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.

Talk to us

More in Local News

Mike Rosen
Businessman Mike Rosen announces campaign for mayor of Edmonds

Rosen, a city planning board member, is backed by five former Edmonds mayors. It’s unclear if incumbent Mike Nelson will run again.

FILE - A Boeing 747-8, Boeing's new passenger plane, takes its first flight, Sunday, March 20, 2011, at Paine Field in Everett, Wash. After more than half a century, Boeing is rolling its last 747 out of a Washington state factory on Tuesday night. (AP Photo/Ted S. Warren, File)
Boeing’s last 747 to roll off the Everett assembly line

The Queen of the Skies was dethroned by smaller, more fuel-efficient jets. The last 747s were built for a cargo carrier.

PUD workers install new transformers along 132nd Street on Tuesday, Oct. 25, 2022 in Mill Creek, Washington. (Olivia Vanni / The Herald)
Electric vehicles spur big forecast jump for PUD demand

Not long ago, the Snohomish County PUD projected 50,000 electric cars registered in the county by 2040. Now it expects up to 660,000.

Traffic moves northbound on I-5 through Everett on Friday, Dec. 2, 2022. (Olivia Vanni / The Herald)
Grinding work still needed for I-5 through Everett

Construction crews need warmer temps for the work to remove what a reader described as “mini raised speed bumps.”

After a day of learning to fight fires, Snohomish firefighter recruit Chau Nguyen flakes a hose as other recruits load the hoses onto a fire truck April 19, 2018, at the training facility on S. Machias Rd. in Snohomish. (Andy Bronson / Herald file)
Lawsuit: Everett firefighter sexually harassed numerous recruits

Chau Nguyen resigned earlier this year, long after the first complaint about his behavior at the county’s fire training academy.

NO CAPTION. Logo to accompany news of education.
Stanwood-Camano School Board seeks applicants for vacancy

Ken Christoferson, the district’s longest serving board member, resigned on Dec. 6.

The final 747 is rolled out of the factory on Tuesday, Dec. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Final 747 rollout signals end of an era for Boeing, Everett

After a 55-year run, the last of the “Queen of the Skies” emerged from the Everett assembly plant Tuesday evening.

Pilchuck Secret Valley Tree Farm owner Paul Dierck walks through a row of trees on Monday, Dec. 5, 2022 in Arlington, Washington. (Olivia Vanni / The Herald)
Christmas trees, a Washington cash crop, get a little more spendy

Christmas tree farms generate about $688,000 each season for Snohomish County farmers. Some are still open for business.

Marysville
Marysville to pay $1M to another former student for alleged sex abuse

The latest settlement marks the earliest known allegations against Kurt Hollstein, who worked in the district until last year.

Most Read