SENATE BILL REPORT
INITIATIVE 102
BYrequest of the Citizens of Washington State
Children's Initiative Act.
Senate Committee on Children & Family Services
Senate Hearing Date(s):January 25, 1989
Senate Staff:Jennifer Strus (786-7472)
AS OF JANUARY 30, 1989
BACKGROUND:
The Children's Initiative was filed with the Secretary of State on July 7, 1988 and was certified to the Legislature by the secretary last Friday, January 20, 1989. Approximately 220,000 total signatures were gathered from across the state.
Children's advocates have become increasingly dismayed by the lack of resources available to support programs to assist children and their families. Consequently, the Children's Initiative was drafted as a method of ensuring that children's programs and education are adequately funded.
SUMMARY:
A children's initiative fund is created along with a tax increase to fund it. The fund has two accounts: the children's services and support account, and the K-12 education account. Each receives 50 percent of the monies deposited into the fund.
The monies in the children's services and support account may be appropriated only to state agencies which administer programs providing services and support to children. These programs include the following: early intervention and prevention; services for abused and neglected children; maternal and child health; child care; early childhood education; family support; out-of-home placements; mental health and developmental disabilities services; juvenile rehabilitation programs; services for homeless children and limited increases in the AFDC grant standard.
The monies in the K-12 education account may be appropriated for the following: reductions in class size; basic skills learning assistance programs; programs for handicapped children; programs for low income or minority at-risk children; in-service training for instructional staff and other programs that promote high quality education.
Monies from the children's initiative fund may be used only for services in eligible programs that would have been funded in the 1989-1991 biennium. Funding is to be at the 1987-1989 appropriation level increased for inflation and caseload growth.
The initiative fund may not be funded by taking monies from other activities of state government.
A Children's Initiative Fund Oversight Committee is formed to assist the Governor and the Legislature in determining how funds should be spent.
The children's initiative fund shall raise new revenues by fairly and equitably distributing the tax burden among the state's taxpayers; protecting low income people; promoting business development and economic growth; and assuring a stable funding base for state services. These taxes must be new or increased taxes and can be raised in the following manner: by increasing any tax rate in effect as of July 1, 1988; by increasing any tax base in effect as of July 1, 1988; or by creating any new tax not in effect on July 1, 1988.
If new or increased taxes sufficient to generate $360 million during the fiscal year beginning July 1, 1990 are not imposed and are not required to be deposited in the fund, then alternative sales and use tax increases of .9 percent become effective June 1, 1990.
The sales and use tax increases occur only if the Legislature fails to impose new or increased taxes that meet the standards of the initiative.
Appropriation: none
Revenue: none
Fiscal Note: none requested