Eyman tax initiative likely to make ballot

OLYMPIA — An initiative intended to make it tougher for the Legislature to increase taxes, and for state agencies to increase fees, appears headed for the November ballot.

Tim Eyman, who earns a living trying to pass ballot measures, says he turned in more than enough signatures Friday to get Initiative 960 before voters.

Opponents have already started a campaign to defeat the measure, which they contend would cause gridlock in the Legislature.

If it qualifies, I-960 will be the only initiative on the ballot. But it would be joined by four proposed constitutional amendments and possibly by a referendum to repeal a new insurance law. The new law allows a court to approve triple damages if an insurance company unreasonably denies coverage or payment. The deadline for referendum signatures is July 21.

Eyman says he turned in 314,566 signatures for I-960 on Friday, the deadline for initiative petitions. State law required nearly 225,000 valid signatures, but initiative backers generally need to collect 25 to 30 percent more to make sure they have enough.

Eyman says I-960 "puts Olympia on a much shorter leash."

He says the initiative would reinforce a law that requires a two-thirds vote in the Senate and House to pass certain tax increases. Initiative 960, however, broadens the vote requirement to include all taxes, including the gas tax.

Any tax increase also would be placed on the ballot for a public advisory vote.

In addition, the measure would require the Legislature to approve any state agency fee increases. Currently, agencies can increase fees on their own as long as they don't exceed limits set by state law.

The initiative also requires additional public notification when the Legislature considers tax bills, and a 10-year estimate of the costs.

Eyman said the initiative is largely intended to reinstate Initiative 601, a spending-limit measure approved by Washington voters in 1993.

Over the years, the Legislature has tinkered with I-601 to get around its spending limit. Lawmakers also have suspended the two-thirds voting requirement in the past, allowing them to increase taxes with a simple majority vote.

"If Olympia can't restrain itself, 960 will be there to protect the taxpayers," Eyman said Friday.

However, he acknowledged the Legislature could still suspend the two-thirds voting requirement for certain tax increases, even if I-960 were to pass.

In any case, Eyman argues that if voters were to approve his initiative, the Legislature would be under intense public pressure not to sidestep the provision.

Opponents say Eyman oversimplifies the initiative's impact.

"It is designed to tie state government in knots and make it less efficient and less responsive," said Christian Sinderman, a Democratic consultant involved in the No on I-960 campaign. "This would expand the supermajority to even the simplest of transactions."

Opponents say the initiative is complex and difficult to interpret, but it could be read to require a two-thirds vote for such actions as taking existing tax revenue and using it to increase funding for education and health care.

In other words, they say, simply passing the state budget — even without any tax increases — could require a two-thirds vote.

Eyman disagrees. "The opponents have been misreading and mischaracterizing I-960 from the very beginning," he said.

Eyman's initiative campaign has raised more than $480,000, with most of the money coming from Michael Dunmire, an investment adviser from Woodinville who has contributed to Eyman's efforts before. The bulk of the money was spent on paid signature gathering.

The state Public Disclosure Commission has no contribution reports for No on I-960 yet.

The initiative's opponents are challenging the initiative in King County Superior Court. They argue that parts of Eyman's measure need a constitutional amendment, which cannot be done by citizen initiative.

Andrew Garber: 360-943-9882 or agarber@seattletimes.com