FOIA filed to expose potential audit mischief

Election Postmortem

One of the major reasons we opposed Initiative 900 two years ago was because we feared the potential for abuse of the performance audit as a tool to ensure good government.

Today, suspicious of the gleeful rhetoric used by opponents of transportation agencies such of Sound Transit expressing their happiness that audits will be released right before an election with a major package on the ballot (Roads & Transit) David Goldstein filed a Freedom of Information Act request to find out if auditors have been communicating with those opponents (Tim Eyman, Ted Van Dyk, etc.) behind the scenes, leaking information:

Performance audits are not comparable to financial audits in either scope or purpose. You don’t just bring in a third party to examine the books in search of waste, fraud or abuse, but rather, you observe and analyze the performance of an agency and its procedures for the purpose of recommending changes that could lead to greater efficiencies. While in a worst case scenario a performance audit could conclude that an agency does not fulfill its mission at all, it is mostly meant as a productivity tool, and as such requires the full cooperation of the management and staff being audited if it is to be effective. If instead, performance audits are used as a means to politically punish and embarrass an agency — including, say, influencing elections — then future audits on other agencies will never gain the inside trust and cooperation necessary to conduct them.

Yes, voters deserve to know how well Sound Transit and WSDOT are spending our money before we vote them more of it, but if these audits are perceived to be politically motivated hatchet jobs, their reports won’t be worth the paper they’re written on. And if officials within the auditor’s office or the outside contractors have been improperly communicating with opponents of the Roads & Transit measure, soliciting their input and leaking results, then I can’t see how these so-called “performance audits” can be understood to be genuine performance audits at all, let alone impartial and unbiased.

The FOIA results should be telling – we’ll be waiting to see what gets disclosed.

Washington Research Council publishes report on I-960

Off TopicThreat Analysis

The Washington Research Council, a business-supported think tank, has a new report (PDF) that echoes our criticisms of Tim Eyman’s latest plan to handicap government:

Initiative 960 is intended to make it more difficult for our elected representatives to raise taxes without referring the matter to a direct vote of the people. As such, it would take the state a step further away from representative democracy.

The value of delegating public decision making to a small number of representatives was well expressed by James Madison:

The effect of [the delegation of the government to a small number of citizens elected by the rest is] to refine and enlarge the public views by passing them through the medium of a chosen body of citizens, whose wisdom may best discern the true interest of their country and whose patriotism and love for justice will be least likely to sacrifice it to temporary or partial considerations. Under such a regulation, it may well happen that the public voice, pronounced by the representatives of the people, will be more consonant to the public good than if pronounced by the people themselves, convened for the purpose. (Federalist 10)

The Research Council likes representative democracy. While both the initiative and the referendum provide useful checks on the legislature, public votes should be the exception not the rule.

We find the advisory ballots to be particularly problematic, as they are designed more to intimidate legislators rather than to engage the public. If the initiative passes, the two-thirds majority requirement will almost certainly be challenged for violating the state Constitution.

Learn more about I-960’s harmful ramifications for our state at Reasons to Oppose.

Initiative 900 rears its ugly head

Election Postmortem

Via Strange Bedfellows comes word of a new performance audit released by the State Auditor’s office and conducted by Ernst & Young, who declared in their report that “Washington State Ferries provides a level of service above what traffic volumes demand.” The audit says this unnecessary service will cost the state $100 million over the next 10 years.

The state Department of Transportation has responded to the audit, noting:

“The Department agrees that some sailings have space available during off peak hours…However, several factors will affect how the Department addresses this recommendation.

“As a mass transit provider, there must be a balance in accommodating peak demand periods with providing some level of connection and usefulness to customers in off-peak hours. In the manner that highways are not closed during hours of low utilization, canceling off-peak ferry sailing mush consider factors in addition to utilization.”

[…]

“While this finding is worthy of further consideration, it is premature to assume cost savings of almost $10 million (per year) from service cuts.”

While performance audits have the potential to be useful and helpful in identifying modest cost savings, what we don’t need is auditors and accountants running state government agencies. The foremost goal of the state ferry system should be to provide quality service to the people of Washington State, not transport humans as cheaply as possible.

We opposed I-900 in 2005 because it gave too much power to the auditor’s office and went beyond what was needed and appropriate.

At some point in the future, I-900 will have to be revised, repealed, or amended to curtail abuse or prevent the possibility of abuse, because the initiative’s language practically invites it.

Checks and balances were apparently not a concept that Tim Eyman learned when he was in high school.

Initiative 960 would cost taxpayers millions

Threat Analysis

The state Office of Financial Management has released a statement analyzing the potential financial impacts of I-960. It’s not pretty:

Initiative 960 would result in added costs to prepare ten-year cost projections for proposed state tax and fee increases, to notify legislators and the public about proposed revenue legislation, and to conduct advisory votes on tax increases approved by the Legislature. Costs are estimated to be up to $1.8 million a year, including $1.2 million for local election expenses. Local government pays election costs in even-numbered years. The state pays a pro-rated share in odd-numbered years. Actual election costs for any particular year will depend on the number of tax measures referred to an advisory vote.

Most of the money is for election related expenses (remember, elections cost money) to handle the nonbinding, useless advisory votes that I-960 would implement, if it takes effect.

An advisory vote, a new form of referendum, would be automatically triggered when a tax increase is passed into law by a two thirds supermajority (the high bar stipulated by I-960). Both the advisory vote gimmick, which is meant to give voters the false impression that their taxes are skyrocketing, and the two thirds limits run afoul of the state Constitution.

The state Supreme Court will hear oral argument in the legal challenge to strike I-960 from the statewide ballot next week.

Washington Budget & Policy Center releases analysis of Initiative 960

Endorsements

An Olympia based think tank focusing on fiscal policy has published a new report confirming our arguments and conclusions about I-960:

A new analysis of Initiative 960 completed by the Budget & Policy Center finds that the initiative will not further widely shared goals of improving government accountability and transparency. Rather, if approved by the voters on the November ballot, I-960 will more likely undermine the ability of the state to formulate and implement rational and thoughtful responses to public priorities and will hinder responsible, efficient, and accountable policymaking.

Acting on widely shared values — for instance, the recent bipartisan decision to invest in early learning — could become significantly more difficult.

The report is available in PDF format.

Referendum 67 qualifies for ballot

Threat Analysis

You can thank insurance industry money for forcing this unnecessary public vote:

Secretary of State Sam Reed announced today that Referendum 67 has sufficient valid signatures to qualify for a spot on the statewide ballot in November.

According to elections officials, a check of petition signatures submitted in support of the proposal has shown that the measure meets constitutional requirements for a minimum of 112,440 valid voter signatures. The measure will appear on the November 6 General Election ballot.

Referendum 67 would make it unlawful for insurers to unreasonably deny certain coverage claims, and permit treble damages plus attorney fees for that and other violations. Some health insurance carriers would be exempt. The official ballot summary on Referendum 67 reads, “Engrossed Substitute Senate Bill 5726 would make it unlawful for insurers to unreasonably deny a claim for coverage or payment of benefits to any “first party claimant”, as defined in the bill, or to violate insurance fair practices regulation.

With court approval, successful claimants would be entitled to actual damages plus costs and reasonable attorney fees, and in some cases up to triple damages. The bill would not apply to health plans offered by health carriers.”

Sponsors of Referendum 67 submitted a total of 156,446 petition signatures to the Secretary of State. Election officials conducted a random sample of 4,783 signatures, of which 4,132 were valid signatures – 651 were determined invalid. Signatures are invalid if the signer is not a registered voter or if he or she signed more than once.

The petition was checked using the “random sample” process authorized by state law. Under the process, a statistically valid percentage of the signatures are selected at random and checked against voter registration records. A mathematical formula is then applied to the results to obtain a projected rate of invalidation.

Election officials examined 4,783 (a 3 percent sample) on Referendum 67. From that inspection, it was determined that the measure had an invalidation rate of 13.6 percent.

Remember to vote YES on Referendum 67 this November. Voting YES keeps the consumer protection law in place!

I-960 lawsuit will continue for now

In the Courts

Our parent organization’s blog reports that Futurewise and SEIU 775 – the plaintiffs in the lawsuit to block Tim Eyman’s initiative from being considered by voters – have filed an emergency motion for accelerated review with the state Supreme Court because the Superior Court refused to actually consider the issues at hand.

That’s good news, but the Court still has to take the case.

MORE (JULY 25th): A number of articles have appeared recently in Washington media outlets conveying the idea that Tim Eyman’s I-960 has overcome all obstacles and is now guaranteed to go before the voters of Washington State. Despite I-960’s passage of a random sample check conducted by the Secretary of State’s office, the initiative is still not cleared for placement on the ballot yet because Futurewise and SEIU 775 have appealed Judge Catherine Shaffer’s decision to allow I-960 to proceed. The lawsuit thus continues while the state Supreme Court decides whether to hear the case.

“If the Supreme Court accepts the case, it is our hope that it will set a precedent that checks abuse of the initiative process and upholds the rule of law,” said NPI Executive Director and Permanent Defense Chair Andrew Villeneuve.

“The initiative process has limitations for good reason. It cannot, for instance, be used to amend the U.S. Constitution. An initiative that attempted to covertly amend the U.S. Constitution would be struck down by the Courts and not allowed to go before voters. Likewise, I-960, which contains language that is in conflict with our state’s Constitution, ought to be nullified.”

I-960 passes random sample check

Ballot Watchdogging

The Secretary of State’s office just put out a release saying that a random sample check has determined that Initiative 960 has sufficient valid signatures to qualify for the November ballot, as expected:

According to elections officials, a check of petition signatures submitted in support of the proposal has shown that the measure meets constitutional requirements for a minimum of 224,880 valid voter signatures. The measure will appear on the November 6th General Election ballot.

Initiative 960 would require two-thirds legislative approval or voter approval for tax increases, legislative approval of fee increases, certain published information on tax-increasing bills, and advisory votes on taxes enacted without voter approval. The official ballot summary on Initiative 960 reads, “This measure would require either a two-thirds vote in each house of the legislature or voter approval for all tax increases. New or increased fees would require prior legislative approval. An advisory vote would be required on any new or increased taxes enacted by the legislature without voter approval. The office of financial management would be required to publish cost information and information regarding legislators’ voting records on bills imposing or increasing taxes or fees.”

Sponsors of Initiative 960 submitted a total of 314,504 petition signatures to the Secretary of State. Election officials conducted a random sample of 9,607 signatures, of which 8,410 were valid signatures – 1,197 were determined invalid. Signatures are invalid if the signer is not a registered voter or if he or she signed more than once.

The petition was checked using the “random sample” process authorized by state law. Under the process, a statistically valid percentage of the signatures are selected at random and checked against voter registration records. A mathematical formula is then applied to the results to obtain a projected rate of invalidation.

Election officials examined 9,607 (a 3 percent sample) on Initiative 960. From that inspection, it was determined that the measure had an invalidation rate of 17.1 percent.

There is a possibility that I-960 will still not go before voters in November, if the state Supreme Court accepts for review the case filed by Futurewise and SEIU 775 and decides for the plaintiffs. But the likelihood is that I-960 will be on the ballot, and we will be doing everything we can to ensure that it fails.

Setback in I-960 lawsuit

Ballot WatchdoggingThreat Analysis

Via our parent organization’s blog, some bad news:

Judge refuses to block I-960 from ballot
Before actually granting the state’s motion, the judge explained the various reasons why she did not want to address the issues raised by the plaintiffs. At one point she even paused and clearly stated, “This is very limited review.”

She did not address the constitutionality of the measure, noting that would, however, be appropriate for post-election review.

And while acknowledging that the scope issue was pertinent to the case, she basically sidestepped it. For example, she refused to look at the supermajority issue on the basis that a similiar requirement was approved years ago as part of Initiative 601 (and is now on the books, although the Legislature has not considered the law to be binding, and no court has considered its validity or constitutionality.)

So we didn’t get the definitive ruling for or against the suit that I thought we would get from the Court. Restraint evidently weighed heavily on Judge Shaffer’s consideration of the plaintiffs’ request.

Futurewise and SEIU 775 could still appeal the decision to the state Supreme Court, which might come out of summer recess to hear two other unrelated cases that also pertain to the 2007 general election this November.

Eyman should think twice before he gloats…this may not be over yet.

Statement on submission of signatures for I-960

Off Topic

Here’s the press release we sent out this morning following the news:

Permanent Defense today responded to Tim Eyman’s submission of signatures for I-960 to the Secretary of State’s office by renewing its commitment to fight the measure if it qualifies for the ballot.

“Anyone with half a million dollars can buy their way onto the ballot, no matter your issue or political ideology,” said Permanent Defense chair Andrew Villeneuve. “We anticipated that Mr. Eyman would turn in a significant number of signatures for this un-American, unconstitutional, unfair proposal…but it remains to be seen if it’s actually true.”

“We’ll be waiting to see if the Secretary of State’s office actually has the number of signatures that Eyman claims he turned in. We already know we can’t trust his boasting.”

Villeneuve noted that I-960 may never qualify for the ballot, even if there are enough signatures. A lawsuit filed in King County Superior Court last May by Futurewise and SEIU 775 is due for a hearing next week (July 13th). The suit seeks to block I-960 from the ballot because it is outside the scope of the initiative process – it attempts to do what our state’s initiative process was not designed for and expressly prohibits (amending the state Constitution by initiative).

“We will work diligently with a broad and diverse coalition of other organizations to defeat this measure in November and protect our cherished tradition of majority rule,” Villeneuve added.

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