Wash. Senate starts clearing way for tax hikes

The Washington state Legislature's Democratic majority started clearing the way for tax increases Tuesday with its first major vote to brush aside Tim Eyman's tax-limiting Initiative 960.

But in an unusual statement issued Tuesday night, Democratic senators said they had accidentally voted on the wrong version of their own bill, and must redo the vote on the correct bill as soon as possible.

Approved by voters in 2007, I-960 required that any tax increases win approval from two-thirds of the Legislature - a very difficult hurdle to clear. The 26-23 vote Tuesday endorsed suspension of that rule until July 2011, when the next two-year budget cycle begins.

Democrats, however, said they actually meant to suspend the entirety of I-960, including the requirement for public advisory votes on tax increases that are deemed an emergency by lawmakers. It was unclear how quickly the majority would be able to get a replacement bill to the floor.

"Suspending the entire initiative allows for prompt action now, avoiding the added delay and additional cost to the state that a November public advisory vote would require," said Senate Ways and Means Chairwoman Margarita Prentice, D-Renton.

Democratic lawmakers plan to increase taxes and cut spending to balance the state's $2.6 billion budget deficit, but they don't have enough members to get a two-thirds vote in either the Senate or House.

Lawmakers can amend initiatives with a simple majority vote after they've been on the books for two years, making this the first legislative session that Democrats can suspend I-960.

The changes to I-960 must clear both chambers and be signed into law by Gov. Chris Gregoire before lawmakers can move ahead with tax-raising votes. Gregoire is expected to approve the Legislature's plan.

Republican Senators, stuck in a minority that affords them little control over legislative proceedings, loudly objected to the bill Tuesday, saying Democrats were ignoring the will of voters.

"We'll be telling the people to shut up and pay up, and we know what's best," said Sen. Janea Holmquist, R-Moses Lake.

Democrats, however, pointed out that both parties have suspended and amended voter-approved laws over the years, including initiatives that passed with much larger margins than I-960's 51 percent.

Setting aside I-960's tax hurdle is necessary to sustain critical education, health care and social service programs and ensure that more workers don't head for the unemployment line, Democrats said.

"The depth of the crisis we have here is the worst since the Great Depression," said Sen. Jim Hargrove, D-Hoquiam.

The bill approved Tuesday was much less sweeping than its original draft, which would have altered several provisions of I-960 beyond the two-thirds vote requirement.

Eyman, the conservative activist who sponsored I-960, said he was gratified that Senate Democrats at least left in place those secondary features, including extensive public notices about legislative bills and advisory votes on tax increases.

"Ninety percent of 960 is the two-thirds," he said. "But the 10 percent - give the people their crumbs on the table. Give us some transparency."

That gratification was likely to be short-lived in light of the Democrats' Tuesday night statement that they'd voted incorrectly.

Senators also approved a trio of bills that take a first swipe at trimming state expenses.

One measure would cut about $45 million from general state spending by restricting hiring, service contracting, out-of-state travel and larger equipment purchases, with some exceptions. It was approved on a 45-3 vote and heads to the House for further debate.

Another bill extends a freeze on pay raises for nonunion state workers. It was approved on a 33-15 vote and heads to Gregoire's desk.

The final bill bans performance bonuses for many state workers, a change aimed squarely at Republican state Attorney General Rob McKenna, who is seen as a potential candidate for governor in 2012.

Democrats have complained that McKenna was far too generous with performance bonuses for his employees last year, while McKenna has defended the bonuses as necessary to retain quality staff. The bill was approved on a 48-0 vote and will be sent to the House for consideration.

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The I-960 suspension is Senate Bill 6843. The early savings bill is House Bill 2921. The pay freezes are SB 6382. The performance bonus bill is HB 2998.

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On the Net:

Washington state Legislature, http://www.leg.wa.gov