Published on Mar 19, 2021

Hope on the horizon: fiscal flexibility bill receives support in Senate committee

Contact: Candice Bock, Maggie Douglas

Last week, HB 1069 passed out of the Senate Housing and Local Government Committee. The bill now heads to the Rules Committee and awaits floor action.

HB 1069 has been the subject of heated debate between legislators—some opponents argue the bill goes as far as defunding the police. However, as we previously reported, 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. AWC needs cities to help generate greater understanding and support for what the bill really does.

 

The bill could not have made it this far without your city’s help. But the work doesn’t stop there. Contact your senators to tell them HB 1069 only makes modest, temporary changes for restricted city revenues.

Ask your senators to support the bill, as it will help cities get through the economic uncertainty of the pandemic.

HB 1069 provides the following:

  • 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 filing timeframe that is impacted by the emergency moratorium. This provision is intended to toll the 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.

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