Lacey would stand to lose $16 million over the five-year period, or $3.2 million annually, and Tumwater could lose $7.8 million, according to the association. The group said it calculated the projected losses with data from the state Office of Financial Management.
The associations, private nonprofits that lobby for cities and counties, gave the briefing Tuesday night to a gathering of Olympia, Lacey, Tumwater and Thurston County governments. The mayors of the cities and Thurston County Commission Chairwoman Cathy Wolfe hosted the event, which drew about 40 people, mostly public officials, to Lacey City Hall.
Representatives of the city and county associations presented information and answered questions about the initiative to the audience. They said they were not trying to state opinions about the initiative but highlight issues as local governments consider its implications.
The initiative, which is sponsored by prolific initiative writer Tim Eyman, would cap general fund revenues for state and local governments at 2009 levels, allowing the cap to rise only for inflation and population growth.
Governments seeking more tax revenue would have to ask voters. Revenue above the cap would be transferred into an account to lower property taxes starting in 2012.
Leaders from the cities are concerned that the initiative would hamper their earning potential and limit their growth.
Eyman said his initiative creates a structure of fiscal discipline for governments, leading to sustainable budgets. He noted that the initiative allows voters to consider tax increases.
Responding to questions by Tumwater city officials, the representatives confirmed that additional tax revenue generated by the redeveloped brewery property in the future would go to pay down property taxes and not pay for basic city services if the initiative passed.
While casting a wary eye, governments have been careful about taking official positions on the initiative. The Association of Washington Cities and Washington State Association of Counties havent taken an official position, but are answering questions local governments have about the initiative.
Local officials tried to keep opinions about the initiative out of the presentation, but Pete Kmet, a Tumwater city councilman and mayoral candidate, couldnt contain himself about the initiative at one point.
This is insane, he said.
Lacey Mayor Graeme Sackrison, who presided over the presentation, cut the question-and-answer session short after voicing concerns about the line of questioning.
Were moving into sort of value judgments, what-ifs, and Im not comfortable going there, he said.
But the mayors caution didnt satisfy Eyman, who was not present but who was interviewed after the meeting.
It was an expenditure of tax dollars to oppose the initiative in total violation of the spirit of the law, he said. But he said its just not worth it to complain to the state Public Disclosure Commission.
Frankly, I think the voters can see through it.
Data from the Office of Financial Management show the state stands to lose $5.9 billion over the five-year period, counties could lose $694 million and cities could lose $2.1 billion.
Matt Batcheldor: 360-704-6869
mbatcheldor@theolympian.com
Christian Hill: 360-754-5427
chill@theolympian.com
