A PUBLICATION OF THE EVERGREEN FREEDOM FOUNDATION 1THE NACHO COP 3 NO gENErAl TAx iNCrEAsE buT budgET sHENANigANs AbOuNd 12

LIVING LIBERTYJUNE 2009 | WWW.EFFWA.ORG A PUBLICATION OF THE EVERGREEN FREEDOM FOUNDATION

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O n May 6th, the Evergreen Freedom Foundation launched its groundbreaking Report Card on Wash-

ington State’s Elementary Schools 2009, a joint project with the Fraser Institute in Vancouver, B.C. The report caused quite a stir state-wide, receiving broad attention and making headlines in most major newspapers.

Over 1,100 schools have been weighted and ranked across the state, and an individual report card with five years of data compiled for each one. The data come directly from the Washington Assessment of Student Learning (WASL) scores kept by the Office of the Superintendent of Public Instruction.

We chose to use WASL scores not because we think it’s a great test, but because it’s the only assessment available that most students in the state take. When the WASL is replaced with something else, we’ll build an information bridge so parents can still have five years of comparative data.

Unlike other report cards, this report is statistically reli-able and fundamentally simple in its content and presen-tation. It offers trend data, five years of data for reading, writing, math, and science, low-income achievement gap information (that tells how well a school meets the needs of their low-income students), and a statewide ranking. The goal is to provide the most important information to the people who have the most invested—you.

There’s good news and bad. The good news is that there are gems all across the state, meeting and outper-forming the state average. In some cases they persevere in the face of difficult challenges—like poverty, signifi-cant student turnover, or a large multilingual popula-tion. Sometimes it’s an education system that doesn’t lend itself to innovative success. All the red tape of over-regulation is discouraging at best and debilitating at worst. Yet, some succeed in spite of the system.

The bad news is that this isn’t true for all schools. Four schools—and mind you, these are elementary schools—got a zero on the Report Card’s overall rating scale of

0 to 10 for 2008. That doesn’t mean they didn’t do any-thing, but it does mean no other school performed any worse.

Fifty-eight schools didn’t make it to the 3.0 mark, and a total of 540 fell below the state’s overall average of 6.0. What’s more, the subject matter on the WASL is fairly weak to begin with, and “proficiency” only requires a 60 percent.

This isn’t the kind of news people like to hear. It’s eas-ier to sit back and let the state look for a magic formula to fix education—which has unfortunately become part of the state’s regular job description. Yet, while legisla-

EFF causEs a stirwith thE launch oF thE rEport card on washington statE’s ElEmEntary schools 2009by Diana Cieslak

“...rEportErs should bE singing thE praisEs oF

thosE ninEtEEn schools. thE principals’ phonEs should bE

ringing oFF thE hook with calls From tEachErs and administrators asking

what thEy’rE doing right.”

Continued on next page

2 LIVING LIBERTY

34

568101112

“Quote”

Evergreen Freedom Foundation PO Box 552

Olympia, WA 98507(360) 956-3482

Fax (360) 352-1874 info@effwa.org • www.effwa.org

VOLUME 19, Issue 6

EFF’s mission is to advance

individual liberty, free enterprise and

limited, accountable government.

This Issue

Publisher:Lynn Harsh

Editors:Steven MaggiRich Frias

Layout:Joel Sorrell

JUNE 2009

LETTER FROM LYNN | by Lynn Harsh THE NACHO COP ELECTORAL COLLEGE UPDATE | by Trent England ON THE GROUND IN CARSON CITY, NEVADA WA STATE FERRIES INSPIRE NEW ‘FERRY TALES’ | by Rob Piercy / King 5 News

CITIZENSHIP & GOVERNANCE CENTER: LEGISLATIVE WRAP-UP | by Trent England TAKE THE FIELD WITH GLENN BECK ON SEPTEMBER 26 REJECTING NEW CONTRACTS WILL HELP END UNION CONTROL | by Dennis Redmon

WORKER FREEDOM PREVAILED IN 2009 LEGISLATIVE SESSION | by Scott Dilley NEW SCHOOL REPORT CARD REVEALS OKANOGAN GEM | by Scott St. Clair MEMORIAL DAY—DID YOU FORGET? | by Scott St. Clair THE CONSEQUENCES OF TEACHER STRIKES | by Michael Reitz THE (TEA) PARTY’S OVER. WHAT NOW? | by Lasse Lund STATE SHOULD GET OUT OF THE BOOZE BUSINESS | by Michael Reitz

NO GENERAL TAX INCREASE, BUT BUDGET SHENANIGANS ABOUND by Brett Davis and Amber Gunn GOVERNOR GREGOIRE VETOES LEGISLATURE’S RAID ON PERFORMANCE AUDITS by Michael Reitz

Featuring• FiveyearsofWASLscoresinRead-

ing,Writing,Math,andScience

• Schooldemographicdata

• Trends

• andanoverallratingonascaleof

0-10

Allinacompact,reliable,andread-ableformat—soyoucanmakethebestdecisionforyourkids

BeginninginMay,searchschoolsonlineordownloadtheentireSchoolReportCardatwww.reportcardwa.com.

FormoreinformationortodonatetoTheSchoolReportCardproject,contactDianaCie-slakatdcieslak@effwa.org.

The 2009 Report Card on Washington’s Elementary Schools

EFF and the Fraser Institute are proud to present

tors listen to professional theorists pitch the latest pana-cea for public education, children are out there being robbed not only of their childhood but their future.

Pretty gloomy, right? That’s where the gems come back into the picture. The Report Card provides us with the fantastic opportunity to actually address certain problems in education—not based on unproven theo-ries—but based on real performance. The Report Card is a GPS to the best and worst schools in the state. We can look to the great schools to learn from their success; we can look to the worst schools and make a commit-ment to change things.

The Report Card’s homepage reports that, “Of the 282 schools serving the highest proportion of low-income families, 19 achieved a rating of average or above.” The articles and comment threads since the release have run along the lines of, “Only 19? Just what we expected.”

Instead of giving these numbers a sad shake of the head, reporters should be singing the praises of those nineteen schools. The principals’ phones should be ringing off the hook with calls from teachers and administrators asking what they’re doing right. Parents at poorly performing schools should be badgering their own principals saying, “Why can’t we be like one of those nineteen?”

Fifteen schools statewide received a ten out of ten. Many are probably thinking “Only fifteen?” It’s under-standable, but all over the state people should be trying to figure out how they can replicate that kind of success.

Sure, this report is full of bad news. How much of that, I wonder, is due to low expectations and complacency?

The Report Card could be the wakeup call we need. The news is gloomy, but there are schools out there that prove a high standard can be met—sometimes in spite of the system. Who better to look to than the extraor-dinary ones (full of ordinary people) that are making it happen?

The Report Card is a challenge to look the issue of school performance straight in the eye and take respon-sibility for what we see.

The Report Card can be found online at www.report-cardwa.com (where you can also download the entire publication).

“All the great things are simple,

and many can be expressed in

a single word: freedom, justice,

honor, duty, mercy, hope.”

– Winston Churchill

EFF causes a stir continued from page 1 . . .

Report CardPodcast available now at www.effwa.org!

A PUBLICATION OF THE EVERGREEN FREEDOM FOUNDATION 3

Letter from LynnLETTER FROM LY NNby Lynn Harsh

The Nacho Cop

He told me I shouldn’t be eating nachos. I told him he shouldn’t be sleeping with multiple partners.

He said it was none of my business. I said I’d trade him my nacho privacy for his lifestyle privacy. He said the nachos were different. “How’s that?” I asked. He said food like nachos increases everybody’s health care costs. “And your lifestyle doesn’t?” I countered.

His name is Jerry. He was the facilitator at a workshop for people living with sexually transmitted diseases. He had several, and his explanation of how to handle the associated health-related matters made it clear he was not monogamous.

I was an escapee from another workshop in the same hotel and had found the only decent couch in the vicinity. It was close to the open door of this man’s workshop. He was definitely more interesting than the lady teaching about changes in estate tax law. The Energizer Bunny on Red Bull would have fallen asleep in her workshop.

So there I was with my nachos during his mid-morning break—a bull’s-eye in the dartboard of his life.

I agreed with him that nachos are a terrible food choice when consumed on a regular basis. He sat down. I confided in him that my motivation to stay healthy and my strong preference for fresh food usually overrides junk food indulgence.

But what if I hated to cook or wasn’t very good at it? What if I preferred a maple bar for breakfast instead of the healthy selection I prepared this morning? Frankly, I should be able to eat whatever I choose…and be willing to pay for the health care costs associated with a bad diet. But the costs of my choices should not be passed on to others, I surmised out loud.

He looked puzzled and slightly amused.

I asked Jerry if he would be willing to pay for the health care costs associated with his high-risk lifestyle. Paraphrasing for the sake of courtesy, he said I had no business sticking my nose into his bedroom. I explained that I’d prefer to stay far away from his bedroom, except he forces me to pay for his choices. Under our current government regulatory scheme, health care costs are shifted from the high-risk people to others who make different decisions about risk.

Since I had his complete attention, I decided to probe one layer deeper. I asked him if he was sympathetic to the movement that would regulate the food industry into providing “healthy” products only. He lit up like a 49-watt halogen bulb when he said “yes.” He gave several reasons why it was necessary.

He saw no legitimate difference between plain-English disclosure to consumers who could then make their own

decisions versus removing their choices altogether. He argued that most people don’t know what’s good for them, and eating better would cut down on national health care costs; therefore, government mandates are necessary.

Hmmmm. I can’t print some of our conversation. But it caught his

attention enough for him to give me two minutes of his time to make my case. He leaned forward with interest and with no malice in his eyes. Our conversation went something like this:

“You know the grim statistics about having multiple partners, many of whom have a sexually transmitted disease. The resultant health care costs are very high for you, but also for everybody else who makes different choices, but has to pay for yours.

“Using your nacho analogy, perhaps most people don’t really know what’s good for them when it comes to sex. And the decisions some people make drive up health care costs for everyone. So government should force all Americans to be abstinent until a monogamous partner can be found who meets government’s regulatory guidelines.”

He chuckled. “It’s dangerous to give government so much power

that its public officials can decide what I can eat and what you can do behind closed doors. You’ll only like that model when your friends are in power and your choices are politically protected.”

He sat up very straight.“If you want me to stay out of your bedroom, quit

asking me to pay for the consequences of your choices. We should foot the bill for our own lifestyle decisions, because most of us will do more of what is good for us while figuring out that the cost of some of our choices is just too high. It’s a human nature thing.”

Now he was annoyed.“Personally, I don’t like your choices. But you’re an

adult; I’m not your mother. I want the right to plead with you to reconsider. I want you to have the right to tell

me to mind my own business. And while you might not even like me or my personal beliefs very much, I’m one of the best political friends you’ll ever have.”

The silence that followed was long. Then he said, “You have really agitated me.” And I understood what he meant. A person who genuinely seeks truth will find it, regardless of where the search begins. It would have been easier for him to have gone on unconfronted, just like it would have been easier for me a few decades ago. He will either have to numb himself to the ideas behind what he experienced, or he will be agitated even more in the months to come.

We tend to ignore consequences of an over-reaching government when the people in power at the time are willing to protect our personal values. After all, some behaviors and decisions could undermine our very existence. But this is a dangerous path. Government officials were never meant to have jurisdiction over the realms best left to individuals, families and religious institutions.

A paternalistic state is not benign. A state with the power to take care of us in our old age, fix our mortgage, manage our health care and intervene in our credit card debt will eventually tell us what we can eat, how we can live and what we can say.

We live in dangerous times. But it’s less because of the enormous, unsustainable costs of government; less because of our malevolent sworn enemies around the world; more because we are letting government erode the essential strength and nature of our country.

Germany under Hitler is an example of what can happen when government defines what is acceptable thinking and what are the allowed personal choices. If you’ve never read or heard the famous poem by Pastor Martin Niemoller, please take the time to do so now:

“In Germany, they came first for the Communists, and I didn’t speak up because I wasn’t a Communist; And then they came for the trade unionists, and I didn’t speak up because I wasn’t a trade unionist; And then they came for the Jews, and I didn’t speak up because I wasn’t a Jew; And then . . . they came for me . . . and by that time there was no one left to speak up.”

His prophetic words still hold true decades after the Nazis murdered millions of innocent people.

Self-governance, however, is the indispensible lifeblood of our constitutional republic, and free people will define it differently. Some people’s choices will be corrosive. So what should we do? If we narrow the gap between the choices we make and taking personal responsibility for their consequences, will this be an adequate safety net? What do you think?

Jerry, my new friend from the conference, has called me since. He’s in the bull’s-eye of the dartboard of my life. I don’t know what Jerry will decide, but he’s still agitated and getting worse every day. That’s a good sign.

With genuine humility and concern for the personal well-being of others, I hope we will agitate as many people as possible toward the self-governance true liberty requires.

4 LIVING LIBERTY

hey call it America’s loneliest road for a reason. As I drove

from east to west across Nevada on Highway 50, I thought about small town and rural America. The people I passed had no way to know that I was on a quest to stand up for them, for their voice in our politics, for their freedom.

My destination was Carson City. If you memorized your state capitals in school, you know Carson City is Nevada’s seat of government.

Their State Senate Legislative Operations and Elections Committee had scheduled a public hearing on the same anti-Electoral College “National Popular Vote” legislation that had just passed in Olympia. The legislation had earlier passed in Nevada’s State Assembly. The Senate hearing coincided with a long-planned family car trip to Arizona; so I re-worked our plans so that I could show up and testify.

National Popular Vote (NPV), pushed by a San Francisco-based lobbying organization of the same name, is state legislation that would create an interstate compact—an agreement between states. If enough states adopt it, it will go into effect and ensure that whichever candidate gets the most votes nationwide wins the presidency.

To most people, this sounds great—at least at first. But NPV would transform American politics in ways its supporters mostly ignore. The Founders created the Electoral College as part of a two-step process to elect the President. They considered, but rejected, the idea of a national popular vote.

The way it works today, the Electoral College process moderates and stabilizes American politics. It forces presidential candidates to build national coalitions while focusing on the most moderate, evenly divided “swing” states. NPV would do just the opposite. It would make it possible for a candidate who wasn’t even on the ballot in all 50 states to win the presidency.

The Electoral College also makes serious candidates talk with a broad cross-section of voters within swing states—even small town and rural voters. It also gives less populated states a boost: every state starts with at

least three Electoral Votes (each state gets as many Electoral College votes as they have seats in the U.S. Senate plus the U.S. House of Representatives; Washington has 11, Nevada has 5).

Under any kind of a pure national vote, candidates would be foolish to venture too far from the largest cities. Half of the U.S. population lives in

our 40 largest urban areas. That’s a winning campaign strategy right there. Campaigning in cities is easier, cheaper, and goes easy on candidates’ manicures. But is that really how we want presidential politics to work?

I think NPV is a dangerous idea, threatening America’s political stability. And no society has ever remained free and prosperous without a stable political system. With these thoughts in mind, I walked through the large glass doors of Nevada’s new legislative building.

In the cafeteria, I found my friend Tara Ross, author of “Enlightened Democracy: the Case for the Electoral College”, who had flown in from Texas just for the hearing. She was with Lynn Chapman, one of the leaders of the Eagle Forum’s Nevada affiliate. We met up with Janine Hansen, Director of the Eagle Forum chapter, and headed for the hearing room.

We quickly discovered that the hearing time had been cut back to just one hour. Two other bills were also on the agenda. On NPV, an issue of national importance, the chair would permit only four speakers on each side.

As happened in Washington, nearly everyone hoping to speak about the issue at the hearing was against NPV.

Tby Trent EnglandElectoral college update: on the ground in Carson City, Nevada

Barry Fadem, president of the NPV organization, spoke for the bill along with a labor union lobbyist from the AFL-CIO. Defending the Electoral College were the two ladies from Eagle Forum, representatives of the Nevada chapters of the Farm Bureau and the ACLU (more on this below), two unaffiliated citizens, Tara, and me.

The two for NPV went first, then just four of us opposed. The chair then called the two NPV advocates to speak again, just to be fair, I’m sure. A committee member asked for the ACLU Nevada representative, who was there but hadn’t yet spoken, to summarize the group’s position.

While the ACLU actually supports some kind of direct national vote for president, it turns out that even their lawyers recognize that the NPV proposal is full of pitfalls. This kind of change, the ACLU representative said, belongs in a constitutional amendment as part of a real national dialogue.

After the hearing we chatted with a few other Senators. None that I talked with knew more than the general subject matter of the NPV bill. But I left Carson City hopeful. The Nevada legislators appeared generally more serious and thoughtful than the average legislator in Olympia.

As it turned out, the bill that had passed with ease in the Nevada Assembly failed to move through the Senate Committee before a key deadline, and thus is dead there for the year. All in all, not a bad vacation.

LYMPIA, Wash. - The fairy tales written by the Grimm Brothers some 200 years ago have been

read by millions of people all over the world.Tales such as "Little Red Riding Hood," "Rapunzel"

and "Hansel and Gretel" have been told and retold for generations.

Now there's a new story: "Grim Ferry Tales." It's a publication by a group called the Evergreen Freedom Foundation, a non-partisan political think-tank based in Olympia.

"Grim Ferry Tales" is a slick, well produced pamphlet chronicling the history of Washington State Ferries. The pages are full of scathing criticisms of how the state ferry system is run.

One page reads: "Ferry Tales: A tragicomedy about failure, folly, and foolishness at Washington State Ferries."

Oby Rob Piercy / King 5 News | Reprinted from King5.comWA State Ferries inspire new ‘ferry tales’

Volunteers have been handing out the pamphlets to passengers waiting in line at ferry docks.

Scott St. Clair, who did the research that went into "Grim Ferry Tales," says the goal is to pull back the curtain and give people a glimpse of how their tax dollars are being used and misused at W.S.F.

"We wanted to take a look at some of the issues inside the ferry system," he said.

The pamphlet hammers W.S.F. for letting unions control what hours ferries and the ferry repair shop operate.

It also goes after the ferry system for not building the boats that were promised after a gas tax hike six years ago.

For ferry passengers, the "ferry tales" are an interesting read.

"There are a lot of things nowadays that frustrate you as far as tax dollars are concerned," said Gary Fisher.

Scott St. Clair says it doesn't have to be that way, but it will take a serious change in culture at Washington State Ferries.

Washington State Ferries has not returned phone calls asking for comment.

watch the video report at: www.effwa.org

EFF’s investigative journalist Scott St. Clair talks with King 5’s Rob Piercy.

lEFt: FlagS Fly atoP NEvada’S old StatE CaPitol buildiNg.right: thE ENglaNd Family, ElSEwhERE oN thEiR tRiP.

A PUBLICATION OF THE EVERGREEN FREEDOM FOUNDATION 5

Planning for Life A complimentAry workshop for eff members And friends

purpose Protect assets from taxes (especially the death tax)

Learn about Charitable Remainder Trusts

Learn about Living Trusts, wills and annuities

Use your life values in estate planning

Choose the right tools for your particular situation

Discuss the current turbulent economy

Learn where to get help

Topics

Alan W. Pratt, CEP, CAPFounder, Pratt Legacy Advisors. 30 years experience in financial services, the past 17 focused on wealth preserva-tion through his Legacy Planning from the Heart process. Board member, The International Association of Advisors in Philanthropy.

Glenn D. Price, J.D.Price & Farrington, PLLC. Graduate of Harvard College and Duke University Law School. 30 years experience in estate, tax, retirement, business and asset protection planning. Presents “Protect Your Estate: The Nuts and Bolts of Estate Planning.”

PRESENTERS

Responding to requests from EFF mem-

bers, this workshop is presented for those

who want to know how to make plans to

protect hard-earned assets now as well as

when the end of life comes. Perhaps you

have never gotten around to doing this.

Maybe you have a plan that needs a tune-

up. If you are unsure that your estate plan

is complete and up to date, this workshop

will give you new ideas and tools that

work. The presenters have been carefully

selected. Each is expert in his field. And

they both love liberty!

Please feel free to bring your attorney or

other professional family advisor. No ser-

vices are sold at this workshop. No one

will ask you to sign up for anything. The

entire day is free, including lunch. It will

be a day full of great information and

good conversation. We look forward to

having you with us (attendance is limited

to 30 people).

June 25 VAncouVer

Thursday, June 25, 2009

9:30 a.m. – 4 p.m.

Red Lion – Vancouver at the Quay

Quayside Room

100 Columbia Street

Vancouver, WA 98660

Complimentary buffet luncheon

Free parking

n so many fronts, this year’s legislative session can only be characterized as bad, but not near-

ly as bad as it could have been. There was such a del-uge of lousy ideas that there simply wasn’t time to pass them all. And Washington state has enough problems that on some issues, even with the far-leftward tilt of the present legislature, improvements were bound to hap-pen. At EFF’s Citizenship & Governance Center, we provided information to legislators throughout the ses-sion. Whether in public testimony or private meetings, we exposed problems and described solutions. Now that the legislature has left for the year, here are a few of the highlights—and lowlights.

spEcial ElEctions: hb 1018, passEd (FortunatEly)A very small step in the right direction, the number of special election days each year was reduced from four to, well, call it two-and-a-half. Special election days of-fer local governments the opportunity to run levy and bond measures away from the regular August primary and November general elections. While special election costs are mostly passed on to the local governments, many accept the trade off because lower turnout can make it easier to pass a tax increase and, after all, it’s not their money. Ideally, there would be either one or zero special election days each year. Nevertheless, any reduction will help prevent stealth elections and need-less election costs and should give county auditors more time to maintain and improve their elections systems.

inactivE votErs: sb 5017, passEd (FortunatEly)County auditors are no longer required to send either a ballot or an application to receive a ballot to inactive vot-ers, that is, to the addresses of persons who have prob-ably moved out of the county. This will reduce oppor-tunities for election fraud and make it easier for county auditors to conduct trustworthy elections.

EmErgEncy clausE rEForm: hJr 4205, ignorEd (unFortunatEly)Rep. Barbara Bailey (R – Oak Harbor) introduced a pro-posed state constitutional amendment to require a su-permajority for legislation containing an emergency clause (language that prevents the people from chal-lenging the legislation by referendum and makes a bill take effect immediately); and once again State Govern-ment & Tribal Affairs Committee Chairman Sam Hunt (D – Olympia) refused to allow even a public hearing on the reform legislation.

FElon votErs: hb 1517, passEd (unFortunatEly)The legislature ensured that more felons will vote in fu-ture elections. This kind of legislation is a major nation-al priority for far-left “progressive” groups. Washington felons will now have their voting rights restored auto-matically once they are out of prison or not under “su-pervision,” eliminating the requirement that fines and restitution also be paid in full before regaining the fran-chise. Considering that the original legal definition of a felony was a crime punishable by death, allowing any-one to vote after a felony conviction is mighty neighbor-ly. This new law puts Washington one-step away from passing out ballots at the prison mail-call.

votE-by-mail: hb 1572, diEd (FortunatEly)A bill to force lone-holdout Pierce County to end polling place voting and adopt universal vote-by-mail failed. The measure would also have prevented other counties from ever changing their minds and returning to polling place voting. This was the second attempt for this legis-lation. Look for it again in 2010.

prEsidEntial ElEctions: sb 5599, passEd (unFortunatEly)Worse than anything else this session, the so-called National Popular Vote legislation could reshape all of American politics. The measure is an end-run around the Electoral College and will only take effect if passed by enough other states to have a majority of Electoral College votes (Washington is the fifth state after Ha-waii, Illinois, Maryland, and New Jersey). If that hap-

pens, those states will ignore their own results in the presidential election and give their electoral votes to whoever has the most votes nationwide. The plan would be sure to run into a tangle of litigation and questions about different standards and ballots in different states, and it would eliminate the need for candidates to build broad, national coalitions to stand a chance of winning America’s highest office.

Please RSVP by contacting Laurie at 1-800-769-6617 by June 22, 2009.

OCit izENShiP & govERN a NCE CEN tER: Legislative Wrap-Up by Trent England

his June many state workers can vote to end forced dues, but this was not supposed to happen. Unions

buy more political influence than any group in Washing-ton state. In 2002, state worker unions successfully lob-bied the legislature for legal changes that allowed them to negotiate collective bargaining agreements with the governor. These agreements could include union secu-rity provisions, which force workers to join the union or pay fees to cover the costs of collective bargaining.

Before this point in time, only 23 percent of state work-ers had voluntarily joined a union.

During the initial round of agreements in 2004, the governor and unions agreed to union security clauses, but workers were told nothing about these changes. The contracts had a written agreement that non-union work-ers must be allowed to vote in exchange for including mandatory dues. Eight days later, the unions counted ballots only from dues-paying union members, violat-ing the all-vote agreement. Thus, our union state was born. State unions went from under $4 million a year in dues to more than $33 million. Dues were raised from a maximum of $40 a month to more than $70 a month over the course of three years. This really primed the pump for public union political cash.

So why can state workers vote now? The governor and unions bargain every two years. In September 2008, the governor’s office agreed to worker raises, but those raises could not be funded, killing the contract. The unions sued the governor and lost. The current contract expires June 30, 2009, and unions and the state renegoti-ated the contracts. New “no-raise” contracts are almost done, and must be ratified by workers. If workers vote “no,” we can stop paying union dues and fees. Beginning July 1, we can begin decertifying the political unions.

Why should taxpayers care about this union state? Non-union workers have more rights under civil service rules than union workers, who are denied due process

IndIvIdual tIckets go on sale onlIne at 8:00 a.m. (Pt) on

FrIday, June 12, 2009

On September 26

t H e e v e r g r e e n F r e e d o m F o u n d a t I o n P r e s e n t s

TAKE THE FIELD

GLENN BECKwith

at Safeco Field

Private Reception & Photo with Glenn Beck(lImIt 80)

• Includesseatingatapremiumtable

• Gourmetboxlunchbyworld-classchefTamasRonyai

• AdmissiontothePrivateReception

• AprofessionalphotowithGlennBeck(atreception)

• A signed copy of the updated edition of Glenn Beck’s book An

Inconvenient Book: Real Solutions to the World’s Biggest Problems

(atreception—nostandinginlineaftertheevent!)

• AStadiumTourticket(for3:15p.m.)

Private Reception (lImIt 160)

• Includesseatingataprioritytable

• Gourmetboxlunchbyworld-classchefTamasRonyai

• AdmissiontothePrivateReception

• A signed copy of the updated edition of Glenn Beck’s book

An Inconvenient Book: Real Solutions to the World’s Biggest

Problems(atreception—nostandinginlineaftertheevent!)

• StadiumTourticket(for3:15p.m.)

On-F

ield

Tic

kets

On-Field Seat with Lunch

• Includeson-fieldseating

• Gourmetboxlunchbyworld-classchefTamasRonyai

On-Field Seat with LunchEarly Bird Special*

• 15%earlybirddiscount

• Includeson-fieldseating

• Gourmetboxlunchbyworld-classchefTamasRonyai

*purchasedbeforeAugust15,2009

(lIm

It 1

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ed!) $ $

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FIrst swIng lIstmemBeRSwIllReceIve24houR

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in disciplinary actions and are even denied the right to file a grievance under union contracts. The unions get their power from political support and state might over workers, not worker votes. The big money they feed into politics all comes from taxpayers through their taxes. Workers and taxpayers both pay for this influence, and honest governance suffers. We workers can better rep-resent ourselves.

Today public union growth is fueled by pay-to-play politics, not worker votes. State workers should speak up for honest labor, vote “no” on the new contracts in June, and keep their dues. Learn more at www.fairwa.org, where you can find and print informational hand-outs for your workplace. We will tell you when and how the contract vote will be held, since rigged votes by the union seem to be the historical pattern in this state. Continued on next page

Rejecting new contracts continued from page 6 . . .Rejecting new contRacts will help end union contRol

T

Safeco FieldJoin us!

at

www.glennbeckeff.com

by Dennis Redmon

Let’s put workers’ rights above paid public union polit-ical influence. We can all stand up for workers’ rights and help build an organization to stop the political unioniza-tion of Washington. State workers have common inter-est with taxpayers and good government advocates. It is time for taxpayers, political players, business, and public workers to work together to change this political union state. It is time.

The first step is for state workers to reject the latest union contract offering and say “no” to more forced union dues and fees.

Dennis Redmon is the president of the Fair Washington Labor Association (www.fairwa.org) and has worked for the State Department of Revenue for 25 years.

“ Eight days later, the unions counted ballots only from dues-paying union members, violating the all-vote agreement.

Thus, our union state was born.”

09.26.09

A PUBLICATION OF THE EVERGREEN FREEDOM FOUNDATION 76 LIVING LIBERTY

8 LIVING LIBERTY

Tby Scott DilleyWorker freedom prevailed in 2009 legislative session

he 2009 legislative session has come to a close, and it appears

the organized labor movement in Washington state has hit a few snags. For the second year in a row, they lost on many of their major legisla-tive priorities. Back in January, I provided some predictions about what we thought were labor’s priority bills. This month, I would like to look back at what happened on many of those issues.

unionizing daycarE cEntErs: HB 1329 would have provided collective bargaining for child care cen-ter directors and workers. This bill, supported pri-marily by the Service Employees International Union (SEIU), would have sent a portion of state subsidies for low-income childcare directly to a union, which in turn would bargain and/or lobby for more state money. The bill sparked several contentious public hearings and various newspapers editorialized against it. The bill, an outright giveaway of public funds to labor unions, passed the House but died after the Senate amended it to be a study bill.

workEr privacy act: One of the more hotly debated topics in Olympia was the so-called Worker Privacy Act (HB 1528, SB 5446), which would have placed limits on what employers could say to their employees about political or religious matters. Included among those top-ics was speech about labor unions and union organizing. EFF defended employers’ rights to free speech and sug-gested that legislators consider adopting a right-to-work law if they are really concerned about ending coercion in the workplace. The gag bill was dropped suddenly due to misconduct by the Washington State Labor Council, which sent out an e-mail stating that “not another dime from labor” would be given to the Democratic Party until the bill was passed. The statement was further evi-dence of the connection we have been documenting for years: the corrosive cycle of union money and political influence.

Education rEForm: Sparks flew at the end of the session when a long-debated education reform bill (HB 2261) passed. While the plan is far from perfect, it is

worth noting that the Washington Education Associa-tion vocally opposed the bill and still did not get what it wanted. It seems some legislators may not be as afraid to stand up to the union as they once were. The WEA has called on Gov. Gregoire to veto the bill in spite of her statements of support for the bill.

highEr Education bargaining: SB 5986, a bill that would extend collective bargaining rights to certain University of Washington extension lecturers, passed the Senate but later died in the House. The bill was estimated to cost UW more than $50,000 for each of the next two biennia. HB 1560 would have allowed collective bar-gaining over additional compensation to certain higher education employees, but this bill also died. EFF encour-aged legislators to look for other funding solutions rather than authorizing more collective bargaining.

collEctivE bargaining contracts: The Washington Federation of State Employees filed a law-suit against Gov. Gregoire earlier this year after she did not include negotiated pay increases in her bud-get. Because of this intentional omission, the pay raises could not be funded by the legislature. The SEIU joined the fray by filing a lawsuit on similar grounds. In mid-February, Thurston County Superior Court Judge Anne Hirsch ruled against the WFSE and upheld the gover-nor’s actions. The union and governor later renegotiated only the non-compensation portions of the contracts. A decision from the state Supreme Court is still pending in the SEIU case. State employees will still receive longev-ity pay increases. Teachers will not receive their cost-of-living adjustments.

pErForming artists: SB 5046 and HB 1276 would have used state law to extend collective bargain-ing rights to performing artists at symphony orchestras, operas, and theaters. EFF and others raised several con-cerns about the bill, which ultimately died. Although meant to help local artists, the bill could have proved fatal for small to mid-sized theaters and concert halls, forcing them to cut the number of programs offered or close their doors. Also, with a couple of tweaks, the bill could have allowed all small business employees in the state to unionize.

collEctivE bargaining transparEncy: Our state collective bargaining processes occur behind closed doors and, therefore, lack transparency and pub-lic accountability. Rep. Bruce Chandler (R – Granger) sponsored HB 1471 to make documents from collec-tive bargaining sessions available to the public as soon as the negotiations conclude. The bill, which was not allowed to have a hearing, would have provided a first step toward more public accountability in the collective bargaining process.

paid Family lEavE: Two years ago the Legisla-ture passed a paid family leave program designed to give $250 per week to a parent after the birth or adop-tion of a child. That program, slated to begin in Octo-ber 2009, was never fully funded. Since the Legislature couldn’t figure out how to make the program work, this year it simply pushed the benefits out three years into the future. EFF continues to be critical of this program because legislators passed it without adequate direction, plans, and funding.

Fewer dollars for lawmakers to spend this year meant public-employee unions had to play defense. While most of these bills hit a brick wall this year, the same concepts will undoubtedly reappear next year. However, for now union leaders had little to show for the money they have collected through mandatory dues and fees, and spent to influence the legislative process.

any so-called experts routinely insist that minority students who attend poor schools in

low-income communities do lousy on tests because of race or poverty.

There’s a new tool that tests this proposition, a tool untainted by bias or opinion that fairly and objectively grades schools based upon test data. The Report Card on Washington State Elementary Schools (www.reportcardwa.com) gives parents, educators, and policy makers the ability to assess at a glance the per-formance of 1,130 Washington state public elementary schools.

It’s true that many poor and minor-ity schools struggle—the Report Card documents this. But it also offers surprises that defy stereotypes. If a

school not only beats the odds but destroys them, then why can’t another—or all of them?

A school that does just that is in Wenatchee’s back yard. Tucked up in the Oka-nogan at the confluence of the Columbia and Methow Rivers is a gem: Pateros.

In the Report Card schools score between zero and 10. Grades are based on five years of Washington Assessment of Student Learning (WASL) scores. Using a proven sta-tistical model, the Report Card determined annual overall ratings accompanied

by performance trends for schools that show significant improvement or decline. The Report Card was devel-

oped and has been used in Canada for over ten years by the Vancouver, B.C.-based Fraser Institute; and it’s sponsored in Washington state by the Evergreen Free-dom Foundation.

Pateros not only exceeds the statewide average grade of 6, but does so handsomely, scoring a 7.7 for 2008, which puts it among the top 15 percent of Washington state public elementary schools.

There’s more. Pateros is one of 288 low-income schools in the state (73.3 percent of its students qualify for free or reduced-price meals). Of them all, it ranks number one—Pateros is the highest performing low-income school in the state of Washington!

What makes it stand out? Spend a day there with students, teachers, and administrators. You’ll see stu-dents mastering academic and other skills and pursu-

Mby Scott St. Clair | This article first appeared in The Wenatchee World.New school report card reveals okanogan gem

WILL ADD IMAGE and/or Pull quote

Continued on next page

“although mEant to hElp local artists, thE

bill could havE provEd Fatal For small to

mid-sizEd thEatErs and concErt halls, Forcing

thEm to cut thE numbEr oF programs oFFErEd

or closE thEir doors.”

SB 5046 AND HB 1276

A PUBLICATION OF THE EVERGREEN FREEDOM FOUNDATION 9

Yes, I waNt to INvEst IN thE EvErgrEEN FrEEdom FoUNdatIoN.

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ing excellence. Everything that’s done and everybody in the building—including the cafeteria cook—focuses on kids meeting educational goals.

Wouldn’t you like your child in a school that has a 100 percent graduation rate where 90 percent of gradu-ates go on to post-secondary schooling at either a com-munity college or a university—a school with thriving music and arts programs where students see teachers as role models and strive to emulate them?

Pateros Superintendent Lois Davis, Principal Linda Christian, and their dedicated staff set high academic standards for students and performance standards for themselves, then they demand accountability. 30 high school credits are required for graduation – most schools require 20 to 22. Students learn because the focus is on the mastery of academic skills and knowledge that are then integrated into every area of the curriculum. That focus is grounded in a passionate belief that every child

can become academically proficient. Again, that’s every child.

Is Pateros perfect? By no means. Capital bond mea-sures have failed every time they’ve been introduced, from 1981 until this past March when a pared-down health and safety measure was passed by voters. Despite hot and stuffy classrooms, the focus remains on teaching and learning. It may be near-80 degrees and crowded, but sixth graders eagerly respond in math class with hands of all colors shooting into the air in response to questions.

When discussing the correlation between spend-ing and school performance, one administrator noted, “Don’t blame results on money or demographics. More dollars would be nice, but they’re not a deal breaker.”

Nor should Pateros be regarded as an aberration. Prin-cipal Christian said, “I can replicate this anywhere as long as I have a dedicated staff.” Regardless of race or income, Pateros’ success could be exported to Tacoma, Seattle, or elsewhere. What seems to stand in the way is a soft bigotry of low expectations.

Without the Report Card a quality school like Pateros would remain hidden. The example it sets is straight-forward. Teach children the knowledge and skills they need not just to pass a test, but to succeed in life. Believe in them enough to expect great things, then set the bar high. Provide strong leadership. Measure performance, then publish the results. It takes hard work but it’s a pretty simple proposition, and Pateros proves it can be done.

Okanogan gem continued from page 8 . . .“. . . Pateros’ success could be exported to Tacoma, Seattle, or elsewhere.”

10 LIVING LIBERTY

y the time you read this, Me-morial Day will have come and

gone. It’s sad that so many allow such an important holiday to enter and leave our lives almost as an after-thought. Originally intended to hon-or Civil War dead, over the years it became a day to commemorate all U.S. men and women who died while in the military. Now, it seems to be re-garded more as a kickoff to summer than anything else; its purpose and meaning overshadowed by the anticipa-tion of boats, barbeques and beaches.

Unless, that is, it’s personal, as it is with me.Less than a month after this issue of Living Liberty

arrives in the homes of Evergreen Freedom Foundation members and friends, my oldest son, Sergeant First Class Mark, will leave for his second tour of duty in Iraq.

Really, I shouldn’t make this bigger than it is, since his job in the army is public affairs. He’ll be assigned to an artillery battalion probably in or near Basra, which until recently was held by the British, as the public affairs non-commissioned officer in charge. Not exactly in-the-line-of-fire combat duty, but in that neck of the woods

“rear echelon” is hard to define, so the net, net, net is that it is a pretty big deal after all.

Most recently, he was on the staff of the European edition of Stars & Stripes, the newspaper for military personnel and their families. Working and living in Germany for three years was a good deal for him, the several weeks he spent in Afghanistan covering that war aside. Prior to that, his first tour in Iraq was deep in the bowels of the Operation Iraqi Freedom green zone where he had two four-star generals as his personal bodyguard detachment (an inside joke based upon a picture taken of him between them). He also served for six months in pre-war Kuwait.

His youngest brother, Marine Corporal Tom, is stationed on Okinawa where he’s a computer network technician, again not a high-danger job.

Still, I am enormously proud of these young men, and I sleep easier at night knowing we are free in part because of what they do. When I think of the “younger generation” that is routinely the subject of complaints—“What’s this world coming to?”—I think of my sons and their fellow soldiers, sailors and Marines. When I do, I’m more satisfied that in their hands the country is safe than I am with most of those who are calling the shots right now.

Not long ago, I was on a panel addressing graduate students at Evergreen State College. Afterward, one

student, a woman, ran me down to tell me that she was a Blue-Star mom. Her son had completed two tours—one Iraq, one Afghanistan—with the 82nd Airborne, one 15-month Iraq tour with a Stryker Brigade, and he was preparing to deploy to Iraq again. Her eyes moistening with a combination of pride and concern, she begged me to understand that not everyone at Evergreen was a raving, anti-military leftist. Parents of military personnel share an intuitive bond, and they seek each other out.

Still, on the day itself my thoughts will be drawn, as they have been since I first learned of him, to Sergeant First Class Nathan Ross Chapman, the first American military combat fatality in Afghanistan. While our

modern culture seems to have morphed Memorial Day and Veterans Day together, we need to remember that Memorial Day is set aside to honor those who, in Lincoln’s words, gave “the last full measure of devotion.” A Special Forces soldier killed by small-arms fire in January 2002, SFC Chapman rests in Kent’s Tahoma

National Cemetery, Section 6, Grave 33.Whether it’s SFC Chapman, the son of the woman at

Evergreen, or my own boys, what we owe those who have served or serve today is impossible to measure or adequately repay. What we can do for them, and especially SFC Chapman and the wife and two children he left behind, is to continue the home front struggle on behalf of freedom and liberty—to live our lives in such a way as to honor them.

But hasn’t that been our common American story since the days of Lexington and Concord? Freedom isn’t free—it’s paid for with the blood and sacrifice of the few who ensure it for the many. Lest we forget…

tudents in the Bethel School District recently par-ticipated in walkouts to protest teacher layoffs.

According to The News Tribune, the school district faces a $12 million shortfall this year, and was forced to give layoff notices to 220 teachers.

Some 1,500 students recently protested these layoffs. While these kids have nothing but the best intentions, it’s worth looking at one of factors that brought about these layoffs.

Back in August 2007, talks between teachers and the Bethel School District broke down, and the teachers went on strike, closing schools for several days. The school district had made what it called a generous offer, considering the funding constraints it faced.

This wasn’t good enough for members of the Bethel Education Association, and the strike commenced. After several days, the union and district agreed to a new con-tract. At the time, EFF’s Bob Williams criticized the

by Scott St. ClairMemorial day—did you forget?

B

“ ‘...we need to remember thAt memoriAl dAy is set Aside to honor those who, in lincoln’s words, gAVe

“ThE LaST fuLL mEaSuRE of dEvoTioN.’”

by Michael ReitzThe consequences of teacher strikes

S

settlement as “unsustainable.” The district was forced to make significant cuts in other areas to meet the teacher union’s expectations on class size and salary increases.

And now, almost two years later, the situation has worsened, leading to the recent layoff notices. Was the strike the sole cause? Of course not. But it was certainly a factor, and folks who care about education should take this object lesson to heart.

We’ve criticized the strategy of teacher strikes before. For one thing (and it’s not a minor point), teacher strikes are illegal in Washington state. Teachers usually vote to strike mere days before school is scheduled to open, thereby putting parents and students in a difficult situa-

“ School officials are left to negotiate hasty bargains to bring teachers back to the classroom, and these bargains can have serious consequences down the road.”

tion. School officials are left to negotiate hasty bargains to bring teachers back to the classroom, and these bar-gains can have serious consequences down the road.

A PUBLICATION OF THE EVERGREEN FREEDOM FOUNDATION 11

omestic Terrorists. Right-Wing Radicals. “Tea-Bag-

gers” (pardon my French; I’m sim-ply quoting MSNBC here). These are just a few choice terms that media outlets and the opposition selected for those who came out to the April 15th Tea Party Rallies to show their support for America and Freedom.

Despite what national media groups may or may not be telling you, April 15, 2009 was a day for all Americans, regardless of race, gender, religion, or political affilia-tion. It was a day when patriots, who had stayed silent up to this point, took the time and the energy to stand up and Push Back against government entities that have pushed them around for too long. They did what was good for America, their fellow citizens, and our future as a nation; but it was only the beginning.

An event is a singular moment in time. While it can be an effective catalyst to begin the process of change, follow-through is required to keep the movement alive. In order to keep momentum, there are steps that each freedom-loving citizen can take. Doing so will ensure that lasting change is effected.

• Influence others at every opportunity about what freedom means to you. Learn to argue persuasively about topics you are interested in, but be open to lis-tening at the same time. Engage others in a conversa-tion, not a lecture.

• Get involved online. This is a medium that the oppo-sition has been in control of for long enough; it is time for freedom-loving people to TAKE IT BACK. Our country needs level-headed, articulate patriots who are willing to connect with others online in forums, social networking sites, online media outlets, and blogs. The conversations are already there; it is now time for us to add to them and persuade a whole new audience.

• Join with others. Become part of EFF’s Citizen Action Network (CAN) at EFFCAN.org. Encourage your family and friends to do so as well. Through CAN, citizens are informed and mobilized to take spe-cific action to roll back big government and advance individual liberty. Be sure to connect with other like-minded organizations, too.

• Become educated. Pick one or two important issues and become an expert on them. You can’t be influen-tial without grounding your opinions in knowledge. Use the many tools available to inform yourself, such as visiting our website (effwa.org) and blog (libertylive.org) daily to keep up on what’s happen-ing in Olympia. TaxSleuth.com is another good tool, enabling you to find out how much you pay in state and local taxes.

• Live what you believe. Be a person of character and live the change you want to see take place in our nation.

ext time you have a cocktail, be sure to toast Lor-raine Lee and Roger Hoen.

Never heard of them? These two members of the state Liquor Control Board

(LCB) unilaterally voted May 6 to increase the price of hard alcohol. Starting in August, prices will jump. A $10.95 bottle of whiskey will go to $11.85; a bottle of rum that is now $15.95 will increase to $17.30.

How can they do that? The state monopolizes the sale of liquor, and the LCB can set prices. People criticize oil barons, but the state’s enjoying the real “windfall profit.” Alcohol sales and taxes brought in $877 million last year.

The liquor board approved the latest price increase because the legislature raided its funds, transferring out $78.6 million to help deal with the state’s deficit. LCB says it must replenish its funds. While the legislature’s move—taking money from a dedicated account—is questionable, you have to wonder if this was a convenient excuse to make more money, considering the revenue the LCB enjoys.

And who actually suffers the hangover from this increase? You, me, and Washington businesses.

Don Poffenroth is co-owner of Dry Fly Distilling in Spokane. With this price increase, the state makes more money off his product than he does. Buy a bottle from the state store, and almost 75 percent of the cost goes to taxes and price markup. “Markup” is the state’s artificial price increase—if the state pays $10 for a bottle, it adds $5 to the cost, and that doesn’t even include taxes.

“We’re the people who can least afford to bear the burden,” Don says. “This forces the little guy like us

to make a decision: are we going to maintain the shelf price?” Don can now make a better profit selling out of state.

The LCB’s price increase had noth-ing to do with supply or demand; the board just decided it needed more revenue.

It’s time to discuss a change to Washington’s Prohibi-tion-era control over liquor. The state should privatize distribution and sales.

Why, in this day and age, do we allow government to run an industry that could be operated in the private sec-tor? Entrepreneurs should be free to pursue legitimate business opportunities.

The Liquor Control Board says it must control sales for the protection of minors and the prevention of excess consumption. But privatizing sales could actually improve accountability by placing these mandates on business owners who want to protect their reputations in the community. Incidentally, a 2006 compliance study by EFF showed that 1 in 5 minors who attempt to buy alcohol from a state store is successful.

Furthermore, the claim that the LCB is only interested in limiting consumption goes against all evidence. Liquor sales in Washington have more than doubled since 1997, with the state’s profit soaring every year. The legislature even approved opening stores on Sunday, which is hardly consistent with the “prevention of excess consumption” goal.

No, the real reason the state would oppose privatization is the money it makes. Again—$877 million in 2008.

But would the state really lose out? Geoffrey Segal of the Reason Foundation has suggested that privatizing the liquor industry is revenue-neutral; and the state may even collect more revenue by eliminating operating costs.

The state would still collect excise taxes on alcohol sales. Plus, new businesses would create jobs and contribute additional tax revenue to the state. The state could divest itself of the infrastructure required for distribution and sales—warehouses, delivery routes, retail stores. The sale of these assets, plus moving the LCB’s employees into the private workforce, would result in significant savings for the state.

Will Washington release the bottle? Doubtful. It may take a citizen’s initiative to get the state out of the liquor business.

by Michael ReitzState should get out of the booze business

N

• Be a deliberate citizen. Attend Legislative Town Halls and hold your elected officials accountable. Be prepared to ask tough questions. Write, call or email them. Run for office or serve on a local board. Choose and support leaders who understand the necessity of the free market and that the primary role of govern-ment is to protect individual rights.

If every patriot makes it a point to integrate these con-cepts into their life in some capacity, the future of Amer-ica will remain bright. If we continue to rely on high-energy, singular events to further the cause of freedom, we will never sustain the momentum that is required to ensure that it remains central to America’s being.

by Lasse Lund, Citizen Action Network DirectorThe (Tea) party’s over. What now?

D

Join canwww.EFFcan.org

“ With this price increase, the state makes more money on a bottle of liquor than the producers themselves.”

The Citizen Action Network. Get Connected. Get Equipped. Make a Difference.

12 LIVING LIBERTY

any are rightly cheering the fact that the Legisla-ture passed a budget that did not include a gener-

al tax hike—something of a pleasant surprise, given the grossly overestimated budget shortfall that some state lawmakers were hoping to use as cover. Still, proving that old habits die hard, the legislative majority engaged in its share of budget gimmickry and financial sleight-of-hand maneuvering to keep the state’s coffers full dur-ing the next two years.

While the sputtering economy may have prevented a general tax hike, it did not stop legislators from enacting or raising targeted fees and backdoor taxes. Over the next two years, taxes and fees—on everything from horse racing licenses to plumbers to hard liquor—will increase by more than $500 million.

Not surprisingly, many politicians tend to regard fees as more palatable than taxes. However, in most cases the line between a fee and a tax is very thin, with fees lending themselves to all sorts of budget chicanery—all perfectly legal, of course. For example, this year the Legislature voted to double the tax on boxing, wrestling and martial arts events, depositing the money into a dedicated account instead of the General Fund. That act converted the “tax” into a “fee.” This enabled the budget writers to avoid the two-thirds vote threshold required by Initiative 960 for tax increases. Fee increases only require a simple majority.

But wait, there’s more! The Legislature can then take the money out of the dedicated account and put it back into the General Fund to avoid the two-thirds vote needed for a tax increase. How? Lawmakers only need to authorize a “fund transfer” in the budget. They can also do that in the supplemental budget next year if they so choose. Pretty tricky, our lawmakers.

In a truly fantastic display of budget maneuvering, this year legislators raided about $80 million from the Liquor Control Board (LCB) account to help cover the

No gENERAl TAx INCREASE,

BuT BudgET ShENANIgANS ABouNd by Brett Davis and Amber Gunn

oes the Washington Legislature hate accountabil-ity? The body certainly sent that message with the

adoption of the state’s 2009-11 operating budget, trans-ferring more than $29 million out the state’s performance audit account. Thankfully, Gov. Gregoire responded to the outcry and vetoed the legislative transfer.

In 2005, the people of Washington enacted Initiative 900, the Performance Audits of Government Act, pro-viding the State Auditor’s Office with a strong man-date to evaluate the performance of government agen-cies and programs. The state auditor was charged with conducting independent, comprehensive performance audits of state and local government bodies to identify inefficiency and provide recommendations for potential savings.

The state auditor acts as an independent investigator, protected from pressure and retribution by other branches of government. One means of accomplishing this inde-pendence was to create the Performance Audits of Gov-ernment Account. This account is funded with dedicated revenue, and state law provides: “Only the state auditor or the state auditor’s designee may authorize expen-ditures from the account.” This statutory “firewall” enables the state auditor to conduct his performance audit duties without fear of legislative retribution.

Unfortunately, the legislature’s budget bill attacked the independence of the state auditor by transferring

state’s deficit. In response, two of the three appointed LCB members unilaterally voted to increase the price of hard alcohol to replace the money. The move essentially amounted to a “stealth tax” increase on liquor—and only two people were needed to do it! There’s plenty of blame to go around for this, but most of it belongs to the broken budget process and the Legislature’s utter failure to fix it, year after year.

Another dysfunctional budgeting technique takes the form of a shell game of sorts, where legislation that might not have a chance of passing on its own is slipped without notice into the budget and advanced quietly among hundreds of other provisos and appropriations. Perhaps the most obvious example is the raiding of $29 million from the dedicated performance audit account, a 74 percent reduction in available funds. This is the account voters created in 2005 when they approved independent performance audit authority for the State Auditor (Initiative 900). The dedicated account was needed to shield the auditor from funding cuts. Last year, the Legislature tried to amend I-900 by taking money from the dedicated account to reimburse school districts for the costs of audit compliance. The effort failed. This year, rather than giving performance audit supporters another chance to stop their raid on the account, budget writers simply amended the voter-approved performance audit law within the budget itself, effectively sheltering their decision from opposition efforts. Such a shell game can only be stopped by a governor’s veto pen—a risk budget writers were clearly willing to take.

The budget stunt work also included a prominent role for the federal government in the form of the American Recovery and Reinvestment Act, the so-called “stimulus” bill passed by Congress earlier this year. Washington state’s newly-minted budget is held together only with more than $3 billion in one-time income from Uncle

Sam. In addition, legislators swiped nearly $800 million from the capital budget and $450 million from the state’s rainy day account, not to mention the half-billion dollars they took from pensions—sure to yield compound pain for future taxpayers. Altogether, the Legislature relied on nearly $5 billion in one-time funds and transfers to balance the 2007-09 and 2009-11 budgets.

Lawmakers wisely decided to forego a general tax increase during an economic recession—a move that will encourage economic recovery and shelter their political careers from possible voter retribution. Still, the two-year spending plan they approved contains more red flags than a May Day parade in the former Soviet Union. Upping fees, borrowing from other state funds and using one-time federal stimulus money to fund ongoing programs mean systemic budgetary problems remain unsolved. The Legislature missed a golden opportunity to find a solution to the state’s penchant for overspending and overpromising. Consequently, the budget crisis our state will inevitably face in two years will be much worse than what lawmakers “solved” this year.

Until the Legislature gets a better handle on how to put together a truly balanced and sustainable budget, taxpayers will continue to see accounting gimmicks, shell games and budget shenanigans.

more than $29 million away from the Performance Audits of Government Account. Adding insult to injury, the Legislature said it would allow the state auditor to reduce transfers from the account by the actual savings achieved as a result of the auditor’s performance audits.

This transfer reduction policy has several flaws that would impair the independence of the state auditor: the auditor is charged with “earning back” dedicated funds but is powerless to enforce implementation of his per-formance audit recommendations; it could result in lim-iting the scope of performance audits to recommenda-

tions that would result only in cost savings that would be willingly implemented by agencies; and it would create unnecessary hostility between the auditor’s office and public agencies that may disparage the motivation behind specific performance audits.

Rather than raiding the performance audit funds, the Legislature ought to implement the performance audit recommendations issued by the state auditor. Initiative 900 performance audits have identified more than $5 bil-lion in potential savings. Implementing these ideas would produce far more benefit to the state than the Legislature can gain by raiding the performance audit account.

Apart from the policy concerns expressed above, the account transfers and amendment to the Performance Audits of Government Act could suffer from the con-stitutional infirmity of violating the single-subject rule (Wash. Const. art. II, sec. 19), by amending substantive law within an appropriations bill.

For these reasons, EFF urged Governor Gregoire to veto the performance audit transfers. In this current economic downturn, families and businesses are forced to evaluate spending and identify every potential cost-saving measure. We expect government entities to do the

same. This is the wrong time—and the wrong way—to siphon off funds of a program that is designed to save the state billions of dollars.

To her credit, the governor cut the $29 million transfer from the state’s budget. But wait—be sure to read the fine print. State Auditor Brian Sonntag has agreed to allow the Legislature to transfer $15 million out of the performance audit account next year. To this end, Gre-goire left in place the authorization for the legislature to make future transfers. So while Washington taxpayers won today’s battle, a new fight will be sure to erupt next year.

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by Michael Reitzgovernor gregoire vetoes legislature’s raid on performance audit funds

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“. . . lEgislators swipEdneARly$800mIllIonFRomThecAPITAlBudGeTAnd$450mIllIonFRomTheSTATe’SRAInydAyAccounT...”

“ This is The wrong Time—and The wrong way—To siphon off funds of a program ThaT is designed To save The sTaTe billions of dollars.”