by Don C. Brunell
President, Association of
Washington Business

This fall Washington voters will decide whether or not to adopt a property takings initiative, I-933, modeled after Oregons Measure 37. Measure 37 was adopted by Oregon voters two years ago and was upheld by that states Supreme Court.
The I-933 campaign in Washington has been intense, with proponents parading through downtown Seattle on tractors and opponents trotting out all nine of the states living governors to denounce it.
In the meantime, Oregon voters are once again wrangling with an initiative that could ultimately find its way across the Washington border: Spending limits. This fall, Oregon voters will consider one of the nations most restrictive spending limits ever to qualify for a general election.
Measure 48 is much more sweeping than Washingtons now toothless I-601 spending limit because it applies to everything from college tuition to lottery proceeds, from agriculture inspection fees to state park charges, and from fishing licenses to unemployment benefits. It is like a Venus flytrap that catches every billing from state government.
Don McIntire, Oregons Tim Eyman, is pushing Measure 48, which, according to its opponents, would slice state government by 25 percent. The proposed change to that states constitution would limit all state spending to the increases in inflation and population.
Our states I-601, passed in 1994 and eroded over the last decade, only limited general fund spending to growth in personal income and inflation. It omitted tuition, park charges, licenses and fees on purpose, and thus did not apply to dedicated accounts for highway construction, workers comp and toxic site clean up.
Measure 48 is round two for McIntire. A decade ago, he penned Measure 5, which whacked property taxes and forced the Legislature to take control of school funding. In the aftermath, Oregon lawmakers have struggled to adequately finance schools, colleges and universities, especially during the economic downturn triggered by the events following 9-11. Tuition has skyrocketed, and the K-12 system was forced to charge for music and sports programs, for example.
While I-601 critics complained about its draconian impacts, the state has survived pretty well under it. However, when lawmakers in Olympia voted in 2005 to circumvent it, it was the death-knell.
According to the polls, Measure 48 is trailing by 10 to 12 points. If it fails, it doesnt mean it is going away. Spending limits are simmering on the back burner in many states and will come to a rapid boil if elected officials arent prudent.
In Washington, State Senators Mark Doumit (D-Cathlamet), who recently resigned to become executive director of Washington Forest Protection Association, and Joe Zarelli (R-Ridgefield) worked on a 601 replacement but could not strike an agreement before the session adjourned. In the House, tax reform lawmaker Jim McIntire (D-Seattle) is fashioning a tax overhaul which would include rate and spending caps.
Meanwhile, there are spending proposals on the table that will eat up the surplus tax revenues generated by our booming housing market and thriving economy if lawmakers are not prudent when they return to Olympia next January.
They must deal with out-of-control health care costs, pension fund shortfalls, new programs to help Puget Sound, increase safety in our schools and on our streets, and demands for more money to educate our kids from birth through graduate school. Taken individually, any one of these programs could drain our states savings account. Collectively, they break the bank.
So whats the answer?
In short, during their election campaigns, candidates must be careful what they promise. Once elected, they need to look at prioritizing spending and apply it to well thought out targeted programs that have accountability measures. Then they ought to agree on a spending limit that works and has teeth before Tim Eyman comes along with his own rendition.
Just throwing money on good ideas doesnt work. It brings popular outrage that is ultimately captured and packaged in ballot measures like Oregons Measure 48.