Washington state’s Democrat-controlled House of Representatives unveiled the third version of a proposed state budget today, following the “no new taxes” one approved by the Majority Caucus (mostly GOP) State Senate last Thursday and a first draft from the governor in December 2016.
Today’s proposal would add $7.1 billion to public K-12 schools funding and approves the 6 percent pay increase for most state employees that their unions negotiated, along with several other expenditures.
“This budget is about families and about their success,” said Rep. Timm Ormsby, chair of the House Appropriations committee.
The Democrats’ budget calls for $1.197 billion in new tax revenue from changes to state B&O tax rules – a 20 percent increase in the rate for the highest grossing businesses, while pledging to protect the smallest of companies.
Another $715 million over two years is projected to come by ending the corporate tax break on capital gains and the Real Estate Excise Tax would become more expensive for any homes valued at more than $1 million. You can see more detail on the Democratic tax proposal at this link and the Operating Budget Summary at this link.
Presuming that Democrats will use their majority in the House of Representatives to adopt much of this proposal, the stage is then set for the back-and-forth with Republicans, who largely control the state Senate, to find a compromise spending plan for 2017-2019.