Contact: Jason Mercier, Budget Research Analyst
(360) 956-3482

That's a (legislative) wrap

by Bob Williams, President
There is good news and bad after a three-and-a-half-month legislative session ended April 27. The good news is that some of EFF's key recommendations were adopted, laying the groundwork for more significant reforms. The bad news is that 105 days wasn't long enough for some lawmakers this year, so they're scheduled to start a special session on May 12 at a cost of $16,000 - $18,000 per day.

The major sticking point is the state budget for the next two years. This is the most important piece of legislation lawmakers deal with since it determines the priorities and spending for the entire state.

But that's not all they'll be addressing in the special session. In addition to the state budget, Governor Locke has asked them to consider the Capital Budget, unemployment insurance, charter schools, school testing and other education issues, terrorism, homosexual rights, water law revisions, prescription drugs, workers' compensation, community development financing, and a proposal to allow shared leave time for state employees serving in the military. (These are the session leftovers?) In Locke's words: "There's no reason these items [non-budget issues] can't be completed within a day or two." The governor is dreaming unless he gets personally involved in serious negotiations.

Performance audits
"Accountability" was this year's buzzword in Olympia and lawmakers scrambled to prove they understood it. Most had good intentions when they anxiously signed on to some "performance audit" bills. The bad news: the bills were little better than internal audits, not independent and comprehensive performance audits. The good news: most of those bills died after citizens placed a full-page ad in The Olympian defining and demanding true accountability. Implementation may require a citizen initiative, but the foundation has been laid.

Operating Budget
House Democrats, under the leadership of Speaker Frank Chopp, are responsible for the state's failure to adopt a budget. They didn't even pass their own version of the budget until the 104th day of session, leaving no time for negotiations. The delays prompted senators to break tradition and release their own budget before the House on April 4.

The bad news: The House budget is not balanced and seeks $320 million in tax increases on candy, gum, cigarettes (50-cent per pack increase), liquor (5 percent increase in sales tax) and gambling. House members did not pass the bills necessary to implement their budget, so they still do not have a viable plan for the Senate to review and debate. Governor Locke supports the House "sin" taxes despite his previously strong stand against increases.

The good news: The Senate's budget proposal implements many EFF recommendations and is balanced within existing revenue (no new taxes). Senators are so far holding the line against taxes.

Capital Budget
The House and Senate did not reach an agreement on a Capital Budget for 2003-05. Both of their proposals would raise the state's debt limit from 7 percent to 8.5 percent. House members want to spend about $30 million less than senators. Both budgets are full of pork and lack priorities.

Transportation
Lawmakers agreed on a five-cent per gallon gas tax increase, which will take effect July 1. The tax will raise $4.1 billion over the next ten years for transportation improvements. Unfortunately, the plan still lacks the crucial elements for success: independent performance audits; meaningful efficiency measures (such as repealed prevailing wage laws, repealed project labor agreements, and provisions for competitive bidding); priorities based on congestion relief; and project costs and start/stop dates.

When the bill passed, Secretary of Transportation Doug MacDonald stated that he was both "elated and terrified" at the prospect of handling such a big challenge. Given his department's track record for mismanagement and lack of accountability, we're terrified, too. We'll be closely monitoring their work.

Tuition for illegal aliens
Governor Locke is planning to veto a restriction on tuition funds adopted by the legislature. His veto will allow illegal aliens to pay in-state tuition, which means a large part of their expenses will be subsidized. They will be receiving better education benefits than the soldiers returning from the war!

Tax and fee increases
Here are some of the tax and fee increases passed this session. The list may not be comprehensive at time of printing.

• College tuition – increased between 6-9 percent

• Workers' compensation rates – average increase of 29 percent this year

• Unemployment insurance premiums – average increase of 15.4 percent this year

• Taxes on nursing homes – a shell game because the taxes will be returned to nursing homes and the new "contribution" will be matched by federal Medicaid, thus allowing them to collect even more.

The special session starts May 12. The good news: your voice matters. Be informed and involved through WashingtonVotes.org.

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org