By RACHEL LA CORTE
Associated Press Writer
OLYMPIA — A ballot measure asking voters to temporarily raise the state sales tax to help offset budget cuts to health care programs passed a House committee today and now awaits a vote on the House floor.
The bill was approved on an 8-7 vote, with some Democrats voting against it.
If approved by the full Legislature and voters this November, the bill would raise the state sales tax by three-tenths of a percentage point, starting next year.
The tax hike would last for three years, raising about $1.1 billion for health care programs that benefit the poor and disabled. Poorer people could apply for a rebate.
Supporters say the money is needed to offset the deep budget cuts lawmakers must make to fill a $9 billion shortfall.
But opponents, particularly Republicans, say now is not the time to ask cash-strapped voters for more money.
The Legislature plans to chop about $4 billion from projected state spending through mid-2011 as it scrambles to deal with the most significant budget deficit in about 25 years.
Health care advocates see a temporary sales tax increase as a way to buy back some programs that would otherwise be cut. If approved by lawmakers, the measure would head directly to voters on the November ballot, bypassing any action from Democratic Gov. Chris Gregoire.
A coalition of health care interest groups, including hospitals, nurses, clinics and health-service labor unions, has been trying to line up support for a sales tax measure throughout the 2009 legislative session, which is just six days from its scheduled adjournment.
A leading member of the sales-tax coalition, the Washington State Hospital Association, is lobbying to get the sales tax plan on the ballot, spokeswoman Cassie Sauer said today. But hospitals won’t decide until this summer whether they’ll pay $1 million or more to bankroll the campaign.
“Since we haven’t raised the money from our members, we have to have some time to talk about it,” Sauer said.
An opposition campaign already has cropped up, supported by business interests.
The new political committee, Advance Washington, is trying to stop the sales tax measure from getting on the ballot. It has bought radio ads and launched a Web site, www.notimefortaxes.com .
If the sales tax measure passes the Legislature and is approved by voters, it could yield hundreds of millions in state spending that partially compensates hospitals, clinics and others for the unpaid cost of caring for poor people.
For example, the plan would replace some of the $250 million in cuts slated for the state Basic Health Plan, which gives poorer people state-subsidized health insurance.
The plan also includes a tax rebate for poorer people, a feature that Democrats see as key to preventing a tax hike from disproportionately affecting those with low incomes.
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AP Writer Curt Woodward contributed to this report.
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The sales tax referendum is House Bill 2377.
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On the Net:
Legislature: http://www.leg.wa.gov
