GAINES GAZETTE
January 2020
Happy New Year! I look forward to the challenges and opportunities that await as I enter my second year as a Member of the Board of Equalization. I will continue working to make California a great place to live, work, and raise a family. As always, I will keep you updated on the latest news and developments at the BOE .
Governor Announces 2020-21 Budget Proposal
On January 10, Governor Newsom unveiled his $222.2 billion budget proposal —the largest state budget in California's history.

While the Governor’s proposal includes many new programs, I believe the state has priorities that should take precedent over funding new programs—namely lowering the cost of living, covering pension liabilities, bolstering public safety, providing high-quality education, creating jobs, and tackling the homeless crisis.
 
These are the issues most important to Californians. The Governor and Legislature need focus on addressing them rather than creating more programs. Lawmakers should be reducing their spending and increasing the rainy day fund so our state is prepared for the inevitable economic downturn.
 
They should also focus on building more water storage, easing traffic congestion, and reversing years of taxing and regulations that have made housing unaffordable for middle class families.
 
One thing is certain, with this incredible amount of spending and a projected $5.6 billion surplus, there should be no need to raise taxes or fees on hardworking California families.
New Year, New Laws
Last year, Governor Newsom signed nearly 1,200 bills into law. Hundreds of them take effect this year and address a range of issues, mostly reflecting the progressive agenda of the majority party. Below are some bills I am deeply concerned about.
 
  • Minimum Wage Increase: Senate Bill 3 increases the minimum wage in California by one dollar to $13 an hour for large employers and $12 an hour for businesses with less than 25 workers. Minimum wage will peak at $15 an hour in 2023.
 
This is yet another burden on small business owners struggling in our high-cost state.
 
  • Independent Contractors: Assembly Bill 5 reclassifies some independent contractors as employees if the employer controls the work, directs them in the course of their work, or if the worker's job is part of a company's core business.
 
The Legislature doesn't seem to understand that many people want the freedom to work when and where they choose. Already hundreds of people working in the gig economy have lost their jobs and thousands more are finding their livelihoods threatened. We must find a way to give workers more flexibility and job opportunities so they can continue to make a living in a changing economy.

  • Healthcare for Undocumented Immigrants: Senate Bill 104 expands government-subsidized healthcare benefits to cover all young adults aged 19 to 25 regardless of their immigration status.
 
Let’s fix healthcare for taxpaying citizens before opening our system to the rest of the world’s travelers.
 
  • Student Suspensions: Senate Bill 419 prohibits students up to fifth grade from being suspended for disrupting school activities or defying teachers and administrators. Grades 6-8 will also be protected from such suspensions for the next five years.
 
Why are we making it harder for teachers to control their classrooms, which punishes those students who want to learn?
 
  • Criminal Copays: Assembly Bill 45 no longer charges California inmates a copay for medical care or fees for medically necessary items.
 
When did breaking the law come with zero consequences? I have to pay a copay, why shouldn’t a lawbreaker?
 
As I travel around the district, I often hear from constituents that they are concerned about the direction the state is taking. I agree with their concerns and encourage them to communicate with their state representatives.
Property Tax Postponement Program
Applications Available until February 10
Applications for the 2019-20 tax year are available from the State Controller’s Property Tax Postponement Program until February 10. This program allows homeowners who are seniors, blind, or have a disability to defer current-year property taxes on their principal residence if they meet certain criteria including 40 percent equity in the home and an annual household income of $35,500 or less.

For more information, please visit my Resources page.
Workforce Planning Work Group
Last November, Chairman Tony Vazquez and I began co-chairing a work group focused on workforce planning issues specific to the administration of property tax. The work group was created after the Board held its first of four informational hearings to discuss topics related to modernizing California’s property tax system.
 
Board Members, County Assessors, and other interested parties agreed that recruiting new staff should be a top priority because there is currently a shortage of experienced appraisers, a situation that will be exacerbated by the high number of skilled employees retiring in the next decade and the possible passage of a split roll initiative next November.
 
With that in mind, I recently met with the president of Sierra College , Willy Duncan, to discuss ways the BOE and County Assessors could partner with California’s Community Colleges to create appraiser training programs.
 
The state’s community colleges are a natural starting point because they have always been tasked with delivering career education and workforce training. In June 2016, state legislators reinforced this directive when they approved $200 million for a workforce training program designed to reduce the looming skills gap across the state. The Strong Workforce Program requires community colleges to collaborate with each other and the private and public sectors to direct resources where they are most needed.
 
It is my hope the BOE and County Assessors can work closely with our community colleges to develop regional programs that will help meet our staffing needs. It is imperative we quickly find ways to attract people into the profession because taxpayers deserve to continue having their property assessed fairly and accurately.
Around the District
I had the pleasure of speaking to the South Lake Tahoe Lodging Association about the split roll initiative. After updating the group, many members shared with me how they would be negatively affected by an increase in property tax, if an initiative passes next November.
I was in Hanford to address the Kings County Economic Development Corporation about the same issue. This group was a mix of local government officials, industrial business owners, educational leaders, and farmers. We had a lively discussion about the implementation of a split roll initiative should it pass, the changes proponents have made to the new as-yet-qualified initiative, and the effects that a split roll could have on the BOE, County Assessors, and small business owners.
Afterward, I enjoyed lunch at Superior Dairy with Kings County Supervisor Doug Verboon and County Assessor Kristine Lee. This city landmark has been doing business in downtown Hanford since 1929.

As I travel around the district meeting with more and more constituents, I hear many points of view but one thing I think we could all agree on is that the ice cream at Superior Diary is amazing!
At Your Service
White sign with words Customer Service in red sitting next to a bell with a finger pushing down on the ringer. Picture of Board Member Ted Gaines sitting in a black desk chair wearing a light blue shirt and striped tie.
As a Board Member, my number one priority is to advocate for taxpayers. I believe hardworking Californians deserve to have someone working on their behalf to streamline and promote efficiency in state government.
 
Should you need assistance with tax-related problems or have questions, visit my website for information on how to contact my office or email me directly anytime.
Mark Your Calendar!
Monthly Board Meeting: January 28, 2020 in Sacramento