IMO one partial solutio could be that the State should start by stump breaking the local jurisidictions (counties, cities, and any other local tax revenue receiving entity) by letting them know that any new improvements are to be voted on and funded locally. Don't apply for any more of our grants, because we are putting that money back in the GF.
The voters of our state need about 4 or 5 years of having the sugar [censored] pulled away, and let the small jurisdictions prioritize improvements by their voter's wishes not by what type of grant is available for them. This of course would require these small governments to work much, much harder to get anything done, but it would let people see how much more can get done when their tax dollar stays home, in lieu of heading to Olympia.
For an example. Say a city wanted to have sidewalks added to a section of street. They could apply for a grant from the TIB (or something like it), or work their asses off to pass a municipal bond with a local super-majority. I would prefer to pay a local bond an extra $450 a year, than the state an extra $30. I think the ROI will be better for me.
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WDFW - Turning outdoorsmen into golfers since 1994.