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Schools will feel an impact
Schools will feel an impact
Do you have questions about I-695? Ask us and we'll try to answer them in
our coverage of the statewide ballot measure between now and Election Day, Nov.
2.
I-695 would abolish the state motor vehicle excise tax and replace it with
a flat $30-per-vehicle fee. It also would require a public vote on future tax
and fee increases by state and local government.
Q: If I-695 passes and the cities and other agencies turn to the state general
fund for help, how will that affect funding for schools and social services?
- Celia Warren, University Place
A: The direct impact on schools would be twofold:
* About $5.3 million of the state's portion of the motor vehicle excise tax
is now earmarked for schools in 2000. That money goes to pay for such things
as sidewalks and left-turn lanes and traffic signals near schools.
* School boards would have to seek voter approval for any proposed increase
in fees, such as the additional charges they levy on students who want to enroll
in band, sports or other extracurricular activities.
The indirect impact on schools and social services that the state pays for
out of its general fund is unknown. It would depend on what cuts - if any -
the Legislature makes from its own budget to replenish money lost by cities,
counties and other local governments.
If the Legislature dips into its $1 billion reserve to give money to local
governments, that money would not be available to expand state spending on education
or social services.
On the other hand, the Legislature and local governments would have the option
of asking voters to raise taxes to provide more money for state or local social
services.
The impact undoubtedly will vary from government to government, depending
on the decisions made by state and local officials.
Q: Is it not possible for state and local governments to eliminate some less
essential and perhaps superfluous positions instead of police, firemen and bus
drivers when I-695 passes?
- Bill Macomber, University Place
A: Yes and no.
Local governments spend most of their operating budgets on police and fire
departments. Tacoma, for instance, spends more than two-thirds of its operating
funds on police and fire departments. And upward of 80 percent of every city
and county budget goes to pay salaries and benefits for employees.
Some layoffs might be necessary if local governments don't get more money
from the Legislature and choose not to dip into their emergency reserves.
Whether a city or county lays off public safety employees will be up to the
city or county council.
Some layoffs would appear inevitable for transit districts, unless they get
help from the Legislature, decide to spend the reserves down to zero or ask
voters to raise taxes.
Pierce Transit, for instance, expects to get 38 percent of its operating revenues
from the motor vehicle excise tax in 2001.
* Send your questions to state government and transportation reporter Joseph
Turner at 253-597-8436, joe.turner@mail.tribnet.com or The News Tribune,
PO Box 11000, Tacoma 98411. Please be sure to include your name (spell it, please)
and telephone number so that we can reach you if necessary.
10/18/1999
