SEATTLE, Oct. 9 /PRNewswire/ -- SNW (Seattle-Northwest Securities Corporation), a leading municipal bond underwriter and secondary market maker in Washington, has announced the firm's strong opposition to I-1033.
"The State of Washington, and its cities and counties, are reeling from budgetary shortfalls due to the recession. This is not the time to impose crippling new revenue limitations that could further curtail essential services in the State and slow our economic recovery," said Maud Daudon, President and CEO of SNW.
Citing specific reasons for opposing the legislation, SNW indicates that:
-- I-1033 limits year-over-year increases to a combination of national
inflation and population growth but creates no ability to recoup revenue
losses incurred in a recessionary environment. This means that each new
general fund revenue low establishes the base for future general fund
revenue calculations as prescribed and limited by I-1033. This tax
structure would be put in place during a period where annual general
fund revenues have declined by 9.6%.
-- I-1033 provides no clarity as to how property taxes can be restored once
reduced. Governments will be left to rely on much more volatile general
fund revenue sources like real-estate excise taxes and B&O taxes for
critical services such as police, fire and K-12 education.
-- I-1033 will have significant negative budget implications for urbanized
areas whose construction and operational costs exceed the national
inflation average.
-- I-1033 would dramatically reduce the ability for State and local
governments to set aside new "rainy day" reserves or replenish
any existing reserves.
"Simply put, this initiative is bad for all Washingtonians. It will mean less money for essential services like basic education, roads, police and fire protection," said Dick Schober, Managing Director of Public Finance at SNW. "It will also make it harder for the State to rebound from the recession and it limits the ability to set aside 'rainy day' funds for future downturns. We strongly urge a no vote on I-1033."
About SNW (Seattle-Northwest Securities Corp.)
SNW was founded in 1970 as an employee owned broker-dealer committed to the communities of the Northwest. The firm specializes in investment banking, tax-exempt underwriting and sales, trading and sales of taxable product municipal securities, and fixed-income asset management. SNW has the largest trading desk in the Northwest, trading roughly $300 million in bonds daily. With offices in Seattle, Portland, Boise, L.A. and Salt Lake City, SNW is committed to meeting the investment and financial needs of institutions, corporations, municipalities, agencies and individuals throughout the Western US. More information about SNW is available at www.snwsc.com.
SOURCE Seattle-Northwest Securities Corporation
Seattle-Northwest Securities Corporation
CONTACT: April Kelley of SNW, +1-206-689-2762, akelley@snwsc.com; or CareyEvenson of Colehour+Cohen, +1-206-262-0363, cevenson@colehourcohen.com, forSNW
