by Jack Lee
SPECIAL EDITION – Chico’s Financial Crisis
Since 1970 the City of Chico has had a telephone users tax. In 2012 the City proposed Measure J that broadened the definition of what a telephone to include telephone transmissions from any device and this specifically imposed a new tax on cell phones. The proponents argued that the defeat of Measure J would cost the City about $900,000 in revenue and force layoffs of police and fire. Measure J did not pass.
Prior to the election City Councilman Scott Gruendel argued the tax would amount to about $30 a year per phone user, however his formulation is suspect since the entire population of Chico is only 86,187 and this represents a mere 10,400 households. If you consider that about 23,000 of us own cell phones that would be $690,000 in additional taxes… if the measure had passed. Good think it didn’t pass and here’s why:
The City Telephone User Tax amounts to an illegal double tax since we are already paying a federal excise tax on telephones. Telephones are controlled exclusively by the federal government and the question came up, do cities like Chico have the right to tack on a local tax to something that was federally regulated and taxed. Based on a lower court decision in California, it appears the City of Chico has been collecting an illegal telephone users tax since it’s inception in 1970. That raises the next problem, how far back can a City like Chico be held liable for a refund of illegally collected taxes and where would that money come from?
The legal precedent is, 3 years for retroactive refunds for an illegal tax. (See Howard Jarvis Ass’n v. City of LaHabra 25 CAL 4th 2001 and Section 338(a) of the Ca. Civil Code of Procedure. The Supreme Court ruled the time period within 338(a) was applicable, but a continued violation could extend that retroactive time limit. Continuing illegal taxation is deemed a new violation and not subject to 338a 3 year rule and that leaves the refund period open ended.
The City of Chico is facing the very strong possibility of being forced to refund millions of dollars in illegal telephone users tax. Even if this was limited to 3 years, that would force the City into being liable for a huge un-payable debt because they simply don’t have the money. If this retroactive debt is imposed their only way out is to seek protection in bankruptcy.
Exactly what the City proposes to do about this dire situation is still unknown, the rumors are more layoffs to police and fire…8 positions to be exact. However, as of this date the City has not posted the Agenda for the next Council meeting on Dec. 4th. It was due out by the close of today, however it’s not expected to be made public until sometime tomorrow, then we will know if this is even on the agenda or if it will be more global warming resolutions.
You can bet that essential services will be hit first. The downtown after dark will turn into even more of a scumbag paradise of shootings, knifings, armed robbery, rape and murder. This is what you get when you elect left wing liberals more concerned with ineffective, empty and ridiculous enviro-gestures that do nothing except to line their own pockets and the pockets of their cronies.
Evidence — Self serving system manipulator and public trough ripoff Randall Stone wins a seat and will be as much of an asset as the Schawbinator. You get what you vote for.
Why don’t they layoff some of the useless administrators first? There are way too many “chiefs” at City Hall, and not enough “Indians” doing real work.
Take a look:
http://www.ci.chico.ca.us/document_library/departments/human_resources/CityEmployeesbyDepartment.pdf
I really, really don’t get it. Why should you be complaining about emergency services layoffs … when you are promoting the tax decrease/refund that brings it about?
Explain yerself.
Oh brother…Libs we have explained till we’re blue in the face.
I have determined that it just doesn’t penetrate the progressive, closed-loop mind.
On a side note, I love when progressives stumble over themselves railing against conservative radio talk show personalities. Yet there is no conservative talk show host I know of who comes anywhere near stooping to the filth and vitriolic hatred the left consistently and constantly spews.
Case in point —
http://www.realclearpolitics.com/video/2012/11/27/liberal_radio_host_malloy_calls_for_wiping_out_all_the_tea_baggers.html
Relentless spew is the the by product (much like Oats processed through a horse) in dealing with people like Libby who reject fact for fiction at every opportunity. They argue pointlessly on issues they have no real solutions for, and it seems their only stance is their fear chant of a loss of entitlements because someone else does give them enough. Sadly once immersed in the Liberal quagmire of entitlements they lose the ability to formulate any thoughts of self reliance as well as a growing lack of common sense. Trained early on in life they are as much a blight on society as their spin off brethren begging for more assistance without producing anything of societal benefit. Seems to me the only difference is some use a keyboard, while others blatantly panhandle you with cardboard lies.
Could be time to sell some of the city-owned land it has acquired over the years so it goes back on the tax rolls. Or quit purchasing nutty artwork.
And perhaps hold those who make bad financial decisions with taxpayer $$ personally liable for refunds or reimbursement? Just a thought . . . . . Might bring some fiscal responsibility to the table.
Yes, well, I just read an entire paragraph decrying the “progressive” mentality, but not offering a single fact that might explain how you pay the same number of emergency service personnel with reduced tax revenue.
Perhaps … you could reduce their wages? Tell two police officers that they can keep their jobs with your city, if they will work for half pay? Actually, there are jurisdictions that have taken pay cuts for the sake of maintaining staffing. Oakland, for instance. But this has been going on for many years now, and some jurisdictions (Oakland, for instance) have risen up … and said “No, not another dime.”
I just want to hear you say it out loud. Altogether now: “To the first responders of Chico. We have decided that we no longer wish to tax ourselves at a rate sufficient to pay your current wage. A ten percent wage cut will take effect as of the first of the year, with subsequent cuts to be enacted as reduced revenues dictate.”
Come on … have some guts.
And then I can spend a good long time rubbing your noses into the resulting social disruption. I do enjoy that.
Libby: “I just want to hear you say it out loud. Altogether now: “To the first responders of Chico. We have decided that we no longer wish to tax ourselves at a rate sufficient to pay your current wage. A ten percent wage cut will take effect as of the first of the year, with subsequent cuts to be enacted as reduced revenues dictate.”
One day Libby you are going to have to come out of that warm cocoon, where you never have to think about money cause there’s always more, and deal with the money problem we face in the country and in cities and states across the country. Pony up is no longer a sound, smart or practical solution.
I don’t know much about the city budget in Chico since I live in the county but, given what’s true in other cities, I don’t think wages for first responders are the biggest problem. I would begin with the benefits packages, including time off, and let them keep the salaries. Every city has an obligation to provide services to keep citizens safe. We should pay them well but we shouldn’t have to fund huge pension payouts.
Toby had some good ideas:
http://tobyforcouncil.com/issues
Ooooh … Tina’s not goin’ for 10, she’s going for 30 percent!
Good luck keeping help.
And I will be having fun!
Do you know what I just did … I figured they’d finally be in. I checked out the Butte County election results, and I got quite a shock. You re-elected Obama … by a sizeable percentage!
That guy Jack was so down on is going to the leg. The county’s gone positively mauve.
And I don’t think the cops have to worry about their wages.
Come on Libby, you read ONE paragraph of one post (which might be a personal best for you) by people who constantly provide ideas and opinions to prevent, may be even eliminate governments wasteful use of tax dollars. Then you try to spin it as we offer nothing? Get real! Also no one is buying into your rant that fiscally concerned people would even sarcastically use YOUR liberal mantra of fear. Had you not mentioned it, we would not have even be mentioning this; “To the first responders of Chico. We have decided that we no longer wish to tax ourselves at a rate sufficient to pay your current wage. Really, you expect people like myself to stoop to that level of spin and deception, not a chance. We would be asking how do you provide the same level of service without penalizing any one class of tax payers. How can we do this or that more effectively, Given the chance by your party we would seek all ideas with out just cramming your Liberal ever increasing tax burden down the throats of the working class. How about the use of incentives for departments that produce cost saving and suppling better efficiency. Lets eliminate those agency’s meeting that are solely year end meetings about how to spend ALL the residual money in their budgets, just so they get the same amount or more next year. That idea alone rewards everyone. Face it Libby your entitlement minded Government encourages waste. So if you want effective Government, limit their spending and require better performance with the use of our tax dollars.
Nicely done Harold. May I expand on your thoughts?
Since when does being a first responder entitle one to be treated like royalty? They deserve a decent salary but their “employer” can’t really afford the other promises that city big shots promised. They have been lied to about what is possible. Taxpayers were not at the table when these promises were negotiated. I don’t think it is at all unreasonable, when the reality of “insufficient funds” comes round to expect them to understand and work to discover what is possible rather than just stomping their feet and demanding more.
Apparently the Teamsters have shut down two of the biggest ports in America today. This will greatly disrupt shipments and depending on how long they plan to hold forth will harm business and possibly ruin a few Christmas mornings.
I don’t buy that these people are stupid. I do believe they are covetous by nature and politically socialist. Ultimately they want government control of business so we will all work for the state…one big happy union of workers.
America has been the richest, most generous nation on earth because we have been FREE. This band of idiots are well on their way to removing freedom…they have already destroyed the compact.
?????????? after checking how Butte Co voted:
ROMNEY/RYAN 44479 48.87%
OBAMA/BIDEN 42669 46.88%
Who ever you are I think you need some new reading glasses.
Libs…no we did not re-elect Obama by a wide margin in Butte County. I don’t know what you are looking at, but Butte County voted for Romney by about 2%. A narrow margin, but still it was not as you said. -Jack
I agree, nicely done Harold! And you too Tina. -Jack
Southern Comfort thanks for weighing in and correcting the record. Jack and I do our best but we need and appreciate the help of great people who contribute in comments! Hope you will come back with a good come back anytime the mood strikes!