CARLSBORG — Finding support to kill more corporate tax exemptions that come at state taxpayers’ expense will be a tough and nearly impossible challenge for the 2011 legislative session, two Sequim lawmakers said during a town hall meeting Friday night.
Addressing more than 100 attending the legislative town hall meeting at Sequim Prairie Grange’s Macleay Hall, Democratic Reps. Kevin Van De Wege and Steve Tharinger said such exemptions come at a heavy price to taxpayers — some $15 billion a year and more than the $14 million the state sees in revenues.
Lobbying and the need for a two-thirds majority vote in the state Legislature to kill exemptions are what make them so difficult to eliminate, the lawmakers said.
The two Democrats from Sequim — along with fellow Democratic Sen. Jim Hargrove of Hoquiam — represent the 24th District, which covers Jefferson and Clallam counties and part of Grays Harbor County.
Van De Wege also hosted a town hall meeting in Port Townsend earlier in the day.
Revised forecast
Van De Wege, Tharinger and Hargrove expect to receive a revised revenue forecast Thursday.
Tharinger said it was likely to widen the budget deficit gap by $500 million to $1 billion, bringing the state deficit to between $5.5 billion and $6 billion.
At that time, lawmakers are expected to make adjustments to state obligations and revenues.
Van De Wege said he introduced HB 2006, encouraging proper pharmaceutical disposal and proposing getting rid of pharmaceutical tax preference.
But even Van De Wege — the House majority whip and a member of the Agriculture and Natural Resources, General Government Appropriations and Oversight, Health Care and Wellness, and Rules committees — is skeptical that the pharmaceutical legislation will pass because of heavy corporate lobbying against it, he said.
Van De Wege made it clear he believes the highly lucrative pharmaceutical industry could afford to pass the savings on to taxpayers without a tax exemption.
Members of the audience encouraged legislation to call for a voter initiative on tax exemptions.
Both lawmakers said they doubted any such union-busting legislation, such as the controversial proposal that passed the Wisconsin Legislature, will go to Democratic Gov. Chris Gregoire’s desk for signing.
Since the recession began more than two years ago, the state has eliminated more than 8,000 state jobs, Tharinger said, some of the jobs lost to attrition.
“When we move forward with the budget discussion, there probably are going to be a lot more people who are going to lose their jobs,” said Tharinger, 61, who kept his position as Clallam County commissioner when he was elected to his first two-year House term in November.
He is the prime sponsor of HB 1294, which would streamline and consolidate the Washington Conservation Corps program under the state Department of Ecology to focus on projects to restore and preserve fish and wildlife in Puget Sound.
The legislation creates more job opportunities, including those for veterans of Middle East wars, Tharinger said.
Under questioning from the audience, Van De Wege said the state’s Basic Health Plan that ensures health care for the needy should survive.
Basic Health Plan
“We are going to be able to save it, but it’s going to be tough, and we are not going to know until the end of the legislative session,” said Van De Wege, 36, a Clallam County Fire District 3 firefighter/paramedic serving his third two-year term.
Basic Health would likely be sacrificed somewhat to prevent cuts in education, the lawmakers said.
Tharinger said that after he and Van De Wege met last week with administrators for both Olympic Medical Center and Jefferson Healthcare hospitals, they said they were told that both hospitals stand to be affected to the tune of $1.5 million each because of the state plan.
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Sequim-Dungeness Valley Editor Jeff Chew can be reached at 360-681-2391 or at jeff.chew@peninsuladailynews.com.
