Washington’s three budgets
This past Monday, House Democrats rolled out the proposed operating, capital and transportation budgets, as well as a revenue plan. These budgets reflect our values and our vision for a future that puts people first.
The capital budget, sometimes called the construction budget, is how the state invests in buildings and other long-term assets. The transportation budget is how things like roads, ferries, and bridges are built and maintained, and it also funds our state patrol. Finally, the operating budget is the largest of the three and pays for everything else, including behavioral health, education, social services and many other necessary services.
Operating Budget Highlights
We want to give you some of the highlights in the $52.6 billion 2019-2021 budget, but you can also take a look at the budget documents for more information.
- Significant investments in continued efforts to fix the state behavioral health system, including expanding community behavioral health beds and services.
- Investments in housing programs and services for permanent supportive housing, youth homelessness, and the Housing and Essential Needs Program.
- Educational investments include fulfilling the promise to fund health care coverage for school employees, funding for special education, levy assistance for areas with low-property values, and student mental health and safety.
- The Workforce Education Investment expands access to the Washington College Grant and career pathways programs, as well as apprenticeships. It also increases capacity for high-demand programs such as engineering and nursing.
- Other investments include expanding the Early Childhood Education and Assistance Program slots; eliminating the backlog in testing sexual assault kits; improving salmon habitat and protecting Orcas; increasing our wildfire response and addressing natural disasters; and expanding rural broadband.
Revenue Plan
To fund these needed investments, House Democrats are proposing an Extraordinary Profits Tax (EPT) and a Progressive Real Estate Excise Tax (REET).
- The EPT would apply to the sale of stocks and bonds and other high valued assets where the profits are over $100,000 for a single filer or $200,000 for joint filers. This tax would not apply to retirement accounts, sales of single-family homes, sales of livestock, sales of agricultural and timber lands, or sales of certain qualifying small businesses. So who would pay this tax? Out of the 3.65 million tax filers in our state, fewer than 14,000 would pay this tax.
- The progressive REET structure would result in about 80 percent of Washingtonians paying fewer taxes on the sale of their homes, while 18 percent would see no change and 2 percent would pay a higher rate. In other words, only those selling property valued over $1.5 million would see a tax increase.
Capital Budget Highlights
The House Democratic Capital Budget proposal totals $4.6 billion, with $3.1 billion in projects funded with bond revenue. It makes large investments in every corner of the state, such as $1.1 billion for public schools; $927 million for public colleges and universities; $30 million for rural broadband internet access; $155 million for affordable housing; $463 million to help salmon and orcas; and $117 million for community behavioral health facilities. These projects will help address many of the pressing issues our state is facing, while also putting people to work all over Washington.
There are $5.5 million in new appropriations for projects in the 21st district, including:
- Mukilteo Promenade: Our Downtown Waterfront Master Plan seeks to create a continuous walkway from Lighthouse Park to Edgewater Beach Park, and the capital budget funds the first phase of that promenade.
- Japanese Gulch: Our proposal includes funding for the daylighting and restoration of the Japanese Gulch. The long-term vision of this project will benefit both salmon and the residents in our region.
- Other investments in our area include shorelines improvements at Meadowdale Beach Park, community fields at Civic Park, and behavioral health investments at Community Health of Snohomish County.
Go to the capital projects list by district interactive page for more information. Be sure to select the “House Chair” version, choose the 21st District from the drop-down menu, and then click “View Report.”
Transportation Budget Highlights
The $10 billion transportation budget proposed by House Democrats makes investments to get people where they need to be and get goods shipped around the world. It includes major funding to remove fish-barriers on state roads as part of the broader solution to helping our struggling orca population.
The $83.7 million allotted to the 21st district will continue funding existing projects and start some new ones. Here are a few highlights:
- Public Transportation: Funds improvements for our bussing infrastructure, from preparing for the SWIFT line to connect Bothell and Paine Field, to electrifying buses in Everett. The budget also invests in the ferry systems at both the Mukilteo and Edmonds terminals, including funding continued electrification of our fleet.
- Road Improvements: Continued work on I-405, revitalization of parts of SR-99 in Edmonds, improving access to Lynnwood City Center, and much more.
- Edmonds Waterfront Connector: Full funding for a crossing over the rail lines from downtown Edmonds to the waterfront to ensure safe access for pedestrians, and serve as a more reliable way for emergency vehicles to respond adequately.
For more information on projects in our area, check out the transportation project lists by district interactive page. Be sure to select the “HTC Chair Proposed” version, choose the 21st District from the drop-down menu, and then click “View Report.”
Thank you for reading our update on the proposed House budgets. If you need more information or if you have questions, please contact our offices anytime.
Sincerely,
Rep. Strom Peterson Rep. Lillian Ortiz-Self