Gov. Jay Inslee’s final budget proposal includes new wealth tax

Gov. Jay Inslee is proposing a new tax on wealthy Washingtonians as part of his last budget proposal, unveiled Tuesday.

The tax proposal comes as the state is potentially facing a shortfall up to $16 billion over the next four years, Inslee said. The increase would affect about 3,400 residents by adding a 1% annual tax on assets over $100 million. He noted that the tax would raise an estimated $10.3 billion in the coming years, and claimed that it would be less volatile than the capital gains tax passed in 2021.

“We are proposing a balanced budget, and that’s important for the fiscal integrity of the state of Washington,” Inslee said. “We have already taken some steps to reduce some of our expenditures, and that’s the first thing we looked at when we were thinking about this proposed budget.”

Although Inslee will no longer be the governor when Gov.-elect Bob Ferguson is inaugurated on Jan. 15, he is still required to submit a budget proposal to the Legislature in December. The incoming governor will release his own budget at a later date. 

Inslee noted Tuesday that the state is already taking steps to close the gap, including freezes on nonessential hiring and expenditures. 

Inslee’s proposal would also call for an increase in the state’s B&O tax, and would temporarily tax businesses with an annual income over $1 million at 20%. According to estimates, the tax would raise about $2.6 billion over the next four years. A 10% B&O tax would also be levied on some businesses in 2027 under the proposal. 

The proposal also includes cuts to programs and services, such as the closing of the Mission Creek Corrections Center for Women in Mason County, three reentry centers, and two residential habilitation centers. 

Proposals to pause board bonuses for educators and to pause expansion of child care assistance eligibility are also included in Inslee’s budget.

In total, Inslee’s proposal would grow state spending to $79 billion for the 2025-27 biennium, an increase from the current two-year $72 billion budget. 

Democratic legislative leaders thanked Inslee in statements Tuesday, and called for building a “responsible, sustainable budget that reflects our shared values.”

“It’s clear we must balance the need to protect essential services with smart, strategic choices that help working families, strengthen our economy, and address growing income inequality,” said Sen. June Robinson, D-Everett, chair of the Senate Ways and Means Committee. 

Republicans criticized the proposal, saying the deficit was “caused by overspending, not by a recession or a drop in revenue.” 

“The governor could have come up with a budget that lives within the additional $5 billion in revenue that is anticipated. Instead, he wants to spend even more and impose additional taxes on Washington employers to help make up the difference. When the cost of doing business goes up, consumers feel it too. His budget would make living in Washington even less affordable,” said Sen. Chris Gildon, R-Puyallup, Republican leader on the Senate Ways and Means Committee. 

Lawmakers will return to Olympia on Jan. 13 to begin the legislative session, and will have 105 days to hash out the state’s budget as well as pass other new laws. 

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Seattle City Councilmember wants to stagger election years

buttons and stickers saying "i voted" sit on a table

“I Voted” stickers at the King County Elections headquarters in Renton on Tuesday, Nov. 2, 2021. (Jovelle Tamayo for Crosscut)

Seattle City Councilmember Teresa Mosqueda wants to shift future Council elections to limit mass turnover of councilmembers and the brain drain of institutional knowledge that comes with it.

The City Council comprises seven district representatives and two citywide at-large positions, all of which are four-year terms. The district elections and at-large elections are held two years apart.

Mosqueda is proposing staggering elections instead of electing all seven district positions at once, which Seattle voters have done since 2015. In addition, she wants to move election years for one of the Council’s two at-large positions.

This November’s district Council elections illustrate how the current system sets Seattle up for potential major change every four years.

This year, only three of seven district councilmembers are seeking reelection, guaranteeing at least four new faces in City Hall next year. And of course the three incumbents could also lose their races. On top of it all, Mosqueda, an at-large councilmember, is running for King County Council and has a strong chance of winning, so it’s possible eight out of nine city councilors will be new to the job next year. 

“I think this would be a really positive way for us to ensure greater stability and continuity as we look to serve members of the community and help reduce a large number of seats turning over all at once,” said Mosqueda during the Sept. 14 Finance and Housing Committee meeting.

Mosqueda’s proposal is to shift the elections for Districts 2, 4 and 6 by two years to align with at-large position 8, as well as with mayoral and city attorney elections. She has also proposed moving elections for at-large position 9 by two years so it aligns with elections for odd-numbered district Council positions.

To make that election shuffle work, there would need to be elections for special two-year terms for Council position 9 and district positions 2, 4 and 6. These positions would then run again for their regular four-year terms, and the new system would be fully in place by 2030.
 

a chart showing how elections will be staggered
A chart by City Council central staff showing how the system would be implemented over six years.

Seattle voters created the district City Council system with the passage of a 2013 ballot measure, Charter Amendment 19.

Councilmembers Alex Pedersen, Lisa Herbold and Sara Nelson expressed varying degrees of concern about staggering Positions 8 and 9, the two at-large elections. Nelson said that the original intent of running at-large elections at the same time as mayoral elections was to force an at-large councilmember to choose between their own reelection or to run for mayor.

The logic, as Nelson explained it, is to prevent a scenario where an at-large councilmember runs for mayor, loses, then spends the rest of their Council term at odds with the winning executive. Granted, there’s nothing stopping a district councilmember from running a losing campaign for mayor, keeping their seat for the remainder of their term and finding themselves similarly at odds.

For Mosqueda’s proposal to become reality, the full City Council would first need to adopt a resolution in support of the idea. It would then be up to Seattle voters to pass a charter amendment on the November 2024 ballot.

Inslee, Gregoire endorse Bob Ferguson for Washington governor

A picture of Washington state Attorney General Bob Ferguson, who is running for governor.

Washington Attorney General Bob Ferguson. (Courtesy of Bob Ferguson)

Washington Gov. Jay Inslee, King County Executive Dow Constantine and former Gov. Chris Gregoire have endorsed Bob Ferguson for governor in 2024. 

The announcements came this weekend as Ferguson, the state attorney general, officially kicked off his gubernatorial bid with campaign stops in Seattle, Spokane and the Tri-Cities, according to a news release.

“I’ve worked closely with Bob Ferguson and watched him work to hold powerful interests accountable and defend the core freedoms, including reproductive freedom, of every Washingtonian,” Inslee said in a statement distributed by the Ferguson campaign. “He knows how to win and deliver for Washingtonians."

With Inslee opting not to run again after three terms, the open governor's contest has drawn two fellow Democratic statewide elected officials: Ferguson and Public Lands Commissioner Hilary Franz. In a statement Monday, the Franz campaign announced endorsements by the local firefighter unions in Bellevue and Shoreline. They “join hundreds of other firefighters in Vancouver, Wenatchee, Spokane, Spokane County, and Walla Walla in endorsing Franz for governor,” according to the statement.

Also running is state Sen. Mark Mullet, a moderate Democrat from Issaquah, who has previously clashed with Inslee. In a social media post ahead of the weekend’s endorsement announcement, Mullet characterized Washington’s high prices for housing and fuel in recent years, declaring, “Gov. Inslee’s endorsement of my opponent indicates there will be more of the same under his leadership.”

The race has also drawn former U.S. Rep. Dave Reichert, a moderate Republican, and Semi Bird, a conservative who was recalled last month by voters from his position as Richland School Board member. The August 2024 primary election will narrow the field of these and other candidates to the two top vote-getters, who will advance to the November 2024 ballot.

Federal judge lifts most judicial oversight of Seattle police

Seattle Police in Seattle's Capitol Hill neighborhood

Members of the Seattle Police Department on Capitol Hill, July 25, 2020. (Matt M. McKnight/Crosscut)

A federal judge has ended most judicial oversight of the Seattle Police Department, nearly a dozen years after a federal “consent decree” was issued demanding reform.

U.S. District Judge James Robart said on Wednesday he would continue to monitor Seattle Police in the following areas: officer accountability, including decisions reached during collective bargaining, and use of force in crowd management. But Robart essentially agreed with the city and the U.S. Justice Department that Seattle Police had met most of the requirements of the consent decree.

Seattle Mayor Bruce Harrell called the judge’s ruling a critical milestone in the city’s efforts to reform policing, and said it showed the department had made significant changes in its approach to crime, behavioral health incidents and professional standards.

“I am grateful for the excellent work of our police officers that brought us to this point,” the mayor said in a statement. “I am also thankful for the people of Seattle who have, from the beginning of this journey 12 years ago, wanted a police service that is fair, respectful, and effective in keeping everyone safe in every neighborhood.”

The mayor acknowledged there was still work to do in improving police accountability, and promised to keep working with the citizen advisory board to make sure reforms are maintained. 

The Bremerton High School football coach who won a U.S. Supreme Court ruling that said school employees had a right to practice “private personal prayer” on the field has resigned after one game.

Assistant football coach Joe Kennedy submitted the resignation letter to the Bremerton School District this week, the district confirmed on its website. The resignation is pending board approval at Thursday’s regularly scheduled meeting. District spokesperson Karen Bevers told Crosscut that the district would not make any additional statements.

Kennedy confirmed his resignation in a prepared statement on his website:

“I believe I can best continue to advocate for constitutional freedom and religious liberty by working from outside the school system so that is what I will do. I will continue to work to help people understand and embrace the historic ruling at the heart of our case. As a result of our case, we all have more freedom, not less. That should be celebrated and not disrespected,” said Kennedy.

Last year the Supreme Court ruled in Kennedy’s favor and ordered the district to offer him a football coaching job for this season.

His lawsuit gained national prominence as it progressed through the court system as a potentially precedent-setting religious-freedom case, which also was expected to show the effect of the U.S. Supreme Court’s first year with a strongly conservative majority.

The court ruled that Bremerton School District administrators violated Kennedy’s rights when they asked him to stop praying with players on the 50-yard line after games, which Kennedy said he had done regularly since he started coaching at the high school.

A person stands on the 50-yard line on a high school football field.
Bremerton High School assistant football coach Joe Kennedy stands at the center of the field on the 50 yard line at Bremerton Memorial Stadium, Nov. 5, 2015. (Larry Steagall/Kitsap Sun)

The controversy stirred up a media circus during the 2015 season. During one game, members of the public rushed the field to pray alongside Kennedy. At another, a group of Bremerton High School students invited Satanists to pray on the field.

When the district suspended Kennedy with pay in 2015, district administrators said in an announcement at the time that his actions possibly violated the First Amendment’s establishment clause, which states that the government will not favor one religion over another. The following season, Kennedy did not apply to continue his football contract with Bremerton High School, though his lawyers maintained that this was the same as being fired.

Kennedy, who moved to Florida several years ago to help his wife’s family through medical issues, told right-wing personality Glenn Beck last year that he intended to return to Bremerton High School.

“I'm a man of principle, I guess. And that's my hometown. My kids … live right by the school. All my family's there, all my friends.”

Kennedy returned to the Bremerton Knights last month in the run-up to the football season, and was included in off-season communications. The Knights’ season opener was a home game against an out-of-conference high school team, the Mount Douglas Rams from Victoria, B.C., five days before he submitted his resignation.

WA Proud Boy Ethan Nordean sentenced for Jan. 6 insurrection

A man in a backwards hat speaks into a megaphone amidst a crowd

Proud Boy member Ethan Nordean walks toward the U.S. Capitol in support of President Donald Trump on Jan. 6, 2021. (AP Photo/Carolyn Kaster)

A federal judge Friday sentenced a Washington resident and leader of the Proud Boys to 18 years in prison for helping to storm the U.S. Capitol during the Jan. 6, 2021 insurrection.

Ethan Nordean, of Auburn, also received 36 months of supervised release, according to a news release by the U.S. Department of Justice. Nordean, 33, is one of several members of the Proud Boys to be sentenced this week by U.S. District Court Judge Timothy J. Kelly.

A group of right-wing street brawlers, the Proud Boys played a role in the attempt to prevent the peaceful transfer of power as former President Donald Trump sought to overturn the results of the 2020 election.

In May, a jury found Nordean guilty of six federal counts, including seditious conspiracy, destruction of government property and conspiracy to obstruct an official proceeding.

Along with Proud Boy members Enrique Tarrio, Joseph Biggs, Zachary Rehl and Dominic Pezzola, Nordean “participated in every consequential breach at the Capitol on January 6,” according to a sentencing memo by federal prosecutors.

“Nordean led a group of nearly 200 men to the Capitol and onto Capitol grounds,” according to another sentencing memo by the federal government. “He immediately moved to the front of the throng and took action by tearing down the fence, which permitted the rioters to proceed further into the restricted area.”

“He defied law enforcement’s calls to disperse, and he ignored calls from his own men to leave. Nordean was there to use force against the government and lead what he viewed as a second American Revolution …” according to the memo, which requested a 27-year sentence for Nordean.

An email from Crosscut to Nordean’s attorney seeking comment was not immediately returned, but his attorney submitted a sentencing memo which stated in part: “The penalties Nordean has already incurred as a result of this case are sufficient to deter him from ever again entering the Capitol, protesting there, and recidivating.”

More than 1,100 individuals have been arrested since the insurrection, according to the Department of Justice.

Share a photo that shows the soul of your Seattle neighborhood

Fremont’s beloved piece of public art, "Waiting for the Interurban"

Fremont’s beloved piece of public art, "Waiting for the Interurban," was dressed up with face masks in April 2020. (Matt M. McKnight/Crosscut)

Hello creative Seattle. While you’re considering who to vote for in November, take a few minutes to think about how you picture your City Council district. Where is the heart of your district? What image represents your community’s place in Seattle?

Does the Fremont Troll best represent District 6? Or is it Waiting for Interurban? Or something else?

Here’s your chance to participate in the Nov. 7 election and show off your artistic vision. Crosscut is asking the voters of Seattle to submit photos of their City Council districts, and we will choose our favorites to illustrate our district election profiles.

This handy district map on the Seattle page of our voter guide will help you find your district or help you submit a photo of another district. Submit your photos here and please let us know why you think this photo best represents your district.

We’ll give the photographers credit for their winning photos, of course, and send you some Crosscut swag as thanks for contributing.

What questions do you have for 2023 WA local election candidates?

Ballots are sorted at the King County Elections headquarters

Ballots are sorted at the King County Elections headquarters on Aug. 5, 2019 (Photo by Dorothy Edwards/Crosscut)

Hello Crosscut readers, what’s on your mind? What questions do you want us to ask the candidates for the local elections in your city? What do you need to know before deciding how to mark your ballot for the Nov. 7 election?

Crosscut’s election coverage is inspired by The Citizens Agenda. Instead of just letting candidates set the campaign agenda, we ask the public what issues they want candidates to talk about on the campaign trail.

We will be asking each candidate mentioned in our voter guide two questions. This is where we need your help. Please submit your ideas here for what you think those questions should be. The best questions require candidates to share a specific idea on how to address the challenges unique to your community. Please stay away from questions they can answer with a yes or no.

Instead of attending a public forum where you may hope to get your questions answered, ask them in a much bigger room, where the answers can be seen by everyone who visits the Crosscut voter guide. Become part of Crosscut’s citizens agenda and help yourself as well as your neighbors.

The general election voter guide will be posted in mid-October.

WA’s third carbon auction should push pollution credits over $1B

A Tesoro Corp. refinery, including a gas-flare flame

This April 2, 2010 file photo shows a Tesoro Corp. refinery, including a gas-flare flame that is part of normal plant operations, in Anacortes, Wash. The Washington Department of Ecology is releasing its report on the first-ever state carbon auction. (Ted S. Warren/AP Photo)

Washington will hold its third carbon auction on Wednesday under its new cap-and-invest  program.

The first two auctions sold pollution credits totaling about $800 million. The third is expected to put the total for the year well over $1 billion.

This is the first year of implementing the state’s new Climate Commitment Act, which passed in 2021. Businesses generating more than 25,000 metric tons of carbon emissions must participate in the program or face fines of up to $10,000 per violation per day. 

During the 2023 legislative session, lawmakers made decisions about how to spend the money raised through these auctions, focusing on projects to slow or adapt to climate change. Those investments include money to electrify buses and ferries and build a charging infrastructure, restore salmon habitat, accelerate clean-energy projects and help ease the burden of pollution on vulnerable communities.

The May auction sold pollution for more than $500 million. The February auction raised almost $300 million. 

The Washington Department of Ecology announced this week that the May auction sold nearly 8.6 million 2023 allowances and another 2.5 million 2026 allowances. Each unit represents one metric ton of greenhouse gas emissions.

The price on carbon was higher at the May auction, where bids were received almost entirely from energy companies and utilities. 

 

Group asks U.S. Supreme Court to strike down WA capital gains tax

The U.S. Supreme Court building

The U.S. Supreme Court building (Associated Press photo)

A conservative advocacy group has filed an appeal with the U.S. Supreme Court to challenge Washington’s capital gains tax.

Passed by the Legislature in 2021 and signed into law by Gov. Jay Inslee, the tax on some capital gains was upheld this spring by the state Supreme Court in a case known as Chris Quinn v. State of Washington.

In a 7-2 decision, the court upheld the 7% tax on profits from the sale of stocks and bonds over $250,000, ruling that it is not a tax on income, which could have led to it being struck down. The court instead ruled that it is an excise tax.

Now the Freedom Foundation is appealing to the U.S. Supreme Court, according to a statement by the advocacy group. The appeal contends the tax “violates the Commerce Clause of the U.S. Constitution, which reserves to Congress the right to regulate interstate commerce, thus depriving states of the ability to do so.”

“If the Supreme Court decides to accept the case and concludes that the tax violates the Commerce Clause, it could strike down the entirety of the tax and potentially open the door for the refund of taxes previously paid,” according to the statement.

In response, the executive director for Invest in WA Now claimed that those challenging the tax “are desperately trying to grab $800 million a year from Washington’s child care and education to give it to ultra-millionaires and billionaires.”

“Polls show Washingtonians strongly support making the wealthiest pay what they truly owe in taxes for services all of us depend on,” Treasure Mackley, whose advocacy organization has supported the capital gains tax, said in a statement. “Only when we have a fair tax code can we undo decades of racism and disinvestment that hurts families, communities, and small businesses.”

Superintendent of Public Instruction Chris Reykdal now has two challengers for the 2024 race to run Washington’s education department.

Reid Saaris, who started national education nonprofit Equal Opportunity Schools, announced his run on Wednesday, joining former state Rep. Brad Klippert, a Republican from Kennewick, who registered with the PDC and launched a campaign website earlier this year.  They both challenge Reykdal, who announced a bid for a third term earlier this year.

The Office of Superintendent of Public Instruction oversees state school budgets and statewide education policies. It is a nonpartisan position.

Reykdal, Klippert and Saaris are so far the only people who have registered with the state Public Disclosure Commission, which enforces state campaign finance laws, including reporting contributions and expenditures. The official candidate declaration period for the 2024 election starts next May.

Saaris, who grew up in Bellevue, was a teacher in South Carolina before spending 10 years heading the nonprofit that helped students of color and low-income students enroll in advanced high school courses. On his website, Saaris said his priorities include focusing on tutoring opportunities, student mental health, post-high school education and career development.

Reykdal, who had served on the Tumwater School Board and in the state Legislature before being elected state superintendent in 2016, said his priorities in his third term include increasing support for student mental health, expanding technical education, providing universal access to school meals and fully funding education.

Klippert, who left the state Legislature in 2022 for an unsuccessful bid to unseat U.S. Rep. Dan Newhouse, said he would focus on providing more school choices, including some charter schools and online schools; re-examining the state school funding formula; and increasing transparency in school curricula and budgets.

Correction: Feb. 20, 2024. An earlier version of this article incorrectly stated the date of the filing period of the 2024 election.