Research Council Provides Perspective on 747 and Special Session

The Washington Research Council released a policy brief, dated yesterday, that provides some context and perspective on the 1 percent cap and the issues lawmakers are addressing in today's special session. The WRC rehearses concerns they raised a few years ago.

First, by adopting a limit below the rate of inflation, the initiative may lead local officials to pursue other revenue options (impact fees, B&O taxes) that will negatively impact the business climate. The arbitrary limit on property tax collections would have differential
impacts on local government, affecting those communities without a diversified revenue base most directly...

Second, cities and counties generally spend most of their budgets on infrastructure and public safety – streets, roads, sewers, police and fire services, courts and jails. As budgets tighten, the shortfall in infrastructure finance may well be exacerbated as constrained resources are channeled to important public safety functions.

Third, the initiative again raises the issue of the degree to which voters should give explicit approval to all tax increases. The tight I-747 cap would most likely result in more budget decisions being referred to the voters...

There's also hint of resignation.

Six years ago, after the courts initially declared I-722 unconstitutional, there might have been an opportunity for the legislature to craft a better limit on property taxes. But, politically, that moment has past. Today, anything short of one percent would be too little, too late.

As I watch the proceedings on TVW, it's pretty clear that the session will follow the script, although many of the actors show little enthusiasm for the roles they've agreed to play. This debate won't end when the one-day session concludes.