Inslee proposes $57.6 billion budget that fights COVID-19, raises taxes

OLYMPIA — Washington’s government would spend some $57.6 billion over the next two years in its efforts to fight COVID-19, shore up the economy and clean up the environment, under plans released Thursday by Gov. Jay Inslee.

That total for the state’s operating budget — which covers most state programs, spending and salaries outside of transportation and major construction projects — would be an increase of about $5 billion over the current two-year budget.

“We need to act with vigor and resolution to help the recovery of the economy of Washington,” he said in a news conference releasing the budget. “Now is not the time to make cuts to the provisions of the state that help families and our businesses.”

Reaction from top Republicans on the committees that will hold hearings on Inslee’s budgets and craft spending plans of their own ranged from disappointment to “underwhelming” criticism of new taxes.

“I would’ve thought after eight years of trying, he would’ve been able to come up with more creative ideas than the ones he keeps coming up with that fail to pass,” said Rep. Drew Stokesbary, ranking member of the House Appropriations Committee, who called the whole package underwhelming.

The state would get some of that extra money from growing state revenues, but also from a proposed capital gains tax of 9% on annual investment earnings of $50,000 for a married couple and a draining of the state’s Rainy Day Fund. Inslee has proposed such a tax before.

Inslee is also proposing a monthly tax of about $3 on health insurance policies, which would be placed into a special fund to help pay for improvements in public health programs.

As part of the state’s effort to help recover from the pandemic, Inslee said he will ask the Legislature for quick approval of a second spending plan that would provide $100 million in assistance to struggling businesses that have had to close some of their services and another $100 million in rental assistance to landlords whose tenants have been unable to pay rent because they were laid off.

Sen. Lynda Wilson, lead Republican on the Ways & Means Committee, said the aid for businesses and rental assistance should’ve happened a long time ago. Wilson criticized him for refusing to call a special session earlier.

“We needed to be addressing this a long time ago,” she said. “Now it’s going to have to be warp speed to get it passed.”