Eyman's latest plan targets state taxes

OLYMPIA — Anti-tax activist Tim Eyman, who makes a living putting initiatives on the ballot, has delivered another measure intended to make it more difficult for the state to raise taxes.

Like many of Eyman's ballot measures, it's hard to tell exactly what effect Initiative 960 would have if voters approve it in November.

In simple terms, the initiative would make it tougher for the Legislature to boost taxes by reaffirming, and broadening, an existing state law that requires a two-thirds vote by lawmakers to increase taxes. The measure also requires legislative approval of state agency fee increases.

Eyman argues I-960 is needed because legislators are out of control.

"The only thing we have to rely on is their own self-restraint and they've shown they have no self- restraint when it comes to taking more of the people's money," he said.

Opponents contend Eyman's initiative would bog down state government and waste money.

"We need a government based on facts, not intimidation, and this is an initiative driven by intimidation," said Christian Sinderman, a spokesman for the No on I-960 campaign.

The business-backed Washington Research Council knocked the measure recently, but concluded it's "unlikely to be either a great panacea or a great catastrophe."

Voters have approved four Eyman initiatives aimed at cutting or controlling tax increases in the past decade. The courts have tossed out two of them and one — a measure that limits increases in state and local property-tax collections to 1 percent a year — is on appeal before the state Supreme Court.

I-960 is meant to reaffirm Initiative 601, which was approved by Washington voters in 1993. That measure created a state spending limit and required a two-thirds vote in the Senate and House to approve certain tax increases.

Tinkering with I-601

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

Under state law, after two years have elapsed, the Legislature can change a law put in place by initiative with a simple majority vote. But it takes a two-thirds vote to make any changes during the first two years an initiative is in effect.

In the past, I-601 was interpreted as applying only to taxes that brought in money to the state general fund, such as the sales tax. It was not thought to apply to taxes that funded other accounts, such as the gas tax.

Eyman says that in addition to reinforcing the existing two-thirds vote requirement, I-960 would broaden the law to include all taxes, including the gas tax.

The only way to avoid the two-thirds vote requirement would be for the Legislature to put a referendum before voters asking them to approve a tax increase.

The initiative also would:

• Require that any tax increase approved by the Legislature also be placed on the ballot for a nonbinding, public advisory vote.

• Make the Legislature approve state agency fee increases. Currently, agencies can increase fees on their own as long as they don't exceed limits set by state law.

• Require additional public notification when the Legislature considers tax bills, and a 10-year estimate of the costs.

Sinderman, a Democratic consultant, argues the two-thirds vote requirement and the mandatory advisory votes on tax increases would intimidate legislators from taking steps to address critical needs in the state. It also would waste money, he said, by requiring the state to hold advisory votes that have no meaning.

"It makes it more difficult to address priorities that voters have identified like transportation, like health care," he said.

Fundraising tallies

The No on I-960 campaign has raised more than $1 million and has paid for television advertisements attacking the measure. A broad coalition including the Washington Education Association, the Washington State Labor Council, the Sierra Club and the League of Women Voters, oppose the initiative.

Eyman has raised more than $600,000, with most of that 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.

In addition, the state Republican Party has endorsed I-960.

"Republicans always appreciated I-601 and the protections it provided for many years and have been disappointed that many of those protections have been gutted by the Legislature," said Luke Esser, a former state senator who is now chairman of the state GOP.

I-960 is more important than ever, Esser argues, because of the large majorities Democrats hold in the state House and Senate. However, Republican and Democratic lawmakers alike had a hand in weakening I-601 in the past.

Esser said there's remorse within the GOP for not doing a better job of protecting the initiative's requirements.

"I think there is a lesson learned there, and America is all about second chances," he said. "This is a second chance for 601. Republicans at least will make the most of that second chance."

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