Change to I-900 resurrected from the dead

Proving the point that no bill is ever dead, in a surprise move today the Senate suspended the rules and adopted the proposal to amend the funding stream for the I-900 performance audits adopted by the voters. Earlier this session the State Auditor strongly objected to SB 6450. It appeared the bill was dead when it was not acted on by the normal cutoff but it was revived today and passed by a vote of 26-22.

The State Auditor sent the following letter to all state Senators on February 15:

I write to state my strong opposition to Senate Bill 6450, which would require the State Auditor to reimburse school districts and educational service districts for the cost of providing information used for performance audits.

When the citizens of Washington overwhelmingly approved Initiative 900 in 2005, granting our office performance audit authority, they were seeking greater accountability and transparency in state and local government.  We are proud that our first nine performance audits have made 434 specific recommendations and identified more than $3.2 billion in potential cost savings, unnecessary costs and economic benefits.  Clearly, these audits have shown their value.

In particular, our performance audit of the state’s educational service districts contained 215 recommendations and identified potential savings of $23.5 million over five years that could be saved by better coordinating services and avoiding duplication.

I am certain that SB6450 is not about costs.  The fiscal note estimated the total cost to the nine ESDs of providing information for the audit was $11,529.  It also is important to note during this audit, and every other audit, we make every attempt to minimize the effect on the audit client.  In nearly every case, those we audit find these efforts, and our audits, beneficial and worthwhile.

My greatest concern is that this bill could open the door to other governments.  I believe that citizens, when they passed the initiative, contemplated the funding it created would be used by the Auditor’s Office to perform audits, not to reimburse entities for providing information and records they already should have on hand.

Finally, I ask you to consider whether the administrative costs to districts that would be caused by this legislation would be greater than any reimbursement it might provide.

I urge you to reject SB 6450 and enable us to fully carry out our audit responsibility that citizen’s demand, expect and deserve.  Thank you for permitting me to share my views on this bill.  If you have any questions please contact me.

Sincerely,

BRIAN SONNTAG, CGFM
STATE AUDITOR

The State Auditor also testified against the bill when it was still in committee.