> MRSC Focus > Initiative 695 > I-695 no answer to our tax load; Legislature is
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Sunday, October 17, 1999
No one likes the state's motor vehicle excise tax. The yearly cost of license tabs is a definite pain in the pocketbook. The excise tax is too high, and the depreciation schedule is too slow. But Initiative 695's answer to the tax is overkill and a destructive assault on all levels of government.
Voters should reject I-695 on Nov. 2 and then demand that the Legislature dramatically reduce the car tab tax as Gov. Gary Locke has vowed to do.
We know that's asking a lot. But I-695 already has served as a wake-up call for the Legislature. Groups now united against I-695 will join supporters to demand our legislators take action in January.
Here's what's wrong with I-695:
More than half the "surplus" is in an emergency reserve fund and can be spent only with the approval of a supermajority of both houses of the Legislature. In addition, tapping that fund leaves the state at risk and violates the intent of another voter-passed initiative " 601 " which was to allow reserves to build up during strong economic times as a cushion against a recession. Finally, even if legislators want to tap the reserve, the legal language of I-601 may prevent it.
The state budget may look flush, but the general fund is really $20.6 billion and few discretionary dollars actually are available. Legislators would have little choice but to gut local government and transportation projects.
New cities -- such as Sammamish, Newcastle, Covington and Maple Valley -- will be hit hard. Part of the license tab money goes to help balance those city's budgets in the form of state equalization funds. Sammamish would lose 10 percent of its budget, Newcastle 15 percent, Covington 26 percent, and Maple Valley 14 percent. Established cities will face heavy losses as well. No city is immune from I-695.
Last year, voters approved Referendum 49 to move billions of dollars into transportation. Without the motor vehicle excise tax, kiss those projects goodbye. Congestion, already bad, will get worse.
The initiative cuts more than $100 million from Metro Transit's budget in the first year alone, about 25 percent of what King County spends annually on transit service. With fewer buses, an estimated 22,000 more people will get back in their cars.
Supporters claim I-695 is similar to a measure passed in Colorado. It's not. Colorado does let people vote on all tax increases " but not fees. That's an important difference. Back in 1990, both taxes and fees were part of an issue before Colorado voters, and they said "no." When the fee aspect was removed, Colorado approved the idea. The fee-approval aspect is the worst part of our measure, too.
Elections can easily cost even small cities and districts tens of thousands of dollars. If a library needs to increase fines or a school district the price of pencils, both would have to get voter approval. That's ridiculous.
I-695 effectively changes our form of government from a representative democracy to one by plebiscite. Significantly limiting the taxing authority of our elected officials is not only too drastic a change, it is likely unconstitutional.
Besides, Washington's budgets and taxes are not out of line compared with those of other states. Over the last decade, our state ranks 41st in increasing budgets among the 50 states. On increasing taxes, our state ranks 39th.
This newspaper has a history of supporting state and local government that is fiscally conservative. Editorials have consistently stated that I-601 is working well and should not be amended. We endorsed Referendum 47 to limit the rise of government budgets to inflation. And we favored Referendum 49's tax shift to transportation. But I-695 contains too many flaws to receive our endorsement.
An influential and diverse group of organizations has lined up against I-695. Chambers of commerce and labor organizations are united in opposition to it. Senior Services, a nonprofit agency representing senior citizens, and the AARP are against it. The Boeing Co. is urging a "no" vote, as are numerous environmental groups. The list urging defeat fills pages.
Washington needs thoughtful tax relief and government accountability, not the reactionary quick-fix that I-695 offers. The Journal urges a "no" vote on I-695.
