State Senate passes record $59.2 billion spending plan for 2021-23. House budget version up for debate and vote on Saturday.

State Senate passes record $59.2 billion spending plan for 2021-23. House budget version up for debate and vote on Saturday.

by | Apr 6, 2021 | 2021 Olympia Bills to Watch, Olympia News & Views 2021

With less than a month left in this year’s 105-day regular session, state lawmakers are poised for lengthy floor sessions in the coming days, beginning this Saturday and extending through next Sunday, April 11th. That is the last day for both houses to pass legislation sent to them by the opposite chamber. Budget-related measures, however, are not subject to cutoff deadlines.

On Thursday, Senate Democrats successfully pushed through their 2021-23 state operating budget proposal (SB 5092) by a partisan 27-22 vote following lengthy debate. The plan would spend a record $59.2 billion on state programs in the next two years, nearly $8 billion more than the $51.5 billion budget for the current 2019-21 biennium.

As passed by the Senate, the plan assumes passage of a constitutionally questionable capital gains state income tax and would nearly empty the state’s “rainy day” reserve funds.

The income tax on capital gains measure (SB 5096) passed the Senate by a 25-24 vote last month, but has not yet been scheduled for a vote in the House. A bill to impose a $100 surcharge on recorded documents (HB 1277), to spend on homeless and affordable housing programs passed the House last Sunday by a 57-40 partisan vote and will be considered by the Senate next week. This measure would add about $250 million in new taxes and fees imposed on Washington businesses.

Senate Republicans proposed a floor amendment to replace the Democrats’ plan with a proposal of their own. The amendment, sponsored by Sen. Lynda Wilson (R-Vancouver), would spend $55.2 billion over the next two years. It would pay for needed state programs without new or increased taxes, while leaving more than $1.8 billion in the state’s reserve fund, compared to the $400 million Senate Democrats propose to leave.

Sen. Wilson’s proposed amendment was rejected by voice vote. Notably, Sen. Wilson also proposed an amendment to provide funding for implementation of a proposal (SB 5039, which is stalled in the Senate) to limit the duration of gubernatorial emergency restrictions to thirty days. This amendment was rejected on a recorded 22-27 party-line vote.

House Democrats are expected to bring their $58.3 billion spending plan to a vote on Saturday. Their plan also assumes the enactment of a capital gains income tax and would also deplete the state’s reserves.

Legislative Democrats have said their spending plans “respond to the needs that the pandemic highlighted, and include millions for the state’s public health system, child care and early learning and efforts on affordable housing and efforts to reduce homelessness.” Republicans have argued that lawmakers should not impose new taxes in the midst of a pandemic, and have said the capital gains tax is illegal under state law and that litigation is certain if the Legislature ultimately approves the tax.

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WashingtonVotes.org is a free service provided by Washington Policy Center and is the go-to tracking tool to keep up with all the action in Olympia, especially during this mostly virtual session. Please check in often and follow us on Facebook and Twitter at #waleg

Open carry gun ban bill passes state House; $11.8 billion transportation budget passes Senate

Open carry gun ban bill passes state House; $11.8 billion transportation budget passes Senate

by | Apr 1, 2021 | 2021 Olympia Bills to Watch, Olympia News & Views 2021

Open carry gun ban bill passes state House on party-line vote after lengthy Sunday debate. Senate unanimously passes $11.8 billion transportation budget.

State lawmakers continue to focus on major tax and spending proposals, as this year’s 105-day legislative session heads into its final month.

The Senate on Monday unanimously approved SB 5165, a $11.8 billion transportation spending plan for the 2021-23 biennium. House Democrats will reveal their transportation budget proposal this week when they provide content to HB 1564, a blank, “title-only” bill that was introduced by Rep. Jake Fey (D-Tacoma) on Sunday. It is scheduled for a public hearing by the House Transportation Committee at 9:00 a.m. this Thursday. (more…)

Senate Democrats propose $59.2 billion state spending plan, relying on a new capital gains income tax and tapping into state reserves to pay for it

Senate Democrats propose $59.2 billion state spending plan, relying on a new capital gains income tax and tapping into state reserves to pay for it

by | Mar 29, 2021 | 2021 Olympia Bills to Watch, Olympia News & Views 2021

Olympia, WA – March 27, 2021 – With just a month left in this year’s legislative session, state lawmakers this week turned their attention to new proposals for the state’s 2021-23 operating budget. Governor Inslee submitted his $57.6 billion spending plan in December, proposing new taxes to pay for the more than $4 billion increase over the current budget. Republicans released a budget proposal of their own in February that would fully fund state services over the next two years without raising taxes.

On Thursday, Senate Democrats announced their plan for massive new increases in state spending to $59.2 billion over the next two years. This would be on top of some $7 billion to be spent from federal COVID relief funds passed by Congress. The current state budget is $53 billion. (more…)

Pay-Per-Mile Taxes are Coming

Pay-Per-Mile Taxes are Coming

by | Mar 26, 2021 | 2021 Olympia Bills to Watch, Alerts about pending legislation 2021

by Ruth Peterson

Here’s an example of how bad policy is allowed to creep into our lives. All of a sudden you are blind-sided and wish you knew where it came from.

One good example is one I’ve already talked about – the Capital Gains Income Tax. It’s advertised right now as just a tax on the super wealthy, but the goal is to have an income tax. Once the super wealthy have either moved to another state or used their team of accountants to shield their income, the Legislature will end up lowering the threshold and increasing the percentage of the tax. In several years’ time, the middle class will be paying the income tax, and we will all wonder how we got there!

I want to make you aware of another bill that is introducing bad policy – one that will affect all of us, especially those of us in the rural areas. This has to do with a tax-per-mile scheme. The bill is SB 5444. Click here to read the bill report.

This bill will require electric car owners to pay a few per mile. Right now they pay a pretty hefty fee yearly, since they do not pay gas taxes – or may pay severely reduced taxes because their energy comes from electricity. But their vehicle does require infrastructure, so there needed to be a way to pay for road use. Hence the yearly fee. But this new fee will be per mile. It will begin in 2026, just a few years from now. Why is that a bad thing you ask? Well, it’s because as soon as they have the kinks worked out of a pay-per-mile system for EVs, it will be applied to everyone. Right now, because of the hefty yearly fee, most electric car owners will love to change. So WSDOT will have a small number of drivers in a pay-per-mile program. Perfect for getting any problems ironed out before rolling it out for everyone.

Pay-per-mile has some issues.

For those of us in the rural areas, just going to the grocery store can require a drive of many miles. In an urban area, which sometimes has a much higher need for transportation infrastructure, the mileage would not be so great.
Also in the rural areas, many miles are often driven on farmland – private roads. On some farms, over ½ of their miles are driven on private roads. Not only would that increase their costs, they would have to pass those increased costs on to the consumer.

Related to the question of how to differentiate between private and public roads, what if you are a snowbird? If you live in AZ for several months out of the year, how will they tell how many miles were on WA State roads?

Privacy is an issue. This bill would exempt private information from public records, but it certainly doesn’t keep WSDOT from having all your private transportation records. If you have a GPS built into your car or a good-to-go pass, you will have your travel monitored. In fact, in the trial for this program, you would get a letter each month telling you how many times you went over the speed limit. Many people find that idea a little too invasive. The other option would be for them to read your odometer every year, but then we are back to the private/public road and WA/AZ question.

Right now, the 18th Amendment to the WA State Constitution requires that all gas taxes go to roads. There is a requirement in this bill to “take a look at this,” but unless the Constitution is changed to restrict the use of the money received from these fees, it would just take the Legislature on vote on one bill to sweep the funds for other purposes. They’ve already talked about how nice it would be to pay for other things. Yet another tax that could be utilized for the never-ending black hole that is state government.

This bill, which will affect just a relatively few EV owners is the basis for a new program that will be expanded to include all vehicles. By implementing it on a small group at the beginning, they wouldn’t get the overwhelming opposition they would get if the taxing scheme affected everyone. There are not enough EV drivers to kick up a fuss, and they would probably be better off anyway, since this methed of taxation is less expensive than the yearly fees. It’s a bad policy the way they are talking about implementing it.

As with everything, the devil is in the details, and a policy is only one legislative session away from change unless it is included in the Constitution. I’d watch this one very carefully, if I were you. All terrible policies tend to start out as a little change – several baby steps later, people will wonder what hit them!

Democrats continue to move taxes and new “government programs” forward despite plenty of money to cover current budget

Democrats continue to move taxes and new “government programs” forward despite plenty of money to cover current budget

by | Mar 21, 2021 | 2021 Olympia Bills to Watch, Olympia News & Views 2021

WashingtonVotes NEWS:

(with our comments added)

Friday, March 19, 2021

State budget writers working on spending plans for 2021-23, as policy committees wrap up hearings ahead of next legislative deadline.

Now in its 68th day, this year’s 105-day legislative session is rapidly approaching a key cutoff date on March 26th, the last day for policy committees to pass legislation sent to them by the opposite chamber. Fiscal and transportation committees have until April 2nd to report bills to the floor for consideration by the full House and Senate.

Tax and spending bills related to the state budget are not subject to cut-off dates.

This week the House passed an additional bill, HB 1477, to implement the nationwide 988 hotline system. The bill would expand behavioral health crisis response and suicide prevention services, to be paid for by new taxes on smartphone and Internet voice services. The bill passed by a vote of 78-18, with two members excused.

Also late this week, lawmakers in the House introduced a bi-partisan bill to limit the governor’s emergency powers. HB 1557, sponsored by Rep. Drew McEwen (R-Union) and Rep. Mike Chapman (D-Port Angeles),  would require legislative approval to extend emergency orders beyond 60 days. The bill was referred to the State Government and Tribal Relations Committee. (NOTE: (Finally, Mike decides to do something right – AFTER he voted at the beginning of the session to continue the governor’s unrestricted powers!) Three months later – and many jobs and businesses still hurting because of the governor’s dictatorial powers.  Thanks a lot, Mike!)

As House and Senate committees continue working on dozens of bills, budget writers are working on a 2021-23 spending plan. Senate Democrats will roll out their proposal by March 26th, with a public hearing on SB 5092, to make 2021-23 appropriations, scheduled for a public hearing in the Senate Ways and Means Committee on that date. House Democrats say they will have their budget version, HB 1094, ready for possible floor action by Saturday, April 3rd.

Both bills reflect the governor’s budget proposal, released last December, to spend $57.6 billion in the next two-year budget cycle, more than $4 billion over current spending levels. His proposal would impose new and increased taxes to pay for these increases. Republicans released a budget proposal of their own which would fully fund state services over the next two years without raising taxes.

Budget writers are benefiting from an unanticipated increase of $3.2 billion in state tax collections, on top of $4.2 billion the state will receive in federal COVID relief funds. (And yet, MORE TAXES??  MORE PROGRAMS??)

State Democrats say that the extra revenue should be spent on long-term programs, such as expanding child care and early education. They’ve also said that the money could be spent on the state’s transportation budget, due to declining gas tax and toll collections after the governor ordered people to stop traveling when the pandemic hit.

Republicans, on the other hand, have criticized Democrats for continuing to pursue an unconstitutional capital gains income tax and other new taxes. They say that with extra money on hand to pay for needed services, lawmakers should cut taxes on consumers and businesses. Sen. Lynda Wilson (R-Vancouver), the top Republican on the Senate Ways and Means committee said on Wednesday that if the state can’t live within its means, “we have a spending problem.”

WashingtonVotes.org is a free service provided by Washington Policy Center and is the go-to tracking tool to keep up with all the action in Olympia, especially during this mostly virtual session. Please check in often and follow us on Facebook and Twitter at #waleg.

Progression of Bad Bills – Action needed now – Session Ends in a Few Weeks!

Progression of Bad Bills – Action needed now – Session Ends in a Few Weeks!

by | Mar 16, 2021 | 2021 Olympia Bills to Watch, Olympia News & Views 2021

by Ruth Peterson

Last Tuesday evening was an important cut-off date. All bills must be voted off the floor of the chamber they were introduced in or they are dead. This is called the “house of origin.” All Senate bills have to have been passed by the Senate and sent to the House and vice versa. But wait, that isn’t the full story. I never tell people a bill is dead for two reasons. First, if the bill is “Needed To Implement the Budget” (NTIB), it isn’t dead till the last gavel goes down. Example – say there is a bill that provides increased benefits for government employees. Even if it doesn’t pass by the cutoff date, it’s not dead, because if the final budget has the funding for those benefits, the bill must be passed. Or if you have a bill that increases a fee for some license. If the budget includes the money from that fee, the bill can still pass. (more…)