Editorials

<< Previous   of   Next >>   ADVERTISEMENT   HAVE YOUR SAY Feel strongly about something? Share it with the community by writing a letter to the editor. You’ll need to include your name, address and daytime phone number. (We’ll only publish your name and hometown.) We reserve the right to edit letters, but if you keep yours to 250 words or less, we won’t ask you to shorten it. If your letter is published, please wait 30 days before submitting another. Send it to: E-mail: letters@heraldnet.com Mail: Letters section The Herald P.O. Box 930 Everett, WA 98206 Fax: 425-339-3458 Have a question about letters? Contact Carol MacPherson (cmacpherson@heraldnet.com or 425-339-3472).   Published: Thursday, October 22, 2009 IN OUR VIEW / INITIATIVE 1033 Eyman measure overreaches As it applies to state government, Tim Eyman’s Initiative 1033 is an understandable response to a 31 percent surge in spending during the last economic boom. That binge was unsustainable, and it forced deeper, more painful budget cuts last year than should have been necessary. Like most initiatives, though, I-1033 is a blunt instrument that overreaches, creating likely consequences that would actually discourage prudent financial stewardship and positive economic development, especially at the local level. We recommend voting no. I-1033 would limit annual revenue increases in state, county and city government general funds to a formula that combines inflation and population growth. School districts, fire districts, water districts and the like are exempt. Any revenue increases above the formula would have to be used to lower property taxes across the board the following year. Eyman says he’s giving government a long-term incentive to cut taxes proactively. That sounds reasonable until you consider the up-and-down cycle of the economy and its effect on tax revenues. The current downturn has drastically reduced sales-tax and business-tax revenues, forcing some local governments to cut important services and lay off staff. I-1033 would use 2009 as its budget baseline, keeping those services from being fully restored as the economy rebounds. It would also create disincentives for local governments to act wisely. Some of the best job-creating commercial developments are the product of partnerships between business and local governments — with private interests investing in plant and equipment and government providing some infrastructure improvements and basic services like police and fire protection. The local government’s investment is repaid in tax revenue produced by new economic activity, which also benefits parks, road maintenance, and other local services. Under I-1033, much or most of that new revenue would instead go to lower property taxes. Governments wouldn’t be able to afford entering into such partnerships, so they wouldn’t materialize. That helps explain why local chambers of commerce, whose members would receive much of the measure’s property-tax relief, oppose I-1033. I-1033’s inflation-plus-population cap doesn’t reflect the true cost of government, which includes expenses that outpace inflation rates, such as health care and construction costs. Plus, local governments already are under strict limits regarding tax increases. Eyman wants to provide a counterbalance to what he considers government’s insatiable appetite for taxing and spending. With state government, recent history shows he has a point. But cities and counties aren’t in the same boat. Voters elect local representatives to handle their money prudently and provide the services they need and want. To do so, in good times and bad, those officials need flexibility that I-1033 would take away. READER COMMENTS Log in or register to post new comment | Log out Why not make government accountable? Why can't government be forced to make hard decisions just like the rest of us in the down economy? Me and my friends and neighbors are cutting expenses because of the bad economy. Government on the other hand is spending money like nothing is wrong. When they want more they call it a crisis and raise taxes and I again have to cut while they do nothing. I really believe that if any government wants to raise taxes and fees they need to come to us and ask for it. just like we have to do with our employers. Todd Westby | Oct 30, 2009 7:33 am | 0 replies | View all | Post reply | Request removal Damn Right it's Understandable, but a "blunt instrument"? The massive tax increases of recent years followed by massive waste is an insult to every citizen. Tim Eyman's initiative is not only understandable, it is much too late and does not go far enough. The property owner is taxed to death in this state, to the point where you can own your home for years but LOSE it when you need it most (e.g. retirement) simply because taxes are too high. My taxes tripled in 8 years, and I know of a retired couple who, even 10 years ago, paid more per year in property taxes than they paid IN FULL for the property when they bought it decades earlier. I mean, really. HOW MANY TIMES do you have to buy your home? What we REALLY need in this state is something like California's old PROP 13 ... fix the property tax on the sales price AND LEAVE IT THERE. Then, provide a way for seniors to be TOTALLY EXEMPT from any tax amount over and above the tax based upon the original purchase price ... yes, that means they would be exempt from voter approved taxes. For the public at large to steal money and homes from seniors is criminal and must be stopped. Brad Ashforth | Oct 22, 2009 12:00 pm | 0 replies | View all | Post reply | Request removal

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