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WPD Calls For Governor to Veto Corporate Tax Breaks

ACTION NEEDED!

Please CALL GOV. INSLEE: 360-902-4111 on Thursday, July 6!

Parents are asking Gov. Inslee to veto a huge new tax cut for businesses that was created in the budget deal.

Here’s the story: Even as legislators failed to fully fund public schools, they added a section to the funding bill (SSB 5977) that reduces the Business & Occupation Tax (currently 0.484%) for manufacturers to Boeing’s 0.2904%. That’s a 40% reduction in this business tax rate and it could cost the state as much as $40 million a year. (For perspective, the state could fully fund the Breakfast After The Bell program for just under $3 million a year.)

Please call Governor Inslee (360-902-4111) on Thursday, July 6 and ask him to to veto this new tax cut. Doing so wouldn’t require vetoing anything else. This tax cut never never got a hearing in the House Finance Committee–there’s no way to justify this.

If you can’t call on Thursday, please email the Governor at this link: http://www.governor.wa.gov/contact/contact/send-gov-inslee-e-message.

If you want some talking points for your call or email, here is a letter that WPD sent to Governor Inslee’s Chief of Staff and Director of External Affairs urging him to veto this tax cut:

Dear Mr. Postman and Ms. Smith:

We are writing on behalf of Washington’s Paramount Duty’s 10,000 parents and public school advocates. We urge Governor Inslee to improve the health and sustainability of the recently-approved funding for public schools by vetoing the section of SSB 5977 that reduces the Business & Occupation (B&O) Tax rate for manufacturers to 0.2904 percent from the current rate of 0.484 percent. This tax cut, costing at least $40 million per year, leaves the state government with less flexibility and resources to fund our schools, especially in the event of an economic downturn.

Both the content of the tax cut and the process by which it was included in the budget provide a strong justification for veto action.

We need only look at the State of Kansas to see the disastrous impacts of these kinds of corporate tax cuts. When the Governor of Kansas signed major business tax cuts into law, the result was a nationally-known disaster for the state’s schools and even the state’s economy.

We share the legislature’s desire to help boost the rural economy. But we also believe one of the best ways to do that is by fully and amply funding their public schools. It may be possible that this tax break may ultimately benefit schools and rural communities. We have no way to know whether that is true, because no analysis was conducted on this proposal. There is no fiscal note.

Instead, as the Seattle Times demonstrated, this tax cut was added at the very end of secret negotiations. This tax cut is a major change to our state’s revenue system. It should have been proposed, analyzed, and debated in public. Perhaps this proposal would have been a good idea as part of a larger plan of tax reform. It is not a good idea as something included at the 11th hour.

We urge you to veto the relevant section of SSB 5977 and ask the legislature to revisit the manufacturing tax cut in full public view, with rigorous analysis of the proposal and its fiscal impact, particularly on our still-underfunded public schools.

Sincerely,

Tali Rausch
President, Washington’s Paramount Duty

Summer Stinson
Vice President, Washington’s Paramount Duty

WASHINGTON’S PARAMOUNT DUTY STATEMENT ON PROPOSED EDUCATION FUNDING PLAN

While the legislature’s proposed education funding plan includes a significant increase in funding for our public schools, it falls well short of what is required by the courts and the constitution.

This deal runs a serious risk of failing to meet those requirements, failing to meet the pressing needs in classrooms across the state, and relies on unstable funding sources. If this deal passes, it may not mean the end of the McCleary case – this year, this decade, or this generation.

In 2016 Washington’s Paramount Duty estimated the cost of fully funding public education – specifically, the basic education promised by the legislature in 2009 in bills ESSB 2261 and 2776 – to be about $8 billion a biennium. Legal counsel for the McCleary plaintiffs estimated the sum was $10 billion a biennium, with at least $5.6 billion needed just for the next school year alone in order to meet requirements for materials and operations, teacher salaries, and smaller class sizes.

The deal legislators reached this week would provide an extra $7.3 billion over the next four years. This is less than half the money required to fulfill the constitutional and court-enforced right to a fully and amply funded education.

This deal also undermines the voter-approved initiative to reduce class sizes, providing that smaller class sizes would only become part of a basic education requirement if the legislature chooses to fund it. This is circular logic, and flies in the face of evidence and common sense that students learn better and have all their needs met when teachers can provide more attention to them in a classroom with fewer students.

We have already heard from parents and teachers across the state who are concerned that the sweeping changes to teacher pay would make it even more difficult to attract and retain good teachers in our schools. Capping teacher pay at $90,000, as well as the elimination of the “staff mix” model and limits on bargaining, combine to limit the ability of teachers to make a living and remain as residents of our own communities.

The McCleary case was never about reforms to the way teachers are paid. We see no reason for these risky changes to be made, certainly not with so much haste and so little public scrutiny.

We are also troubled by the methods used to pay for this half measure. The Supreme Court held that education funding must be regular and dependable. A property tax increase does not meet that standard, especially when the legislature maintains a 1% cap in future years on property taxes. This has the effect of eroding the property tax revenues that go to schools, meaning it’s no longer regular or dependable.

The legislature’s decision to limit local levies is another risky move. If the legislature fails to adequately fund basic education, or if districts’ costs rise above what legislators are willing to pay, those districts will be facing significant cuts, undermining the intent of the McCleary decision.

More importantly, using the property tax to fund schools is regressive and hurts the poor and the working families for whom a public education is particularly important. Many families will be unable to pay these costs, especially at a time when housing costs in many Washington cities are rising fast.

Washington State is home to some of the world’s richest individuals – and yet we have the most regressive tax system in the United States. The legislature’s decision to make poor people pay without asking the rich or big businesses to pay more is unconscionable, particularly when the same budget deal opens millions in new tax breaks for business.

We understand that legislators are worried about a government shutdown. We are too. On the other hand, it is hard to believe that avoiding a shutdown now is worth the price of continuing to underfund our schools and make poor people pay more in housing costs for years to come.

Students across Washington State are asked to attend schools that don’t have heat in the winter, that don’t have new textbooks, that don’t have a full-time nurse on duty, that don’t have librarians or new books, or counselors to help guide them to college or a career. It’s not clear that this deal will fully address these and other urgent needs, particularly since there are no provisions for capital expenditures in this budget. We urge the legislature to urgently address capital requirements for schools by passing a bill that provides the $2 billion necessary to ensure children across Washington attend schools that are safe, secure and have the capacity to accommodate the lower class sizes that voters have voted for and that we know provide a better learning environment for all students.

Legislators may be exhausted and tired after a few weeks of work. But parents are exhausted and tired after years of unpaid work to plug the gaps in funding for our underfunded public schools caused by legislators’ dereliction of their duty. We call on legislators to reject this deal and fix it to address the issues we have identified above. If they pass this education funding plan, we will have no choice but to urge the Supreme Court to reject it and order the legislature to do better.

Actions 4 Education

Olympia is in budgetary deadlock and yet there is work to be done. WPD is continuing to advocate during special session(s) and ask you to please review and engage in these Actions 4 Education to amplify our collective voice in calling for new and fair revenue to fully fund education:
 
1. UPDATE on the Senate Republicans’ Property Tax Hike
 
Washington’s Paramount Duty does not support the Senate Republicans’ controversial proposal to significantly increase property taxes across the state, especially through a so-called “levy swap” or “levy swipe.” We have heard concerns from parents and teachers in communities across the state that this would not solve the financial woes facing our schools, and could create an unfair burden on poorer residents of our state’s urban communities.
 
The Senate Republican plan does not fulfill the requirements of either the state constitution’s paramount duty clause, or the terms of the McCleary decision. It would not provide sufficient revenues for public schools, nor would it fund schools equitably. Despite what some claim, the Supreme Court did not order any kind of “levy swap” as part of the McCleary decision. They instead concluded that the State must pay for the actual costs to cover the school districts’ delivery of basic education to all students.
 
The Senate Republican plan would lead to a property tax hike in nearly all school districts in the state. This is because their stingy funding proposal does not provide ample funds for districts to meet all their educational needs. Many districts will need to pass a local levy for services not covered in the Senate Republicans’ narrow definition of basic education. When that happens, property taxes will rise — even in districts some Senators claim will see a property tax cut.
 
More importantly, enacting a “levy swap” would force Washington to continue to rely upon the same regressive tax system that has proven unable to provide regular and ample funding for our schools. Washington’s Paramount Duty has consistently urged the Legislature examine and consider closing corporate tax loopholes, and pass a capital gains tax, in order to provide the regular and ample funding our schools are owed.
 
A sizable property tax increase would also accelerate displacement of low-income households and communities of color from cities and neighborhoods in our state. Despite what some Senators claim, the “levy swap” is inequitable. It penalizes low-income households for living in a city with high property values.
 
For all of these reasons, Washington’s Paramount Duty opposes a “levy swap” and plans to increase property taxes. There is plenty of money in closing corporate tax loopholes to fund our public schools.
 
2.  CONTACT these Republican Leaders and Share Your Concerns
 
Senator Joe Fain: Joe.Fain@leg.wa.gov, (360) 786-7692
Senator Brad Hawkins: Brad.Hawkins@leg.wa.gov, (360) 786-7622
Senator Mark Miloscia: Mark.Miloscia@leg.wa.gov, (360) 786-7658
Senator Steve O’Ban: Steve.O’Ban@leg.wa.gov, (360) 786-7654
Senator Ann Rivers: Ann.Rivers@leg.wa.gov, (360) 786-7634
Senator Maureen Walsh: Maureen.Walsh@leg.wa.gov, (360) 786-7630
Senator Hans Zeiger: Hans.Zeiger@leg.wa.gov, (360) 786-7648
 
Here’s a suggested email/call script:
“I do not support a massive property tax to amply fund our schools. This would place an unfair burden on our low-income households. Also, it is not a fair and sustainable revenue solution to fill the gap needed to fully fund our education system, from early learning through higher ed, as well as social services. I ask you to consider more fair and sustainable sources of revenue including a capital gains tax and pulling back less efficient tax breaks on corporations which would help insure that everyone pays their fair share.”
 
3. HOLD WA’s Realtors Association Accountable
 
The WA REALTOR Political Action Committee (R-PAC) is spending a lot of money promoting the Senate Republicans’ budget plan, which would lead to a massive property tax increase while providing less funding for schools in certain districts. They are also running TV ads attacking legislators who share Washington’s Paramount Duty position that we need new and fair revenue to amply fund our schools. 
 
Forty percent of real estate agents are registered with WA REALTORs, but probably don’t realize that their dues are being spent to undermine our schools and even our ability to afford homes. Our homes, our communities, and our schools will be stronger by passing something like the House Democratic plan, which asks the wealthy and big businesses to help fund education. We need to let the people running WA REALTOR know that they’re making the wrong choices — and need to stop undermining our communities and our schools.
 
A: Are you a homeowner? 
Email the below contacts and share your concerns about the
Washington State REALTORS’ lobby and political action committee position.  Tell them to stop lobbying against solving our education funding crisis:
 
Here’s a suggested subject line and email script:
SUBJECT LINE: Education Funding, No Harmful Cuts, New State Revenue, Now! 
 
As a homeowner/parent/someone who cares about fully funding education, I am concerned about the Realtors’ Political Action Committee (R-PAC) and its efforts against any revenue reform—our state needs new revenue to fully fund our schools without cutting safety net social services. Quality schools make economic sense and are a #1 motivator for homebuyers—our state is in contempt for not amply funding schools and our legislators need your support for identifying new sources of revenue, including an increase in the real estate excise tax (REET) for properties sold over $1 million.
Sincerely,
Name
Address
 
B:  Are you a Realtor? 
Tell WA REALTORS and RPAC “Not In My Name!”
    • R-PAC (Realtor PAC and lobbying arm) Government Affairs Director, Nathan Gorton: Nathan.Gorton@ warealtor.org
    • Margo Wheeler-Willis your current Washington State REALTORS President at  margorltor@gmail.com and ask for your R-PAC dollars to be diverted away from the PAC and to general education funds.
    • If you live in King County, please also contact Seattle/King County Realtors Association President Sam DeBord, at sam@seattlehome.com
    • Consider copying your legislator and us at info@paramountduty.org
 
4. READ and LEARN More About Why the Senate Republican’s Levy Swap Proposal Doesn’t Work

An Open Letter to the Washington State Senate Republicans

Monday, May 8, 2017

An Open Letter to the Washington State Senate Republicans

To our Republican Senators,

We are almost midway through the special legislative session and the popular wisdom among stakeholders, the public, and the press is that Senate Republicans are refusing to come to the negotiating table to have “four corner” budget negotiations across the aisle and with the House of Representatives.

As parents who have engaged with the legislative process — many of us for the first time — we are deeply dismayed. This is supposed to be the year when education is fully funded, per the timeline you, yourselves in the Legislature set out for itself in response to the McCleary decision. Budget decisions made now for the upcoming biennium will determine how much funding schools have in September 2018, the deadline by which the Legislature promised the Supreme Court and the public to fully fund schools.

It has been reported that Senate Republicans are refusing to negotiate until the House votes on its revenue plan. We respectfully ask you to consider that the only action you have within your control is your willingness to be active participants towards a common solution. Or, as we tell our kids: two wrongs do not make a right. Refusing to negotiate doesn’t help matters, it merely prolongs the process needlessly and delays moving forward toward a bipartisan compromise solution.

We also understand that a number of Senate Republicans do not feel the need to adhere to the Supreme Court’s McCleary ruling. We respectfully suggest that no matter your ideological or political views, or your unique personal legal interpretations, your constituents and the families of children in the public school system of this state are waiting for your leadership, and for a budget and a plan that will do right by the children of our state.

A public hearing was held by your Senate Ways and Means Committee on Wednesday, April 26th for Senate Bill 5929, an identical version of HB 2186. Your prime sponsor, Senator Dino Rossi, explained that he “brought the bill forward so everyone can have their say.” Dozens of students, teachers, parents, families, firefighters, real estate agents, small business owners, and many other private citizens invested their afternoon and evening that day into your process, testifying over and over that they are in support of this bill, and of the capital gains tax and other revenue sources proposed therein. Our understanding is that between those who testified and those who signed in, 263 were pro and 89 con, a nearly three-to-one ratio. We hope you take at face value the words and actions of your constituents and others who took the time to testify, as they took your request for public input and feedback on the proposed bill. We hope you heed their support for new, fair, sustainable revenue, and that you act accordingly.

Every day you are making a conscious, deliberate choice, whether to be the servant leaders that your promised the voters in your districts, or to be political obstructionists. To lead us towards a proactive solution, or to play political games with our children’s future. We ask that you come to the negotiating table in good faith and that you wield the power entrusted in you to pass legislation to fund schools fairly. Both the authority and the responsibility rest on your shoulders, as does the blame for inaction.

We call on Republican Senators, and the Majority Coalition Caucus as a whole, to:

●  Fund the great schools we were promised with the passing of SBH 2776 and ESHB 2261 in 2009 and 2010. The prototypical school model has been amended over a dozen times to address structural issues. These amendments and the model itself remain unfunded mandates – it is time to amply fund them. Now.

●  Fund K-12 schools and mental health care, anti-poverty programs, homelessness assistance, higher education, and early education programs. We cannot balance the budget on the backs of our lowest income families. Stop pitting schools and services against each other.

●  Work with House colleagues to pass meaningful accountability measures, such as job creation and retention and subsidy clawbacks, for tax breaks provided in the billions of dollars to major corporations. HB 2145 is a great start.

●  Recognize that the unprecedented property tax increase through the “levy swap” proposed in SB 5607 / SB 5875 passed by the Senate will create an unfair burden on the poorer residents of our state’s urban communities. The inequities that exist between Washington’s urban and rural areas also exist within the state’s urban centers. Although some school districts may be comparatively “rich” as a geographic whole, this hides the fact that many urban and suburban residents in those districts do not share in that prosperity, struggle to make ends meet, and already carry a disproportionate share of the tax responsibility in our state, exacerbated by our state and local reliance on regressive mechanisms like sales and property taxes.

●  Consider that it is time for wealthy individuals and large corporations—who pay relatively little in taxes right now—to pay their fair share. Washingtonians with the lowest incomes pay seven times more in taxes as a share of personal income than the richest one percent. This upside- down system must be fixed to generate the revenues needed to fund our schools. The House capital gains tax proposal is an excellent start: this tax would diversify our state’s tax base and make it more sustainable and dependable. Nearly every other state, including Republican- controlled Idaho, has one. Most of the new revenue from a capital gains tax would be paid by the richest 1% of households — meaning those with incomes of at least $490,000 per year — and therefore would impact very few of your constituents, particularly in those areas of the state that have lower economic growth.

As parents, we see the basic choice facing you in the Legislature as this: will you continue to prioritize tax cuts for businesses and the wealthy, or will you fully fund education for the 1.1 million public school students in this state? The question and implications are very simple and clear.

It is time to weigh the full scope of what is right in terms of the state’s fiscal choices. We ask you to work to eliminate wasteful tax breaks for corporations and wealthy individuals to provide:

●  Enough teachers in our schools so that no elementary school classroom has 30 students. Class size makes a difference to the quality of learning.

●  Full-time nurses so that children do not have to rely on administrative staff when facing serious health situations such as a seizure, an allergic reaction, or an asthma attack. No more children should die in Washington schools because you didn’t pay for a full-time nurse.

●  Counselors who can support children who are homeless, traumatized, or otherwise facing difficult life circumstances that interfere with their academic success. Poverty is a statewide issue, so even our wealthiest school districts educate many homeless children.

●  Guidance counselors to support high school students in determining their opportunities and choices in higher education, the workforce, or public service after high school.

●  Librarians so that a school library, and the unparalleled access to enrichment that comes with it, is never closed to a student because the school can only afford a part-time librarian. Not to mention school libraries that are actually well-stocked and up-to-date with sufficient and appropriate books for all students.

●  A well-rounded curriculum for all students — not just those that attend schools with large PTA fundraisers — that includes art, music, drama, languages, technology, and sports.

When it comes to funding, tax incentives and the decision not to tax the wealthy represent significant, real-life opportunity costs – the money that goes to these overt and covert tax breaks means fewer dollars to ensure our children have safe drinking water, books on their library shelves, and support services in their schools where they spend so much of their lives.

No matter where you stand on the political spectrum, the fact remains that our state is facing a crisis of education funding and is relying on you, our legislators, to work towards solving that crisis. We hope you will choose to do what is right by the 1.1 million public school students in this state. Please stop stalling and start negotiating in good faith, so that you will meet the promised, bipartisan deadline you yourselves set to fully fund Washington’s schools.

Sincerely,

Tali Rausch
Board President, Washington’s Paramount Duty Volunteer Advocate
Mother of 3 public school students

League of Women Voters Honors WPD with “Making Democracy Work” Award

Celebrate with us at the LWV Seattle-King County Voices of Democracy Gala! 

 

WPD is delighted to announce that the League of Women Voters of Seattle-King County are honoring us with their “Making Democracy Work” Award! This award is given to individuals and organizations who have helped King County residents raise their voices in support of equality and civic discourse.

We will celebrate – along with other recipients – at the LWV’s inaugural Voices of Democracy gala this coming Friday, May 12 (see the link below for further details).

WPD was founded as a Facebook group in September 2015 and incorporated as a 501c4 in 2016. Since our inception, we’ve focused on ensuring parents’ voices are heard in Olympia in the debate over how to fund our schools. Prior to the founding of WPD, lawmakers were apt to say they heard more from constituents about backyard chickens than about school funding. We have changed that. Our voice – and by that we mean the voices of parents – is now being heard loudly and clearly in Olympia. And that is not going to change. Because whatever the outcome of the special session, WPD will keep testifying and rallying and calling lawmakers and attending town halls and other forums, and organizing to help parents and allies advocate for equitable, fair, sustainable school funding. We’ll keep ensuring that parents’ voices continue to be heard loudly and clearly by our lawmakers in Olympia and in constituencies around Washington.

 

Meanwhile, please join us and the LWV to celebrate the work they do to encourage informed, active and engaged participation in our democracy. Information about the gala can be found here – the founding members of WPD will be in attendance, and we hope you can join us!

Actions 4 Education!

The legislature is now well into special session. Two weeks ago,  WPD organized and showed up in force to address Senator Dino Rossi’s (R – 45th LD) political stunt of sponsoring SB 5929, an identical version of the House Democrats’ revenue package, HB 2186, at the Senate Ways and Means Committee hearing. The hearing room and two overflow rooms were packed, with even more people in yet another room. 77 people signed in to testify pro vs. 49 signed in to testify con, in addition to 186 more who signed in pro versus 40 who signed in con, for a grand total of 263 PRO vs 89 CON, a nearly three to one ratio. Here’s a link to a Seattle Times piece that ran about the hearing, and here is a link to video of the whole hearing.

WPD will continue to advocate during special session(s) and ask you to please take one (or more!) of these Actions 4 Education to amplify our collective voice in calling for new and fair revenue to fully fund education:

1. Attend an Event!

Snohomish County Education Funding Advocacy Party
Tuesday, May 9th, 7-9 pm
Location: Northshore Education Association https://www.facebook.com/events/213281342501602/

2. Contact your state legislators and ask them to fulfill their paramount duty.
http://paramountduty.org/call-your-legislators/

3. Learn more about Capital Gains Tax

This is an important read about the capital gains tax and who pays it. Republican legislators and big businesses are spending a lot of money to mislead you into thinking that this would hurt small businesses. It will actually help them, and the tax would be paid by the richest investors and the largest corporations.

We saw these special interests on display at the Senate Ways & Means Committee hearing mentioned above, and we will be working to daylight their efforts to protect their pocketbooks rather than support fully funding education without cutting safety net social services, higher ed and early learning.

http://budgetandpolicy.org/schmudget/hedge-funds-vs.-mom-and-pops-the-truth-about-small-businesses-and-closing-the-capital-gains-tax-break

 

4. Join the WPD Dandelion Dash to Olympia

Seattle Public Schools have early dismissal this Wednesday, and we hope you will dash to Olympia in support of the teachers who have been Occupying Olympia since last week. Teachers are maintaining a presence at the Capitol to advocate for amply funding public schools in accordance with our constitutional paramount duty, and we want them to know how much we appreciate their efforts by rallying together in favor of new revenue for our schools! #dandydash

https://www.facebook.com/events/1884116541875846/