Gregoire: More tax reform after special session?

• Published November 26, 2007

But Gregoire has resisted the idea of going further to block local governments from using unused or “banked” tax capacity that they were allowed before I-747 was passed in 2001. The initiative did not bar use of “banked” taxing authority, but Eyman considers it loophole and has called for lawmakers to do away with it.

“Anyone who doesn't see a pattern of voters saying 'no' to higher taxes and demanding that government make due with existing revenues is in massive denial,” Eyman screamed in an email on Monday. “State and local governments impose and collect over $50 billion every year. Even without tax hikes, that amount increases. If prioritized, that's more than enough.”

Brown, the legislative director, said the governor is not considering the banking issue because, after the Supreme Court ruling, everyone wanted to re-enact exactly what the voters had approved.

Gregoire did acknowledge to reporters Monday that some legislators don’t want to re-enact the 1 percent property tax cap. But she thinks there is no choice.

“The fact of the matter, the people spoke … It passed overwhelmingly,” Gregoire said, explaining why she favors a flat 1 percent cap on increases and does not want to consider other approaches that might give cities, counties and fire districts more flexibility to meet their financial needs. “I’m saying the will of the voters needs to be carried out.’’

Gregoire later told a gathering of service clubs Monday — including Olympia Rotary — that she thinks voters did not merely reject taxes on Election Day.

The governor noted that voters approved all four measures the Legislature put on the Nov. 6 ballot — including the “rainy day” savings account for government and lower vote requirements for passing school levies.

Voters will support taxes if they are confident about what the money is going for, Gregoire said. She hearkened back to the phased-in gas tax package of 9 ½ cents that lawmakers approved in 2005; it survived a citizen initiative to repeal it.

“I have not lost confidence that if we’re in tune with the public, they’ll invest,” Gregoire said of future tax increases for education or transportation.