Imperial Valley press., 1933-02-27
LEGISLATURE FACES GRAVE
SITUATION At NEW SESSION
Need Of Adjusting Taxation And Reducing
Expenses Apparent AS Second Half Of
Session Opens Al Sacramento Tomorrow.

vestigation committee after weeks
of sensational hearings has ad-
journed subject to call of the chair
man. The road is clear IOr nard
work.
Prohibition referendum will be
brought to the forefront immedi-
ately. Governor Rolph will submit
a special message to both houses.
1t will request prompt action be
taken to set up the necessary ma
chinery to convoke state conven-
ton on the proposed 21st amend
ment for repeal Of the 18th amend
ment to the federal constitution.
But taxation overShadoWS all
other questions. Such problems as
, unemployment relief, water re-
sources and others must take a
back seat for the time being, leg
islators said.
All factions agree on what should
be accomplished. Not only must
the existing $9,5OO,00O general fund
deficit be wiped out but state out
lay curtailed so that this deficit
shall not increase. At the present
rate it would be Approximately $780,
100000 at the end of the next BIZ
ennium, records of the state con-
troller's office show.
Prompt Action Necessary
If the legislature is to alter the
state tax system and avert threat
ened bankruptcy" at the close of
the present biennium, it must act
within the forthcoming week. The
first Monday in March" is the dead
line, according to the state con-
stitution.
Consequently. the senate and as
sembly committees on revenue and
taxation will meet jointly Tuesday
night to consider bills which seek
to equalize taxes by increasing the
levy on public utilities.
1t is the how of the taxation
that complexities the taxation is
sue. The legislature has been fer
tile in ideas There is a motley ar
ray Of bills but little agreement on
ways and means of accomplishing
| the common purpose, it was point
ed out.
Unless some solution is promptly
found, the state is faced with an
ad valorem tax on every type of
property on an equal basis.
The Rolph administration bud
get balancing plan has not been
welcomed by the legislature. It's
provisions of diversion of state
highway funds, reduction in old age
pension and tuberculosis subsidies,
reduction of fixed charges for
school support and a provision en-
abling the state Of borrow from
the permanent scool fund, have
| met with widespread opposition.
Favor Riley Plan
The Riley-Stewart plan-a mea
sure which proposes abandonment
of the separation of sources" tax
system of California, enacted in
1910-will receive considerable sup
port, many state officials believe.
1t provides for a gross income tax
! on personal and business incomes
over 1000; limiting to so per cent
the proportion of costs of govern
ment to be borne by. real estate;
returning of $1,000,000,00O to ST.
500, 100000 public utility corporation
property to county rolls for local
taxation.
1t would also relieve counties of
requirements that they match the
states $50 per pupil subsidy to ele-
mentary. schools, double the states
$50 contribution to high schools
and limit to five per cent the an
nual increase in state and local
taxes.
Other proposals, including as
sorted sales taxes, are under con-
sideration
Kindred to the tax raising ques-
! ton is tax saving. This issue is
largely dominated by the senate
fact finding committee headed by
Senator David Bush, Oakdale. This
committee has recommended dras-
tic curtailment of state govern
ment. -Four hundred bills incorpor-
ating its findings have been intro
duced in the senate