A Washington State ferry at dock in Clinton, Whidbey Island. Funding for ferries was gutted by I-695. (Photo: Andrew Villeneuve/NPI)
Summary: Repealed the state’s motor vehicle excise tax (MVET) which provided billions of dollars for Washington’s transportation system, including ferries, road maintenance, and local bus service. I-695 also tried to force public votes on all future revenue increases.
Before Voters In: November of 1999
Ballot Outcome: Measure passed.
YES: 992,715 56.16%
NO: 775,054 43.84%
Fate: Declared unconstitutional by the State Supreme Court (Amalgamated Transit Union et. al. v. State of Washington), but its main intent – repeal of the MVET – was implemented by the Legislature and Governor Gary Locke.
Impact: Because Initiative 695 was declared unconstitutional, it did not actually void the MVET. However, the Legislature did, creating a huge hole in transportation funding.
During the 1999-2001 biennium, the MVET was supposed to generate $1.5 billion in revenue. Because of the Legislature’s action following the I-695 court decision, this revenue was completely wiped out. The state motor vehicle excise tax, before it was repealed, helped to fund the following:
- Local transit districts
- County public health account
- Distressed county assistance account
- Ferry capital construction account
- Ferry operations account
- Motor vehicle fund
- Transportation fund
- City & county sales tax equalization
- Municipal & county criminal justice
The Graph: In 1999-2001 biennium, the MVET was to be distributed in three main ways: 47% to state transportation, 29% to local transit agencies, and 24% to local governments. This funding was lost after the repeal of the tax. The loss of all this money that used to support our common wealth has had a staggering impact. In terms of local distribution for counties and cities across the state, about $496,904,767 (in 2004) was projected to be lost because of Initiative 695 by the state Department of Revenue.
The state Department of Revenue predicted that overall, counting both transportation and local distribution, up to $1,700,000,000 in funding for public services and transportation was lost for the 2001-2003 biennium, statewide, making Initiative 695 one of the most dangerous and sweeping right wing initiatives of all time.
In King County and the cities within King County, the measure eradicated a whopping $186,042,885, (for 2003-2004) according to Department of Revenue estimates. Metro Transit was the biggest loser, with $124,015,975 lost (2003-04).
In Spokane County and the cities within Spokane County, I-695 destroyed a devastating $29,731,406 (for 2003-2004), according to DOR estimates. Again, transit was the biggest loser.
Spokane Transit lost $18,663,288 in potential funds for 2003-2004. Spokane voters either didn’t mind or didn’t realize there would be ensuing cutbacks in bus service – they approved the initiative, 59% (yes) to 41% (no).
Links: These are just a few statistics from the millions of dollars lost to I-695. Want to look up your local jurisdiction, or learn more about I-695? Visit the following links:
- Department of Revenue: Potential Financial Impacts of I-695
- Municipal Research & Services Center: I-695 Resource Center
