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March 2001

The Accountability Files

Spending Tax Dollars
(Editor's Note:
Following are cases where tax dollars have been spent, or misspent. They are generally based on newspaper or government reports.)

Los Angeles Salaries are Tops. A report from Los Angeles Chief Administrative Officer William Fujioka recommends no salary hikes in 2001 for the city's top bureaucrats. No wonder. They already make more than their counterparts in other public agencies across America, and their benefits are better, too. For example, Ron Deaton, the city's chief legislative analyst, gets $239,849 a year, compared to $109,540 for his counterpart in New York City. Police Chief Bernard Parks, at $228,678, makes tens of thousands of dollars more than heads of police departments in other large cities. Mayor Richard Riordan takes just $1 a year, although he is entitled to more than $150,000. The internal city report was covered in January 5 editions of the Daily News and the Los Angeles Times.

San Francisco Pay: Six-Figure Club Grows. Some 1,200 San Francisco employees made at least $100,000 last year, with more than half of them reaching that plateau because of overtime pay, according to the San Francisco Chronicle's February 15 coverage of a city controller's report. San Francisco taxpayers had a $103.7 million bill for overtime in 2000, which is $34 million over budget and up from $63 million in Willie Brown's first year as mayor (1996). And this has occurred despite an additional 4,000 people added to the payroll with Mr. Brown at the helm. Most of those on the OT gravy train: police officers, firefighters, transit workers and sheriff's deputies. By the way, in 1998, the mayor was the 13th-highest paid city "employee." Last year, he ranked 26th at $152,107. The top salary: $194,772 for Public Health Director Mitchell Katz. The leading overtime employee: Muni bus dispatcher Evette Geer-Stevens, who worked more than 2,000 hours for time-and-a-half pay to add $94,288 in overtime to her annual salary of $62,239, according to the Chronicle article.

The Check is in the Mail. The first vehicle license fee (VLF) rebate checks were mailed in January, according to an announcement by Governor Gray Davis. He called them a key element of tax relief in his 2000-01 state budget. They also are creating headaches for some of those preparing income tax returns. A taxpayer who paid a January renewal in December to get full benefit on 2000 taxes will have to remember to make an adjustment for the refund next year when filing for the 2001 tax year. Under a controversial provision of last year's rebate law, the owners of cars pay their VLF, also known as the car tax, and submit a claim for an average $47 rebate, depending on the age and value of the vehicle. The average is based on a 32.5 percent reduction of a $145 license fee. The 32.5 percent reduction is in addition to a previous 35 percent, three-year reduction, which makes the total cut in 2001 fees amount to 67.5 percent. The Department of Finance estimates that $1.764 billion in rebates will be sent out in the 2001-02 fiscal year after checks totaling $866 million are mailed between January and June of this year. The two-year rebate plan, after which the tax rate will merely be reduced, was enacted because Governor Davis wanted the public to be aware of the tax cut. Critics said the rebate program is costing taxpayers up to $75 million. That much would have been saved if the state had merely reduced the fees. A bill to cut the fees 32.5 percent and avoid the costs of rebates died in the Senate last session, but another measure has been introduced in the current session. In a January 22 press release, Governor Davis said, "In the last several years, vehicle license fees have been slashed. We are returning to Californians a share of the prosperity they helped create."

Charger Tickets (Update). Catching up on the continuing saga of waste involving San Diego's contract with the National Football League Chargers for use of Qualcomm Stadium: Final figures for the 2000 season are in, and the city (taxpayers) spent $7.97 million for general admission tickets. That's $1.72 million more than the city collected in rent for the stadium from the Chargers, The San Diego Union-Tribune reported on February 15. As a result of a 1996 stadium expansion contract, the city guaranteed the team revenue equivalent to the sale of 60,000 tickets per game. The deal, including exhibition games, runs through the 2007 season. One of the latest to criticize the deal is Council Member Brian Maienschien: "Money from the taxpayers is going to be raided to spend money on football tickets, which find stupid and offensive." (Maybe not as offensive as the Chargers were last year, winning only one of 16 regular-season games.) While new Mayor Dick Murphy says that while the Charger stadium issue isn't among his top priorities, it "is a serious problem and I intend to pursue a solution " His predecessor, Susan Golding, tried, but to no avail. In 1999, the city spent $6.15 million buying tickets and collected only $5.7 million in rent. (See last November's Cal-Tax Digest for an earlier report on this situation.)

Livermore's Light Bulb. Congratulations to some long-forgotten purchasing manager for the city of Livermore (Alameda County). In 1901, this individual had the good judgment to purchase a three-watt light bulb that is still burning 100 years later in a city fire station. Over the years, this wise purchase has saved taxpayers incalculable dollars in replacement light bulbs. According to the Oakland Tribune, "One of the reasons for the longevity is that the bulb has almost never been turned off. The only time the light has gone out was during power outages and it was turned off for about 23 minutes in 1976 when the fire station moved from First Street to East Avenue. And when the power goes out, a generator keeps it and the rest of the station's power going. The bulb is located at the fire station at 4550 East Avenue, Livermore.

Carmel Mail Service. Apparently the city of Carmel (Monterey County) is so flush it can afford to pay for mail service that the U.S. Post Office will deliver for free. On January 9, the Carmel City Council gave a green light to a contract with a private courier for those who want it delivered from the post office to private residences. Cost to taxpayers: $36,000 to 100 residences and $84,000 to 200 residences. The U.S. Post Office said it will deliver the mail for free as soon as the city allows for street addresses and mailboxes. To maintain its quaint (some call it quirky) character, the city does not permit street addresses or mailboxes.

 

 

 

The leading overtime employee: Muni bus dispatcher Evette Geer-Stevens, who worked more than 2,000 hours for time-and-a-half pay to add $94,288 in overtime to her annual salary of $62,239...