Inslee’s spending plans trigger Republican protests

Gov. Jay Inslee, in his State of the State address Tuesday, called for a boost in K-12 funding, but that and his other proposals — boosting teacher pay and increasing the state minimum wage — kicked up a storm of Republican protest.

ELLEN M. BANNER / THE SEATTLE TIMESGov. Jay Inslee listens to a a standing ovation shortly before giving his first state of the state address in the House of Representative chambers at the Washington State Capitol Tuesday afternoon.
ELLEN M. BANNER / THE SEATTLE TIMES
Gov. Jay Inslee listens to a a standing ovation shortly before giving his first state of the state address in the House of Representative chambers at the Washington State Capitol Tuesday afternoon.

By Andrew Garber, Seattle Times Olympia bureau

OLYMPIA — Gov. Jay Inslee’s proposals to boost teacher pay and increase the state minimum wage ran into a wall of Republican opposition after his State of the State address Tuesday.

The GOP-led caucus that controls the Senate slammed the governor’s ideas, saying they would go nowhere in that chamber. Democrats control the House and the governor’s office.

Asked if more money is needed for education this session, Senate Majority Leader Rodney Tom said, “No … We already addressed the money issues this last time with over a billion dollars.”

Tom, a Medina Democrat who crossed party lines to give Republicans control of the Senate, was referring to increased education funds in the budget approved by lawmakers last year.

Regarding the minimum wage, Sen. Linda Evans Parlette, R-Wenatchee, said, “If you raise the minimum wage, you’re going to have more small businesses go out of business, which means more people will lose jobs. It’s the wrong direction.”

The governor’s proposal to boost K-12 funding by $200 million, including cost-of-living increases for teachers, came as a surprise, considering he had previously said the state should wait until 2015 to address education funding.

Inslee said he changed his mind after the state Supreme Court told lawmakers last week to speed up their efforts to meet a court mandate for increased funding for education. The justices set an April 30 deadline for the Legislature to come up with a complete, year-by-year plan to meet the court’s requirements.

“I’ve had to rethink that approach. Or, to be candid, the Supreme Court has forced us all to look anew at funding our education system this year,” the governor said in his speech.

Inslee noted the Supreme Court wrote that it “wants to see ‘immediate, concrete action … not simply promises.’ ”

Inslee said he would look at closing tax breaks to pay for the funding increase, but did not go into details.

House Majority Leader Pat Sullivan, D-Covington, agreed the Legislature should take action this session.

“I think we’re going to have to look at additional investments,” Sullivan said. “The order from the Supreme Court was a game changer. It elevated the need to put more funding into K-12 education this year.”

Sullivan said he agrees the Legislature should look at closing tax breaks, but said it’s too early to say which ones.

House Democrats have already drafted legislation to give teachers a cost-of-living increase.

Rich Wood, a spokesman for the Washington Education Association, said the legislation has 52 signatures by representatives, enough support to pass the 98-seat House.

Wood said there’s no Senate version of the bill at this point.

Inslee, in his speech, said, “We need to stop downplaying the significance” of the state Supreme Court’s order, adding the justices wrote that “this case remains fully subject to judicial enforcement.”

But Republicans did not seem impressed.

“Their job is to be the judiciary branch, our job is to be the legislative branch,” said House Republican Leader Dan Kristiansen, of Snohomish. “While I appreciate their strong concerns, what I don’t appreciate is that it almost comes across that they want to do both our jobs. And if that’s what they want to do, let them run for the Legislature.”

In addition to money for education, Inslee renewed his call for raising the state’s $9.32-an-hour minimum wage, this time adding a range of $1.50 to $2.50 for the increase.

“As I look out at this chamber today, I recognize the political realities of the split control of Olympia,” Inslee said, referring to the GOP-led Senate majority. “But we must spend time and energy — and yes, political capital — helping make sure everyone in Washington is paid a fair wage.”

Patrick Connor, state director for the National Federation of Independent Business, said his group opposes the increase.

“A minimum-wage hike doesn’t help anybody get a job. We should be focused on getting people jobs first and then talk about whether workers are getting paid enough,” he said.

Governor to seek $200M more for schools

By Jerry Cornfield, The Herald

OLYMPIA – Gov. Jay Inslee surprised lawmakers Tuesday with a call to give public schools $200 million in new funding, with a portion earmarked for the first cost-of-living increase for teachers in five years.

Inslee, who’s been saying he would seek a major investment in education, changed course after the state Supreme Court recently scolded lawmakers for moving too slowly to fully fund basic education as required by the state constitution.

“Promises don’t educate our children. Promises don’t build our economy and promises don’t satisfy our constitutional and moral obligations,” Inslee said in prepared remarks to a joint session of both chambers of the Legislature.

“We need to stop downplaying the significance of this court action. Education is the one paramount duty inscribed in our constitution,” Inslee said during his noontime State of the State Address.

Also Tuesday, Inslee pressed lawmakers to pass a transportation package and increase the state’s minimum wage by as much as $2.50 an hour. Today the minimum wage in Washington is $9.32 per hour.

Regarding education funding, the first-term Democratic governor will propose closing tax breaks to generate the revenue, a change he sought without much success last year. He didn’t spell out which tax breaks he will seek to close.

“You can expect that again I will bring forward tax exemptions that I think fall short when weighed against the needs of our schools,” according to the remarks provided in advance of his speech.

On transportation, Inslee urged lawmakers to find common ground in time to reach agreement before this year’s 60-day session ends in March. The House is controlled by Democrats and the Senate is controlled by Republicans.

“If education is the heart of our economy, then transportation is the backbone. That’s why we need a transportation investment package,” he said. “The goal cannot be for everyone to get everything they want. Instead, we must get agreement on what our state needs.”

And he said he wasn’t sure how much the minimum wage should climb but knows it needs to be higher than it is today.

“I don’t have the exact number today for what our minimum wage should be. It won’t be a number that remedies 50 years of income inequality,” he said. “But I believe that an increase in the range of $1.50 to $2.50 an hour is a step toward closing the widening economic gap.”

The governor also called for reform that would ensure businesses pay no business-and-occupation tax if they earn less than $50,000 in revenue in a year.

Inslee Wants To Explore State-Only ‘Cap and Trade’ Scheme

Source: OPB.org

OLYMPIA, Wash. — Gov. Jay Inslee on Monday laid out his wish list for how he’d like Washington state to combat global warming pollution.

It includes eliminating any electricity generated by coal and putting a statewide cap on greenhouse gas emissions. Legislative Republicans immediately raised concerns.

Back in 2008, the Washington Legislature set ambitious goals for reducing the state’s carbon footprint. But they’re just goals, without enforcement mechanisms. Subsequently, a pact between 11 Western states and provinces to put a price on greenhouse gas emissions fell apart.

Now Inslee chairs a bipartisan legislative work group tasked with recommending policies to achieve the state’s climate goals. He says on its current course the state will fall far short.

“That shows the necessity in my view of having a belt-and-suspenders, economy wide approach to capping emissions in this state,” the Democratic governor said.

By that Inslee means a “carbon cap and trade” system for industrial polluters along with requirements to increase use of alternative fuels in transportation.

Republican legislators flanking the governor at a workgroup meeting weren’t shy about raising the fear that this could drive businesses to leave Washington for less regulated neighboring states.

“How do we address for Washington state going it alone on certain issues in terms of the economic impact to manufacturing, job base and agriculture,” Sen. Doug Ericksen, R-Ferndale, rhetorically asked.

The four legislative members of the work group also offered proposals Monday.

Ericksen talked up nuclear power. Rep. Shelly Short, R-Addy, suggested focusing on energy conservation incentives, especially to increase energy efficiency in buildings. Rep. Joe Fitzgibbon, D-Burien, echoed the governor’s call to “transition off fossil fuels” in transportation.

Sen. Kevin Ranker, D-Orcas Island, joined Inslee in proposing to wean the state’s electric utilities off of coal-fired generation. The State of Washington has already signed a deal with the energy company TransAlta to phase out the only large coal power plant inside the state’s borders – that located in Centralia. Now the Democratic politicians are targeting what they call “coal-by-wire,” meaning utility purchases of electricity generated from coal at out-of-state power plants. The bipartisan workgroup aims to produce a prioritized set a recommendations by December for how the state can curb carbon emissions in the future.

The goal is the get the state back on track to meet the following targets set by the 2008 Washington Legislature:

  • By 2020, reduce overall greenhouse gas emissions in the state to 1990 levels;
  • By 2035, reduce overall greenhouse gas emissions in the state to 25% below 1990 levels;
  • By 2050, reduce overall emissions to 50% below 1990 levels, or 70% below the state’s expected emissions that year if it were to continue with business as usual.

Citizens can offer their two cents for how the state should try to cut global warming pollution at two upcoming public hearings. The first is Wednesday evening in Spokane. A second hearing is scheduled for Oct. 23 at the Seattle waterfront.

This was first reported by the Northwest News Network.

Inslee signs $8.7 billion transportation budget

By Rachel La Corte, Associated Press

OLYMPIA — Gov. Jay Inslee signed off on an $8.7 billion transportation budget Monday that puts money toward maintaining state roadways and continues spending on existing big-ticket projects.

But he vetoed some sections, including a proposal to spend $81 million planning a replacement bridge that would extend Interstate 5 over the Columbia River.

“There is no wisdom in expending these funds if the state of Washington does not contribute adequate funding to actually build the bridge,” he said before vetoing the section. “We all need to understand a central fact. This project needs to be funded this year. There is no other option.”

The effort to replace the bridge connecting Portland with Vancouver, Wash., has encountered obstacles in the predominantly Republican Washington state Senate, where several members are opposed to the Columbia River Crossing proposal in its current form. They say it is too low and should not include light rail transit, and are concerned about costs.

The $3.4 billion project would include two new double-decker bridges with five travel lanes in each direction — up from three — and space for pedestrians, bicyclists and light-rail trains. Oregon and Washington are each responsible for $450 million, with the federal government and toll revenue paying the rest. Oregon has already approved its portion, but if Washington state does not, the federal match will fall through.

House Transportation Committee Chairwoman Judy Clibborn, D-Mercer Island, said that veto “makes perfect sense to me.”

“Until we have a revenue package, we don’t really know if we’ll need that money,” she said.

Including the bridge planning money, Inslee vetoed a dozen sections of the transportation budget Monday, including a provision for an audit of State Route 520 that Inslee said duplicated work already being done, and a study of guardrails that Inslee said no funding was available for.

The budget does continue funding for the Alaskan Way Viaduct tunnel project in Seattle, a replacement bridge for State Route 520 over Lake Washington and high-occupancy lanes on Interstate 5 in Tacoma.

Inslee said the budget “makes key investments in our transportation system to keep people and goods moving safely and smoothly throughout the state.”

Earlier in the day, Inslee spoke at a rally in support of a funding package for transportation projects.

House Democrats support a proposal to raise the gas tax by 10 cents per gallon to help maintain existing roads, as well as to fund a handful of pending big-ticket projects, but the plan faces skepticism from the Senate majority.

The tax would provide money for connecting State Routes 167 and 509 to Interstate 5, the North Spokane Corridor and the $450 million needed for Washington’s share of the Columbia River Crossing Project.

Washington lawmakers are in the midst of a special legislative session to address a projected deficit of more than $1.2 billion in the next two-year state operating budget, plus a court-ordered increase in funding for the state’s education system, but Inslee has said that transportation funding must be addressed as well.

Most of the $81 million that had been allocated toward the Columbia River Crossing in the transportation budget would have been withheld until the U.S. Coast Guard looked at how the project design would hamper river traffic and navigation.

Sen. Ann Rivers, a Republican from La Center who has been a critic of the current bridge project, said that she was disappointed by the governor’s veto of that section.

“The Legislature worked really hard to give the governor an option, and he just took it off the table,” she said. “We’ve always said we want a project that works.”

Inslee said that the veto of the funding money for the Columbia River Crossing shouldn’t “be taken at all that we can’t move forward.”

“It would be foolish to turn down $850 million in federal money when they recognize we’re going to end up paying more for this project if we don’t do it this year,” Inslee said. “Washington taxpayers will have to shell out more tax dollars to deal with this bridge if we don’t take this option that is available to us today.”

Rivers debated the notion that the federal money was a sure thing.

“I’m not willing to stake the future of our general fund on these major projects,” she said. “I think we have to proceed thoughtfully and thoroughly. Right now we’re operating on a wing and a prayer.”

Inslee on budget: ‘I choose education over tax breaks’

By Jerry Cornfield, The Herald
OLYMPIA — Gov. Jay Inslee prescribed his plan Thursday for pumping $1.3 billion more into the state’s public school system then challenged lawmakers to buck up and pay for it by ending popular tax breaks and extending taxes set to expire this summer.The first-term governor wants to fund full-day kindergarten in high poverty schools and make preschool available for more children of low-income families.

He also wants to pay for smaller kindergarten and first grade classes, beef up reading intervention and dropout prevention programs and hire 1,400 secondary school teachers in order add courses in middle and high schools.

And he’d pour half of the new money into shouldering a greater share of the bill for school bus service and the purchase of materials and supplies in each school district.

Most of the investment is a first step toward complying with a Supreme Court decision last year that found lawmakers in violation of the state Constitution by not adequately funding public schools.

“To govern, it is said, is to choose,” Inslee said after releasing a broad blueprint of his priorities for the next two-year state budget. “Today, I choose, and I believe we should all choose, education over tax breaks, and to make good on our constitutional and moral duty to quality schools for our children.”

Republicans in the House and Senate didn’t object to how Inslee wants to spend the money only his reliance on taxes to pay for it. They wished he’d looked harder to trim government spending and not put as many dollars into salaries and benefits of state employees.

“I don’t see one on there I can support,” Senate Republican Leader Mark Schoesler of Ritzville said of the list of tax breaks. “You’re not choosing between kids and tax cuts. You’re choosing between bureaucrats and tax hikes.”

House Democrats said Inslee’s plan spending and tax proposals are on the same scale as the ones in the budget they are writing.

“Overall I think the budget reflected the values of our caucus pretty well,” said House Majority Leader Pat Sullivan, D-Covington.

To pay for his education plan, Inslee wants to generate $565 million by repealing or revising 11 tax exemptions most of which have been a political hit list before and survived.

Among them are ones that could lead to bottled water getting taxed and Oregon residents paying sales taxes.

Time and again Thursday, Inslee said it comes down to preserving those breaks or preparing the next generation of engineers and scientists.

“I challenge anyone, anyone in any part of the state in any industry to argue that any single one of these tax breaks is more important than the STEM education of these students,” he said.

Sen. Barbara Bailey, R-Oak Harbor, serves on the Senate budget committee that will have to approve any of them.

“I don’t think anything is more important than education other than getting our economy going again,” she said. “Adding more taxes on businesses has a dampening effect on growth.”

Inslee also wants to make permanent a hike in the business and occupation tax paid by doctors, lawyers and accountants and a 50-cent-per-gallon tax on beer. He also wants to expand the beer tax to cover all producers; today it only applies to those making in excess of 60,000 barrels a year.

Inslee hopes to bring in $661 million from these taxes which were enacted in 2010 and are set to expire June 30.

Inslee, who campaigned against raising taxes, said his plan doesn’t backtrack on that. He said he repeatedly pledged to close tax break and not seek a general tax increase.

“I am fulfilling on my commitment to the ‘T’,” he said.

For owners of small breweries the change in the beer tax means they the tax they pay on each 31-gallon barrel produced could rise from $4.78 to $20.28.

“We’re going to pass it through and it will go through to the beer drinker,” said co-owner Phil Bannan, co-owner of Scuttlebutt Brewing Co. in Everett. “Beer is a common man’s drink so this is going to hit the common man in the wallet.”

Kegs, which hold 15.5 gallons and cost around $135 apiece today, could go up in price by about $10, he said.

“I don’t disagree with the priority of education,” he said. “But I disagree with his way of solving it.”

What Inslee released Thursday was his spending priorities for the two-year budget which begins July 1.

With a projected shortfall of $1.3 billion, Inslee is proposing to save $321 million by suspending the cost-of-living raises for teachers required under Initiative 732. He also suggests cutting $29.8 million in funding for alternative learning experience programs which cover costs of online and home school programs.

In other parts of his budget proposal Inslee backs full expansion of the Medicaid program. That move, he said, will reportedly save the state nearly $300 million as the federal government picks up the cost of covering the estimated 255,000 adults who could become eligible.

He wants to hire more child and adult protective services caseworkers, restore the 3 percent pay cuts for state employees and put $23.7 million into state parks.

With release of his proposal, Inslee kicked off the budget debate in Olympia.

The Republican-dominated Senate Majority Coalition expects to release its budget early next week followed by the House Democrats.

The 105-day legislative session is scheduled to end April 28.

Climate change a top concern for Gov. Inslee

Washington governor’s focus on the issue goes beyond ordinary politics. He says finding solutions is both a moral obligation and an economic opportunity.

By Andrew Garber, Seattle Times Olympia Bureau

OLYMPIA — There was a telling moment just before Gov. Jay Inslee raised his right hand and took the oath of office.

He was introduced as a politician who sees climate change as “an existential threat that transcends politics.”

“More than any other president or governor before him, Jay has an electoral mandate on this issue,” Denis Hayes, organizer of the first Earth Day in 1970, told a packed audience in the rotunda two months ago.

If lawmakers did not grasp the significance of those remarks then, they do now.

Inslee talks about climate change all the time. He discussed it in his inaugural address, during most of his news conferences, when introducing a bill on the issue in the state House and Senate, even in announcing his choice for transportation secretary.

“This is about pollution with a capital P,” he said, testifying before the House Environment Committee this month on climate-change legislation. “It’s about reducing a pollutant, namely carbon dioxide, which has very, very significant impacts on Washington state, on our health, on our well-being and on our economy.”

Hayes, who is president of the Bullitt Foundation, said no one should be surprised by all this.

Inslee established himself as an authority on climate change and renewable energy in Congress. He co-authored a book, “Apollo’s Fire,” touting the potential benefits of a clean-energy economy. And when running for office, “it was the core of his campaign,” Hayes said. “He constantly referenced his … book. People knew what they were getting.”

Still, not everyone was expecting so much, so soon.

“I think there are greater, more pressing priorities at the moment,” said Senate Deputy Republican Leader Don Benton, R-Vancouver. “I think we need to look long term, and do little things that add up over time that will benefit and help the climate-change situation and the environment. But they are long-term strategies.”

Inslee, in an interview, said there’s no time to waste.

“If you have a huge problem that becomes worse over time, it doesn’t mean you should start later, it means you should start earlier,” he said. “This is not something that we just have to worry with our grandchildren. It’s happening today.”

No shortage of issues

To be sure, climate change isn’t the only thing on Inslee’s plate.

The governor is working on a budget. He’s pressuring the federal government to clean up radioactive waste at Hanford. He’s lobbied lawmakers to approve universal background checks for gun purchases. He’s looking for ways to implement the voter-approved legalization of recreational marijuana use.

Inslee is also pushing the Legislature to come up with more money for the state’s transportation system and K-12 education.

Yet there’s little doubt Inslee spends far more time talking about climate change than his predecessors, former Govs. Gary Locke and Chris Gregoire.

“I’ve had more time with him in the last three months on these issues than I had with Locke and Gregoire combined over the past 16 years,” said Rep. Jeff Morris, D-Mount Vernon, chairman of the House Technology & Economic Development Committee.

Inslee introduced a climate-change bill in the House and Senate aimed at developing ways to reduce state greenhouse-gas emissions and meet targets set by the Legislature in 2008. The measure creates a work group that’s supposed to come up with recommendations by the end of the year.

He also brought up the issue in relation to another bill he introduced dealing with long-term plans to improve water supplies in Central Washington, saying warming will reduce snowpacks, making it “absolutely necessary that we increase the water storage and water efficiency … in the Yakima River Basin because of climate change.”

(Watch Inslee speak about improving water supplies in Central Washington.)

And when he hired a new secretary of transportation, Lynn Peterson, he noted that motor vehicles are the state’s largest producer of greenhouse gases. “Lynn is very committed as I am in finding better options for people to get to and from work and reduce carbon pollution,” he said.

The governor’s staff says this is just the start of a deeper conversation on climate change.

Cliff Traisman, state lobbyist for Washington Conservation Voters and the Washington Environmental Council, said Inslee “is clearly not taking a play out of any political consultant’s playbook. That is for sure. And yes, people are surprised because he’s running against the grain. He is tackling the issue because he feels it’s a moral obligation to do so and an opportunity.”

It’s worth paying attention to that phrasing — a “moral obligation” and an “opportunity.”

That is the core of Inslee’s argument around climate change.

Moral principle

The governor uses homilies to get his points across. During testimony on his climate-change bill, House Bill 1915, he talked about watching his 4-year-old grandson play on the beach and “just seeing his face light up when he sees a crab or critter” coming up from underneath a rock.

“I can tell you with a high degree of assurance that unless you and I and other people in our state embrace a commitment that we’re going to see to it that our grandkids have that experience, they’re not going to have it. And the simple reason is the water will be too acidic to support those life-forms,” he said.

(Watch part of Inslee’s testimony on his climate-change bill.)

Richard Feely, a scientist with the National Oceanic and Atmospheric Administration in Seattle and an acidification expert, said the governor was probably accurate when it comes to the Pacific oyster, but the science isn’t clear yet on other species such as crabs.

When GOP Rep. Shelly Short, of Addy, Stevens County, noted any reduction in Washington state carbon emissions would be minuscule compared to what China pumps out, Inslee responded it doesn’t change the state’s moral obligation.

“I know you’re not going to roll down the window and throw anything out the window tonight worried that somebody in another district won’t follow your ethical behavior,” Inslee said. “I think that is the best answer to this issue.”

(Watch Inslee’s exchange with Rep. Shelly Short.)

Climate-change jobs

The carrot the governor uses when discussing climate change is the prospect of jobs.

When he rolled out a jobs package last month, Inslee talked about how the state can be “an example to the world of how a clean-energy, climate-change-reduction strategy is a winning proposition economically. The reason we believe this, is this is something perfectly built for the skill set of the state of Washington.”

“We will not be passive while our state is ravaged by forest fires, by the loss of our shellfish industry due to ocean acidification, by the loss of irrigation water due to the loss of snowpack,” he said. “We are better than that, and we will not accept defeat.”

Inslee has talked about spurring the development of biofuels at a commercial scale, using biofuel blends at major state ferry and vehicle-fueling centers, helping business develop technologies to produce and consume “clean energy,” and creating a Clean Energy Fund to leverage investments in clean-energy technologies, among other things.

There are few specific proposals at this point. One example he’s discussed is using the Clean Energy Fund to provide funds to utilities to develop ways to store electricity from wind farms when the power is not needed.

Inslee’s office said more ideas will be fleshed out when the governor presents a budget proposal later this month.

One purpose of Inslee’s climate-change bill is to identify job opportunities that go along with helping the state reduce carbon emissions.

“This is an economic race and an economic imperative as much as it is an environmental one,” Inslee said in an interview. “We are competing with other countries for the first launch of these new technologies. … We don’t want to finish second or third.”

Skeptics in Legislature

It’s not clear how the governor’s proposals will fare this session.

Republicans, who control the Senate, say the state’s focus should be on jobs, education and the economy. Some even question that carbon emissions are causing climate change.

“Whenever you speak in absolutes about the science being concluded, history is replete with people being proven wrong,” said Sen. Doug Ericksen, R-Ferndale, chairman of the Senate Energy, Environment & Telecommunications Committee.

The Senate last week did pass Inslee’s climate-change bill, but Ericksen’s committee removed language talking about problems associated with global warming.

That was a major bone of contention in the Senate — how definitive the state should be in saying there is a climate-change problem, said Ted Sturdevant, the governor’s legislative-affairs director.

Specifically at issue is whether the Legislature should say that “Washington state is facing negative impacts from climate change,” Sturdevant said. “That’s where there is a divide here in terms of their comfort level in saying that, and the governor’s desire to say that.”

The distinction is important, he said, because Inslee feels “that responding to climate change here is both seizing an opportunity and responding to a problem. The governor wants to make sure this conversation acknowledges both of those things.”

In the end, the governor’s office agreed to take the language out. It has not yet decided whether to ask House Democrats to put it back in.