Tag Archives: freeze on services

Initiative 1033 Cuts $8.7 Billion From Public Services by 2015

Tim Eyman’s 1033 would cut public services by Washington State and its counties and cities by some $8.7 billion over the first 5 years it is in effect. This is on top of current cuts due to the recession we are in.

Because I-1033 would freeze public services at this year’s level next year plus a small adjustment for inflation and population it functions to continue our recession level spending and doesn’t allow for services cut to balance the budget this year to be restored even if the economy improves.. Such actions would surely contribute to continuing Washington State in a recession mode economy and we would lag behind others states in our economic recovery.

The fiscal impact of I-1033 has been determined by the Office of Financial Management to be almost $9 billion over the next 5 years. Specifically they said:

The initiative reduces state general fund revenues that support education; social, health and environmental services; and general government activities by an estimated $5.9 billion by 2015. The initiative also reduces general fund revenues that support public safety, infrastructure and general government activities by an estimated $694 million for counties and $2.1 billion for cities by 2015.”

Here’s the link to the original document -“Fiscal Impact Statement by the Office of Financial Management” so you can read it yourself.


I-1033 would use these funds to offset property taxes. Our current state and local tax burden per capita according to the conservative Tax Foundation ranks us as 35th (with being the highest). Our property taxes rank 25th. Our per capita income ranks 8th.

Using future tax revenue over the baseline to offset property taxes is an income distribution scheme that benefits those that own property but hurts renters and low income families and seniors and working families that do not own property. They will still pay the same taxes but they will see no rebate on their taxes or services that might have been funded with this money.

The big winners under Eyman’s I-1033 are big property owners, corporations, businesses, shopping mall owners, and real estate developers. I-1033 is a reverse Robin Hood scheme taking taxes paid by the poor and using them to pay property taxes for wealthy property owners.

Some 40% of this special interest tax break will go to pay commercial real estate property taxes. Only 65% of households in our state are owner occupied. So 35% of households will see no property tax rebate.

I-1033 is a poorly worded and complex measure that deserves to be rejected by voters. Vote NO on I-1033 this November 3rd, 2009.

Initiative 1033 Offers Taxpayers Free Lunch

No one likes to pay taxes but it is how we fund public services. And who wouldn’t like to get a break on your property taxes as I-1033 proposes. Yet beware, there is no free lunch.

I-1033 basically proposes to freeze government services. Government will not grow under I-1033 and it is false and misleading for Eyman to suggest it will.

Local and state government spending is frozen next year at this year level and will only increase to adjust for inflation and population. And so on for every year thereafter.

If government spending to pay for services increased exactly as Eyman’s consumer price index adjustment allows, all that you’re doing is paying for the same services at their increased cost due to inflation. The problem is that many services government provides like Medicaid for seniors has historically grown faster than the consumer price index.

And any population adjustment just means you can pay for providing services for new members of your community. Individual taxpayers will not see any increase in services provided to them.

So if the economy improves and more sales tax revenue comes in next year compared to this year, any revenue above the I-1033 limit will have to go to pay property taxes. But this is a reverse Robin Hood scheme of transferring wealth to just property owners despite everyone paying sales tax.

There are two problems with this. First not everyone owns property. The US Census Bureau says that only 65% of the households in Washington State are owner occupied. So 35% of households will not see any benefit from I-1033 despite paying sales taxes.

And second the real estate tax reduction covers all property. Some 40% of real estate taxes are commercial. So large corporations like Boeing or Weyerhaeuser and shopping malls like Bellevue Square will also get the same tax break. That’s probably why Kemper Freeman gave Eyman $25,000 to help get I-1033 on the ballot. The more property anyone owns the more of a tax break they will get. Of course Eyman didn’t tell you that you will be helping to pay Kemper Freeman’s real estate taxes.

So besides freezing government services, I-1033 is also a complex wealth redistribution scheme that benefits wealthy property owners. The average homeowner will not see much benefit and will lose much more in terms of public services that we take for granted but which are not free. These include police and fire protection, public libraries, public health, K-12 schools and college and universities, parks and open space, road repair and public transit, services for seniors and disabled people, environmental protection, clean drinking water and clean air, our judicial system and much more.

Read the initiative and understand its impacts before you vote. If you want to keep local control over the quality of life in your community, vote No on Initiative 1033 this November 3rd, 2009. If something sounds too good to be true, it probably isn’t.

for more information on I-1033 go to www.no1033.com .