Bills, budgets and policies: 2021 session

The final gavel on Sunday, April 25 concluded a unique and challenging legislative session in state history. Although sometimes difficult to navigate, by-and-large working remotely during the 2021 virtual session went relatively well. Committee hearings, floor debates, even constituent meetings were all held online. Despite some of the obvious inefficiencies, we were able to get the work of the people done.

Although I applaud the use of emerging communication technologies to increase citizen involvement – like remote testimony – nothing beats in-person interaction when discussing ideas. I am already looking forward to the next legislative session when I hope lawmakers are able, once again, to meet face-to-face with each other and the people they represent to discuss and debate public policy.

2021-23 Operating Budget

The House and Senate released the $59 billion two-year state operating budget on day 104 of the 105-day session. The plan includes a 13.6% increase over the previous biennium and approximately $7 billion in new spending.

Since 2011, we have doubled the state’s operating budget. Why is that important? In future years, state spending will outpace the taxpayer’s ability to pay for it. The legislative buzz word for that is “unsustainable.” Spending at this rate will eventually require one of two things: devastating cutbacks or tax increases. Neither of those options will be easy.

Also, there was no reason to raise taxes this year. Washington realized more revenue growth during the pandemic than any other state in the nation.

Despite billions in surplus state revenues and federal stimulus funds, the operating budget relies on a controversial capital gains income tax, a 7% tax payment to the state for specific capital gains over $250,000. Among other disadvantages, this tax will damage our competitive advantage, causing investors and entrepreneurs to look elsewhere to conduct their business. This tax is unconstitutional, unnecessary and a major step toward a state income tax.

Working Families Tax Credit

There is good news in this budget. As working individuals and families continue to grapple with the financial impact of the pandemic, the Legislature took steps to relieve the burden on those that earn the least. For the first time in state history, the working families’ tax credit will be fully funded.

In 2008, lawmakers approved this tax exemption, but for several years it remained unfunded. Similar to the federal earned income credit, the program gives rebates back to those who qualify. House Republicans originally allocated monies for the working families’ tax credit in their version of the operating budget early in the 2021 legislative session. House Bill 1297 became the bipartisan version of that plan, which passed with a near-unanimous vote. Starting in 2023, depending on income, qualifying individuals will receive up to $1,200 – with the maximum remittance going to parents with three or more children. I am thrilled to see this program finally get put to use.

A bipartisan issue: Reforming the governor’s emergency powers

The pandemic expanded the role of government in ways few of us expected to see in our lifetime. That included the extensive authority used by the executive branch since the start of the state of emergency. For over 14 months, we have been living under the governor’s declared state of emergency. During that time, restrictions placed on counties across our state, and other decisions of this magnitude, have been made by the executive branch alone. That is concerning to Democrats and Republicans alike.

While I agree the governor needs to be able to respond quickly to natural disasters, pandemics and other emergencies, there need to be some limits. Executive authority, without public input, should not extend for months on end. The public deserves a voice in the process. That is the role of the Legislature. House Bill 1557 is a bipartisan effort to restore the proper balance of power. The proposal would give the legislative branch more oversight in long-lasting states of emergency. In my opinion, it was a missed opportunity that the bill was not approved this year. I am glad Democrats and Republicans plan to reintroduce the bill again in the 2022 session.

As always, if you have comments or questions about the 2021 legislative session or other state-government related matters, please contact me. I am always glad to hear from you.