Dear friends and neighbors,
I continue to grapple with the news of the revenue forecast and special session and their impending impacts on our community. I know the budget and the economy are on your minds too, so much of this update is focused on those issues. I continue to listen to my constituents, work with my colleagues, and ask lots of questions about the decisions that we have on the horizon.
Around the District
Before diving into the budget talk, I have some exciting information to share from the district. First, hearty congratulations to Western Votes who registered 985 voters during their registration drive! Western Votes is a volunteer, student organization at Western working to boost civic engagement on campus.
Next, I was excited to learn that a travelling exhibit from the Burke Museum will be in Anacortes through January 2nd. The exhibit, Cruisin’ the Washington Fossil Freeway, at the Anacortes History Museum is free.
Finally, before heading back to Olympia, I will be travelling throughout the district to meet with you! I want to hear your questions and ideas, so please come when I’m in your area.
Tuesday, October 25, 6:00—Transition Fidalgo & Friends Seventh Generation Supper
Anacortes Senior Center, 1701 22nd Street
Wednesday, October 26, 5:30—Anacortes Education Roundtable
School District Boardroom, Anacortes Middle School 2nd Floor, 2202 M Avenue
Saturday, October 29, 1:00—Orcas Island Mobile Office
Orcas Firehouse, 45 Lavender Lane, Eastsound
Monday, October 31, 11:00-12:30—Burlington Mobile Office
Burlington Library, 820 East Washington Avenue
Wednesday, November 9, 4:00—Friday Harbor Education Roundtable
Friday Harbor Middle School Commons, 85 Blair Avenue
Wednesday, November 2, 1-3—Mt. Vernon Mobile Office
Skagit Democrats Office, 300 A First Street
Monday, November 14, 2-3:30—Bellingham Mobile Office
The Firehouse Café, 1314 Harris Street
Monday, November 21, 11:30-1:30—Bellingham Mobile Office
Whatcom Democrats office, 215 West Holly Street, Suite B-27
I look forward to seeing you at one of these events or around town. And, as always, feel free to contact me to set up a time to chat if none of these options is good for you. Thank you for sharing your questions and ideas with me!
Our trio of state budgets often causes confusion
Trying to track the ins and outs of Washington’s operating, capital, and transportation budgets leaves many feeling confused. I hear from constituents all the time who wonder why there is a big highway project being built at the same time their children’s teachers are facing pay cuts.
It’s important to note that the money to pay for these three budgets comes from different sources, and falls under very different rules and regulations. I’d like to take some time here to review a few brief details about the separate budgets.
Operating budget
The operating budget, the largest one of this financial threesome, is probably what most folks think of when the conversation turns to the “state budget.” Our state-government operations are funded out of this budget. We’re talking everything from education to social services to prisons to parks to natural-resource programs. About 50 cents in every operating-expenditure dollar comes from state sales taxes. Additional revenue for the operating budget comes from business & occupation taxes, and from our state’s share of property taxes.
Capital budget
Funding for our public buildings is in the capital budget, which is also known as the construction budget. While there is some cash in this budget, most of the money comes from the state’s sale of bonds. Capital-budget projects include the construction and repair of public schools and universities, and vital community-infrastructure projects such as water and sewer systems. These projects generate jobs in communities all across Washington. Additionally, nonprofit and community organizations sometimes receive grants through the capital budget to pay for needed construction and renovation projects.
Transportation budget
The transportation budget goes to fund highways, the ferry system, transit, bike and pedestrian projects, as well as most of the Washington State Patrol. It’s financed primarily through the state gas tax that motorists pay at the pump. Our state constitution requires that gas taxes be used only for transportation, so it isn’t possible to use this money for schools, public safety, or other operating budget services.
For more information, you can check out the Office of Financial Management (particularly the Washington State Budget Process link).
The revenue question
I am hearing from many of you that the budget should not be balanced with just cuts; that revenue must be part of a thoughtful solution. In my opinion, nothing should be considered off the table when our state is going through this kind of crisis.
However, raising new revenues or even closing existing tax loopholes is not something that can be done by the legislature without a “supermajority” approval. That’s because in the 2010 election, Washington voters passed Initiative 1053 which said: “… legislative actions raising taxes must be approved by two-thirds legislative majorities or receive voter approval.”
Getting that supermajority is extremely unlikely. Therefore, any efforts to increase revenues will have to be approved by the voters before a single penny can be raised. Sending a proposal to raise revenues and save certain important programs to the ballot will certainly be discussed in the coming weeks and months. But because those revenues can’t be counted until they are approved, an all-cuts budget will still have to be written.
I do hope this information has been helpful and that you will come see me at one of my events around the district!
Regards, Kristine