Inslee will seek to extend temporary taxes

OLYMPIA — Gov. Jay Inslee today will call for extending taxes set to expire this summer as part of his plan for balancing the next state budget and steering more than $1 billion of new money into public schools in the coming two years.

Inslee also will identify tax breaks he wants to close as a means of raising revenue to erase a projected budget shortfall and satisfy a Supreme Court directive to better fund the state’s education system.

The governor has scheduled an 11 a.m. news conference to discuss his spending blueprint for the biennium that begins July 1.

While his staff has been mum on the details, the governor teased his plans to aerospace executives Wednesday afternoon.

He said he is focused on making a “healthy down payment” to comply with the court ruling on public school funding. But with an estimated $1.3 billion shortfall, Inslee said new and existing streams of taxes will be needed to make ends meet.

“We are going to put quite a bit of money into our schools,” he told members of the Aerospace Futures Alliance said

“Because there is no Tooth Fairy, it will involve raising some revenues for state government,” he said. “There is going to be some continuation of some existing revenue requirements.

“We’ll look closely at some tax breaks that don’t make sense any more because we’re going to fulfill the paramount duty of our state starting tomorrow,” he said.

Two taxes enacted in 2010 are set to expire July 1. One is a 50-cent-per-gallon tax on beer and the other is a 0.3 percent surcharge on the business and occupation tax paid by doctors, lawyers and accountants.

Inslee did not say if he will call for continuing one or both of the taxes.

The state Department of Revenue estimates the B&O tax surcharge would bring in $534 million over the next two years, and the beer tax would bring in $101 million.

Former Gov. Chris Gregoire recommended continuing both taxes in the budget she proposed in December.

Inslee said one of his first meetings with reporters in January that extending those taxes would not violate his campaign pledge against raising taxes.

“They do not raise taxes on people over the existing level that, in fact, are being paid today,” he said. “And since they do not increase taxes, they are not a tax increase.”

But Republican lawmakers didn’t agree then.

“We believe temporary really meant temporary on those taxes,” said Senate Republican Leader Mark Schoesler of Ritzville.

With release of his proposal, Inslee will be kicking off the budget debate in Olympia.

The Republican-dominated Senate Majority Coalition plans to release its budget proposal early next week with House Democrats following soon after.

The 105-day legislative session is scheduled to end April 28.

Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com.

More in Local News

Former jail guards sentenced in dehydration death of inmate

During a mental health crisis in 2015, Keaton Farris, 25, wasted away in the Island County Jail.

‘We don’t know why he left’: Teen has been missing for 2 years

Interest in the case of Tyler Christensen, of the Edmonds area, has recently surged on the internet.

Two-day event will offer free medical and dental services

The Amen Everett Free Clinic is expected to serve 400 to 500 patients Friday and Sunday.

Video: Police seek 2 after fight at restaurant drive-thru

Security cameras at Memo’s in Everett caught one of the suspects aiming a gun at the other.

Swift Bus and van collide in Everett, injuring 2

Their injuries were described as minor.

Girl who was raped as she died had drugs in her system

The official cause of death was announced as accidental by the medical examiner’s office.

On your mark, get set … get dirty

It’s a 5k obstacle course filled with fun and mud.

Students to walk out over gun issues, school safety

Walkouts are planned Friday at schools around the country, including at least nine in Snohomish County.

Jensen Webster sorts through food stuffs at the Sultan High School in Sultan on March 14, 2018. (Kevin Clark / The Daily Herald)
Suntan school children take charge to help their peers

The Sky Valley Youth Coalition has installed pantries at schools in Sultan so kids can take food home.

Most Read