Money, drugs and politics.

It’s hard to separate the three in the race for the state House, 10th District Position 2 seat.

Democrat Tim Knue is challenging Republican incumbent Barbara Bailey in the race for state representative.

In the increasingly bitter battle, Knue’s campaign has harshly criticized Bailey for accepting contributions from pharmaceutical companies, developers and the oil industry, and has hammered the Oak Harbor Republican for voting against cheap prescription drugs from Canada.

Bailey has thrown the issue of campaign contributions back at Knue, saying her Democratic challenger has pulled in big bucks from labor unions.

Beyond healthcare and campaign finances, the two also highlight their differences on issues such as education, the environment and growth.

It’s Bailey’s third run for the job. She easily defeated challenger Mark Norton two years ago, but this time, the contest is shaping up to be as close as when Bailey was first elected to office over Eron Berg in 2002.

During this go-round, Bailey’s record in Olympia is under heavy scrutiny.

Critics point to her sizable campaign war chest and say she is in the pocket of big business.

Most noteworthy, opponents say, is the money she has pulled in from major pharmaceutical companies.

Campaign finance records show Bailey has received money from Pfizer, Eli Lilly, GlaxoSmithKline, and other pharmaceutical giants. Bailey also accepted contributions from Schering-Plough while the company was under a multi-state investigation for manipulating prescription drug prices. Schering-Plough later reached a multi-million dollar settlement with Washington state.

Bailey did not return the contribution.

Bailey said the contribution was legal. If it wasn’t, she would have given it back, she said.

“It’s not a statement of approval and has no influence on the legislation,” Bailey said.

Bailey defended accepting money from pharmaceutical companies, which has been fodder for political ads and mailings that mention her votes against cheap drug imports from Canada.

“Serving on the health committee, it’s natural to get funding from certain groups,” she said.

Bailey said she can’t be bought with campaign money. And she also pointed out that her contributions come from a broad base of individuals and small businesses that represent all walks of life.

“Nobody gets excited when my opponent accepts thousand and thousands of dollars from big labor unions,” she said.

Bailey has raised more than $90,000 through mid-October. Knue had raised about $50,000, with help of the Democratic Party, labor and teacher unions.

To be sure, healthcare has been a thorny issue for Bailey on the campaign trail. Critics say she was ousted from her leadership position as the ranking minority caucus lead on the House Health Care Committee by her own party.

Bailey discounts the accusation, and said her stepping down was a mutual decision because she was asked to take on more responsibilities in other areas.

She added work for the joint select committee for pension policy, was appointed by the governor to the global competitiveness council, and served on the economic, agriculture and trade committee.

Bailey said the Knue campaign is spreading misinformation.

“The negative campaigning made me wonder what people feel they have to do to get elected,” Bailey said.

Bailey said she supports easing regulations for medical-insurance providers in the state, and says too many rules have hurt competition and driven up healthcare costs. Bailey pointed to Wal-Mart’s pilot project of selling generic prescription drugs at low cost, and the pressure it put on the market and the benefit for consumers.

She opposes Knue’s ideas for a single state healthcare system, addin she has yet to see government be efficient and that it restricts patient choice.

“There should be opportunity to put more healthcare responsibility in the private sector,” Bailey said.

Knue disagrees.

Choices are great for those who can afford to make them, he said. But Bailey’s free-market philosophy hasn’t found a way to get insurance for 600,000 state residents who don’t have it, he added.

“We are the industrial nation with one of the worst health systems,” he said.

Critics of the single state healthcare system say financing the program is nearly impossible and will end in limited services to patients and loss in patient choice.

Knue said taxpayers are already paying, because the uninsured end up in emergency rooms because they wait for medical issues to worsen before they seek care.

“We are already paying for it now. Universal healthcare would mean we pay it then in one pot,” Knue said.

“It wouldn’t be much different from what we’re paying now, it’s a matter who to pay to,” he added.

Knue said he’s in favor of insurance companies paying for preventative medicine since it will save taxpayers a lot of money in the long run. He said preventative healthcare saves money.

Bailey’s healthcare votes have been controversial.

Bailey voted against allowing reimporting prescription drugs from Canada. Knue said the bill directed the state to seek a waiver request from the federal government so the state could reimport FDA-approved drugs from Canada.

Bailey said the bill, as it was, stood no chance.

“The Canadian government said, and that’s a quote, ‘We will not be the drug store for America,’” Bailey said. Based on her research, Bailey said she doubted waivers would be granted.

The bill was later passed, however, and the state was authorized to make the waiver request to the federal Food and Drug Administration.

Bailey also voted against outlawing free tobacco samples. Critics point to her acceptance of campaign money from tobacco companies.

“There is nobody as opposed to smoking as I am,” Bailey said.

“But I do not believe we should discriminate against the manufacturer just because we don’t like the product,” she said.

Instead, the government should focus on enforcing the laws that do exist, she said, and people under 18 can’t purchase tobacco legally.

Growth issues

Both candidates see growth as one of the main challenges the 10th District — which stretches from Skagit County and north Whidbey Island to north of the Tulalip Indian Reservation in Snohomish County — in the next few years.

“We can’t stop it, nor should we,” Knue said.

“But plan for it, influence it,” he said.

Both candidates see problems with the Growth Management Act, particularly its mandate for critical areas regulations that require buffers and setbacks along streams and wetlands.

Knue said science and experience has shown that some of the rules may need to be reviewed.

Bailey has said she would exempt owners of 10 acres or less from the regulations.

Both also see problems with Initiative 933, the controversial ballot measure to pay property owners when government regulations impact the value of their property.

Both candidates see it being tied up in the courts if it’s approved by voters. Knue said he would vote against it, Bailey said she would vote for it.

Knue said passing the initiative would be devastating to counties, especially small ones like Island County that don’t have the money to compensate property owners. It would wreck the stability provided by existing laws to protect farms and forests such as the Growth Management Act.

“I’d like to see it fail and see the Legislature step up and address the issues,” he said.

Bailey said while the initiative is flawed, she strongly believes in property rights.

“We have to either adhere to the Constitution or change the Constitution,” she said.

Education

Bailey said the state needs to help school districts provide the best possible education.

She said the state has failed to live up to the promises made when I-722 and I-728 were passed by the people.

I-722 altered how property taxes are levied and how property is assessed. I-728 was designed to generate money for public schools by redirecting a portion of state property-tax revenues, the emergency-reserve fund and lottery proceeds.

Knue agreed that spending for education must be increased.

“Less is not more,” said Knue, a high school agricultural teacher.

Environmental issues

Bailey has voted against tax incentives to encourage the use of alternative fuels.

Market forces work best, she said.

“It’s not the government’s role to manipulate and mandate, but to support the development and research and allow the market to develop,” she said.

Knue said he believes that a shift in America’s transportation culture must take place,. And if it takes financial encouragement from the government, that’s fine with him.

“If we can make a difference through tax incentives – that’s a good thing,” he said.

Both candidates say the health of Puget Sound is vital. However, Bailey opposed a bill that would have limited tanker traffic.

Knue said, if elected, he would want to form local citizens advisory groups and he would run decisions through a triple filter of environmental stewardship, economic viability and social responsibility.

Knue said he stands for common-sense solutions and working together to make a difference.

“It’s just like managing a classroom. You have to be able to respect opinions,” he said.

Bailey’s service in Olympia has drawn repeated praise in some circles.

In 2006, she was named recipient of the Legislative Excellence Award from the Washington School Retirees Association.

She received the 2004 Outstanding Legislator award from the National Federation of Independent Business.

“I feel as though I am being effective, there is a lot left to do,” she said.