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Washington Legislature Adjourns:

Budget cuts deep, but there is good news for people with disabilities, too.

by Phil Jordan

June 30, 2003 

The 2003 Washington State Legislature finally adjourned on June 10 after a long, grueling session.  The deep budget cuts have received a lot of publicity, and it is clear that the Legislators thought it was more important to provide additional tax relief to airline giant Boeing than to maintain a safety net for low-income people.  Human services advocates are licking their wounds and trying to regroup before next year's session, which promises to be just as difficult - the state continues to anticipate a huge budget deficit when Legislators return to Olympia next January.  

The Good News

Despite all the doom and gloom, there were some success stories in Olympia this year.  Listed below are some of the good bills that passed and some of the bad bills that failed in the 2003 Legislature.  Everybody who made even one phone call to their Legislators can be proud to the work done this year.  (In the bills listed below, HB stands for "House Bill," and SB stands for "Senate Bill."  In order to pass, a bill must be approved by both the House and the Senate, so HB or SB indicate which house the bill started in)

These horrible bills were developed by the Department of Social and Health Services (DSHS) hierarchy and would have seriously jeopardized services for thousands of people with developmental disabilities.  They would have re-defined the term developmental disability so that many people with cerebral palsy, traumatic brain injuries, autism and many other disabilities would no longer be eligible for services.  Additionally, the bills stated that services would only be provided when the health or safety of an individual was at risk.  This could have eliminated services that help people live successfully in the community.  Thousands of calls from advocates like you stopped these bills dead in their tracks.

Here is a bill that promises to help people with disabilities find good jobs.  The bill says that businesses owned or operated by people with disabilities receive an advantage from the state when bidding on state contracts.  Additionally, certain organizations that employ people with disabilities (called Community Rehabilitation Programs, or CRPs) receive the same advantage.  The CRPs who receive this advantage must prove each year that they are doing a good job of training people with disabilities to get good jobs, and not merely employing people in sheltered workshops at sub-minimum wages.  

This was not a bill that passed, but rather a part of the overall state budget.  This important program allows people with disabilities who are working purchase Medicaid coverage.  Many people with disabilities are reluctant to seek work because they are afraid that the added income of a job will make them ineligible for Medicaid coverage.  Private healthcare insurance usually does not provide the needed coverage that Medicaid has, so this is an important program that helps people with disabilities become more self-sufficient.  

This visionary bill, submitted by Senator Darlene Fairley, called for the closing of Fircrest, selling or leasing the facility, and using the savings to provide community supports for people with developmental disabilities.  The House failed to take a vote on the bill (even though it appeared that enough Legislators would have voted to approve it) so the bill did not pass.  But that is not the end of the story.  The budget that was passed by the Legislature instructs DSHS to begin the process of closing Fircrest over the next three years.  The scary part is that there is no provision for the trust fund to be established.  It will be very important for advocates to return to Olympia next year to pass a bill that will establish this trust fund and guarantee that savings will be used to help people with developmental disabilities live successfully in the community.  

The Bad News:  Revenues vs. Spending Cuts

Before the 2003 Legislative session began, a special commission issued a report that made recommendations to do an overhaul of our state's tax system.  The Gates Commission, as it was called, reported that our tax system was blatantly unfair and needed major changes.  Unfortunately, the Governor and the Legislature ignored their advice.  

In a year when the Legislature faced a $2.6 billion shortfall, they balanced the budget mostly on the backs of people who need human services.  Changes to Medicaid and deep cuts to many social services were the primary response by the 2003 Legislature.

The Washington revenue system favors big business and the wealthier citizens of the state.  One of our state's primary sources of revenue is the sales tax

Sales Tax

The sales tax is charged on many goods and services in the state.  The rate varies slightly by region, but most people pay at a rate of between 8 and 9 percent.  Since the rate is the same for everybody who purchases taxed goods or services, people who make less money pay a greater percentage of their income for taxes than people with larger incomes.  To illustrate this point, think about two people buying a car.  One person makes $1,000 per month ($12,000 per year) and wants to buy a reliable used car that costs $3,000.  The sales tax on the car would be approximately $250.  The sales tax comes to 25% of the person's monthly income.  

On the other hand, let's suppose that a person who makes $5,000 per month ($60,000 per year) also wants to buy a reliable used car.  This person chooses to buy a car that is twice as expensive,  $6,000.  The sales tax on on the car would be approximately $500.  The sales tax comes to only 10% of the person's monthly income, despite the fact that the wealthier person bought a car that was twice as expensive.  

The Gates Commission Report

The Gates Commission noted the basic unfairness of our state's tax system and made several recommendations for change.  The commission stated that "our current system is fundamentally inequitable to low- and middle-income people."  The report went on to say that our tax system "doesn't work well in today's economy."  You can read the report for yourself at http://dor.wa.gov/content/WAtaxstudy/Final_Report.htm.  

Legislators Wary of Making Changes to the Tax Structure 

Legislators have been extremely afraid of angering the voters by making changes to the state's tax system.  They often mention recent elections where voters have seemed angry about the taxes they already have to pay.  Unfortunately, the Legislature has been unwilling to see that tax fairness is an issue that will unite voters, not alienate them.  

Want to learn more about Washington's Taxes?  Try these web sites:

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