2005 STEWARDSHIP PROJECT

July 19, 2005

New lawsuit filed to preserve I-601 tax and spending limits

OLYMPIA—Groups representing taxpayers today filed a lawsuit to preserve the Initiative 601 spending limits, after the Supreme Court ruled that the Legislature could exempt itself from the people’s right to a referendum on a bill gutting the two-thirds majority required to raise taxes.

The Washington Farm Bureau, the National Federation of Independent Business (NFIB), the Washington State Grange, the Building Industry Association of Washington (BIAW), the Evergreen Freedom Foundation (EFF) and the Washington Association of REALTORS® today filed a declaratory judgment action in Snohomish County. The suit asks the court to invalidate new taxes that were passed without a vote of the people, as required under a section of I-601 that remains in place. The suit also asks the court to invalidate the law that scrapped the requirement of a two-thirds majority vote to raise taxes.

“The Legislature engaged in classic doublespeak. In legislation this year, it claims to honor 601’s spending limits, while at the same time enacting additional taxes which violate the spending limit,” says Richard Stephens, attorney for the Plaintiffs.

Named in the lawsuit are the Governor, the expenditure limit committee, and the State of Washington. Another portion of the lawsuit accuses the legislature of shifting $250 million from one account to another for the sole purpose of artificially increasing the state’s adopted expenditure limit.

“The people adopted I-601 to rein in the growth of state spending and tax increases, not to test the creativity of legislators in getting around the limits. If the Court follows the money it will see the $250 million in fund shifts is nothing more than a budget shell game designed to circumvent I-601’s protections,” said Bob Williams of EFF.

The group had earlier attempted to file a referendum on a law that scrapped the two-thirds majority requirement to raise taxes. Lawmakers were able to block the referendum by declaring it an emergency. Last week, the Supreme Court ruled that the Legislature can declare anything it wants to be an "emergency".

Another cause of action alleges that Senate Bill 6078 is unconstitutional because it amends certain provisions of I-601 without spelling them out in the new law.

“The constitution is very plain — the legislature cannot leave a law on the books and change it at the same time. Otherwise you have, as is the case here, two conflicting laws,” said Farm Bureau’s government relations director Dan Wood. “By the way, this is precisely why the courts threw out a popular Initiative 695.”

“The legislature cannot pretend to support voter-mandated limits on taxing and spending while at the same time repealing those limits,” said Carolyn Logue, state director for NFIB. “The voters can see right through the charade.”

“Historically the Grange has fought for the rights of the people,” said Terry Hunt of the Washington state Grange. “That’s what this lawsuit is all about. We’re standing up to say that it’s not OK okay for these branches of government to overturn the rights of the people simply because they don’t like what the people have to say.”

For more information, contact the organizations listed or visit www.save601.org.

Additional Information
SSB 6078 complaint
Budget Shell Games 101
www.save601.org

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