If you’ve seen the newspapers today, then you probably saw something about a
sales-tax increase. That’s because Governor Gregoire made news yesterday when
she proposed an "all-cuts" budget to deal with the $2 billion
shortfall that awaits legislators when they return for a special session next week.
The .05% sales-tax increase would be something voters would vote on in March. If we agreed to tax ourselves, then this $500 million in new revenue would allow the legislature to buy back the very services that were cut. This tax would last three years and then be set to expire.
The short of it is that Governor Gregoire is asking the legislature to cut $2 billion and then the voters will approve a $500 million tax to buy back some of the $2 billion in cuts.
There was some speculation that the governor would look to remove the trade-in deduction for boat purchases as well as a place a luxury tax on boat purchases. Thankfully, both of those measures did not make her list. That doesn't mean that we are home free, however, as the governor doesn’t write the budget (although she does have a loud microphone). That’s the legislature’s job. Certainly, it's better to be in a starting point where we find ourselves, but it's important to note that the budget process is a long, windy road, which we will be watching from Olympia every day.
Governor Gregoire’s Press Conference: link
Reactions from key lawmakers, including Rep. Ross Hunter who attended NMTA’s forum in Belleuve last week here: Reactions To Governor's Budget Proposal
Speaker Chopp’s reaction here.
More coverage on the press conference from the Seattle Times and Tacoma News Tribune
The .05% sales-tax increase would be something voters would vote on in March. If we agreed to tax ourselves, then this $500 million in new revenue would allow the legislature to buy back the very services that were cut. This tax would last three years and then be set to expire.
The short of it is that Governor Gregoire is asking the legislature to cut $2 billion and then the voters will approve a $500 million tax to buy back some of the $2 billion in cuts.
There was some speculation that the governor would look to remove the trade-in deduction for boat purchases as well as a place a luxury tax on boat purchases. Thankfully, both of those measures did not make her list. That doesn't mean that we are home free, however, as the governor doesn’t write the budget (although she does have a loud microphone). That’s the legislature’s job. Certainly, it's better to be in a starting point where we find ourselves, but it's important to note that the budget process is a long, windy road, which we will be watching from Olympia every day.
Governor Gregoire’s Press Conference: link
Reactions from key lawmakers, including Rep. Ross Hunter who attended NMTA’s forum in Belleuve last week here: Reactions To Governor's Budget Proposal
Speaker Chopp’s reaction here.
More coverage on the press conference from the Seattle Times and Tacoma News Tribune
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