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
NO
THIN
G IN
TH
IS P
UBL
ICAT
ION
SH
OU
LD B
E CO
NST
RUED
AS
AN
ATT
EMPT
TO
AID
OR
HIN
DER
TH
E PA
SSAG
E O
F A
NY
LEG
ISLA
TIO
N O
R BA
LLO
T M
EASU
RE.
[ ]
THE INFORMEDVOTER GUIDE
TO REQUEST ADDITIONAL COPIES PLEASE E-MAIL CITIZEN ACTION
NETWORK DIRECTOR LASSE LUND ([email protected]).
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
THE INFORMEDVOTER GUIDE
20
10
INIT
IAT
IVE
S
IVG-INITIATIVES.indd 2IVG-INITIATIVES.indd 2 9/17/10 1:08 PM9/17/10 1:08 PM