Tag Archives: Sound Transit

One Dollar or a Billion

 

Greetings Friends and Neighbors,

I hope that you’ve had a great summer. Things have been quiet in Olympia, but something groundbreaking just happened. Late last week, the state Supreme Court heard oral arguments in the case Black v. Central Puget Sound Regional Transit Authority.

About a year ago, when it became apparent that the majority party wasn’t interested in providing tax relief from Sound Transit’s deceptive car-tab taxes, I knew we had to get creative. Since I’m personally outside the ST3 area, we needed someone affected by the agency’s unfair calculations to file a lawsuit, and we did just that.

The problem for Sound Transit is that the bill it gave to the Legislature in 2015, giving it the taxing authority, was written unconstitutionally. Sound Transit cited a calculation for the car-tab taxes that had been repealed and deceived taxpayers about how much they’d really have to pay. Not to mention the transit authority used public resources to support its political efforts by giving over 150,000 private email addresses to a campaign.

To date, Sound Transit advocates have successfully blocked any tax relief, arguing that it would be catastrophic because they had to, by law, use the higher car valuations. Now it turns out, they’ve been using a different calculation all along! When that fact came to light, the state attorney general, who had submitted briefs to the high court, backed out of defending Sound Transit.

So, what does all this mean? It confirms what my colleagues and I, and taxpayers, have felt for years. Sound Transit deceived voters and the Legislature to get more tax revenue. What we’ve learned is that this agency will do anything to get more of your money. It broke the law and doesn’t care. The amazing thing is that Sound Transit’s attorneys said as much during the hearing.

Sound Transit argued that if it lost, needed tax revenue for projects would be lost.  So, its argument to the court is: Don’t rule in favor of the taxpayers because we will have to give them back their money we lied to them to get. The bottom line, and what Justice Gonzalez pointed out, is: ”It doesn’t matter if it is a dollar or a billion, the constitution is the constitution.” The cost to the agency doesn’t matter if the agency didn’t follow the law. Taxpayers have a right to know what the government is doing.

It is for these same reasons that I’ve been advocating for some serious reforms of this agency. Instead of appointed and unaccountable bureaucrats, Sound Transit’s board should be elected by the people.

I’ll be sure to keep you updated on further developments in the case.

Please don’t hesitate to reach out if you have any questions or concerns about your state government. It is an honor to serve as your state Senator.

 

Sincerely, 

Fortunato Signature

Phil Fortunato

Your 31st District State Senator

Fortunato calls on Sound Transit to halt $10 million giveaway

Sen. Phil Fortunato, R-Auburn, is calling on Sound Transit’s governing board to reverse a decision made last week to transfer millions of dollars of property over to non-profits at a financial loss. Sound Transit plans to transfer property valued at $18.5 million for a third or half of its market value in order to provide affordable housing sites in Seattle.

“Suddenly, the agency that claims every dime is essential for transit projects and can’t cut car tabs by a single penny, can afford to give away $10 million,” Fortunato said. “Sound Transit is taking millions from the budgets of families with school age children and seniors in the name of ‘congestion relief,’ so that it can turn around and give those millions away to something that has nothing to do with transit.

“This is pure bureaucratic arrogance. Tell voters it is all for congestion relief, then do whatever you want and give voters’ money to housing in Seattle. Every board member voting for this should be fired.”

Sound Transit made the decision in Resolution 2017-20 on May 25. It allows for a surplus parcel known as the “Roosevelt Station – Central Transit-Oriented Development Site” to be sold a steep discount for the purpose of affordable housing. In a letter (linked below) to Sound Transit Chief Executive Peter Rogoff, Fortunato questions the legality of the move based on stipulations in the federal grant and whether property seized through eminent domain for transportation purposes can be given away at a discount for unrelated purposes.

“This is social engineering insanity,” said Fortunato. “If Sound Transit thought people were mad about car tabs tripling before, wait until the people hear about this. This agency is absolutely tone deaf to the people they serve—or in the case of my district, the people they do not serve but just extract taxes from.”

Sound Transit.Rogoff Letter

Fortunato hails Senate move to cut Sound Transit car tab tax

Car tab taxes would be cut by 55 percent and Sound Transit board members would be required to stand for direct elections under legislation that passed the Senate Tuesday afternoon.  Senator Phil Fortunato, R-Auburn, is a cosponsor of both bills, SB 5001 and SB 5893

“If Seattle politicians think their constituents are mad about car tabs tripling, they should visit my district where we voted no on Sound Transit 3 by more than 60 percent,” said Fortunato. “Cutting car tabs by 55 percent only costs Sound Transit 4 billion dollars over 30 years, but you’d think from how they’re complaining we’re asking for their first born.”

Both bills now go to the House for consideration.  SB 5893 was amended from its previous version to structure the car tab tax cuts as rebates to eliminate the estimated expense of defeasing bonds.   The new tax cut mechanism reduces the estimated loss of revenue to Sound Transit from approximately $12 billion to just under $4 billion.

“This might reduce the scope of the next party they hold for being a decade late and eighty percent over budget, but taxpayers will feel real relief,” said Fortunato. “All we need now is for the House Democrat leadership to stop protecting Sound Transit and start protecting the taxpayers.

 

VIDEO: Fortunato fights to cut Sound Transit’s inflated car tab taxes

In this video, Senator Fortunato outlines his efforts to hold Sound Transit accountable and get taxpayers relief from their inflated car tab taxes.  Sen. Fortunato also describes how Sound Transit’s car tab tax defenders wanted to use funds dedicated to homeless and foster kids to protect Sound Transit’s outrageous tax collections.