House Democrats unveiled their 2015-17 operating budget plan on Friday in Olympia \u2013 a budget that will add $3.2 billion in additional K-12 investments over the next two years compared to the 2013-15 budget.<\/p>\n<\/p>\n
The proposal is the first budget on the table that puts the state in full compliance with the Supreme Court\u2019s McCleary ruling, which mandates the state adequately fund basic education by 2018, according to a House Democrats media release.<\/p>\n<\/p>\n
\u201cAfter seven years of cuts totaling more than $12 billion, we have to take an honest look at the state of our state,\u201d said House Majority Leader Rep. Pat Sullivan, D-Covington. \u201cWe have to ask: \u2018Is this really what we want?\u2019 This budget is a stand against mediocrity. Just being \u2018Okay\u2019 is not acceptable.\u201d<\/p>\n<\/p>\n
\u201cThis budget keeps our promises to Washington\u2019s one million kids,\u201d said Rep. Ross Hunter, D-Medina, the House Appropriations chairman. \u201cWe\u2019re making the biggest investment in student success, mental health, and middle-class families that our state has seen in decades. It\u2019s a responsible budget that meets the needs of our state and balances over four years.\u201d<\/p>\n<\/p>\n
The operating budget, House Bill 1106, is scheduled for a public hearing in Olympia on Monday, March 30 at 1:30 p.m.<\/p>\n<\/p>\n
Highlights included in the budget proposal:<\/p>\n<\/p>\n
\u2022 $3.2 billion \u2013 Additional K-12 spending, a 21% increase in funding over last biennium<\/p>\n<\/p>\n
\u2022 $1.4 billion in K-12 policy adds that will count towards that state\u2019s McCleary obligation including:<\/p>\n<\/p>\n
\u2022 K-3 class size reduction<\/p>\n<\/p>\n
\u2022 Full funding for all-day kindergarten for every child in the state<\/p>\n<\/p>\n
\u2022 Materials, supplies and operating costs<\/p>\n<\/p>\n
\u2022 Supports to prepare students for college and careers<\/p>\n<\/p>\n
The remaining $1.8 billion investment pays for the policy decisions made towards fully funding education in the 2013-15 budget.<\/p>\n<\/p>\n
\u2022 $385 million \u2013 Restore cost-of-living adjustments for school employees.<\/p>\n<\/p>\n
\u2022 $227 million \u2013 Expansion of quality early learning and childhood education.<\/p>\n<\/p>\n
\u2022 $256 million \u2013 Investments in higher education including two years of tuition freezes, student financial aid, and high-demand, high-salary degrees.<\/p>\n<\/p>\n
\u2022 $100 million \u2013 New mental health capacity to ensure that people get the help they need in their time of crisis.<\/p>\n<\/p>\n
\u2022 $9.6 million \u2013 Restore previous cuts to the state\u2019s Food Assistance program that feeds hungry children, families, and seniors in the state.<\/p>\n<\/p>\n
As a result of an unfair and outdated tax structure, state revenues are becoming increasingly inadequate to pay for essential state services like basic education, health care, and prisons. The state doesn\u2019t have adequate resources despite a growing economy. After seven years and $12 billion in budget cuts stemming from the Great Recession, many lawmakers believe now is time to act on revenue reform.<\/p>\n<\/p>\n
\u201cWe have the most unfair tax structure in the nation,\u201d said Rep. Reuven Carlyle (D-Seattle), House Finance committee chair. \u201cOur tax system hurts working families, the middle class, and small businesses, while the wealthiest individuals and corporations don\u2019t pay their fair share. It\u2019s time to build fairness in the system so that we can make critical investments in our state\u2019s economy.\u201d<\/p>\n<\/p>\n
The budget proposal includes a revenue package that takes a step toward restoring fairness in the system and generates the revenue needed to pay for essential state services. Those proposals include:<\/p>\n<\/p>\n
\u2022 Ask the wealthy to pay their fair share by imposing a 5% excise tax on capital gains profits.<\/p>\n<\/p>\n
\u2022 Revenues from the capital gains tax would go into a new \u201cStudent Investment Fund\u201d to be used for K-12 and higher education investments.<\/p>\n<\/p>\n
\u2022 Reinstate the increase on the B&O service tax rate by .3%. A similar policy was enacted temporarily during the Great Recession.<\/p>\n<\/p>\n
\u2022 The proposal also increases the Small Business B&O Tax Credit for service businesses by nearly double, eliminating B&O tax for an additional 15,000 businesses each year. Services businesses making up to $100,000 in taxable income would pay no B&O taxes at all.<\/p>\n<\/p>\n
\u2022 Bring fairness to our home-grown online retailers by taxing transactions from out-of-state online retailers.<\/p>\n<\/p>\n
\u2022 Repeal and narrow seven of the 650 tax exemptions that have proven to be outdated, costly, and inefficient.<\/p>\n<\/p>\n
The total amount of revenue raised though this proposal is $1.5 billion.<\/p>\n<\/p>\n