Monday, May 28, 2012

Should citizens be required to decide how the state pays for ballot initiatives?


While dealing with the fallout of the Great Recession, lawmakers from both political parties started talking about whether citizens should be required to specify how funds would be raised and spent on policies passed at the ballot box. Representative Fred Finn thought that people should have that responsibility (like legislators) and introduced House Joint Resolution 4224 that would amend Article II of the state constitution to include:

“If the initiative will result in an expected increase to costs or expenditures of the state or local governments in excess of five million dollars, the secretary of state may not assign the measure
a serial number and the initiative shall be rejected unless the initiative also specifies a tax increase or a new tax in an amount that will offset the increases in costs or expenditures to state or local governments resulting from passage of the initiative.”

When he introduced this during the 2012 Legislative Session, Representative Finn said “Unfunded mandates aren’t fiscally responsible, whether it’s government or the people who are promoting them … My proposal is basically saying, ‘If it’s going to cost a significant amount of money, you need to show how it’s going to be paid for’.” Others (19 Democrats and 3 Republicans), agreed and joined Finn in sponsoring this.


However, an unusual group of interests came out in opposition to this amendment, including: initiative promoter Tim Eyman, the Washington State Grange, and Service Employees International Union Healthcare 775 NW. These groups have different agendas and political leanings, but they agreed that this requirement was a bad idea. This opposition led to the amendment not making it out of committee, but it started the conversation of requiring citizens to think about how government pays for programs.

Aside from the current economic crisis, the other major driver for this effort was the cost of ballot initiatives that citizens voted for in the past but that haven’t been funded recently due to the large price tag.  The quoted article above references some of these initiatives that, if implemented, would cost taxpayers over $1.2 billion in the current budget cycle. Two of the biggest ones include I-732 (class size reduction), and I-728 (cost-of-living increases for teachers). Both of these passed in 2000 by wide margins (72% and 63% respectively).

This makes sense because who can argue against improving our schools or efforts to better the teaching profession with increased pay? That’s a tough sell, and dangerous for politicians to attempt. While the policy is appealing and popular, it is likely that voters had no idea the initiative(s) would cost that much when they made their decision.  If the Washington Education Association had to put a billion-dollar price tag on these initiatives, chances are voters would have thought twice, and the difference between support and opposition would have been a little closer.

Regardless if you support or oppose an initiative, it’s important to know how much it’s going to cost. Without raising taxes, the state’s budget is a zero-sum game, meaning if you want to pass an initiative and not dedicate funding for it, you need to understand that funds are going to have to be taken from other programs.  Don Brunell, President of the Association of Washington Business, summed this up nicely in a piece he wrote for the Columbian stating, “Would you buy a new car or a new house without knowing how you’ll pay for it? Of course not. But Washington voters do something similar every time they approve a costly initiative without specifying how it will be paid for. That needs to change.”

The initiative process also works the other way by limiting or eliminating taxes that the state can collect. We’ll look at that next time.

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