Eduardo Carrillo, of Gov. Jay Inslee’s office, uses a bullhorn to announce upcoming bill signings outside Inslee’s office Tuesday at the Capitol in Olympia. Inslee signed the state’s capital, operating, and transportation budgets, officially designating funds — and new taxes — to pay for state programs for the next two years. (AP Photo/Ted S. Warren)

Eduardo Carrillo, of Gov. Jay Inslee’s office, uses a bullhorn to announce upcoming bill signings outside Inslee’s office Tuesday at the Capitol in Olympia. Inslee signed the state’s capital, operating, and transportation budgets, officially designating funds — and new taxes — to pay for state programs for the next two years. (AP Photo/Ted S. Warren)

Inslee signs new $52.4 billion spending plan for the state

To help pay for this budget, taxes are getting raised on businesses, big banks and vaping products.

  • By Wire Service
  • Wednesday, May 22, 2019 7:50am
  • Local News

Associated Press

OLYMPIA — Gov. Jay Inslee Tuesday signed the state’s capital, operating, and transportation budgets, officially designating funds — and tax increases — to pay for state programs for the next two years.

Along with existing programs, the budgets fund expanded college grants for low and middle-income students, an expansion of the state’s mental health system, and the first phase of hybridizing the state’s ferry system.

“This is a budget that puts people first,” Inslee said as he signed the state’s $52.4 billion operating budget.

But Inslee also called out a looming funding challenge for the state: Fixing culverts — large pipes that allow streams to flow under roadways, but can prevent salmon from reaching their spawning grounds. As a result of a U.S. Supreme Court ruling, the state has to fix hundreds of culverts around the state, at a cost some estimates have put as high as $3.5 billion. Many of the culverts must be fixed by 2030.

Inslee and legislators in his own party went back-and-forth over how much to put toward the fixes during the Legislature’s regular 105-day session. In a rebuke to legislators, Inslee used what he called budget flexibility to force an increase in the amount of money going to the projects, and warned that legislators would have to add even more money in coming years.

“This is just a down payment on the multibillion dollar tab legislators left unpaid,” Inslee said. “This does not solve the problem.”

Gov. Jay Inslee signs the 2019–21 operating budget on May 21. (Office of the Governor photo)

Gov. Jay Inslee signs the 2019–21 operating budget on May 21. (Office of the Governor photo)

Inslee increased the funding to $275 million over the next two years, more than twice the $100 million lawmakers put in the transportation budget they delivered to the governor.

Republicans objected to the level of spending and the new and higher taxes. They argued economic growth statewide, in parallel with the thriving U.S. economy, had generated enough of an increase in tax revenues to sustain government spending without new taxes.

The budget, said Sen. John Braun, R-Centralia, “isn’t good news for the families and employers, who will pay the price one way or another.”

That echoed remarks from Republicans lawmakers throughout the legislative session, as Democratic lawmakers used their control over both halves of the Legislature to shape the state’s budgets around their own priorities.

Two tax bills targeting wealthy corporations and individuals were included in the package of bills signed by Inslee Tuesday.

One would target professional service companies like accounting, architecture and engineering firms, along with large computing companies, potentially including Google and Amazon, with a tiered up-charge on the state’s Business and Occupation tax. Businesses making over $100 billion in gross revenues would be in the top tier, and would see a two-thirds increase on their tax rate over current levels.

The revenue from the tax would expand college grants for low and middle-income college students, including providing full-tuition scholarships to all qualifying students from families of four making $50,000 per year or less.

Another tax bill would convert the state’s current flat real estate excise tax to a tiered system, increasing the taxes collected on sales of properties over $1.5 million, decreasing the collection on properties under $500,000, and keeping the rate for homes in the middle unchanged.

A major component of the budget was the overhaul and expansion of the state’s mental and behavioral health system, a point of bipartisan consensus during the legislative session.

“The expansion that’s the most meaningful in this budget is the commitment to reforming the state’s woefully inadequate behavioral health system, from community-level services all the way up to the state’s mental health institutions,” said Democratic Sen. Christine Rolfes, the chief budget writer in the Senate,

The operating budget includes about $47 million to expand behavioral health facilities in communities around the state, as well as over $150 million to improve state hospitals and comply with the federal court ruling in the Trueblood case, which required the state to shorten wait times for people found incompetent to stand trial.

Long a priority for Inslee, some of that money would help add treatment capacity in communities around the state, in the form of intensive residential facilities, medium-term treatment facilities, and peer support centers, to serve patients who don’t qualify for civil commitment but still need care.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Customers enter and exit the Costco on Dec. 2, 2022, in Lake Stevens. (Olivia Vanni / The Herald)
Costco stores could be impacted by looming truck driver strike threat

Truck drivers who deliver groceries and produce to Costco warehouses… Continue reading

Two Washington State ferries pass along the route between Mukilteo and Clinton as scuba divers swim near the shore Sunday, Oct. 22, 2023, in Mukilteo, Washington. (Ryan Berry / The Herald)
Ferry system increases ridership by a half million in 2024

Edmonds-Kingston route remains second-busiest route in the system.

Alina Langbehn, 6, center, and Vera A., 6, right, sit on a swing together at Drew Nielsen Neighborhood Park after school on Tuesday, Jan. 28, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Everett council votes to renovate Drew Nielsen Park

Construction on the $345,000 upgrade could start as early as this fall.

Northshore School District bus driver Stewart O’Leary pictured next to his buses shattered drivers side windshield on Friday, Feb. 14, 2025 in Bothell, Washington. (Olivia Vanni / The Herald)
‘Put me in, coach’: Bus driver back at work after struck by metal bar

Stewart O’Leary, a Northshore employee, has received national attention for his composure during a frightening bus trip.

Lynnwood councilor Joshua Binda speaks during a Lynnwood City Council meeting on Wednesday, Nov. 20, 2024. (Olivia Vanni / The Herald)
Does the Lynnwood Council VP live in Lynnwood? It’s hard to say.

Josh Binda’s residency has been called into question following an eviction and FEC filings listing an Everett address. He insists he lives in Lynnwood.

Robin Cain with 50 of her marathon medals hanging on a display board she made with her father on Thursday, Jan. 2, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Running a marathon is hard. She ran one in every state.

Robin Cain, of Lake Stevens, is one of only a few thousand people to ever achieve the feat.

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

An American Robin picks a berry from a holly tree on Thursday, Feb. 13, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Calling all birders for the annual Great Backyard Bird Count

The Audubon Society will hold its 28th annual Great Backyard… Continue reading

A view of one of the potential locations of the new Aquasox stadium on Monday, Feb. 26, 2024 in Everett, Washington. The site sits between Hewitt Avenue, Broadway, Pacific Avenue and the railroad. (Olivia Vanni / The Herald)
Initial prep work for AquaSox stadium to start, with $200k price tag

The temporary agreement allows some surveying and design work as the city negotiates contracts with designers and builders.

Aaron Kennedy / The Herald
The Joann Fabric and Crafts store at 7601 Evergreen Way, Everett, is one of three stores in Snohomish County that will close as part of the retailer’s larger plan to shutter more than half of its stores nationwide.
Joann store closure plan includes Everett, Arlington, Lynnwood locations

The retail giant filed a motion in court to close approximately 500 stores in the U.S.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.