Heard back from Slacker Support.....
"Stations, by default, will always play the streaming version of a station when started up. You will only listen to the downloaded version of a station if you explicitly select the downloaded version of the station from the offline section each time (having the station auto-start when the app starts up, or selecting the station from the Recent menu will all restart the station in streaming mode) or having the phone in Airplane mode when you start the Slacker app (as this will only allow access to the downloaded content)."
I've turned off autostart and will manually pick the offline station each time to see if it makes a difference.
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