WA governor approves suspension of anti-tax law

A measure to temporarily suspend the tax-limiting constraints placed on lawmakers by a voter-approved initiative was signed into law by Gov. Chris Gregoire on Wednesday.

Gregoire signed the bill just days after the Legislature approved the measure. The measure takes effect immediately.

"I hope, I expect, the people of the state of Washington will understand we're in unprecedented times," she said.

The bill spurred two weeks of heated debate in both the House and Senate. Initiative 960 makes it harder for lawmakers to raise taxes or to close tax exemptions, which is why the Democratic majority needed the suspension.

Budget writers want a mix of spending cuts, tax increases and one-time fixes to fill a $2.8 billion deficit.

House and Senate Democrats both unveiled budget proposals Tuesday, with the Senate pushing for a temporary sales tax increase and an additional $1-per-pack tax on cigarettes, and closing numerous tax exemptions. House Democrats have not yet released the revenue-raising part of their budget proposal, though they are expected to do so by the end of the week.

Gregoire said extra revenue is needed this year to prevent further cuts to state programs for vulnerable populations, like the elderly or those with special needs.

While she'd like to avoid higher taxes, Gregoire said "the fact of the matter is I think that would be an immoral budget, a budget I couldn't live with."

"At the end of the day, I have to do not only what my head says but what my values are," she said.

The initiative, approved by voters in 2007, requires two-thirds approval from legislators to raise taxes - a significant hurdle compared with the simple majority needed to pass other measures. The bill signed by Gregoire would pause most of the initiative's provisions until July 2011, when the next two-year budget cycle begins.

The measure doesn't suspend all of the initiative: e-mail notifications sent to the public about proposed tax increases, including 10-year cost projections of the measures, will continue. However, the requirement of a nonbinding advisory vote by the public on taxes passed by the Legislature is suspended until July 2011. Also suspended was listing how lawmakers voted on taxes in the voter pamphlet sent out before elections.

Republicans had asked Gregoire to veto the section of the measure that suspends the public advisory vote on tax increases, but Gregoire signed the measure as it was passed by the Legislature.

"I held out a little hope that at the end of day the majority is getting what they want but that they could let the public have a little win in this," said Sen. Joe Zarelli, R-Ridgefield, one of the Republicans who signed on to the letter to Gregoire. "I'm disappointed."

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 with their current majorities.

Initiative sponsor Tim Eyman hovered behind Gregoire's chair as she signed the bill, shaking his head several times and looking exasperated.

He got his picture taken with Gregoire after the signing, at first posing holding his nose and giving a thumbs down sign, getting a joking reprimand from Gregoire.

"You must behave," she said.

After the signing, Eyman, said that it was "extremely disappointing" to watch Gregoire sign the measure.

"They know what they're doing is not what the voters want, but they seem darn hell-bent to do it anyway," he said. "Even though we saw it coming, it's still absolutely galling to watch it actually happen."

Gregoire has proposed about $759 million in tax increases. She'd also cut about $1 billion and use one-time fixes to bridge the rest of the budget gap.

The Senate plan assumes roughly $920 million in tax increases and about $840 million in spending cuts. About $500 million would come from fund transfers and other one-time fixes, with federal assistance penciled in for about $580 million.

The House Democrats' budget plan calls for about $860 million in higher taxes and about $650 million in spending cuts. Some $550 million would be solved with fund transfers and other one-time solutions, while federal bailouts would account for about $640 million.

Both chambers must come to agreement on a final budget plan before they can pass it on to Gregoire for her approval. The legislative session is scheduled to end March 11 but could go into overtime if lawmakers are unable to reach an agreement before then.

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The I-960 suspension is Senate Bill 6130.

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On the Net:

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

Gov. Chris Gregoire, http://www.governor.wa.gov/