population. Discussing how a corporate tax increase can affect labor costs, the report states: "The tax cannot be borne by capital because capital is mobile and its after-tax return is unaffected by the change in the tax. Similarly, the tax will generally not be passed forward to consumers through higher prices provided the good is tradable and its price unable to adjust because of international price competition. Thus, the only channel for the tax to be absorbed is through the price of labor. The fall in wages, however, will apply for all labor, not just labor in the taxed sector. Thus, as a first approximation, labor may well bear more than the full burden of the tax, especially for a small economy." TAX COMMISSION: Governor Will Call Special Session to Take Up Tax Commission's Recommendations in September Governor Arnold Schwarzenegger said July 29 that he will call a special session of the Legislature to consider recommendations of the state tax commission after that panel issues its report in September. The governor also issued an executive order granting the commission's request to extend its deadline until September 20. August 10, 2009 4 The 14-member commission, formally known as the Commission on the 21st Century Economy, was formed late last year and originally was supposed to complete a report by April 15. It later requested an extension until July 31, and then sought another extension until mid-September. The commissioners have been discussing overhauling California's tax laws by imposing a new "business net receipts tax," eliminating the corporate tax and state sales tax, and making other changes. (Click here for the commission's broad outline of the latest plan, which also includes the possibility of a split roll property tax. Click here for a list of memos from various commissioners describing several alternative proposals, none of which appears to have the consensus of the full panel – a goal previously outlined by Chairman Gerald Parsky for any recommendation made by the commission.) In his executive order, the governor reiterated his advice that the commission should recommend ways to reduce revenue volatility, writing that "an improved tax system would decrease the pressure for future tax increases to address revenue shortfalls that will continue to occur if the volatility of the current system is not reduced." The executive order also notes, "California's current tax system could be improved to provide greater incentives for firms to increase employment in the state and invest more in entrepreneurial activities and research that lead to high-paying jobs and more exports." Mr. Parsky has indicated that the commission will hold two meetings in September, in addition to two interested parties meetings – on August 26 and August 28 – to flesh out details of some of the provisions currently under consideration. (Sources: Governor's Executive Order S-15-09, July 29; Commission on the 21st Century Economy website.) CALIFORNIA'S BUSINESS CLIMATE: Tax Credit for Filming in California Is Having Positive Impact on Jobs, Governor Says Governor Arnold Schwarzenegger on July 27 announced the first 25 film and television productions to qualify for the film and television production incentive included in the February budget package. "I fought hard for economic stimulus measures including the film and television production incentive, because we must do everything in our power to stimulate the economy and put Californians back to work," the governor said. "This is about the make-up artists, the caterers and the countless other small businesses that rely on film and television production to succeed and create jobs for Californians." In the last decade, California has lost a significant share of studio feature film projects, with the number shot in California declining 50 percent since 2003, according to statistics tracked by the California Film Commission. According to the Los Angeles Economic Development Corporation, each dollar spent on film production in California generates an economic output of $2.95 statewide. "I can state without a doubt this new film incentive program is the reason we're making our movie in California," said Tom Duffield, production designer on CBS Films' Faster. "Without the incentive, it would have been made in New Mexico. I'm now free to hire the best crews and use the best local vendors in the business. This couldn't come at a better time." August 10, 2009 5 In related news: Nevada Launches New Ad Campaign to Attract California Businesses. The Nevada Development Authority, which works to attract businesses based on the Silver State's relatively favorable business climate, launched a new advertising campaign August 6, targeted at California employers. Four new ads highlighting California's high tax burden in creative ways are posted here. STATE BOARD OF EQUALIZATION: Federal 'Cash for Clunkers' Auto Rebates Not Subject to Sales Tax Rebates provided to car purchasers by the federal government through its "Cash for Clunkers" program are not subject to sales tax, the State Board of Equalization announced July 29. In a position that has engendered controversy over the years, the board generally holds that rebates are part of gross receipts, and are subject to the sales tax. Taxpayers' advocates have argued that the sales tax should be imposed on what a buyer actually pays, after the rebate is deducted. In this case, however, the board has taken the position that the "Cash for Clunkers" rebate is considered a non-taxable sale to the United States government. Under this new program, car buyers who meet specified criteria can get up to $4,500 toward the purchase of a new vehicle. The rebates are paid by the U.S. Department of Transportation's National Highway Traffic Safety Administration. The BOE explained that the federal "Cash for Clunkers" law expressly provides that the credit is not income for the consumer. LOCAL TAXES: Sales Tax Increase on November Ballot in Ventura The Ventura City Council has voted to put a 0.5 percent sales tax increase on the November 3 ballot. Only one council member opposed the action at the panel's July 13 meeting. The proposed tax hike would set the city's sales tax rate at 8.75 percent. The increase would cost taxpayers $8.25 million to $12 million a year, city officials said, and would remain in place for four years. City Manager Rick Cole presented a proposed spending plan for the tax revenue (at the $8.5 million level). The plan calls for 40 percent to go toward improving public safety; 35 percent toward street repairs, infrastructure and parks; 15 percent to beaches and rivers; 6 percent to the library system; and 4 percent toward "maintaining and building effective community partnerships." August 10, 2009 6 Although the city manager has delineated exactly where he would like to spend the money, the measure is considered a general tax that requires a simple majority vote. A tax for special purposes would require a two-thirds vote of the public. Mayor Christy Weir has been stumping for the tax increase, lining up engagements to speak to business and neighborhood groups. The Ventura County Star reported: "Although the city cannot advocate for the ballot measure or spend public money supporting it, the mayor said she is free personally to press for support and believes it's her responsibility to do so. 'I'm a politician, I can advocate all I want,' she said in an interview, and said talking directly to voters is the best approach." (Source: Ventura County Star, July 15 and July 30.) In other local tax news: No Tax Proposals on November Ballot in San Francisco. Columnist Melissa Griffin writes in the San Francisco Examiner that "despite the chest-thumping, saber-rattling and jive-talking surrounding more than a dozen ballot measures," the San Francisco Board of Supervisors did not place any tax measures on the November ballot before the July 28 deadline. Earlier this year, supervisors had discussed proposals including a car tax, parcel tax, business gross receipts tax, payroll tax increase and sales tax hike. Four non-tax-related measures will appear on the ballot. The measures ask voters to allow the city to sell naming rights to Candlestick Park; limit commercial advertising on cityowned property (Ms. Griffin comments, "That this is on the same ballot as a measure to auction off the name of Candlestick Park will be the most interesting aspect of Election Day."); remove the limit on the number of paid aides that supervisors are allowed (currently two per supervisor); and make changes to the budget process, including moving to a two-year cycle and mandating a five-year financial plan. (Source: San Francisco Examiner, July 30.) Los Angeles City Panel Recommends Eliminating Tax on Film Companies. The Los Angeles City Council's Jobs and Business Development Committee recommended August 4 that the city eliminate a tax on film companies that shoot in downtown Los Angeles. The tax currently generates just $68,000 a year. The panel also asked the city's finance department to create a working group of city departments to review the city's gross receipts tax and look for possible reductions. "We have 20 cities directly on our borders – Burbank, Glendale, Pasadena, Calabasas," Councilman Greig Smith said. "We have to be competitive with them." (Source: Los Angeles Daily News, August 4.) San Benito County Increases "Mosquito Tax," Lays Off Vector Control Specialist. The San Benito County Board of Supervisors voted July 28 to increase the county's mosquito abatement tax, then voted to lay off a vector control specialist assigned to the mosquito-killing duties. The tax hike, which will increase each property owner's tax from $9.80 to $10.08, was approved on a 3-1 vote. The lay-off was approved unanimously. Mosquito abatement duties now will be shared by two workers from the county agriculture commissioner's office. Voters approved the mosquito abatement tax in 2007. (Source: Hollister Free Lance, July 28.) Parcel Taxes and Utility Taxes Added to November Ballots. Local governments have been busy in recent weeks putting new tax proposals on the November 3 ballot. Utility August 10, 2009 7 users' taxes have been placed on the ballot in Coachella, Newark, Palm Springs and Vallejo. Parcel tax measures will go before voters in Atherton, Long Beach, Pacific Grove and Walnut Creek. In Chico and San Mateo, school districts are using tax dollars to ask residents whether they support parcel taxes. The Chico schools hired the Lew Edwards Group, an Oaklandbased firm that specializes in producing campaign-style mailers for local tax measures, to conduct the poll. The firm will be paid $25,500 to conduct a survey with 600 respondents (a cost of $42.50 per response). The district authorized the spending even though, according to a newspaper report, it is "in a period where it must cut to make ends meet." The Lew Edwards Group also has been hired by the city of Coachella for a "communication outreach program" to persuade voters to increase their utility taxes by an estimated $1.2 million a year. In many of the local elections, the ballot language presented to voters is heavily biased in favor of the tax. In Newark, for example, the ballot summary reads: "CITY OF NEWARK VITAL SERVICES MEASURE. To prevent severe cuts to critical Newark city services, including police officers and patrols, crime prevention, anti-gang/drug prevention, fire protection and 911 emergency services, senior services and health programs, programs for children and teens, street maintenance and pothole repair, and general city services, shall the City of Newark establish a 3.9 percent Utility Users Tax for six years exempting low-income seniors and requiring independent audits with all funds staying local?" WASTE, FRAUD & MISMANAGEMENT: Your Tax Dollars at Work Fresno Pays $11,000 to Guard Vacant Homeless Camp. When residents of Fresno's downtown "tent city" relocated to apartments at the city's expense, they left behind abandoned shelters, piles of wood, old clothing and shopping carts. Now, the city is spending $11,000 a month to guard these personal belongings that were left behind. According to city officials, spending the $11,000 is much cheaper than cataloguing and storing belongings, or potentially losing a lawsuit if the city destroys the items. Watching over left-behind items is not a new scenario for city officials. Last year, Fresno settled a $2.35 million lawsuit after a judge determined that the city illegally destroyed personal belongings of dozens of homeless residents. Several days after "tent city" residents were relocated, city staffers allowed former residents to re-enter and remove their belongings. Now, a barbed wire wall has been erected. With the gate locked and under watch, former residents must make an appointment to remove their belongings within 90 days. According to a court order, after 90 days the city may remove all personal belongings and return use of the property to its owner, Union Pacific Railroad. (Source: The Fresno Bee, July 27.) Community Colleges Hand Out Millions in Raises While Eliminating Classes. The Sacramento Bee reports that the California Community College system has been handing out pay raises even as it has been "cutting thousands of classes, reducing hours for partAugust 10, 2009 8 time teachers and forcing students to wait longer to get courses they need to graduate, transfer or get jobs." The Los Rios Community College District, in Sacramento, is cutting 630 class sections this year, but still plans to spend more than $3 million to give employees their annual pay raises of 2 percent to 4 percent based on time on the job. Community colleges in Rocklin, Woodland, Marysville, Los Angeles, Orange County and San Diego also are handing out pay raises. (Source: The Sacramento Bee, July 30.) State Continues Adding Jobs Despite Recession. The Oakland Tribune reports: "California's state government has managed to add thousands of jobs during this past year, defying a mammoth budget deficit and a brutal recession. The job growth for state workers contrasts with the loss of 759,000 jobs in California's private industry in the past 12 months." During the 12 months that ended in June, state government added 3,600 jobs, a 0.7 percent gain. The paper also found that the pace of state government hiring has accelerated in 2009, as compared with 2008. The story quoted Cal-Tax Director of Communications David Kline, who said, "When there is no money left in the till, you should economize and cut back on spending." (Source: Oakland Tribune, August 3.) Modesto School Administrator Paid $190,000 to Resign. On August 3, Modesto City Schools trustees publicly released the details of a settlement with the district's former second-in-command, showing that she will be paid $190,000 to resign. As part of the settlement, Debbe Bailey, who served as deputy superintendent of business services for eight years before she was placed on paid leave in April, agreed not to sue the district. The administrator's problems with the district began after school officials uncovered emails between Ms. Bailey and teachers' union officials. Some of the e-mails were critical of one of the school superintendents, who called the conduct disloyal. Ms. Bailey's last day was July 31, but she will remain on unpaid leave through July 2010 or until she can settle her retirement credits. The district will pay for the settlement through funds in its self-insurance pool for liability claims, officials said. (Source: The Modesto Bee, August 4.) Confessions of a College Trustee Shopaholic. Since January 2008, Peralta College District Trustee Marcie Hodge has charged more than $4,000 in personal charges to her public credit card. Ms. Hodge put the following purchases on her publicly funded card: • • • • $355 at Marshall Rousso, a dress shop at the Venetian Las Vegas Hotel and Casino. $278 at Privilege, another dress shop at the Venetian. $1,763.32 spent on clothing at four New York Look stores in Manhattan. $650 paid to Alpha Kappa Alpha sorority. Other charges included purchases at Best Buy, gift stores in Georgia and Washington, and Coach Leather of Napa. After an account of these expenses was released, Ms. Hodge said the charges shouldn't be a problem for the district, because she paid the bills. She said she didn't use a personal August 10, 2009 9 credit card because, "I didn't know this was going to be an issue." She added: "I ran for the Peralta board to stop waste. I didn't run to live off the taxpayers." On July 28, the Peralta College District Trustees approved a ban on the use of public credit cards for personal purchases. The ban will be added to the district's ethics policies. (Source: Oakland Tribune, July 23.) Court Officials Spend More Than $82,000 to Discuss Judicial Branch Budget Crisis. The Administrative Office of the Courts recently gathered in San Francisco to discuss "The California Judicial Branch Budget Crisis." Conference attendees met and stayed at the San Francisco Hilton. According to a memo, $40,000 was spent on five facilitators, $42,000 was spent on meeting rooms, and an estimated 25 of 70 attendees spent two nights each at the Hilton (at a discounted rate of $138 per night). Also, the memo noted that Judge Brad R. Hill spent the night in the "Presidential Suite." (Source: The Grass Valley Union, July 28.) No Vote Yet on Santa Clara Valley Water District's Gazebo Project. An expected July 28 vote by the board of the Santa Clara Valley Water District (dubbed the "Golden Spigot" by San Jose Mercury News columnist Scott Herhold) on a $1.4 million gazebo project for the Gold Street Education Center in Alviso was deferred. Most likely, the vote was delayed because the "heat" was on. The previous day, Mr. Herhold wrote a scathing column about the project. He called the scheduled vote a "second chance at stupidity" and characterized the project as pure "P-O-R-K." According to Mr. Herhold: "The gazebo has little to do with the Golden Spigot's core missions of providing water or preventing floods. It does, however, prove the real estate dictum of location, location, location. It would beautify a barren lot next to a trailer park owned by a family of a water board member." Water district spokeswoman Susan Siravo said the board asked staff to explore the chances of obtaining grant money for the project. (Cal-Tax: Alviso is a community of about 2,000 people within the city of San Jose, and is located on a slough at the southern end of San Francisco Bay. It used to be an independent city. It is the classic definition of a backwater. It is unlikely that more than a handful of people who live in Silicon Valley have ever visited Alviso, or even know it exists.) (Source: San Jose Mercury News, July 28 and 29.) POTPOURRI: Symposia, Sightings, Salutes & Snafus LA Times Online Readers Support Proposition 13. In a poll on the Los Angeles Times website, readers overwhelmingly answered "no" to the question, "Would you vote to repeal Prop. 13?" On July 28, the poll showed 63.3 percent of the poll's 850 respondents answering, "No, we don't need more taxes," and 36.7 percent responding, "Yes, it has ruined California." While that result mirrors other polls that show Proposition 13's support to be roughly 2-to-1 (the same margin by which the initiative was approved in 1978), the Times poll appears to be less than perfect. On July 30, the paper's website indicated that the poll had just 689 respondents, with no explanation of why the number decreased by August 10, 2009 10 161 responses over two days. With the decreased participation, the poll still showed 61.7 percent of the respondents saying they did not want to repeal Proposition 13. On August 7, the participation level had climbed back to 859 respondents, with 63.6 percent saying they don't want to repeal Proposition 13. (Source: LATimes.com, July 28, July 30 and August 7.) The Sports Page: Lakers Agree to Deal With Star Player, Making State Income Tax Collectors Happy. ESPN.com reported July 30 that the Los Angeles Lakers have reached an agreement with Lamar Odom, and the star player is slated to receive $33 million over four years. The versatile player had been considering an offer from the Miami Heat that would have given him less money on paper, but would have resulted in more take-home pay because Florida does not have a state income tax. Mr. Odom's entire salary will not be subject to California's income tax (which is 10.55 percent for people at his income level), because other states will be able to tax him for income earned within their borders, just as California taxes players on visiting teams when they are here to practice or play against the Lakers, Los Angeles Clippers, Golden State Warriors or Sacramento Kings. Still, even if only half of Mr. Odom's salary is apportioned to California, he single-handedly will pump $3.48 million into the state's income tax collection basket over the next four years. (Source: ESPN.com, July 30.) Assemblywoman Saldana to Run for County Supervisor Against Incumbent. Assemblywoman Lori Saldana announced July 29 that she will attempt to oust Supervisor Ron Roberts from his seat on the San Diego County Board of Supervisors in next year's election. Ms. Saldana, who just voted to strip the county of 8 percent of its property tax revenue, is termed out of her Assembly seat. Ms. Saldana is a Democrat and Mr. Roberts is a Republican. Blast From the Past "With the exception of the corporation income tax, whose yield fluctuates markedly from year to year, every source of General Fund revenue was at least 5½ percent higher in the last-completed fiscal year than in the preceding one. … The increases that occurred in the Franchise Tax Board's collections, as in other recent years, resulted from the State's expanding economy, inflation, and improved enforcement of the tax laws rather than from changes in those laws. … Both inflation and the expanding economy contributed to a remarkable but not unprecedented 9.3 percent gain in the aggregate personal income of Californians." ― Franchise Tax Board Annual Report 1957 August 10, 2009 11