Metropolitan King County Council Budget and Fiscal Management Committee STAFF REPORT Agenda Item: 7 Name: Wendy K. Soo Hoo Proposed No.: 2018-0183 Date: April 25, 2018 SUBJECT Proposed Ordinance 2018-0183 would appropriate $381,000 to the Department of Elections (Elections) to support prepaid postage for all returned ballots in King County for the remaining elections in 2018. SUMMARY Proposed Ordinance 2018-0183 would provide $381,000 in appropriation authority to enable Elections to provide business-reply postage for the 2018 primary and general elections. Of this amount, approximately $191,000 would be revenue-backed by other jurisdictions and $190,000 would be supported by the General Fund. Elections intends to provide prepaid postage on an ongoing basis. BACKGROUND The King County Department of Elections (Elections) is responsible for conducting elections, maintaining voter registration records in conjunction with the State of Washington and providing election-related information to the public and other governmental entities. Under the Revised Code of Washington (RCW), counties are responsible for conducting state and local elections with the cost of elections being shared by cities, towns and districts based on their proportionate shares of the cost. 1 The state assumes a prorated share of election costs in odd-numbered years.2 Elections allocates costs based on the number of registered voters in each jurisdiction and jurisdictions are not charged for additional offices or issues placed on the ballot.3 In recent years, Elections estimates that roughly 50 percent of ballots are returned by drop box and roughly 50 percent by mail. In 2017, the State Legislature amended Revised Code of Washington (RCW) 29A.40.160 to require counties to provide a 1 RCW 29A.04.025 and RCW 29A.04.410 2 RCW 29.04420 3 This methodology is one of two approved methods in the State Auditor's Office Budget and Accounting Reporting System Manual. minimum of one drop box per 15,000 registered voters and a minimum of one ballot drop box in each city, town, and census-designated place with a post office. Elections is proposing to implement a prepaid postage program, beginning with the August and November 2018 elections, to increase voter access. Currently, if a voter puts a ballot in the mail without postage, some post offices will return the ballot to King County (at a charge of $1.70 to King County), but not all post offices return ballots without postage. The proposal to implement a prepaid postage program follows a pilot in the February 2017 Special Election in which Elections tested the use of prepaid postage in two participating jurisdictions with approximately 65,000 registered voters (Shoreline and Maple Valley). Voters in each jurisdiction received ballot packets that included a return envelope with the Business Reply Mail postage already paid. The percentage of total ballots returned by mail during the pilot was 74 percent, as compared to 43 percent in the 2016 General Election. In addition, turnout exceeded that in the previous special election as shown in Table 1 below, though turnout is influenced by many factors. According to Elections, a second pilot in April 2017 for about 8,000 registered voters experienced a similar increase (8 percent) in turnout. Maple Valley Shoreline Table 1 Turnout for February 2017 Special Election Prepaid Postage Pilot Actual Turnout Projected Turnout (in prepaid postage pilot) (based on previous special election) 31% 37% 30% 40% ANALYSIS Proposed Ordinance 2018-0183 would appropriate $381,000 to Elections. This is the estimated cost to provide prepaid postage for the August Primary Election and the November General Election. Elections Budget $381,000 ($191,000 revenue-backed) 2017/2018 Adopted Budget: $38,334,000 Previous Supplemental Appropriations: $672,000 Cumulative Total Appropriation to Date: $39,006,000 Under the proposal, ballots would be mailed to all voters with business-reply return envelopes, but the US Postal Service would charge King County a rate of 50 cents for only those ballots returned through the mail – no postage costs would be incurred for ballots returned by drop box. Elections estimates an increase of 10 percent (from 50 percent to 60 percent) in the number of ballots that would be returned by mail rather than drop boxes if the postage were paid by the county. The costs would be allocated to jurisdictions participating in the election. Elections estimates that $191,000 of the $381,000 estimated cost for prepaid postage for the remaining elections in 2018 would be borne by other jurisdictions – the county General Fund would cover the remaining $190,000. Attachment 4 shows the hypothetical costs other jurisdictions would have incurred for prepaid postage for the 2017 General Election based on the actual number of ballots returned by mail. The transmitted fiscal note also shows the anticipated costs and revenues for upcoming biennia and is summarized in Table 2 below. Table 2 Summary of Fiscal Note Prepaid Postage Cost Revenue from Other Jurisdictions 2017-2018 2019-2020 2021-2022 $381,000 $1,140,000 $1,005,000 $191,000 $675,000 $540,000 According to Elections staff, the estimated costs and revenues are based on prior years' experience in terms of the number of measures and races on each ballot. The estimates also assume that 60 percent of ballots would be returned by mail – in recent years, about half have been returned by mail and half have been returned by drop box. The estimates do not take into account any expected increase in overall turnout. While the fiscal note shows an expected ongoing cost and Elections has indicated its intent to implement this program on an ongoing basis, no code change is being proposed. As a result, the Director of Elections could decide in the future to discontinue this program. Note that King County would be the first county in Washington to provide prepaid postage on an ongoing basis. ATTACHMENTS 1. 2. 3. 4. Proposed Ordinance/Motion 2018-0183 Transmittal Letter Fiscal Note Potential Prepaid Postage Costs by Jurisdiction for 2017 General Election INVITED 1. Julie Wise, Director, Elections Department 2. Nathan Valderas, Deputy Director, Elections Department