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Manweller predicts tax package for transportation projects

by Herald Staff WriterJoe Utter
| December 23, 2013 10:00 AM

ELLENSBURG - Rep. Matt Manweller doesn't expect the upcoming 60-day Legislative session to go into overtime this time around, but a new tax package for transportation projects still looms.

Lawmakers have been struggling this year to come to an agreement on a transportation plan, and Manweller, R-Ellensburg, said there will be more negotiations before the regular session begins next month. He added there is a strong possibility the Legislature will be looking at another transportation revenue tax package, something he said he cannot support right now.

"Obviously, I think there's a dire need for infrastructure investment, particularly in Grant County, but I don't feel comfortable giving the state Department of Transportation $10 billion until they first can show me they can reform the way they spend it," Manweller said. "If you show me you're willing to spend the money much more efficiently and effectively, I'm willing to pony up a little bit for needed infrastructure but not willing to throw good money after bad."

"I'm open to it if they can show me some reform," he added, including reform of prevailing wage, the permitting process, environmental litigation process, and the sales tax process.

Last month, Gov. Jay Inslee sought an agreement when lawmakers held a special session to approve tax breaks for Boeing, a deal valued at about $10 billion and relying on an increase of more than 10 cents per gallon to the state's gas tax, which Manweller said would be used to pay off bonds for at least the next 25 years.

"You're taking out a 30-year mortgage to borrow a dime," Manweller said. "You end up paying back a quarter on that dime. It ends up being just really bad financial management."

Manweller said he will be pushing for a series of tax incentives, a rural research and development tax credit, to promote economic development and job creation in Eastern Washington, much the same tax breaks that were offered to Boeing to ensure the 777X aircraft is produced in the state. He is the ranking Republican on the Labor and Workforce Development Committee and also serves on the Government Operations and Elections and Health Care and Wellness committees.

"I'm willing to vote for your $8 billion tax break to save your west side jobs, but if we're here for you today, I hope you're there for us next session," Manweller said, adding the tax cuts would be similar to the ones that expired in 2010, and helped bring Genie Industries and SGL Automotive Carbon Fibers to Grant County.

Manweller said he does not expect a big supplemental budget fight come January, thanks to the work done during this year's overtime sessions.

"We did such a good job last year of not raising taxes and fully funding everything," he said. "We have a little bit of a surplus this year instead of a deficit. The budget fight is going to be a little bit boring."