With a month to go in this 105-day legislative session, the state Senate passed a $43 billion two-year budget proposal (SB 5048) in the early morning hours on Friday, March 24, along with several bills necessary to implement it.
Technically, the bill is recorded as passing on Thursday, March 23. Shortly after passing the budget, Sen. Joe Fain (R-Auburn), the Senate Majority Floor Leader, moved to bring the capital gains excise tax bill (SB 5111) to a vote, but the motion, which required a two-thirds vote, failed after Senate Democrats objected to it.
Senate Bill 5048, Making 2017-19 fiscal biennium operating appropriations
Passed the Senate on March 23 by a vote of 25-24
This is the two-year state operating budget proposed by the Republican-led Majority Coalition Caucus, creating a $43 billion spending plan that earmarks $21.9 billion for K-12 schools. It is the first time since 1993 that more than half the state’s budget would be allocated to education spending. If passed by both houses of the Legislature and signed by the governor, the bill would take effect immediately. However, part of the funding for the plan is contingent on SB 5875, to replace local school levies with a statewide property tax levy for education, which contains a referendum clause requiring voter approval at the November 2017 state general election. House Democrats are expected to release their version of the budget early next week, setting the stage for extensive negotiations in the remaining month of this regular session.
Sen. Kevin Van De Wege (D-Sequim) No
Senate Bill 5111, Enacting an excise tax on capital gains to provide for education funding
Motion to advance to final passage. Two-thirds vote (33) of the Senate required to pass. Failed on March 23 by a vote of 25-7 (17 members absent)
This bill would enact a tax on individuals for the privilege of selling or exchanging capital assets. The tax is equal to 7.9 percent multiplied by a person’s Washington capital gains for each taxable year. A $25,000 threshold exemption would be allowed for individuals or $50,000 for those filing joint returns. The tax is part of Gov. Jay Inslee’s budget proposal for expanding state basic education funding. The roll call recorded here is on the motion to bring the bill to a vote by the whole Senate. A prior motion by Senate Democratic leadership to excuse members from the vote was rejected, resulting in members not voting and being listed as absent.
Sen. Van De Wege (no vote)
Senate Bill 5875, Relating to education
Passed the Senate on March 23 by a vote of 25-24
This bill modifies elements of SB 5607, which passed the Senate earlier this session to replace the state’s school funding model with a new allocation method that is based on a flat per-pupil allocation of dollars and creates the state “Local Effort Levy,” a new regular state property tax that is deposited in the Education Legacy Trust Account. SB 5875 would lower the maximum local effort levy rate from $1.80 to $1.55 per $1,000 of assessed property valuation and guarantee local taxing districts full reimbursement for any negative fiscal impacts to their levy authority due to the local effort levy. It also would disallow a reduction in per pupil amounts when there is negative inflation. The bill contains a referendum clause requiring voter approval at the November 2017 state general election.
Sen. Van De Wege No
Senate Bill 5898, Concerning eligibility for public assistance programs
Passed the Senate on March 23 by a vote of 25-24
This bill deals with work activity and eligibility requirements for the WorkFirst temporary assistance for needy families program.
It allows persons to receive Aged, Blind or Disabled assistance benefits pending application for federal Supplemental Security Income for up to 36 months. Applicants for the Temporary Assistance for Needy Families program would be required to demonstrate that a job search has been conducted prior to applying for assistance.
The bill would establish that individuals who experience a non-temporary change in their status as working or attending a job training or education program under the Working Connections Child Care program must be discontinued from the program after a minimum of three months.
This program pays part of the cost of childcare when a parent is employed, self-employed or meets the requirements for Temporary Assistance for Needy Families or WorkFirst programs.
Sen. Van De Wege No
Senate Bill 5033, Concerning financing essential public infrastructure
Passed the Senate on March 23 by a vote of 26-23
This bill would improve access to and reliability of low-cost financing for local government infrastructure projects by authorizing public works bonds. It would permit the state to issue bonds for local infrastructure projects pooled by the Public Works Board. This debt would enjoy the full faith and credit of the state, but would not be subject to the state constitutional debt limit if the constitutional amendment SJR 8201, allowing the state to guarantee debt issued to local governments for infrastructure projects is passed by the legislature and adopted by voters this fall. If SJR 8201 is not adopted, the bill would authorize the WA State Housing Finance Commission to offer an infrastructure borrowing program.
Sen. Van De Wege No
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