This election year, the American Beverage Association (ABA), the national lobbying arm of the soda industry, is asking you to give them a tax break. In fact, they're willing to spend over $14 million in Washington State to make sure you give them that tax break by passing Initiative 1107. Even if they only spend the majority of the money they've put into the campaign, it will set a record for spending on an initiative in our state.
Initiative 1107 would repeal small -- and mostly temporary -- taxes on non-essential items like soda pop, bottled water, candy and gum. During last winter's legislative session, the Children's Alliance played a leading role in pushing for these measures. The money they raise -- more than $100 million per year is expected in 2012 and 2013 -- funds early childhood education, K-12 education, health care, protections for seniors and kids, and other important services. Without them, you can expect further, more severe cuts to programs for children, seniors and other vulnerable populations.
The American Beverage Association is running a highly deceptive campaign, claiming that I-1107 is about food. But don't be fooled -- 99.9 percent of the funding for I-1107 has come from the ABA. They're not only funding the initiative, they wrote it. The ABA used their experience killing soda taxes in other states to write I-1107. They very cynically included a provision to reinstate a preferential tax loophole for manufacturers of certain processed foods -- a loophole legislators closed last session because it had been subject to abuse. According to the non-partisan Office of Financial Management (OFM), opening up that tax loophole accounts for less than 4 percent of the revenue in I-1107. There is no food tax in Washington. Soda pop and candy are not food.
I-1107 is about soda company profits at the expense of Washingtonians. If I-1107 passes, the same essential services that narrowly avoided cuts last session will be back on the chopping block in January. These additional cuts would come on top of the $4.4 billion that's already been cut from the budget during the last legislative session. More than 40,000 people were kicked off the state Basic Health Plan. Thousands of education jobs were eliminated. Class sizes are already soaring and college tuition has skyrocketed by nearly 30 percent. Further cuts to essential services will do serious harm to Washington children and seniors. While the soda industry will reap more profits, our children's health and education will suffer; Washington residents will pay the price with more people using the emergency room since they no longer have health coverage.
According to the OFM, Initiative 1107 will also cut revenue to cities and counties. OFM estimates the initiative will cut local government funds by an additional $83 million, and will cut funding for state performance audits as well.
In these tough economic times, we can't afford to give big, out-of-state special interests tax breaks at the expense of Washington residents. The small, temporary tax on candy and soda was part of a balanced solution to managing the economic recession, which included $4 in cuts for every $1 in new revenue. Across the country, many states are taking a balanced approach to budget shortfalls by approving small, reasonable taxes on non-essential items like candy and soda in order to protect the education and health care services that we all value.
Another consideration is the health impact of sugar-sweetened soda and candy. Soda pop and candy have zero nutritional value and contribute to an epidemic of childhood obesity and diabetes -- with taxpayers footing the bill for the resulting health costs. Right now, the two extra cents we pay for a 12-ounce soft drink is helping thousands of children get the things they need to stay healthy. I-1107 would undo that, lining the pockets of out-of-state soda companies, while continuing to encourage consumption of sugary drinks and candy.
A growing coalition of advocates for children, education, and the elderly, including the Children's Alliance, Community Health Network of Washington, Elder Health Northwest, Washington Association of Churches, Citizens to Protect Our Economic Future, the Washington Chapter of the American Academy of Pediatrics and the Washington State Public Health Association, have joined together to oppose Initiative 1107.
Don't let out-of-state special interests hurt Washington children and families. Vote No on 1107.