Washington Business Fall 2018 | Legislative Review & Vote Record | Page 8

2018 legislative review

Editorial Scorecard

“ While the overall perception among urbanites might be that Washington state is enjoying a robust economy , the disparity between the economic health of urban and rural communities is widening . …
Job growth in urban areas increased by 1.5 percent between 2012 and 2016 , while the average job growth rate in rural counties was barely half that . Similarly , AWB says there ’ s a pronounced wage gap between rural and urban counties .
To help reduce the jobs and wage gap , the state should apply tax incentives fairly across the manufacturing sector statewide so that manufacturers in rural areas are on the same playing field as far as tax breaks that urban-based Boeing Co . and other aerospace manufacturers have enjoyed since 2003 .
Gov . Jay Inslee vetoed a legislative attempt last year to do just that . He was wrong . The same job-retention rationale for granting aerospace tax breaks should be used for manufacturers statewide .”
— The Spokane Journal of Business ( 1 )
Washington state ’ s prolonged court battle over school funding appears to be coming to a close , a welcome result of the 60-day legislative session that ended Thursday .
The supplemental budget adopted by the Democratic-controlled Legislature added nearly $ 800 million to speed the state ’ s takeover of school-employee salary costs , which the state Supreme Court ordered last fall in the McCleary education-funding lawsuit .
By taking steps to comply , lawmakers might well end the yearslong legal saga , allowing them to return their attention to new ways of improving student outcomes .
This is good news for Washingtonians , who deserve an amply funded school system that delivers a world-class education for the state ’ s 1.1 million schoolchildren , regardless of which ZIP code they live in .
Lawmakers were smart to move up certain accountability reforms aimed at preventing the state from falling behind on its school-funding responsibilities again . These changes include requiring separate accounting of state and local tax revenues — key to ensuring the state covers the full cost of basic education , rather than relying on local property-tax levies to bridge the gap . Lawmakers also wisely retained limits on the size of local levies and how they can be used .
The Legislature ’ s job was made easier by higher-than-expected state revenues — an extra $ 2.3 billion . Given the possibility of an economic downturn , they should have socked away more money in the state ’ s constitutionally protected rainy-day fund . — The Seattle Times , March 14 ( 2 )
“ The concept of equity is deeply rooted in our country ’ s psyche , but no one ’ s so naive to think we achieve that uniformly . ( As anyone following the ongoing debate over basic education knows ...) Government puts its thumb on the scales , for better and for worse , and there ’ s certainly a reason taxes are used as a tool to promote action or curb excesses . …
Last summer ’ s state budget agreement included a provision to expand the lower state B & O rate beyond the aerospace sector , applying it to all manufacturers . The provision , pushed by the Republican caucus but agreed to by Democrats in budget negotiations , wouldn ’ t have completely eliminated state B & O , but it would have put all manufacturers on equal footing . That ’ s a fair request in a state where Boeing and aerospace receive a deserved share of economic credit but aren ’ t the only engine driving our future .
The measure was vetoed by Gov . Jay Inslee , who stated at the time he disagreed with being caught offguard by its inclusion in a budget deal . In our view that was disappointing , given the work that went into the agreement , but this session the idea is back — actually , two versions of it are .” – The Kitsap Sun ( 3 )
6 association of washington business