Description of Washington Investment Trust (HB 2434 & SB 5938)

• Creates the Washington investment trust as a legacy institution that amasses sufficient capital reserves to address opportunities now and in the future.
• Creates the Washington investment trust commission as the primary governing authority of the trust. 
•  Creates the trust transition board and the investment trust advisory board.
• Exempts the trust from payment of all fees and taxes levied by the state or any of its subdivisions.

Restore Cuts in Early Education; Eliminate Tax Exemptions - 4/13/2011

HB 2078 would restore cuts in early education by eliminating certain tax exemptions

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Washington Investment Trust Revisited - 4/13/2011

The effort to establish the Washington Investment Trust -- discontinued earlier in this session -- is experiencing some degree of rejuvenation. A new budget-related bill, HB 2040, has been introduced.

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A letter from our Legislative Advocate - March 30, 2011

Friends-

Although we currently tax physical fitness services, tanning salon services, and tattoo parlor services, we do not tax elective cosmetic surgery.

We also provide funding assistance for Washington seniors who lack the means to pay for prescription drugs necessary for their health and well-being. Most of the seniors in this group require financial assistance only for help with the copayments that exist in Medicare Part D. Without this assistance, these seniors lose the benefit otherwise available to them through Medicare Part D and suffer the compromised health consequences created when they cannot fill the prescriptions their doctors say they need.

How are these two issues related?

Current budgetary deficits have forced the people we elect to represent us in the state legislature to either find services to cut or find new sources of revenue. The easy cuts have all been made in response to several years of declining state revenues resulting from the economic recession that began in 2008. Now our legislators are forced to consider hard cuts like eliminating funding assistance for seniors who lack the means to pay for prescription drugs.

HB 2022 would require elective cosmetic surgery be taxed as physical fitness services, tanning salon services, and tattoo parlor services are currently taxed in order to generate revenue necessary to continue providing financially challenged seniors with the assistance they need to use their Medicare Part D benefits and to fill the prescriptions their doctors say they need.

While no one likes a new tax, we think taxing elective cosmetic surgery as similar services are currently taxed is better than forcing our older neighbors to go without their prescription drugs.

Action: Contact House Ways and Means Committee Chair Ross Hunter by phone or email (360-786-7936 or Ross.Hunter@leg.wa.gov respectively). Ask Representative Hunter to schedule HB 2022 for a public hearing so that low-income seniors will not suffer the health consequences of going without needed prescription drugs.

Thanks for all your help, and

Peace be with you, Steven Aldrich, MPA Legislative Advocate and Policy Analyst

Funding for Basic Health - update March 12, 2011

HB 1847 repeals tax expenditures that shield those who own private aircraft from excise taxes, block taxes on elective cosmetic surgery, shelter bank profits on home mortgages and out-of-state coal used to produce electricity. The revenue raised by terminating these tax shelters or tax expenditures is dedicated to funding Basic Health to low-income state residents. The bill has still not received a hearing.

Action: Call House Ways & Means Committee Chair Ross Hunter and request he schedule a hearing for HB 1847.

HB 1889 still languishes in House Ways & Means without a vote. A failure to pass HB 1889 deprives legislators of an accurate accounting of more than 500 tax expenditures created as loopholes, special tax preferences or incentives.

It’s a bit like allocating several thousand each month to spend through a revolving credit card account as part of a household budget, and then deciding, without attempting to track how those thousands are spent through the revolving account, whether the family can afford basic goods and services like health insurance and college tuition. The difference is legislators previously allocated $6.5 billion through tax expenditures that create special tax preferences, loopholes, or incentives, which are not clearly accounted for during the budgetary process.

Those legislators are now deciding whether we need to cut Basic Health, and whether we need to reduce funding for higher education, without first doing a full and accurate accounting of what will be spent through tax expenditure programs. Perhaps more importantly, legislators have not determined what returns are created, or even whether a public benefit is created, by those tax expenditures.

Action: Ask House Ways & Means members to take Executive Action to pass HB 1889 out of committee and refer it to Rules.

Economic Justice: Including access to health care - March 12, 2011

Basic Health, Disability Lifeline, and Apple Health for Kids: We need to talk to our neighbors who are doing well about the value of providing for our neighbors who are struggling. The value of our health care safety net (even after accounting for all its holes) is well recognized. (See: http://blog.senatedemocrats.wa.gov/brown/major-reform-health-care/) Keeping that net from developing new holes in a time of projected budgetary deficits will be a challenge. Many feel the only way we can avoid further cuts in services to our neighbors in need is to find ways to increase revenues to compensate for the losses created by the recent recession.

Legislators fear the electorate, in general, is opposed to contributing more to the pooled resources we use to support our state’s infrastructure. Many point to the vote on Initiative 1053 to require a 2/3 majority vote to modify taxes, fees or other state revenues; they also point to the rejection of the tax on pop and candy that would have paid for Basic Health, and they point to the rejection of the tax on incomes above $200,000/year as evidence that most of us are more invested in keeping and controlling our money than we are in working together to care for neighbors who are poor, sick, or hungry.

It is not enough for those of us who feel the world is a better place when we work together to improve our communities and invest to protect the well being of all who are part of those communities to speak to our legislators. We need to also talk to neighbors and get them to help convince those who represent us there is support to do what it takes to maintain Basic Health, Disability Lifeline and Apple Heath for Kids.

Action: Many legislators are having Town Hall Meetings. Take a neighbor to your local Town Hall Meeting and let your elected legislators know you want them to prevent further damage to our health care safety net. Tell them you are willing to increase taxes if that is what it takes to keep everyone healthy.  If you can't get to a Town Hall Meeting - write a letter!

Economic Justice: Access to health care - 3/1/2011

Still no action has been taken last week on HB 1847 that generates more than $100 million/year to fund the Basic Health plan by closing tax loopholes.

Action: Call House Ways & Means Committee Chair Ross Hunter and request he schedule a hearing for HB 1847.

HB 1889, which requires review of all tax expenditures on a biennial basis so that the costs and benefits of these programs are better coordinated with the budget calendar, was heard in House Ways & Means.

Action: Ask House Ways & Means members to take Executive Action to pass HB 1889 out of committee and refer it to Rules.

Basic Health, Disability Lifeline, and Apple Health for Kids: The House and Senate kept Basic Health alive through the end of the current biennium, however, they did eliminate benefits for people earning more than 133% times the federal poverty level: $29,725/year for a family of four. Individuals who fail to document they are legal residents will also lose their Basic Health. It is believe that 17,500 people will lose their Basic Health on March 1, 2011 as a result of these changes.

What is worse, rumors abound there is an increased projected budgetary shortfall about to be announced. This will once again put pressure on legislators to cut Basic Health, Disability Lifeline, and Apple Health for Kids when the 2011-2013 biennium budget is developed.

Action: If you have not already called your representatives and senator to ask they support Basic Health, Disability Lifeline and Apple Health for Kids in the biennial budget, now might be a good time. Tell them they can get additional needed revenue by passing HB 1847.

Economic Issues for Lobby Day! 2/21/2011

Economic Justice:  Support funding for Basic Health Plan (BHP), Disability Lifeline, Apple Health for Kids, and Take Charge family planning. 

The House and Senate have approved the conference committee report for the supplementary budget (ESHB1086) that runs through of June of 2011.  BHP and other programs will be kept, but enrollments are reduced.  The crucial issue now is support and funding for the coming biennium. 

Efforts to provide the needed funds include HB 1847/SB 5816 (prime sponsored by Rep. Cody and Sen. Chase, respectively), which would eliminate tax exemptions for banks on mortgage interest, cosmetic surgeries, privately owned aircraft, and coal use for power generation.  Referred to Ways & Means in each chamber; no action yet.  A referendum may be needed because a 2/3 majority is needed to eliminate tax exemptions via a legislative vote.  A more general bill for tax exemption reform is HB 1889 (sponsored by Rep. Hasegawa).

Economic Justice: Access to health care - Feb. 11

The Budget and Policy Center documented the cost of tax loopholes and suggests a five-point strategy to reduce these costs and to generate additional revenue needed to fund vital services our state has historically provided to help keep everyone healthy. Click here for a summary of the paper. 

The League of Education Voters put together an on-line calculator which lists the budget reductions that can be gained by cutting various services state residents currently rely on, and lists several ways to increase revenue to minimize the cuts required to balance the budget. Click here to test your hand at creating a budget.

• The proposal (HB 1738) to transfer purchase and coordination of Medicaid and State Children’s Health Insurance Program health benefits from DSHS to the Health Care Authority was considered this past week. It is hoped this increased administrative and purchasing coordination will result in increased savings.
• No action was taken last week on HB 1847, which generates more than $100 million/year to fund the Basic Health plan by eliminating certain tax exemptions.

Economic Justice: Access to health care - Feb. 5

The Senate Ways & Means Committee amended the House 2011 Supplementary Operating Budget. ESHB 1086 cuts $254 million from the current biennial budget, which funds state services through June 30, 2011. While the Senate budget cuts more than did either the house or governor’s budget, Basic Health is retained, as is Disability Lifeline, and Apple Health for Kids. Take Charge family planning is also funded through the end of the biennium.

Unfortunately, continued funding of Basic Heath was achieved by eliminating coverage for undocumented state residents (about 12,000). This means Basic Health will be available for about 42,000 state residents. (Click here for additional information).

While this compromise supports the FCWPP goal of retaining the Basic Health plan, it undermines the FCNL goal of “safeguarding the integrity of our society and the inherent dignity of all human beings” by “protect[ing] human and civil rights of immigrants currently living in the United States”
(For further information click here).

Meanwhile, members of the House of Representatives introduced  HB 1847 to generate more than $100 million/year to fund the Basic Health plan, “ensur[ing] access to affordable, quality health care services for Washington residents who lack other means of acquiring or maintaining such health care coverage”. This is accomplished by closing tax loopholes previously put in place to benefit different special interests in our state.

Action: Please contact members of the House, asking them to support maintenance of the Basic Health Plan and other safety net programs.

FCWPP Update for weeks of January 17-28, 2011

Updates on the following bills: HB 1086 - the 2011 Supplementary Operating Budget;HB 1320 / SB 5238 - WA Investment Trust; HB 1020 - Resume 50% of earned release time; HB 1063 - Periodic Review of juveniles sent to life without parole; SB 5236 - Review of 3-strikers; SB 5456 - Replaces death penalty with life without parole. Watch for new bills on Restorative Justice sponsored by Rep. Roger Goodman and Senator Nick Harper.

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Updates on Washington Investment Trust

Jan. 30: HB 1320/SB 5238: Washington Investment Trust, sponsored (in the House) by Rep. Bob Hasegawa.  Set up state institution to hold state funds and lend to small business, farmers, students and others.  Hearings were held this past week in House Business and Finance Committee and Senate Financial Institutions Committee.  Oral testimony by FCWPP in both hearings.  Strong support provided by former executives of the State Bank of North Dakota, which has run successfully since 1919.  Opposed by the Washington State Treasurer, who claims that the Trust would be unconstitutional, that the current concentration bank that handles state funds now does a better and much less expensive job than the proposed state bank would do, and that self-insurance would be risky.  We are looking into these claims.

Jan. 25: The Washington Investment Trust (state bank) bill (H.B. 1320 & S.B. 5238) will be heard by both state Senate and House committees tomorrow, Jan. 26.  We hope you will read the excerpts from messages by the prime mover and sponsor of the bill in the House, Rep. Bob Hasegawa, and we encourage you to notify the committee members as well as your own legislators that you support the Washington Investment Trust. 

 Here’s a link to members of the Business & Financial Services Committee in the House, http://www.leg.wa.gov/House/Committees/BFS/Pages/MembersStaff.aspx, and a link to members of the Financial Institutions, Housing, and Insurance Committee in the Senate:   http://www.leg.wa.gov/Senate/Committees/FIHI/Pages/MembersStaff.aspx.

Update from the Economic Justice Working Group

The House (SHB 1086) has submitted a proposed 2011 Supplemental Operation Budgets to address revenue shortfalls projected to occur before the end of the current biennium. SHB 1086 was passed out of the House Ways and Means Committee on January 19, 2011.

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Washington Investment Trust

Please help move House Bill 1320, Rep. Bob Hasegawa's bill to create Washington Investment Trust, (WIT). The WIT is based on the model of North Dakota's State Bank.  In Bob's words, "The concept:  keep taxpayers’ money working here in Washington to build our economy.

Currently, all tax revenues go into a “Concentration Account” held by the Bank of America.  Instead, we can create our own institution and keep taxpayers’ dollars here in Washington, working for Washington."

Please call your state representatives to urge them to support HB 1320.  Please urge your State Senators to support a companion bill in the Senate, SB 5238.

The mission of the Washington Investment Trust will be written into the law establishing the bank - Develop Agriculture, incustry and commerce for the benefit of the citizens of Washington State. 

The bank would would have the ability to self-fund capital projects, keep money local, make small business loans and provide new credit sources.

Like the Bank of North Dakota, the Washington Investment Trust would partner with community banks and credit unions in their loan practices. As small businesses and farmers get credit, jobs will be created; this in turn will increase the revenue tax base of the state.  All tax moneys and fees of Washington would be deposited in the Washington Investment Trust. 

The chartering of a public state bank won't solve all the problems of our recent recession.  However there is a credit problem in WA at the present time and the bank will get credit flowing to where it is needed.

Some Health Care Priorities May be restored!

“While we are still analyzing the details, it appears the House Ways and Means Committee responded to concerns shared about the needs of our most vulnerable neighbors and found ways to retain most of the funding for Disability Lifeline and full funding for Apple Health for Kids in its proposed 2011 Supplemental Operating Budget. The Committee also came up with a creative way to fund the Basic Health Plan, which still has a few people worried, however, it appears the plan would continue. The Governor eliminated the Basic Health Plan and Disability Lifeline, and terminated coverage 27,000 children currently receive through Apple Health for Kids in her proposed 2011 Supplemental Operation Budget. We will have a more detailed report soon.”

Action Items: 

1. Let members of the House Ways and Means Committee know full funding for the Basic Health Plan, Disability Lifeline, Apple Health for Kids, and Community Health Clinics is vital to the health and well being of all Washingtonians.
2. Thank House Ways and Means Committee members for including funding for these programs in their 2011 Supplemental Operating Budget.
3. Encourage Committee members to make sure this funding is part of the 2011 Supplemental Operating Budget when it is passed out of Committee and referred to the House floor.

Public Policy Agenda 2011

Goals and Objectives for FCWPP's work in Criminal Justice, Local Responses to Global Challenges, and Economic Justice, including Health Care....

FCWPP Endorsement of Initiatives and a Referendum

The FCWPP Legislative and Executive Committees have approved positions on several Initiatives and a Referendum that will be on the statewide ballot in November. FCWPP recommends...

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Initiative 1077, the Income Tax on Wealthy Washingtonians

Last week, the Steering Committee of the Friends Committee on Washington Public Policy minuted support of a state income tax and that “we encourage Friends in the State of Washington to read and consider I-1077 [1] and if they approve it to encourage their meetings to minute their support.” If approved by voters in November this measure will tax income in excess of $200,000/individual and $400,000/couple, provide property tax relief, eliminate B&O taxes on small businesses, and create a new trust fund dedicated to quality education and healthcare. In contrast to sales taxes that affect the poorest Washingtonians most severely, I-1077 would shift some of this burden to the wealthiest among us. The links at the end of this message provide resources for your seasoning of this matter.

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Urgent alert re WA budget

We have sent out only a few legislative alerts this past short session because the legislature was so immersed in working out the budget. After an extended session a budget proposal is ready to be approved, but it needs our citizen support. Please consider calling your Senator and House members to urge its passage.

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Encourage Support for the Poor and Disabled

Urge our state legislators to approve revenue increases needed to reduce the cuts in vital state services, and to consider an income tax.

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