Associated Press
OLYMPIA — A citizens group has launched an initiative to try to restore the state’s voter-approved spending limits law, Initiative 601, that lawmakers partially suspended this year.
The Democratic-controlled Legislature, with the blessings of Gov. Gary Locke, passed a bill last week that allows simple majority approval of tax increases, repeal of tax exemptions and use of money from the state’s reserve fund.
Before the change, I-601 required a two-thirds vote in both houses. But when Republicans refused to provide votes to help balance the budget, Democrats voted to suspend the supermajority requirements for this year and next year.
As part of a plan to erase $1.6 billion worth of red ink, Democrats spent $325 million from the state reserves, leaving about $53 million in the "rainy day" fund. Counting the ending fund balance, the state has total reserves of $306 million.
Democrats also rescinded about $30 million in tax exemptions and approved a number of fee increases. Some lawmakers said a general tax increase may be required next year, since the state could have a $1 billion budget problem.
In previous sessions, both parties have amended the spending limits to allow use of outside funds, including federal dollars, without lowering the general fund spending limits.
I-601 says spending should grow by no more than population growth plus inflation.
A citizens group advised by former state GOP executive director Lance Henderson and state Sen. Dino Rossi, R-Sammamish, on Tuesday announced an initiative drive to restore I-601.
"The Legislature has defied the will of the people," said Stephanie Linklater, a North Bend real estate agent who is prime sponsor of the initiative. "The voters need to tell the Legislature that we are still concerned about state spending growth and tax increases."
The initiative would:
The sponsors, Save Our Spending Limits, will try to gain the backing of Tim Eyman’s tax rebels, business and professional groups, and grass-roots groups concerned about state spending and taxes, said Henderson, who was director of the GOP from 1992 to 1995.
"It will be extremely popular," he predicted.
The group will have until July 5 to gather about 225,000 voter signatures. The initiative has not yet been assigned a number or ballot title.
Key lawmakers had no immediate reaction late Tuesday, but the original sponsor of I-601, former U.S. Rep. Linda Smith of Vancouver, was delighted. She is running a nonprofit humanitarian group, Shared Hope International, and doesn’t plan to work on the initiative, but likes what she hears.
"It has been effective, and I hate the idea of the Legislature going back to the era of binge and purge" with overspending during good times and leaving inadequate reserves for down times, she said in an interview.
"What the Legislature has been doing, you wouldn’t do with your own family budget. They are putting people in jeopardy."
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