Legislative Commentary

The Senate passed a new operating budget on Friday after debating amendment after amendment for the better part of six hours. Our balanced plan would support critical constitutional reforms of the state’s school-levy approach, add more funding for basic education and strengthen the social-services “safety net” without calling for new taxes.

When we made our budget proposal public earlier in the week, I figured the fact that it increases spending but still stays within available revenue would draw criticism from Governor Inslee and others who want big spending increases – and a record tax increase to support them.

Sure enough, within hours the governor said the Senate budget’s priorities are misplaced and used a specific example: a sales-tax break our budget proposal maintains for “products that impart flavor to food during the cooking process”.

However, Inslee apparently forgot he signed that tax break for restaurants into law four years ago! To top it off, two of his fellow Democrats in the Legislature have proposed extending it past the scheduled July 1 expiration. One is the Senate minority’s budget leader. Keep reading for more tax-related claims that just don’t make sense.

Senate budget would
make record investment in K-12 education

The operating budget we passed early today is an “education budget” if there ever was one. It is also true to the priority we put on education when our majority took over leadership of the Senate in 2013.

The new budget supports the Senate K-12 education plan, which would guarantee school districts a minimum of $12,500 in funding per pupil, fund dramatic salary increases for beginning teachers, and bring equality to local-levy rates. Our approach would provide property-tax relief for 83 percent of property owners statewide.

K-12 education would account for more than 50 percent of our budget – a level that hasn’t been reached since a Republican was governor (John Spellman, in 1983). That’s appropriate, considering state government’s paramount duty is to provide for basic education.

The budget also expands on the historic college-tuition reduction we enacted two years ago by adding 1,800 enrollment slots for resident undergraduates at Washington’s public colleges and universities.

Students pursuing STEM majors would get preference for 70 percent of those slots. That is good for Washington employers seeking such skills and good for Washington students who may hope to work in their home state after graduating.

Support for vulnerable residents,
plus meaningful and affordable investments

The new Senate budget proposal does much more than provide for education. It addresses a mix of social-service needs while making smart investments in public safety, government efficiency, and the state workforce.

Enhance senior programs, including expansion of the meals-on-wheels program, increased vendor rates, and a raise in the personal needs allowance for elderly Medicaid recipients under state care.

Improve treatment for the mentally ill, including a $250 million investment over four years to increase capacity at treatment facilities, expand community housing opportunities, and develop financial incentives for effective and appropriate care.

Overhaul the foster-care system to improve outcomes for children and stem the loss of foster homes.

Expand options for people with developmental disabilities, including a new program providing Medicaid support for family caregivers.

Target public-safety expenditures to areas of greatest need, including funding to make the 4th DUI offense a felony requiring prison time, and to implement reforms at the troubled state Department of Corrections. It also funds longer sentences for habitual property offenders, sexual offenses against children, domestic violence felonies, and crimes against vulnerable adults.

Reforming welfare programs to emphasize employment requirements, expand vocational training and reduce state overpayments.

Reducing the state’s long-term liabilities, by paying down the unfunded liability in the Public Employees Retirement System Plan 1 pension program by $700 million – reducing eventual state expenses $1.4 billion.

Providing reasonable compensation for state employees, by granting all state employees a $1,000 pay increase, fully funding step increases based on experience, and maintaining current health benefits.

The budget rejects most of the costly collective bargaining agreements negotiated last year between public-employee unions and the governor’s office.

Proposed budget would maintain
vital services while avoiding new taxes

After the Senate budget was made public early this week, the form-letter emails started pouring in to senators’ offices.

The email claims that the Senate budget doesn’t fund “vital state services.” I know teachers who would consider public schools to be a vital state service. And the $1 billion-plus in additional spending on non-education services in our budget surely includes many vital services.

The state tax code can be difficult to follow, but Washington does not tax personal income, unlike Oregon and California and many other states. State government even uses that fact as a marketing tool. Therefore, our state can’t have a “tax break on capital gains” because income from capital gains is personal income.

The message doesn’t identify “other wasteful tax breaks,” but either way, it’s a fact that each preferred rate or exemption in our tax code is there because of bipartisan support in the Legislature. It’s also a fact that for more than a decade our state has had a citizens’ commission dedicated to a “cleanup” of the tax code.

We are fortunate that Washington’s economy is still growing. Between the additional revenue produced naturally by the economy and our majority’s reprioritizing of other spending, the Senate budget does not require new taxes.

It’s important that our budget doesn’t increase the burden on families and employers, because unemployment in 37 of our state’s 39 counties is still above the national rate. The significant economic growth and prosperity seen in King County and the greater Puget Sound area aren’t being enjoyed statewide.

The Senate budget also complies with the state’s four-year balanced-budget law, and doesn’t tap the state’s rainy-day fund.

In contrast, the budget proposed by the governor last December would require the biggest tax increase in Washington history – $8.7 billion when fully implemented, and require a further tax increase of $2 billion within four years.

Senate’s proposed transportation budget
 includes important local projects

The 2017-19 transportation budget proposed by the Senate early this week includes $41.7 million toward a range of transportation investments in the 9th District, including highway and rail projects.

This includes $15 million over the next four years to add acceleration and deceleration lanes, improve existing left-turn lanes, and construct safety improvements between Pasco and the Franklin County line north of Connell. It also includes $10.1 million to add passing lanes on U.S. 195 between Colfax and Spangle.

Speaking of transportation projects, let me report that the contract has already been awarded for the Interstate 90 paving project from the Adams County line to the Spokane County line, where the condition of the highway recently caused the state Department of Transportation to reduce the speed limit to 60 mph.

The contractor is waiting for better weather to begin the work, and the project should be operationally complete by November.

I have to wonder whether this important project could have been funded without the Legislature’s passage of the Connecting Washington package in 2015, and the flexibility that gave the state DOT.