By Reps. Joel Kretz and Shelly Short

Thank you to everyone who called and wrote us during the legislative session. Your input is always incredibly valuable. In this column, we will give you a brief rundown on the 2010 legislative session, tax increases and some local legislation that passed. However, you are always welcome to contact our district offices for further information and assistance.

This year, there were areas of strong bipartisan agreement – such as the opposition to the nearly $800 million tax package and the “no-reforms” budget. Unfortunately, when it came to the pro-jobs legislative agenda we proposed, the majority party did not see fit to lend their support to pass it.

During the regular 60-day session, the majority party overturned the voter-approved Taxpayer Protection Act (Initiative 960), allowing a simple majority vote of the Legislature to increase taxes. We believe I-960 was one way to ensure bipartisan work on the budget situation, but once it was undone all talks of spending reforms were ended. We joined the bipartisan opposition to repealing I-960.

After a tax-increase stand-off between the House and Senate, the governor called a 30-day special session to allow Democrats more time to decide on tax increases. By April 13, the majority party passed a nearly $800 million tsunami of tax increases while refusing to make any substantial reforms to government operations and spending. In fact, state spending was reduced by less than 1 percent over last year’s budget. Families in this economy would be ecstatic if they only had to trim their household budgets by 1 percent. In all, the largest solution to the $2.8 billion spending gap was tax increases.

To us, the budget was a missed opportunity to reform and restructure government programs and spending. By focusing on priorities of government, such as education and public safety, we could have made big steps toward stopping the wave of debt created by years of overspending and relying on more than $5 billion in one-time federal bailout money to balance the budget.

On a positive note, there were some good local measures that passed. One was a bill to help local farmers by revising rules around farmers markets. House Bill 2402 will allow non-profit organizations and churches to retain their property tax exemptions when loaning or renting out their property to qualified farmers markets for up to 53 days per year, as opposed to the law’s previous 15-day time limit.

Working with Republican and Democrat colleagues, Rep. Short was able to amend her bill (House Bill 2439) onto House Bill 2402 and helped guide the legislation through the process. With local economies continuing to struggle, and with families trying to keep food on the table, farmers markets are playing a more vital role for both. Farmers markets are also becoming an important tool for local farmers to sell and market their produce.

Another victory is House Bill 2925, which finally ends the stalemate between Seattle City Light and Pend Oreille County over the Boundary Dam lease. The major sticking point was lease payments were not keeping pace with the rising value of property and energy production. This measure addresses the financial impact of hydroelectric energy facilities and generation in counties, specifically Pend Oreille County. The legislation increases lease payments to ensure they are up-to-date to reflect today’s costs to counties that site facilities or already operate one.

With roughly 400 bills passed this year, we encourage you to contact our offices if you have additional questions or would like more information on the budget and new and increased taxes. We work for you and your feedback is always welcome and appreciated.

Reps. Joel Kretz and Shelly Short represent the 7th Legislative District, which includes Ferry, Stevens, Pend Oreille, Lincoln and parts of Okanogan and Spokane counties. Kretz can be reached at (509) 826-7203 or Kretz.Joel@leg.wa.gov.  Short can be reached at (509) 775-8047 or Short.Shelly@leg.wa.gov.

‘With local economies continuing to struggle, and with families trying to keep food on the table, farmers markets are playing a more vital role for both,’ says Short

Legislation introduced during the 2010 legislative session to help farmers markets is now law in Washington state.

Substitute House Bill 2402, which was signed by the governor last week, will allow non-profit organizations and churches to retain their property tax exemptions when loaning or renting out their property to qualified farmers markets for up to 53 days per year, as opposed to the law’s previous 15-day time limit.

Rep. Shelly Short, R-Addy, worked with Republican and Democrat colleagues on the proposal and helped guide the legislation through the process.

“With local economies continuing to struggle, and with families trying to keep food on the table, farmers markets are playing a more vital role for both,” Short said.  “Farmers markets are becoming an important tool for local farmers to sell and market their produce.  With the economic situation we’re in now, and with the increasing competition from around the globe, local farmers markets play a critical role in helping our farmers survive.”

Short said the law’s original time limit of 15 days per year made it difficult to expand farmers markets, which could end up hurting small growers and producers as well as families who purchase much of their fresh produce at these community events.

“By increasing the time limit that farmers markets can occupy the space owned by churches and nonprofit organizations, we’re allowing local communities more options for taking care of each other during these tough times,” Short continued.  “I know in my rural district, folks are getting creative and assisting each other as much as possible.  Whether it’s growing their own herb garden or making their own honey and jam, people are trying to find new ways to help put food on the table and to help their neighbors out.”

In its original form, SHB 2402 included property owned by nonprofit groups only.  However, Short sponsored a bill, Substitute House Bill 2439, to give the increased time limit to church property as well.  Her bill passed the House unanimously but stalled in the Senate.  Short then worked with the prime sponsor of SHB 2402 to have her proposal amended onto the final bill that passed the Legislature and is now law.

“I want to thank Representative Scott White for working with me on this issue and seeing the value of adding church property to his original bill,” Short said.  “There are certainly issues we don’t agree on, but I think this is an excellent example of how a Democrat from Seattle and a Republican from the far Northeast corner of the state can work together to make things better for their constituents.  I’m very pleased with the final legislation and know that both our communities and our families will benefit because of it.”

The 2010 session ended on March 11.  The Legislature is now in the third week of a 30-day special session as Democrat budget writers try to finalize their budget and tax proposals, including their plan to close the state’s $2.7 billion budget shortfall.

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For more information, contact: Brendon Wold, Senior Information Officer: (360) 786-7698

Democrats’ budget relies on largest tax increase in state history to continue failed budget policies

In what Republican Reps. Joel Kretz and Shelly Short called an “unconscionable move,” majority Democrats in the Legislature passed a state supplemental operating budget that assumes nearly $1 billion in new and higher taxes this year alone. The budget would increase taxes by almost $2 billion in the two-year 2011-13 budget.

Democrats hold a 61 to 37 seat majority in the House and a 31 to 18 seat majority in the Senate, along with the governor’s office. They are the sole party in charge of budget writing and, so far, Republicans have been wholly left out of all budget negotiations.

“Democrats are running up the tab in Olympia and sending the bill to taxpayers. Instead of accepting House Republican budget solutions that lift up families and employers, Democrats are forcing more taxes on citizens when they can least afford it,” said Kretz, R-Wauconda. “House Republicans believe small businesses, personal responsibility, lower taxes, smaller government and less government spending are the keys to turning Washington state’s economy around. We have offered viable alternatives to tax increases, but it is clear Democrats are tied to their failed budget tactics.”

House Republicans believe the best way to close the spending gap is to offset it by resizing state government and encouraging private-sector job growth. They offered more than $750 million in government efficiencies and reforms to the Democrat chair of the House Ways and Means Committee more than three weeks ago. None of the belt-tightening ideas were accepted.

“This is a ‘no new ideas’ budget. The majority party doesn’t want any new or innovative solutions that truly reform government and create private-sector jobs. They are sticking to the same disastrous plan of overspending, relying on federal bailout money and holding taxpayers hostage to their tax-and-spend policies. The only folks who make out well in the budget are their special interest friends,” said Short, R-Addy. “This policy of failure is hurting taxpayers and creating bigger deficits into the future. The spending is unsustainable. We simply cannot tax our way to prosperity.”

As passed, the Democrats’ budget assumes the following to balance the $2.7 billion spending gap:

• $857 million in tax increases;
• $641 million in additional one-time federal bailout money (which is dependent on federal legislation that has not passed);
• $236 million in one-time fund transfers from the capital budget and other dedicated accounts;
• $314 million raid of the state “rainy day” account;
• $650 million in spending reductions.

Total state spending under the plan would be more than $30.5 billion, which represents an increase of more than $200 million this year. Revenues are estimated to be $29.3 billion.

The concern among Republicans is short-sighted Democrat legislators are willing to gamble away the opportunity to reform and resize state government in order to pay off special interest groups, including state union members who are supporting tax hikes so many of them receive pay raises.

The Republican lawmakers explained the tone-deafness on the other side of the aisle as a “massive difference in philosophy” between Republicans and Democrats.

“They do not want to hear their policies are taking the state in the wrong direction. Many folks in the private sector have agreed to pay cuts to save their jobs or have lost their jobs due to the difficult economy,” Kretz said. “Government should take that example and apply it to state programs and wages.”

“The state is at a crossroads – either we commit to restructuring spending and the size of government, or we allow the Democrats to commit us all to funding a bloated government that can never have enough of our hard-earned money,” Short concluded.

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For more information, contact Bobbi Cussins, Public Information Officer: (360) 786-7252

‘I just feel like our arguments and our statistics have fallen on deaf ears within the majority party and in the governor’s office,’ says Schmick

Despite a House Democrat budget proposal that officially wipes Pine Lodge Correction Center off the state budget books, two local legislators aren’t giving up the fight for Eastern Washington’s only minimum-security prison for women.

“We’re down, but not out,” said Rep. Joe Schmick, whose 9th Legislative District boundaries include Medical Lake, where Pine Lodge is located.  “We’ve made a very convincing case for the need to keep Pine Lodge open in Eastern Washington.  I just feel like our arguments and our statistics have fallen on deaf ears within the majority party and in the governor’s office.”

Schmick, R-Colfax, and Rep. Shelly Short, R-Addy, met with the governor and Department of Corrections (DOC) chief Eldon Vail last week in an attempt to explain Pine Lodge’s importance to the community and the need for the jobs it provides.

“I know unemployment is high all across this state,” Short said.  “But in rural Eastern Washington counties, and specifically in my district, we have some of the highest double-digit unemployment numbers we’ve ever seen.  The jobs that will disappear if Pine Lodge closes will have a residual impact on the local economies, further distressing a region that is under serious economic hardship.”

Schmick again stressed the fact that based on DOC’s own capacity forecasts, the state will face serious overcrowding if Pine Lodge is closed.

“I’m a numbers guy,” said Schmick, a farmer, small business owner and a member of the House Ways and Means Committee.  “The capacity for female inmates is just not there without Pine Lodge.  And if you talk to corrections officers they’ll tell you that one of their biggest concerns is overcrowding.  It leads to a higher stress level for all and can result in a dangerous environment to both staff and inmates.”

In an effort to address an increasing inmate population, legislation has been introduced to allow early release of non-violent offenders if they have young children.  But both Schmick and Short are concerned about balancing the budget by reducing public safety.

“This is both an economic issue and a public safety concern,” Short said.  “I think our priorities should be protecting our most vulnerable citizens and keeping our communities safe.  We should be able to find efficiencies within the budget rather than risk the health and safety of the general public by releasing criminals early.

“I’d rather see state government get out of the liquor business, the printing business and the information technology business than see us release prisoners early,” continued Short.  “There are employers in this state that can provide these services cheaper and more efficiently than government.  We should also be looking at a complete freeze of state employee salaries, not just the non-union frontline workers as suggested by the governor.”

Schmick said he and Short would be working hard the last two weeks of session to keep Pine Lodge a viable facility in Eastern Washington.

Schmick noted that Larch Corrections Center in Southwest Washington, with similar community concerns and input, remains open in the House budget, while Pine Lodge got the ax.

“That’s an interesting situation,” Schmick said.  “I’m very curious to know what kind of formula was used to make the decision to keep Larch open.  They are a mirror image in many ways to Pine Lodge.  Was the decision political?  Was it based on data that we haven’t seen yet?  There are still questions out there that need to be answered before we close the book on Pine Lodge.

“We still have some time left, but we’re certainly approaching the endgame,” Schmick continued.  “I just want the folks back home to know that we’re still fighting.”

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For more information, contact: Brendon Wold, Senior Information Officer: (360) 786-7698

‘The voters want tax increases to be a last resort not the first option when it comes to dealing with years of overspending,’ says Kretz

Washington state taxpayers had their voices silenced today as majority Democrats in the state House of Representatives approved legislation repealing voter-approved Initiative 960, the Taxpayers Protection Act.

Senate Bill 6130, which passed the House after lengthy debate Wednesday night, eliminates the two-thirds vote requirement by the Legislature for tax increases.

Representatives from the 7th Legislative District spoke out and voted against the bill.

“The voters of this state have said time and time again that the threshold for raising taxes should be a high one,” said Rep. Joel Kretz, R-Wauconda.  “I’m not sure if it’s arrogance or incompetence that leads some in Olympia to so casually cast aside taxpayer protections, but regardless, employers, families and our local economies will suffer because of it.  The voters want tax increases to be a last resort not the first option when it comes to dealing with years of overspending.”

“The public’s response to this issue has been overwhelming,” said Rep. Shelly Short, R-Addy.  “People back in district have been e-mailing and calling nonstop.  The message we’re hearing from them is simple: the public wants more protections from tax increases, not less.  They want more transparency in government, not less.  We joined with our House Republican colleagues to try and stop this effort, but in the end, the will of the majority party prevailed over the will of the people.”

Earlier in the week, House Republicans used procedural motions and parliamentary rules in an effort to stop Senate Bill 6130 from being introduced in the House and referred to a committee.  However, House Democrats successfully referred the bill to a public hearing in the House Finance Committee that took place Saturday morning.

The committee hearing was packed with state employee unions and special interest groups supporting the death of I-960 and higher taxes, while taxpayers and employers testified against the measure.

Kretz said this week’s actions in the Legislature is just the first round of a fight that will last the rest of session.

“Now that they’ve removed the two-thirds requirement to raise taxes, they can ramrod employers and families with a series of tax and fee increases at will,” Kretz said.  “Today’s vote to make it easier to raise taxes is the wrong direction for our state. In my area, unemployment is running at about 15 percent, with the average citizen earning $22,000 per year.  Most of the people in my district would give you the shirt off their backs, if you asked for it. And, from what I have seen, the people with the least are willing to give the most when they see a friend, neighbor or even a stranger in need. But, what I’m hearing from home is that folks are not willing to continue to fund a black hole of a budget in Olympia. They feel it is irresponsible. What I am hearing from constituents, those with the least, is they just do not have any more to give to government. That’s why I cannot support repealing the Taxpayer Protection Act and making it easier to increase taxes and fees on my neighbors who are struggling right now.”

Kretz added that charity begins with neighbors helping neighbors, not government grabbing what’s left in our wallets, if anything, and giving our earnings to the people it chooses are the neediest.

Short expressed concern that with the counties in her district leading the state in high unemployment rates, tax increases will hinder job creation and put more people on state services.

“We need to be taking actions that will help our employers create jobs, not placing further barriers to economic expansion,” Short said.  “Tax increases on employers will stifle job creation and make other businesses think twice before expanding operations or relocating to Washington.

“Our families are stretched to the max, financially,” continued Short.  “They’ve moved beyond ‘belt tightening’ and have had to get creative in finding ways to save money and cut expenses.  State government, it seems, is either unable to think outside the box in the same way or unwilling to offend the many special interests clamoring for more taxes.”

The 60-day 2010 session is scheduled to end March 11.

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For more information, or to schedule an interview with Rep. Kretz, contact Bobbi Cussins, Public Information Officer: (360) 786-7252

For more information, or to schedule an interview with Rep. Short, contact: Brendon Wold, Senior Information Officer, (360) 786-7698.