KTLA News: "Governor Jerry Brown and Tom Bradley discuss implications of Proposition 13" (1978)

[KTLA Reporter Stan Chambers] The meeting lasted a little over an hour. The consensus seemed to be that even if Proposition 13 passes, [Chambers] no one was interested in opposing new taxes. [Chambers] The governor said people are feeling the initiative is saying to government that we curtail taxes. [Chambers] He said the current state surplus could restore about half what the schools and counties would lose if Proposition 13 is approved. [Governor Jerry Brown] Well, what we're talking about is, ah, Leo McCarthy suggested about two and a half billion, ah, to [clattering noise off camera] be sent to the cities and counties, and the school districts. That would provide, ah, very little. In other words, if the schools lose three billion, ah, we might be able to help with half of that. If the counties lose a couple of billion, maybe we can have help with about a half of that. But for the cities because they do have other, taxing sources and because our obligation to the school districts and the counties is of a statewide character we have to, ah, place a greater amount. So it's a very difficult, ah, cutting process. It is not, it is not a very pleasant reality, but it's the one we will have to live with. [Reporters interrupt and talk over each other] [Mayor Tom Bradley] Let me just speak for the cities when you talk about only a hundred million dollars, ah, to make up the loss for four hundred cities in this state. Ah, that's going to be catastrophic. Los Angeles alone loses over two hundred and thirty million. Ah, there's just not enough money there and we're going to get, make the best of it. We're gonna have to cut where we can. [Chambers] Most of the county officials attending the meetings thought the session was a good idea, [Chambers] airing some of the real problems that 13 promises. [State Legislator] I would not support new taxes and I didn't hear any legislator that would be willing to, ah, support new legis, ah, taxes. I think it was our consensus that the state legislature is not going to pass any new taxes. The counties are not going to pass any new taxes. And the cities are not going to pass any new taxes. And that we're going to have to live within, ah, existing revenues. [Chambers] This is only the first of many such meetings at different levels of government, as officials get ready to handle the problems, if Proposition 13 passes. Stan Chambers, Channel Five News Watch, reporting from the Mayor's office at City Hall. [Ambient room noise, unintelligible conversation, footsteps] [Door shuts] [Ambient room noise, unintelligible conversation] [Unidentified voice] I'm confident, that we will survive. [Chuckles] [Unidentified voice] this type of Olym, Olympics, they're not willing to accept a mob, [Laughter] [Ambient room noise, unintelligible conversation] [Unintelligible conversation] [Brown, Bradley, unintelligible conversation] [Microphone hum] [Brown] Good morning. [Greetings exchanged, unintelligible] [Unintelligible conversation] [Brown] As you know, I, very strongly urge the people of California to defeat Proposition 13 and vote for Proposition 8. [Brown] It is going to present some very painful choices, [Brown] which the majority of people will be surprised to see. But given the overwhelming lead, it is my job to prepare, [Brown] for the eventualities that 13 does become the law. As the Chief Executive, I will carry it out. [Brown] I came today to meet with representatives of the county, the city and the schools to bring some rather, [Brown] distressing and very painful news. We have to work together. This is the, [Brown] greatest, financial challenge ever faced by a state government, at any time since the Great Depression. [Brown] We will do our best. It will not be easy. And I'll need the cooperation of all the people who will be affected. [Reporters talk over each other] [Brown] Well, I'll let the Mayor respond, [Reporter] Mayor Bradley, what is the distressful and painful news that Governor Brown has alluded to? [Bradley] Well, the fact that, with the anticipated surplus in Sacramento, [Bradley] ah, being the only source from which we may expect any money. In other words, no new taxes. [Bradley] We see no prospect for new revenues at the city or county level. And that means that an inadequate amount of money, [Bradley] from Sacramento in terms of the budget surplus, has to be divided three ways, between the counties, the school districts, [Bradley] and the cities. [Bradley] ah, determine yet exactly how much we're going to get of that surplus. [Reporter, interrupting] Mayor, [Bradley, loudly] But, at best, [Bradley] it's going to mean, drastic cuts. And we've already prepared our, our, so-called Jarvis budget. That will be going forward to the council. [Reporter] You said a hundred million, for ah, four hundred cities. Did you misspeak with that? [Brown] Well, what we're talking about, [Reporter] Are we specifically going to have these drastic cuts, that's what people want to know. [Brown] Well, we'll, certainly we can start at the state level by trying to look at the parks, ah, cut those back. We can try to, ah, look at salaries. We can look at cost-of-living increases. We can try to defer programs, buildings, maintenance, all the things that may be in the budget. It's going to be very difficult. For the most part, we are going to provide a formula for local government, and they will have to make the hard choices. We only have two weeks. If the people vote for 13 on June 6, we must have our decisions made within two to three weeks. And that will require a simple, formula, that will commend itself to two thirds of the legislature. So that means, that all we will be able to do is to give a portion of what was there. Maybe it will be on a fifty, fifty basis. If the, if the, ah, local governments had twelve billion in property tax. Maybe we can give them seven twelfths of that, or maybe eight twelfths. And then they will have to allocate, [Brown] how to share the burden of that four to five billion dollar loss. [Reporter, interrupting] Why not a consideration of new taxes? That is the general impression, of legislative leaders in Sacramento. And, and I found it here. Although not universal, to be a very strong feeling at the local level. People are feeling that the Jarvis Initiative is saying to government, sharply curtail. But maybe you'd like to talk to the, to the schools or the counties. [Reporter interrupts] Do you call this crisis management? [Brown] No, I'd call it, ah, managing with the reality. In other words. We have to prepare early. The voters may still turn down 13. I really think that it is a human tragedy. If, hundreds of thousands of people are laid off to give corporations, tax breaks. Because what's going to happen is our surplus will pretty well cover the cost of the homeowner relief. And then to pay the corporate relief which will cost about four billion, that's going to come from layoffs. [Reporter tries to interrupt] Did you say, [Brown] And I find that a real human tragedy. [Reporter] You said earlier, [?] [Brown] That's correct, and we've been, ah, receiving, ah, financial analysis for several months now. But now comes the moment when we must translate the the bureaucratic analysis into hard choices, at the policy level. [Reporter] Mayor Bradley, what about the importance of [?]. Is that considered a viable alternative to [Bradley] It's not yet clear that the City of Los Angeles can adopt such a measure. But I see no strong inclination to do so, even if it is legally possible. Ah, the, the mood, the atmosphere among members of the council with whom I've spoken is that they're not going to enact any new revenue measures. We're simply going to cut. [Reporter] You said something different to longtime supporters [?]. [Bradley] Yes, that's because we thought we ought to have some alternatives to the property tax. And we felt that if we could have enacted those measures some time ago, [Camera noise] [Unidentified voice] ah, what is proper appropriate, [Unidentified voice] moral or even possible? We're going to have to feel our way and the democratic process means, incrementally exploring the, [Unidentified voice] If you go on you will find the proper moral, [Chambers over other reporters] This is only the first of many such meetings at different levels of government by officials, to prepare the way in case Proposition 13 passes. [Phone rings in background] Governor Brown said that if Proposition 13 is approved by the people, he will implement it at the very start and work on it, [Ambient room noise, unintelligible conversation] [Unintelligible conversation] [Reporter] length of time, would you, [Reporter] Olympics pay for itself and if that's the spirit of it and there's no possibility, [Camera noise] [Chambers] What was your reaction to the session there this morning? [Unidentified Legislator] Well, it was constructive. I felt that it is appropriate that state, county and city officials get together and start doing some planning for, what, how we would all, physically, mechanically and politically carry out, ah, the implications of Proposition 13. And I was, I thought that the Governor and the Mayor were, constructive in bringing us together to start thrashing out, what our individual problems would be and how we would handle the whole thing administratively, within the limited time frames that are available. [Chambers] If Jarvis passes, do you see new taxes? [Legislator] No, I do not. It's Jarvis. And nobody quite knows that. And how would you allocate what's left over? That is how will you allocate what property taxes are collected? Nobody knows that either. And then how will you distribute the state surplus? Nobody knows that. So the more we talk about it, the more we plan on it, the more prepared we are, the more responsible you are. It's like any other budgetary process. You plan it in advance. You don't fly by the seat of your pants. This was a responsible meeting and I'm glad that it was called. [Chambers] Will there be the drastic cutbacks that have been announced? [Legislator, clears throat] There will be substantial cutbacks, ah, what seems to someone,