An investigation by the Senate Law and Justice Committee has concluded that Sound Transit mislead lawmakers and voters on its ST3 funding package, violated the State’s Constitution, and improperly used public resources to promote ST3.
“Sound Transit played fast and loose with the truth,” said Sen. Mike Padden, chair of the Senate Law and Justice Committee. “It kept key facts from the Legislature and the voters. It displayed disregard for laws designed to ensure full disclosure and prevent public resources from being used for campaigns. Sound Transit has given government at all levels a black eye.
Sound Transit may be vulnerable to a lawsuit challenging its ballot measure on constitutional grounds, but bonds have already been issued, and it will be difficult to un-ring that bell. What is more important is what we do about it in next year’s legislative session. Our investigation shows we need to bring Sound Transit back in line, restore accountability and rebuild public trust.”
The Committee held two investigatory hearings, interviewed nine witnesses, and reviewed over 7,000 pages of documents during its investigation.
The first hearing focused whether Sound Transit purposely misled the Legislature in 2015 during its request for taxation authority and whether the legislation that gave Sound Transit taxation authority is unconstitutional.
The Committee concluded that the legislation was unconstitutionally drafted because it referenced a repealed statute – the 1996 car valuation schedule that increased car tab taxes – without including the valuation schedule in the new bill. The Committee decided that lawmakers and the public were not aware of which valuation formula Sound Transit would use because of the way the legislation was unconstitutionally drafted.
Under the list of recommendations in their findings and recommendations letter, Committee Chair Senator Mike Padden and Vice-Chair Senator Steve O’Ban write:
No recommendation for legislative action on this item. The appropriate remedy can only be achieved in the courts, which may include a determination of the validity of ST3-related bonds.
The Committee also found that Sound Transit misled legislators in their 2015 request for $15 billion in taxation authority over 15 years, which was approved. However, Sound Transit proposed a $54 billion tax package to the voters in 2016, after the legislative session had adjourned. Part of the key findings from the investigation states:
When pressed, Sound Transit’s government relations director and spokesman were unable to point to a single piece of paper from Sound Transit during this period that clearly and unambiguously indicated that Sound Transit might seek more than $15 billion.
During the hearing, Sound Transit employees Ann McNeil and Geoff Patrick explained that the Legislature did not include a time limit on the taxation authority, allowing Sound Transit to increase the tax package from the expected $15 billion over 15 years to $54 billion over 25 years after receiving public input on which projects were needed.
The Committee recommends considering legislation that makes Sound Transit’s board directly elected in order to increase accountability and to consider legislation that gives taxpayers substantial and meaningful tax relief.
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Finally, the Committee looked into Sound Transit improperly participated or misled voters in the promotion of ST3.
The Committee found that Sound Transit improperly provided email addresses of ORCA cardholders to the non-profit Transportation Choices Coalition, which were then used for campaign mailings. Sound Transit also provided money to outside organizations and coordinated testimony and lobbying efforts by those organizations before the Legislature.
Sound Transit also paid thousands of dollars in membership dues to several organizations, including $35,000 a year to Transportation Choices Coalition to provide “support for ST efforts to secure grants, additional revenue, and other funding,” among other objectives
Public agencies are not allowed to lobby in order to prevent tax dollars from being used to raise more tax dollars. Public agencies are allowed to provide legislators with information about how a piece of legislation may affect the agency. Public agencies are not allowed ask other organizations to advocate on their behalf.
The Committee recommends the Legislature:
- Consider legislation that limits the political activities of employees of any local or state agency in a campaign that directly benefits that agency.
- Consider legislation that freezes or limits advertising budgets of state or local agencies concerning ballot initiatives that could increase revenue to the agency, so as to avoid indirect use of public funds to support a ballot initiative.
- Refer the issue of whether Transportation Choices violated restrictions on political activities by non-profits. One issue that could be investigated further is whether TCC should have allowed the ST3 campaign to reimburse TCC for the time spent on leave by its campaign It should also be considered whether Sound Transit’s funding of TCC in light of this arrangement served to circumvent the restrictions on indirect use of public funds to support a ballot initiative. This question could be referred to an appropriate authority such as the Attorney General, State Auditor, the PDC or King County prosecutor’s office.
- Refer the issue of whether Rideshare Online emails were improperly disclosed to the Transportation Choices/Mass Transit Now campaign to an appropriate authority such as the Attorney General, State Auditor, the PDC or King County prosecutor’s office.
However, the Committee’s recommendations are exactly that: recommendations. It is up to the judicial branch to decide whether to act on several recommendations, including declaring the legislation giving Sound Transit taxation authority unconstitutional, which would likely disrupt or delay ST3 projects.
It is more likely that legislation will be introduced in the 2018 session to address some of the Committee’s recommendations. Last session, Republicans introduced a multitude of bills related to Sound Transit which did not pass, including changing Sound Transit’s board to elected instead of appointed, changing the car-tab formula to the Kelly Blue Book values, and allowing cities and counties to opt out of ST3 taxes.
Senator O’Ban promised to address the Committee’s findings in the 2018 session:
Government has no business operating this way. We expect public agencies to behave with the highest standard of honor and integrity. We can be sure this will be a front-and-center issue in next year’s Legislature. We have a duty in the Legislature to ensure this kind of misbehavior never occurs again.
Read the executive summary letter
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