California gas tax repeal effort could help GOP candidates

SACRAMENTO — Top national Republicans and grassroots donors alike have poured money into the campaign to repeal a recent gas tax increase in California with the hopes it will drive turnout in November and help the GOP hold onto U.S. House seats in the heavily Democratic state.

But they face an uphill battle against opponents with far more cash, who say the increase is needed to repair the state's crumbling roads.

Overall, committees raising money to repeal the gas tax — approved by lawmakers last year — have reported more than $4 million in contributions. The biggest donors to Proposition 6 are prominent Republican candidates and groups, including U.S. House Majority Leader Kevin Mccarthy, Speaker Paul Ryan, the California Republican Party and federal Republican PACS.

Republicans argue Californians are fed up with the high cost of living and Democratic dominance in the Legislature. They see the gas tax repeal as essential to boosting turnout among voters who care about pocketbook issues and staving off Democratic efforts to flip Gop-held U.S. House seats in Orange County and the Central Valley.

"It's the most significant thing that will drive turnout," said Jennifer Jacobs, a Republican strategist who lives in one of the contested districts. "It's the one thing that's on the ballot that Republicans can unite about from an issue standpoint."

Campaign reports filed this week show thousands of smallerdollar donors are also contributing to the initiative. Donors who gave less than $1,500 have contributed at least $1 million to the effort.

Those donors, many of whom gave in repeated donations as small as $10, contributed through a political committee run by San Diego talk-radio host Carl Demaio, a chief opponent of the gas tax increase. His committee also ran a successful effort earlier this year to recall a Democratic state senator who voted for the gas tax.

By contrast, the campaign to keep the gas tax increase has raised little from small-dollar donors. Still, it's raked in a whopping $15 million this year, nearly four times opponents' haul. The bulk has come from deep-pocketed donors, including construction companies and their unions. The California Democratic Party has kicked in $115,000.

Gov. Jerry Brown, who pushed for the gas tax increase and has pledged to campaign aggressively to keep it, said the driving in California will get a lot worse if the tax hike is repealed.

The fee increases are expected to generate $5 billion per year through a 12-cent-per gallon increase in gas taxes, a hike in diesel taxes and new vehicle fees. The taxes and fees rise each year with inflation.