eye on business
A Strong Economy Supports Good Schools
Kris Johnson, AWB President
Speculation about when the legislative session will end is always a popular pastime for those who work in and around the Legislature. This year, the prognosticators are predicting a long, difficult session.
You would be right if you thought the speculation had a familiar ring. Every legislative session, especially those in odd years when lawmakers must adopt a new two-year
state budget, seems to begin with predictions of a long, difficult session.
But there is good reason to believe the 2017 session will have more than its share of challenges. The biggest, of course, is figuring out how to fully comply with the state Supreme Court’ s 2012 McCleary education funding decision.
Although lawmakers have made progress over the last several years, adding $ 4.5 billion in school funding since 2013, they saved the hardest piece for last: levy reform for paying teacher salaries.
Lawmakers must now find a way to put the full cost of basic education onto the state, rather than relying on local school district levy funds.
There is debate over exactly how much this will cost, but the discussion is already sparking calls among some for new and higher taxes.
Those calls are premature, at the very least, as state revenue is expected to increase by more than 6 percent because of a growing economy.
Lawmakers have demonstrated over the last several years that it’ s possible to increase K-12 spending and even cut college tuition for the first time in generations without passing a major tax increase.
It’ s not easy, but it’ s possible, if legislative leaders can put aside differences and work together, and if the economy is growing.
A close divide again this year between Democrats and Republicans in the House and Senate suggests lawmakers will reach a bipartisan solution once again, at least eventually.
Innovation by Washington’ s private sector employers has fueled the economic growth, boosting state revenue by billions of dollars. But there is no guarantee the economy will continue growing.
Raising taxes on businesses and families— Gov. Inslee has proposed more than $ 4 billion in new taxes in the next biennium— threatens Washington’ s competitiveness in the global marketplace, and jeopardizes the economic growth we’ ve seen in some parts of the state.
In those parts of the state outside of the central
Puget Sound region that are still waiting for growth to arrive, it would be yet another setback. Unemployment is far too high in places like the Olympic Peninsula and northeast Washington. Competitiveness matters. Costs add up. In addition to the governor’ s proposed tax hike, employers are dealing with an expensive new water quality rule, carbon rule, a rising minimum wage and growing sick leave requirement, predictive scheduling, and paid family leave.
Washington employers understand the need for good schools, and they want to be part of the solution. Helping them grow and expand the tax base is a better way to help our schools than making it more expensive to operate. Good jobs and a strong economy results in more tax revenue. That’ s true no matter when the session adjourns.
10 association of washington business