April 17, 2009 in City

Tax, fee plans may induce sticker shock

Tuition, utility, cable included

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OLYMPIA – As Olympia struggles to agree on a major tax plan to send to voters in November, they’re also talking about a lot of small things that will never appear on any ballot – but that are still likely to cost you.

Among them:

•Letting cities impose a 6 percent tax on water and sewer districts.

•Allowing state college tuition increases of nearly 30 percent over the next two years.

•Letting local school districts collect tens of millions of dollars more in property taxes.

•Raising some court fees by $50 to $200.

•Tripling the $50 “document fee” that auto dealers can charge buyers.

•Letting counties tack a new 6 percent tax onto power, garbage, cable-TV and other utility bills for residents who live outside cities.

•Charging a new, voluntary $5-a-car annual fee for state parks.

•Boosting the costs of hunting and fishing licenses, as well as raising licensing fees for thousands of health care workers.

Sen. Mark Schoesler, R-Ritzville, predicted sticker shock as the increases add up.

“Wait until you see the multiplier effect of all these taxes and fees on the average citizen,” he said.

Most of the proposals come from majority Democrats, who are grappling with a $9 billion budget shortfall over the next two years. Republicans have argued for more cost-cutting, but Democrats say that some increases are crucial to easing devastating cuts.

Schools, for example, are facing nearly $1 billion in cuts, compared to what it would cost to maintain current services. In the face of thousands of teacher layoffs, Gov. Chris Gregoire recently proposed letting dozens of school districts collect $62 million in taxes that voters have approved, but that a state tax limit prevents schools from collecting. Gregoire wants to temporarily lift that limit.

The move “will provide critical relief to many of these districts to keep their programs intact,” she said.

In many cases, lawmakers are trying to help cash-strapped local governments – such as cities and counties – by changing laws to let them increase their taxes.

“But the effect for the homeowner or business is the same,” said Paul Guppy, of the conservative Washington Policy Center.

Guppy said that it can be hard for voters unhappy with tax increases to figure out who to blame. The local governments point to state lawmakers, saying they allowed the changes. And lawmakers point back at the locals, which actually get the money.

At the state level, House lawmakers will hold a hearing today on their leading tax plan. It would boost the state sales tax by about a third of a cent for the next three years. If voters agree to that in a statewide vote in November, the state would collect hundreds of millions of dollars to help pay for health care programs across Washington.

Budget writers argue that they have few good options this year.

The alternative to the big tuition increase, they argue, is to force students to pay for an extra year of college just to get the classes needed to graduate. The new county utility taxes would pay for law enforcement and work on public buildings. And without the millions of dollars expected from the $5-a-car park fee, proponents say, Washington will be forced to close dozens of popular state parks.

Earlier this week, Rep. Kathy Haigh recalled promising college students that lawmakers wouldn’t have to increase tuition more than 7 percent.

With state revenues worsening, that was a promise she couldn’t keep. On Monday, she introduced a bill to do away with the 7 percent limit.

“It’s a very difficult time for all of us,” she said.

Richard Roesler can be reached at (360) 664-2598 or at richr@spokesman.com. For more news from Olympia, please see www.eyeonolympia.com.

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Seven comments on this story so far. Add yours!

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  Michael Momb on April 17 at 5:37 a.m.

  “That government is best which governs least”. The solution is not more taxes, it is to cut expenses. When will Olympia get a clue?

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  DocTom on April 17 at 7:23 a.m.

  I have just read on Google that the unemployment rate is now 11.4% and climbing. The owners of the top 3 malls in the area have filed for bankruptcy. People are running around endeavoring to make ends meet. It well appears that our Un-representatives in Olympia are out of touch with their constituents. We are cutting back on virtually everything in order to survive. How in the world can we then afford additional taxes, fees, levies and “other” hidden costs? Why in the world is it impossible for the State of Washington to cut back on it's expenses as we are doing? These “elected officials” are completely out of touch with reality. I am NOT political, however when my budget is running in the red, I am not impressed by the threats of more Olympic taxation. The frustrating thing remains that absolutely nobody in Olympia will ever read this comment, nor do they care.

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  Ninch on April 17 at 8:06 a.m.

  I am willing for our governments to be forced to get leaner over the next two or three years. ( I had to do the same five years ago.) Surprising what one learns is important if one has to “suffer” a bit with less. One soon will discover that either the government programs were not previously performing efficiently (or really needed), and/or new innovative ideas are generated to bridge the gap. Right now too many government officials (and employees) are clinging to the status quo instead of being progressive with thought and action… you know for that “change” so many voted for.

  I am against all new taxes and higher fees except the “voluntary” auto license fee for parks. That is a good idea that will have many takers. (Someone was thinking outside the box here.)

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  Megan_B on April 17 at 8:30 a.m.

  Of all things to tax, it's a wonder what the legislators will choose. Higher fees for medical licenses? REALLY!!?! The hard-working individuals who enter the medical field usually have to do it knowing that they will be getting paid not-nearly enough for the work they do, and have to take continuing classes and renewing their licenses every so many years in order to keep their positions. In a time when health care is in need more than ever- why would we choose to make it harder to convince people to enter such a back-breaking field? CNAs and RNAs already enter their jobs knowing that they are taking on one of the most physically-exhausting and injury-probable jobs out there. Most will take and pay for a 6 month course, pay for their licenses and certificates, and then try to find a job where they might make over $10 a hour if they are lucky. This is not the target group to be charging right now.

  College tuition increases of 30 percent??? It's already hard enough for most families and students to try to afford to go to school. With a decreasing amount of financial aid, scholarships, and grants, it's becoming even harder. Education is the main ticket to a successful society. With the gain of education, students gain a better future for themselves. By raising tuition prices to such an extreme level —DURING A RECESSION— we would be rejecting a large percentage of middle and lower class students form entering higher education. Many of these students could have been our next leaders, created the next generation of jobs, and could have probably been capable of coming up with much better ideas than this one.

  Go ahead and tax cable TV, maybe it'll encourage people so spend more quality time with their families that doesn't constitute sitting in front of the TV watching reality TV shows.

  And I agree with Ninch, the $5 per car for parks isn't a bad idea. In fact, i hope it works.

  But as for everything else listed, there are better, more helpful alternatives. I know I'm starting to sound like a broken record: but lets put greater taxes on vices! Instead of a 6 percent tax on necessities like water and electricity, how about a 12 percent tax on alcohol and tobacco? For responsible citizens, this would be merely pocket change (or nothing), and for those that need to learn to break away from their addictions of these health-damaging substances, well, at least they would be helping their communities in some way. If we're feeling extra tax-happy, we can tack on junk food and porn to the list.

  It's more important that we are punished for bad behavior, not for having hopes of our kids getting a college degree.

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