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Four community leaders join the Budget & Policy Center board

Posted by Melinda Young-Flynn at Sep 07, 2018 02:15 PM |
Filed under: BPC News

We are pleased to welcome the following people to the Washington State Budget & Policy Center board of directors! They join a group of dedicated community leaders, academics, policy experts, and strategists who help shape the direction of our organization.  

Irene Basloe Saraf, community advocate

Irene Basloe SarafIrene is the founding board president of the Washington Housing Alliance Action Fund, and she also served on the board of the Tenants Union of Washington. Prior to moving to Seattle in 2003, Irene was the legislative director of the National Low Income Housing Coalition in Washington, D.C. Irene has a bachelor’s in humanities from Yale, a master’s in public policy from the University of Chicago, and a juris doctor from New York University. She is especially passionate about how the Budget & Policy Center’s work aligns with her commitment to advocating for the needs of people with low incomes. “I understand how access to stable, safe, and affordable housing supports people in the other aspects of their lives – education, employment, health, family – and that government investment is often necessary to ensure housing quality and affordability for low-income people,” she says. “Our social safety net depends on an equitable budget that includes sufficient taxation and ample investment in programs serving low- and moderate-income people.”

Karan Gill, chief of staff of King County Councilmember Dave Upthegrove 

Karan Gill headshotIn addition to his responsibilities with the King County Council, Karan (“ker-in”) is the lead on budget issues and oversees a variety of other policy issues for the district representing much of South King County. Previously, Karan led the public policy efforts for a local nonprofit, was the legislative aide to Washington State House Speaker Frank Chopp, and was campaign manager for Senator Kevin Van De Wege. He earned his bachelor’s degree from the University of Washington and a Master of Public Administration from Seattle University. “The mission and the work of the Budget & Policy Center is personal to me,” he says. “I was raised in a low-income household in South King County and witnessed first-hand many of the inequities that families face in our community. With that perspective, I have been fortunate to work on the state and local side of public policy to help advance policies through an equity and social justice lens.” Karan, who previously served on our community advisory board, is dedicated to undoing racial disparities in public institutions and fighting for more resources for those communities who are furthest from opportunity.

Jan Harrison, director of diversity stewardship and Achievement Rewards for College Scientists (ARCS) Foundation liaison, University of Washington 

Jan Harrison headshotJan has been with the University of Washington for more than 10 years. In her current role, she works to build healthy and productive communities and organizations through the application of critical race theory and impact-driven philanthropy. She also serves as a liaison for Achievement Rewards for College Scientists Foundation, an organization that supports graduate education in science, engineering, and medical research. She has a bachelor’s degree in marketing from Western Washington University and a master’s in cultural studies from UW. She is excited about helping the Budget & Policy Center serve the needs of populations who have historically faced barriers to opportunity through innovative, data-driven policies. “Economic, education, health care, and social inequities aren’t random, but are the outcomes of race-based oppressions embedded in policy and budget decisions,” she says. “As a race scholar, community activist, and Black American woman, I have unique perspectives on social areas concerning fiscal allocations and policy development that have been under-emphasized and under-utilized.”

Lauren Hipp, early learning senior campaign director for MomsRising

Lauren Hipp headshotIn her role at MomsRising, Lauren works to advance the organization’s commitment to ensuring all families have access to affordable, high-quality early care and education opportunities that are welcoming and inclusive, and that create environments where all children can thrive. She has almost 10 years of experience in the early learning field doing policy, advocacy and organizing, and program implementation in both Washington state and nationally. She has previously worked with Thrive by Five Washington, the League of Education Voters, and the University of Washington. She has a Master of Public Administration from the Evans School of Public Affairs at the University of Washington. She looks forward to supporting our organization's work on increasing opportunity and prosperity for all families in Washington, including our focus on racial justice. “I believe in the mission and guiding values of the organization and deeply appreciate the analysis and focus on budget and tax policy to ensure Washington is budgeting with a centering on families and communities,” she says.

 

U.S. Supreme Court decision puts Washington’s economic well-being at risk

Statement from Washington State Budget & Policy Center Executive Director Misha Werschkul 
 
The U.S. Supreme Court ruling in Janus v. American Federation of State, County, and Municipal Employees will have a negative impact on all of us who rely on the critical public services that public sector employees deliver in communities across the state. And it will especially hurt the employees themselves – hundreds of thousands of firefighters, teachers, park rangers, nurses, and other public sector workers.


Since the 1970s, the U.S. economy has become increasingly out of balance, with gains in income concentrating among the very wealthiest, while low- and middle-wage workers have seen stagnating or declining incomes. In Washington state, the top 1 percent has an average income 22 times higher than the average income of the entire bottom 99 percent (see our "Building an Inclusive Economy" report for more details). A key driver of increased wage inequality is declining union membership, which has weakened the bargaining power of working households, especially in private sector jobs.   

Washington state has one of the highest rates of union membership in the country. A majority of state and local government employees are currently represented by unions, and these unions have led the way on efforts to reduce poverty, promote equity, and improve public services – both through the collective bargaining process and through public policy advocacy. Public sector unions have been key partners in efforts to raise the statewide minimum wage, provide paid family and medical leave to all workers, and make sure all children have access to a great public education.

This Supreme Court decision goes far beyond an attack on public sector workers. It is a setback for efforts to promote shared prosperity in Washington state and across the country. Now it is time for our state and local elected leaders to respond with policies that strengthen the economic well-being of Washington's working people and communities. They must enact and enforce stronger labor standards in our state, implement and modernize the Working Families Tax Rebate, protect workers' rights to organize, and ensure sufficient funding for vital public services.

For more details on the importance of public sector unions, read this Washington Post article by economist Jared Bernstein: "Bend the trend: Reviving unionization in America." 

KIDS COUNT: Inaccurate census data could jeopardize progress for Washington’s kids

Posted by Melinda Young-Flynn at Jun 27, 2018 09:50 AM |
 
Nearly 1 in 6 Washington children under age 5 live in neighborhoods where there’s a high risk that the U.S. census will fail to count them accurately, says a new report from the Annie E. Casey Foundation. An inaccurate 2020 census will erode essential public services for children in Washington and across the country, according to the 2018 KIDS COUNT Data Book released today.


Funding for essential health care, early education and K-12 learning, and other basic services depend on an accurate count of our communities. In Washington state, more than $3 billion in federal dollars are allocated yearly to Medicaid, food assistance, Head Start and other programs that help families meet basic needs. 

KIDS COUNT 2018 Data Book

Low-income children, children of color and children living in immigrant households are at greatest risk of being undercounted. The census may also miss children growing up in rural areas, tribal lands or in urban neighborhoods where census workers may have a hard time reaching households.

Further, the Trump administration’s proposed addition of an unnecessary question about citizenship will discourage countless others from filling out the 2020 census form. People without documentation and their families will be afraid that participation will result in having their lives, their families or their communities torn apart by Immigration and Customs Enforcement. 

“To give kids the full and equal opportunities to grow and thrive so they can be counted on in the future, we need to count them now,” said Paola Maranan, executive director of the Children’s Alliance. “Without robust efforts to get an accurate 2020 census, we place our shared future in jeopardy.”

In Washington state, an estimated 67,000 of the state’s 447,000 children under age 5 live in census tracts where households responded poorly by mail to the 2010 census—and may do so again in 2020. 

The Data Book notes that the threat of greater inaccuracies in the census coincides with the child population passing a landmark: in 2020, most of the U.S. population aged 18 and under will be of color.

“Low-income children, children of color and kids living in immigrant families stand to be disproportionately undercounted, while also having the most to lose as vital programs are sapped of public investment,” said Misha Werschkul, executive director of the Washington State Budget & Policy Center.

The annual KIDS COUNT Data Book ranks each state across four domains of child well-being: health; education; economic well-being; and family and community.

Washington state, which ranked 15th among the 50 states overall, ranked in the top 5 for child health. The percentage of uninsured Washington children fell by half from 2010 to 2016, from 6 to 3 percent. This progress is partially due to state-level efforts to connect more children with affordable, preventive health care through Apple Health for Kids. Apple Health for Kids is supported by federal investments in Medicaid and the Children’s Health Insurance Program, with funding allocations that depend on population estimates derived from the census.

Our state has the greatest room for improvement in the education domain, where it ranks 26th. One in 5 students don’t graduate on time, and almost 60 percent of three- and four-year-olds are not enrolled in preschool.

KIDS COUNT in Washington recommends that two things about the flawed census be changed. First, federal officials need to allocate sufficient funds to support a more accurate census in which as many people as possible can be counted. Second, the census form should be true to the purpose of the count that was originally stipulated in the U.S. Constitution: to count all people who live within U.S. borders. Questions that ask about citizenship will undermine participation—and they are simply not required.

Read the full 2018 KIDS COUNT Data Book. And read the KIDS COUNT Washington state 2018 profile 

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Media Contacts: 

Melinda Young-Flynn, melinday(at)budgetandpolicy(dot)org, (206) 262-0973, x223
Adam Hyla E. Holdorf, adam(at)childrensalliance(dot)org, (206) 324-0340 ext. 18

About KIDS COUNT in Washington
KIDS COUNT in Washington is a partnership of the Children’s Alliance and the Washington State Budget & Policy Center, made possible by support from the Annie E. Casey Foundation. It pursues measurable improvements in child outcomes through equitable public policy measures. For more information, visit www.kidscountwa.org

About the Annie E. Casey Foundation
The Casey Foundation creates a brighter future for the nation’s children by developing solutions to strengthen families, build paths to economic opportunity and transform struggling communities into healthier places to live, work and grow. Visit datacenter.kidscount.org for the most recent national, state, and local data on child well-being from the Casey Foundation's KIDS COUNT Data Center. 

 

Five essential truths about our state tax code

We’re hearing a lot of conversations these days about a topic previously off the table at most social gatherings: our state’s tax code. As an organization that advocates for the important role that taxpayers’ investments play in the well-being of our state, we welcome the interest in this topic of conversation. 

Unfortunately, many myths permeate the public discourse about our state tax code. At the Washington State Budget & Policy Center, we are committed to making sure you know the truth about that tax code – and the real solutions that must be enacted in Olympia to make it work for everyone. Because it is a tax code that doesn’t live up to our values. It isn’t set up to invest in our communities in the short and long term. And it is set up to favor corporations, special interests, and the ultra-wealthy over everyday Washingtonians. As a result, the tax code creates additional barriers to economic opportunity for many communities of color and people with low incomes. 

Here’s the truth about the ways our tax code is failing our state:

1. Yes, Washington state really does have the worst tax code in the nation for working people. Specifically, those with the lowest incomes pay almost 17 percent of their incomes in state and local taxes, while those in the top 1 percent pay less than 3 percent. That’s completely upside down. And this takes a particularly heavy toll on many people of color in our state who have low incomes as a result of generations of systemic racism. 

2. The tax code is too dependent on regressive sources of revenue that aren’t growing with our modern economy. Our tax code relies way too much on the super regressive sales tax. Further, by mostly taxing goods (like household necessities and toiletries) and not high-end services (like many spa services and financial advising services), the tax code also misses out on a major opportunity for growing revenue (see chart below) that primarily comes from higher-income people who already get better deals in the tax code. 
 
Goods vs services 2017

3. The property tax system doesn’t support the needs of people with middle and low incomes. Although our state’s property taxes are an important source of revenue for our schools and community services, they are structured in a way that makes homeowners with middle and low incomes shoulder too much responsibility to support community needs – like schools and public safety. Property owners often pass the cost of increased taxes onto renters through higher rents. Without targeted safeguards or rebates in place to offset some of these taxes for homeowners and renters who cannot afford them, the system stays broken. 

4. Our state has hundreds of harmful and unnecessary tax breaks on the books for corporations and special interests. Those tax breaks are funneling money away from investments that serve all our communities, like our schools, our parks, and our public transportation systems.

5. Overall, our tax code is simply not providing reliable revenue to pay for critical services. As of 2018, our state revenues are still well below the levels from before the Recession, when adjusted for economic growth (see chart below). In a growing state with a strong economy, that is simply unacceptable – especially given the challenges we face with issues like homelessness and unaffordability in our communities. 

Revenue trend 2018

But there are solutions.

We’ve laid out commonsense solutions to these problems. To start turning the tax code right-side up and creating new revenue, our state legislators should:

These policies would also importantly take some steps to help undo some of the racial inequities in our tax code. For example, if the WFTR were enacted, it would strengthen the economic security of many families of color with low incomes throughout our state. And the largest rebates would go to Latinx people, Asians or Native Hawaiian/Pacific Islanders, and American Indians/Alaska Natives.

In the work to clean up our state’s tax code, let’s make sure that accurate information is drowning out the myths and half-truths. With a real understanding of what we want our tax code to look like, we can work to make sure it is equitable and invests in all of us. 

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House budget smartly proposes capital gains tax, but ignores Supreme Court’s order to fund schools this year

Posted by Melinda Young-Flynn at Feb 20, 2018 07:03 PM |
Statement from Executive Director Misha Werschkul

In their just-released budget proposal, House Democratic leaders revealed a plan that would improve equity in our state tax code by closing the capital gains tax break enjoyed by 2 percent of the wealthiest Washingtonians. We applaud the House’s move toward a more balanced tax code, but there are some drawbacks to the plan – including putting off funding teacher salaries another year and drawing from the state’s rainy day fund – which could threaten the long-term well-being of our communities.


Expanding on a similar proposal from their counterparts in the Senate, House leadership proposes a nearly $1 billion withdrawal from the state’s rainy day fund to provide property tax cuts across the state for the next two years. As we noted in our response to the Senate’s plan, this is a short-sighted use of the state’s emergency savings, which are meant to help keep schools, hospitals, and other critical services running when the state experiences an economic downturn. The rainy day fund should not be used to pay for tax cuts – especially during these good economic times.

Moreover, while closing the tax break on capital gains is a significant step toward rebalancing our upside-down tax code – in which low- and middle-income Washingtonians pay up to seven times more in taxes as a share of income than the top 1 percent – dedicating that revenue to across-the-board property taxes is a missed opportunity to generate additional revenue to strengthen our communities. Higher-income households do not need more tax breaks. 

Instead, lawmakers should focus on investments that lift up Washingtonians with low and middle incomes who already pay more than their fair share of taxes to support the community investments that serve us all. They should also prioritize meeting the state Supreme Court’s deadline to provide critical support for teachers and students by the start of the 2018 school year. 

Lawmakers in both chambers have an opportunity to set our state on a path toward a stronger and more equitable tax code to fund thriving communities. Closing the tax break on capital gains is an excellent start. 

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Our testimony on House Bill 2967 and the need to close the capital gains tax break

Posted by Melinda Young-Flynn at Feb 16, 2018 02:54 PM |

Executive Director Misha Werschkul testified on February 16 at the House Committee on Finance in support of closing the tax break on capital gains in our state. Below is the testimony she prepared.

Misha cap gains testimony 2018Thank you Madame Chair and members of the committee for putting forward this proposal and for your commitment to promoting equity in our state tax code.

As you know, Washington state has the most upside-down tax code in the country – in which low- and middle-income households pay up to seven times more in taxes as a share of income than the richest 1 percent. The Budget & Policy Center supports closing the tax break on capital gains because:

  • It would take a first step toward rebalancing our tax code, by requiring the very wealthiest Washingtonians to pay a tax on profits from the sale of high-end financial assets. This proposal excludes middle-class investments like the sale of homes, farms, and small family businesses, as well as assets in retirement accounts or college savings accounts. As a result, fewer than 2 percent of the very wealthiest Washingtonians would be impacted by this proposal. This is a modest tax increase for the richest – only 1.5 percent of their incomes on average – but it would constitute a significant step forward in rebalancing our tax code.
  • It makes the tax code more sustainable. This is common-sense fiscal policy to provide new resources for the investments that help our communities thrive. This is not a new concept. Forty-one states have enacted capital gains taxes, and every one of those states has a tax code that is more equitable than Washington state’s. Because of our overreliance on a handful of relatively regressive taxes, our tax code also suffers from structural inadequacies. We’ve seen the effects of that structural deficit as we’ve grappled with how to fund public schools. Enacting a tax on capital gains would diversify our state’s revenue streams and make the tax code more sustainable in the long term.

That said, we believe that using the revenue from closing the tax break on capital gains to provide across-the-board property tax cuts is a missed opportunity to address the structural inadequacies of our tax code. Our state’s property tax is a core pillar of funding for public services like public schools. Higher-income households do not need another tax break. A better approach to promote family economic security is to enact targeted reforms to help low- and middle-income families and raise needed revenue to invest in schools, effective mental health services, and other areas. 

We encourage lawmakers to use revenue from closing the tax break on capital gains to:

  • Strengthen investments in schools and early learning, health care and mental health, work supports, senior services, or a host of other priorities that would provide a brighter future for all of our communities.
  • Fund the Working Families Tax Rebate to help keep working families out of poverty and take an additional step toward rebalancing the tax code; and/or
  • Enact a property tax safeguard rebate (or circuit breaker), a targeted approach to keeping property taxes from taking too large a chunk out of family budgets for low- and middle-income homeowners and renters.

Thank you for your work on this. We look forward to continuing the discussion.

 

President Trump’s budget won’t strengthen the economy. It will harm Washington state

By Misha Werschkul, executive director

President Trump’s 2019 budget does nothing to bolster the economic security of people with middle and low incomes – which is critical to create a thriving economy. Instead, his budget actually threatens the economic security of millions of Washingtonians who rely on federal programs to be able to pay for food on the table, a roof over their head, health care, and other basic needs. Further, it will have profound ripple effects on Washington's local economies. 

While this budget is largely symbolic, since the U.S. Congress just approved a two-year budget deal, these extreme proposals should not be ignored. They are an important signal of the president’s priorities. Many of the specific proposals included in the budget have been introduced before and could be incorporated in future budget proposals or stand-alone legislation this year.  

On the heels of the passage of harmful new federal tax breaks that benefit the wealthy and corporations to the detriment of people with low and middle incomes, President Trump laid out a recipe for increased poverty, homelessness, and inequality. Specifically:

  • He again calls for repealing the Affordable Care Act (ACA) and drastically cutting Medicaid, putting health insurance for millions of Washingtonians at risk.
  • He calls for huge cuts in nutrition, housing, and other basic assistance for millions of Americans below or close to the poverty line, most of whom work for low wages, are elderly or have disabilities, or care for young children. For example, the president cuts nearly 30 percent over 10 years from the Supplemental Nutrition Assistance Program, which currently helps put food on the table for more than 900,000 Washingtonians.
  • He proposes deep cuts to the non-defense discretionary budget that funds education, scientific research, job training, and other core government functions. This would result in massive and unsustainable cost shifts to state governments.  

Instead of pursuing the policies proposed by President Trump, federal leaders should take common-sense steps to support families and grow the economy. They can do this by investing in high-quality job training and apprenticeships; increasing access to safe, affordable, dependable child care and care for family members with disabilities; and advancing policies that create jobs and raise wages for working families. 

For more analysis about this harmful budget proposal, see this statement from Bob Greenstein, president of the Center on Budget and Policy Priorities: "Trump budget offers stark vision."


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