Tim Eyman kicked off 2009 by filing another initiative to the people, one that seeks to limit the growth of all taxes and revenues that cities, counties and the state use to operate their respective governments.
Eyman’s new measure, which he filed Monday, would apply to the state, all 39 counties and all 281 cities, but not to schools and special districts. It would limit the overall growth of tax collections to no more than the rate of inflation each year unless the public voted to approve bigger increases.
State and local governments, as well as fire, park, port, library and other taxing districts, already have caps on how much they can raise their property taxes from one year to the next. That limit is 1 percent or the rate of inflation, whichever is less, for most of those taxing districts.
That property tax limit would remain, but Eyman’s newest measure would go one step further. It would impose a growth limit on the combined total of all taxes, fees and federal funds that those governments could deposit into their general funds.
The general fund is a government’s main checking account, the one it uses to pay most of its employees and to provide programs and services to its citizens. In the case of the state, the general fund is where most property, sale and business taxes are deposited. It’s also where the state puts most of the money it gets from the federal government.
Eyman’s proposal says that if the amount of money from all those sources exceeds the inflation rate, the government must refund the excess to taxpayers by reducing their property taxes.
“This is the initiative that our supporters have been waiting for for 10 years,” Eyman told reporters in Olympia. “It really deters tax increases.”
He has until July 3 to collect 241,153 valid signatures from registered votes to qualify for the November general election ballot.
Jim Justin, assistant director of the Association of Washington Cities, said Eyman’s proposal is confusing and places an unrealistically small limit on local governments. Even the state spending limit takes into account the growth in state population, but Eyman’s proposal does not, he said.
“Our members (cities) are prudent,” he said. “During good times we actually build up reserves so we can use money now, in poor times, without seeking additional money from voters.
“We wouldn’t be able to build reserves, because they’d be going to lower property taxes,” Justin added.
Eyman said 2009 would establish the base tax collection level. The first limit on total tax collection increases would be for 2010.
Eyman didn’t answer questions pertaining to his campaign or personal finances and told reporters to read his Public Disclosure Commission filings.
Mike Dunmire, the Woodinville millionaire who has bankrolled past Eyman campaigns, said he was disappointed by the defeat of I-985 – another Eyman measure – this past November, but that he’s still backing Eyman.
“I plan to be a significant contributor during the course of the year, but I don’t know how much yet,” Dunmire said.
Dunmire said he also plans to kick in $100,000 at the end of January to the special fund that Eyman and his partners use to pay themselves for work on their initiative campaigns. Dunmire said that should match an estimated $100,000 that Eyman and Spokane residents Jack and Mike Fagan have collected from smaller contributors, meaning Eyman should get $100,000 and the Fagans should get $50,000 apiece for their work on I-985.
Joseph Turner: 253-597-8436
blogs.thenewstribune.com/politics
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