This year more than ever, Washingtonians recognize

the power of their vote and are ready to exercise that

power on November 2. Voters are anxious to make

their voices heard in the wake of the Legislature�’s

decision to �“balance�” the budget on

the backs of ci zens in the form of

out-of-control spending and higher

taxes. Experts at the Evergreen

Freedom Founda on reviewed the

decisions and ac ons made by our

elected leaders and published the

results for voters to see as part of

our Informed Voter Project. Our

goal is an informed citizenry where

people go beyond simply checking

a box to determine who shapes

the future of our society, but

who have the information they need to hold their

leaders accountable for how they represent them.

THE INFORMEDVOTER GUIDE

A PUBLICATION OF THE EVERGREEN FREEDOM FOUNDATIONPO BOX 552, OLYMPIA, WA 98507 �• 360.956.3482 �• WWW.EFFWA.ORG

W W W . I N F O R M E D V O T E R G U I D E . C O M

The rst three phases

of our Informed Voter

Project focused on

educa ng people

about current elected

o cials�—from

legislators to Supreme Court jus ces. With Phase

4, we now turn our a en on to some of the many

ini a ves�—and one referendum�—that are on the

November ballot. You deserve to know how each

of these proposals will impact Washington state,

so you can make an educated, though ul decision

this Elec on Day�—and beyond. Issues will remain

unresolved, and ques ons will s ll need to be

answered a er the ballots are counted and we

head into next year�’s legisla ve session. Be a part of

holding legislators accountable in 2011 by joining the

Freedom Founda on�’s Ci zen Ac on Network. Visit

e can.org to nd out how.

INITIATIVES

2010

To view our guides on legislators and Supreme Court Jus ces, please visit www.informedvoterguide.com.

REFERENDUM 52

AUTHORIZING BONDS IN EXCESS OF THE CONSTITUTIONAL DEBT LIMIT TO FINANCE ENERGY EFFICIENCY PROJECTS IN SCHOOLS, AND MAKING THE SALES TAX ON BOTTLED WATER PERMANENT

Descrip on: The result of Engrossed House Bill 2561 passed by the Legislature this year, Refer-

endum 52 would, with approval by voters, authorize the issuance of $505 million in state general obli-

ga on bonds to nance construc on and repair projects increasing energy e ciency in public schools,

as well as colleges and universi es. Referendum 52 would con nue the sales tax on bo led water that

would otherwise expire in 2013.

Impact: Rep. Hans Dunshee, who proposed the measure, claims Referendum 52 is a jobs bill that

will create about 38,000 jobs in a six-year period. He also claims it will permanently reduce energy bills

in schools and increase sales tax revenues star ng in 2011. However, according to the O ce of Financial

Management, by the me taxpayers are done paying o the $505 million in 29 years, they will have

shelled out $937 million. The sales tax on bo led water is es mated to increase General Fund revenues

an annual average of $39.8 million and increase local government receipts an annual average of $14.9

million. The bo om line is that this measure would increase debt in order to nance higher spending,

which in turn would be repaid through higher taxes.

THE INFORMEDVOTER GUIDE

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THE INFORMEDVOTER GUIDE

TO REQUEST ADDITIONAL COPIES PLEASE E-MAIL CITIZEN ACTION

NETWORK DIRECTOR LASSE LUND (LLUND@EFFWA.ORG).

the backs of ci zens

out-of-control spend

taxes. Experts at the

Freedom Founda on

decisions and ac ons

elected leaders and p

results for voters to s

our Informed Voter P

goal is an informed c

people go beyond s

a box to determine

IVG-INITIATIVES.indd 1IVG-INITIATIVES.indd 1 9/17/10 1:08 PM9/17/10 1:08 PM

INITIATIVE 1053 INITIATIVE 1082 INITIATIVE 1098

REINSTATING THE TWO-THIRDS LEGISLATIVE MAJORITY FOR TAX AND FEE HIKES

LEGALIZING PRIVATE INDUSTRIAL INSURANCE

HIGH-EARNER INCOME TAX

Descrip on: This measure would re-

instate state law requiring tax increases be

adopted with a two-thirds vote in the Legisla-

ture. Earlier this year, lawmakers�—exercising

their simple majority right to change or re-

peal an ini a ve a er two years�—scrapped

I-960�’s two-thirds supermajority vote re-

quirement un l July 1, 2011. Voters approved

I-960 in November 2007. Other provisions of

I-1053 include reinsta ng the submission of

tax increase proposals to a statewide vote

and majority legisla ve approval for new or

increased fees

Descrip on: Today, Washington

is one of four states where employers

are not allowed to purchase private in-

dustrial insurance (o en called �“work-

ers comp�”). Businesses have two op-

ons. Most purchase insurance from

the state�’s Department of Labor & In-

dustries. Some of the largest employ-

ers self insure�—that is, they fund and

manage their own industrial insurance

program according to state laws and

regula ons. I-1082 would create a third

op on by allowing employers to pur-

chase private industrial insurance in a

compe ve market.

Descrip on: I-1098 would im-

pose a 5 percent tax rate on income

above $200,000, or $400,000 for married

couples. The rate would climb to 9 per-

cent for single lers making $500,000, or

$1 million for couples. Other provisions

include a 20 percent reduc on of the

state por on of the property tax (about

4 percent of the average taxpayer�’s total

property tax bill) and an increase of the

Business and Occupa on tax credit to

$4,800. Revenue from the income tax

would go to a dedicated trust fund for

educa on, health services and middle

class tax relief. The actual text of the ini-

a ve describes the proposed income

tax as �“an excise tax on income�”�—an at-

tempt to take into account the state con-

s tu on�’s prohibi on against an income

tax and the requirement that any tax be

�“uniform upon the same property.�”

Impact: The O ce of Financial Manage-

ment states, �“Ini a ve 1053 would have no

direct scal impact on state and local reve-

nues, costs, expenditures or indebtedness.�”

OFM notes the ini a ve�’s impact is limited

to changes in the state legisla ve process.

I-1053 supporters believe restoring the two-

thirds vote for tax increases is an important

protec on for taxpayers that limits the nan-

cial burden state government places on the

people. Opponents of I-1053 claim it would

e legislators�’ hands in dealing with the eco-

nomic downturn and state budget.

Impact: I-1082 is intended to re-

duce the costs of insurance for employ-

ers and employees and to create more

accountability in the way claims are ad-

ministered. Today, Washington workers

with me-loss claims miss an average of

270 days of work; Washington has the

highest pension rate in the country; and

administra ve costs for the state have

risen by over 80 percent in 10 years.

Because government has no �“bo om

line,�” it lacks the incen ves that make

insurance markets work. Both sponsors

and opponents of I-1082 agree that

market compe on will create pressure

to keep these costs down.

Impact: According to the O ce of Fi-

nancial Management, I-1098 is es mated

to generate a net increase in state rev-

enue of more than $11 billion over ve

years, beginning in 2012. State imple-

menta on costs are es mated at $39.3

million over ve scal years. Economists

at the Beacon Hill Ins tute contend

I-1098 will, if passed, result in the loss

of more than 61,000 private sector jobs,

increase the state�’s long-term projected

unemployment rate from 6.7 percent to

7.9 percent and cause a reduc on in real

disposable income of more than $2.5

billion (or $149 per capita). It remains

ques onable if I-1098 could pass cons -

tu onal muster.

INITIATIVE 1100 INITIATIVE 1105 INITIATIVE 1107

PRIVATIZING STATE LIQUOR STORES

REVISING STATE LIQUOR LAWS

REPEALING TAX INCREASES ON FOOD AND BEVERAGES

Descrip on: I-1100 priva zes the sale

and distribu on of liquor and eliminates the

state�’s �“three er�” system of control, which

segregates manufacturing, distribu on and

sales. (Distribu on and retail sales, of course,

are controlled by the state.) This measure

directs the Liquor Control Board to close all

state liquor stores, terminate contracts with

private stores selling liquor and authorizes

the state to issue licenses that allow hard

liquor to be sold, distributed and imported

by private par es. The Liquor Control Board

retains the responsibility for enforcement

and educa on to prevent sale of alcohol to

minors and other alcohol safety laws. Sup-

porters point out that under I-1100, revenue

from new liquor licenses must be used for

licensing, enforcement and educa on to re-

duce alcohol abuse, thereby increasing the

enforcement and educa on budget.

Descrip on: I-1105 also priva-

zes the sale of liquor in the state of

Washington. Rather than elimina ng

the distribu on �“ er�” of the state�’s

control system as I-1100 does, I-1105

requires that all sales of alcoholic bev-

erages pass through a middleman

distributor from the producer to the

retailer. While I-1100 sets a at fee for

liquor licenses ($1,000), I-1105 deter-

mines the liquor license price as a per-

cent of liquor sales, which would result

in larger vendors paying more for their

licenses. I-1105 repeals exis ng state li-

quor taxes and directs the Liquor Board

to make a recommenda on to the Leg-

islature to impose a new liquor tax.

Descrip on: If passed by vot-

ers this November, I-1107 would repeal

four tax increases passed by the Legisla-

ture earlier this year: the new excise tax

on carbonated beverages, sales tax on

bo led water, sales tax on candy and in-

creased Business & Occupa on taxes for

certain food processors. The carbonated

beverage tax is two cents per 12 ounces,

and is scheduled to expire on June 30,

2013. The sales tax on bo led water is

set to expire on June 30, 2013, but could

be made permanent if Referendum 52

(bond measure for energy e cient proj-

ects) is approved by voters this fall. If

adopted by voters, I-1107 would go into

e ect December 2.

Impact: I-1100 would likely reduce li-

quor prices for consumers by elimina ng

the state�’s 51.9 percent markup on liquor,

as well as exis ng price controls. Opponents

warn that the state will lose out of the mil-

lions of dollars�—$277 million over ve years,

according to o cial es mates�—collected ev-

ery year due to the state�’s price markup of

alcohol, but supporters point out these es -

mates fail to take into considera on the ad-

di onal tax revenue generated through new

business taxes. I-1100 leaves intact exis ng

liquor taxes.

Impact: A nancial impact report

by the O ce of Financial Management

predicts the state could su er revenues

losses of $730 million over a ve-year

period. However, OFM also reports

that, like I-1100, I-1105 could increase

liquor sales by about 5 percent. I-1105

proponents contend that by reform-

ing state liquor sales laws to allow for

private retailers to sell spirits, the state

could expect addi onal tax receipts.

Impact: O cial es mates indicate

state and local taxpayers would see $435

million in savings over the next ve years

if voters approve I-1107. The state would

see a $55 million reduc on in available

revenue for the current budget and a

$218 million reduc on for the 2011-13

budget.

W W W . I N F O R M E D V O T E R G U I D E . C O M A P U B L I C A T I O N O F T H E E V E R G R E E N F R E E D O M F O U N D A T I O N

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