Category Archives: Statements & Advisories

Eyman attacks courageous lawmakers

Legislation & TestimonyStatements & Advisories

In an e-mail to supporters today, copied to the media, Tim Eyman tried to attack and vilify lawmakers for their tremendous courage in passing legislation that will move Washington forward.

Tim also revealed that he needs a civic lesson.

If Mr. Eyman knew anything about the government of the United States of America and of the state of Washington, he would know that it is a republic. In a republic, citizens vote to elect representatives who pass laws and run the government. Those representatives are directly responsible to the people.

Mr. Eyman acts as if the legislature does not have the authority to pass a transportation package or increase taxes to fund safer roads – which the state Constitution explicitly says it does.

Consider the following:

  • Legislators do not need to go to the people to obtain approval for every law they pass. That completely defeats the purpose of a republic and is wholly impractical. Legislators should also not be guided just by past votes on initiatives and referenda. They should look to the future and not the past in determining what is best for the state of Washington.
  • Making tough decisions is difficult. Lawmakers looked to the future of Washington State and saw that more funding would be necessary to invest in a good transportation network. We have crumbling bridges and roadways that need replacing. So they passed a new transportation funding package to invest in our state’s future and our region’s future despite pressure just to maintain the status quo. This was an admirable effort.
  • Similarly, lawmakers made decisions to invest in better education for our state and to not be constrained by supermajority requirements that allow a minority to control tax votes in the state Legislature. If voters don’t like those decisions, they can always elect new representatives. That’s how a republic works.
  • The initiative process has disadvantages. Mr. Eyman says he “reveres” initiatives for their “transparency and consistency”. Initiatives are not transparent. They’re not subject to the legislative process, which allows for public hearings, compromise, amendments, and changes. The legislative process produces better results because it allows for revision and for collaboration. Mr. Eyman’s initiatives have a history of being poorly drafted and unconstitutional.
  • Christine Gregoire’s words are being manipulated. When Gregoire was campaigning for governor, she never said she would be against any tax increases. She did say she was against general increases in the sales tax. Eyman and others are distorting her language to make it appear as if she broke her word.

Lawmakers and members of the media don’t need a lecture from Mr. Eyman on the meaning of courage. This is coming from someone who pocketed hundreds of thousands of dollars in supporters’ donations for months while maintaining he was unpaid.

Was that a courageous decision, Mr. Eyman? Was that “having the personal strength and the intestinal fortitude to follow through on your promises”? Of course not.

Tim Eyman is the last person who should be preaching about moral values.

Washington State’s lawmakers and Governor Christine Gregoire, on the other hand, should be praised for their courageous leadership and a legislative session filled with good accomplishments.

Mr. Eyman’s attempts to vilify our state’s leaders should be ignored.

Eyman’s phony view of reality

Rethinking and ReframingStatements & Advisories

In a email to supporters yesterday (copied to the media), Tim Eyman again extended his electronic tin can, asking supporters to make a contribution to his “Help Us Help Ourselves” compensation fund.

He also didn’t waste an opportunity to make a number of feel-good statements about his activities, presenting a phony view of reality.

So, therefore, we ask you to think carefully and consider the following:

Mr. Eyman claims that he and his supporters take on huge challenges every year. But how challenging is it to get an initiative on the ballot when you have one multimillionaire donor (Michael Dumire) who is willing to provide over $300,000 to pay signature gatherers for collecting signatures? Getting on the ballot is no challenge if you have deep pockets. A last look at PDC reports shows that Mr. Dunmire provided a whopping 76.5% of the funding for Eyman’s “signature drive”.

Eyman initiatives do not solve problems. They create problems or make them worse. Almost all have been designed to wreak havoc on government revenue without regard to any of the consequences. They result in budget crunches and cripple valuable local public services.

Initiative 900 does not and will not “end a 40 year prohibition against independent performance audits of state government.” The state legislature already did that with the passage of EHB 1064 earlier this year (the bill was signed into law by Governor Christine Gregoire). Eyman had absolutely nothing to do with the bill or its passage, either. State Democrats had previously passed such legislation, and with Democrats assuming control of the state Senate in 2005, the legislation finally made it through both houses.

Eyman also crowed about his involvement in 1998’s Initiative 200, which barred government sponsored remedies for minorities that have previously been the target of grave injustices. Mr. Eyman’s logic of “treating everyone the same” falls flat on its face, since everyone has not been treated the same in the past, and even today, not everyone is being treated the same.

Then it was on to Initiative 695. Initiative 695 was tossed out in court after it passed because it was found to be unconstitutional. The reason the state motor vehicle excise tax was subsequently repealed was because the Legislature and the Governor were afraid of another effort to take away funding. That plan didn’t work out  too well, as Eyman came back with another initiative anyway

In the 1999-2001 biennium, the state MVET was to have been distributed in three main ways: 47% to state transportation, 29% to local transits, and 24% to local governments. This funding was lost after the Legislature repealed the state MVET.

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. The bottom line is that I-695 blew a huge hole into our state’s transportation funding that has never been fully repaired.

Initiative 747, which passed in 2001, hurt local governments and has led to budget shortfalls across Washington State. Some cities are considering disincorporation because they no longer have the revenues to continue offering their citizens public services. The state loss from I-747 for 2004 alone was projected to be $48,753,000. Local municipalities lost $148,415,000 in 2004 alone – revenues that would have otherwise paid for valuable public services.

Ron Sims’ candidacy for governor of Washington State did NOT fail because of Sims’ tax reform proposals. It failed because his opponent, Christine Gregoire, had more money, support from the state labor council, more endorsements, and statewide name recognition (she had already served two terms as Attorney General).

Eyman loves to take credit for things he had nothing to do with, make political predictions (for instance, that I-912 will be approved this November), and play the role of amateur political scientist.

Eyman also likes to claim that he’s “keeping the political establishment on the defensive” but this is coming from a guy whose last four initiatives (I-267, I-807, I-864, I-892) have all ended in failure.

But Eyman lives in an Orwellian world, so nothing that anybody else says ever seems to matter. It’s the “Ministry of Truth” all over again.

PDC fines Eyman and associates after completing investigation into complaint filed by Permanent Defense and allies

Eye on Money: DevelopmentsStatements & Advisories

The state Public Disclosure Commission, acting on a complaint filed August 26th, 2004, by Permanent Defense, TaxSanity.org, and Taxpayers for Washington’s Future, fined Tim Eyman and his associates three hundred dollars for again violating Washington’s public disclosure law at an enforcement hearing Tuesday morning.

The complaint accused Tim Eyman, his associates, and his three PACs of a broad array of campaign finance and public disclosure violations.

The PDC fined Eyman one hundred and fifty dollars each for two occasions on which PDC staff found that Eyman, his associates, and his PACs had violated the public disclosure law:

  • By failing to timely disclose an in-kind contribution received from Tim and Karen Eyman in the amount of $1,500 for a poll conducted in October of 2003.
  • By failing to timely disclose an in-kind contribution received from the Voters Want More Choices PAC in the amount of $2,109 for a mailing.

Permanent Defense Chair Andrew Villeneuve called the enforcement action significant. “Tim Eyman has a long history of violating the public disclosure law, and he somehow thinks that it doesn’t apply to him. The PDC is making clear once again that his careless disregard for the rules will not be tolerated.”

“Eyman also claims, and continues to claim, to his supporters that his committees are completely separate from each other, but the boundaries between them seem to be pretty transparent.”

He noted that Tim Eyman made the following comment last September in a letter to the PDC regarding the complaint: “Our campaign committee [Voters Want More Choices] pays for these mailings and the accounting and other costs associated with our compensation fund [Help Us Help Taxpayers].”

“It’s just been a continual pattern of infractions, both small and large, which continue to land Eyman in trouble,” concluded Villeneuve. “He wouldn’t be getting fined if he would just follow the rules like everybody else.”

PDC should penalize Eyman for violations

Eye on Money: DevelopmentsStatements & Advisories

Permanent Defense, TaxSanity.org, and Taxpayers For Washington’s Future today filed an official PDC complaint against Tim Eyman alleging that the initiative profiteer appears to have been spending Initiative 864 campaign funds for his personal compensation PAC, Help Us Help Taxpayers, among other charges.

The complaint also accuses Eyman and his associates of a broad range of public disclosure violations- including delinquent reporting, as well as conspiracy to commit wire fraud and mail fraud.

Andrew Villeneuve, Chair of Permanent Defense, said “When it comes to the public disclosure law, Eyman acts as if the rules somehow don’t apply to him.”

“In his mind, it’s okay to file late, to use funds from one committee to apparently pay for another’s expenses, and to lie about taking a salary.”

“But when opponents do something that Eyman thinks is running afoul of the law, he puts up a big racket and acts like a victim. He clearly has a double standard.”

He said he expects the PDC to take action on the sixteen page complaint, saying “Last March, when Eyman filed his forms late, the PDC made clear that future infringements would not be tolerated. Unless Eyman is penalized, he will continue to ignore the law and get away with it.”

Previously, in March of 2004, Permanent Defense joined TaxSanity.org and Taxpayers For Washington’s Future in filing a complaint to the PDC that accused Eyman of not filing the names and addresses of his contributors on time.

The PDC condemned the delay and dismissed the complaint but warned Eyman that future violations could result in enforcement action.

Once again, Eyman has been caught in violation of the public disclosure law. Money is disappearing from the Initiative 864 campaign war chest, mailings for Eyman’s compensation PAC are suspiciously not costing anything, and donations Eyman has said he’s received aren’t being reported on time, and even when reported late, have discrepancies.

“This entire operation, including all three committees, needs an audit,” said Chair Andrew Villeneuve. “It’s all in shambles. He keeps making mistakes and filing late. Then he has to file amended returns with new versions of his records. And it appears that Eyman is using funds from one committee to pay for another’s mailings, even though he insists they’re separate.”

The complainants believe Eyman is clearly culpable of breaking the law, and has been allowed to get away with too many violations for too long.

It’s time for the Public Disclosure Commission to condemn these violations and penalize Eyman for not following the rules like everyone else.

Permanent Defense, allies file PDC complaint against Tim Eyman

Eye on Money: DevelopmentsStatements & Advisories

PDC complaint alleges conspiracy to defraud contributors, demands audit

A formal complaint filed today with the Public Disclosure Commission (PDC) alleges that during the final weeks of its failed signature drive, Tim Eyman fraudulently spent over $26,000 of I-864 campaign funds on a fundraising letter for his personal compensation PAC, “Help Us Help Taxpayers” .

The complaint — filed jointly by TaxSanity.org, Taxpayers for Washington’s Future (TWF), and Permanent Defense — accuses Tim Eyman, his associates, and his three PACs of a broad array of campaign finance and public disclosure violations, including conspiracy to commit wire fraud and mail fraud. The 16 page complaint includes supporting documentation.

“Once again, Tim Eyman has been caught lying to contributors,” said David Goldstein of TaxSanity.org. “He promised to keep campaign contributions separate from his compensation fund… a promise he never intended to keep.” The complaint suggests that since its inception in June of 2003, Help Us Help Taxpayers’ operations have been entirely subsidized by “Voters Want More Choices” (VWMC), including over $10,000 of reported in-kind contributions.

Steve Zemke of TWF called the misreported June 2004 expenditure “doubly deceptive” because it occurred at a time Mr. Eyman was aggressively soliciting funds for what he claimed to be a close I-864 signature drive. Mr. Zemke, a veteran of many successful initiative campaigns, said Mr. Eyman deliberately misled contributors about where their money was going: “I-864 was dead in the water, and Tim knew it. Yet he continued to solicit contributions, while diverting money to his compensation fund.”

Andrew Villeneuve of Permanent Defense emphasized that the complaint includes a number of charges that together establish a pattern of abuse and deception. “These violations aren’t just isolated incidents. They’re part of a long-running history of infractions. The PDC should demand full compliance with the law and take immediate action to ensure that Eyman is following the rules like everyone else.”


Text of the complaint

August 26, 2004

Ms. Vickie Rippie
Executive Director
Public Disclosure Commission
711 Capitol Way No 206
Olympia, WA 98504

Dear Ms. Rippie,

The complainants named below hereby give notice of a formal complaint against Voters Want More Choices (VWMC), Just Treat Us The Same (JTUTS), Help Us Help Taxpayers (HUHT), and their officers, including Tim Eyman, Jack Fagan and Mike Fagan. The complainants request a full investigation of the allegations within, and expect enforcement actions commensurate with Mr. Eyman’s documented history of public disclosure violations and the Public Disclosure Commission’s (PDC) prior warnings that subsequent violations would not be tolerated.

The complainants also request that Mr. Goldstein’s email dated 8/11/04 be considered the initiation of this formal complaint, and that this email be considered an amendment to it.

This complaint includes five main charges: 1) failure to report VWMC expenditures on behalf of HUHT, 2) fraudulently soliciting contributions to I-864, 3) improper reporting of donations to HUHT, 4) failure to report expenditures on behalf of VWMC, and 5) failure of JTUTS to meet reporting deadlines.

1) Failure to report VWMC expenditures on behalf of HUHT

The complainants contend that VWMC made substantial expenditures in June of 2004 on behalf of HUHT, without proper reporting by either committee. VWMC’s Schedule A filed 7/12/04 reports two expenditures dated 6/18/04, to Data Resources, Inc., totaling $26,305.72 for postage and printing for I-864. It is the complainants’ contention that there was no such mailing on behalf of I-864.

The complainants, through their independent watch-dogging activities, had received all three previous bulk mailings from VWMC in 2004, within one to three weeks following the reported expenditure date. No such mailing was received following the 6/18/04 Data Resources, Inc. expenditure. However in early July, each of the complainants received a fundraising letter from HUHT — in the form and fashion of previous VWMC mailings — apparently sent to VWMC’s bulk mailing list. HUHT however, reported no corresponding expenditure or in-kind contribution; indeed, with cash reserves of only $11,522.34, HUHT clearly did not have the financial resources to fund such a large mailing during the time period in question.

It is the complainants’ contention that the July HUHT mailing was funded by the 6/18/04 VWMC expenditures, and that both of Mr. Eyman’s committees conspired to misreport the transactions, thus hiding a transfer of funds from VWMC to HUHT. Both committees are equally culpable in violating the public disclosure laws, and both committees should be subject to potential penalties. Furthermore, the HUHT mailing was in violation of statute by failing to include notice that it was paid for by VWMC.

The complainants also strongly suspect that a similar incident occurred in 2003, when VWMC reported printing and mailing expenditures for I-807 totaling $14,904.45 on 6/12/03 and 6/20/03 at a time when signature gathering efforts for the initiative had clearly ceased, but HUHT was just being started.

These efforts to conceal VWMC expenditures on behalf of HUHT would be consistent with the committees’ 2003 activities, during which VWMC misreported postage and mailing expenses in July, August, September and October, only to restate them as in-kind donations to HUHT in amended returns filed in December. HUHT has in fact, never reported fundraising expenditures – indeed, apart from disbursements to its officers, the committee reported less than $50 in expenditures its entire first year of existence, yet raised over $160,000 in contributions… an unbelievable return on investment.

Mr. Eyman and his associates have clearly made a concerted effort to hide the fact that most, if not all, of HUHT’s activities and operations are paid for with funds purportedly raised to support VWMC’s initiative campaigns. The full extent to which VWMC monies have been diverted to HUHT can only be determined after a thorough investigation of VWMC, HUHT and Data Resources, Inc.

2) Fraudulently soliciting contributions to initiative campaign I-864

Through June of 2004, Mr. Eyman repeatedly emailed supporters, soliciting contributions to the I-864 signature drive. As late as 6/25/04, Mr. Eyman cajoled supporters to “hit ‘reply’ to this email and pledge generously to this critical effort”. Indeed, his final fundraising email, sent one day before the 7/2/04 signature deadline included a payment form with the following standard disclaimer:

Voluntary donations to the 25% Property Tax Initiative will be used to qualify this important tax reduction initiative for the ballot. A different political action committee, ‘Help Us Help Taxpayers’, raises money for a compensation fund for Tim Eyman, Jack Fagan, & Mike Fagan for their effective political work on behalf of taxpayers. These two campaign committees are kept separate and donations and expenditures for each fund are publicly reported every month.

The complainants contend that VWMC ceased its paid signature gathering efforts on 6/2/04, the day Citizens Solutions withdrew the petitions from its subcontractors. Apart from overhead, the only June expenditure related to signature gathering was a 6/14/04 final payment of $10,574.40 to Citizen Solutions for signatures previously collected. As stated above, the complainants contend that the actual purpose of the 6/18/04 expenditures to Data Resources Inc. totaling $26,305.72 was printing and mailing the HUHT fundraising letter sent in early July.

Whatever the actual date that Mr. Eyman abandoned the I-864 signature drive, it is clear that by the latter half of June he was fraudulently soliciting contributions for an initiative campaign that was no longer active. Furthermore, his solicitations throughout 2004 included a promise that all contributions would “be used to qualify this important tax reduction initiative for the ballot”, when in fact the month’s largest expenditure by far was a $26,305.72 unreported in-kind donation to HUHT.

Indeed, VWMC has already reported over $10,000 of in-kind contributions to HUHT, effectively compensating Mr. Eyman and his associates with contributions raised to support initiatives.

HUHT is a personal compensation fund, and any expense on its behalf by VWMC constitutes personal compensation from I-864 campaign contributions. By hiding the true purpose of this expense, and continuing to solicit contributions under false pretenses, VWMC, HUHT and its officers conspired to commit mail fraud and wire fraud. The complainants thus urge the Commissioners to refer this serious legal breach to the appropriate prosecutorial authority.

3) Improper reporting of donations to HUHT

The complainants contend that HUHT improperly reported a $20,000 donation. On 7/23/04, in an email to over 3600 supporters, Mr. Eyman claimed that “Yesterday, one of our supporters donated $20,000 to our compensation fund Help Us Help Taxpayers.” However, on HUHT’s 8/10/04 disclosure filing, there was no mention of a $20,000 donation.

On 8/11/04, the complainants issued a press release with the allegation that Mr. Eyman had failed to report a corresponding donation, and forwarded a copy to the PDC suggesting further investigation. In response to PDC inquiries, HUHT filed an amended return on 8/12/04, reporting a $20,000 “pledge” on the date of 7/31/04.

The complainants contend that Mr. Eyman filed an amended return only in response to inquiries from the PDC, and that the reported date of the donation — now called a “pledge” — does not match the timeline of events. According to Mr. Eyman’s public statement, the pledge could not have been received later than 7/22/04, and yet the 8/12/04 amended Schedule B reports a pledge date of 7/31/04. There is also a discrepancy in that Mr. Eyman originally claimed this to be a “donation.”

It is not clear that Mr. Eyman’s 7/22/04 “donation” and 7/31/04 “pledge” are one and the same. Was there really a $20,000 “donation/pledge” on 7/22/04 as Mr. Eyman claimed in his email, or was the 7/31/04 “pledge” merely reported to cover up a false claim? Does the donor really intend to contribute the full amount, and on what date was it really pledged?

Failure to promptly report a $20,000 donation is not a trivial matter. Given Mr. Eyman’s history of false and misleading disclosure reports and unreported pledges – including the 12/2003 “gift” from the jail guard’s union (Case #04-438) – his amended 8/12/04 return should not receive any more credence from the PDC than his 7/23/04 email. The complainants urge the Commissioners to investigate this incident fully, and to levy penalties within the context of Mr. Eyman’s record of noncompliance.

4) Failure to report expenditures on behalf of VWMC

In emails, press releases, and fundraising letters, Mr. Eyman has repeatedly referenced an opinion survey conducted on 10/09/03 by Rasmussen Reports LLC. The survey was clearly commissioned on behalf of the 25% property tax cut initiative that later became I-864, and should have been reported as either a campaign expenditure or an in-kind contribution.

The complainants can find no VWMC expenditure to Rasmussen Reports LLC, or any other firm, for an opinion survey during the fall of 2003. If the survey was paid for by a third party, or performed at no charge by Rasmussen Reports LLC, then it should have been reported as an in-kind contribution, with the contributor clearly identified.

While I-864 had not yet been filed at the time of the survey, a nearly identical initiative to the legislature, I-309, was filed by Mr. Eyman on 9/8/03, and any expenditures on its behalf would have required full disclosure, presumably by VWMC. It should be noted that throughout the summer and fall of 2003 VWMC made numerous other expenditures on behalf of a “property tax cut initiative”, and this was clearly the primary focus of the committee since the initiative was first announced on 6/8/03.

5) Repeated failure to meet PDC reporting deadlines

The complainants contend that Mr. Eyman’s JTUTS PAC filed monthly C4, Schedule A, Schedule B and Schedule L forms on 8/24/04, thirteen days past the 8/11/04 deadline for ballot committees. This failure to meet reporting deadlines is part of a flagrant pattern of violating PDC requirements — as acknowledged by the PDC in response to our previous complaint dated March 17 (Case #04-443 and #04-444) – and which has continued to this date.

In dismissing the previous complaint the Commission cautioned Mr. Eyman that further late reporting “will not be tolerated, and may result in enforcement action.” As independent watchdogs, the complainants rely on full and prompt public disclosure to help safeguard the integrity of our electoral system; while Mr. Eyman may consider his delays and obfuscations trivial, they interfere with the public’s right to know, as demanded by voters in overwhelmingly passing the Public Disclosure Act. The complainants therefore urge the Commission to back up its previous warning with action.

Summary

In summary, the complainants contend that Mr. Eyman fraudulently used VWMC campaign funds to pay for printing and mailing on behalf of HUHT, that both committees and their officers conspired to hide the transaction, and that HUHT failed to included proper notice on fundraising materials that said materials were paid for by VWMC. The complainants further contend that Mr. Eyman fraudulently solicited funds for VWMC, that HUHT failed to timely and properly report a $20,000 donation, that VWMC failed to report a campaign expenditure for an opinion survey, and that JTUTS has continued Mr. Eyman’s pattern of flagrantly ignoring filing deadlines.

In light of the seriousness of these allegations, the weight of Mr. Eyman’s history of public disclosure violations, and the potential for charges of conspiracy to commit wire fraud and mail fraud, the complainants request a full investigation of all these matters, and any others that might turn up in the course of further investigation. Mr. Eyman’s persistent efforts to obscure the source of contributions and the true nature of expenditures renders the public disclosure process useless, and thus warrants a thorough audit of VWMC, HUHT, JTUTS, their officers’ personal financial records, and the records of major vendors, including Data Resources, Inc., Citizen Solutions, and Hawthorne & Co., for the years 2003 and 2004.

The complainants look forward to cooperating with the Commission, and will provide supporting documentation upon request. The complainants further request that they be kept informed of the progress of the investigation, and be given the opportunity to comment on or refute any supposedly exculpatory evidence provided by Mr. Eyman and his associates.

A copy of this formal complaint has been forwarded to the complainants’ attorneys, the Attorney General, and to the media.

Thank you for your time and consideration.

Sincerely,

The Complainants:

David Goldstein, TaxSanity.org
Steve Zemke, Taxpayers for Washington’s Future
Andrew Villeneuve, Permanent Defense

CC: Rodney L. Brown, Jr. (Brown Reavis & Mann PLC)
CC: Attorney General Christine Gregoire
CC: the media

Statement on Initiative 848

Ballot WatchdoggingStatements & Advisories

Tim Eyman’s frustration with his poorly written initiatives and terrible public policy has led him to write a shortsighted, egocentric initiative that is clearly motivated only by one thing: his anger at a public agency that has worked very hard to turn itself around and is now moving ahead with the support of the President of the United States, coincidentally from Eyman’s own party.

Tim Eyman will never understand that initiatives are not a citizen’s tool to strip away government. The initiative process exists to help citizens make government work better. This latest scheme is a Valentine’s Day blitzkrieg on Sound Transit… and it needs to be stopped.

Refuse to support the latest lie from Tim, which would ask voters statewide to vote on a locally funded, locally enacted project.

Filing initiatives to halt public projects because you don’t like them (even if you’re not paying for them) is blatantly ridiculous and unconstitutional.

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