Only two of this year’s six state-wide initiatives passed voter muster with the results clearly translating to a strong anti-tax sentiment among Washington residents.
Still, locally, officials in both Bothell and Kenmore expressed at least some mild relief regarding the issues that didn’t pass and aren’t overly concerned about the ones that did.
From the standpoint of local governments, officials in both cities said the failed initiatives to privatize state liquor sales would have had the biggest effect, slicing the local share of state liquor sales and taxes.
In Kenmore, Mayor David Baker first said he was surprised by the failure of both privatization efforts. Baker believes voters in eastern Washington killed the measures over concerns about increased access to hard alcohol. In any case, Baker said there was some worry locally about the long-term effect of the loss of liquor money.
According to figures provided Kenmore City Council by the city administration, beginning in January, Kenmore would have lost about $302,000 over two years in shared liquor profits. Another $77,000 in liquor sales taxes would have dried up beginning in April 2012. The city noted Kenmore may have picked up additional sales tax revenues from increased liquor sales at local stores, but those numbers were not estimated.
Regarding the initiatives that did pass, Baker noted cities receive no direct share of the soda and candy tax voters acted to eliminate. He did say the repeal of that tax undoubtedly would impact the state budget and could have a sort of trickle-down effect on state dollars reaching local governments. Baker also said those potential cuts are impossible to predict at this point.
In Bothell, Mayor Mark Lamb said the liquor issue was something he had intended to keep an eye on, but not one that would have immediately affected the city.
According to budget information released by the city manager’s office, the liquor initiatives would have cost Bothell $400,000 to $480,000 in 2012. As for the candy tax, Lamb said he didn’t think it was a significant source of income for the city.
As most voters know by now, the anti-tax sentiment rippled through several other state initiative efforts. All votes are unofficial until they are certified on Nov. 23, but measure 1053, sponsored by anti-tax activist Tim Eyman that will put back in place restrictions on future tax increases, is passing with a roughly 64-percent approval rate.
The largest portion of the initiative puts restrictions on the legislature to have two-thirds majority to pass any tax increase.
Highlighted by the proposal for a state income tax for those with incomes above $200,000 for individuals and $400,000 for joint-filers, Initiative 1098 was soundly defeated, by an unofficial margin of 64 percent against, compared to 35 in favor.
The measure also would have reduced state property tax levies, cut certain business and occupation taxes and direct any increased revenues to education and health.
Initiative 1107, which repealed the candy tax, unofficially passed easily with 60 percent in favor and 39 percent rejecting the measure.
Prop. 1 in King County would have added a 0.2-percent increase to sales taxes for use on criminal justice and fire protection. The measure failed 55-44 percent.
In comments made prior to the election, King County Sheriff Sue Rahr said passage or failure of the issue would not affect cities such as Kenmore, which contracts with King County for its police protection. Rahr said that because contract communities like Kenmore pay directly for policing services, cuts in those locations aren’t practical. Unincorporated areas in King County might experience the biggest impacts from operational cuts in her office, but Rahr argued every city eventually could feel the pinch from law-enforcement spending reductions.
For example, Rahr said King County Executive Dow Constantine has proposed slicing various services ranging from the county prosecutor’s office to county courts.
As the prosecutor’s office sheds personnel, Rahr said she expects they will raise the bar in terms of recommending felony charges. She said that will mean not only fewer suspects charged with felonies, but, as many cities handle misdemeanor charges themselves, more cases will be returned from the county prosecutor to individual communities. In turn, that means increased costs to local authorities.