In this unprecedented economic crisis, cities and counties are struggling financially just like state government. I introduced SB 5433 to provide them with more flexibility to maintain public safety, mental health, and other public services. Current law requires that new taxes for these purposes must be used for new or expanded services. That does not make sense when local jurisdictions are having to cut existing services due to declining revenue. The legislation, as I introduced it and as it passed the Senate, would remove that ‘non-supplant’ language and allow supplanting or support for existing services. 

Little did I know how many forms this bill would take before a final version was agreed upon. I worked closely with the House Finance Chairman, Rep. Hunter. The week before it passed the House the first time, there was a different proposal every day relating to taxing authority for local jurisdictions. Some were accepted, many rejected. And then a floor amendment regarding transit services ‘hung’ which neither Rep. Hunter nor I had contemplated including. So, the Senate did not concur with the House amendments and asked for a conference. Many people approached us with other proposals for things to add in conference. Each new idea brought some votes with it, but some also would have caused the loss of votes. We worked to keep it as ‘skinny’ as possible and still gain the needed votes to pass the House and eventually the Senate.

It turned out to be much closer than I realized with a final tie vote of 24–24, after one supportive member changed his vote to ‘no’ after having voted ‘aye’. The Lt. Governor cast the deciding vote, making it 25 ‘aye’ votes. Unfortunately, some have questioned whether the Lt. Governor has the ability to cast the deciding vote on final passage so a court challenge could arise.

The final bill removes the non-supplant language for the voter approved .3 percent public safety sales tax on a declining basis until 2015. It also removes the non-supplant language for the .1 percent mental health and chemical dependency sales tax on a declining basis until 2015. And removes the non-supplant language for voter approved property tax levy lid lifts. This means that if supported by voters, these new taxes can be used to maintain existing services.

King county currently has authority for a 75 cent property tax levy to fund ferry services. The final version of SB 5433 reduces the levy to 15 cents with 7.5 cents for ferry operations and 7.5 cent for transit purposes. Additionally the final bill included authority for local transit agencies to ask voters for approval of a $20 per vehicle fee to be used for congestion reduction.

In the end, I am happy this measure passed. I know cities, counties and transit authorities now have more funding options that they can ask their local voters to approve