Eyman's performance audit initiative hits ballot

I-900 would direct performance audits of governments

COLUMBIA BASIN — Supporters look at the performance audits that could be conducted through Initiative 900 as a way to hold every government entity in the state accountable, but opponents see it as a costly and bureaucratic process.

The performance audit initiative authorizes independent evaluators to look at ways to improve efficiency and effectiveness of state and local governments. The measure is similar to House Bill 1064 passed by the legislature earlier this year, but initiative sponsor Tim Eyman sees his measure going further.

"I give them credit," Eyman said of the legislature's version, "It's better than nothing."

The State Auditor's Office already audits accountability and financial compliance of all sate and local governments, but Initiative 900 would increase that power and authorize the state auditor to also conduct performance audits of any of the 2,000 branches of state and local government. The initiative would also authorize those audits to be contracted out to private companies.

Initiative 900 would allocate 0.16 percent of the state's portion of the sales tax for the performance audits, a figure that state officials have estimated would bring in $17 million for them.

Eyman argues that the performance audits will allow auditors to conduct in-depth reviews of how government money is being spent and if that money is getting the best bang for its buck. And with the money allocated, he envisions not 2,000 audits per year, but more like 10.

"I would envision 5 to 15 audits per year," Eyman said, "real good in-depth audits of state and local government."

But some city and town leaders in the Columbia Basin say the initiative goes too for into local government. Kathy Bohnet is the Mayor of the Town of Wilson Creek and said the initiative would create a whole new level of bureaucracy because performance audits would be independent from the current auditing system.

But the added bureaucracy isn't the only problem for Bohnet. Supporters have argued that a performance audit would bring out efficiency ideas that other governments could adopt, but Bohnet said that point doesn't work because each government entity is unique.

"To me, it would be very hard to be objective with such varying circumstances," she said.

And while she said she wouldn't fear a performance audit, the added cost of another audit would be an added burden for a town that is already required to eat up 10 percent of its budget for an accountability audit every two years.

"I think in a small town it's very obvious whether you're productive with your funds," she said.

She feels the people in Wilson Creek are already getting an effective value for their dollar, and citizens know what is going on at the Town Hall.

The state presently has two agencies which have authority to conduct performance audits of governmental entities. The SAO conducts performance audits of state agencies, as does the Joint Legislative Audit and Review Committee which consists of members from both parties. Those performance audits have not encompassed the approximately 2,000 local government entities around the state though.

"If they're spending their tax dollars as wisely as possible, than they have nothing to fear from a performance audit," Eyman said.

His argument is that the performance audits would give the oversight to say the money's being spent as wisely as possible. Eyman doesn't hide that his motivation is to make tax increases harder to pass, but asked what would be the reason to pass increases if efficiency wasn't at it's optimum.

"They're going to have to explain, are you going to adopt these reforms, are you going to save the taxpayers money?" Eyman said. "Or you have to explain why you are not going to adopt these reforms."

But Joe Gavinski argues that the cheapest option is not always the best. He said issues are different in each jurisdiction, and said choices are not made in a vacuum but made because it is the right choice for the particular community.

The Moses Lake City Manager also said that the performance audit would add an expense that would not need to be added. Gavinski said it seems an unnecessary expense for smaller communities that hear all the time from the citizens how they're not performing well.

"For local government of our size, I think it's really not necessary," Gavinski said.

However, performance audits like those in Eyman's initiative are getting support from both sides of the aisle, and endorsements from newspapers who have not warmed to Eyman's initiatives in the past.

Performance audits also get support from groups like the Evergreen Freedom Foundation, who work for limited and accountable government, and who feel the initiative would remove the political aspect of performance audits and allow auditors to do their jobs. Foundation senior budget analyst Jason Mercier said through performance audits every government would be held accountable.

"Ultimately, the reason why we have government in the first place is to provide government in the most effective way possible," Mercier said.

If there are problems with performance, then Mercier said government entities should want to fix them, or make their case to the public why they won't.

"If they don't agree with the audit," Mercier said, "If they don't agree with that, at least they can have the dialogue."