This week, we pause to gather with friends and family to give thanks for the many blessings in our lives. I am particularly grateful to my family for their love and support. I am also grateful for the opportunity to serve you in the state House of Representatives. While we may be divided on some issues in the House, I believe we are all working toward the same goal: A bright and prosperous future for all Washingtonians. With that in mind, here is brief update on some recent happenings in Olympia.

Each November, the Legislature convenes for two days so members can meet with their respective committees. I serve as the ranking member on the House General Government and Information Technology Committee, which is responsible for the budgets of nearly 70 state agencies. During our recent meeting, we received updates from some of those agencies and began to look ahead to the 2016 legislative session.

I also serve on the House Appropriations Committee, which is responsible for writing the state’s general operating budget. We received positive economic news indicating state revenue collections are steadily, but slowly, increasing. While that is good news, we must also be cautious as state agency caseloads for services such as mental health care and Medicaid are on the rise. In January, I’ll be working with both committees to ensure we meet the needs of our state’s most vulnerable, while being good stewards of our tax dollars.

As the 2016 legislative session nears, I am working with House staff to put the finishing touches on bills I intend to introduce. Earlier this fall, I visited with staff and residents at McNeil Island – a state-run rehabilitation center for sexually violent predators – to discuss ways to improve work conditions and resident outcomes. McNeil Island struggles to retain employees and is exceptionally expensive to operate. I will be introducing legislation in the coming weeks that will begin to address both issues. I look forward to sharing more information with you as we get closer to session.

If you have been following the news lately, you are probably aware of the rising threat of terrorist attacks across the world. The attacks in Paris earlier this month are a reminder that we are still vulnerable at home and need to remain vigilant. The ongoing crisis in Syria and much of the Middle East, has many concerned about the U.S. taking in thousands of refugees, many of whom cannot be properly vetted. I certainly sympathize with those who are victims of ISIS, but we must balance our desire to help with our obligation to protect Americans here at home. That is why I joined with my colleagues in the House in sending a letter to Gov. Inslee asking him to put the safety of Washingtonians first. Nationally, leaders from both parties in Congress have called for a pause as we determine the safest path forward, and I hope our governor follows that lead.

Last week, I was asked to make a few remarks at the Shelton High School National Honor Society induction ceremony. I was very impressed with the group of students selected for this honor and it is clear their teachers are doing an outstanding job preparing future leaders for our state and nation. Way to go, High Climbers!

Please take a moment to share your questions and comments with me regarding this update or other issues important to you. I hope you have a safe and relaxing holiday season.

From my family to yours, Happy Thanksgiving!

With Labor Day and summer behind us, I want to share a few updates with you and look ahead to what will be a busy fall in the 35th District. Since the 2015 legislative session ended in July, I have spent the past several weeks traveling the District meeting with community groups and constituents. Though we have a part-time Legislature, I am your full-time representative and I am grateful for the opportunity to serve you year round!

Before I get into the updates, I want to briefly reflect on the fourteenth anniversary of the terrorist attacks of September 11, 2001. In the days following the attacks, our nation came together, mourned the victims and celebrated the heroes. In the years since, we have faced many challenges as a nation, including the ongoing war on terrorism. Our national leaders continue to debate issues which carry serious consequences for our national security and the safety of our closest allies. For those making these difficult decisions, I hope they recognize the threats which still exist in our post-9/11 world and support policies that make the United States safer. We must never forget the sacrifice made by so many on that September morning, and in the years since.

I remain confident our best days are ahead of us, and if we stand together we can remain the driving force for a freer, safer and more prosperous world.

Education remains top priority

As teachers and students file back into the classroom, there is much to celebrate – though reading the headlines might suggest another story. With teachers on strike in Pasco and Seattle, I am grateful our local teachers have made the decision to stay in the classroom and work with the Legislature on continuing to improve our K-12 education system. They should be applauded for their dedication to their students.

This summer, we passed a budget that makes historic investments in K-12 education which now makes up nearly 48 percent of the 2015-17 operating budget. This multi-billion dollar increase includes funding teacher COLAs for the first time in years. We also invested in class-size reduction in grades K-3, expanded all-day kindergarten, and increased funding by nearly $750 million for maintenance, supplies and operating costs. This was the best budget for Washington’s students and teachers in more than a generation.

Which is why I am concerned by two recent rulings by the state Supreme Court – both of which could have long-term effects on how we meet the needs of both students and teachers. The first ruling, which was handed down last month, stated the Legislature has not met the requirements of the 2012 McCleary decision. The Court imposed a $100,000 per day fine on the Legislature until the justices are satisfied their ruling is met and urged Gov. Inslee to call a fourth special session this year.

To be clear, regardless of this ruling, the Legislature is on track to meet the McCleary guidelines by the original court-ordered 2018 deadline.

Even though a fourth special session is unlikely, we are in the process of addressing the underlying funding issues with our K-12 system. One solution is to Fund Education First by creating a stand-alone education budget, which I proposed last session.  Another is a bold, sweeping reform to the local and state levy system known as “levy swap.” In the coming months, we will be working across the aisle to ensure we have an effective plan to address this final, and underlying, component of the McCleary ruling.

A second ruling was released late last week declaring the voter-approved charter-school system unconstitutional. The ruling came nearly a year after the Court heard arguments in the case and as schools prepared to open their doors after the Labor Day weekend. This ruling jeopardizes the educational opportunity for 1,200 students across the state, many of whom are minorities or from low-income families. This ruling creates uncertainty for families – that is both unfair and unacceptable.

Education is not a one-size-fits-all endeavor. Charter schools provide high-quality learning opportunities for students who may otherwise be underserved in the classroom. Charter schools are operating and thriving in 41 other states, yet in Washington the Supreme Court has bucked innovation and opportunity, instead opting to uphold the status quo. According to The Seattle Times, the Court’s decision is even more suspect due to the ruling justices’ campaign contributions from anti-charter school special interest groups like the Washington Education Association. I believe students deserve better than the rulings offered by the Court, that are funded by special interests, in recent weeks.

I will continue to do whatever it takes to ensure students in Washington have every opportunity to succeed and thrive. I believe this starts by enacting bold reforms that improve K-12 funding, increasing access to classrooms that meet the needs of all students, and by finally putting kids ahead of special interests.

North Mason School District opens new school and offers flu shots at annual clinic

A special word of congratulations to the North Mason School District on the opening of their new, state-of-the-art high school in Belfair. This much-needed addition to the community will provide students with a world-class facility and prepare them for a bright future. You can read more about the new school in the Kitsap Sun. Way to go, Bulldogs!

I also received a public service announcement from the North Mason School District regarding their upcoming annual flu-shot clinic. The annual clinic will be held Monday, Sept. 28th from 2-6 p.m. in the North Mason School District Office. Staff, students, family, and the community are welcome to participate! For more information, or to RSVP, please contact district nurse Catherine Shutty BSN, RN at 360-277-2328 or cshutty@northmasonschools.org.

Thank you for taking the time to read this update. I hope you take a few minutes to let me know your thoughts on these, or any other issues important to you.

And, of course, GO HAWKS!

After a week of uncertainty, Legislators were called back this afternoon to Olympia to finally finish the 2015 session. As we prepare to adjourn for the year, I would like to update you on what has happened in Olympia over the past several week, and why we are still in session after nearly 180 days.

The 2015 legislative session has been a mix of the good, the bad, and the ugly. First, the good. Passing the bipartisan 2015-17 operating budget ensured state government remains open for business and critical services continue across Washington. The budget was balanced without new taxes and makes historic investments in K-12 and higher education, funds teacher and state employee COLAs, and makes critical investments in mental health services for our states most vulnerable citizens. I am pleased with the results, and know we can continue to do better.

Even with this positive outcome, we must continue to work for a more efficient state government. I do not believe it is acceptable to take the state to the brink of shut down every two years, especially given historic revenue collections. I hope we can build on this bipartisan budget, create a culture of compromise and restore trust in state government.

Some of the investments made in the 2015-17 operating budget include:

• An additional $1.3 billion in K-12 basic education and meets the state’s constitutional obligations.
• $350 million to reduce K-3 class sizes, $180 million to expand full-day kindergarten, and $740 million for materials, supplies, and operating costs.
• Fully funds the I-732 teacher COLA at maintenance level ($232 million for 1.8 percent and 1.2 percent) and an additional one-time COLA ($153 million for 1.2 percent and 0.6 percent) to provide an overall K-12 COLA of 3 percent and 1.8 percent.
• Reduces tuition by 15 percent at research institutions such as WSU and UW, 20 percent at regional universities, and 5 percent at community and technical colleges (state need grant awards to private institutions are unaffected).
• No capital gains income tax, no carbon tax, and no tax on bottled water.

The 2015-17 capital budget invests in important projects in our community, including improvements to the Shelton Senior Center, and continued work on the Shelton sewer basin project. There is no limit to what we can accomplish by working together. I look forward to seeing these, and all the projects funded in the budget completed.

Now, the bad. Unfortunately, even after passing these important budgets, the Legislature has still not adjourned for the year. In the early hours of July 1, Senate Democrats unexpectedly, and indefensibly, went back on their word to pass an important bill necessary to implement the budget. House Bill 2266, sponsored by House Democrat Majority Leader Pat Sullivan, would temporarily suspend Initiative 1351, the class-size reduction initiative, to give the Legislature time to determine its feasibility. Without this agreed-upon bill, we face a $2 billion hole in the operating budget which could negatively affect our historic investments in education, mental health, and teacher COLAs.

I applaud Speaker Chopp, Majority Leader Sullivan, and House Democrats for having the political courage to uphold their end of the budget deal and take a difficult vote to keep state government open. I cannot say the same about Senate Democrats. Though it appears a compromise has been reached in the Senate, this kind of partisanship is unacceptable and the people of Washington deserve better. You can read more about the situation in the Senate in this recent editorial from The Seattle Times.

Finally, ugly is this best way to describe the middle-of-the-night vote to increase the state gas tax by nearly 12 cents-per-gallon. The largest tax increase in our state’s history was debated and passed while those it affects most were asleep, and included a provision preventing voters from having the final say. I supported an amendment to put this tax increase on the ballot, to give voters a chance to directly weigh in but it did not pass. Though the Belfair Bypass is funded in this package, beginning in the 2017-19 biennium, I believe there were better options for getting this important project done without this extreme cost.

In fact, I sponsored an amendment to the 2015-17 transportation maintenance budget earlier this yearto fund the bypass project. It was defeated by those preferring a gas-tax package. This critical project for Mason County could have been funded using existing revenue, as was promised in previous gas-tax packages. However, if it is completed using new funds, residents will pay roughly $400 million over the life of the tax for a $100 million project that could, and should, have been completed decades ago. Simply put, I will not accept massive markups on decades-old local projects to pay for WSDOT’s mismanagement of Seattle-based mega projects. This was simply the wrong deal for our district.

Remembering a great leader

I was saddened to learn Dr. Elson Floyd, president of Washington State University, passed away in late June after battling cancer. I had the privilege of working with him while I was the assistant ranking member on the House Capital Budget Committee. Dr. Floyd was a tireless advocate for WSU and poured his heart into improving the university. This year, he helped lead the campaign to establish a medical school at WSU in Spokane. His legacy is one of dedication, hard work and creating a bright future for higher education in Washington state. He and his family remain in my thoughts and prayers during this difficult time.

Keeping in touch

I am confident the 2015 legislative session is nearing its completion, and I am looking forward to being back in district. Working in our community to help solve problems is one of my favorite parts of being your state representative. Please contact me with your questions, concerns and comments on issues important to you. If you would like me to visit your community group, school, or business, I am available to do so. Please contact my office to make arrangements.

With the second special session of 2015 underway, negotiators in the House and Senate continue to work on a final budget for the 2015-17 biennium. Both budget proposals on the table make historic investments in education, mental health services and address other critical funding priorities. The debate remains how to pay for these priorities – using existing revenue or increased taxes. There is no debating, however, our priority remains fully funding K-12 education.

We received another positive economic revenue forecast in May. The latest forecast again showed there is no need for the tax increases being proposed by the House majority party. In fact, Gov. Inslee has backed off his massive tax proposal and The Seattle Times has written tax increases this year are unnecessary. The House majority party, however, continues to insist on a $550 million capital gains income tax. I don’t believe this is the right direction for our state. Rather, we should prioritize spending and live within our means.

Throughout the special session, I have visited schools across our District and met with teachers and students. Many voiced their concerns about education funding in the 2015-17 budget. I can tell you your voice has been heard loud and clear in Olympia. The budgets proposed by the House and Senate increase K-12 education funding by nearly 18 percent – a historic investment in basic education that reverses years of inadequate funding.

With this substantial investment, we continue to address the McCleary ruling and fulfill our paramount duty as laid out in the state constitution. In fact, $1.3 billion has been proposed to address McCleary which includes increased funding for K-3 class size reduction ($350 million), all-day kindergarten ($190 million), and maintenance, supplies, and operating costs ($740 million). The Senate Capital Budget also includes funding to build 2100 new classrooms in the state to meet class-size reduction needs.

I have also heard from a number of you on the issue of teacher COLAs. I am a strong supporter of reinstating the COLA and have been disappointed the House majority party withheld the voter-approved raises for teachers over the past several years. This year, I am happy to report both budget proposals include teacher COLAs. These are the important investments I will continue to fight for in the budget.

While I remain hopeful a compromise can be struck in the coming days, I hope the work we do in Olympia will embrace the urgency felt by many people in our community. We must fulfill our duty and finish our work as soon as possible.

Governor signs bills into law:

• House Bill 1636 requires state agencies with more than 100 employees to issue a report on the number of persons with disabilities employed. The idea for this bill was brought to me by a constituent last year and helps identify work force opportunities for those with disabilities at state agencies. It passed the Legislature unanimously.
• House Bill 1749, another constituent request bill, ends the requirement for homeowners working on their house to “flip” it to register with Labor and Industries as a contractor. Labor and Industries levied large fines against homeowners who made these types of improvements without registering as a contractor. Not only is this an unfair requirement, it hinders economic growth. I am happy it  passed the Legislature unanimously.

A third bill, Senate Bill 5893, was also signed into law. I sponsored the House version of this bill which clarifies the laws regarding amateur hockey players in the state and exempts them from the Minimum Wage and Industrial Welfare Act. Amateur hockey teams have been operating in Washington since the 1970s and there was strong bipartisan agreement that amateur athletes do not work for junior hockey league teams in the same way the Zamboni driver does. This clarification will allow junior hockey teams in the state to continue to offer young athletes development and educational opportunities as well as continue to contribute to the economic growth of their community.

New district office

I am excited to announce the opening of our new district office. The office is located inside the North Mason Chamber building at 30 NE Romance Hill Rd Suite 101, Belfair. Office hours are Monday through Friday from 8-5 p.m., or by appointment.

I believe people deserve elected officials who are accessible and responsive to their needs. I’m looking forward to helping people navigate state government and listening to their concerns and ideas to strengthen our community.

I hope you will continue to contact me with your questions, concerns and comments on the budget and other issues important to our state. If you would like me to visit your community group, school or business, I am always available to do so. I enjoy spending time in our community hearing directly from you. Please contact my office to make arrangements.

Last week, we were presented with two visions for Washington’s future. On one hand we saw a vision that is built on new and increased taxes. On the other, a vision built on prioritized spending and respect for taxpayers. These visions were laid out in the form of the House and Senate operating budgets, and will drive the discussion in Olympia over the last few weeks of the 2015 regular session.

The budget proposed by House Democrats passed the House on a 51-47 vote along party lines last week. While I am pleased this budget addressed priorities such as mental health services and restores teacher COLAs, and did not include Governor Inslee’s carbon tax plan, I have several concerns and voted against this vision for our state’s future.

This budget will hurt our recovering economy and is not in the best fiscal interest of Washington state and the 35th District. The plan increases spending by nearly 15 percent over the current biennium. Further, this budget does not balance without raising taxes on the hard-working people of Washington state. This is especially concerning given a $3 billion increase in revenue for the 2015-17 budget cycle. Given this growth in revenue, I believe we have the means to pass a responsible, sustainable, and balanced budget without relying on tax increases.

Increasing taxes should be a last resort, but this plan includes $1.5 billion in new and increased taxes. Many of you have contacted me and asked why government wants to increase taxes when revenue collections are up and our economy is slowly recovering. You’ve also told me that government should prioritize spending and live within its means just like families all across the state. I agree with you, and believe raising taxes will affect Washington’s ability to compete economically. It’s clear to me that Olympia does not have a revenue problem, it has a spending problem.

Unemployment remains an issue in Washington state, especially outside of Seattle, and is higher than the national average. In fact, in Mason County unemployment is hovering just under 10 percent. We need a spending plan that will unleash our economy, spur family-wage job growth and ensure Washington state is competitive for generations to come. We don’t achieve this by adding to the tax burden of low and middle-income families and job creators. We do this by effectively prioritizing spending and investing in the future.

The House majority party proposed ten tax increases which they say are necessary to fund basic education under the McCleary decision. But their proposals, including a tax on capital gains income, bottled water, online sales, and increases to the state’s B&O tax, fail to meet an important requirement of McCleary. The Supreme Court ruled basic education must be funded using “regular and dependable sources of revenue.” Taxes can and have been repealed by Washington voters in the past. Just a few years ago, Washington voters repealed the bottled water tax with a 60 percent majority. These taxes are neither regular nor dependable, and I believe we can do better.

A better option passed the Senate earlier this week. This option shows how state government can meet its obligations, fully fund education, improve mental health services, restore cost of living adjustments (COLAs) for teachers and other state employees and reduce college tuition without raising taxes. I believe this is the better vision for our state.

Now that both the House and Senate have passed their budgets, the hard work of negotiating a final budget begins. We have until April 26 to complete our work and I believe it can be done. As a member of the House Appropriations Committee, I will work hard to ensure residents of the 35th District will not be forgotten in this budget process.

Belfair Bypass update:

This week, the House passed its transportation maintenance and operations budget. I introduced an amendment to allocate $15 million for the Belfair Bypass. This would help continue the project and hopefully spur its completion. I was disappointed this amendment was rejected by the House majority party. As such, I could not vote for a transportation budget that does not include this critical infrastructure improvement project in our district. I remain a strong supporter of the Belfair Bypass and I am actively investigating other funding options for this project. I will continue to fight for it to be completed because I believe it will greatly benefit our region, both in congestion relief and economic development.

Congratulations Mason Transit!

I was honored to spend some time in Shelton to help dedicate the new Mason Transit Authority community center last week. It was one of the first projects I was able to work on and secure state capital budget funds for, and I am excited to see the positive effect it will have on revitalizing Shelton’s downtown. It was great to join with so many friends and neighbors to showcase the result of years of hard work by so many people in our community, especially Brad Patterson and his team at Mason Transit. This community transit center is a welcome addition to Shelton and will benefit the public for years to come.

Keep in touch:

As we approach the end of the 2015 legislative session, I encourage you to contact me with your questions, concerns and comments on the budget and other issues important to our community. I am looking forward to getting back to our district for the summer and fall. If you would like me to visit your community group, school or business, I am always available to do so. I enjoy spending time in our community and hearing directly from you. Please contact my office to make arrangements.

The House Democrats released their 2015-17 operating budget proposal late Friday morning, and will hold a public hearing on it in the House Appropriations Committee Monday afternoon.

The budget proposed by the House majority party spends nearly $39 billion. That is several billion more than our current budget. Further, this proposal increases taxes by $1.5 billion. I do not agree with their plan to raise taxes. Revenue collections in Washington are up over 8 percent for this budget cycle as the economy begins to stabilize. Many in the state, including in the 35th Legislative District, are still recovering from the Great Recession and I am committed to ensuring they are not forgotten in the budget writing process.

Let your voice be heard

I believe state lawmakers need to hear from taxpayers on this proposal – not just special interest groups. As budget hearings begin, I encourage you to join the debate! You can do this by testifying at the hearings scheduled for the Appropriations Committee over the coming days. You can find the agenda for budget hearings here. For information on how to testify in committee, click here. If you can’t make it to Olympia, please contact me directly. I am always happy to listen to your concerns and comments. You can also call the legislative hotline at: 1-800-562-6000.

Thank you for being engaged in the legislative process.

Rep. MacEwen in the media: 

Recently, I had the opportunity to discuss my B&O reform plan with TVW. I was happy to share my thoughts on why I believe this reform is an important step forward for Washington’s economy.

You can view the interview by clicking here.

It’s hard to believe we have just a few weeks left in the 2015 regular session. House committees are busy hearing Senate bills and Senate committees are hearing House bills. Yet much work remains to be done, including passing the budget. With an almost 9 percent increase in revenue, the highest collection in our state’s history, this can – and should – be done by April 26. Special sessions are costly and unnecessary and I’m committed to adjourning on time with a balanced budget that does not raise your taxes.

I have heard from a lot of you about the transportation revenue package passed by the Senate. This package included some reforms to WSDOT, but it also included a nearly 12 cent-per-gallon gas-tax increase. I am opposed to the gas-tax increase being proposed, as are many people I have heard from in the 35th District. Others say it is necessary to increase the gas tax in order to fund important projects including the Belfair Bypass in Mason County. Another option suggested to me has been using tolls to pay for the bypass should a transportation package not pass this year.

Some of you have taken the time to write in to tell me your thoughts on gas tax increases. Here is a sampling of that feedback:

• Since 2003 we are constantly bombarded with gasoline taxes or increased fees on the Narrows Bridge. The nickel tax, then a 9.5 tax, now 11.7, all of this in 13 years.  Then there is Gov. Inslee’s carbon fuel tax.  This will push businesses out of Washington state. I am opposed to all of these measures. – Robert, Port Orchard
• Please support the Comprehensive Transportation Bill. No one likes to pay higher taxes but it is more important to have safe roads (intersection at Highway 101 and Lynch Road) and not waste time in traffic jams (Belfair Bypass). Both these projects have been needed for a long time. – Diane, Allyn
• I have this gut feeling that the ‘road improvements’ will be in King County…and we seldom use those roads…how about toll fees? – Cindy, Olympia

Like a lot of you, I remain skeptical that a transportation revenue package will contain enough meaningful reforms to really improve our transportation system. As the package moves through the process, it will undoubtedly change, perhaps significantly, and the much-needed reforms may not pack the punch they initially did. Without reform we are simply pouring more tax dollars into a flawed system.

Examples of reforms include streamlining the permitting process and designing projects based on freight mobility and congestion relief. Additionally, we must end the practice of selling bonds to pay for sales tax on transportation projects. I introduced House Bill 1358 to achieve that goal. These reforms are especially critical in areas of our state, and the 35th District, in need of expanded economic development opportunities. They must be included if we are to have a truly comprehensive transportation package that reflects the needs of the entire state, not just Seattle.

I am committed to reviewing the package as it moves through the legislative process, and will keep your thoughts in mind. Your voice is the most important to me in this process, and I want to hear from you. Please take a minute to fill out this brief survey on transportation funding.

This past week I was honored to recognize Gretchen Schodde, founder of Harmony Hill in Union, who was awarded the Washington State Medal of Merit. She has dedicated her life to public health and wellness in Mason County. Her work in founding Harmony Hill has helped thousands of people on their journey with cancer, as well as their families. Her staff at Harmony Hill, including executive director Eric Blegen, work tirelessly to provide support and hope to those they serve. I am proud to call Harmony Hill a neighbor in Union, and thank Gretchen for her continued work in Mason County.

Finally, please take a moment to watch my latest video update. In this video I provide an update on my bill to reform our states B&O tax, House Bill 2150, which received a public hearing last week. To watch my video, click here.

Thank you for taking the time to read this update. I am always encouraged when I receive email, letters or phone calls from you. It’s great to see so many of you engaged in the legislative process. Please continue to contact me throughout session if you have questions, comments or concerns to share. I believe we can solve the issues facing our state by working together!

Join me tomorrow for a town hall:

Please join me and Rep. Dan Griffey for a town hall meeting!

When: Saturday, March 14 from 2-3:30 p.m.

Where: The Pavilion at Sentry Park (Senior Center), 190 W. Sentry Drive, Shelton

We look forward to updating you on the 2015 legislative session, discussing issues important to you, and answering your questions!

If you, or someone you know, have served as a Navy submariner like me, you may be familiar with halfway night.  Halfway night is a tradition celebrated at the halfway point of a patrol. It was always a good opportunity to catch our breath, and have a night to build solidarity amongst the crew. In the Legislature, we have reached the halfway point of the 2015 legislative session and we celebrated by sharing a few late nights on the House floor!

We aren’t using the halfway point of session as an opportunity to slow down, though. In fact, we are sprinting to the finish line of the 105-day session.  With revenue up over 8 percent and a strong economic forecast in February, there is no excuse to not get our work done within the allotted time. I am confident we will do the work necessary to negotiate a budget that is sensible, sustainable and does not raise taxes.

I have heard from a number of people from our district on the issue of taxes this year. Whether it be increasing the state gas tax, instituting a capital gains tax or the Business and Occupation (B&O) tax, I have heard loud and clear that taxes are standing in the way of real economic growth in our state. I am committed to working with my colleagues on both sides of the aisle to bring about much needed reform to the state tax code.

This morning, I testified in the House Finance Committee on my bill to reform one part of the tax code: our outdated and burdensome B&O tax. House Bill 2150 would eliminate the B&O tax for over 285,000 businesses in Washington state, provide flexible deductions to businesses grossing more than $500,000 a year, and put all businesses on equal footing. My bill is also revenue neutral, meaning it has no negative affect on the state budget. For more information on my bill click here.

This reform is about the future. Small-business owners know the risk it takes to open a business in Washington, which is consistently in the top five nationally for start-up business failures. They also know the B&O-tax bill comes regardless of how much money their business makes. It arrives between their mortgage and electric bill. They, and countless others, do this because they believe in the American dream. They do this to build our communities and create jobs in a slowly recovering economy. They know hard work is required, and are routinely up before the sun, and home well past dinner. Every community has folks like this.

We have an opportunity before us to give these businesses a fighting chance. We can undo decades of picking winners and losers by helping them grow and be the next Washington success story. I believe if we are to get Washington working again, we must work to reduce regulations and barriers to growth. By providing flexibility to our state’s job creators, I believe we accelerate job growth, and make Washington a leader nationally and a competitor globally.

I will continue to work with House leaders to keep this important reform moving forward!

Since my last update, much of our time has been spent on the House floor debating and voting on bills. I am happy to say I had three bills pass the House with strong bipartisan support.

• House Bill 1465 would require the Department of Labor and Industries to deposit funds for elevator inspections into a dedicated account. This will help ensure elevator inspection funds are protected and reduce a backlog of elevator inspections statewide. This bill passed with nearly two-thirds support in the House.
• House Bill 1636 would instruct state agencies with over 100 employees to issue a report on the number of persons with disabilities employed. The idea for this bill was brought to me by a constituent last year and helps identify work force opportunities for those with disabilities at state agencies. It passed the House unanimously.
• House Bill 1749, another constituent request bill, would end the requirement for homeowners working on their house to “flip” it to register with Labor and Industries as a contractor. Labor and Industries levied large fines against homeowners who made these types of improvements without registering as a contractor. Not only is this an unfair requirement, this practice hinders economic growth. I am happy it also passed the House unanimously.

I look forward to the Senate passing these bills and having them signed by the governor later this year.

Finally, I appreciate you taking the time to read this update and I encourage you to share your comments, concerns and questions with me. I am always happy to meet to talk about issues important to you and our community. Together we can make it morning again in America!

Upcoming town hall
Please join me and Rep. Dan Griffey for a town hall meeting!

When: Saturday, March 14 from 2:00-3:30 p.m.

Where: The Pavilion at Sentry Park (Senior Center), 190 W. Sentry Drive, Shelton, WA 98584

We look forward to updating you on the 2015 legislative session, discussing issues important to you, and answering your questions!

We have reached a major milestone in the 2015 legislative session. As of today, we have passed the policy and fiscal cutoff dates. This means bills that didn’t pass out of committee are dead for this session. For more information on cutoff, click here. While I am happy to see some bills “die,” there are others I would have liked to see move forward.

Here are two bills I am happy are still alive

House Bill 1219 would expedite permitting for bridges deemed structurally deficient. There are 130 structurally deficient bridges in Washington, and I believe we should look for ways to reduce the red tape in order to fix these bridges. As we saw with the Skagit River Bridge collapse in 2013, we can quickly and safely replace bridges by streamlining the process. It shouldn’t take a catastrophic incident for government to work more efficiently.

House Bill 1559 authorizes the board of regents at Washington State University to establish, operate, and maintain a school of medicine. By 2030 our state will be facing a massive shortage of doctors. This is an important step to increasing access to medical care and reducing associated costs.

A cutoff casualty

A good bill that died is House Bill 1607. This bill would recognize hydroelectricity as a renewable resource. Hydropower should be a part of the discussion when we consider available options for a diverse and effective energy portfolio.

A more extensive list was produced by the House Republican Caucus on bills that are dead and alive. This is not an exhaustive list and does not fully reflect all of my legislative priorities, rather it is a snapshot of bills still moving through the process. You can read more here.

A much needed reform

We live in the most innovative and productive state in the nation. Our state produces the world’s best airplanes, software technology, and is a gateway to economic opportunity. Yet, we are also ranked in the top five nationally for startup business failures by Forbes Magazine, and job growth outside of Seattle is stagnant. Many struggle to find work even as they hear the worst of the Great Recession is behind us. What’s more, businesses are unable to expand and accelerate job growth across the state.

I believe it is time to address a major factor in this lack of growth, and reform Washington’s business and occupation (B&O) tax code. Last week I introduced House Bill 2150 to modernize Washington’s B&O tax structure. The B&O tax was first adopted in the 1930s, and in the years since has been amended and complicated by both parties. The system is outdated and a major obstacle to business growth in our state.

The current system has 50 classifications and 10 different rates, plus multiple exemptions and deductions, which many call loopholes. Sectors of our state economy have struggled to survive, expand and add family-wage jobs. I believe the B&O system is partially to blame. As a state we have picked winners and losers for decades. I believe it’s time to put Washington businesses on equal footing and comprehensively reform our tax system, so businesses can survive, compete and grow.

My plan would give businesses the opportunity to deduct $500,000 of their gross receipts if that is greater than the other deductions the plan provides. This change alone would eliminate the B&O tax for over 285,000 businesses in the state. Businesses could also choose one of the following three deductions:

• Cost of goods sold;
• 30 percent of revenue; or
• Up to $200,000 per-employee compensation.

My plan maintains the aerospace and agriculture system currently in place. Further, we exclude non-profit organizations altogether.

You may be asking what this would do to our state budget. The impact of this reform is revenue neutral, meaning no money is taken out of the state coffers. We achieve this by consolidating the number of rates from ten to four, and having a service rate of 3.75 percent, retail/wholesale/manufacturing at 1.6 percent and telecommunications at 1.2 percent, while keeping aerospace at their current rate.

More information on exempted businesses by industry can be found here.

With this reform we make our states B&O tax fairer, flatter, and more flexible. We remove the tax burden on 285,000 businesses in our state with no impact on our state budget. We create a 21st century tax code that allows Washington state to lead nationally, and compete globally. And finally, we remove barriers to growth so that we can accelerate job growth and get Washington working again.

I look forward to this bill receiving a hearing in the House Finance Committee in the coming weeks.

Budget update

Last week we received another update on the revenue being collected by the state. The Washington Economic and Revenue Forecast Council revised their last report and indicated revenue for the 2015-17 budget will increase by another $129 million. This is in addition to the $3 billion in increased revenue over the last budget.

This is another positive sign and I believe there is no reason we can’t get a budget passed within the 105-day session.

In closing, I was honored to have my granddaughter visit the Capitol last week as part of the annual children’s day celebration. It truly served as a reminder that we are here to ensure our children and grandchildren inherit a better state, country and world!

I appreciate you taking the time to read this update and I encourage you to contact me to share your thoughts on these, and any other issues you care about.

Together, we can make it morning again in America!