Tag Archives: economy

STATEMENT: Republican leaders repeat call for action as inflation rates continue to climb

OLYMPIA… Another jump in price inflation at the state and national levels has Senate Republican leaders calling again for legislative action to provide financial relief to Washington families.

 

New numbers from the federal Bureau of Labor Statistics show the June inflation rate in Washington was 10.1% higher than a year earlier, a full percentage point up from two months ago. Nationally, the inflation rate was up 9.1% for the same period, the highest in 41 years and up from 8.3% two months ago.

From Senate Republican Leader John Braun, R-Centralia:

“The governor keeps rejecting any ideas for providing immediate financial relief to most families in the middle. All he will talk about is a 2023 tax credit that will be available only to some with lower incomes. It’s as though he doesn’t understand, or doesn’t care, how people at all levels in our state are being hit by what is now double-digit inflation. This new report shows they have seen their real earnings shrink for 15 consecutive months.

“The state has a mountain of cash that is continuing to grow. Our colleagues in the majority should join us to end the government greed and get more dollars back into the hands of families. It can be done without harming a single state program or service. Republicans are ready to act. Where are the Democrats? The affordability crisis in our state affects their constituents too.”

From Sen. Lynda Wilson, R-Vancouver and SRC budget leader:

“Budget leaders on the majority side seem stuck on what they call ‘targeted investments,’ which means showering more money on state agencies. The truth is, none of what they did this year to fatten state government will help the typical Washington family cope with an inflation rate that is continuing to grow, with no end in sight.

“Our Democratic colleagues don’t seem to realize that significant, direct tax relief – like a temporary suspension of the gas tax, which would let families keep more of their own money – should also be viewed as a ‘targeted investment.’ With prices up more than 10 percent that’s the best investment we could make to help Washington families. Legislators need to act.”

Lower B&O taxes for manufacturers proposed to help reverse job losses

A bipartisan group of lawmakers are hoping to revive a reduction in the state’s business and occupation tax for manufacturers and reverse the trend of significant job losses in the sector. The proposal would implement a 40 percent reduction in the tax rate for manufacturers, which passed with overwhelming support during the 2017 legislative session, but was ultimately vetoed by Gov. Jay Inslee.

“Washington’s manufacturing sector has lost more than 50,000 jobs this century,” said Sen. John Braun, R-Centralia, who sponsored and negotiated the 2017-19 budget which originally included the change. “Manufacturing jobs are critical to helping rural and suburban areas experience some of the same economic success urban communities have seen in recent years. We know we can afford this strategic investment since we paid for it in the current budget and are now projected to collect $1 billion more than we expected just seven months ago.”

The legislation phases in a reduction from a tax rate of 0.4840% down to 0.2904% by lowering it 10% annually over four years. That would bring all manufacturing businesses down to the same rate paid by Boeing and other aerospace businesses.

Manufacturing employment is the only sector in Washington to see job losses in the 21st century.  Of the jobs lost, 47,200 have been outside of the aerospace sector.

The new proposal includes a tax preference performance statement which highlights that the change is intended to create and retain jobs, improve industry competitiveness, and reduce structural inefficiencies.

Lawmakers are on day 16 of a short 60-day legislative session scheduled to end March 8.

Improving access to higher education

With all of the attention on K-12 education this year, some other important issues didn’t always receive the public discussion and recognition they deserve. One of the many important items we continued tackling this year was our state’s tuition policy.

As I’ve mentioned in previous emails, the decade before 2013 saw students at state colleges and universities play the role of piggy bank for lawmakers who wanted to grow government elsewhere or fill budget gaps. By reducing state support for higher education and increasing tuition to make up the difference, students and families were subject to a hidden, but expensive tax increase.

For example, an in-state student at Central Washington University paid $3,027 for tuition in 2003. By 2012, tuition increased to $7,245. Some lawmakers defended this by claiming it was due to the difficult spending choices following the Great Recession. However, this pattern began well before the economy turned, even as general government spending increased significantly.

Even with the dramatic increase in tuition at Central, students at the University of Washington, Washington State University and Western Washington University saw even higher percentage increases.

As you can see on the chart below, students and their families faced an increasingly difficult barrier to access higher education in our state, at a time when more jobs require some sort of training after high school.

Time for a change

In 2013, we were successful in implementing the state’s first freeze of college tuition rates in more than 30 years. Two years later, we successfully sponsored and funded a tuition cut ranging from 5 to 20 percent.

With rising student loan debt a serious issue facing young adults throughout the country, our prioritization of higher education caught national attention.

However, less discussed following four years of frozen or reduced tuition, was the long-term policy we created to prevent lawmakers from balancing the budget on the backs of students in the future.

Beginning this school year, in-state undergraduate tuition at all of Washington’s public colleges and universities is capped at the average growth rate of the state’s median hourly wage.

This means schools were permitted — but not required — to increase tuition by a maximum of 2.2% this year and 2% for the 2018-19 school year. By tying tuition growth to wage growth, institutions are still able to collect tuition that aligns with potentially rising costs, while students and their families are protected from the frequent double-digit increases seen between 2003 and 2013.

Despite a small increase tied to real world economic conditions, students at Central Washington will have seen a net 15% reduction in tuition between 2013 and 2019. This stands in stark contrast to the 139% increase Central students saw between 2003 and 2013. While it varies from school to school, this example plays out similarly at other state colleges and highlights how we’ve prioritized accessible higher education since 2013.

Below you can see the percentage increase or decrease in tuition for each of the state research institutions, four-year colleges, and community and technical colleges.

By stopping dramatic increases in tuition, and even turning it around, we’ve been able to make school more affordable for current students, and provide more predictable costs for future students.

While the actual tuition cut received much of the attention, this long-term tuition limiting policy will help thousands of students for years to come.

Inslee seeks to expand Ecology’s reach, authority

I recently wrote a guest column in the Longview Daily News regarding the governor’s proposed changes to our state’s water quality standards and the challenges that presents. Please read below for excerpts and a link to the full story.

 

Braun Floor

 

Washington Gov. Jay Inslee’s announcement regarding Washington’s water quality standards includes a dramatic proposal that raises many red flags for communities and families throughout the state.

There is consensus that it is time to update our water standards. No one is suggesting that we should do less to protect our environment, but the goal must be to balance cleaner water with protecting family budgets and jobs. What we don’t need is another war on jobs with more uncertainty and threats of regulations that are impossible to measure or attain.

In addition to new rules on water quality standards, Gov. Inslee said that it was time to “take a broader approach to areas that are not currently regulated.” He defined those areas as “up stream at the source,” and that “the majority of toxins come from what we build.”

 

Read the rest of the guest column in the Longview Daily News, here.

Legislative Update – Feb. 11, 2014

Sen. Braun

Sen. Braun speaking at the Jobs Now! press conference

Growth Management Act: A Burden on Our Communities

I have cosponsored legislation recently that addresses some serious concerns I have regarding the state’s Growth Management Act (GMA). The fact is that our communities know what is best for planning and managing growth. The GMA is overly burdensome and this proposed legislation allows for counties to have flexibility in adopting their own planning rules that makes sense for them. See this article in the Longview Daily News for more information about the issue.

Jobs Now!: Getting Washington back on Track

On Wednesday, the Senate Majority Coalition Caucus held a press conference announcing a new initiative focused on getting Washington back to work. The initiative is being call Jobs Now! and started with the passage of the Worker Recovery Act out in the Senate. I am proud to support this effort that would reduce barriers to injured workers of all ages and provide for options and flexibility to meet their needs.

As part of this initiative, my Senate colleagues I and hope to continue supporting sustainable reforms and bills that focus on our state’s economy. I want Washington to be the best place in the country to do business. As a legislator I want to build a better business climate by reducing bureaucratic red tape, supporting reforms to our workers’ compensation system, tax code and education system. This initiative seeks to assist employers in their efforts to create jobs, hire more workers and grow the economy. Click on the photo above to watch the press conference.

Sponsored Legislation

Here are some of the priorities I am working on this session. I am committed to making our state an attractive place to live and work. With the Majority Coalition Caucus, I continue to advance reforms that will make our state’s economy strong, create accountability in government and reduce the burden on our tax payers and job creators.

Senate Bill 5656 would create a one stop shop for businesses to renew business licenses for all jurisdictions.

Senate Bill 5697 reduces the frequency of local sales and use tax changes. Currently local sales and use tax changes may be implemented four times year. This bill allows changes three times annually. Current sales and use tax system is too complex for small businesses and is continuing to grow. This legislation would cut in half the burden for employers when changing their systems to reflect new sales and use tax rates.

Senate Bill 6182 would establish an annual B&O tax credit for employers that establish new apprenticeship positions where skills gaps exist.

Senate Bill 5727 exempts prevailing wage requirements for public works projects located in distressed counties. Projects would be exempt if at least 50 percent of the project funding comes from private sources. Distressed counties are defined as counties with an unemployment rate 20 percent above the state average for the previous three years.

Senate Bills 6175 & 6176 creates a tax tribunal to balance the relationship between tax payers and tax collectors to ensure fairness and efficiency.

Senate Bill 5647 establishes a stakeholder process for the Department of Revenue in publishing tax rulings and determinations. This bill seeks to balance tax payer confidentiality with open and transparent government and efficiency.