Muni News
VOLUME 90, ISSUE 4  - APRIL/MAY 2000

Legislature Struggles to Address Shortfalls Caused By I-695
By Virginia Gunby, Trustee

Legal Decision on I-695 On 3/14/00, King County Superior Court Judge Robert Alford, in a critical decision, found that I-695 was unconstitutional and specifically flawed in four areas.

1. It established an unconstitutional referendum process. 
2. It unconstitutionally covered more than one subject. 
3. Not all subjects were covered in the ballot title, as required by the State Constitution. 
4. The full text of any act or section being amended was not clearly stated. This is needed to avoid confusion as to I-695's complete meaning and its impact on current laws.

Judge Alford blocked implementation of Section 2 requiring voter approval of every tax and fee increase. He let stand the $30 license tab fees to prevent any disruption of the 1/1/00 fee implementation until the Supreme Court can rule on the case. The decision has been appealed and will be before the State Supreme Court this summer or after the judicial elections in the fall.

In the meantime the Special Legislative Session approved, and the Governor signed into law, legislation that permanently establishes the flat state Vehicle License Fee at $30.

Legislative Gridlock equals Mixed Messages The 2000 Legislative Sessions were hung-up on whether to initiate the use of state General Funds, not earmarked for transportation, to mitigate the I-695 loss of funds for highways, transit and ferry operations. General funds have not been used for transportation purposes in Washington since the 1930s. The state general budget and capital bonds and the transportation budget and bonds, have been kept separate. There are separate Legislative Committees, separate staffs, separate sources of funds, and separate bonding authority. This session the two staffs had to coordinate budget revisions with House and Senate conference leadership. This greatly complicated negotiations to revise the budget.

I-695 Challenges the regular and special Sessions During the "short" regular Legislative session and the thirty-day special Session, there has been an array of transportation proposals under consideration. They reflect divergent points of view in response to the impact of I-695, and in response to the new proposed state Initiative 711 and a property tax reduction initiative. If Initiative 711, titled, "Traffic Improvement Initiative," garners the required number of signatures, it will be on the ballot this fall. It would earmark 90% of all transportation taxes (including existing voter approved transit taxes) for roads. It would allow "equal access to all auto lanes", which means opening the HOV lanes for all vehicles. Finally, it would require additional state performance audits of all transportation agencies.

During the Special Session the Senate and the House became deadlocked. Two important transportation actions that did pass were the graduated driver's license and improved child seat restraint laws. However, negotiations between the split House and the Senate stalled over the final revised state budget and the transportation budget. They did not complete negotiations by the April 8th deadline. Therefore, after a recess and legislative agreement has been reached, the Governor will call another brief session for final action.

The House and Senate have a tentative “transportation deal" that includes $80 Million for one year statewide to replace transit funds lost from the Motor Vehicle Excise Tax (“MVET”). (Metro King County transit lost $100 Million in MVET operations funds in 2000.) They also tentatively agreed to change the local option countywide sales tax from the current .6% to .9%, subject to a local vote. If approved, the increased funds could be split 80% to fund local transit service and 20% for local road improvements. They also are discussing the use of General Funds and transportation funds for bonding state highway projects, funds for passenger and auto ferries for one year and $20 M for a one year sales tax credit to help Sound Transit pay for extending the light rail line to Northgate. There is no state funding to support the operation of a second Amtrak train to Vancouver B.C.

The above revenue amounts and legislation are all subject to change. Trends in the negotiations indicate that in the yet unwritten final agreement the 2000 Legislature appears unlikely to agree to replace all lost MVET funds. It is also unlikely to provide new state support for interstate rail or to assist local and regional transit in urban areas. With the gubernatorial and legislative races and the proposed initiatives facing voters this fall, the anti-tax/anti-transit trends continue. Help may come from the Governor's Blue Ribbon Commission on Transportation, which after two years of study will be making recommendations to the Governor, the Legislature and the people on how to provide funds for an adequate transportation system.