Will Washington Reach a Budget Deal Before Shutdown?

Date: June 16, 2015

The clock is ticking toward end of month.

Washington lawmakers are trying to reach a budget deal before the end of June, when some state agencies would have to shut down and others scale back.

The Legislature failed to agree on a budget during the regular session and the first special session. Lawmakers are now in their second special session.

Democrats are proposing a $38.4 billion state budget for 2015-2017. Their latest proposal drops plans for an online sales tax increase, an increase in the business and occupation tax, and the ending of some tax exemptions. But their proposal still calls for a capital gains tax on some investment income above $25,000 per person.

The budget proposal from Republicans doesn’t include any tax increases. “We still think those taxes are unnecessary,” Republican Sen. Andy Hill told The Seattle Times.

According to the state’s Office of Financial Management, agencies that would shut down until a deal is reached include: the Economic & Revenue Forecast Council, the Environmental and Land Use Hearings Office, the Lottery, the Office of Minority & Women’s Business Enterprises, the Tax Appeals Board, and the Workforce Training and Education Coordinating Board.

Partial shutdowns would hit agencies including: Agriculture, Employment Security, Fish & Wildlife, Health, the Health Care Authority, the Insurance Commissioner, Labor & Industries and Licensing.

Failure to reach a budget deal would mean capital projects at state colleges would be suspended or canceled, and state parks would close. Payments from the Health Care Authority to providers for services could be delayed. Horse racing at Emerald Downs would be suspended. New applications for benefits would not be processed by the Labor & Industries department, and licensing of certain professionals could cease.


Related Content: Small Business News | Economy | Washington

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