The Municipal League of King County

Does Not Take a Position

On I-884 The Education Initiative

On the November 2^nd, 2004 General Election Ballot

Summary

 I-884 creates a dedicated Washington State Education Trust Fund through a 1% sales tax increase statewide (raising the state’s sales tax from 6.5% to 7.5%).  “No supplanting” language requires the Legislature to maintain current levels of education funding before spending any trust funds. 

 The measure is the result of a year-long effort by the League of Education Voters to create increased funding for education in Washington State.  LEV met statewide with parents, teachers, school and college officials, business leaders, and citizens.  Initiative I-884 is designed to (1) ensure students are ready for school, (2) have support to succeed in school grades K-12, and (3) have access to affordable higher education opportunities.  It proposes to:

• Create 10,000 new preschool spaces for children who most need them;
• Reduce class sizes by fully funding I-728;
• Raise teacher base pay and school, community and technical college employee salaries to I-728 level;
• Provide additional high school classes and support parent involvement;
• Expand Promise scholarships for the top 30% of graduating seniors, and improve college financial aid for working and middle-class students;
• Fund 25,000 additional college enrollment slots at community and technical colleges and four-year universities and 7,000 new enrollments in high demand fields including skilled workforce training, nursing, and engineering;
• Invest in university-based research that generates new businesses and jobs.

Initiative proponents estimate the following financial impact on tax-payers:

Family Income                                               Monthly Tax Increase

$25,000-30,000                                               Less than $12

$30,000-40,000                                               $13-$14

$40,000-50,000                                               $15-$18

$50,000-60,000                                               $19-$20

ARGUMENTS FOR THE MEASURE

 I-884 proponents made the following arguments in support of the measure: 

·         The state’s education system is severely underfunded and polling indicates that education is the voters’ top concern. 

·         The measure addresses needs in all parts of the state’s education system:  early learning, K-12, and higher education; 

·         The sales tax “selected itself” throughout the state-wide meetings as simple, familiar and more fair than any other potential revenue source; 

·         The measure adds slots and improves quality of state ECEAP programs by tying quality standards to learning outcomes for all participating programs;

·         The initiative brings new focus on high schools through a combination of assistance to at-risk students and accelerated learning opportunities for high achievers;

·         I-884 supports teachers and their skills with financial inducements for skill improvement and professional certification and loan forgiveness to teachers certified in high need areas;

·         The measure increases student access to community and technical colleges, and four-year institutions;

·         I-884 establishes a Citizen Oversight Board of 11 members who will ensure trust funds are spent only for authorized uses, ensure trust funds do not supplant existing funds, monitor results, and recommend necessary changes to the Governor and the Legislature.

ARGUMENTS AGAINST THE MEASURE

 I-884 opponents cited the following arguments against the measure: 

·         I-884 is a tax initiative, but has masked that in calling itself an Education Trust Fund, for purposes of raising over a billion dollars per year;

·         Washington’s Solicitor General has declared that I-884 is not a “trust fund” but rather a statutory dedicated fund, which can be redirected or overridden by the Legislature by a 2/3rds vote at any time, or a simple majority after two years;

·         Accountability has no defined outcomes, but rather a “Trust Us” approach, with no specific benchmarks at the outset, and no consequences if failure occurs; 

·         The Oversight Board mechanism is questionable; the  State Auditor has no vote, and is permitted only limited financial audits as stipulated in state law (no performance audits);

·         Research indicates that some of the targeted programs demonstrate no long-term educational benefits (preschool programs such as Head Start and Title I, class-size reduction, bilingual education);

·         Rather than change the course toward more effective programs, the initiative intends to spend more money doing more of the same thing that is not working now;

·         The state’s current salary structure for teachers, linking pay levels to seniority rather than performance, rewards mediocre teachers, and provides disincentives for excellent ones;

·         The impact of increased taxes will crush already declining jobs, especially in manufacturing and will burden retailers in border areas of the state;

·         The sales tax is a regressive tax and the tax burden on the poorest will increase.

 POSITION and RATIONALE

 The Municipal League has not taken a position on I-884.  The Board of Trustees did not have a 2/3 majority to support or to oppose the measure.  A 2/3 supermajority is required by Municipal League bylaws and rules in order for the organization to take a position on a ballot measure.