TOP 10 REASONS JOHAN KLEHS IS THE BEST CANDIDATE FOR CALIFORNIA STATE CONTROLLER

By Johan "Klehs" Klehs

Top Ten Reasons Johan Klehs is the best candidate for State Controller

Managing the state's money effectively is an acquired skill. It takes working with the Legislature, the Governor's office, other government agencies, and various interest groups to fully appreciate the impact of decisions. For 23 years, Johan Klehs has prepared to be Controller.

#1 -- EXPERIENCE

Johan Klehs has 23 years of public finance experience.

The State Controller serves on the Board of Equalization (BOE) and the Franchise Tax Board (FTB). Klehs has served on the Board of Equalization since 1994, representing the First District. He was re-elected in 1998 with the largest vote margin of any constitutional officer in California. As Chair of the BOE, he served as a member of the Franchise Tax Board (FTB) in 1995, 1996, and 1999. Klehs was Chair of the Assembly Revenue and Taxation Committee while serving 12 years in the State Assembly. He helped write the Manufacturers Investment Tax Credit, and supported tax cuts of over $7 billion for California families and businesses.

#2 # JOHAN KLEHS IS A MAJOR ARCHITECT OF CALIFORNIA'S STRONG ECONOMY

As a member of the State Assembly and Chair of the Revenue and Taxation Committee, Johan Klehs reformed California's Research and Development Tax Credit, reducing the bank and corporate tax rate from 9.6% to 9.3%. Klehs also sponsored the "Internet Tax Freedom Act" to keep the Internet free from government regulation. On the Board of Equalization, Klehs supported tax reduction packages for businesses and families and sponsored legislation allowing small businesses to perform self-audits and pay 50% less for any interest owed.

#3 # JOHAN KLEHS IS THE CHOICE OF THOSE WHO KNOW GOVERNMENT FINANCE

Johan Klehs is endorsed by Governor Gray Davis, Lieutenant Governor Cruz Bustamante, State Treasurer Phil Angelides, former State Treasurer Kathleen Brown, Insurance Commmissioner Harry Low, Superintendent of Public Instruction Delaine Eastin, Senate President Pro Tem John Burton, and many members of the California Congressional Delegation, State Senate and State Assembly. (complete list attached)

#4 # JOHAN KLEHS RESPECTS TAXPAYERS

Johan Klehs has a long-standing practice of treating taxpayers like customers, not just sources of principle, interest and penalty. To make the BOE more accessible to Californians, Johan Klehs put the department on-line for the first time (http://www.boe.ca.gov/jklehs.htm) -- earning the BOE the highest customer satisfaction rating of any California State agency and the praise of the Wall Street Journal.

#5 # JOHAN KLEHS PROMOTES DEMOCRATIC VALUES

As Chair of the Revenue and Taxation Committee, Klehs authored legislation to cut taxes for 71% of California's families and stop $21.8 billion in special interest tax loopholes that would have hurt public education, police, and fire services in California. In addition, he wrote laws that banned assault weapons, expanded public parklands, increased workers' benefits, and he has remained steadfastly pro-choice. Klehs has been honored 8 times as "Legislator of the Year" by advocacy groups including the Peace Officers Research Association of California and the California Abortion Rights Action League

#6 -- JOHAN KLEHS LED THE CHARGE AGAINST THE UNDERGROUND ECONOMY

Klehs brought in over $3.5 billion to the California Treasury through his efforts to break up the underground economy. He targeted the Russian mob for diesel fuel tax evasion. He helped change the point of collection for diesel fuel tax, generating $410 million in new monies since 1995. At the FTB and BOE, Klehs led the effort to collect $98.8 million for labor code violations and unpaid payroll tax assessments, and he helped smoke out $12 million from cigarette smugglers.

#7 -- JOHAN KLEHS APPLIES GOOD BUSINESS PRACTICES TO GOVERNMENT Johan Klehs will institute sound business practices in the Controller's office. Under his leadership, the BOE initiated an external audit that identified $15 million in savings. By closing unnecessary field offices and streamlining bureaucracy, Klehs returned an additional $10 million in operating costs to the state Treasury.

#8 # JOHAN KLEHS IS A PROVEN ENVIRONMENTALIST

As State Controller, Johan Klehs will sit on the State Lands Commission, the California Coastal Commission, and the Safe Water Supply Financing Committee. The next Controller must be a strong environmentalist. On the BOE and as a Member of the State Assembly, Klehs used his fiscal authority to protect California's environment. The Energy Resources Surcharge, for example, collects $44 million annually to promote energy conservation. Oil and tire recycling fees that encourage recycling and reduce illegal dumping are another example of Johan's use of financial incentives to protect scare resources. In the State Legislature, Klehs earned more than a 90% pro-environment voting record. Klehs is a lifetime member of the Sierra Club.

#9 # JOHAN KLEHS IS A CHAMPION OF CHILDREN

Johan Klehs has been a long-time advocate for our state's children. Since he has been on the FTB and BOE, he has been able to collect over $435 million in back child support payments for California's children. In the State Assembly he authored a bill that allowed district attorneys to seize lottery winnings from all defendants who owed child support and he co-authored the child-care tax credit. He co-authored a bill that established a 6-county pilot program authorizing the Franchise Tax Board to collect delinquent accounts referred by the counties. This measure has collected $17.3 million. And, he helped write and support legislation to make the child payment collection role of the Franchise Tax Board permanent.

#10 # JOHAN KLEHS HAS DONE THE WORK

Johan Klehs believes that public service is an honorable calling. He's spent the last 23 years serving as a City Council Member, Chair of the Revenue and Taxation Committee while serving 12 years as a state Assembly Member, and currently on the Board of Equalization. He respects taxpayers and treats them like customers. He's worked to advance democratic values, and he's learned the finer details of government finance. Johan Klehs has earned his reputation as an expert on tax policy and as an efficient manager of public funds. Johan Klehs has paid his dues.