THE LEONARD LETTER
A weekly electronic newsletter from
Bill Leonard, Member
State Board of Equalization
September 15, 2003

"Of all the dispositions and habits which lead to political prosperity, religion and morality are indispensable supports." -- George Washington's Farewell Address

BREAKING NEWS

The Ninth Circuit Court of Appeals has ruled that California's recall election must be delayed because several counties use punch-card voting systems. The full implications of today's ruling are not yet known, but you can watch for the Supreme Court to be called upon to intervene in this matter.

ON THE TRAIL

***Republicans Rise to Challenge***

Tom McClintock and Arnold Schwarzenegger both appeared at the California Republican Party Convention this weekend, and both rose to the challenges they had to meet to keep their candidacies at the forefront of the recall race. McClintock needed to demonstrate that he has the dynamism and popular spirit to win. In short, he needed to appeal more to the Reagan Democrats, and he did just that, impressing many of the party members who were concerned about his ability to appeal broadly to many California voters. Schwarzenegger needed to show the party faithful that he believes in the principles they value, and he succeeded, speaking to themes of fiscal conservatism and restoration of a positive job climate.

I was surprised by the relatively small number of convention attendees who heard both candidates speak. From an informal survey of conventioneers Sunday morning, it seems that most party members attended only the event at which the candidate they are backing spoke.

The party leadership resisted the call from outside pundits to force unity when it is obviously not yet there. I commend that restraint because it is simply too early for such an endorsement. Even if the election were held on October 7th, three weeks in a compressed political schedule like this might as well be a lifetime. If the election is now months away, these candidates need time to fully reveal themselves before the party makes a decision.

UNDER THE DOME

***Lowenthal's Redistricting Bill Deserves Support ***

I would like to commend Assemblymember Alan Lowenthal (D-Long Beach) and the co-authors [Assemblymembers Patricia Bates (R-Laguna Niguel), Joseph Canciamilla (D-Concord), Lou Correa (D-Santa Ana), Lynn Daucher (R-Brea), Tom Harman (R-Huntington Beach), Shirley Horton (R-Lemon Grove), Keith Richman (R-Granada Hills), and Lois Wolk (D-Vacaville)] of a bipartisan effort to create a fairer way to determine future boundaries for the Assembly, Senate, Board of Equalization, and California's congressional districts. The current practice is for the majority party to consolidate its power by drawing lines that capture the most registered voters in their party. This was done perhaps too well in the last redistricting. There are now too many "safe" districts whose elected officials have no fear of being punished for not looking out for the common good.

The bipartisan group's long-shot bill, ACA 19, would create a procedure for the appointment of an independent redistricting commission, composed of five members, which would be charged with establishing districts of equal population in a grid-like pattern across the state. This measure would require the establishment of a pool of 25 candidates for appointment to the independent redistricting commission, as nominated by a panel of 10 retired judges of the courts of appeal appointed by the Commission on Judicial Appointments. This body would then select and appoint from this pool five commission members to do the redistricting.

In a speech before the Assembly last week, Republican Leader Dave Cox noted that 20 members of the Democratic caucus had not voted even once against the myriad of bills identified by the California Chamber of Commerce as job killers. Clearly, we need to reintroduce the idea of competitive seats in California politics to make elected officials more accountable for the well being of the state.

IN THE BOARD ROOM

***Bad Apples Need to Be Punished***

A taxpayer came before the Board for last week's hearing to plead his case and to share his side of one of the worst examples of government misconduct I have ever seen.

A BoE auditor went to interview a businessperson. The auditor noticed that there was a stack of business papers present. The auditor allegedly waited until the businessman left the room and then helped himself to a number of documents and left with them without asking permission to do so. This is theft.

Afterward, the auditor and his supervisor contacted the Board's Chief Counsel saying there was probable cause to get a subpoena. This is lying. After successfully getting the subpoena approved, the auditor went back to serve the subpoena and told the man not to bother looking for the documents because the auditor already had them. Thus, the stolen documents were laundered to appear that they had been obtained legally.

To their credit, when this activity became known, the Board's Executive Officer demoted the auditor and his supervisor. However, they appealed this disciplinary action to the State Personnel Board, which gave them a slap on the wrist-- a 5% salary reduction for 12 months. I am told that this decision is final. I am outraged by this and you should be, too. Both of these Board employees should have been fired; government employees who steal should lose their jobs. I am embarrassed for the other employees of the Board who work hard to do their jobs ethically and manage to serve the people without resorting to criminal behavior.

***FTB Imputation***

Mark Twain wrote about the inevitability of death and taxes. There are many outlandish schemes and potions of youth to help you avoid the first, but if you think that simply not filing a return is enough to avoid the latter, think again. Last week, we heard the case of an elderly gentleman who had failed to file his income tax returns because he was in poor health. Despite his failing health, this man took pride in still holding an insurance license in the state of California. He had not practiced his trade in years, but just knowing that he was still licensed meant something special to him in his golden years. When the Franchise Tax Board noticed that he had not filed his income tax returns, it did what California law entitles them to do. The FTB calculated what he owed based on the average income of people who have active insurance licenses in the state. Instead of looking at the facts presented by his caretaker son, the FTB moved ahead with its attempt to take this man's money. That the case even reached the Board of Equalization is an indication of how out of control our tax bureaucracy has become. That the majority of my Board colleagues did not make their decision out of either common sense or compassion is an indication of how out of touch they have become.

MISCELLANY

***Three More Words to Know***

Each week, the Leonard Letter features a few of the words from a list of 100 words that some educators say every high school student should know. The full list may be viewed at

http://www.houghtonmifflinbooks.com/booksellers/press_release/100words/.

43. Interpolate (v) --- To insert or introduce between other elements or parts; in mathematics to estimate a value of (a function or series) between two known values: California's bureaucracy and regulations have grown so much that they now interpolate themselves into nearly every aspect of our daily lives.

44. Irony (n) --- The use of words to express something different from and often opposite to their literal meaning; incongruity between what might be expected and what actually occurs. Electoral math could result in the outcome of the recall election being ironic: in an attempt to oust an unpopular Governor, we could end up with a new Governor who has even less popular support than Gray Davis.

45. Jejune (adj) --- Not interesting; dull; lacking maturity; childish: The behavior of many political candidates is jejune for voters interested in serious solutions to serious problems.

BOE AND LEGISLATIVE DATES

September 8-3 --- Registered voters may apply to county election officials for an absentee ballot for the October 7th statewide special election

September 22 --- Last day to register to vote in upcoming special election

September 24 --- BoE meets in Sacramento

October 7 --- Special Statewide Election

NOTABLE DATES/ HISTORY

September 15, 1620 Mayflower departs from Plymouth, England with 102 pilgrims

September 15, 1981 US Senate Judiciary Committee unanimously approves Sandra Day O'Connor

September 16, 1782 Great Seal of U.S. used for 1st time

September 17, 1787 US constitution adopted by Philadelphia convention

September 17, 1939 Soviet Union invades Poland during WW II

September 18, 1793 Washington lays cornerstone of Capitol building

September 19, 1796 George Washington's farewell address as president

September 20, 1519 Magellan starts 1st successful circumnavigation of the world

GENERAL TAX INFORMATION

For answers to your general tax questions, call the Board of Equalization information center. Customer service representatives are available to help you from 8:00 a.m. to 5:00 p.m. Pacific time, Monday through Friday (except state holidays).

Toll-free number: 800-400-7115

TDD service for the hearing impaired
TDD phones: 800-735-2929
Voice phones: 800-735-2922

HOW TO CONTACT ME

Bill Leonard
Board of Equalization
450 N Street, MIC: 78
Suite 2337
Sacramento, CA 95814
Telephone: (916) 445-2181
Fax: (916) 327-4003

 Email to: Bill.Leonard@boe.ca.gov