Social Service Officials Fear Pop Tax Cut Will Spill Over Some Argue That New Bill Leaves Programs Open To Future Cutbacks

Lawmakers were eager to roll back soda pop taxes, but local officials fear the Legislature may someday do the same with social service programs the taxes pay for.

Legislators have sent a bill to Gov. Gary Locke that would reduce the $1 tax on every gallon of soda pop syrup to 50 cents. The cut would benefit businesses, such as convenience stores that heavily rely on soft drink sales.

Administrators of social service programs fear they will lose part of a dedicated fund aimed at assisting their causes. The soda tax was approved by voters in 1994 in a package that included taxes on alcohol and cigarettes to create the state’s Violence Reduction and Drug Enforcement account.

Senate Bill 5737 would replace the money lost from the $58 million-a-year account by about $4 million per year, with general fund money. Some argue that leaves the programs’ money open to future cuts.

“Any time there is something that isn’t earmarked, it makes it more vulnerable,” said Gary Livingston, superintendent of Spokane School District 81. “It’s not protected any more.”

The district received about $200,000 in VRDE account money in fiscal 1996-97 for security guards and drug and alcohol education programs. The account also contributed about $180,000 to both the Community Network in Spokane and Greater Spokane Substance Abuse Council. The Spokane Sexual Assault Center also received $116,000 from the account.

The bill alters a tax plan that voters approved in 1994. Meanwhile, Republican lawmakers have been adamantly opposed all session to challenging the voter-imposed spending limit, saying they don’t want to challenge the will of the public.

“So what’s new?” asked Carol Darby, executive director of Spokane’s Community Network, an organization that coordinates social services.

“When did the Legislature start listening to the voters? Legislators do exactly what they want to do, and they forget to ask us.”

Jim West, a Spokane Republican and the Senate’s top budget writer, said by providing general fund money to make up for the tax rollback, the Legislature is doing what voters asked.

“Voters approved money for (the programs),” West said. “The mechanism by which we fund them should be of no concern.”

But Susan Fabrikant, director of the Spokane Sexual Assault Center, said the bill threatens programs’ financial continuity. Linda Thompson, executive director of the Greater Spokane Substance Abuse Council, said the programs shouldn’t have to compete with other general fund priorities.

“Once it goes into the general fund, then you have the fighting and scrapping with everyone else,” Thompson said.

West says program managers shouldn’t worry.

“It’s hand-wringing,” he said of their complaints. “If we wanted to cut the VRDE funds, we would have done it.”

Rep. Brad Benson, a Republican who owns a Spokane ice cream parlor, said the cut will mean about $3 or $4 per month for his business, but it could be more helpful for other small businesses.

“I don’t think voters were focusing on pop when they set this up,” Benson said. “We should look at what voters want and not where the money comes from.”

, DataTimes