The Gristle

Good, Bad, Ugly

Wednesday, July 5, 2017

GOOD, BAD, UGLY: Sometimes you have to pass a budget to know what’s in it.

The Washington State Legislature did indeed pass a historic general operating budget, avoiding a fiscal crisis. Governor Jay Inslee signed a new two-year $43.7 billion state operating budget within minutes of the Friday deadline to avoid a partial government shutdown.

The budget spends $1.8 billion on K-12 public schools over the next two years. That amount is part of a $7.3 billion hike over four years designed to satisfy a state Supreme Court ruling that the state had not adequately funded public education.

“This budget, at long last, meets our constitutional obligations to fully fund basic education, and addresses the responsibilities we have under the McCleary decision to equitably fund our schools,” Inslee said.

For Democrats, the budget came at the cost of surrendering to a realignment of property taxes to fund public schools. Democrats had sought new revenue from new revenue sources. But under the approved budget, property owners in 110 schools districts will see an increase in their taxes under the new state budget; those in 185 school districts may see a decrease in property taxes.

McCleary erupted into being because local school district levies were shouldering a disproportionate burden of school operations and teachers’ salaries. Districts with poorer property values—many of them conservative districts clustered in the eastern portion of the state—were also not passing local levies and equitably funding their schools. Bellingham and other communities around Puget Sound with higher property values also pass their levies. So one irony of this agreement is communities that were routinely funding their excellent schools must now endure a property tax increase in order to assist those communities that weren’t fully funding their schools.

The solution to McCleary “is primarily funded by a $4.1 billion property tax increase that disproportionately impacts many communities across the state,” Sen. Kevin Ranker, the Democrats’ top budget writer, admitted. “I believe a more progressive plan including other options, such as a carbon tax on polluters, would have provided a better path forward. Unfortunately, the Senate Republicans have insisted on the biggest state property tax increase in our history.”

Despite its focus on public education and a bare bones approach to the remainder of state operations, the budget agreement is not without other merits.

The budget also manages to improve funding for the state’s mental and physical health systems—at $116 million about half of the projected need—as well as health care, programs for people with disabilities, services for vulnerable seniors and job training for the under-skilled. With the budget agreement, Washington also became the fifth state in the nation to approve paid family leave.

The program will provide up to 16 weeks of leave for those wanting to take time off to care for a new infant or care for a family member. Depending on their earnings, employees will receive up to 90 percent of their wage or salary or up to $1,000 per week. The program will be implemented by 2020.

“This budget makes a historic $7.3 billion investment in our children’s future,” Ranker said. “It spends tens of millions more on mental health and homelessness, fully supports family planning and Planned Parenthood, fully funds our state employees, increases funds for higher education, implements the Clean Air Rule, and closes tax loopholes on bottled water and big oil.

“For over 50 years, big oil has taken advantage of a unique loophole intended originally only for the timber industry,” the Orcas Island Democrat explained. “We were able to close this decades-old loophole saving Washington taxpayers tens of millions of dollars that previously were given away to big oil companies.”

Ranker was also pleased with a bill that enhances enhances the solar production incentive for renewable energy systems, “supporting hundreds of jobs, local businesses and renewable energy for our communities,” he said. “After several years of collaboration between installers, manufacturers, utilities and environmental groups, the Legislature passed major support for a local, sustainable solar industry in Washington. This bill provides clear incentives and rules to put renewable energy systems on homes and businesses and in communities. This is a great step forward in continuing Washington’s solar industry leadership and supporting family-wage jobs and extending the incentive program into the future.”

With steps forward, the package of bills approved alongside the state budget also included several steps back, including a new tax loophole for manufacturers. Business-and-occupation (B&O) tax rates for manufacturers will be reduced 40 percent over four years, starting in 2019, according to the Seattle Times.

“By 2022, manufacturers will be taxed at the lower rate that lawmakers gave to Boeing and other aerospace companies in 2003 and later extended as part of a record-setting $8.7 billion tax-break package,” the Times reported.

The last-minute insertion was intended to bolster a weakened and dwindling segment of the state economy, its rural manufacturing base, but sends a terrible message to the many thousands of property owners in Western Washington who will see their taxes rise.

Like much of the midnight budget, details of the tax-break plan—such as the text of the tax amendment and the official estimate of its financial impact—were not available to the public or even most lawmakers until shortly before a final vote.

“It’s unacceptable that lawmakers neglected to apply any of the standard transparency and accountability provisions applied to other recently enacted tax breaks to this tax break,” analysts at the Washington State Budget & Policy Center said in a statement.

“Legislative leaders have agreed to a spending plan to fund state services for the next two years—and as such, they may avoid a state shutdown—but they have left a lot of important work undone,” Misha Werschkul, executive director of the Washington State Budget & Policy Center, said. “Notably, lawmakers have passed up an historic opportunity to address our state’s broken tax code, and instead have relied too much on unsustainable fund transfers and budget gimmicks that will threaten the economic strength of the state in the future. The budget deal includes some investments in critical programs, but it falls short of meaningfully strengthening many of the state’s most important long-term investments.”

Smoking Crow
Past Columns
Symptoms of Pain

April 25, 2018

A Last Ditch Effort

April 18, 2018

Much ADUs About Nothing

April 11, 2018

The Sin of Sinclair

April 4, 2018

All Thumbs on the Scale

March 28, 2018

The Boundaries Between Us

March 21, 2018

Dirty Deeds

March 7, 2018

Sunshine Storm

February 28, 2018

A Public Education

February 21, 2018

Power Play

February 14, 2018

Neutral Ground

February 7, 2018

The Nature of the Emergency

January 31, 2018

‘Fix’ fumbled, punted

January 24, 2018

New Energy

January 17, 2018

Save Our Salish Sea

January 10, 2018

Predictions of Protractions

January 3, 2018

Parsing the Puzzle

December 27, 2017

Camp Kelli

December 20, 2017

Gifts of the Three Magi

December 13, 2017

Events
Today
Skagit Valley Tulip Festival

10:00am|Skagit Valley

Free Appliance Pick-up

10:00am|Whatcom County

Bellingham Beer Week

10:00am|Throughout Bellingham

The Lewis & Clark Expedition

10:00am|Mount Baker Theatre

English Country Dancing

1:30pm|Bellingham Senior Activity Center

Mt. Baker Plant Sale

3:00pm|Mt. Baker High School

Jazz Jam

5:30pm|Illuminati Brewing

Pub Run

6:00pm|BBay Running

Canadian Exploration

6:30pm|Mount Vernon City Library

Mexican Kitchen

6:30pm|Community Food Co-op

Balkan Folk Dancers

7:00pm|Fairhaven Library

Get Gritty

7:00pm|Fairhaven Runners

9 to 5, the Musical

7:30pm|Anacortes Community Theatre

Misty Flowers

7:30pm|Chuckanut Center

Village Books
Tomorrow
Skagit Valley Tulip Festival

10:00am|Skagit Valley

Free Appliance Pick-up

10:00am|Whatcom County

Bellingham Beer Week

10:00am|Throughout Bellingham

Mt. Baker Plant Sale

3:00pm|Mt. Baker High School

9 to 5, the Musical

7:30pm|Anacortes Community Theatre

Wild Things

9:30am|Stimpson Family Nature Reserve

Book and Bake Sale

10:00am|Deming Library

Valley Writers

1:00pm|South Whatcom Library

Coffee Tasting

3:00pm|Camber Cafe

Food Not Bombs

4:00pm|Downtown Bellingham

Fourth Friday Art Walk

5:00pm|Historic Fairhaven

Ship of Fools Closing Reception

5:00pm|Cooper Lanza Gallery

Inspire Higher Dreams Gala

5:30pm|Silver Reef Event Center

Always...Patsy Cline

7:00pm|Conway Muse

Wilderness and Wellness

7:00pm|Village Books

Cantabile Chamber Choir

7:30pm

Skagit Community Band

7:30pm|Maple Hall

The Kid

7:30pm|Lincoln Theatre

Friday Night Flicks

7:30pm|Van Zandt Community Hall

Legends and Brawls

8:00pm|Upfront Theatre

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Saturday
Skagit Valley Tulip Festival

10:00am|Skagit Valley

Free Appliance Pick-up

10:00am|Whatcom County

Bellingham Beer Week

10:00am|Throughout Bellingham

Mt. Baker Plant Sale

3:00pm|Mt. Baker High School

9 to 5, the Musical

7:30pm|Anacortes Community Theatre

Book and Bake Sale

10:00am|Deming Library

Always...Patsy Cline

7:00pm|Conway Muse

Skagit Community Band

7:30pm|Maple Hall

Cantabile Chamber Choir

7:30pm

Legends and Brawls

8:00pm|Upfront Theatre

Ferndale Breakfast

8:00am|American Legion Hall Post #154

Have a Heart Run

9:00am|Edgewater Park

Senior Center Plant Sale

9:00am|Bellingham Senior Activity Center

Hydrangeas 101

9:00am|Garden Spot Nursery

Linuxfest Northwest

9:00am|Bellingham Technical College

Everson Garden Club Plant Sale

9:00am|Everson-Goshen Rd.

Independent Bookstore Day

9:00am|Village Books

Backyard Habitat and Native Flora Fair

10:00am|Fairhaven Village Green

Bellingham Farmers Market

10:00am|Depot Market Square

Vaisaikhi Day Celebration

10:00am|Guru Nanak Gursikh Gurdwara

Sudden Valley Garden Club Sale

10:00am|Sudden Valley Dance Barn

Correspondence Club

10:30am|Mindport Exhibits

Sculpture Tours

10:30am|Big Rock Garden Park

Growing Dry Beans and Grains

1:00pm|Chuckanut Center

Panel discusses oil sands pipeline

3:00pm

Klee Wyck Journal

4:00pm|Village Books

Visions of the Soul Opening

5:00pm|Forum Arts

Spring Has Sprung Opening Party

5:00pm|Matzke Fine Art Gallery and Sculpture Park

Naomi Shihab Nye

7:00pm|Performing Arts Center

Moon Walk

7:00pm|Whatcom County

Contra Dance with Incognito

7:00pm|Fairhaven Library

Dylan Foley and Eamon O'Leary

7:00pm|Littlefield Celtic Center

Skagit Symphony Classics Concert

7:30pm|McIntyre Hall

Paula Poundstone

8:00pm|Lincoln Theatre

see our complete calendar »

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