Eyman's new cause creates concern in cities, counties

Budding initiative 864 would cut 25 percent off property taxes if passed in November

Tim Eyman is at it again, and city and county authorities are not happy about it.

With the anti-tax stalwart from Mukilteo having started to collect signatures to put Initiative 864 on the November ballot, local financial and civic leaders are concerned of the impact the annual $550 million reduction on property taxes sought by the proposal might have on the finances of the area's cities and towns.

Jim Whitaker, city attorney for Moses Lake said the impact of I-864 would be very drastic in a large number of cities, including Moses Lake.

"I don't think the people engaged understand how bad this would be," he said.

Whitaker mentioned the reaction to the initiative from city councilmen and city manager Joe Gavinski during last Tuesday's council meeting.

"When the council began to discuss what form a preliminary budget would take," he said, "they discussed the possibility of the money coming out of various departments." Whitaker added that Gavinski had said the cuts would have to come out of everywhere.

Whitaker noted that with Gavinski's words there was a better recognition of the consequences.

"When the city manager said the cuts in parks would be so massive parks would simply shut down, that kind of impact would be felt in central services, fire, police, inspection, everywhere."

Among the cities Whitaker said I-864 would wreak havoc in, he mentioned George, Wilson Creek and Royal City. Anita Sather, finance director for the latter town said the passing of I-864 could make a significant dent on the city's coffers.

"We would lose about $12,000 from our general fund," she said. "When you consider all the things that need to be paid out of the general fund, the impact is huge." She anticipated major cuts if the initiative passes.

Royal City mayor Phil Leitz agreed with Sather, saying that if people feel like they need to support Eyman's initiative, "they better be willing to pay the price locally," he said.

Sather added that people are not aware of the kind of impact such a cut will have, due to the fact that "since times are hard for everybody, people are looking for any place where they can see that maybe they are going to save money."

City authorities are not the only ones fearful of the effect of the proposed initiative. Those in charge of county finances are wary as well.

Laure Grammer, Grant County assessor minced no words when describing the effects passing I-864 would have on the county.

"It would be a catastrophe," she said. "It would bring the county, the city, the library districts, the fire districts, the hospital districts and even the ports, to their knees."

Grammer explained that within the county, entities such as hospital districts, cemetery districts, port districts, parks, fire departments, are all entitled to a certain levied amount of money.

Subsequently, she said, these departments belong to different hierarchies, with institutions such as cities, counties, and road departments on a separate plateau from parks, fire districts and libraries.

With the passing of I-864, Grammer said, if the money is not there for what the law allows and requires, whatever is left has to be shared among the districts on the lower tiers.

As an example, Grammer said that if there were a dollar left, and each of these three districts is entitled to 50 cents, that would make it $1.50, or 50 cents more than the money available. "Since I only have a dollar, I would have to prorate it and deduct it and each would get 33 cents each instead."

If Eyman's initiative passes, Grammer said, whatever sense the taxpayers might have that they are saving money would add up to a mirage. "The taxpayers are not going to save anything," she said, noting that the money left is going to be picked up by districts in the lower tiers through levies.

"The districts on the lower tiers, or 'junior' districts," Grammer said, "had not been able to levy until now because there was not any money left. Now there is going to be, so they are going to levy."

Kittitas County would face similar consequences, said Iris Rominger, the county's assessor

Based on the numbers for the tax amounts to be collected for 2004, Rominger estimated the passing of the initiative would mean a loss of $2.4 million.

"It would be devastating," she said. "We are already on three years of declining budgets. It's difficult to comprehend how we could be able to perform the duties we have to perform by law."

With such a dire prognosis, the question arises of why or how people might think this is a good idea.

Grammer said that if Eyman thinks this is a good idea, it's because he does not understand the property tax system. "He has a cursory knowledge of it," she said. "He does not understand the full implications of what (the initiative) would do."

Whitaker said that his theory is that Eyman is saying that this type of initiative is trying to lower the tax burden, and that to an extent that was true. Furthermore, he said that thanks to the initiatives, "those groups that want less government are getting their way."

However, he said that these initiatives have made the governments within Washington poorer.

"I live in Washington because we used to have things. Eyman is turning us into Idaho, with roads full of potholes." He added, "So we have a bit lower taxes, (big deal.)"

Rominger agreed, saying Eyman and his supporters think this is a good idea because when looking at tax reductions, "they are always favorable to everyone until they lose the services they want, the public safety issues surface, and the roads are full of potholes. That's when you'll see the problem," she predicted.

"With fewer police officers, people are going to be scared to the bejeezus about crime," Whitaker predicted.