Opponents of Initiative 2109 (repealing the capital gains income tax) are playing the same old fear card, but the state’s budget is booming—and the scare tactics aren’t fooling anyone.
Broke? Hardly. Washington’s Swimming in Cash and Hoping You Don’t Notice
Opponents of Initiative 2109 keep pushing the false claim that repealing the capital gains income tax would cause Washington to lose $2.2 billion over five years. This is simply not true. As The Washington Observer points out. that the money would come from a new tax source, not existing revenue. The state is already flush with cash, with billions in increased revenue expected even without the capital gains tax. State spending has skyrocketed, more than doubling in the last decade, far outpacing inflation.
As the Washington Policy points out, in March, the governor added $2 billion to the budget, pushing it to a record $72 billion. Various state programs, from education to mental health services, have seen millions in extra funding. Teachers at schools with a majority of low-income students are also getting a $5,000 bonus this year. So, far from being broke, the state is raking in more money than expected, often needing extra budget bills just to spend it. The constant “we’re broke” narrative is wearing thin, and people are catching on.
If Initiative 2109 passes, expect the usual sky-is-falling predictions about cutting vital services to go unfulfilled—politicians always make these threats, but they never actually shut down schools or parks. The truth is, the state can reprioritize its existing revenue, providing both tax relief and keeping critical programs intact. It’s all just political theater meant to scare voters. Read more at the Washington Policy Center.
Sound Transit’s New Motto: ‘Raising Costs and Eyebrows Since Forever’
The latest cost increases for the West Seattle light rail extension starkly illustrate Sound Transit’s ongoing, astonishing level of mismanagement. As Shift WA readers know, it’s a troubling pattern that’s persisted for decades. Originally projected to cost just under $4 billion, the project’s price has now surged by 28% to 40%, translating to an additional $1.1 billion to $1.6 billion. This failure is not a mere oversight but a glaring example of the agency’s chronic incompetence in budget management.
Sound Transit’s history of underestimating costs is well-documented, from the SR 520 bridge fiasco to other project overruns. The latest estimates, such as the $1.9 to $2.15 billion for the Duwamish River crossing, highlight a profound lack of accurate planning and oversight.
The potential switch to an elevated rail option, while financially appealing, further exposes Sound Transit’s inability to balance cost savings with community impact. Local opposition to such changes will likely delay the project even more.
These persistent cost overruns and planning failures reveal a systemic issue within Sound Transit, undermining public trust and questioning the agency’s competence in delivering critical infrastructure projects. Read more at the Urbanist.
Machinists Strike: $100 Million a Day? Who Cares, As Long As We Get Our Point Across!
Boeing is in a tough spot as the strike of 33,000 union machinists in Washington continues to drag on, with layoffs now looming for a lot of employees. The strike, which kicked off last Friday and is the first since 2008, has crippled Boeing’s Pacific Northwest operations. So much so that Boeing is losing $100 million every day, which only adds more pressure to an already struggling company. On Monday, Boeing’s CFO announced a hiring freeze and potential furloughs, signaling the layoffs we all saw coming. Though temporary, Boeing hasn’t said how many people will be hit. Boeing did say layoffs will affect many U.S. employees, including managers and executives. Meanwhile, we aren’t holding our breath about the possibility of striking workers stopping to consider the cost not just to Boeing, but also to their coworkers’ jobs—furloughs and layoffs aren’t exactly great for anyone’s paycheck, benefits or morale. Read more at MyNorthwest.com.
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