Dear friends and neighbors:
It’s been pretty hectic in virtual Olympia: yesterday we were on the Floor passing bills until well into the evening, and this week we are running against the clock to get bills heard and executed out of committee before the next fiscal cutoff, next Friday.
Last week we released our three budget proposals. Click on the links below for the press releases, where you can check out overviews of what’s included in them. For the Capital and Transportation budgets, I will provide you with specific lists of projects in our area in my next newsletter.
Our “Washington Recovery” operating budget proposal is built around supporting people hit hardest by the pandemic. Click on the image on the left for a short video on why we need this budget. |
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Vaccines Update
Critical workers in grocery stores, food banks, public transit, agriculture and more are now eligible for the COVID-19 vaccine, along with people over the age of 16 who are pregnant or have a disability that puts them at high risk. You may have also heard that vaccine eligibility will be expanded on March 31 to include anyone with two or more comorbidities, those between the ages of 60 and 64, workers in restaurants, food service, manufacturing and construction, people experiencing homelessness and others. This means that by the end of this month, 5 million Washingtonians will be eligible for a shot. For help finding a vaccine appointment, visit the new vaccine locator or dial 1-800-525-0127.
According to the Department of Health Data Dashboard, slightly more than 1 in 4 people in King County have received at least one dose of the vaccine. Click here or on the image below to check out the Data Dashboard, where you can look up information for every county on demographics, testing, vaccine doses given, hospitalizations, confirmed cases and more.
The fact that so many people are getting vaccinated is great news, no doubt, but we are not out of the woods yet. It is really important that we all continue following the guidelines: keeping our distance, washing our hands thoroughly and frequently, and wearing masks. Our collective success relies on everyone’s commitment to beat this virus. We will only get to the other side if we all head in that direction together.
Ask TINA 5: A bill that would have made the estate tax more progressive
I have received many calls and emails asking about House Bill 1465 because there’s a lot of misinformation surrounding this measure. So, in this edition of Ask Tina, I am setting the record straight.
First, this bill is not moving this session. But It would have made the estate tax more progressive by eliminating the tax on 25% of the estates currently taxed and decreasing the tax for another 53%. The bill would have also brought in funding for foreclosure prevention programs, rental assistance, and services for the homeless.
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By raising the exemption threshold to $2.5 million from the current $2.193 million, HB 1465 would have:
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- Eliminated the estate tax on 25% of the estates currently taxed (approximately 100 estates annually); and
- Decreased the state estate tax for another 53% of estates (approximately 200 estates annually, those between $2.5 million and $6.5 million).
Under this bill, qualified family-owned businesses (QFOBIs) would have been enabled to exempt another $2.5 million on top of the exemption threshold from estate taxation, for a $5 million total exemption from any estate tax. Family owned farms are currently exempt from estate taxes.
HB 1465 would have increased taxes on 22% of the largest estates (in excess of $6.5 million), such that for estates valued at
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- $10 million, taxes would have been increased by 1.33%;
- $25 million, taxes would have been increased by 5.64%;
- $50 million, taxes would have been increased by 7.8%; and
- the tax rate on estates valued in excess of $1 billion would have doubled.
In total, taxes would have been increased on the 60 wealthiest multi-million and billion dollar estates, annualized. HB 1465 would have been quite helpful to family businesses. Also, estate planners would have had 15 years by which to pay their estate tax liabilities.
ICYMI: 33rd Virtual Town Hall
Did you join us last week at out virtual town hall? If yes, thank you for being there and making it a success! In case you missed it, you can watch it now:
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Addressing Housing and Homelessness
Our Washington Recovery Budget allocates federal and state resources to address the needs of people who bore the brunt of the pandemic, with direct funds for families and small business owners, with $1.86 billion for housing and homelessness programs and $850 million in unemployment insurance rate tax cuts and business grants. In addition, the House capital budget proposal includes $296 million in housing and shelter programs and $8.7 million for food bank construction projects. Highlights include:
- $1.07 billion for rental assistance to continue the state goal of paying the back rent accrued during the governor’s eviction moratorium. Combined with the $325 million allocated in the Step One for Community and Economic Recovery bill (HB 1368) passed by the Legislature in February, that totals nearly $1.4 billion in rental relief this year.
- $600 million for unemployment insurance tax rate cuts and $250 million in small business grants.
- $166.6 million in mortgage assistance through the ARPA Homeowner Assistance Fund.
- $140.8 million in food assistance programs.
- $121.6 million in state housing/homelessness assistance.
- $37.63 million to increase TANF grants and $26 million to extend TANF benefits.
- A $26.5 million increase to the Housing and Essential Needs Program, with the goal of serving an estimated 1,700 people who qualify for the program but are waiting for the program to receive more funding.
- $26.2 million increase for the Emergency Cash Assistance
- $13 million for foreclosure assistance.
Additionally, below are some of the bills to address housing and homelessness that are still moving through the legislative process:
Strengthening the Foreclosure Fairness Act
HB 1108 will maintain funding for the Foreclosure Fairness Act program and expands the program’s scope to provide counseling and mediation services to small landlords, not only to homeowners.
With many homeowners defaulting in their mortgage payments due to job losses caused by the pandemic, once the moratoriums are lifted, we will likely see numerous foreclosures, which makes this bill that much more important.
For more information, please read a longer section on this bill in my January 31st newsletter.
Local planning should account for all our neighbors
HB 1220 will require cities to plan for housing at all income levels, even emergency housing and shelters, not just luxury housing for those at the top. Developers want to build houses, apartments and condos that will maximize their profits, but that doesn’t serve the needs of everyone in our communities to have access to affordable, high quality housing close to jobs, good schools and services. Homelessness and housing affordability will not improve until we start building housing for people of all income levels—the middle-class workforce; people making moderate, low, and extremely low incomes; and emergency housing and shelter for people who need it.
There has been some concern among cities in south King County that this bill will drive homelessness into our area, so we made sure to include provisions in the bill to make sure cities have the right to place reasonable occupancy, spacing, intensity of use, and operational restrictions on emergency housing and shelters.
Better planning for the future of our communities is one more tool to help end racial exclusion, gentrification and displacement and realize our shared dream of strong, welcoming, climate-resilient communities where all kinds of people can afford to live.
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A permanent Eviction Prevention Rental Assistance Program
Renters in our state were already struggling before the pandemic, with 70 percent of low-income renters being severely cost-burdened by housing costs. Now, nearly 200,000 renters are behind in their rents. The eviction moratorium has saved some families, but more rental assistance help is needed as many families have turned to unsustainable sources to make rent, such as credit cards and personal savings.
HB 1277 will create our state’s first ever permanent rental assistance program. The bill establishes a progressive fee paid upon submitting certain documents when purchasing a house and will generate $80-90 million every single year. That’s on top of the $1.07 billion in rental assistance included in our Washington Recovery Operating Budget proposal and the $325 million allocated in our Step One for Community and Economic Recovery bill passed by the Legislature in February. Our housing and homelessness crises have been made far worse by the pandemic, so rental assistance resources will be needed far into the future. Surveys of home buyers have shown strong support for this type of fee, and many are glad to lend a helping hand to some of our most vulnerable neighbors.
Housing is a life-sustaining human right
HB 1236 will protect month-to-month tenants from no-cause evictions by requiring landlords to cite a reason for eviction.
Without this legislation, landlords will be able to evict a month-to-month renter with a 20-day notice without even telling the tenant why.
Stopping evictions means preventing homelessness. The majority of families of color in Washington rely on rental housing to keep a roof over their heads.
We cannot go back to a system where renters can easily be forced into homelessness through no fault of their own. A stable home is essential for all Washingtonians now more than ever. For all of us to stay healthy and safe.
Condemning anti-Asian violence
I join my colleagues in the Legislature, and people around our state and country, in condemning the alarming rise in anti-Asian hate and violence. These words from Rep. My-Linh Thai continue to resonate with me:
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Keep in Touch
Thank you for reading my newsletter. As always, if you need additional information on any of the issues discussed here or on any other legislative matters, please don’t hesitate to contact my office.
Don’t forget to visit my official Facebook page for frequent updates!
Sincerely,
Rep. Tina Orwall