The Trib has the story:
Delegates at the state Democratic convention voted to endorse Initiative 1068, which would legalize the sale and use of marijuana in Washington. The vote was 314-185, a defeat for delegates who said the initiative is too broad and would make it more difficult for candidates to run in more conservative areas. [...]
On a voice vote, Democrats overwhelmingly opposed Initiative 1100, which has turned in enough signatures to likely earn a place on the ballot, and Initiative 1105. Both would privatize the state-run system of liquor sales, allowing grocery stores and other businesses to sell hard liquor.
Sure it seems weird, but this comes down to cash. The state budget is fucked. The pot initiative would free millions in law-enforcement resources; the liquor initiative, assuming the next Eyman measure passes (which looks probable), would drain the state's revenue by about $320 million.
Personally, I think both initiatives would have benefited from better drafting (the pot measure should limit the size of growing/selling operations; the liquor initiative shouldn't completely strike taxes and require the legislature, which will be unable to reach a two-thirds majority, to reinstate those taxes). But the legislature failed to pass bills this year to improve pot laws or break the state-run liquor monopoly. So this is what they get. If these measures get on the ballot, I'll vote for 'em.