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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