Washington State Freedom Agenda Update

The 2004 Legislature adjourned March 11, 2004. CSE activists played a vital role in supporting and opposing legislation this year. Hundreds of e-mails, letters, and phone calls were sent by our members and your efforts are sincerely appreciated. A summary of major legislation is attached but first, from the “That’s Outrageous!” column:

Governor Gary Locke recently granted 11 of his agency directors pay raises of 3.6 to 12.3%. They are paid $108,000 to $141,000 a year, plus health insurance and a state pension. The raises total over $80,000. This comes at a time when he is saying we can’t afford to educate our children and is aggressively pushing for new taxes.

No New Taxes

The biggest tax news of the session was the release of Governor Locke’s billion dollar tax increase proposal to fund expanded education programs. His original plan was to submit it to the legislature and ask them to place it on the ballot. The legislature showed no interest in taking the tax vote, and the Governor and the League of Education Voters have now submitted the proposal as an initiative, I-884. The sponsors have until July 2 to collect 190,000 valid signatures to qualify for the November ballot. CSE has been actively fighting this proposal and will step up our efforts to ensure defeat of this massive tax increase. We have formed a Political Action Committee, the League of Freedom Voters that will be chaired by former Speaker Clyde Ballard and will be mounting an aggressive “Decline to Sign” campaign. Please watch our website for updated plans and calls to action. We need every one of you to participate in this fight and show our elected officials that new taxes are not tolerable and there is a better way.

State Budget

A supplemental budget passed the legislature that increased spending for 2003-05 operations by almost $145 million, leaving $305 million in reserves. The total state budget is now $23.2 billion. Revenue forecasters expect us to begin next year’s legislative session with a billion dollar deficit.

Tax Breaks

Two major tax incentives for high-tech research and development were extended by the legislature this year. These measures were due to expire without legislative action.

Liability Reform

The omnibus liability reform bill, SB 5728 was killed in the House Judiciary Committee by Representative Pat Lantz (D-26) when she failed to allow the bill to come up for a vote. This is not a surprise since Rep. Lantz was named Legislator of the Year by the WA State Association of Trial Lawyers in October 2003. The bill passed out of the Senate and, thanks to a strong grassroots lobbying effort, got a hearing in the House. Although this is the furthest the bill has ever gotten, it was not enough to help put an end to frivolous lawsuits in the state. Expect this to be a major campaign issue in the November elections and question all candidates on their position.

Creating Jobs

Several attempts to rein in government regulations were made by the Republican-led Senate but were stopped in the House. Measures to change the worker’s compensation program and freeze the automatic cost-of-living increases in the state’s minimum wage were the two most prominent bills. Worker compensation premiums have risen 19 percent and 9.8%, respectively, in the past two years and our minimum wage is now the highest in the country. These two factors contribute to our high unemployment rate and cost our citizens jobs. CSE will continue to work to improve the business climate and make Washington more competitive.

School Choice

On March 10, 2004, the charter school bill, HB 2295, passed the House and Senate and it is now awaiting signature by the Governor. This victory never would have happened without the effort of activists from around the state. It is the first step in returning control of education back to the parents and gaining choice and competition in our education system.