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Wednesday, January 7, 2009

As the state economy faces historically large deficits and lawmakers scramble to figure out how to balance the budget, Tim Eyman is proposing a new voter initiative designed to limit to the rate of inflation the amount of revenue state and local governments can take in. Any additional funds coming into the government would go directly to reducing property taxes.

To read the full text of the Lower Property Tax Initiative, go here.

Brad Shannon, political editor at The Olympian, points out on his Politics Blog, that the timing of the initiative is probably not a coincidence. "I'm guessing the measure is timed to lock in the soon-to-be reduced size of state and local governments, which are shedding payrolls and costs due to the ongoing recession," Shannon writes. "In Thurston County, losses of sales tax and other revenues are leading to large layoffs of staff, for instance, and Gov. Chris Gregoire has proposed some $3 billion in reduced program outlays. In 2010 and beyond, revenues are likely to spring back, allowing cut programs to be restored, unless lawmakers cut taxes or Eyman's measure succeeds."

For more information see our report on sound property tax policy for the state.

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