Gov. Jay Inslee called last week’s late-breaking budget deal a win for Washington with a “sub-optimal” taxing structure.
Speaking to some members of The Columbian’s Editorial Board on Friday, Inslee called the 2017-2019 biennial budget “historic.” The $43.7 budget goes above and beyond the 2012 McCleary ruling that the state was failing to fund kindergarten through 12th-grade education, the Democratic governor said.
“This is the first time in three decades where the state has met its Constitutional obligation.”
However, he said, the revenue streams for that budget come at the expense of all families in Washington due to the levy swap devised to fund the increases. Under the approved plan, the state property tax used to fund schools will increase 43.6 percent to $2.70 per $1,000 in assessed valuation. Beginning in 2019, local maintenance and operation levies collected by the state’s school districts will be lowered and capped.
It’s a taxing model supported by Republican lawmakers, who tout projected tax decreases in rural communities. But in property-rich districts, including most Clark County districts, homeowners will see a property tax increase over the course of the next four years.
Inslee, who advocated for new taxes on capital gains and carbon emissions to cover the McCleary costs, said the taxing structure will disproportionately affect working-class families.
“They consider that a victory,” Inslee said of Republican lawmakers. “They may not in the next election.”
Inslee also criticized the political infighting that slowed the budget process. Lawmakers, who were in contempt of court and facing a $100,000-a-day fine while McCleary went unresolved, negotiated the budget deal in secret until June 29, approving the budget the next day. The state government was slated to shut down at midnight in that final day of a third special session.
“The frustration is huge,” said Inslee, who signed the budget deal just before midnight June 30.
Nonetheless, Inslee described the budget as a policy victory that fully funded education without damaging other state programs, while providing funding for additional programs like career and technical training beyond the McCleary requirements.
“People are going to look back and think this is a good budget,” he said.
The state has until the end of the month to submit a review of the budget explaining how it meets the McCleary decision. It’s unclear how long it could take for the Supreme Court to issue a decision.
