2006 PRESS RELEASES

February 21, 2006

Legislature Continues to Ignore I-601
Coalition fights illegal budget shell games

OLYMPIA—Groups representing taxpayers filed a motion asking a Snohomish County Superior Court to set aside the legislature's illegal tax increases last session designed to disregard sections of I-601 that have not yet been repealed.

Washington Farm Bureau, the National Federation of Independent Business (NFIB), the Washington State Grange, the Building Industry Association of Washington (BIAW), the Washington Association of REALTORS® and the Evergreen Freedom Foundation filed suit in Snohomish County Superior Court last July, alleging that the legislature had failed to follow the law in enacting almost one billion in new taxes and spending measures. The case is set for a hearing on March 17.

"Legislators need to make a decision - either honor I-601 or repeal it," said coalition member and senior budget analyst Jason Mercier of the Evergreen Freedom Foundation. "It's time to end these budget games."

In its court filing, the Save I-601 coalition points to laws which establish a budget limit, and state that taxes and revenue increases in excess of the limit must be referred to a vote of the people. In 2005, the legislature adopted a budget that exceeded the spending limit by approximately $900 million and included several new taxes, most noteworthy among them a new Washington only estate tax.

"Legislators know that if they repeal I-601, they will not be re-elected," added Carolyn Logue, state director for the National Federation of Independent Business, "and so they disregard it, and direct their staff to shift money from one pot to another for no other reason than to evade the law."

In 2005, the legislature shifted 250 million dollars from the general fund, to a health services account, to a violence and drug awareness account, and immediately back to the general fund, all on consecutive days. And, according to attorneys for the government, these funds shifts had the effect of increasing the spending limit.

"It's total hypocrisy to artificially increase the I-601 limit while telling voters you are living within the spending limit they created," said Mercier.

In this year's supplemental budget, legislators continue ignoring the intent of I-601.

"Instead of transferring $700 million to the protected I-601 emergency reserve account, legislators are creating new 'reserve accounts' and declaring the appropriations to these accounts have the effect of increasing the spending limit," said Mercier. "Only in Olympia is saving money considered an expenditure."

Additional Information
New lawsuit filed to preserve I-601 tax and spending limits
Hearing set on government refusal to release budget records

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