By CHRIS DUGOVICH

Chris Dugovich
Council 2 President/Executive Director

The National Conference of State Legislatures revealed on February 4 that state governments across the nation are facing combined budget deficits of more than $25 billion— an increase of nearly 50 percent from last November.

These numbers are hardly shocking to budget-watchers in Washington State, where the Legislature and Governor are grappling with a $2 billion-plus shortfall.

It is also no secret that miserable budget figures in Olympia pose a real threat to core state services such as transportation, education, and health care. But just as critical are the threats to local government—the essential services provided by our cities and counties.
The triple whammy of initiatives 695, 747, and the recession have not only crippled the ability of the state to provide support for local government, but they have hamstrung the ability of local communities to make revenue and spending decisions. The services at risk or already lost are real: library furloughs and cutbacks in Seattle, local road projects unfunded throughout Snohomish County, closure of parks in King County, and layoffs of county and municipal personnel throughout the state.

Loss of state funds for county and city governments is disproportionate in the rural and less-affluent parts of our state, where the local tax base is too small to cushion the blow. In Garfield County, more than 60 percent of the County budget was lost following the enactment of car-tab-limiting I-695. Initiative 747, which limited property taxes to a below-inflation rate of 1 percent a year, was all but a death knell.

The loss of State matching funds for roads and other infrastructure throughout rural Washington means a deteriorating network of farm-to-market roads, unsafe rural highways, and the further erosion of our agricultural economy.

In the Puget Sound, where issues like park and library closures have grabbed headlines, dangerous intersections are not being improved, investments in public health, water treatment, and public health are being delayed or cancelled, and public safety budgets—from police and fire to our county jails—are facing freezes and even cuts.

We expect these services to be automatic—and we should—but we cannot forget that these services also cost money.

In the face of dramatic deficits and shrinking revenues, Governor Gary Locke took the controversial step of proposing the suspension of two popular initiatives, I-728 and I-732, in his proposed 2003-2004 budget. These initiatives, passed overwhelmingly, give teachers a pay raise and direct more funding to overcrowded schools.

If we are serious about restoring balance to our state budget, and willing to examine the role of initiatives in that process, it is only logical to put everything—unfunded spending mandates and non-specific tax cuts—on the table.

An argument could be made that it is more radical to cut education funding than it is to limit property taxes to inflation plus cost of living and growth increases—a more reasonable alternative to the arbitrary 1 percent limit of I-747. A simple reform of this nature would allow our cities and counties to keep pace with the rising costs, and at least help maintain services we depend on.

And how radical is it to reinstate a modest scaling of vehicle license fees that reflect the value of a car or SUV? There is no need to go back to the hated old system, but a moderate MVET—with all proceeds going directly to transportation improvements—would be a progressive way to fund roads without an additional tax on drivers.