BOND MANIPULATION
By Nancy Thomson
In California not only the people but the legislators also put propositions on the ballots. The process of getting others to finance someone's pet project via the ballot has become a very lucrative business. All too often, the taxpayers have no insight into the consequences that are contained in initiatives. This was proven when all of the bond issues were approved in the last election.
Many voters don't realize just what voting for bonds entails. The Howard Jarvis Taxpayers Association was flooded with calls after the 2003 elections. Some homeowners found their taxes had been raised by eleven per cent. Since Proposition 13 limits the annual real estate tax to an annual two percent increase, how come they were billed several hundred more dollars that the anticipated tax? Unfortunately the results of those voted bonds came home to roost.
It isn't just the initial cost of the bond but the added interest to pay off the bond. As the homeowner's property assessment increases (usually 2% in California per year) so will the bond taxes that are tied to the value of your property (Deborah Pauly, Chairwoman, Legislative Issues, Orange Republican Federated)
Why do so many bond measures pass? There are great rewards for those involved in promoting the selling of bonds. Often, the bond sellers agree to push a campaign in lieu of being granted the brokerage business should the bond pass. Fees and commissions earned by the bond brokers are reimbursed by the taxpayers. Thus taxpayers are indirectly paying for the public relations used to raise their own taxes.
Psychological ploys are used to encourage bond voting. Expensive consultants tell the bond advocates to avoid the word "taxes." In order to avoid criticism about taxes, consultants advise against publicizing bond proposals in the media. This might alert the community to their money raising plans. The public is denied information while the public unions are given material about the bond drives. This is because the union's benefit from higher taxes and support their implementation.
Government agencies can't use public funds for advocacy reasons. Therefore, consultants suggest using the money for polling to find what arguments to use in swaying voters for the bonds. Should someone mention taxes in connection with bonds, they should be sidetracked by advocacy talk about the benefits this measure will bring. Chamber of Commerce officers, school officials, the PTA, or senior citizen groups should sign the ballot arguments. They are considered "community representatives." Tax increase measures are more likely to pass if scheduled apart from general elections. Fewer people vote in off election times or pay close attention to issues (Jon Coupal, Howard Jarvis Taxpayers Association, 10/20/03)