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The Washington Schools Energy Efficiency Projects Bill, also known as Referendum 52, was on the November 2, 2010 ballot in Washington as a legislatively referred state statute, where it was defeated. The measure would have called for a $500 million bond that lawmakers estimated would create 40,000 new jobs in public school and government building renovations; similar to a 2009 proposal that stalled in the legislature. In contrast to a 2009 proposed bill, which lawmakers worried would harm the state's bond rating because of the large amount ($2 billion), the proposed bill was smaller in size and would not add liability to the general fund, according to legislators.[1][2] According to the proposed legislation, bond proceeds would have been spent on replacing roofs, installing insulation, cleaning mold-infested buildings and making energy-saving improvements. These improvements would have taken place on school campuses and state offices.[3]
| Washington Referendum 52 (2010) | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| 1,325,253 | 53.77% | |||
| Yes | 1,139,527 | 46.23% | ||
Election results via: Washington Secretary of State (dead link)
The ballot title read:[4]
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The purpose of R-52 was to ask voters to issue bonds that would finance energy efficiency projects for the state's K-12 and higher education systems. A total of $505 million in bonds would be issued by the state if the voters approved R-52[6].
Money for the projects would have been raised by selling bonds. The revenue from the bond sales would have been deposited into the state's treasury[6].
School districts that pursued funds under R-52, would have been required to apply with the state to obtain funding. All applications would have been approved on a competitive basis using criteria set under R-52[6]. At least five percent of the grants would have been awarded to school districts with less than 1,000 students if R-52 was approved[6].
However, the measure was defeated by voters.
R-52 conflicted with I-1107 because the initiative reduced the state's ability to pay off general obligation bonds through sales tax revenues. I-1107 called for the end of sales taxes on candy, bottled water, processed food, and carbonated beverages. R-52 called for a temporary expansion of the state's sales tax on bottled water until 2013[7]. The approval of I-1107 ended the sales taxes on candy, processed food, and carbonated beverages[7]. If both R-52 and I-1107 had been approved, the state may have found difficulties in paying for R-52 when four sources of sales tax revenue were abolished by I-1107.
The measure was proposed by Rep. Hans Dunshee of Snohomish County. "We’ve got to do something besides just balance the budget. We’ve got to do something about the jobs and the economy," said Rep. Hans Dunshee.[1] In March 2010, shortly after the state's unemployment figures were released, Dunshee argued that the state needed to create jobs because "Over 27 percent of the construction industry is sitting on its hands."[8]
Dunshee argued that the bill would have: created about 38,000 jobs in a six-year period; permanently reduced energy bills in schools; and increased sales tax revenues starting in 2011.[3]
Sponsors included Representatives Hans Dunshee, Brendan Williams, Scott White, Larry Seaquist, Jeannie Darneille, Deborah Eddy, Mary Lou Dickerson, Mike Sells, Christine Rolfes, Maralyn Chase, Tami Green, Sherry Appleton, Pat Sullivan, Geoff Simpson, Sharon Nelson, Zack Hudgins, Jim Jacks, Sam Hunt, Bob Hasegawa, Timm Ormsby, James Moeller, Mary Helen Roberts.[9]
According to reports there wasn't an organized opposition. However, some argued that the proposed measure would impose too much debt on the state and wouldn't create the jobs or provide the energy savings as proposed. Rep. Judy Warnick said, "R52 is not going to come through with the results that the proponents think it's going to. It's like maxing out our credit cards and using it for disposable items, like light bulbs and windows."[10]
According to the secretary of state's website, opponents additionally argued that, "The figure of 30,000 new construction jobs is drastically overestimated. Opponents say the state econmists really estimate that 5,700 new short-term construction jobs are more likely at the cost of $162,000 in tax money for each job."[11]
In 2010 the Washington Office of Financial Management released fiscal impact statements for initiatives scheduled to appear on the 2010 ballot, including Referendum 52. Below is an excerpt:
Referendum 52 authorizes the issuance of $505 million in state general obligation bonds to fund capital improvements for energy efficiency in buildings owned by public school districts and public higher education institutions. Twenty-nine-year debt service costs are estimated to total $937 million, for an average annual state cost of $32.3 million. Other state costs are estimated to be $2.2 million annually through fiscal year 2015. The sales tax on bottled water is estimated to increase State General Fund revenues an annual average of $39.8 million and increase local government revenues an annual average of $14.9 million.
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| Date of Poll | Pollster | In favor | Opposed | Undecided | Number polled |
|---|---|---|---|---|---|
| August 26 - 29, 2010 | Survey USA | 34% | 42% | 24% | 650 |
| Sept. 30-Oct. 3, 2010 | Survey USA | 28% | 45% | 27% | 639 |
On May 10, 2010 the Association of Washington Business filed a lawsuit with the Thurston County Superior Court. The association asked to change the language scheduled to appear on the November ballot. According to the filing, the organization contended that the legislature omitted information. Specifically, the group pointed to the fact that a temporary sales tax on bottled water would be made permanent if the measure was approved by voters. A hearing was scheduled for May 28.[22][23]
The current language, written by measure sponsor Rep. Hans Dunshee read:
The legislature has passed Engrossed House Bill No. 2561 (this act), concerning job creation through energy efficiency projects in school buildings. This bill would promote job creation by authorizing bonds to construct energy efficiency savings improvements to schools, including higher education buildings.
The Association of Washington Business proposed the court use the following language:
The legislature has passed Engrossed House Bill No. 2561 concerning funding energy efficiency projects in schools and raising taxes therefore. This bill would authorize bonds to finance energy efficiency improvements in schools and higher education buildings, and make the sales tax on bottled water permanent.
In order to place the measure on the statewide ballot, the measure required at least a two-thirds vote in both the House and the Senate. On March 16, 2010 the House re-approved the bill after a vote of 54-39; moving it forward to the Senate for the special session. The bill had previously died in the Senate during the regular session.[3][24]
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Categories: [Defeated, 2010] [Washington 2010 ballot measures, certified] [Bond issues, Washington] [Certified, bond issues, 2010] [Certified, energy, 2010] [Energy, Washington]
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