Governor, lawmakers hint at putting bond proposals on ballot

OLYMPIA — Gov. Chris Gregoire is interested in sending voters a bond measure to raise money for construction projects across the state, and she's not the only lawmaker exploring the idea.

Senate Democratic leaders also are eyeing bond- issue proposals, and House Capital Budget Chairman Hans Dunshee, D-Snohomish, says he's studying a measure that would raise about $760 million to weatherize every public building in the state, including schools.

Gregoire, who promised during the 2008 election not to raise taxes to help balance the state budget, broached the idea of a bond measure during a news conference on Monday.

"I am interested in asking the people if they would consider a bond measure that ... would allow us to potentially put people to work. With projects out there like K-12 construction, or technology renovation or green renovation of our K-12 system. Something along the line where it's real jobs on the ground."

This is the first time the governor has indicated any support for a ballot measure this year. She pitched it as a jobs plan.

"The motivation here is to create more jobs," she said. "I desperately want to put people back to work. I want to put an infusion of dollars into the system."

Gregoire would not say how much money she'd like the state to borrow, how to pay for the debt or what the money could be used for except in vague terms. In fact, it's not clear how the governor would even be involved in any proposal. Ballot measures approved by the Legislature go directly to voters without her signature.

The state can borrow money to pay for construction projects without voter permission. However, voter-approved projects are not subject to constitutional limits on debt. That could conceivably allow the state to borrow more money.

A bond issue could be paid off using existing state revenue or with a tax increase. Lawmakers have said they would send any tax proposal to the ballot.

Dunshee said the bond measure he's looking into would cost $49 million annually to finance the debt, but he says it would save $80 million a year in energy costs. The proposal would pay for such things as new insulation and heating and air-conditioning systems. Dunshee said he has not drafted legislation.

House and Senate leaders also are considering asking voters to increase taxes to pay for certain state services, given a budget shortfall projected at around $8 billion. Lawmakers aren't talking about the details.

Gregoire has said it's up to the Legislature to decide whether to send voters a ballot measure that increases taxes to pay for state services. "I've never said the Legislature should be precluded from taking an issue like this to a vote of the people," she said. "It bypasses me."

As for a bond measure, Gregoire said she'd want to make sure such a proposal would not jeopardize the state's bond rating.

State Sen. Ed Murray, D-Seattle, chairman of the Senate Democratic Caucus, said if a bond measure were to be put on the ballot, he thinks there should be a tax to pay for it, to help protect the state's bond rating.

Murray said sending voters a bond measure could create a political problem. "You'll have people who are angry about why we're cutting all these programs at the same time we're doing a tax for things that are not those programs," he said.

Andrew Garber: 360-236-8268 or agarber@seattletimes.com