The Daily Briefing – May 23, 2024

Democrats’ capital gains tax: the gift that keeps on taking… and taking… and taking.

Capital Gains Income Tax Flops, Voters Might Get the Last Laugh

Surprise, surprise… Democrats are terrible budgeters. It appears that yet another one of Democrats’ revenue schemes – this time the capital gains income tax – isn’t going as expected. According to a recent report, the state collected $433 million in capital gains tax in 2024. That’s a significant drop from the $786 million netted in 2023. From the Washington State Standard:

“Each fiscal year, up to $500 million from the tax is deposited into a state account for schools, early learning, and child care programs. Any tax collections beyond that amount go to an account that helps pay for school construction and renovations.

“The tax has generated slightly more than $1.2 billion for the current two-year budget cycle, which runs through June 30, 2025. But lawmakers counted $1.5 billion for the state’s operating and capital budgets, and $1.7 billion in the next biennium.

“That means steps may be needed to cover any gap. Next month, the state’s chief economist will release a new revenue forecast with estimates of how much this tax will bring in for the next couple years.”

Supporters – aka Democrats – of the capital gains income tax say that it’s “too soon to fret about budget adjustments.” Of course, for Democrats, that doesn’t mean spending cuts… it just means more taxes. Meanwhile, thanks to Initiative 2109 calling for a repeal Washington’s capital gains tax, voters will have their say on whether the capital gains income tax stays or goes this November. Read more at the Washington State Standard.

Rep. Melanie Morgan: When 'Direct Communicator' Really Means 'Terrible Boss'

After Shift WA previously reported, Democrat State Rep. Melanie Morgan (Parkland) is a terrible boss – and now she’s facing some consequences for her actions. Morgan is required to undergo remedial training on workplace conduct before regaining full access to legislative staff. This follows a 55-page investigation of allegations by a former aide, who claimed Morgan yelled at them, called the Legislature a “plantation,” and criticized their “proximity to whiteness.” The aide, of mixed race, also reported being referred to as “Starboy” by Morgan.

Morgan, representing the 29th district in Pierce County, also faces potential discipline from the Executive Rules Committee, her caucus, or House administration. Her access to administrative support and communications staff has already been suspended. In a statement, Morgan did not deny the allegations. Rather, in a comical understatement, Morgan attempted to underplay her abusive language by calling herself a “direct communicator.”

This is the second investigation into Morgan’s conduct, following a previous incident involving bullying and retaliation against a policy analyst while working on the Social Equity in Cannabis Task Force. Read more at the Washington State Standard.

“Failing Football Teams Need a New Coach”: David Olson Calls for New OSPI Leadership in Debate

On Monday evening, candidates for Washington’s superintendent of public instruction debated on student mental health, absenteeism, and parental roles in education. Incumbent Chris Reykdal, Peninsula School Board member David Olson, and Reid Saaris participated in the debate hosted by the League of Women Voters.

Arguably the stand-out candidate, David Olson came out swinging by criticizing the Office of Superintendent of Public Instruction (OSPI) for ongoing mediocrity, citing poor math scores and school closures. Quite rightly, he compared the situation at OSPI to a failing football team needing a new coach. During the debate, Olson also emphasized the need for increased state funding for special education and proposed holding the Legislature in contempt for not meeting funding mandates. He blamed smartphones for student mental health issues and praised his district’s phone-free policy, which has improved students’ overall educational experiences. Read more at Gig Harbor Now.

Seattle's Transportation Levy: Taxing More to Pave Less

Seattle is planning to add yet another tax on residents – and, of course, it’s not for what’s really needed. This week, the Seattle City Council is holding hearings on the mayor’s proposed transportation levy, which aims to raise $1.45 billion in property taxes over eight years. The levy will fund a variety of projects, including $114 million for bike infrastructure and $59 million for climate initiatives. Only $423 million is earmarked for street maintenance, despite the Seattle Department of Transportation’s (SDOT) 2020 report indicating much more funding is needed.

Anyone who has been in Seattle recently cannot be surprised to find out that past underfunding has left over 35% of arterials in poor condition. And street conditions are expected to worsen over the levy period. Refusing to prioritize basic transportation needs isn’t anything new in Seattle. Historically, less than 10% of SDOT’s budget was spent on arterial repaving, with more allocated to streetcars, transit subsidies, and other projects. In Seattle, city priorities – including bike lanes and other climate-friendly initiatives – have not aligned with, well, reality. As a result, Seattle is filled with potholes. Read more at the Washington Policy Center.

This Week’s Newsmaker Interview…

David Olson, a seasoned member of the Peninsula School District Board of Directors and candidate for Washington State Superintendent of Public Instruction, joins us for our latest Newsmaker Interview. Olson brings over a decade of experience in educational leadership and a firm resolve to address significant shortcomings in the current administration under Chris Reykdal. Olson’s campaign is built on a commitment to restoring collaborative relationships between the Office of Superintendent of Public Instruction (OSPI) and local school boards, emphasizing the importance of community involvement in education. Read more here.

OVERHEARD ON THE INTERWEBS...

Yet again, Bob Ferguson as at the center of a political scandal…

Turns out, there is hope… even the most liberal voters can learn a lesson.

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