Davis Releases Tax Records Showing Income Drop

SACRAMENTO — Gov. Gray Davis and his wife, Sharon, reported that their income dropped sharply last year as Mrs. Davis quit her job to campaign full-time with her husband in his drive to become governor.

The couple’s total income fell from $143,492 in 1997 to $109,103 last year, according to tax forms released Tuesday by the governor’s office.

The income included the $78,295 Davis earned as lieutenant governor.

In addition, his wife made $5,417 before leaving the Ralphs / Food 4 Less Foundation and $21,000 in consulting fees afterward. She reported $2,706 from the sale of stock in U.S. Airways, where she previously worked.

The Davises reported $2,007 in capital gains from the redemption of a state bond, $338 in dividend income and $730 in interest.

The couple paid a total of $17,623 in federal taxes and $5,075 in state taxes. In both cases, they owed money at the end of the year--$1,815 to the U.S. Internal Revenue Service and $950 to the California Franchise Tax Board.

While their income fell by $34,389 last year, it will bounce back and then some in 1999. By ascending to governor, Davis’ pay will double to $156,750 this year. The first lady is not employed.