LEAGUE OF WOMEN VOTERS OF CALIFORNIA EDUCATION FUND ASK THE CANDIDATES PROJECT: JUNE 7, 1994 PRIMARY ELECTION CANDIDATES FOR STATE TREASURER All six candidates for State Treasurer were invited to participate in this online Ask the Candidates Project and to answer the same three questions. Responses were received from three: Matt Fong (Republican); David Roberti (Democrat); Jan B. Tucker (Peace & Freedom). Their answers to the questions are are included in this file along with the biographical data they chose to include. &&&&&&&&&&&&&&&&& & & &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& BRIEF BIOGRAPHY OF MATT FONG, REPUBLICAN CANDIDATE FOR STATE TREASURER Matthew Fong currently serves as Vice-Chair and the Fourth District representative of the State Board of Equalization. Prior to his appointment in 1991, Matt practiced with the international law firm of Sheppard, Mullin, Richter and Hampton in Los Angeles. Matt has earned a B.S. degree from the United State Air Force Academy in Colorado Springs, as well as a law degree from Southwestern Law School and an MBA from the Pepperdine University's School of Business and Management. RESPONSES FROM MATT FONG, REPUBLICAN CANDIDATE FOR STATE TREASURER Question 1) The state has always funded its share of school construction costs with bonds. Since, in recent years, the state has seen numerous proposals to widen the types of services funded with bonds, can the state afford to do that and still build the schools that we need? I share your concern over the danger of broadening the scope and uses of state bonds. Politicians are increasingly using state bond measures to escape making tough decisions about how to finance crucial public initiatives. Since they lack the courage to make cuts or reorder priorities of how general fund money is used, they turn to state bond measures as a way out of their dilemma. But this is endangering one of the primary purposes of state bonds -- to finance school construction. If we do not control the use of state bonds to a limited set of specific purposes we will end up devaluing state bonds as a means of school construction. Too many state bonds will saddle our state with too high a risk factor for repayment -- which can lead to California losing its bond rating. As State Treasurer, I will fight to restrict the use of state bonds to four vital areas: 1) School Construction, 2) Transportation improvements, 3) Prisons and 4) Emergency measures to raise funds for rebuilding after a major natural disaster. This will preserve the effectiveness of state bonds to meet these vital needs of the community. Question 2: Would you oppose or support efforts to remove the two-thirds popular vote requirement for local property-related taxes (parcel taxes and bonds)? Why, or why not? As treasurer, how would you view proposals to grant new benefit assessment authority to local governments? 2A) Would you oppose or support efforts to remove the two-thirds popular vote requirement for local property-related taxes (parcel taxes and bonds)? Why or why not? I support the two-thirds popular vote requirement on local property related taxes that has been part of our State Constitution for 100 years. This requirement keeps elected officials from using schools as a convenient way to raise taxes and serves as an incentive for local elected officials to better spend the money they do have. California has a major problem -- our leaders are unwilling to lead and make the tough choices between various policies, programs or projects. We don't need higher taxes, we need more political courage to make hard decisions. Each policy, program and project must be judged if it works. If it doesn't, political leaders need the courage to cut the particular policy, program or project. This will free up the resources needed to meet the needs of Californians. And that is after all the gist of the question: how to find the money to meet our needs. 2B) As Treasurer, how would you view proposals to grant new benefit assessment authority to local governments? I oppose proposals to grant new benefit assessment authority to local governments simply to fund state mandates. It is a cynical ploy used by state government to raise taxes without getting any direct blame. Their ploy works like this: mandate that county government provide for specific programs, then refuse to fund such programs while simultaneously giving the county the authority to assess taxes. This ploy preserves the program and places the blame for higher taxes on someone else. A wonderful political move ... but a cynical one. That is why I oppose granting local government new benefit assessment authority to fund state mandates and I oppose the State Legislature passing unfounded state mandates onto the counties. 3) What methods will you use to invest the public's money, keeping it safe and at the same time obtaining top dollar? The most important task of the State Treasurer is to ensure that the hard-earned money of California taxpayers is well and safely invested. I view this as a sacred trust between me and the taxpayers of California. As State Treasurer I intend to follow the highest standards in making investment decisions. That means, I will only invest when sound financial standards, diligent research and good old fashioned common sense show the investment to be sound and advantageous for California's taxpayers. I will not, under any circumstance, base my investment decision on any other criteria than the ones mentioned above. I oppose all attempts to link investment decisions with political considerations. We cannot jeopardize taxpayer money by using investment decisions to create social change according to some political ideology. That is the sure way to lose money and place the taxpayers money in danger. I will actively seek solid investments in California rather than investments in other states. Doing this will help produce jobs here as well as increase state revenue. &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& BRIEF BIOGRAPHY OF SENATOR DAVID ROBERTI, DEMOCRAT CANDIDATE FOR STATE TREASURER David Roberti has a proud record of accomplishments for Californians. Recently named Most Effective Senator by California Journal, Roberti has a reputation for reconciling partisan differences and moving California forward through difficult times. Roberti led California's Senate from 1980 through January, 1994. He defeated a recall attempt by assault weapons extremists who wanted to overthrow his landmark 1989 ban on assault weapons in California. Other accomplishments include family leave, ethics reform, and childcare for latchkey children. RESPONSES FROM SENATOR DAVID ROBERTI, DEMOCRAT CANDIDATE FOR STATE TREASURER Question 1: The state has always funded its share of school construction costs with bonds. Since, in recent years, the state has seen numerous proposals to widen the types of services funded with bonds, can the state afford to do that and still build the schools that we need? Schools have to be a top priority with state government, and we cannot afford to shirk our responsibility to the next generation as we struggle to find solutions to our state's financial problems. As Treasurer I would work with the Governor and Legislature to make certain that we keep our commitment to Californians of this and future generations by providing adequate school-construction financing while keeping the state's overall debt burden in line with prudent fiscal standards. California's overall debt burden is considered moderate, and we can afford to issue a modest amount of bonds over the next several years. What is more important than our debt burden, however, is our credit rating, which has declined sharply in recent years. With each downward tick, Californians lose millions of dollars-millions of dollars that could be used to create jobs building schools, highways, hospitals, prisons, and housing. As Treasurer, the top priority of David Roberti will be to build an alliance with the Legislature and the Governor to solve California's fiscal crisis and restore the state's excellent credit rating. My reputation for bipartisanship and effectiveness- I was recently named the state's Most Effective Senator by the California Journal-make me uniquely qualified for this crucial endeavor. Question 2: Would you oppose or support efforts to remove the two-thirds popular vote requirement for local property-related taxes (parcel taxes and bonds)? Why, or why not? As treasurer, how would you view proposals to grant new benefit assessment authority to local governments? The two-thirds vote requirement handcuffs local governments as they struggle to cope with growing demands on their resources and decaying infrastructure. It allows a minority to impose their will on the majority, in contradiction to our basic democratic creed. And it paralyzes those who would try to fix their community's pressing problems. My record shows that I have supported all proposed Constitutional amendments (including the one on last fall's ballot) to allow majority rule on local property-tax issues because I believe local authorities and local citizens should have maximum flexibility in addressing local problems. If a majority of citizens in an area decide on the best way to address their local infrastructure needs, then the state should not prevent them from making that democratic decision. I am currently carrying legislation which would allow the creation of library benefit assessment districts, and I would support similar proposals as Treasurer. Our libraries are in desperate need of funding in many cities, and we should give local residents a viable option to preserve library service while maintaining local control. As Treasurer, I would provide oversight and guidance for local governments which decide to sell bonds to finance infrastructure improvements, ensuring that they get the best deal in the marketplace. Question 3: What methods will you use to invest the public's money, keeping it safe and at the same time obtaining top dollar? Security and liquidity should be of paramount concern to the Treasurer as she or he invests the public's money from the Pooled Money Investment Account. Since this account is essentially the state's checking account, a speculative investment scheme that goes bad would have disastrous consequences for the whole state. My years of experience as a public servant have given me the patience and perspective that Californians deserve in a Treasurer who makes these important decisions. My Target California plan would establish a broad policy of making these short-term investments within California wherever possible. Our California investments must meet the same standards of safety, liquidity, and rate of return as all of our investments, but investments which Target California would also spur economic growth in our state. As Treasurer I would provide PERS and STRS with prudent financial leadership, seeking new and innovative investment opportunities which still provide adequate safety. My record shows that I would move PERS and STRS in responsible directions, not wild real estate deals that could lose millions for our retirees. In today's turbulent economy, I will help the PERS and STRS boards evaluate what is a worthwhile innovative investment, and what is 1995's equivalent of the junk bond. For more information contact: Roberti for Treasurer Campaign Headquarters 9150 Wilshire Blvd, Suite 247 Beverly Hills, CA 90212 310-247-0350 FAX 310-247-0358 818-508-0191 &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& BRIEF BIOGRAPHY OF JAN B. TUCKER, PEACE & FREEDOM CANDIDATE FOR STATE TREASURER EDUCATION: B.A. cum laude, 1977, Political Science and Chicano Studies, CSU Northridge. MEMBERSHIPS: National Organization for Women California Association of Licensed Investigators National Rifle Association American Correctional Association OFFICES CURRENTLY HELD: Public Relations Director, SFV/NELA Chapter, NOW Board of Directors, California NOW Legal Fund Vice-President, Save the Animals Fund Vice-President, Western Region, Armenian American Action Committee (ARAMAC) PROFESSIONAL: Private Investigator License #PI 10143 Vice President for Collections, Permanent Patients, Inc. Vice President, Wildcat Distributors, Inc. RESPONSES FROM JAN B. TUCKER, PEACE & FREEDOM CANDIDATE FOR STATE TREASURER Question 1: The state has always funded its share of school construction costs with bonds. Since, in recent years, the state has seen numerous proposals to widen the types of services funded with bonds, can the state afford to do that and still build the schools that we need? I am against the use of bonds for the financing of ANY government services but recognize that they should continue to be used, sparingly, until our entire system of government funding can be radically altered. According to a Pennsylvania State University study, the wealthiest 1/10 of 1% of the population are the holders of all tax-free federal, state, and municipal bonds and their issuance only leads to the continuance of a disproportionatedistribution of wealth. California can create an in-house department to sell bonds to avoid hypochritical situations and save money: The reason for selling "Clean Water" bonds is partially because UNOCAL engaged in a 40 year cover up of the largest California toxic spill in history. UNOCAL's largest shareholder is Bank of America with 37 million shares. Who gets to sell many of California's Clean Water bond issues as head of syndicate: Bank of America. Instead of bond sales we need progressive tax reform. A start would be abolition of the capital gains loophole, so that investors are not rewarded for making money by investing while working people pay taxes on their full paycheck. This would bring California hundreds of millions of dollars per year in new revenue. Question 2: Would you oppose or support efforts to remove the two-thirds popular vote requirement for local property-related taxes (parcel taxes and bonds)? Why, or why not? As treasurer, how would you view proposals to grant new benefit assessment authority to local governments? I reluctantly support abolishing the current two-third requirement because California desperately needs the public services to be financed by many bond issues, with the qualification that bonds should be replaced with progressive pay as you go tax reform as soon as possible. Another holdover from Proposition 13 that needs to be eliminated is the tax reduction on income producing non-residential property. California should restore rates in effect for income producing non-residential property in effect prior to Proposition 13 and institute progressive property tax rates for both fiscal reasons and quality of life reasons. The clear cutting of a forest should not cause a lower value to the land for tax purposes but should invoke a tax penalty to punish the paper company from adopting low- employment/anti-environmental cutting techniques. A properly managed forest with selective cutting, increasing employment and environmentally safe, should be rewarded with a lower property tax, even though the land value may be higher than on clear-cut property. Question 3: What methods will you use to invest the public's money, keeping it safe and at the same time obtaining top dollar? Establish a state bank, organized with regionally elected boards of directors as though it were a credit union, to deposit state money, combat redlining of minority, impoverished communities, and to give the public a safe place to invest without fear of Lincoln Savings type rip-offs. Establish an advisory board of feminist, environmentalist, human rights, and trade union representatives to review California investments and to recommend "politically correct," safe, alternatives that will promote growth of a unionized workforce in California. "Politically correct" investment firms, such as Working Assets, generally have as good or better money management records than California, which invests in unconconscionable companies. Disinvest from companies that are politically incorrect because they are reckless and unsafe: --California Teachers Retirement System is 10th largest holder in UNOCAL, which is financing the blockade of Armenia, using slave labor to build a pipeline in Burma while destroying the rainforest, and pleading guilty to covering up toxic spills in California criminal courts; --University of California, Teachers Retirement Systems, and CALPERS are major investors in General Electric, which is busy firing union organizers in its Mexican plants. For more information contact: Tucker for Treasurer "Politics As Unusal" 10153 1/2 Riverside Drive, 374 Toluca Lake, CA 91602-2533 818-830-2794 FAX 818-830-2824