RichLockyer once bubbled...
It has not always been there. It was put in place under the Dukmejian administration.
Edit: It was not implemented in the 1980s... it was implemented in 1935.
Good catch. It's been there as long as MOST of us have been around, so I say always.
It was illegal from the start, as it was imposed without a 2/3 vote of the legislature or a vote of the people, but it was called a "fee" instead of a "tax" to it skated through.
Technically no it wasn't illegal. It was triggered by the fiscal situation we find in CA now. Davis didn't come up with that one. The State financial wiz did. ONLY after Davis tried to raise some taxes, and the reps shot them all down. The only thing left that would bring in more money was killing the VLF rebate. It didn't NEED 2/3 vote to go into effect, as written right into the rebate plan originally.
Is it a tax, yeah, really it is, but Davis didn't come up with it, he just happened to be in office when the rebate was recalled.
Now, the thing is, the VLF is, by law, going to local govt's, not the state. In 1998, things were great here with the IPOs and all, so they said, hey, lets give them a break and knock down the VLF, then since the state is rich, we can back fill that money to the local govt. That was great for a while, then the dot com bust hit, along with some over-priced electricity. Now the state doesn't have the money to make up that lost income to the local govt's, and needs to bring the VLF back. AGAIN, this was a known outcome when the VLF rebate started.