Davis Budget Calls for Array of New Fees

SACRAMENTO — As Gov. Gray Davis made very clear last week, he found a way to close the state's $12-billion budget shortfall without new taxes.

New fees, however, are another matter.

Buried within the nearly 1,500 pages of the governor's $100-billion budget proposal is an array of increased fees and penalties totaling, by the administration's count, $143million.

At the receiving end are some of society's most politically unpopular members: polluters, drunk drivers, power producers, insurance companies and assorted scofflaws. Fines paid by criminals would rise by 20%, for example. A $25,000 application fee would be levied on new power plants, and filing fees for DUI offenders who appeal suspension of their licenses would grow to $120 to cover their hearings.

Republicans, who are conducting their own analysis of the budget, peg the amount of new fees at nearly $500 million and contend that they target college students, struggling parents and sick, poor people as well.

With the quarter-cent hike in the state sales tax that took effect this month, new revenue in the Davis budget is projected at $1.3 billion to $1.7 billion, according to tax watchdogs. "It's a transference of wealth from the private sector to the government, and consumers will ultimately bear higher prices," said Jon Coupal, president of the Howard Jarvis Taxpayers Assn.

State Finance Director Timothy Gage said the fees and penalties were fashioned so that users pay a larger share of the cost of services they are receiving from the state, ranging from regulating pollution to maintaining driver records.

The fee on insurers and others who request driver information would rise from $2 to $4, raising $40 million. Drivers who are late with vehicle registration fees could see penalties jump 90%, which would bring in an additional $25million.

Bruce M. Brusavich, president-elect and legislative chairman of Consumer Attorneys of California, an association of 4,000 trial lawyers, took issue with a Davis proposal to tack a 10% surcharge on civil filing fees. The increase is expected to generate $15.2 million.

"Over the years they've been making it more and more expensive to get justice," Brusavich said.

Davis also wants to begin charging power plant builders a $25,000 fee to cover the cost of having their applications processed by the state Energy Commission.