Letter from the President
Why not use inflation rate as property tax cap?
By CHRIS DUGOVICH
Chris Dugovich
Council 2 President/Executive Director
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IN THIS YEAR'S November happenings, voters delivered up a mixed bag of answers, rejecting increased funding for transportation and passing the latest anti-tax Eyman Initiative (that will no doubt be thrown out in the courts), but making it easier to pass school levies with a simple majority. However, the real change came when the State Supreme Court threw out Initiative 747, the 1 percent property-tax limit.
Council 2 was the key player in fighting the restrictive nature of this initiative at the polls back in the fall of 2001. The passage by the voters of the initiative was greatly aided by the tragedy of the events on 9-11 and the effect that event had on our nation’s economy. The times were uncertain and everyone was apprehensive of what the future might bring. It passed and Eyman’s annual personal profit-making initiative business was aided greatly by this atmosphere.
As many of you may recall, during this campaign, despite the facts to the contrary, Eyman insisted he didn’t earn a dime in the initiative business. It wasn’t until months after the election that Eyman admitted his dishonesty and came clean on the fact that he profited handsomely from the process leading up to the passage of 747. His tearful admission filmed outside a post office in Snohomish County was not quite up to the acting standards of a bad soap opera.
Now that 747 has been ruled unconstitutional, the hue and cry from the anti-tax, free-lunch crowd is that the voters’ voice has been snatched away by the evil Supreme Court. The reality is that all laws and initiatives must fall within the framework of the state constitution. Even with his legal help, Eyman can’t seem to get that right.
Initiative 747 was never fair. A 1 percent limit does not even allow local governments to keep up with the toughest cost of all, inflation. Counties, cities, and sub-taxing districts that provide the most basic of services can’t keep up. There isn’t one local entity, from 911 dispatch centers and paramedic services to libraries and road maintenance shops that has not felt the pull of a restrictive 1 percent cap.
The key now is not to allow the politicians looking for a pat on the back to rush to legislatively reinstate the 1 percent limit. The old and current 6 percent limit just might be too high, however 1 percent is way too low. Let’s be rational. Let’s look towards a limit that at least provides for inflation and provides for the ability of local governments and schools to at least stay even.
The anti-tax, free-lunch crowd will never be happy or satisfied. Back when the Supreme Court also threw out Initiative 695, the original car tab reduction, then-Governor Gary Locke raced to the media and the legislature to proclaim his support to legislatively reinstate its provisions. There was no thought, very little consultation with legislative leaders, and no process. Not many would disagree with the fact that car tabs had become too expensive; however, there should at least have been a process to look at a middle ground to provide some money for necessary services that had been funded by the car tabs.
This time we hope Governor Gregoire and our legislative leadership will take a deep breath and look at a reasonable alternative before they leap!
One can only hope — we’re heading into an election year.
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