2016 legislative review
at issue is the question of what B & O tax classification is appropriate . Proponents of the bill believed it was a fair compromise and reduced the risks of litigation over time . However , a number of questions and disagreements persisted to the end and this complicated issue wasn ’ t able to find final resolution before the end of session .
SB 6668 pension merger
Failed / AWB Neutral
In order to defray costs associated with an unfunded pension liability in one of the state ’ s older pension plans , Senate Bill 6668 would have merged the assets , liabilities , and membership of Plan 1 of the Law Enforcement Officers ’ and Firefighters ’ ( LEOFF ) Retirement System with Plan 1 of the Teachers ’ Retirement System ( TRS ), and established a funding policy for the merged plan . It also would have provided a one-time , lump-sum defined benefit payment of $ 5,000 to all retired LEOFF Plan 1 members , payable on Jan . 3 , 2017 . Active or “ term-vested ” members would have received the lump-sum benefit payment , with interest , on their retirement date . The reduction in the TRS Plan 1 employer contribution would result in $ 75 million in state General Fund savings in the 2015-17 biennium , with an expected additional savings of $ 243.8 million in the 2017-19 biennium . The 25-year savings to the state General Fund is estimated at $ 1.5 billion . Initial criticism slowed progress of this bill early on . However , some legislators began to warm to the idea as session advanced . Not adopted by the Legislature , it is currently being reviewed by the Select Committee on Pension Policy , and will be a topic for discussion in 2017 . in the state General Fund over a four-year period . It has been an effective tool for reducing fluctuations in state budgeting , minimizing the use of short term fixes , and reducing the number of unfunded future liabilities . However , because this provision is merely in state law , and not in the state Constitution , there are a number of ways to work around it . In order to strengthen the effectiveness of the law , Sen . Andy Hill , R-Redmond , put forward Senate Joint Resolution 8213 . SJR 8213 would have taken the current four-year balanced budget law and placed it in the state Constitution . AWB supports this approach and looks forward to working on it again next year .
SJR 8215 voter approval to raise taxes
Failed / AWB Supported
Sponsored by Sen . John Braun , R-Centralia , Senate Joint Resolution 8215 cut straight through the middle of a discussion that has been going on in earnest since the passage of Initiative 601 in 1993 . I-601 made statutory changes requiring a supermajority vote of both the House and Senate for any action that raised taxes . Over the years , this concept has continued to play a significant role in the legislative process . In 2013 , the statutory supermajority requirement for tax increases was declared unconstitutional by the state Supreme Court . Since then , the conversation has refocused on making changes to the state constitution . SJR 8215 would amend the state constitution to require referral to the voters for any legislative action that raises taxes unless the action receives a supermajority vote , or the action is temporary and in response to a catastrophic event . AWB continues to support the supermajority approach to raising taxes and SJR 8215 is a commendable approach that represents an improvement to the status quo .
additional information
Budget Bills and Documents : fiscal . wa . gov / BudgetOBillsEnacted . aspx
Interactive Budget Reports : fiscal . wa . gov / BudgetO . aspx
SJR 8213 four-year balanced budget
Failed / AWB Supported
In 2012 , the Legislature enacted a statutory four-year balanced budget provision . This provision requires the Legislature to leave a positive projected ending fund balance
Rep . Kristine Lytton , D-Anacortes , chairs the House Finance Committee .
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