Contact: Lexi Koren, lexi@powerhouse-strategic.com
504-858-7209
Wealth Tax Next Logical Step For Washington
Olympia, WA – Teachers, childcare and health care providers, parents and others say cuts to education, childcare, health care, and other vital services are out of the question when Washington is home to so many mega-millionaires and billionaires.
In response to the Governor’s budget solution of addressing the state’s massive funding shortfall with a wealth tax and other sources of revenue, Invest in Washington Now Executive Director Treasure Mackley said:
“Last month’s election proved that Washingtonians support making our state’s mega-millionaires and billionaires pay what they owe for education and childcare. Washington is still next to last in the nation when it comes to tax fairness, where middle class families contribute a much bigger share of their incomes to state programs than the super-rich do. Proposals like the wealth tax in the Governor’s budget are a logical next step to fund critical services like childcare, education, and long-term care.”
Kristin Rowe-Finkbeiner, Executive Director and CEO of MomsRising, urged Governor-elect Ferguson Ferguson to follow Governor Inslee’s lead in pushing progressive taxes while rejecting cuts to childcare:
“Washington families have been clear: we need affordable, quality child care and we support new, progressive revenue to make it happen. These proposed cuts to expanding affordable childcare benefits to middle class families would be counterproductive and devastating, especially with costs so high and so many families struggling to make ends meet. Childcare, in particular, demands a greater investment so moms and caregivers can work, businesses can hire the workers they need, and Washington state’s economy can thrive. Moms are calling on Governor-elect Ferguson and our legislators to champion new taxes on the ultrawealthy, like the wealth tax, so we can reduce the cost of child care and other essentials for families.”
In a landslide vote last month, 64% of Washingtonians voted down a repeal of the state’s capital gains tax on stock and bond profits over $262,000. Polling shows that Washingtonians want the legislature to spend more, not less, on childcare, education, and long-term care.
While Governor Inslee’s budget proposes new progressive revenue options, there are also cuts to these vital programs. Long-term care providers, teachers, childcare providers, and parents are calling on the Legislature to reject cuts to education, from early learning through public schools and higher education, as well as health care and behavioral health.
Educators on Cuts To K-12 Education
Frances Guerrero, Yakima Education Association President and Language Arts Teacher:
“Continuing on the path of cuts to K-12 education will be devastating for kids and families here in Yakima. Working parents, who already pay a higher share of their incomes in taxes than millionaires and billionaires do, cannot afford to support another levy. We need the state to honor its commitment to funding K-12 education.”
Shawna Moore, Student Success Dean at The Puget Sound Skills Center and Highline Education Association Member:
“I’m deeply concerned about how the proposed budget will impact our ability to provide career training programs for juniors and seniors who cannot or do not want to pursue a traditional four year degree. This will have an impact not just on the students and their families, but on our state’s workforce in vital sectors such as aerospace manufacturing and healthcare.”
Jill Rock, Bellevue Education Association President:
“Investing in public education is one of the most impactful ways to shape our collective future. When we maintain the underfunding for K-12 education, we aren’t just creating challenges for students, educators, and families in the present; we’re also weakening the foundation of our future, limiting opportunities for innovation, and diminishing the strength of our communities. We urge our legislators to keep funding for education IN education!”
Providers and Advocates on Cuts To Childcare and Early Learning
Diana Llanes, Owner of Once Upon a Time Daycare in Burien:
“As a provider who serves families that rely on tuition assistance, cuts and delays to child care and early learning funding will harm kids I care for every day. Studies show investments in early learning pay off, with better outcomes in school, careers, and life. I know this from experience too. Kids who I taught in early learning programs are now going to college. Let’s not put our kids’ futures in jeopardy and support education.”
MomsRising member and mom of three, Katrina Peters of Spokane:
“High-quality, affordable child care is essential for working families like mine. Without public investment in child care, I would not be able to support my family, and my children would miss out on early learning opportunities that have been transformative. As the cost of child care continues to skyrocket, our families and our economy can’t afford any cuts to these essential programs. As an organizer for No on 2109, I spent the last six months speaking with my neighbors and community in eastern Washington about our state’s upside-down tax structure. Together, we sent a strong message in November: Our community supports new, progressive revenue to support the child care programs and public schools we love and rely on.”
Eli Taylor Goss, Executive Director WA State Budget and Policy Center:
“With a total revenue package just under $13 billion, Gov. Inslee is reflecting what advocates have been pushing for years: the need for a more fair tax code for everyday Washingtonians.”
Proposed Budget Details
The Governor’s proposed budget cuts include:
Childcare
- Delaying Working Connections assistance for middle-class parents until 2031
- Delaying planned ECEAP assistance for parents until 2031
- Cutting 845 unfilled ECEAP slots
Education
- Total cuts in K-12 are $346.7 million
- Decreasing bonuses, reducing grants for paraeducator trainings
- Higher Ed: Over $6 million in cuts
Revenue proposed in the Governor’s budget:
Top line: Total revenue package just under $13 billion over 4 years; historic investment in Washingtonians with two largest investments on extraordinary wealth and business
- Wealth Tax: 1% of assets over $100 million affecting around 3,400 individuals in WA
- B&O Tax Increase: Temporary 20% increase on businesses in services & other activities category with annual incomes over $1 million; 10% rate increase on all B&O taxes after January 2027
- Changes to administration of unclaimed property would bring in over $10.7 million
Detailed breakdown of K-12/Education:
Reductions:
- $346.7 million “Reductions include pausing the National Board certification bonuses, decreasing grants for paraeducator training due to underutilization, and the eliminating certain discretionary grant programs to recuperate underspent funds.” (p.65)
Investments:
- $1.3 billion for inflationary increases for teachers
- Maintaining 70% of Washington students receiving free school meals (no additional investment)
- $125 per month summer bonus for 620,000 students from low income households eligible for SNAP ($35.4 million GF-S, $1 million GF-Federal)
- $642,000 for Office of Equity and civil rights in OSPI to timely investigate complaints GF-S
- $2.3 million to assist school districts in managing financial challenges (GF-S)
- $13.2 million to update the OSPI apportionment system to reduce administrative burden on districts
Detailed Breakdown of Higher Education:
Reductions:
- one time reduction for higher ed institutions ($6.84 million)
Investments:
- 2.2 million for Native American Scholarship pilot (continues a pilot that supports students who are members of federally recognized Tribes)
- 1 million for Washington Award for Vocational Excellence (WAVE) scholarship program (honors the achievements of top career and technical education students)
- $1.4 million for new masters degree program for dental therapy at Eastern WA university (EWU)
- $901,000 for Evergreen State College’s Shelton Promise program, to reduce barriers for Shelton students and families, 70% of whom forgo higher ed
- $46.1 million to maintain Washington College Grant eligibility from WEIA
- $40 million to the Behavioral Health Teaching Facility at UW, providing care to individuals with serious physical and behavioral health challenges. Also provides training to next generation of health professionals
- $204,000 to expand the Students Experiencing Homelessness program – would expand to include the Northwest Indian College in the program
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