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VOLUME 20#3 Summer 2005

Two initiatives affect members

COUNCIL 2 OPPOSES two initiatives affecting its members that will feature on the November ballot.

Initiative I-900 would direct the State Auditor to conduct performance audits of state and local governments and dedicate 0.16 percent of the state’s portion of sales and use tax collections to fund the audits. Performance audits study how effectively agencies are achieving their goals.

The initiative — backed by Tim Eyman — would provide about $10 million a year in funding and would let the auditor, rather than a citizen board, decide who is audited.

The auditor’s office is currently authorized to perform financial audits of state and local government’s handling of tax dollars. That authority is limited to state programs and is funded at $2.8 million over the next two years.

"Most of what is called for in the initiative already is being done," says Council 2 Deputy Director Pat Thompson. "We are not sure exactly what the impact of this initiative will be."

"Certainly everyone is in favor of a top level of services and performance from their local governments," Thompson adds. "But it will not make up for the lack of revenue local governments have suffered that hinders their ability to provide those services. Ironically the revenues were cut by the same person who is behind Initiative 900."

Thompson adds that the initiative is another example of how Eyman is filling his pockets from the initiative process.

INITIATIVE I-912 would repeal the 9.5-cent-a-gallon gas tax that was imposed by the State Legislature in its 2005 session.

The first 3 cents of the tax kicked in on July 1; the other increases will be phased in over the next three years.

Thompson says the gas tax provides a lot of funding for critical infrastructure projects.

"A lot of our members’ jobs are related to that revenue," he says. Roads are the economic lifelines of our state and this tax is essential for their maintenance and improvement, Thompson adds.

Council 2 understands that the increase in the gas tax, coming at the same time as strong increases in gas prices generally, is tough on everyone, Thompson says.

"But that hardship does not compare with the hardship we will experience if the state’s infrastructure is neglected.

"Ironically, with the manipulation of oil prices, it is less of a percentage of overall gas prices than it would have been had the oil price not risen so sharply."