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1A tax by any other name...
W m C. Will I PRES. ASSOC. 0F WA BUSINESS
Washington voters have made it more
difficult for state lawmakers to hike taxes by
requiring a two-thirds majority to do so.
The legislature’s response? Increase fees,
instead.
Gov. Gregoire has ordered state agencies
to cut their budgets and streamline their
operations, saying, “State government
cannot conduct business as usual." But
instead, some agencies want to offset their
agency’s budget cuts with higher fees.
Fee hikes require only a simple majority
vote in the Legislature. As a result, law-
makers are considering $350 million to
$450 million in new fees to help plug the
budget gap.
But that’s not what fees are for. By defini-
tion, fees are charged to offset the cost of
a specific government program or service
provided in return for that fee. Hiking fees
to replace money from the general fund is
a tax by any other name. -
Calling a tax a fee doesn’t make it so. In
fact, Lt. Gov. Brad Owen has ruled that,
“Calling something a fee when there is no
nexus between its collection and how it is
to be spent does not make it a fee. . . . Failing
this, it is a tax, and a superrnajority vote is
required."
’I'hegovemorhas called on state agencies
to reform, and opportunities for reform
abound.
For example, one of the major costs for
Washington employers is the overlapping
and often contradictory layers of federal,
state and local regulations and permits
covering the same issue. Even regulations
among state agencies often overlap, forcing
companies to file two or three sets of differ-
ent paperwork or studies and pay multiple
fees for the same thing.
But no one is addressing this problem in
a meaningful way. Instead, some bureau-
crats and legislators just want to increase
the fees for these duplicative permits.
Case in point: streams in forests. Cur-
rently, ,an applicant must file separate
permits with two different state agencies
to install a fish-passable culvert on private {
timber land. The permit for the Depart-
ment of Natural Resources (DNR) is highly
detailed and covers a broad range of pro—
tections. A similar permit for the Depart-
ment of Fish and Midlife (DFW) is less
specific, more general in scope.
The DNR permit covers everything re-
quired by the DFW permit — and more.
GUESTI EDITORIAL
Do we really need both? Is it really neces-
sary that property owners file two sets of
paperwork, pay two fees and support two
sets of public employees to accomplish the
same thing? -
Another example: the State Department
of Ecology (DOE). ‘
DOE wants to increase fees for process-
ing water rights permits. But the agency
currently has a backlog of some 7,000
pending applications, half of which have
lain untouched for 10-20 years. Of that
number, the agency staff has processed
about 370 applications over the past two
years. Essentially, DOE wants permit ap—
plicants to pay more money, but receive
no change in service level for the additional
cost.
That is not reform. Fee hikes are simply
an attempt to avoid necessary reforms,
backfill budget cuts and circumvent the
two-thirds majority requirement to raise
taxes.
Why should the general public care?
Because added costs reduce jobs. And
that’s the last thing we should do as our
businesses struggle to emerge from the
recessron.
For example, HB 2008, sponsored by
Rep. Hans Dunshee, D—Snohomish, would
increase fees on the timber industry Sierra
Pacific Industries has already laid off 1,000
employees to cut costs to remain competi-
Lake Stevens JournaIApril 13, 2011
tive, and company officials say Dunshee’s
bill would further add to the size of govem-
ment and increase fees by 12 times. Repre-
sentatives of private forest owner Merrill &
Ring said it had also outcasts, and it would
be nice “if the state government would do
the same thing."
Exactly. The governor has raised ex-
pectations that state government will be
transformed. It will be more efficient and
streamlined. The pemiitu'ng process will
be easier for all of us to navigate, and we
won't have to weave our way through the
regulatory maze and pay a toll at everytum
in theroad. -
She has veto power and ought to insist
the Legislature and state agencies comply
with the intent of her transforming state
government initiative.
About the Author:Don Brunell is the
presidentof the Association ofWashington
' Business. Formed in 904, theAssociation of
Washington Business is Washingtonis oldest
and largest statewide business association,
and includes more than 7,350 members
representing 650,000employees.AWB serves
asboth thestate's chamberofcommerce and
the manufacturingand technologyassocia-
tion. While its membership includes major
employers like Boeing, Microsofland Weyer-
haeuser, 90 percentofAWB members employ
fewer than 100 people. More than half of
AWBis members employ fewer than 10. For,
more aboutAWB, visit wwwawborg.
YOUR LETTERS
‘ lSHS student volunteers made auction a success
Dear Editor,
Thankyou to the amazing LSHS students
who rocked their volunteer duties for the
March 26 LSHS GradNightAuction (donat-
ing art, helping with decorations, and/ or
volunteering the night of the event) to help
make it a success.
Your energy, willingness, and “Viking
Pride” made it a very special night.
Tucker Hudspeth, Tatiana Boyles , Alex
'IWeedie, Ashley Graeber, Bre Rinear, Bri
Cline, Cody Shatter, Ian Anderson, Jona-
I
W201].
Editorial Policy
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vens journal is to provide informative and
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The journal reserves the right to edit all
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Your hometown newspaper since
than Lemieux, Josh Berg, Kyle Daggett,
Megan Home, Mikey Kemp, Page Moore,
Rebecca Alewine, Ricky Kemp, Sara Bing-
ham, Sarah Bliven, Stephanie Myers, Syd-
ney Gellerson, Alicia Berlin, Dylan Boyce, ,
Cassie Davis, Kayle Gallagher, Jessica Lep-
tich, Samantha Whalen, Brooke Dalgieish,
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Reyes, Jasmine Rommel, Emily Bainey and
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Gounod Us
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YOUR LETTERS
Students ask for help to support fellow student.
Dear Editor,
Kayla Healy, a student at Jackson High,
needs a double lung transplant. Kayla, 17,
has lived with Cystic Fibrosis her whole life,
but recently she learned that her disease
has progressed to the point where her life
expectancy can be measured in months,
rather than in years.
The estimated out-of-pocket cost of the
operation, not covered by insurance, is
$100,000.
It was after the Local Association of
Student Councils, a meeting of the school
presidents, learned of this that we decided
we wanted to do everything we could to
help save Kayla.
This is what gave us the idea to hold a
WESCO charity talent show.
Fifteen WESCO high schools have been
collaborating for several months in order to
put on a public, district-wide charity talent
show which will be held 7 pm. on April 22
at the Everett Civic Auditorium.
This represents an opportunity to see
high schools from acrossWestemWashing-
ton coming together cooperatively, rather
than competitively
More importantly though, it is a chance
to see the community come together to
help Kayla. We hope to raise $20,000 to help
offset the, cost efher Opel-"arisen:
The talent shiiw will consist of over 20
acts by high school students from around
the district.
Tickets are $5 at the door, and the win-
ning act will be the performer who raises
the most money for Kayla during'the dona—
tion period after the show.
We need your help to meet our geal. By
coming to the show and donating to the
act of your choice, you can help to save
Kayla.
You can read more about Kayla at http://
www.cotaforkaylahcom.
All funds will be handled through the
Children’s Organ Transplant Association
(COTA).
Thank you from the Presidents of:
Cascade, Edmonds-Woodway, Everett,
Glacier Peak, Jackson, Lake Stevens,
Lynnwood, Mariner, Marysville—Getch—
ell, Marysville-Pilchuck, Meadowdale,
Monroe, Mountlake Terrace, and
Snohomish High Schools
ADOPT PET THIS
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360-629-7055,
31300 Brandstrom Rd
Stanwood
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FOR ALL YOUR PET'S NEEDS '
Snohomish Station
Snohomish
425-322-4012
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