Shoppers in Washington state may soon be asked to dig more deeply into their pockets.
As state legislators prepared to convene in Olympia to hash out a special-session response to a $2 billion shortfall in state revenue, Gov. Chris Gregiore proposed a three-year sales tax increase of 0.5 percent. The increase would raise the state's rate to 7 percent, generating an estimated $494 million over a span of three years.
"We're trying to assess whether there's any stomach for going to the ballot with a sales tax increase as proposed by the governor," Rep. Jim Moeller, D-Vancouver, said. "That's probably the major part of her proposal."
The upside to the tax, however, is that it could be used to help "buy back" the 13 percent cut proposed by Gregoire for community and technical colleges. With the governor looking to slice $160 million out of the higher education budget, the "buy back" option could appeal more to voters.
"Further cuts to higher education would jeopardize our future economic prosperity," said Trustee Association of Community and Technical Colleges President Tom Malone. "We must stand with the governor and make this investment for our students and our state."
The sales tax increase would require a majority vote in both the House and the Senate before it can go to the ballot in March. Under Initiative 1053, a two-thirds supermajority vote in the Legislature could implement the tax without a public vote, though Republican opposition in this case would likely prevent that from happening.
Of the projected $494 million the tax would generate, $412 million would go toward education from K-12 to the university level, according to a Nov. 21 press release from the state Office of Financial Management. The remainder would go toward public safety measures and preserving long-term care services, the release said.
"After three years of cutting, now is the time to invest in a better future for all Washingtonians - for all of us to take responsibility and, yes, spend a half-penny more," Gregoire said at a budget presentation Nov. 21.
Moeller reiterated that the special session, which started Nov. 28 and breaks Dec. 17 for the holidays, will likely be heavy on cuts and reductions to multiple areas.
"The promise is this: that we will have to pass a budget that is basically all cuts," Moeller said. "Then we'll have to pass the revenue resolution that goes along with it to voters."
Moeller added that he personally would not vote for a budget proposal that does not incorporate a new revenue source, such as a tax.
Reactions at Clark reflect sympathy, but mixed emotions, regarding the decisions confronting the Legislature.
"I know that they have to come up with revenue from somewhere, but I don't know if this would be the best option, or if it's really going to make the impact that they hope that it would," Director of Student Life & Multicultural Student Affairs Sarah Gruhler said about the sales tax proposal.
Early childhood education professor Kathy Bobula said the regressive nature of sales taxes is an unfortunate reality.
"I'm glad Gov. Gregoire is trying to do something to repair the enormous damage that's going to happen, especially to higher education," she said. "The one thing that I feel bad about with that proposal is that sales taxes harm people who are low-income disproportionately. For people who don't have a lot of money, every nickel counts."


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