Washington Narrowly Avoids Government Shutdown

Date: August 05, 2015

The state’s new budget includes many implications, especially for education.

Washington legislature barely avoided a government shutdown after passing a $38.2 billion spending plan in late June. The budget provides the state with tuition cuts for college students, raises for teachers and an end to preferential tax rates.

While the budget seems to be garnering early bipartisan support, some hoped an early projected influx would help provide relief for small business. Eyeing a $327 million gain in statewide revenue, State Sens. Doug Ericksen, Michael Baumgartner, and Michael Padden had called for $200 million of the projected revenue to help cut state business and occupation taxes.

However, the biggest part of the budget focused on education. The new agreement calls for a 15 percent reduction in tuition at the University of Washington and Washington State University, a 20 percent reduction at Western, Central and Eastern Washington universities and the Evergreen State College, and a 5 percent decrease at community and technical colleges. The reductions will be phased in over two years.

The budget also eliminates a handful of tax exemptions and extends others. It’s ultimately expected to raise about $350 million through 2019. The budget also halts a preferential business-and-occupation tax rate for royalty income and repeals a tax break for software manufacturers. It applies the business-and-occupation tax to some wholesalers based in other states and raises some excise-tax penalties.

“There is much here that will help Washingtonians across the state,” Gov. Jay Inslee said in a statement. “It makes a bold statement about what we value. I thank lawmakers for working with me to find the middle ground, even when that meant some tough sessions and long nights.”

Related Content: Small Business News | Economy | Washington

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