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Jon Fleischman

Is the Los Angeles Times trying to hatchet the Governor?

On the main page today, I link to this article by Evan Halper of the Los Angeles Times in which is excerpted here:

Administration officials are soliciting advice from business groups and other special interests on how to propose billions of dollars in tax hikes that could help close a budget shortfall the governor now says is as large as $20 billion.

Schwarzenegger’s staff is exploring a range of options, including sales taxes on lawyer and accountant services, on high-end services such as golf lessons and personal-trainer sessions, and on takeout coffee and other prepared foods that are not taxed now.

The administration’s goal, participants in the discussions say, is to gather support for new taxes from a broad spectrum of the business lobby, giving the Legislature’s Republicans political cover to break their pledges never to vote for them.

Several lobbyists and state officials involved in the meetings agreed to talk about them on condition of anonymity, for fear of antagonizing the administration. They say talks have heated up as the governor prepares his revised budget plan for release May 14.

That plan will reveal how large the deficit has grown in recent months — a number that state accountants are still calculating as they sort through April tax receipts. Schwarzenegger’s staff is advising the interest groups that the governor is prepared to call for a tax increase if California’s finances have darkened considerably.

Administration press secretary Aaron McLear would not comment on what had been discussed in the meetings.

"The governor does not support raising taxes," McLear said. "I can’t comment on private meetings and who we have talked to internally."

McLear said: "Everybody knows the deficit will be bigger than it was in January. . . . We’re preparing for every different scenario."

At the meetings, according to those who have attended, administration officials are asking interest groups which taxes might be acceptable — and what the administration should demand in return from the Democrats who control the Legislature.

Of course, when I read about this, I started to feel my blood pressure rise.  Such meetings, I would say, would be a precursor to a potential shift in the Governor’s position against tax increases.  Given his flip flopping around from his 2003 positions, I think it would be fair to say that I have cause to be concerned.

But rather than jump the gun so to speak, I dropped a note to Matt David, the Governor’s Communications Director, who assured me that the Governor’s position continued to be one of opposition to raising taxes.  I pressed back, trying to ascertain if the meetings described above really took place.

Matt then called me, and since I was in front of my computer at the time, and am a touch typist, I can tell you that this part of our conversation is quite accurate (and was on the record – we actually went “off the record” right after this exchange to chat further):

Jon: "So the meetings described in the LA Times piece did not occur?"

Matt: "That’s right."

Jon: "Matt, let me make sure I get this right, because what you are asserting is a bit controversial.  You’re saying that the L.A. Times has this story wrong?  The meetings did not take place?

Needless to say, I was thrilled to hear this was the case.  My blood pressure returned to normal at that exact moment!

I then added this text below the link to the LA Times piece which I featured atop FR’s main news page:

This startling article by the LAT asserts that the Governor’s staff is holding meetings, to look at a lot of different potential tax increases. We contacted the Governor’s office to give them a chance to deny that these meetings are taking place (we’re dubious about the LAT sometimes) and Matt David, the Governor’s Communications Director was very clear – they are not. Of course, if you read this linked Los Angeles Times story, there are no named sources confirming these meetings. Presumably the LAT is following some sort of journalistic standard, with their background sources. But what we now have is an assertion by the Times that the Governor’s staff is holding meetings to discuss tax increases, and a flat out denial from the Governor’s office. So, Los Angeles Times, step up and prove it.

Just to be extra-sure, I e-mailed Matt my main page coverage text with a note saying to let me know ASAP if I got this wrong – and haven’t heard anything back — and as of posting this commentary, it’s been a couple of hours (this from someone who lives by Blackberry – actually, that describes the whole staff in the Governor’s office!).

That said, it does make for a curious circumstance.  L.A. Times reporter Evan Halper is pretty specific in his story, and David was very specific with me.

We’ll see how this develops – but I for one am pleased that, according to the Governor’s office, they are not holding meetings with outsiders to discuss potential tax increases.  That’s good because such meetings would certainly undermine the Governor’s position – that we have an overspending problem, that should not be solved by socking it further to California taxpayers.

Care to read comments, or make your own about today’s Daily Commentary?

Just click here to go to the FR Weblog, where this Commentary has its own blog post, and where you can read and make comments.