Strapped towns turn to Olympia for help
Monday, December 13, 2004 7:35 AM PST
By Staff
Printable version
E-mail this articleWashington's cities are asking for help.
With cash-strapped police departments and cuts to parks and libraries across the state, cities want the Legislature to send them more money and change laws that restrict property tax increases, said Jim Justin, the Association of Washington Cities' assistant director for intergovernmental relations.
AWC, an Olympia-based nonprofit that lobbies on behalf of Washington's cities, will have its work cut out for it this year as it jostles with other interest groups trying to win a share of the state's shrinking budget. The state protects a potential $1.7 billion deficit for 2005-06.
Tight budget years can sometimes be cities' best opportunity to push through legislative reforms, however, said Michael Pagano, a fellow at the Great Cities Institute at the University of Illinois at Chicago, and author of "City Fiscal Conditions in 2004."
"When bank accounts are full, legislators don't take things as seriously," Pagano said. "State legislatures across the country don't have any money left in their cupboards and are probably more receptive to suggestions from the cities."
"A lot depends on what happens in the gubernatorial race," said Rep. Geoff Simpson, D-Kent, chair of the House Local Government Committee, which will review AWC's proposals.
Assuming that Republican governor-elect Dino Rossi holds on to his victory once a hand recount of ballots ends, legislative cuts may be too deep to pass on much funding to cities, Simpson said.
Simpson did not discuss how Rossi's Democratic opponent would affect AWC's agenda. Democrat Christine Gregoire has said that she also opposes new taxes.
"Dino Rossi has taken this ideological position that no matter what the need is, cities and the state don't need additional revenue," Simpson said. "His mind is already made up: No new taxes."
Rossi told The Daily News Wednesday that while he is opposed to new state-level taxes, he would not necessarily oppose letting cities raise local taxes -- as long as they were approved by a majority of local voters.
However, Rossi said, tax increases are not the long-term answer.
"The best thing that we can do for cities and counties around this state is to get the economy going again," Rossi said. "Then you will have people there paying taxes and consuming, and you will see the revenues to these cities and counties grow."
Pagano, of the Great Cities Institute, agreed that economic health is key to helping cash-strapped cities.
"The jobless (economic) recovery really has been very damaging to municipal and state revenue systems," Pagano said.
But with a healthy mix of sales, property and business taxes, cities can buffer themselves against some of the ups and downs of economic hardship, Pagano said. And now is the time to reform tax systems, he said.
"Cities should be given access to taxes that the cities and the voters in the cities find to be the best way to finance services," he said. "States should be able to give flexibility to their cities."
That flexibility -- which Rossi said he does not oppose -- is probably the most likely element of AWC's platform to survive the upcoming legislative session.
Initiative 747 limits cities to property tax increases of 1 percent per year, which is less than the rate of inflation. AWC wants the Legislature to pass laws allowing cities to temporarily sidestep I-747 by allowing voter-approved temporary tax hikes that would expire after six years.
As for the rest of AWC's requests -- for a gas tax increase and for money to bridge budget gaps and meet specific needs -- lawmakers said they don't want to comment on the viability of this agenda until closer to January's legislative session.
"Everyone is in favor of tax reform, as long as it's not my taxes," said Bob Williams, president of the Bellevue-based Evergreen Freedom Foundation, a think tank which opposes any proposal to raise taxes in Washington.
"Cities, particularly small cities, need to do the same thing the governor did a few years ago," said Williams, a former state representative from Longview. "Look at the core functions of government. Rather than saying we need more money, look at what results you are getting and see if there are better ways to do it."
The real answer to cities current woes is a healthy economy, Williams said, echoing Rossi and Pagano.
Justin, of the AWC, agreed that economic growth is key to the health of cities, but he's hoping legislators will approve AWC's recommendations. With a little financial help, "we think we can grow ourselves out of the problem," he said.
Justin said did not know whether that help would be forthcoming.
"Legislators are very concerned about local governments," he said. "They want to help us. The dilemma becomes -- how do they balance it with other priorities?"
What do cities want?
According to the Association of Washington Cities, different communities have different legislative wish lists, depending on their population sizes. Here's a summary of AWC proposals to the Legislature:
For cities with population of more than 5,000: (102 cities in the state)
• Money for infrastructure, especially transportation.
• New economic development tools, giving community boards more power to fund downtown development projects,
• Gas tax increase, distributed directly to cities.
Cities with fewer than 5,000 residents: (181 cities in Washington),
• Money to bridge budget gaps.
All cities:
• Allow cities to increase property taxes by more than the 1 percent restriction for up to six years at a time, when approved by local voters.
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