Legislative Response

So yesterday, I wrote my State Reps (as I do when I feel they are not listening very closely).  Here is what I wrote:

Leave I-960 Alone

I am writing this to remind you and your office, that I-960 is the will of the people, the voting public you serve.  We want a say in how our taxes are raised, which means you need to find another way to pay the states bills until the public has had a chance to vote on any tax increases.  If the City of Everett was able to clear their debt and balance their budget DESPITE the loss of tax revenue, then I expect the state can do the same.  I know there is waste in state government, places we can consolidate programs without cutting critical services (fire, police, schools, etc. are critical services, not state owned aircraft or vehicle fleets), staff that can be retired, or put to part time, or laid off.  Salaries that can be reduced.  I suggest you look a lot harder for places to balance the budget (without touching key services) before you tamper with I-960, or I will look a lot harder next election for a representative who remembers their place.

Here is one response:

I deeply respect the initiative process and support our citizens’ right to participate in it.  Just like laws passed by the Legislature, however, initiatives are very often tweaked after the first couple of years – for a variety of reasons.  Many proposals often cause unintended consequences.  Legislators are elected by the same voters to make common-sense changes to laws when circumstances require it.
Here are some common sense changes that I agree with that are in SB 6843 as currently I-960:
•           …requires public notice be given upon introduction of each bill with a fiscal note, and then again at each point as it moves through the legislative process–

Since 25 percent of bills introduced never receive a public hearing, SB 6843 permanently eliminates the notice on introduction for more effective use of state resources, while retaining all subsequent notices.
•           …requires a 10-year cost projection for a bill with a fiscal note also be provided –

Since anything beyond a 3-biennial economic projection is nothing more than a guess, SB 6843 permanently changes the cost projection to a 6-year outlook, making it both more reliable and consistent with fiscal note projections already performed by the Office of Financial Management.
Right now e-mails and phone calls are running about 3.5 to 1 to adjust I960 so that it works.  We have transparency and accountability by the mere make up of the legislature.  Each legislator comes to the legislature with a different perspective, and some have almost the same view as you do.  There are difficult decisions to be made and we do the best we can.  I encourage to come down to Olympia sometime during session and sit in on these committee hearings and get a flavor of the issues that are discussed.  Yes you can watch it on TVW, but you can’t feel the emotion that fills the room during testimony.  It is hard to concentrate on the testimony when you have a room full of Moms and Dads with their children in wheelchairs struggling to live when Dad got laid off because a company wanted to improve its bottom line.  Small business owners can’t get a loan because the banks are not lending and I could go on because we are in the mist of the worst economic crisis since the Great Depression.
Like all other states, we face a significant decline in revenue due to the global economic crisis. Last year the legislature dealt with a $9 billion shortfall using a combination of program cuts, layoffs, and federal stimulus money – without  raising taxes. We responsibly balanced our budget, and left town with almost 3/4 of a billion dollars in an ending fund balance.
Since then the economy has continued to decline.  This has had the dual effect of reducing the amount of revenue we expect to collect and at the same time increasing the responsibilities for helping our senior citizens and the disabled. Additionally, our schools are seeing an increase in students and the health care system is being additionally taxed by people who have lost their medical insurance along with their jobs.
I do not believe we can cut our way out of this shortfall but I also do not believe we can raise taxes across the board when our families, friends, and neighbors are struggling in this recession. We are going to have to use a combination of cuts and revenue raisers, like closing tax loop holes that are outlined in 3176.  Here are some of these measures that we are considering, I have also attached an outline that details the proposal for your review:
•           The state Supreme Court recently decided a case that creates a $100 million annual tax break for a single out of state food distributor, a tax break that in-state companies don’t get. Washington law provides an exemption for wholesale or retail sales of consumer goods for businesses that exclusively use an independent party – referred to as a direct seller’s representative – to make sales in the state. The direct seller’s representative is subject to B&O tax only on the commission. The exemption was originally intended for sales of consumer products through home‐based businesses such as a person selling products from Avon, Longaberger, Mary Kay, etc, out of his/her home. The proposal repeals the exemption for out‐of‐state businesses that exclusively sell their products through in‐state direct seller’s representatives.
•           There is a tax exemption for private airplane owners that was created in 1949. It no longer makes any sense whatsoever. In 1949 the legislature set up differently structured taxes on airplanes and boats, but at the same level. The airplane tax was done as a specific dollar amount, and then never adjusted for inflation for 60 years. The proposal is to reset the tax for airplanes at the same level as boats – one half of one percent of value. This returns the tax to the legislature’s original intent – the same as the level on boats.
The legislature will pass a balanced budget before session ends – just as we always do.  Our budget will focus on making sure everybody in Washington state gets a fair shake. We want a smart recovery, and that means successful students, job creation, and educational opportunities that will attract the jobs of the future.
Thank you for engaging in the Legislative process.  As you may have heard the Senate has already taken action on SB 6843. It will be some time before I see it on the House Floor.  As always I am taking into consideration the feedback I receive regarding this proposal before I make my final decision.
Sincerely,
John McCoy

State Representative

38th Legislative District