Tough year back home – Governor and legislature respond

The poor economy continues to hamper cities ability to provide needed services. Almost all cities have made significant budget cuts and many have drastically reduced key programs including public safety. And the damage is expected to continue throughout 2010 and beyond. As we begin May many cities have already reduced their current budget and expect more reductions in 2011. City officials have effectively communicated the problems and the Governor and Legislature have responded. Although there is much more to do, AWC is pleased with some of the advancements made in 2010.

Thanks to all of you who helped us advance the agenda securing new revenue tools, providing cities with additional fiscal and operating flexibility, obtaining new revenues to help meet stormwater obligations, and defeat bills imposing new costs.

Energy & telecommunications

Telecommunications has been quiet at the state level, mainly due to a shift in action to the federal level and a focus on federal stimulus dollars. Not so in the energy field, however. The discussion seems to coalesce around renewable energy production and climate change. In spite of a downturn in the economy, we expect a legislative discussion of climate change and alternative energy production to continue for the next few years.

Environment & water

Cities across the state deal with a variety of unfunded environmental mandates, such as requirements to upgrade water or wastewater systems and managing stormwater. Most can be linked back to federal requirements under the Clean Water Act. The requirements can be very costly and frequently require cities to raise revenue by increasing utility rates. Often in smaller communities, there are simply not enough ratepayers to absorb the increases, while in larger ones, there is only so much capacity for raising revenue among a variety of competing local needs.

One of AWC’s priorities for 2010 was to raise awareness of the needs of our 100 largest and most densely developed cities that are required by the federal Clean Water Act and state regulations to address stormwater. These cities now raise over $250 million per year in stormwater utility fees, but still don’t have enough to meet current and future needs. We partnered with the environmental community and sought a dedicated fund to raise approximately $100 million year to pass through to these cities and the 15 counties that are also subject to the new requirements. While unsuccessful in getting this fund, we did help convince legislators and even opponents, that there is a real need. In the end, $50 million was appropriated in the capital budget to help get us going. It is significant because it helps to set the stage for continuing conversations about funding to meet these and other mandates in the future.

Another environmental mandate facing cities is the requirement to review and update local Shoreline Master Programs over the next several years. Grant funds were and continue to be available to help complete this and legislation (EHB 1653) was passed this session that helps clarify how to conduct these updates in coordination with local land use plans and regulations.

General local government

There continues to be fervent interest by some groups and legislators in open government issues. Bills were introduced that would have created an office of open government, would have added some additional exemptions to the public records act, and would have amended existing statutes to do various things. AWC and other local governments advanced two bills that were intended to cut down on the cost of public records management. One bill passed, SSB 6367, that allows public agencies to refer requesters to their website, and a second bill did not pass, 2SHB 2583/SB 6368, that would have created a voluntary conference provision prior to filing with a court. Cities and other local governments will continue to seek changes to open government statutes that will provide efficiency, lower costs, or reduce conflict.

A surprising number of bills were introduced that affected elections, ballots and campaigns. One bill in particular imposes city and county campaign contribution limits, stepping in line with the existing limits on other statewide and local elections. Most bills died, but since the close governor race in 2004 and the recent slate of initiatives, there has been ongoing scrutiny of elections and related laws.

Infrastructure, transportation, & economic development

One of AWC’s top priorities for the 2010 Legislative Session was seeking a tool to preserve and maintain our street system. Throughout the previous summer and fall, AWC staff and individual cities worked on perfecting a "Street Maintenance Utility" proposal and meeting with members of the House Transportation Committee to present our need for a permanent street maintenance funding source. Rep. Marko Liias (D-Mukilteo) sponsored HB 2618, which would have given cities the authority to create a local street maintenance utility to fund basic street maintenance and preservation. Under similar legislation, nineteen cities in Oregon have street maintenance utilities in place. Although our street preservation needs were widely acknowledged, business opposition to the proposal was aggressive, and the desire by legislative leadership to limit the number of "tax" votes severely diminished our ability to advance this bill. It died in the House Transportation Committee.

On a more positive note cities will now have enhanced flexibility with local option Transportation Benefit Districts (TBDs). Rep. Dave Upthegrove (D-Des Moines) sponsored 2SHB 1591, which clarifies in state law that projects identified in a local transportation plan are explicitly eligible for TBD funding. The bill also clarifies the use of impact fees and enables the voter approved sales tax option to be extended for bonding purposes.

Land use & housing

Legislators were open to consideration of ideas about scaling back city mandates in these tough economic times. Following AWC discussions with the Governor and her staff, she decided to eliminate state grant funds that were available to help support mandatory reviews and updates of local Growth Management Act (GMA) plans and regulations. Acknowledging the lack of funding support from the state, the Governor also initiated legislation to delay for three years the GMA update requirements for all cities. No city or county will have to complete these reviews and updates, which can be expensive, until at least the end of 2014. The intention is to restore state grant funds to be available no later than 2012. SSB 6611 passed the Legislature, and the Governor gladly signed it.

This year there were fewer "good idea" land use bills, most of which are usually deemed "not so good" by cities and AWC. A few were introduced and ultimately failed, even after AWC worked to make them acceptable. Examples of these include: SHB 2408 which would have mandated public notice requirements for rezones and ESSB 6603 which attempted to define unacceptable land uses near general aviation airports. A bill opposed throughout the session that passed the House, but stalled out in the Senate was ESHB 3067. It would have mandated how and when impact fees on new development were to be collected, taking away local discretion.

Law & justice

A great deal of the effort during the past session in the area of law and justice was defensive as we worked to block legislation that would have resulted in additional costs (expansion of wrongful death claims) or loss of local control (election of judges). Fortunately, we were successful in blocking truly harmful legislation and moderating other legislation, especially in the area of safe housing, so that in the end it was either neutral or helpful to our cities. Unfortunately, there were also some good pieces of legislation in the area of gang enforcement tools that did not advance.

We worked very hard to oppose 2ESSB 6508 which would have expanded the number of wrongful death claims. We were part of a coalition, but even with a strong partnership the bill did not die until the very last hours of the regular session. We also worked to oppose SSB 6686 requiring the election of all municipal court judges. Proponents of the legislation argued that electing judges is the only way to insure an independent judiciary at the local level. We maintain that it is an unnecessary and potentially expensive move that will not result in better, more qualified judges. The bill passed the Senate, but did not advance in the House. Thanks to all of the cities that weighed in on this issue. Your voices were critical in stopping the bill. We fully expect both of these issues to be reintroduced in 2011.

There were three pieces of legislation addressing safe housing. In all three cases we were able to modify the legislation so that they were workable for cities. ESHB 1956 was related to tent cities. Initially the bill was overly broad and vague and would have likely lead to more litigation. We were able to help draft alternative language that addressed the concerns of the faith community without limiting our authority and we were able to get additional liability immunity language that is beneficial to cities. SSB 5742 related to crime free rental housing was originally very problematic for cities to implement, but were able to modify the bill so that it is limited in its scope and is in-line with cities’ existing programs.

Unfortunately, we were less successful in passing legislation to provide additional gang enforcement tools. Four pieces of legislation were introduced by Yakima Valley legislators that would have provided new tools in the area of nuisance abatement and property seizure related to gang activity and sentencing enhancements. The bills were not successful for a number of reasons including concerns about costs and profiling. In the end only one of the bills advanced through the House and to the Senate floor, ESHB 2414, but ran out of time at the end of the regular session. We plan to work with cities and legislators to revisit these issues in 2011.

Municipal finance

AWC has been pursuing a "local control and flexibility" legislative agenda for a number of years with an emphasis on fiscal flexibility. The general poor fiscal health of cities and associated weak budgets strengthened our arguments resulting in the Governor introducing legislation to provide local governments more flexibility including fiscal flexibility. While her fiscal proposal was not the final adopted bill the fact she introduced similar legislation was significant in our ability to secure the passage of ESHB 3179. This bill not only provided additional authority with existing revenues it also provided cities a new voter approved sales tax authority and addressed a court decision negatively impacting cities that impose a brokered natural gas use tax. Please see the specific write-up on this bill below.

Cities and counties poor fiscal health also resulted in the Governor initially introducing and the Legislature adopting a state supplemental budget that did essentially no damage to key local government programs. State policy makers recognized our poor fiscal health and knew that state cuts to health and human service programs would indirectly harm local governments as citizens seek additional help from their city.

A good start but we have much more work to do. Local budgets and the state budget will require additional cuts next year and biennium. State policy makers will be forced to carefully review existing allocations to local governments. We will ask these same policy makers to continue to review state requirements particularly on the expenditure side.

Personnel & labor relations

Not a real significant year in the personnel and labor relations arena this year with the exception of some new death and disability benefits provided to police officers and fire fighters via SHB 1679 and EHB 2519. These bills were introduced as a result of the tragedies this past year that resulted in the death of a number of law enforcement officials including four police officers in Lakewood. A very tough year for law enforcement officials in Washington resulting in quick action by the Governor and Legislature.

We expect much more activity next year with personnel issues as the Legislature addresses the significant deficit in the state pension systems and local governments seek help with growing personnel costs.

[ return to top ] [ next article ]