Portland observer., May 18, 1978, Page 3, Image 3

I
Portland Observer
The taxpayer's revolution
8AN FRANCISCO (PNS) - Jim Rob-
•rta , a barber with a shop here and a
•107.000 home in nearby Marin County,
P*7 » 6 866 a month to live inhie own house
- 1886 in mortgage and 1170 in property
U x . Not to mention utilities.
“I couldn’t make it if there weren't
three of ua working." he aayt, "me, my
»lie and her sisters. We split everything
three ways.
"But still at the end of the month I ’ve
only got $00 to |7 0 in the bank, out of an
income of $1200 to $1500. I ’m going to
vote (or Jarvis-Gann. I can’t make it
otherwise."
Jarvis-Gann is the name of a contro­
versial California initiative that would
virtually eliminate the property tax as a
serious source of revenue. The proposal
rides the crest of what is perhaps the
most determined tax revolt movement in
the country - and comes at a time when
property tax relief is growing as an issue
nationwide.
Last year twenty-three states author­
ised property tax relief of some kind, and
relief is currently a hot issue in areas
including Maryland and the District of
Columbia.
" If something like Jarvia wins in
California, it's bound to give impetus to
thoee who are worried about substantial
annual changes in property tax else­
where,’ says John Behrens, property and
public finance specialist with the U.S.
Bureau of Census.
“Jarvis-Gann is only the first of the tax
revolutions, not the last," contends form­
er Loa Angeles police chief Ed Davis, a
conservative who wants the Republican
nomination for governor. "There's a
property tax revolt out there and it’s
going to spread around the country."
While JarvisGann would alleviate only
one part of Jim Roberts' total tax
burden, he and California's four million
other homeowners - who with their
spouses form a majority of the state's
voters - would clearly benefit from the
initiative. California property taxes have
risen up to fifty per cent each year for the
past three, and many homeowners are
determined to let the government know
they resent the rises.
The catch to that such taxes, assessed
by local governments, draw in nearly as
much money as the state does from
general taxes ($10.4 billion compared to
$13.2 billion last year) and pay for local
services including schools, welfare, police
and fire protection.
Jarvis-Gann would reduce the take by
two-thirds and presumably cripple such
services unless new state taxes, increas­
ing the burden on the propertyless, were
introduced.
"The iasue really to. dc you want to
reduce the level of service?", says Marin
County Auditor Controller Michael M it­
chell.
State Superintendent of Schools W il­
son Riles has estimated that paasage of
the Jarvis plan would mean a cut in
school budgets in cities like San Francisco
and Oakland by as much as 40 to 50 per
cent unless other, new taxes are raised.
Hidden in the support for Jarvis-Gann
- named for conservative activists How
ard Jarvis and Paul Gann, who organised
the initiative - is the conservative back-
of the 70s against such public
especially welfare.
And the Jarvis-Gann bill ignores one of
the main underlying problems, a Calif­
ornia housing shortage that has driven up
prices to astronomical level« in many
regions.
In fact, according to some economists,
Jarvis-Gann to likely to drive prices up
even higher by making house purchases
more attractive without increaaing sup­
ply. W ith no new taxes, holding land for
speculative purposes would continue to
be attractive. Continued presaure on the
housing market would also be likely to
increase demands now surfacing around
the state for rent control, decreasing
incentive to build apartments.
While no one knows whether Jarvis-
Gann will pass, it has so alarmed the
California establishment that it has unit­
ed behind a counter-measure to be
offered as a rival on the June 6 primary
election ballot.
The Behr bill, named for its titular
author. State Senator Peter H. Behr,
would cut property taxes for home-
owners by a third and put a freeze on
both revenue rates and spending in order
to hold the line. The hill passed the
legislature and was signed by th gover­
nor in early March. But it still requires
voter approval in initiative form, since an
amendment to the state constitution is
involved, plus the defeat of Jarvis.
Like Jarvis, Behr relies on the exist­
ence of a $3 billion surplus in the state
treasury, a unique California possession
accumulated by the parsimony of gover­
nors Reagan and Brown, as well as what
looks now like over taxation. Behr would
use thia money and surpluses expected
over the next five years to make up $1.4
billion a year in lost property tax
revenues to local governments.
Behr would be much less expensive
than Jarvis, expected to eliminate $8
billion of next year's anticipated $12
Endorsed by the Portland Observer
Re-elect
JIM CHREST
"Working With You - Working For You"
Endorsed by:
Oregon Journal
Oregonian
Willamette Week
St. Johns Review
• only incumbent legislator endorsed by Oregon
Assembly of Black Affairs
• endorsed by Oregon Women’s Political Caucus
• endorsed by Oregon League of Environmental
Voters
• endorsed by nearly every major labor organization
in Oregon:
Oregon AFL-CIO, Coalition of Labor Union Women, Oregon
Machinist Council, United Transportation Union, United
Steelworkers,
Oregon
State
Employees
Association,
Amalgamated Transit Union, Joint Council of Teamsters No.
37, ILWU, Portland Association of Teachers, Oregon Education
Association, United Auto Workers
Oregon Journal: "Crest is a hard worker, does not knuckle under
to controversty and is among the leadership trying to keep the state
moving fo rw a rd . . . The needs o f the state are better met by the talen­
ts offered by Chrest. "
Willamette Week: "Jim C h re s t. . . works hard . . . a solid ad­
vocate f o r the working man and woman. M o re than that, he can smell
a n t when one exists, as h u efforts to call attention to abuses in the
O L C C have demonstrated. "
8t. Johns Review: "W hite opinion polls show government o f­
ficials suffering a decline in credibility, Jim Chrest is at least one who
proves public officials can be trusted. . . Becaue o f his record o f
working with the people and actively representing the position o f his
electors, the Review fu lly supports Jim Chrest f o r re-election as State
Representative, District IS. "
Portland Observer "H is ability and desire to work with the
people are supplemented with the détermination and independence to
use h u talents f o r the benefit o f hu d u trie t. "
till
N XjmeeH. sememi. Orafo» t r e u .
r<xn
In Oregon
The Jarvis-Gann measure is of special
concern to Oregon because a similar
petition is now being circulated that
would restrict the property taxes that
could be assessed against Oregon prop­
erty.
Monday State Senator Victor Atiyeh, a
Republican candidate for governor, pro­
posed that taxes on residential property
be limited to 3 per cent of the fam ily’s
income.
He support* the idea of an “equity tax”
that would be baaed on a certair percent
age of the person's income and that tax,
in effect an additional income tax, would
provide funds tor local government and
school districts.
Atiyeh said he to emotionally support
ive of efforts to lim it the property tax but
does not believe local governments could
cut spending by the degree that would
require.
F ü llt
Trojan plant
called unsafe
Pollard, a nuclear reactor engineer who
was project manager for the Nuclear
Regulatory Commission and worked for
its predecessor the Atomic Energy Com­
mission. reviewed electrical aspects of
safety systems at Trojan before the plant
went into operation. He was contacted by
the Trojan Decommissioning Alliance,
which asked him to provide an assess­
ment of D B A sequencer problems at
Trojan.
"DB A sequencers are a critical piece of
equipment vital for starting safety sys­
tems if there is an accident." Pollard said.
“All safety devices cannot be activated at
once or there would be an overload of the
electrical system, so sequencers are used
as a timing device for sequential activa­
tion of safety components.” He said that
at Trojan “time and again there have
been problems with the sequencers but
PGE never took anything other than
stopgap measures to remedy the situa
tion. The sequencers are basically un­
reliable components.”
W ill babysit in my home. Any age,
anytime. 26« 1466, 16001 N .E . Halsey.
Apt. 18.
proposal limits property tax
percent of fair market value.
CITY COMMISSIONER
POSITION NO. 2
FOR BETTER CITY MANAGEMENT
Arnold Biskar will bring 30 years of experience
as an accountant, CPA, and management advi­
sor to the City Council. Today, more than ever,
our municipal government needs this valuable
business experience.
ARNOLD BISKAR BELIEVES IN:
PROGRAMS — End duplication of services.
Cut administrative overhead. Set priorities for
services based on needs of citizens. Make better
use of existing facilities.
■ Portland Budget Task Force, Public Affairs
1976-77
■ Portland Budget Task Force for Bureau of
Traffic Engineering and Bureau of Neighbor­
hood Environment, 1977-78
NEIG HBO RHOO D ASSOCIATIONS - Expand
citizen participation in proposals concerning
their neighborhoods, such as park levys.
■ City Council appointee to Portland Hospital
Facilities Authority
■ Oregon Accountants for the Public Interest
DOWNTOWN HOUSING — Create a proper mix
of housing and commercial development in the
downtown core for a broad range of income
groups, from students to senior citizens.
■ Oregon Society of CPAs
■ Board of Directors, American Red Cross,
Oregon Trail Chapter
■ Board member. Young Audiences of Oregon
H U M A N R IG H TS — Elected officials have an
obligation to provide leadership in equal rights
and affirmative action programs.
■ Portland Chamber of Commerce, member
Cultural Resources Committee
SENIO R C IT IZ E N S — Stop present duplica­
tion of administrative functions. Utilize funds
for direct services. Hire a senior advocate to
represent seniors.
■ Board member and treasurer, Portland Ballet
Society
■ Portland City Club
ARNOLD BISKAR IS ENDORSED BY:
P O R T L A N D ’S L IV E A B IL IT Y - Control city
growth. Attract clean industry if it will really
provide jobs. Preserve green space. Make bet­
ter use of parks and waterways.
■ Oregon Journal
■ Multnomah County Democratic Central
Committee
• Oregon Women's Political Caucus
■ Portland Town Council
■ Citizens for Good Metropolitan Government
■ Willamette Week
CIVIC AND GOVERNMENTAL
EXPERIENCE
Arnold Biskar’s experience includes active par­
ticipation in many civic and governmental acti­
vities.
■ Portland Observer
Elect A rn o ld Biskar C o m m ittee / P .o . B ox 5 9 2
P ortland , O R 9 7 2 0 7 / Roper Q . Paul, Treasurer
Re-elect Wally Priestley Representative
Democrat District #16
^
ìì ÀS d
NEW SPAPER END O R SEM ENTS:
• C O M M U N IT Y PRESS
• PO RTLAND OBSERVER
W ALLY PRIESTLEY
FOR REPRESENTATIVE
DISTRICT #16
DEM OCRAT
S
S
Oregon Consumer League................... 100%
Oregon State Council ol
Senior Advocates....................... EXCELLENT
Oregon Environmental
Council................................................... 100%
Oregon Women's Political
Caucus................................................... 94%
Common Cause................_ .................. 90%
AFL-CIO................................................. 84%
Re-Elect
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1. S treets ft T ra n s p o rta tio n
Ivancie recognizes that street maintenance is a top
priority problem He strongly supports direct
citizen input and continues to demand increased
street repair, maintenance, and cleanliness.
Ended 40 years of talk Built the 17th and Powell
underpass.
A nuclear engineer who served as a
federal inspector of safety systems at the
Trojan nuclear power plant says recur
ring problems with a control device at
Trojan indicate that the plant is relying
on “basically unreliable components" to
fulfill safety functions.
Robert D. Pollard, a reactor engineer
who reviewed electrical safety systems at
Trojan during federal licensing inspec­
tions, said in a statement released Mon
day that Design Basis Accident sequen­
cers at Trojan - critical equipment for
starting safety systems in order and
preventing overload of circuits - lack “an
Adequate prototype program developed
to determine reliability.”
Pollard said that “if PGE can't handle
this level of problem, there to no chance
they can run the plant safely."
To late to classify
The initiative now being circulated
BISKAR
better management of government
Helped sponsor the petition to let the people vote
on the Mt. Hood Freeway/Tfansitway.
2. A Safe C ity
Police and Fire Departments with manpower and
equipment to make Portland's streets, parks, and
homes safe for residents and visitors.
X E d u catio n
Frank Ivancie has a Master's in Education He
speaks from expenence as a teacher and school
administrator, as weU as a parent “Schools should
concentrate on the basics Our neighborhood
primary schools must be kept open '
4. Taxes
\
Page 3
would lim it property taxes to 1.6 per cent
of assessed evaluation. The California
ARNOLD
• w
Democrat - North Portland - Dist. 15
I G»«« COOMMM
billion take, because it would not reduce
taxes on commercial properties - such as
apartment buildings, factories and office
buildings - which provide two-thirds of
property taxes. Commercial property has
accelerated in value much less rapidly
than homes. Thus, the prime benefici­
aries of the Behr bill would be the
homeowner, while the Jarivs plan would
mainly benefit owners of income produc
ing property who would receive an
estimated two-thirds of the tax break.
"We felt the people of this state and the
property owners of this state deserved a
rsponsible alternative,” says Don Wied-
mann, head of the California Association
of Realtors, whose powerful lobby shaped
the Behr bill to its present form.
“Now they've got a choice," he adds.
“Do they want 30 per cent with no new
taxes, or do they want 60 per cent and not
know where the rest of it ’s going to come
from?
Wiedmann's association to part of the
surprising coalition that has formed be­
hind Behr, ranging from the legislature
through the governor to organized labor
and big corporations, including the Bank
of America.
I f nothing else, jarvia has illuminated
the nature of the establishment in Calif­
ornia, which clearly feels its intersts -
either in the form of stability or avoiding
new special taxes - to be threatened.
But both measures have a number of
things in common. F irst, their dual
existence means that rebellious taxpay­
ers have already won the battle before it
is engaged at the polls. E ith e r way .their
property taxes will drop.
Both can be seen as little more than a
simple raid on the treasury. The only
question is, how big «rill be the spoils?
Neither makes real provision for rent­
ers. Although under Behr they would be
able to deduct $75 from state income
taxes instead of the current $37, the
owners of rental property would continue
to pay the same high rates as at present -
and presumably pass them on to their
renters.
Both measures would reduce local
autonomy by increaaing state control
over local government finances.
And both proposals would fail to deal
with the critical housing shortage.
“U n til you do a total turn-around as it
relates to the availability of the supply,"
says DonWiedmann, “you will not correct
the high price of housing."
Thursday, May 18. 1978
Believes city government must live within its
means Demands a no-nonsense budget with no
frills
Opposed new taxes sales tax, overlapping
city-county taxes
Thl* inlormatlon «ras psM lor by Por Manden ol me Re Elect Frenlr Ivancie Committee James Lonergan heaaurer
to
one