Friday, February 22 marked the first cutoff for the session. It was the deadline for bills to pass out of the policy committee. The next cutoff is looming this Friday, March 1 when bills will need to move out of their respective fiscal committees. Then the action moves to the floor. Our hot sheet continues to highlight bills that are still moving through the process and have key impacts on cities. Watch Logan’s cutoff date explainer video on the right sidebar for a refresher.

While there is still a lot of action occurring with bills moving through the legislative process, there is now more focus on the budget process. The next revenue forecast is scheduled for March 20 and we expect that the House may release their version of the 2019-2021 budget around that time. Budget writers are already starting to work on what the budget may look like.

A projected shortfall and potential new revenue sources

There are still many unknowns; however, we do know that they are working under the assumption that they have an approximately $3.5 billion deficit to pay for the current maintenance level operating budget and some additional items like the Trueblood settlement, state employee collective bargaining agreements, and the School Employees Benefits Board health insurance program. That budget deficit has led to a great deal of speculation and potential disagreement about possible new revenue proposals. The Governor’s budget included three new sources of revenue:

• Graduated REET (a tiered system based on property value)
• An increase in the state’s B&O tax on services
• A capital gains tax

Some or all of those options will likely be considered as the Legislature works to balance their budget proposals.

What cities need in the budget

In order to avoid city priorities from getting lost in the budgeting writing crunch, AWC has sent a letter to the budget leaders from each caucus highlighting our priorities for the 2019-2021. We encourage city officials to share this letter and its message about our budget priorities with your local legislators and ask them to advocate for these priorities with their budget leaders. It is critical that they know about our priorities now. We need do all that we can to get our priorities included in the initial budget proposal, because it will be much harder (and there will not be much time) to get it added afterwards.

It is critical that they know about our priorities now.

Here is a quick snapshot of AWC’s budget priorities:

• Fully fund state shared revenue distributions for cannabis, liquor, and fire premium taxes as well as the criminal justice assistance distributions.
• Fully fund the Public Works Assistance Account (also known as the Public Works Trust Fund) and recommit to the program by restoring the REET and solid waste tax revenue streams that have been diverted away from the fund for critical infrastructure needs related to housing and culvert replacement.
• Make additional investments in affordable housing through the Housing Trust Fund as well as a funding a new sales tax credit tool to allow cities to target community investments.
• Fund a watershed approach to correcting fish-blocking culverts by fully funding the Fish Barrier Removal Board’s $50 million request.
• Fund the mental health field response grant program to allow cities to hire mental health professionals to work with our police departments in responding to individuals in crisis.
• Fund the Municipal Research and Services Center (MRSC) to allow them to continue to serve as a critical and cost effective source of assistance for cities.

As fiscal and house of origin cutoff deadlines are fast approaching and work on the budget ramps up, it is important that legislators hear from their local officials. Please give them a call, send and email and seek out their town hall meetings to share your message.