Budget blues may be boost for I-1183

Published 3:31 pm Friday, October 28, 2011

Supporters of Initiative 1183 think they gained a big selling point for the measure Thursday when Gov. Chris Gregoire suggested cities and counties no longer receive a share of liquor revenues.

Gregoire wants to stop sharing the profits and excise tax revenues from sales of hard liquor starting July 1, 2012. She estimates it will gitve the state another $61 million. It is one idea she wants lawmakers to consider when they gather for a special session next month to deal with a projected $2 billion hole in the state budget.

Backers of the initiative — which would put the state out of the business of selling hard liquor –are convinced language in the measure ensures cities and counties will keep receiving a piece of the financial action regardless of what the governor and lawmakers do in the emergency session.

“It is protected. That revenue stream will continue and it will increase in the future,” said Kathryn Stenger, spokeswoman for the Yes on 1183 campaign.

She cited language in Section 302 as the reason. It reads:

The distribution of spirits license fees under sections 103 and 105 of this act through the liquor revolving fund to border areas, counties, cities, towns, and the municipal research center must be made in a manner that provides that each category of recipients receive, in the aggregate, no less than it received from the liquor revolving fund during comparable periods prior to the effective date of this section. An additional distribution of ten million dollars per year from the spirits license fees must be provided to border areas, counties, cities, and towns through the liquor revolving fund for the purpose of enhancing public safety programs.

If Initiative 1183 passes, it will be certified by the start of the special session Nov. 28.