living liberty april 2004

April 2004 • Volume 14, Issue 4Living LibertyLiving LibertyLiving LibertyLiving LibertyLiving Liberty

Well, high noon has come and gone, and just like in theold westerns, all of the characters in Olympia haveridden off into the sunset. But just how did the guys

in the white hats do? Did legislators make progress toward libertyand responsible government, or did they leave Washington taxpayerstied to the train tracks?

Unfortunately, this wasn’t a great session for taxpayers and loversof freedom. With 3,961 bills introduced, we couldn’t possiblydiscuss them all here. Instead, we bring you the following snapshotof the session: The good, the bad, and the dubious. (For moredetails about any bill you’re interested in, or the voting record ofyour representatives, visit www.washingtonvotes.org.)

The Good

1. Public health and safety. The session ended with at least onevictory for parents and children. HB 2400 passed the House95-0 and the Senate 40-7. The measure prevents the mosttreacherous and dangerous sex offenders from usingpsychiatric programs to avoid serving jail time.

2. Charter schools. Thanks to ten years of hard work on thepart of Jim and Fawn Spady, legislators finally approved charterschools. It is a much weaker bill than EFF would have liked,but it’s likely the first step in the right direction. Forty-fivecharter schools will be permitted to open over the next sixyears, and we believe advocates will be able to show significantprogress in these schools. Unfortunately, the legislation leavestoo much control in the hands of the bureaucracy. Whilesome of the new charter schools will be excellent, others willprobably be terrible. We will keep a close eye on the projectso we can identify successful and unsuccessful practices. In thelong run, it opens the door for competition and choice.

3. Internet sales tax. Legislators defeated an internet sales tax. Aproposed change in Washington’s sales tax structure wouldhave allowed local governments to directly confiscate money

from sales generated through interstate mail orders and onlineretailers. We hope to host a debate on this and other taxalternatives in the days to come.

4. School levies. Another bad idea was killed when legislatorsattempted to make it easier to pass school levies by changingthe requirement for passage from 60 percent voter approvalto a simple majority. Proponents were unwilling to link thesimple majority change to a requirement that they hold levyelections only during general elections every two years.

5. Car tab tax. Disagreements among legislators helped thevoters. In two initiatives (I-695 and I-776), voters spokeclearly and said they wanted flat $30 car tabs. That didn’tstop legislators from trying to work around the will of thepeople. Senate Republicans passed a 0.6 percent motorvehicle excise tax as part of a November ballot measureproposed by the Regional Transportation Investment District(RTID). (The three-county RTID already has the authorityto levy a 0.3 percent tax, but sought to double that.) Theresult would have been a $60 hike in tabs on a car worth$10,000. Any change in the district’s taxing ability must firstbe approved by the legislature, and then approved by thevoters in a referendum. Proponents of increased taxes feltvoters would be more likely to support higher tabs than adramatic increase in the sales tax. By a vote of 52-43, theHouse approved an alternate plan which would have used anodometer tax (per mile) to offset a reduction in the sales taxlevy authority of the district. Unable to agree on the plans,or on whether the new dollars would be off-limits for otherpet projects, the issued died in session.

The Bad

1. Performance audits. Another session, another opportunitymissed. Despite once again passing separate versions in theHouse and Senate, legislators failed to agree on a meaningful

Showdown continued on page 8

Legislative Session Showdown:The Good, the Bad, and the Dubiousby Bob Williams April 2004

Living LibertyLiving LibertyLiving LibertyLiving LibertyLiving LibertyA publication of the Evergreen Freedom Foundation

Letter from Lynnby Lynn Harsh

2

Hello, boys and girls. Just a short lecture today beforeyou turn to the task of preparing for your future. Andyou’d better prepare well, because you’ll need to earn

a lot of money. My generation is sucking it up for ourselves andpassing the bill on to you.

Last fall, for example, Congress voted for the largest federalentitlement program since the1960s. It’s called the MedicarePrescription Drug Act, and you’ll pay through the nose for thisprogram as you start out in your young lives. But if Congresshadn’t passed that act, many politicians might have lost theirnext election because liberals and some seniors would have beenmad at them. So you can see, what choice did they have?

The second big thing my generation did was to expand the federalDepartment of Education. But, really, that was for you. Anyfool knows parents aren’t the experts when it comes to educatingchildren. Parents need rules, boundaries and accountability, andthe federal government is more experienced in enforcing rules,patrolling boundaries and providing accountability than parentsor state legislatures. Like I said, any fool knows this!

And I’m sure you won’t mind paying for my Social Securitywhen I’m old enough to collect it. That’ll take three of you.That’s because there is no Social Security “lockbox,” so themoney government has been taking from my paychecks overthe years to pay for my old age has already been spent by Congresson other stuff.

Some legislators here at home are generous with your futureearnings as well. They passed bills this year that commit you tosupporting a particular big private business for decades to come,while ignoring the plight of tens of thousands of small businesses.Lawmakers said it was really for the best, because it will preservejobs for my generation and will set up jobs for you in the future.Never mind that it robs capital from you and ignores the rulesof how free-market economies actually work.

But Rep. Dunshee from Skagit County was thinking about youwhen he created the Apple Award Grants. He set aside $100,000this past month in the emergency supplemental capital budgetto give public elementary students in four schools $25,000 tospend. This is how it works:

If your school has the greatest combined average increase in thepercentage of students meeting the fourth grade WASL standardsin 2002-03 and 2003-04, you get $25,000, along with threeother top schools. You students can tell the grownups how youwant to spend the $25,000. That’s right! The law says the “grantsshall be used for capital construction purposes as determined bythe students in the schools.” In fact, you don’t even have tospend it at your school. You can build any construction projectyou want, as long as it doesn’t go outside your county.

If I were you, and since this was in the emergency budget, I’ddemand an end to one of the biggest emergencies in school—boredom! I’d install a video arcade and 72" flat screen TVs (forwatching educational documentaries, of course). Or you couldlease your own McDonalds’ franchise for the lunchroom.

Oh, and there’s more emergency spending that might interestyou. Lawmakers decided last year that your parents ought topay for prenatal care for illegal aliens. This year they decided, ifthe illegal aliens live in Yakima County, your parents ought topay for a quarter of a million dollars worth of family planningfor them, too. Apparently this is so they will have less prenatalcare costs. Just think, by the time you become taxpayers, thisidea might spread to the other 38 counties.

Some legislators truly believe it is their duty to redistribute wealthfrom people who have “more than they need” to people whohave “less than they need.” They believe it is their job to definewhat this means. Other lawmakers do not believe redistributingwealth from one person to another is their job, but they vote forit anyway, because they think it is their duty to get re-elected.Or because they’re busy and don’t realize that’s what they keepvoting for.

Besides, boys and girls, there’s this thing called “compromise,”a word you’ll learn a lot about as you grow up. To get somethingfor citizens that will protect their personal liberties andpocketbooks usually means a legislator has to give in to colleagueson other things they really don’t like. Then the issue is who’swinning the most in the compromise: the big-government folksor the lovers of limited government.

Right now the big-government folks are winning, and bettingyour future earnings and personal liberties on their plans. If youdon’t like this, perhaps you can persuade your parents to stopvoting for nice people who say all the right things at home, andthen vote to mortgage your future when they sit under the BigDomes in Olympia and Washington, D.C.

For the children?


3

Contents

4 New ideas about school constructionSome of the world’s most brilliant leaders, entrepreneurs and scientists have beeneducated in decrepit surroundings, places we modern Americans would scarcelybe proud to call a school. It’s a simple reminder that what goes on inside the wallsof a school is far more important than the condition of those walls or who buildsthem to begin with.

5 Tort reformThe following is a letter we received from Marilee Koewler. She and her husband, Tom,are medical professionals, but will be leaving the state due to the rising costs of medicalmalpractice insurance and taxes.

1 Legislative session showdownWell, high noon has come and gone, and just like in the old westerns, all of thecharacters in Olympia have ridden off into the sunset. But just how did the guysin the white hats do?

6 The new meaning of “emergency”It used to be supplemental state budgets were reserved for times of emergency,when unforseen circumstances created immediate needs midway through a two-year budget cycle. Well, no more.

7 Sold and closing

Evergreen Freedom FoundationPO Box 552

Olympia, WA 98507(360) 956-3482

Fax (360) [email protected] • www.effwa.org

Living Liberty is a publication of theEvergreen Freedom Foundation.

Editors:Lynn Harsh

Marsha RichardsPublisher:

Joel Sorrell

EFF’s mission is to advance individualliberty, personal responsibility, and

limited and accountable government.

Nothing in this publication should beconstrued as an attempt to aid or hinder

the passage of any legislation.

9 Public employment continues to grow

Quoteof the month

– City Manager David J. Normanexplaining why the city of AlisoViejo, California, almost banneddihydrogen monoxide (H20, other-wise known as “water”) due to itsperceived health risks.

“It’s embarrassing. We had aparalegal who did bad research.”

If people like me with a reasonable allotment of talent and capital cannot make it,what does that predict for other business owners?

Contrary to statements from various officials that state employment has decreasedover the past year, overall employment in 2003 actually increased by 444.5 full-time equivalent (FTE) positions.

Don’t miss EFF on the radio April 5, 12, 19 and 26!An EFF staffer will give an update on the week’s hot issueseach Monday at 8:30 a.m. on the Mike Siegel Show, whichairs on KTTH - 770 AM in Seattle and surrounding areas.


4

Some of the world’smost brilliant leaders,entrepreneurs andscientists havebeen educated indecrepit surround-ings, places we mod-ern Americans wouldscarcely be proud to call a school. It’s asimple reminder that what goes on insidethe walls of a school is far more impor-tant than the condition of those walls orwho builds them to begin with.

Yet we have burdened public schooladministrators with the task of putting upbuildings, when we really need their focusto be solely on what’s going on inside thosebuildings. If we look around the country,and especially at our neighbors to thenorth in Canada, we see that providingand maintaining proper educationalfacilities can be done better, faster andcheaper than we do in our state.

A decade’s worth of observation and datatell us, when properly planned, schoolsconstructed using public-privatepartnership arrangements have amazingresults. Typically the structures are builtin less time for less money. They can serveas a multipurpose anchor for an entirecommunity and can enhance the localeconomy. Some even involve parents directlyand daily in their children’s education.

This is exactly the type of innovation weneed in Washington state, whereaccording to some education experts (notnecessarily us), more than 80 percent ofour schools need to be renovated or rebuilt.

In years past, many schools were builtwith timber revenue from state trust lands.This source of revenue has shrunkconsiderably, providing for less than 12percent of school construction costs. New

plans are on the table which will increasethis percentage through increased timberharvests; still, the traditional revenuesources of timber sales, taxes andborrowing won’t be enough. We need toget more value for every dollar spent, andsome common-sense ways exist toaccomplish this.

Municipal/Capital LeaseWith a municipal/capital lease, a privateparty constructs a facility that it will ownfor a typical period of 25 years. A schooldistrict leases the building and maypurchase it from the leaseholder for anominal price at the end of the contractagreement period. This method workswell for facility renovation, too.

In 1996, Texas changed its laws to allowthen-Houston superintendent Rod Paigeto negotiate with a private contractor tobuild two high schools. The companycompleted the job in less time thanexpected and saved the state and district$20 million.

When the province of Nova Scotia faceda declining economy in the late 1990s,officials negotiated with private investorsto pay 85 percent of the lease for a schoolbuilding, and in exchange allowed thedeveloper to retain ownership so it couldbe used for child-care services, nightschool, tutoring, and community andreligious events. Nova Scotia’s Ministryof Finance said: “The key objective is toenable Nova Scotia taxpayers to get bettervalue for their tax dollars by shifting the

responsibility for the operation and/orfinancing of non-core activities to theprivate sector.” In the past seven years,33 new schools have been opened in NovaScotia using this type of leasing system.

An operating lease is another option. Itis similar to the model just describedexcept the lease is classified as securityfor the developer. The school district maynot have the option to purchase theproperty at a nominal price down theroad, though the lease payments canaccumulate toward the purchase. Thisoption is estimated to save 10 to 15percent for a district in the long runcompared to the traditional tax-and-borrow plan.

Service ContractAnother model for renovating schoolfacilities is through a service contract witha private contractor. In this way, a schooldistrict loses ownership of the propertyonly for a short period of time duringrenovation. The private contractor takesout a tax-exempt loan for capital costs,interest and services (allowed by thefederal government), and the contractoroperates and maintains the school duringrenovation.

The best example of this model may bein Greenville County, South Carolina,where officials had planned to spend $1.8billion constructing and renovatingschools over a 24-year period. By using aservice contract agreement, the developercompleted all 72 projects within four yearsfor a total of $780 million.

Satellite SchoolsA fourth model allows non-profitcharitable foundations to house schoolsin facilities such as malls, airports,corporations and other existing buildings.The American Bankers Insurance Groupin Miami-Dade County agreed in 1987 totest this model. Parents who worked at thatlarge facility were encouraged to enroll theirchildren in a school housed in corporateheadquarters. Parents loved the idea ofhaving their children in close proximity.Construction continued on page 10


5

The following is a letter we received fromMarilee Koewler. She and her husband,Tom, are medical professionals, but will beleaving the state due to the rising costs ofmedical malpractice insurance and taxes.

Dear EFF,

I understand you will soon be engaged ina tort reform debate. My husband Tom isa physician, and our family will be leavingWashington for the reasons I’ll discussbelow.

We moved to Everett from Waukesha,Wisconsin, in June 1993. We wereescaping high state and property taxes,and a poorly run medical system. Littledid we know that almost 11 years laterwe would be faced with the sameproblems, but even worse!

I have been trying to educate the publicabout the need for tort reform. Several

years ago, while attending the MBAprogram at the University of Wisconsin, Iwrote a paper on “The Real Cost ofMedical Malpractice” and the costs of

he missed a whole day of patients andspent 18 hours in the hospital with apatient in labor.

Our finances have suffered from highmalpractice costs and low reimbursementrates. The only thing we see decreasing isTom’s income. We have five children, twoof whom are now in college.

I am led to believe that most people Ispeak with, and particularly ourlegislators, do not want to hear theproblems in our health care system. Themedia gives very little attention to thissubject, and whenever they do, they letthe trial attorneys respond by showingvictims of medical malpractice. Thepublic needs to be educated on the facts,and they need to hear that physiciansare indeed leaving the state. Ourlegislators have told me that they do notbelieve there is a shortage of physiciansin Western Washington, and even ifthere was they believe the beauty of thisarea will continue to attract the best andthe brightest. As long as they believe intheir rhetoric, there is no chance forimprovement. Our family can no longerwait for Washington State to wake upand enact the changes needed to preventa total collapse of the health care system.

Unfortunately I have learned that manyof the people who set health care policyare ineffective because they don’t haveenough information, and for the mostpart are entirely clueless. It would berefreshing to see more physicians andnurses who have tried to live within theseinsane regulations actually have someinput into the legislative process.

“. . . medical malpractice premiums have risenfrom $15,000, to $40,000.”

TORT REFORM

ignoring the problem. I wrote about thedire consequences that would result ifchanges were not made in our health caresystem. I believe my predictions havebecome a reality, particularly in this statesince nothing has been done about tortreform.

Although the need for tort reform wasforemost on my agenda, Tom was alsoconcerned about the poor reimbursementrates for Medicare, Medicaid and mostinsurance. He continued to see more andmore patients, work longer hours and earnless money. That, coupled with soaringliability insurance costs, made us realizethat we could no longer stay in Washingtonwithout major changes in the health caresystem. When insurance companies losemoney, they raise their rates, but that doesnot hold true for doctors. In less than threeyears, Tom’s medical malpractice premiumshave risen from $15,000, to $40,000. Tomis one of the “rare” family practice doctorswho continue to do Obstetrics. Even if wewere to stay, Tom said he would stop doingOB. Not only is it a huge liability, it is verytime consuming and not cost effective.Tom’s former clinic now requires familypractice physicians to be in the hospitalfrom the time a woman enters and isdetermined to be in “active” labor. Recently

A big welcome to Booker Stallworth, who is takingover as EFF’s Communications Director. He’ll bemaking sure our free-market message reaches themedia and many other target audiences.

Booker completed a degree in Political Science andCommunications Rhetoric at the University ofPittsburgh. He also spent time back east working

EFF HIRES NEW COMMUNICATIONS DIRECTOR

with the Allegheny Institute and Oliver North’sFreedom Alliance.

When he’s not working, Booker likes to playrugby, hike, and target shoot.

Our former communications director, MarshaRichards, will be directing EFF’s EducationReform Center.


(All dollars in millions)

2003-05 forecasted revenue $22,897.3

Session tax policy <$86.8>

Expenditures $23,226.8

Difference <$416.3>

Remaining total reserves $297.6

*As of 3/12/04 3:47 p.m.

2004 Supplemental Budget Balance Sheet*

6

It used to be supplemental state budgets were reserved fortimes of emergency, when unforseen circumstances createdimmediate needs midway through a two-year budget cycle.

Well, no more. These days, legislators are in the habit of comingto Olympia regularly and spending money every time they do.Writing a supplemental budget has become a routine part of the“off-year.”

This year was no exception. Before heading home, lawmakersapproved a supplemental operating budget that will increase statespending by $145 million. This may not sound like much, butthe state was already on track to spend $184 million more thanit will collect this biennium, and economists warned legislatorsbefore session began that they would face significant deficits ifthey didn’t learn to live within their means.

Combined with last year’s overspending and $87 million worthof tax incentives passed this session, the state will now spend$416 million more in this two-year budget cycle than it willcollect. As a result, we will be facing a $1 - 2 billion deficitcome July 1, 2005.

Is this deja vu? As the Evergreen Freedom Foundation discussedjust two years ago when legislators were negotiating asupplemental budget, increasing spending or expanding programsin the second year of a budget cycle increases the revenuenecessary to continue those programs in the next biennium.

The problem gets even worse when lawmakers use one-timemoney—such as emergency reserves or designated fundtransfers—to finance their new purchases. Such was the caseagain this year, and the state’s reserves have now been drainedto $298 million, a mere 1.3 percent of the state’s total budget.

But perhaps the expenditures included in this year’s supplementaloperating budget couldn’t be avoided. Perhaps they wereemergency needs that couldn’t wait. For example, theprovision to spend $250,000 to provide “family planning”services in Yakima County to a select group of people.Almost without exception, the individuals targeted by thisnew expenditure are illegal aliens, a fact confirmed by theSenate Ways and Means Committee. The provision isalso loosely written, meaning the money could easily bedirected to controversial organizations like PlannedParenthood.

Emergency? You be the judge.

In addition to the $146 million increase in the state’soperating budget, legislators passed a $218 millionsupplemental capital budget to address what theyapparently consider emergency construction needs:

• $6 million to build an Employment ResourceCenter for Boeing. This center may be used totrain out-of-state and foreign workers who willmanufacture parts of the 7E7 outside ourstate.

• $100,000 to provide $25,000 awards tofour public elementary schools whosestudents saw the highest percentageincreases on their WASL scores.Elementary school students get to determinehow this taxpayer money will be spent on acapital project at their school or in theircommunity.

• $100,000 to create a memorial to the lateWilly O’Neil, Jr., an environmental andpolitical activist in Washington state.

Is it possible such expenditures were so urgentthey couldn’t wait until the regular budgetsession? Was it truly necessary to increase thestate’s debt to fund these capital projects?

Perhaps the most important question is: Whathappened to priority-based budgeting? Thiscommon sense approach requires the state toidentify and define its core functions, and fundits highest priorities within available revenue.This guarantees more responsible spendingwithin a balanced budget.

Unfortunately, the governor and legislatorsdropped the ball with this year’s supplementalspending increases.

The new meaning of “emergency” by Bob Williams


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Dear Friends, Colleagues, and others I thought might be interested:

As many of you know from my comments and emails thepast two years, the hotel industry in the post 9/11 environment is experiencing its worst occupancy and

operating conditions in 75 years. The tremendous downturn intravel since 9/11 has put the airline industry in its worst financialsituation ever. Lack of travelers means lack of demand for hotelrooms. For my hotel, located in Seattle, with Seattle’s economyat or near the bottom of the nation, and with the Kingdomegone (along with the events and visitors it brought to town), ithas been brutal. Revenues in 2003 dropped approximately 50%compared to pre-9/11 levels, and this winter plummeted evenmore—to only 30% of last year’s same-month sales levels.

Simultaneously, as I have written in other emails, businesses inSeattle are under assault by local and state government—in theform of innumerable license fee, payroll tax, and utility rate

increases of 25% to 58% or more (editor’s note: see Mr. Yousefian’sarticle in the February issue of Living Liberty).

Given the high inherent fixed costs associated with hotel realestate, and limited opportunities to reduce costs, my hotel’sfinancial situation became desperate over a year ago. Despitelaying off more than half my former 65 employees (reducingannual payroll from $1.2 million to below $600,000), and despitesubstantial interest rate reductions and payment concessions frommy lender, the hotel was losing money at unsustainable rates.

This situation could not go on.

Recently, I sold the University Plaza Hotel real estate to adeveloper who is planning to convert the building to anotheruse. The price was millions below what King County valued thehotel at just before 9/11 and based my real estate taxes on. Forall practical purposes, the equity in the investment, accumulatedover 17 years of reinvesting profits, has been wiped out.

I recently had the sad, painful, and difficult duty of informingmy employees that most of their jobs will soon be gone. It wasone of the worst days of my business career to have to deliversuch news to my employees in the midst of an abysmal job market.

I will soon be looking for something new to do, as well.

I don’t care so much about the money I have lost (compared towhat the hotel was worth before 9/11) as I do about the remainingemployees who are being put out of work. It’s not their faultthat certain politicians I consider corrupt have messed up andovertaxed our local economy to such an extent that a fairlytalented and well capitalized businessperson such as myself—ifI may say so—cannot keep open a previously profitable businesswith 65 employees that I successfully managed for 17 years. Ifpeople like me with a reasonable allotment of talent and capitalcannot make it, what does that predict for other business owners?(Note: my investment group bought the hotel 17 years ago fromthe U.S. Bankruptcy Court. In the 10 years before myacquisition, the hotel had five owners and experienced three

bankruptcies. My ownership hasrepresented the longest stableperiod in the hotel’s 38-yearhistory.)

On the possibly brighter side, Iwonder if there is something I willbe able to do with the lessonslearned and seared into me fromthis experience, and that can beturned into something positive forall concerned.

It is also disheartening tosimultaneously watch localbureaucrats, who have driven

many already struggling small businesses to desperation withfee increases, going to great lengths to encourage developmentin Seattle’s South Lake Union area by changing building heightrestrictions and potentially spending hundreds of millions ofpublic dollars on new infrastructure.

Bureaucrats claim some 20,000 jobs may be created over thenext 20 years. Meanwhile, a few million dollars of extra fees aredriving small and struggling businesses out of business, or outof Seattle.

And, some 96,000 local jobs have been lost in the past threeyears—a number that continues to grow with newannouncements weekly (to which I am now—unfortunately—making a contribution).

Armen Yousefian can be reached at [email protected] or onthe web at www.ArmenYousoufian.com.

SOLD AND CLOSINGby Armen Yousefian

“If people like me with a reasonableallotment of talent and capital cannot

make it, what does that predict forother business owners?”


8

performance audit bill. This failuremeans Washington taxpayers will losethe significant financial benefits ofperformance audits for another year.

2. Priority-based budgeting. Thegovernor and legislators abandonedwhat could have been a sessionhighpoint, and clearly demonstratedthat “Priorities of Government” (POG)are not a priority for them. Last year,EFF applauded the governor and hisbudget team for developing a priority-based budget model, which identifiesthe core functions of government andprioritizes activities and programswithin available revenue. Theconsultant who assisted the state indeveloping the POG model said thesupplemental budget would be a testof the commitment of the governorand legislators. He was right, andunfortunately both failed the test.

By not sticking with priority-basedbudgeting, the supplemental CapitalBudget degenerated into little morethan pork spending, with membersgetting all sorts of goodies in the formof local “construction” projects. Someof the worst include: a giveaway ofmore than 200 acres of farmland tothe Tulalip Indian tribe to use for aBioGas facility; $350,000 for a gymto serve the Boys & Girls Club in LakeStevens; $6 million for the state to buildan Employment Resource Center forBoeing; $100,000 to give four $25,000awards to elementary students who sawthe highest gains on their WASLscores; and $100,000 for a memorialto the late Willy O’Neil, Jr.

3. School levy lid. It’s going up.Legislators redefined school levy lidsso districts can include funds thelegislature did not authorize last yearfor cost-of-living increases and class sizereductions, thus raising the lid.However, this artificial increase in levylids cannot be used for teacher payraises because the law states thatteachers must be paid at the salary

schedule set by the legislature. Eventhough it would violate state law, theWashington Education Association willno doubt argue that the additional fundsshould be used to increase teachersalaries. We will likely see the resultsof this unfortunate decision in the formof more teacher strikes this fall.

4. Tort reform. Medical malpractice tortreform was killed in the House by Rep.Pat Lantz. We believe this action (andinaction) will cost lives. For example,the high cost of medical malpracticeinsurance is driving medicalprofessionals out of Washington. Thereare now only three neurosurgeons leftin Pierce County, and none inThurston County. The high insurancerates are also driving up the cost ofhealth insurance for consumers, forcingmany to drop it entirely.

5. Student testing and educationperformance. Legislators had anopportunity to address low studentexam scores by reforming the K-12testing system and moving to moreaccurate and reliable “value-added”testing. Instead, they decided studentswould be allowed to take and retakethe poorly-designed WashingtonAssessment of Student Learning up tofour times! If a student fails for thefifth time, he or she can “pursue somealternative path for proving how muchthey have learned.” The exact natureof the alternative method or methodsisn’t specified. If some of Washington’sbrightest cannot pass this exam afterfour or five tries, the real problem isthe exam. Lawmakers missed the mark,once again.

6. Teacher strikes. Though some goodbills were introduced to prohibitteacher strikes once and for all, theydidn’t make it through. By allowingschool districts to raise more moneywith local levies, the legislature hasinstead given the WEA additionalammunition to make demands.

7. Boeing contract. The failure oflegislators to examine more than $4

billion that was signed away to enticeBoeing to host its 7E7 assembly inWashington means higher taxes forbusinesses and individuals. Under theterms of the contract, Boeing does nothave to add a single net new job to getthe benefits of the package. Meanwhile,the company has cut (that’s right, cut)3,773 jobs since legislators signed the$3.2 billion tax cut last June. (See articlein this issue for more details.)

In our December 2003 newsletter, wewrote about a lawsuit filed on behalfof a Washington state theology studentwho was denied a state scholarship dueto the religious nature of his studies.In late February this year, the SupremeCourt ruled in favor of the state’s dis-crimination against religion students.

Washington officials justified their dis-crimination by citing the “BlaineAmendment” in our state constitution,which prohibits aid to religiousschools. The amendment was adoptedaround the turn of the century as partof an anti-Catholic effort to preserveProtestant control of public schools.

Fortunately, according to the Ameri-can Center for Law and Justice, thedecision does not impact school choiceprograms and does not prohibit Wash-ington state from choosing to end itsdiscriminatory practices. It simply saysthe state does not have to grant schol-arships to students majoring in reli-gion. The case was argued by ACLJ’sJay Sekulow.

U.S. Supreme Courtrules in Washingtonscholarship case

Continued on page 10 . . .

Showdown contined from page 1 . . .


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9

Contrary to statements from various officials that state employment has decreased over the past year, overall

employment in 2003 actually increased by 444.5 full-timeequivalent (FTE) positions.

To measure growth and spending over time, the state comparesfiscal years (FY), which run from July 1 to June 30. The numbersshow that state employment grew from 103,818.3 FTEs in

2002 to 104,262.8 in 2003. This upward trend is continuingin 2004.

Comparing employment trends in 2004 with the same timeframe in 2003 shows that FTEs are once again increasing. Ifthis year’s trend continues, 2004 will mark the eighth straightyear that state FTEs have increased. State employment has grownsteadily since 1997.

Because the number of FTEs fluctuates each month due toseasonal employment, another way to measure current trendsis to compare months with their corresponding months in pre-

vious years. Comparing January 2004 to prior years, we seethat while state employment decreased in one area (NaturalResources), it still increased overall.

These employment growth numbers are especially troubling inthe context of the supplemental budget legislators just approved.Washington’s current budget now exceeds forecasted revenueby $416 million for this budget cycle. This new spending onlyexacerbates the deficit for next biennium.

Had they adhered to the priorities of government budget model,legislators would have offset any new FTEs and spending inthe budget by reductions in areas of lower priority. This wouldhave allowed taxpayers the security of knowing that future taxincreases will not be needed to pay for government growth.Unfortunately, the stage has been set for just such a scene inthe next session.

Public employment continues to grow by Jason Mercier


10

“We believe in EFF.We appreciate theirability to present factsproperly. What theysay, they can back up.”

John and Idamae Schack (IdamaeSchack not pictured)

Conflict of interest

I support Freedom . . .

The Dubious

1. New primary law. The federal courtsthrew out Washington’s politicalprimary, which allowed voters tochoose the candidate of their choicewithout regard to political parties.Legislators approved a “top two”primary in which the two candidatesreceiving the most votes in the primarymove on to the general election,regardless of their political party. This

will surprise a lot of voters inNovember! This bill may be vetoed bythe governor before this newsletterreaches you. The House also amendedthe bill to default to the Montana styleprimary if the “top two” is challenged bythe parties and the courts throw it out.

2. Gambling expansion. For the first timein seven years the legislature expandedgambling by allowing internet andtelephone betting on horse races.Lawmakers justified the expansion on

the claim that a share of the gamblingfunds would go to in-state horsebreeders and track owners. AuburnDowns and its 21 off-site betting parlorswill now be able to offer betting 24hours a day, seven days a week on anunlimited number of simulcast racesfrom tracks around the world. This waspushed through the legislature for thesake of “saving jobs.”

. . . I support EFFConstruction continued from page 4 . . .

Showdown continued from page 8 . . .

Simon Corporation uses it’s non-profitfoundation to form cooperative efforts withpublic schools to use space in more than15 shopping malls owned by thecorporation. We have one in Seattle’sNorthgate Mall that specializes in olderstudents who otherwise likely would leaveschool altogether.

Status in Washington stateIn 1998, the Washington House TaskForce on School Constructionrecommended school districts have theoption to acquire facilities with lease/

purchase agreements to “provide anoption to the traditional constructionprocess by enabling districts to quicklyrespond to explosive enrollment growthand changing student demographics withfewer up-front costs.”

Opposition to this change is fierce. Somebelieve it opens the door to using publicfunds for private-sector schooling. Othersare adamant that private contractors canonly be allowed to build schools if theypay the employee wages established by thestate, called prevailing wages. This is

current state law, but it is problematic forseveral reasons, none-the-least of whichis that contractors building a school inPe Ell would have to pay the same wagesas if they built a school in Seattle. This isnot practical, and it won’t allow money tobe stretched farther.

State officials should not protect the statusquo when it comes to putting up schools.The only concern is to build appropriate,safe facilities that maximize taxpayerdollars and student learning opportunities.Period!

John and Idamae Schack (Idamae Schack not pictured)


Checking Account–Egiving Systems (Attach a voided check)

Savings Account–Egiving Systems (Attach a voided deposit slip)

I want to invest in the Evergreen Freedom FoundationYes,Dear Friend of EFF,

While we welcome every gift, our greatest need is reliable monthly support. It is imperative for reaching ourgoals. Please consider monthly giving as a solid way to invest in the cause of freedom. Our secure EgivingSystem ensures that more of your contribution goes directly to our work.

Cordially,

VISA Master Card Discover American Express

(required for bank and credit card donations)

Bank Debit/Credit Card Donation Authorization I request my bank or credit cardcompany to transfer funds in the amount of $ each monthuntil further notice. I understand that I am in full control of my donation, andthat I can decide to make any changes or discontinue the service at any time bycalling 360-956-3482 or writing to EFF.

Date

Personal Information

AddressCompanyName

PhoneCity, State, Zip

E-mail

Please indicate your preferred withdrawal date: 1st 10th 20th

Signature

Credit Card # Expiration Date:Your Donations to EFF

are Tax-Deductible

C

Please mail or fax in this form (fax 360-352-1874) or call 360-956-3482.We will send you a confirmation letter for your records.

Please mail or fax in this form (fax 360-352-1874) or call 360-956-3482.

I would like to give a one time gift of $

Does your company offer matching contributions? Manycompanies offer their employees a matching gift programand will double the money they give to charitable

organizations. All that is usually required is for you to send us aform with your check or credit card contribution. We then fill outthe “bottom” section to verify we have received it and send it backto the company. Then they send us a matching check!

And how about this creative idea from one of our innovativemembers? He told his like-minded co-workers that he would matchtheir contributions to EFF (up to a certain amount). Anyone whotook him up on his offer quadrupled their money because theircompany matched both employees’ contributions!

Please ask your company if it will match your contribution toEFF. We are a non-profit 501(c)(3) organization. All contributionsare tax-deductible to the extent allowed by law.

11

Double or Quadruple your money

For more information please contact Juliana McMahan at (360) 956-3482 or [email protected].

AutodeskBank ofAmericaExxonMobilHome Depot

LandAmerciaMicrosoft CorporationSafeco InsuranceCompanyVerizonWashingtonMutual

••••••

•••••

Address service requested

A few upcoming events . . .

April 2 – EverettBob Williams and Jason Mercier will bespeaking at a budget workshop atSnohomish County Council from 7:30 a.m.to 11:30 a.m. in Everett. For moreinformation, please contact Jen Holder at425-388-3494.

April 5 – SumnerThe Puyallup Valley Republican Women’sClub will host Lynn Harsh for a wrap-upon the recent legislative session. Lynn willbe speaking from 11:00 a.m. to noon at theSumner Library. For more information, pleasecontact Colleen Wise at 253-922-6087.

April 6 – YakimaAt high noon, the Yakima Rotary will featureBob Williams for an update onunemployment insurance reform. Pleasecontact Jeanne Montgomery at 360-956-3482 for more information.

April 7 – LaceyLynn Harsh shares her insight on health carewith the Panorama City Republicans inLacey, WA. Lynn will speak from 2:00 - 3:00p.m. Please contact Orma Bedzis at 360-438-5425 with any questions.

April 14 – SeattleJason Mercier will talk about the state’s dealwith Boeing at a meeting of Common Cause.The event begins at 7:00 p.m. at Piecora’sPizza (14th and E. Madison) on CapitolHill in Seattle.

Don’t miss EFF on the radioApril 5, 12, 19 and 26!An EFF staffer will give an update on theweek’s hot issues each Monday at 8:30 a.m.on the Mike Siegel Show, which airs onKTTH - 770 AM in Seattle andsurrounding areas.

April 17-18 – EllensburgThe Leadership Institute hosts its YouthLeadership School in Ellensburg. This “boot-camp of politics” shows conservative studentshow to launch a political career. For moreinformation or to register, contact Tygh Bailesat 1-800-827-5323.

living liberty april 2004

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percent tax

internet sales tax

car tab tax

didntstop legislators

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