HomeMy WebLinkAboutReg 2017-01-03 Item 2 - Powerpoint Presentation - 2017 Legislative Preview2017 legislative preview
Agenda
Introduction
Background on Interim Activities and Issues
Legislative Outlook
Governor's Revenue and Budget Proposals
Next Steps
Introduction
Over 20 years of legislative and government relations experience.
Served as staff counsel to the Senate and House Transportation
Committees, the Government Relations Director for the Washington State
Department of Transportation, and Governor Christine Gregoire's
Legislative Director and Transportation Policy Advisor.
Current clients include HNTB Corporation, the cities of Edmonds and
Burien, the Woodland Park Zoo, the Washington State Association of
Counties, the Washington State Patrol Lieutenant's Association, and the
Small and Mid -Size Transit Alliance.
2016 Interim Activities and Issues
• Homelessness, Affordable Housing and Mental Health
• Infrastructure
• i% Property Tax Cap Coalition
• Public Records Stakeholder Group
• Criminal Justice Training Commission (CJTC) Funding Request
• Federal Transportation Funding Distributions
• Model Toxics Control Act Governor's Workgroup
• B &O Licensing Work Group
• Growth Management Act House Local Government Work Sessions
• Use of Deadly Force Task Force
• Body Worn Cameras Task Force
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Legislative Outlook
Continue to have close margins between Republicans and Democrats in
both chambers, as well as new statewide electeds in some positions.
Final biennium to fulfill state funding obligations for basic education.
Most estimates are between $3 and $3.5 billion.
State revenue projections are generally stable marijuana revenues up
sharply.
We will have to play defense on state shared revenues.
Governor's Revenue Proposals
The Governor proposed about $4.4 billion in new tax revenue for the 2017-19 biennium.
The revenue proposal consists of the following new taxes or tax increases:
• Increasing the B &O tax rate on services from 1.5% to 2.5 %, which generates approximately
$2.3 billion in the 17 -19 biennium.
• Implementing a carbon pollution tax of $25 per ton, starting in 2018. The tax would generate
$1.06 billion in the 17-19 biennium, increasing to $1. billion in the i -21 biennium.
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• Imposing a 7.9% capital gains tax on the sale of stocks, bonds and other assets. The tax would
generate $821 million in fiscal year 201 .
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The Governor's proposal also closes or changes five tax exemptions to raise about $300
million in the biennium.
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General Highlights of the Governor's Budget
Proposal
$2.7 billion to local school districts to pay the state share of educator compensation, including a
salary increase for beginning teachers.
The Governor's budget assumes that the increase in state contributions for education would
enable school districts to decrease local school taxes by at least $25o million per year.
$1.1 billion to decrease Kindergarten -3rd Grade class size.
$7o million for early learning, including 2700 new pre- school slots.
Increase financial aid for 14,000 more students and freeze tuition for the next two years at public
colleges and universities.
$12o million for homelessness services, as well as funding for 1700 new affordable housing units.
sio million to consolidate the state's early childhood services into a single state agency.
$99.7 million for 356 new community alternative placement beds for psychiatric patients ready
for discharge, but with long -term care or developmentally disabled needs.
A pay increase of 6% over the next four years for state employees.
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Local Government Items in the Governor's Budget
Proposal
The Governor's Budget includes the following specific provisions related to state shared
revenues:
• Liquor Profits are fully funded at $98.9 million
• Liquor Taxes are fully funded at $56.1 million
• The local share of marijuana revenues is fully funded at $30 million.
• The Municipal Criminal Justice Assistance Account is fully funded at $36.9 million.
• The Fire Insurance Premium Tax is fully funded at $9.9 million.
The budget adds eight additional basic law enforcement academy classes in FY 2017,
four in FY 2018 and four in FY 2019. An additional four classes can be offered in FY 2018
and FY 2019 if local law enforcement agencies agree to pay the full cost.
The Municipal Research and Services Center budget is fully funded.
Transfers all revenues from the Public Works Assistance Account to the Education
Legacy Trust ($253 million).
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Next Steps
2017 Legislative Session starts January 9th
Meet with legislators regarding Tukwila priorities.
Weekly updates on priority issues.