25 Commonsense Ways to Implement Initiative 695
1999-20
The people of Washington state are overtaxed. On November 2nd they demonstrated how strongly they feel about the heavy tax burden by enacting by a wide margin one of the largest tax cuts in state history.
In a single step, Initiative 695 repeals the state’s car tax (called MVET, for Motor Vehicle Excise Tax) and replaces it with a flat $30.00 annual fee. And to insure that government leaders do not simply raise other taxes, the authors of Initiative 695 included a major new limitation on the growth of government spending. Beginning January 1, 2000 all proposed increases in existing taxes, fees and “any monetary charge of government” must be submitted to the voters for approval.
The contentious public debate over Initiative 695 resulted in an unexpectedly high voter turnout for an off-year election. Some 1,767,000 ballots, representing an impressive 58% of eligible voters, were cast in the election. Initiative 695 sailed to easy passage with just over 56% of the vote, garnering majorities in 34 of Washington’s 39 counties.
Passage of Initiative 695 presents a challenge for state and local government leaders. Repeal of the car tax reduces the revenues the state collects by $764 million a year. These funds helped pay for police, firefighters, road building and public health, in part through city and county budgets.
Many elected officials now say their only choices are to dip into reserves or sharply cut back on these basic services. But is this really true?
There are actually dozens of ways state and local officials can implement Initiative 695 without sacrificing the essential mission of government.
The Washington Institute Foundation has published a study that presents 25 practical, commonsense ways, some immediate and others long-range, that state and local governments can use to adjust to Initiative 695’s requirements by eliminating waste and inefficiency.
These proposals are listed on the reverse. They are not presented in any particular order. The intention here is to lay out a range of ideas that contribute to the public debate over the best way to implement the Initiative 695 law.
Voters will react against any efforts by their leaders to “teach people a lesson” by eliminating essential government. The specific proposals given here demonstrate that drastic budget cuts are not necessary. Instead, careful and intelligent imple-mentation of Initiative 695 will help restore the people’s trust in government.
25 Commonsense Ways to Implement Initiative 695
The Washington Institute Foundation
1. Devote Tobacco-Settlement to Health Programs
Use $323 million in tobacco-settlement funds received in 1999 to replace lost county health funds.
2. Tap Savings from Reduced Welfare Caseload
DSHS case loads have dropped 31% in three years, yet the agency employs 6% more people.
3. Suspend 1% for the Arts Program.
Temporarily suspending public arts spending would free up almost $1 million.
4. Eliminate Washington’s Presidential Primary
We’re spending $3.2 million to choose 12 Republican delegates.
5. End Government “Walking Around” Money
The King County Council gives $1.3 million in uncommitted tax money to its members each year.
6. Contracting Out Highway Maintenance
Ending the ban on contracting out would save $25 million a year in highway maintenance.
7. End Prevailing Wage in Highway Construction
Current law needlessly drives up government construction costs.
8. End Prevailing Wage in School Construction
Prevailing wage adds 20% to costs. Why build only five schools for the price of six?
9. Open Local Garbage Collection to Competition
Opening garbage service to competition creates real choice and lower cost for homeowners.
10. Compete for Building and Ground Maintenance
Private building owners save through competition, why shouldn’t government?
11. Privatize Washington’s Liquor Stores
The government should end its outdated, 65-year monopoly on hard-liquor sales.
12. Privatize Passenger Ferry Service
The state doesn’t need to shut down passenger ferry service; the private sector can provide it.
13. Contract Out Bill Collections for City Utilities
Saves up to 30% of current costs.
14. Contract Out for Child Welfare Services
Contracting out could reduce by months or years the time troubled children now spend in foster care.
15. Contract Out Public Health Services
Contracting out saved Pierce County $4.2 million, and almost doubled the number of people served.
16. Contract Out Park Operations and Maintenance
Contracting out would save 20%.
17. Other Contracting Out Opportunities
Indianapolis, Chicago, L.A. and dozens of other cities are already benefiting from contracting out.
18. End Free Bus Passes to County Employees
Saves over $1.4 million.
19. Privatize King County’s Boeing Field
Would bring immediate revenues and add to the long-term tax base of the county.
20. Restrain the Growth of Government Spending
State government has grown by 11% in the last two years, over twice the rate of inflation.
21. Restrain the Growth of Government Workforce
The state plans to add more than 5,109 new hires to its payroll over the next two years.
22. Restrain the Growth of County and City Workforces
Local governments can achieve major savings by simply restraining their own growth.
23. Fully Implement Referendum 47 Property Tax Limitation
Passed by voters in 1997 yet largely ignored, full implementation would restore trust in government.
24. Revitalize the State Productivity Board
This state board can be used to root out government waste at the deepest levels of the bureaucracy.
25. Create an Alliance for Accountability
Proposed by State Auditor Brian Sonntag, this new “Grace Commission” offers a chance to thoroughly review all public spending while restoring trust in state and local government.