The warning from the Democratic governor comes amid an increasingly gloomy budget outlook and underscores that the state’s financial difficulties are not over.
The bill squeaked through the House by a single vote, with only Republicans in support. Washington state's two Republicans, U.S. Reps. Michael Baumgartner Dan Newhouse, of Sunnyside, both voted for it. Both their districts have the highest proportion of Medicaid enrollees in Washington.
Politicians may earnestly believe their actions will have no repercussions but they do. The issue is not which tax or fee increases. It is about the total impact on taxpayers, businesses and the family budget.
The Washington Legislature recently adjourned after passing the largest tax increase in state history, and small businesses are going to bear the brunt of it.
Lawmakers, lobbyists and business leaders are all watching to see what the governor does. Ferguson, just four months on the job, is aware of the acute interest and seems determined to keep folks in suspense right up until May 20.
The proposal, embedded in House Bill 2049, seeks to allow an increase in the growth factor from the current 1% cap to the combined rate of population growth plus inflation within a taxing district, not to exceed 3%. This would apply to the state’s common schools levy and for cities and counties, as well as special purpose districts.