The Daily Briefing – October 9, 2024

For the Marysville School District, the solution to a financial meltdown is apparently to hand $400K to the superintendent who steered them into the mess.

Marysville’s $400K Farewell: Paying Big Bucks to Make a Bad Problem Go Away

The Marysville School District is in such bad shape that the state had to step in and take over its finances, yet somehow it’s decided that giving former Superintendent Zachery Robbins, Ph.D., over $400,000 to leave is a good use of taxpayer money. Robbins will be getting $29,150 a month for a year, along with full healthcare benefits and a $50,000 lump sum for moving and legal expenses. And if that’s not enough, he’s also getting paid for every sick and vacation day he didn’t use. “The state placed the district under enhanced financial oversight. Special Administrator Arthur Jarvis, Ph.D., is now overseeing the district’s finances and approved the severance agreement for Robbins.” Yes, the guy in charge of cleaning up this mess signed off on this deal. On top of that, the district will cover Robbins’ attorney fees if he gets sued over his actions as superintendent—allowing him to hire a lawyer at up to $550 an hour. Meanwhile, the district couldn’t pass key levies, overspent to the point of state intervention, and might face dissolution if they don’t get their act together. But sure, let’s spend over $400k to show Robbins the door. Read more at MyNorthwest.com.

Seattle’s Wage Hike: Boosting Pay While Sinking Small Businesses

Seattle’s 2025 minimum wage hike to $20.76 an hour is being hailed by Mayor Bruce Harrell as a boost to the local economy, but small businesses, especially restaurants, are bracing for impact. The Washington Hospitality Association points out that the end of the tip credit—where small businesses could pay a lower wage if workers earned tips or received medical benefits—will hit restaurants already struggling with razor-thin margins. Washington’s restaurant profit margins are now 60% lower than the national average, and Seattle’s high labor costs are only making things worse. While Harrell claims more money in workers’ pockets will boost spending, the Washington Hospitality Association notes that business traffic hasn’t increased despite past wage hikes. Small restaurants may be forced to cut staff, worsening customer service, or remove tips altogether, which many customers and servers oppose. Despite Harrell acknowledging the burden on small businesses, there’s been no real action from the city to offer relief. With no help on the horizon, local restaurants are left scrambling to figure out how to survive this latest financial blow. Read more at the Center Square.

Seattle’s $7 Billion Boondoggle: Paying Premium for a Rail Line Nobody Asked For

Sound Transit’s West Seattle light rail extension just got a lot more expensive, with the latest estimate ballooning from $4 billion to over $7 billion—nearly triple the original 2016 projection. This four-mile, four-station project would now cost over $1.5 billion per mile, making it one of the most expensive light rail lines in the world. Yet, despite the eye-popping price tag, the line is expected to produce less than a 1% increase in total transit ridership. To make matters worse, it won’t significantly reduce congestion or greenhouse gas emissions either. RapidRide express buses already serve the area, providing nearly the same service at a fraction of the cost. Rather than reconsidering the project in light of these issues, the Sound Transit Board seems focused on finding more funding, instead of exploring lower-cost, more effective alternatives. Of course, unfortunately, we expect no less from Sound Transit. Read more at the Washington Policy Center.

Cut Through the Noise: WPC’s No-Nonsense Guides to Washington’s Ballot Initiatives

The Washington Policy Center (WPC) has released new Citizens’ Guides to the four major initiatives on the Washington state ballot. These guides provide clear, factual analysis of each issue, including the background, potential impacts, and arguments for and against each initiative. The guides cover topics such as repealing the Climate Commitment Act, making WA Cares optional, repealing the state’s capital gains income tax, and laws affecting natural gas use. You can find them all here.

Seattle Police Paychecks: A Case Study in How to Not Implement a Payroll System

According to KTTH’s Jason Rantz, as the Seattle City Council approved a $50,000 hiring bonus for new police officers, current officers are caught in a pay nightmare. A new payroll system, Workday, pushed by Mayor Bruce Harrell’s office, is failing to handle the complexities of police pay, leaving many officers with paychecks that are half of what they expected. Officers are also missing special event overtime, and some are facing medical coverage lapses and fears of defaulting on loans because the city isn’t depositing matching retirement funds.

Despite warnings from SPD leadership over the last two years about potential disasters with Workday, the mayor’s office forged ahead anyway, leading to this chaotic situation.

Issues extend beyond just paychecks; leave accruals, overtime rates, and federal withholdings are all messed up. Even adding dependents to health insurance has been impacted.

Of course, the mayor’s office is scrambling to downplay the event of their incompetence. But they can’t escape reality. As Rantz points out, many officers fear that if the payroll issues continue, they could default on loans taken against their deferred compensation. In short, the city’s failure to listen to police leadership has created a significant mess that has officers struggling financially. All while – ironically enough – the city is attempting to recruit more officers via pay incentives. Read more at KTTH.

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