AWC priority bill HB 1069 provides limited fiscal flexibility designed to help cities through the economic challenges created by the pandemic. HB 1069 passed the House late Friday with a vote of 56-42. It now heads to the Senate for committee hearings.

AWC would like to thank the bill’s primary sponsors, Rep. Gerry Pollet (D–Seattle) and Rep. Davina Duerr (D–Bothell), for their leadership and Rep. Keith Goehner (R–Dryden ), Rep. Carolyn Eslick (R–Sultan), and Rep. Mike Steele (R–Chelan) for their ongoing support.

While we are pleased that the bill has passed the House, we had hoped for greater bi-partisan support. We crafted the bill to be primarily short-term with modest flexibility for some existing restrictions on revenues. Unfortunately, during the House floor debate, the bill was characterized by some legislators as an effort to defund the police and break promises to voters. There were suggestions that local city elected leaders couldn’t be trusted with greater flexibility.

We need your help to change this damaging narrative as the bill moves to the Senate. Please let your senators know that HB 1069 makes only modest changes that are mostly short-term.

AWC began discussing the bill last summer when concerns about the pandemic recession and economic impacts were emerging. We proposed the approach of temporary flexibility with certain existing restricted revenues as a way for the Legislature to help cities without impacting the state’s budget. HB 1069 creates local options for city elected leaders to use their limited tax dollars where they are needed most.

Please share the following information with your Senators:

Even in good economic times, city revenues don’t keep up with the rising costs of goods and services. Our budgets are stretched thin to cover new COVID-19 related expenses, on top of revenue impacts from the pandemic recession and ongoing economic uncertainty.

None of the flexibility provisions in the bill increase existing taxes, nor do they allow voter-approved funds to be used for something unrelated to the purpose authorized by voters. Instead, the bill provides modest flexibility to direct funds where they will have the most impact right now.

Additionally, HB 1069:

• Allows a greater portion of the local Real Estate Excise Tax (REET) to be used for operations and maintenance of capital facilities through December 31, 2023.
• Allows the chemical dependency or mental health treatment sales tax to be used for certain capital projects necessary to the operation or delivery of those services.
• Broadens the definition of criminal justice purposes for the Criminal Justice Sales Tax to allow funds to be used for programs that will reduce interactions with the criminal justice system through December 31, 2023 so communities have greater flexibility to put these limited funds where they are most needed.
• Allows funds from property tax levies approved in King County between 2015-2022 to supplant existing revenue. This does not allow for the funds to be redirected from their voter approved purposes but allows for the funds to continue supporting existing services instead of requiring they be spent on new programs at a time when local governments may be able to afford to maintain existing services.
• Allows a city to impose a utility lien for past due charges when the emergency moratorium is lifted. Currently utility lien authority has a limited time frame for filing that is impacted by the emergency moratorium. This provision is intended to toll that timeframe to accommodate the emergency moratorium.

For more information of how to communicate strategically with your legislators, visit our strong city advocacy guide and learn how to testify remotely.