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