|
Frequently Asked Questions about...
Simple Majority Vote
for the Approval of School Bonds and Levies
Prepared
for Washington school board members by
Dwayne Slate, Former Associate Executive Director
Washington State School Directors’ Association
September 1998
The Issue
Changing the state constitution by
allowing school levies and bonds to be approved by a simple
majority of those voting (50% + 1). This would replace the current
constitutional requirements: (1) a 40% turn-out (of those voting
in the previous general election) and (2) 60% approval (of those
voting).
The Process
The Constitution can only be
amended by the people, but any proposed amendments must first be
approved by the State Legislature - by a two-thirds vote of both
the House and the Senate - and then by the voters (ironically, by
a simple majority vote).
The Challenge
to
persuade state legislators to allow the issue to be decided by the
people.
Second:
to persuade voters to approve the constitutional change.
What is the history of this issue?
The Washington State Constitution
requires that authorization for "excess" property taxes,
for any purpose, must receive 60% voter approval whenever the
aggregate of state and local "regular" property taxes
exceeds 1% of the assessed value of the property in that county.
This equates to $10.00 per one thousand dollars of assessed
property valuations.
The 60% requirement was placed into
the Constitution by a vote of the people in 1944. For 12 years
prior to that, similar stipulations were part of temporary laws in
Washington until the decision was made to make this a
constitutional provision.
Why was this imposed originally?
Evidence indicates several reasons
why the "super-majority" requirement was popular in the
1930’s and 1940’s.
First was the belief that
non-property owners should not be allowed to raise the taxes of
property owners - at least not easily. In fact much of the
property was then owned by large timber and railroad companies.
Second, the 1930’s were
especially difficult economics times, and all citizens were
concerned about their own fiscal well-being, perhaps more so than
about their citizenship obligations to public education.
Third, the citizens of the West
have always tended to be populists, with an apprehensive concern
about "big government" (or big business, big labor,
etc.) and how it could affect personal lives.
Fourth, the 1930’s and 1940’s
were times of massive school district consolidation. There were
well over 2,000 school districts in Washington in the 1930’s
(there are now 296). Many citizens likely did not even know which
school district they paid taxes for, much less know when the many
and various district elections were being held. Again, the issue
was fear of others voting to raise "my" property taxes -
perhaps without "my" knowledge, much less approval. This
is one reason why the Constitution also requires a
"validation" of these elections. Currently, it requires
that 40% of those voting in an immediately previous general
election (November) must vote in an excess levy election in order
to authorize the levy or bond (with 60% of those voting
"aye").
Aren’t those reasons still valid
today?
To some degree, yes. But times have
changed, and so have the needs of schools.
Privately-owned lands are no longer
the monopoly of a few large corporations. When property taxes are
imposed, land owners increase fees on renters. Senior citizens and
low-income persons can be exempted from property taxes. Further,
election laws now require broad and specific public notice of
elections. It is virtually impossible for citizens to be unaware
of elections, especially with the dramatic increase of
"permanent absentee voters" and vote-by-mail elections,
wherein citizens are automatically sent ballots. Elections should
not be invalidated due to citizens’ conscious decisions not to
vote.
It seems as though school elections
are always being held...
That too was recently changed.
Formerly a school district could offer a second election, if the
first one failed, on any date it chose, within a calendar year.
Now, school elections can only be held on one of six specific
statutory election dates: in February, March, April, May or the
primary or general elections in September and November.
What exactly is the proposal?
We are proposing that the State
Legislature allow the citizens of Washington to vote to change
their own constitution, and thereby allow school levies or bonds
to be approved by a simple majority of those voting (50%+1) at any
election held on any of the six authorized election dates.
In Washington state our
constitution cannot be changed by a citizens’ initiative.
Constitutional amendments must be proposed first by the State
Legislature. The state constitution requires a two-thirds vote of
both the State House of Representatives and the State Senate just
to place the proposal before the people; then, ironically, a
simple majority vote of the citizens would amend their own
constitution. We are only asking that the Legislature allow
Washington voters to address this issue.
Hasn’t this been rejected several
times?
No. This proposal has not been
before the voters since its original enactment in 1944.
It has been proposed for several
years in the Legislature, but without success. In 1994, the
proposal passed the House by a vote of 80-17, but it lacked the
two-thirds requirement in the Senate by 2-3 votes.
Why have legislators rejected this?
Several reasons... some
political, some philosophical and some valid.
Some legislators have felt that
passage of this proposal would make school levies and bonds too
easy to pass, or would raise property taxes too much, possibly
resulting in a "voter backlash" or tax revolt. In fact,
the size of school levies are already limited by law. This
proposal, with few exceptions, would not result in increased
property taxes. Nearly 98% of total school levies are approved
today, if only on a second election. This proposal would likely
result in most school levies being approved on the first attempt,
thus saving taxpayers hundreds of thousands of dollars in second
election expenses. With regard to bonds (a larger percentage of
which are often defeated) this could increase property taxes . . .
now, rather than later. With population growth, the schools must
be built and/or remodeled . . . sooner or later. Proper planning
anticipates growth and builds new facilities now, rather than
later when construction costs (and therefore property taxes) are
higher.
Some legislators fear that they
will be labeled as "supporting higher property taxes"
just by voting to place this proposal on the ballot.
Other legislators believe that any
method to approve local school levies more readily will result in
the state relying increasingly on local levies for basic school
support . . . rather than providing the proper funding from the
state. While that is a valid concern, the law requires the state
to fund Basic Education. The Legislature cannot shirk that
constitutional responsibility regardless of the method of
approving local excess levies or bonds.
Many legislators believe that a
proposal to tax property should properly require a higher approval
standard, since non-property owners can tax those who do own
property. Still other legislators believe that schools are
properly funded today and don’t need the additional support.
Many legislators have stated
support for various "compromise" proposals, but none of
those alternatives has ever garnered the necessary two-thirds vote
either.
And what are those
"compromise" proposals?
There have been several:
- One would allow simple majority
approval (versus the 60%) but only when all school elections
are held at the November general election, with no opportunity
for a second try.
- Another would allow a simple
majority approval, but only when school elections are
conducted entirely by mail-in ballots.
- Another would allow school
levies (for basic school operations) to be approved by a
simple majority, but school bond issues (for capital
construction) would still require a 60% approval.
- Still another proposal would
lower the approval requirement from 60% to 55%.
- And many varieties combining the
above features.
What’s wrong with these
"compromise" proposals?
Basically, it’s a question of
fairness and priorities. It has been difficult to ascertain
which "compromise" could actually gain the required
two-thirds vote in the Legislature, much less the citizens’
approval in a subsequent election. Ballot issues have
traditionally failed when they become too complex, yet the
"simple" proposals have failed to receive the necessary
legislative approval. We prefer the "simple" approach:
the majority rules.
Our State Constitution declares the
state’s "paramount duty" to be the provision for
public schools. However, several state laws have been enacted over
the years that allow other local governments the ability to raise
revenues (for operations or capital purposes) by less onerous
methods than those required of the schools. We believe that to be
not only unfair, but possibly unconstitutional.
Some local governments can utilize
their "regular" property taxes for these purposes,
without any public vote at all - much less with a 60% requirement.
Schools no longer have a "regular property tax." That
revenue source was transferred to the state 25 years ago. Many
county treasurers still refer to this as the "state school
tax," since the revenues - a maximum of $3.60/$1,000 of
assessed valuation - are statutorily earmarked for schools. But
this money goes into the State General Fund. It is appropriated by
the Legislature.
Other local governments can access
other revenue sources (a percentage of the sales tax, for example)
that are also not available to schools. Because these revenues are
not subject to the constitutional 60% requirement on property
taxes, cities or counties may build libraries, jails or sports
stadiums with a simple majority voter approval - if any vote is
taken at all. A few years ago, Pierce County asked voter approval
for a new jail - to be financed by property taxes; it failed due
to the lack of 60% excess levy requirement (40.5%). Their elected
officials then asked voter approval of the same project, to be
financed by a sales tax; it passed with 64.5% support. Again, this
option is not available to schools.
In the Spring of 1997, the
Legislature approved a ballot issue to authorize the construction
of a football stadium in King County, to be financed by a series
of tax deferrals and "user fees." This issue was decided
by a special election in June (not one of the six regular election
dates, much less the November general election) and required only
a simple majority approval.
We think it’s a matter of
fairness, equity and priorities.
- Football stadiums don’t have
to be determined at a general election vote in November.
- Jails don’t have to be
determined by a vote-by-mail election.
- Museums apparently don’t have
to be approved by a public vote at all, 55% or 60%.
Why should legislators demand the
imposition of these strict electoral methods only for schools, the
state’s constitutional "paramount duty?"
What are the fiscal implications .
. . the cost?
The answer to that is rather
complicated and highly speculative.
Washington voters authorize nearly
a billion dollars per year for local excess school levies
($838,604,584 in 1998). Only $15 million in levies were finally
defeated for that same collection period. Most, if not all, of
that $15 million would have been approved had the standard been
50% rather than 60%. This would have been a 2% increase above what
was actually approved.
Some school districts might ask for
a larger levy than they currently run, should 50% become the
threshold. But most larger districts in the state already request
the legally-allowable maximum levy - so any increase in requested
excess levies should be negligible.
Capital bonds are more complicated.
Voter-approved bonds have been as high as $984 million (in 1994)
and as low as $117 million (in 1995). Bonds are normally paid over
a 20-year period. Historically, voters authorize 30-40% of the
districts’ total bond requests in any given year. Most of the
bond "losses" receive over 50% of the vote, so this
proposal likely would increase property taxes substantially for
school construction – at least initially. Most school bonds are
eventually approved, since school repairs and student enrollment
growth cannot be ignored forever. The longer it takes to obtain
voter approval, the higher the cost of construction (due to
inflation, if nothing else). Therefore, the immediate approval of
school bonds at a 50% threshold should not substantially increase
long-term taxes, since the bonds normally are approved –
eventually – but at a higher cost when construction is delayed.
The taxpayers of the school
districts would not have to pay for the costs of running a second
election (school districts must pay the county auditors for
election costs) if school levies and bonds were to pass on the
first election attempt (at 50%). Those additional election costs
will allow taxpayers’ money to be spent on their local schools,
rather than on the costs of another election. These "second
elections" can cost as much as $75,000 per district . . . and
in 1998 over 40 school districts had to offer levies at a second
election. The "simple majority" would likely have
allowed those levies to be approved the first time, thus saving
those added election costs. Only one of the 40 districts running a
"second-chance" levy received less than 50%
"yes" vote on the first election.
Every year there are perhaps 20-50
school districts which "lose" their first levy
elections, but only 2 or 3 of those receive less than 50%
"yes" vote. Every year when those 20-50 districts run
their levies a second time, all but 5-10 are approved. Why run a
costly second election when the over- whelming majority will pass
eventually anyway?
What about the
"validation" issue?
The Washington State Constitution
also requires that an excess levy or bond election be
"validated." To validate an election, 40% of those who
voted in the most recent general election must also vote in this
"special" election. Otherwise the vote is invalid.
In recent years the use of
"permanent absentee ballots" and "vote by
mail" elections has made this almost a moot issue. But many
legislators remain concerned about the possibility of raising
property taxes in an election when relatively few voters
participate. Many of those legislators may support the
"simple majority" proposal, but only with stipulations
designed to assure large voter turn-out; i.e., only at general
elections or only when elections are conducted entirely by mail.
While these concerns are real, we
believe they are overly cautious . . . and can also be unfair.
These added stipulations are not required of other local
governments when voters are asked to approve jails, libraries,
museums or stadiums. Why schools? Further, there have been
organized election campaigns (in opposition to school levies and
bonds) which simply tell voters to "stay home" and
thereby defeat the proposal. Voters who choose not to vote should
not have a greater voice than those who exercise their voting
franchise.
Are school directors willing to
"compromise"?
School board members adopted a
permanent position in 1989 which supports amending the state
constitution to allow school levies and bonds to be approved by a
simple majority of those voting. Period. Every year since, board
members attending WSSDA’s Legislative Assembly rate this as one
of their highest priorities.
However, the discussion continues
as to the best means by which to accomplish this goal. The
principle is clear; the method to implement that principle is a
question of political strategy. The dilemma is that amending the
constitution is a two-part process: it first requires two-thirds
approval by the Legislature, and then (simple) approval by the
state’s voters. Legislators tend to like detailed and complex
measures, while the general voters prefer simple questions.
This issue embodies one of the very
principles of our nation’s creation: the rule of the majority... with protections for the minority.
|