Thursday, August 18, 2011

Associated Press: Governor Brown rejects call for Prop. 13 reforms

Calif. governor not interested in Prop 13 reforms

By GOSIA WOZNIACKA
The Associated Press
Published: Wednesday, August 17, 2011 18:07 PDT
© 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

FRESNO - Gov. Jerry Brown on Wednesday turned down a challenge from the mayor of Los Angeles to reform Proposition 13, saying he would prefer to focus his attention on bringing financial stability to California.

Brown was responding to comments by Mayor Antonio Villaraigosa, who called on the governor and state lawmakers to think big in solving California's ongoing fiscal problems. The mayor suggested the Prop 13 property tax cap be lifted for businesses and left in place for homeowners.

Prop 13, however, is seen as untouchable by many politicians in the state because it is so popular with the electorate.

During a speech Tuesday before the Sacramento Press Club, Villaraigosa urged the governor to convene a commission on tax reform and estimated that gradually lifting the Prop 13 cap for businesses could raise between $2.1 billion and $8 billion a year money the state could invest in education and lower property taxes for homeowners.

Brown rejected the idea after making a luncheon address at Maddy Institute in Fresno.

"I'm not planning to join (Villaraigosa), but I certainly welcome the debate," Brown said. "I will focus my attention on ensuring financial stability and making the state more efficient."

Brown did not offer specifics beyond saying he plans to support a ballot initiative next year for new revenue. He also said jobs would come by generating confidence that California is on stable footing.

One way he might do that is through infrastructure investment.

Brown said he backs California's $43 billion high-speed rail project to connect San Francisco and Los Angeles, despite growing criticism about the project's management and cost. He said he would appoint a commissioner to the California High-Speed Rail Authority this week to fill a vacant seat and work to get the authority "to get their act together."

"I would like to be part of the group that gets America to think big again," the governor said in an interview with The Fresno Bee's editorial board.

Also Wednesday, the governor named retired Bank of America executive Michael E. Rossi as his adviser on creating jobs.

In his Fresno address, the governor defended the austere budget plan he signed in June, decried partisan politics and said Standard & Poor's revised outlook for California was a good sign the state is going in the right direction.

The Wall Street credit rating agency revised the state's long-term ratings outlook from negative to stable after the governor signed the budget.

Anti-tax advocates and business groups have criticized Villaraigosa's Prop 13 reform idea as an attack on small businesses.

The measure can only be changed by a two-thirds vote of the Legislature or through a ballot initiative.

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