Spokane

Tax-cap initiative catches flak
Mayor, other officials say services could be curtailed
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Jim Camden
Staff writer

Local government officials said Tuesday they have severe misgivings about a proposed initiative to place new limits on property tax growth.

Spokane Mayor John Powers said Initiative 747 would "significantly impair" the city's general fund, which pays for such services as police and fire protection.

"Our hands will be cuffed," Powers said at a news conference in front of the Public Safety Building

But supporters of I-747 said such comments actually help efforts to gather signatures and get the proposal on the ballot.

"I think voters are now accustomed to their scare tactics," said Monte Benham of Kennewick, a co-sponsor of the initiative. "It helps us because it makes more people aware of the initiative. And it makes our people work harder."

I-747 would limit the growth of state and local property taxes to 1percent per year, rather than 6percent, the current cap. Any larger increase would have to be approved by the voters.

One percent is less than the rate of inflation, Powers said. In Spokane, it amounts to about $560,000, Powers said.

"That's not enough of a cushion to grow and provide better services," he said. "Our efforts would be further undermined."

Benham said the initiative is necessary to rein in rising taxes. If local officials need a higher increase, they can take their case to the public.

"If they can get voter approval, they get the money," Benham said.

The initiative covers all government entities that rely on property taxes for all or part of their funding.

John White, superintendent of the Pend Oreille County Hospital District, said that could force his district to hold annual elections to cover basic operations costs.

"We're not professional levy floaters," White said.

Government officials made similar dire predictions about Initiative 695, Benham said. Voters later approved the initiative, and no essential services have been canceled, he said.

I-695 eliminated motor vehicle excise taxes and replaced them with a $30 license tab fee.

Spokane County Prosecutor Steve Tucker and Sheriff Mark Sterk were scheduled to attend the news conference but canceled because of scheduling conflicts.

Later, Tucker and Sterk said they also have reservations about I-747. Both are Republicans and their state party has endorsed the initiative.

"I'm riding the fence," Tucker said. "I think I pay enough taxes already. But as a county official, I don't know how many hits like this we can take."

The city was hurt by I-695, Tucker said. The Police Department had to pull out of the Serial Killer Task Force because of a lack of money.

Sterk said he has grave concerns about I-747 but doesn't want to make dire predictions that have characterized some previous campaigns.

"My main message is, if it passes, it's just going to throw a huge challenge to the Legislature to replace those dollars," Sterk said.

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