 Davis as tax collector? By Jim Sams SACRAMENTO -- Democratic lawmakers were working behind the scenes late Thursday to pass 11th-hour legislation that would give Gov. Gray Davis more control over the Franchise Tax Board, an as-of-yet independent panel that oversees the collection of $30 billion in annual income taxes.
The new appointees could effectively neutralize state Controller Kathleen Connell and Board of Equalization member Dean Andal, who would form a majority on the three-member tax board if Andal takes a seat as scheduled next year. Although Andal is a Republican and Connell a Democrat, both are independent-minded government-waste watchdogs, said Ron Roach, spokesman for the Taxpayers Association. Taxpayers Association President Larry McCarthy said the public won't support putting the top executive in state government in charge of the agency that collects revenues for state programs, and that's why legislative leaders were rushing to get the bill through on the last full day of this year's session. "This is something that could not stand the light of day, and it's happening in the last 24 hours of the session," McCarthy said. "It is the legislative process at its worst." Sen. Charles Poochigian, R-Fresno, said the Democrats were gutting an existing bill that had stalled in committee and replacing it with language that would add two members to the tax board -- the state treasurer and a public representative that would be appointed by the governor. Senate President John Burton, D-San Francisco, confirmed that such legislation was being drafted, although he said he didn't know the details. He said Davis asked for the legislation because of news reports about inefficiencies within the Franchise Tax Board's 5,000-employee bureaucracy. "The governor felt that having a public member on it would make a great deal of sense," Burton said. But Davis' press secretary, Michael Bustamante, said he isn't aware that the governor asked for any legislation to change the makeup of the Franchise Tax Board. He said Davis was boarding an airplane Thursday afternoon and could not be reached for comment. Both Andal and Connell said there's no reason to rush a decision on a major public-policy issue. "A change of this magnitude that will have a major impact on the business community and customer service for taxpayers deserves thoughtful review and should be based on the merits of the proposal and not the politics of the moment," Connell said in a prepared statement. Andal said the proposal would effectively put the Franchise Tax Board under the control of the governor, a bad idea no matter which party holds the office. One of the current three board members, Finance Director Tim Gage, is a Davis employee. The proposed public representative on the board would also be appointed by the governor. Andal said adding Treasurer Phil Angelides to the board may make sense, but if he owes his position to the governor he'll also be beholden to the executive branch of state government. Andal said when he was a state Assembly member, he also opposed a bid by then-Gov. Pete Wilson to replace the Franchise Tax Board with a Department of Revenue that would have been under the governor's direction. "Governors are always going to want more power. That doesn't mean you should give it them," Andal said. The legislation had not been introduced to the Assembly or Senate floor late Thursday, but the taxpayer advocates said they expected to see it presented in the form of amendments to a defunct bill that would likely be heard late Thursday night or early Friday morning. Even Assemblyman Michael Machado, a Linden Democrat, said he didn't like the way Democratic leaders were working behind the scenes. "I think we should take a look at expanding the Franchise Tax Board, but I think it should be done in the sunlight," Machado said. |
