Yes, it's 9:30 Saturday night here at the Capital, and the House Ways and Means committee just finished their 12th straight hour of work -- and they aren't done yet. Twenty-three Senate bills have received a public hearing, and now tired members are working their way through a list of nearly 30 bills up for executive action (which means amending and voting them out of committee.)
Twenty-two hearty members sit on the Ways and Means committee, most of them chairs or ranking members of other committees. Hard to believe on a day like this, but an assignment to "Ways," as it is affectionately called, is highly-coveted by folks on both sides of the aisle.
After all, that's where the money decisions are made!
Saturday, February 27, 2010
Friday, February 26, 2010
Is ending a tax exemption the same as raising taxes?
Though the Democrats on our side of the capitol sundial have yet to roll out our revenue plan, the Senate Dems and Governor Gregoire have rolled out theirs and both suggest we can save money by ending certain tax exemptions.
Here in the House, the Finance Committee heard a bill last week that included a few of those exemptions so the idea is likely to stick to some extent.
Let's say you put a tax in place - a sales tax on automobiles, for example - and then, over the years, begin to "exempt" some people from paying that tax. As time goes by, the list of folks who no longer have to pay the tax can get pretty long.
So if someone decides the exemption is no longer needed - as some said of the sales tax exemption initially introduced to motivate people to buy now-popular-with-or-without-a-tax-incentive hybrid vehicles - is that the same as raising taxes? Or is it simply reclaiming the money the state basically gives away to folks who buy a hybrid vehicle?
From reporter Austin Jenkin's blog:
There are more than 560 exemptions on the books today, that add up to nearly $100 billion worth of uncollected revenue. Many of these exemptions were created, and will remain in place, for very good reasons. But, really, is it accurate to say that ending any of these exemptions is the same as raising taxes?
Think of it this way - You pay your kid a $10 per week allowance. Summer break comes around and you offer an extra $5 per week to mow the lawn once a week. Would you let him complain that you cut his allowance once school started up again and it was back to $10 per week?
We'll hear a lot more about this as legislators wrangle over how to fill the final $2.8 billion of a $12 billion shortfall for this biennium. But for now, we'll point out we're not the only ones who see value in sometimes taking a fresh look at exemptions and ending them when they are no longer needed or effective.
Here in the House, the Finance Committee heard a bill last week that included a few of those exemptions so the idea is likely to stick to some extent.
Let's say you put a tax in place - a sales tax on automobiles, for example - and then, over the years, begin to "exempt" some people from paying that tax. As time goes by, the list of folks who no longer have to pay the tax can get pretty long.
So if someone decides the exemption is no longer needed - as some said of the sales tax exemption initially introduced to motivate people to buy now-popular-with-or-without-a-tax-incentive hybrid vehicles - is that the same as raising taxes? Or is it simply reclaiming the money the state basically gives away to folks who buy a hybrid vehicle?
From reporter Austin Jenkin's blog:
Here's what Senator Joe Zarelli, the ranking Republican on the Senate budget committee, says on the subject:So does that mean ending the real estate excise tax break for banks that sell a property in foreclosure is a tax increase? Or is it reclaiming tax dollars that, in all actuality, the banks could have been paying all along AND that most other property owners have to pay? Is it a tax increase, or is it a way of making sure there isn't an unintended incentive for banks to foreclose a property to avoid paying REET?
"The majority uses words like 'loopholes' and 'hidden' to denigrate tax incentives that were approved by the Legislature through an open process ... The majority can disagree all it wants, but there is no question that ending a tax incentive is the same as raising a tax."
There are more than 560 exemptions on the books today, that add up to nearly $100 billion worth of uncollected revenue. Many of these exemptions were created, and will remain in place, for very good reasons. But, really, is it accurate to say that ending any of these exemptions is the same as raising taxes?
Think of it this way - You pay your kid a $10 per week allowance. Summer break comes around and you offer an extra $5 per week to mow the lawn once a week. Would you let him complain that you cut his allowance once school started up again and it was back to $10 per week?
We'll hear a lot more about this as legislators wrangle over how to fill the final $2.8 billion of a $12 billion shortfall for this biennium. But for now, we'll point out we're not the only ones who see value in sometimes taking a fresh look at exemptions and ending them when they are no longer needed or effective.
Today's hot list
This morning, enviros will want to tune in to the hearing on the polluter's tax. This afternoon, Ways & Means will continue budget talks.
8:30 HHR C Finance
SHB 3181 - Concerning the clean water act of 2010 funding cleanup of water pollution and other programs necessary for the health and well-being of Washington citizens through an increase in the tax on hazardous substances.
10:00 Floor
1:30 HHR A Ways & Means
Possible Executive Session: HB 2824 - Making 2010 operating supplemental appropriations.
8:30 HHR C Finance
SHB 3181 - Concerning the clean water act of 2010 funding cleanup of water pollution and other programs necessary for the health and well-being of Washington citizens through an increase in the tax on hazardous substances.
10:00 Floor
1:30 HHR A Ways & Means
Possible Executive Session: HB 2824 - Making 2010 operating supplemental appropriations.
Thursday, February 25, 2010
Speaking of the people's will...
In 1998, Washington voters passed I-688 by 66 percent. The initiative established a state minimum wage for almost all employees, with a provision that allows for annual adjustments in that minimum wage based on the Consumer Price Index.
As with all initiatives, the Legislature couldn't change it for two years without a 2/3 vote. But after that...
In 2001, a legislator introduced a bill to exempt trainees and minors from the law.
In 2003, a legislator introduced a bill to essentially suspend the initiative and allow federal definitions to control our state minimum wage law.
In 2004, a legislator introduced a bill to prohibit local minimum wages.
In 2009, a legislator introduced a bill to freeze the minimum wage.
All those legislators, by the way, were Republicans.
Or we can look at I-937, the clean-energy initiative passed in 2006 with 52 percent of the vote.
This year there were two bills introduced to recognize hydroelectric generation as a "renewable" energy, even though the initiative expressly did not include that source in its definition of renewable energy sources.
Those bills were both introduced by a Republican.
And we all know that the Legislature, with support from legislators on both sides of the aisles, has had to suspend I-728 and I-732, two education initiatives that passed in 2000 with nearly 72 percent and 63 percent respectively.
There are more examples, but you get the picture. This isn't about picking on anyone or any party. But when we talk about the will of the people and whether initiatives are or are not more sacred than any other legislation passed by the Legislature, let's be clear that members of both parties feel the need to make changes or suspend these measures from time to time. There are many good reasons in many cases. There are not-so-good reasons in others.
But for a legislator to act indignant about thwarting the will of the people is somewhat disingenuous when that same legislator has in fact introduced legislation that would, well, "thwart the will of the people."
As with all initiatives, the Legislature couldn't change it for two years without a 2/3 vote. But after that...
In 2001, a legislator introduced a bill to exempt trainees and minors from the law.
In 2003, a legislator introduced a bill to essentially suspend the initiative and allow federal definitions to control our state minimum wage law.
In 2004, a legislator introduced a bill to prohibit local minimum wages.
In 2009, a legislator introduced a bill to freeze the minimum wage.
All those legislators, by the way, were Republicans.
Or we can look at I-937, the clean-energy initiative passed in 2006 with 52 percent of the vote.
This year there were two bills introduced to recognize hydroelectric generation as a "renewable" energy, even though the initiative expressly did not include that source in its definition of renewable energy sources.
Those bills were both introduced by a Republican.
And we all know that the Legislature, with support from legislators on both sides of the aisles, has had to suspend I-728 and I-732, two education initiatives that passed in 2000 with nearly 72 percent and 63 percent respectively.
There are more examples, but you get the picture. This isn't about picking on anyone or any party. But when we talk about the will of the people and whether initiatives are or are not more sacred than any other legislation passed by the Legislature, let's be clear that members of both parties feel the need to make changes or suspend these measures from time to time. There are many good reasons in many cases. There are not-so-good reasons in others.
But for a legislator to act indignant about thwarting the will of the people is somewhat disingenuous when that same legislator has in fact introduced legislation that would, well, "thwart the will of the people."
Join Speaker Pro Tem Jeff Morris' Virtual Town Hall Tonight @ 6:20pm
We're liveblogging Speaker Pro Tem Jeff Morris' tele-town hall tonight at 6:20pm. Take part, listen in, ask questions, post comments, and find out what he has to say about the 2010 state budget and legislative session. Rep. Morris will discuss the state of the Washington Ferry System, creating jobs, his priorities for the 2010 state budget and its impact on local communities.
You can also phone in directly between 6:20-7:20 p.m. by dialing toll-free (877) 229-8493 code: 15559
You can also phone in directly between 6:20-7:20 p.m. by dialing toll-free (877) 229-8493 code: 15559
Today's hot list
In meeting this week's committee cutoff deadline, the General Government and the Health & Human Services Appropriations Committees are meeting at 8, and have time blocked for the entire day.
And about that revenue proposal coming out soon, it probably won't be today. We'll continue to keep you posted.
And about that revenue proposal coming out soon, it probably won't be today. We'll continue to keep you posted.
Wednesday, February 24, 2010
Today's hot list
Budgets, budgets, budgets. The Ways & Means, Transportation and Capital Budget committees convene at 3:30 to discuss and possibly vote on the budget proposals rolled out yesterday.
Today, the House will also roll out a revenue proposal. Time is still to be determined.
At 10, legislators will head to the floor. No major floor action is expected although plans have a way of changing around here. We'll keep you posted.
Today, the House will also roll out a revenue proposal. Time is still to be determined.
At 10, legislators will head to the floor. No major floor action is expected although plans have a way of changing around here. We'll keep you posted.
Tuesday, February 23, 2010
Now presenting the 2010 capital budget proposal
Rep. Hans Dunshee says the 2010 capital budget includes a mini-Jobs Act of $200 million and an extra $100 million for the Housing Trust Fund that – when leveraged with local matching and other funds – will create 19,500 jobs.
“The energy work in schools is a three-to-one match,” Dunshee said, “so you get $800 million in total projects. The housing money gets you an even better match of four-to-one, so there’s $500 million in projects for a total of $1.3 billion. A very conservative estimate is 15 jobs per million in projects of this kind, and that gets you to 19,500 jobs.”
That’s not including the rest of the capital budget.
Dunshee’s proposal includes more than $200 million in savings due to lower construction costs and projects not being built. Otherwise, the local projects from the 2009-10 budget are funded.
“But if we don’t get new revenue for the operating budget, the capital budget gets cut $800 million,” Dunshee said. “If that happens, we go around the state stopping construction projects.”
“The energy work in schools is a three-to-one match,” Dunshee said, “so you get $800 million in total projects. The housing money gets you an even better match of four-to-one, so there’s $500 million in projects for a total of $1.3 billion. A very conservative estimate is 15 jobs per million in projects of this kind, and that gets you to 19,500 jobs.”
That’s not including the rest of the capital budget.
Dunshee’s proposal includes more than $200 million in savings due to lower construction costs and projects not being built. Otherwise, the local projects from the 2009-10 budget are funded.
“But if we don’t get new revenue for the operating budget, the capital budget gets cut $800 million,” Dunshee said. “If that happens, we go around the state stopping construction projects.”
House unveils largest transportation plan on record
The $7.5 billion biennial transportation budget enacted last year is the largest on record. And it’s getting larger—to the tune of about $1 billion more, thanks mostly to an influx of federal economic recovery funds received over the past year. Reps. Judy Clibborn (Mercer Island) and Marko Liias (Edmonds), chair and vice chair, respectively, of the House Transportation Committee, just finished unveiling the 2010 supplemental budget plan and answering reporters’ questions.The bulk of that increase is $590 million to bolster high-speed rail service along the I-5 corridor. On top of that, the North Spokane Corridor will get $35 million in new grant money, and Seattle’s Mercer Street project will see $30 million. Both projects were deemed critical to regional economic competitiveness. Other new money will go toward various highway projects, emergency projects (such as the October SR 410 Nile Valley landslide), the ferry system and more.
The additional funding is expected to generate 3,000 new jobs for construction workers and contracting businesses across the state.
Although the transportation revenue projection dipped since last year by $121 million, the underlying biennial plan is still in good shape because of today’s favorable construction-bidding environment and low interest rates. Over the first six months of this biennium, for example, bids came in about 24 percent lower than engineers’ original cost estimates.
More information is available here.
Rolling out the budgets
Budget day in the House started off with a 12:15 press conference on the 2010 supplemental operating budget.In dealing with a $2.7 billion budget gap for the remaining half of the 2009-2011 biennium, the House proposal outlines $465 million in fund transfers including use of the Rainy Day Fund, $1.25 billion in reductions, and $857 million in anticipated new revenue.
Additional details can be found here, here and here.
A revenue package is expected to come out later this week.
Coming up later: the proposed supplemental Capital and Transportation budgets. Stay tuned...!
The HDC's 2010 Budget Proposal
Here's the sneak peek at the HDC Budget Proposal Rollout, beginning at 12:15pm today.
Washington State House Democratic Caucus 2010 Budget Rollout -
Washington State House Democratic Caucus 2010 Budget Rollout -
Today's hot list
Today, the House will roll out its supplemental budget proposals for the operating, capital and transportation budgets. All three proposals are up for a public hearing tonight at 6.
Also on today's schedule:
8:00 HHR C General Government Appropriations
Public Hearing:
SSB 6341 – Transferring food assistance programs to the department of agriculture.
SB 6540 – Transferring the combined fund drive from the department of personnel to the secretary of state.
10:00 HHR E Public Safety & Emergency Preparedness
Public Hearing:
SB 5582 – Concerning the chief for a day program.
SB 6308 – Controlling computer access by residents of the special commitment center.
SSB 6202 – Expanding provisions related to vulnerable adults.
SSB 6590 – Stating the policy that law enforcement personnel be truthful and honest in the conduct of official business.
SSB 6673 – Appointing a task force to study bail practices and procedures.
10:00 HHR D Higher Education
Public Hearing: E2SSB 6562 – Regarding higher education accountability and access (this is the major tuition bill of the session).
10:00 HHR A Education
Work Session: Issues related to nationally board certificated Educational Staff Associates.
10:00 HHR B Commerce & Labor
Public Hearing: SSB 6329 – Creating a beer and wine tasting endorsement to the liquor license.
1:30 HHR D State Government & Tribal Affairs
Public Hearing: ESB 6754 – Making the names and addresses of persons signing initiative or referendum petitions public record.
12:15 HHR A Supplemental Operating Budget rollout for reporters and public
1:00 Supplemental Transportation Budget briefing for reporters
1:30 Supplemental Capital Budget Q&A for reporters
1:30 HHR A Health Care & Wellness
Executive Session:
SSB 5798 – Concerning medical marijuana.
SSB 6273 – Regarding insurance coverage of the sales tax for prescribed durable medical equipment and mobility enhancing equipment.
SB 6627 – Authorizing Washington pharmacies to fill prescriptions written by advanced registered nurse practitioners in other states or in certain provinces of Canada.
SB 6263 – Washington vaccine association
SSCR 8409 – Forming a joint select committee on health reform implementation.
6:00 HHR C Capital Budget
Public Hearing: HB 2836 – Concerning the capital budget
6:00 HHR B Transportation
Public Hearing: HB 2838 – Making 2009-11 supplemental transportation appropriations.
6:00 HHR A Ways & Means
Public Hearing: HB 2824 – Making 2010 operating supplemental appropriations. This hearing is on the proposed substitute bill by Representative Linville.
Also on today's schedule:
8:00 HHR C General Government Appropriations
Public Hearing:
SSB 6341 – Transferring food assistance programs to the department of agriculture.
SB 6540 – Transferring the combined fund drive from the department of personnel to the secretary of state.
10:00 HHR E Public Safety & Emergency Preparedness
Public Hearing:
SB 5582 – Concerning the chief for a day program.
SB 6308 – Controlling computer access by residents of the special commitment center.
SSB 6202 – Expanding provisions related to vulnerable adults.
SSB 6590 – Stating the policy that law enforcement personnel be truthful and honest in the conduct of official business.
SSB 6673 – Appointing a task force to study bail practices and procedures.
10:00 HHR D Higher Education
Public Hearing: E2SSB 6562 – Regarding higher education accountability and access (this is the major tuition bill of the session).
10:00 HHR A Education
Work Session: Issues related to nationally board certificated Educational Staff Associates.
10:00 HHR B Commerce & Labor
Public Hearing: SSB 6329 – Creating a beer and wine tasting endorsement to the liquor license.
1:30 HHR D State Government & Tribal Affairs
Public Hearing: ESB 6754 – Making the names and addresses of persons signing initiative or referendum petitions public record.
12:15 HHR A Supplemental Operating Budget rollout for reporters and public
1:00 Supplemental Transportation Budget briefing for reporters
1:30 Supplemental Capital Budget Q&A for reporters
1:30 HHR A Health Care & Wellness
Executive Session:
SSB 5798 – Concerning medical marijuana.
SSB 6273 – Regarding insurance coverage of the sales tax for prescribed durable medical equipment and mobility enhancing equipment.
SB 6627 – Authorizing Washington pharmacies to fill prescriptions written by advanced registered nurse practitioners in other states or in certain provinces of Canada.
SB 6263 – Washington vaccine association
SSCR 8409 – Forming a joint select committee on health reform implementation.
6:00 HHR C Capital Budget
Public Hearing: HB 2836 – Concerning the capital budget
6:00 HHR B Transportation
Public Hearing: HB 2838 – Making 2009-11 supplemental transportation appropriations.
6:00 HHR A Ways & Means
Public Hearing: HB 2824 – Making 2010 operating supplemental appropriations. This hearing is on the proposed substitute bill by Representative Linville.
Monday, February 22, 2010
This week's hot list
The big news this week will be the budget rollouts from both the House and the Senate. Legislators will also be working hard in House committees to pass Senate bills before Friday's cutoff.
Monday 2/22
1:30 HHR D Human Services
Executive Session:
SB 6316 – Law enforcement and corrections (related to Clemmons case)
SB 6548 – Suspending parole (related to Clemmons case)
ESB 6610 – Relating to oversight and release of people found not guilty by reason of insanity (Paul case)
3:30 HHR B Transportation
Public Hearing: ESSB 6392 – Clarifying the use of revenue generated from tolling the state route 520 corridor.
Tuesday 2/23
8:00 HHR C General Government Appropriations
Public Hearing:
SSB 6341 – Transferring food assistance programs to the department of agriculture.
SB 6540 – Transferring the combined fund drive from the department of personnel to the secretary of state.
10:00 HHR E Public Safety & Emergency Preparedness
Public Hearing:
SB 5582 – Concerning the chief for a day program.
SB 6308 – Controlling computer access by residents of the special commitment center.
SSB 6202 – Expanding provisions related to vulnerable adults.
SSB 6590 – Stating the policy that law enforcement personnel be truthful and honest in the conduct of official business.
SSB 6673 – Appointing a task force to study bail practices and procedures.
10:00 HHR D Higher Education
Public Hearing: E2SSB 6562 – Regarding higher education accountability and access (this is the major tuition bill of the session).
10:00 HHR A Education
Work Session: Issues related to nationally board certificated Educational Staff Associates.
10:00 HHR B Commerce & Labor
Public Hearing: SSB 6329 – Creating a beer and wine tasting endorsement to the liquor license.
1:00 HHR D State Government & Tribal Affairs
Public Hearing: ESB 6754 – Making the names and addresses of persons signing initiative or referendum petitions public record.
1:30 HHR A Health Care & Wellness
Executive Session:
SSB 5798 – Concerning medical marijuana.
SSB 6273 – Regarding insurance coverage of the sales tax for prescribed durable medical equipment and mobility enhancing equipment.
SB 6627 – Authorizing Washington pharmacies to fill prescriptions written by advanced registered nurse practitioners in other states or in certain provinces of Canada.
SB 6263 – Washington vaccine association
SSCR 8409 – Forming a joint select committee on health reform implementation.
6:00 HHR C Capital Budget
Public Hearing: HB 2836 – Concerning the capital budget
6:00 HHR B Transportation
Public Hearing: HB 2838 – Making 2009-11 supplemental transportation appropriations.
6:00 HHR A Ways & Means
Public Hearing: HB 2824 – Making 2010 operating supplemental appropriations. This hearing is on the proposed substitute bill by Representative Linville.
Monday 2/22
1:30 HHR D Human Services
Executive Session:
SB 6316 – Law enforcement and corrections (related to Clemmons case)
SB 6548 – Suspending parole (related to Clemmons case)
ESB 6610 – Relating to oversight and release of people found not guilty by reason of insanity (Paul case)
3:30 HHR B Transportation
Public Hearing: ESSB 6392 – Clarifying the use of revenue generated from tolling the state route 520 corridor.
Tuesday 2/23
8:00 HHR C General Government Appropriations
Public Hearing:
SSB 6341 – Transferring food assistance programs to the department of agriculture.
SB 6540 – Transferring the combined fund drive from the department of personnel to the secretary of state.
10:00 HHR E Public Safety & Emergency Preparedness
Public Hearing:
SB 5582 – Concerning the chief for a day program.
SB 6308 – Controlling computer access by residents of the special commitment center.
SSB 6202 – Expanding provisions related to vulnerable adults.
SSB 6590 – Stating the policy that law enforcement personnel be truthful and honest in the conduct of official business.
SSB 6673 – Appointing a task force to study bail practices and procedures.
10:00 HHR D Higher Education
Public Hearing: E2SSB 6562 – Regarding higher education accountability and access (this is the major tuition bill of the session).
10:00 HHR A Education
Work Session: Issues related to nationally board certificated Educational Staff Associates.
10:00 HHR B Commerce & Labor
Public Hearing: SSB 6329 – Creating a beer and wine tasting endorsement to the liquor license.
1:00 HHR D State Government & Tribal Affairs
Public Hearing: ESB 6754 – Making the names and addresses of persons signing initiative or referendum petitions public record.
1:30 HHR A Health Care & Wellness
Executive Session:
SSB 5798 – Concerning medical marijuana.
SSB 6273 – Regarding insurance coverage of the sales tax for prescribed durable medical equipment and mobility enhancing equipment.
SB 6627 – Authorizing Washington pharmacies to fill prescriptions written by advanced registered nurse practitioners in other states or in certain provinces of Canada.
SB 6263 – Washington vaccine association
SSCR 8409 – Forming a joint select committee on health reform implementation.
6:00 HHR C Capital Budget
Public Hearing: HB 2836 – Concerning the capital budget
6:00 HHR B Transportation
Public Hearing: HB 2838 – Making 2009-11 supplemental transportation appropriations.
6:00 HHR A Ways & Means
Public Hearing: HB 2824 – Making 2010 operating supplemental appropriations. This hearing is on the proposed substitute bill by Representative Linville.
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