Inslee’s plan to fund McCleary likely DOA but challenges Legislature to act

Finally, someone in Washington has come up with a plan to fully fund education and meet the State Supreme Court’s demand.

Unfortunately, Gov. Jay Inslee’s proposal includes more than $4 billion in new tax revenue in the 2017-19 operating budget.

Yes, folks, that’s billion with a “b.”

We know for a fact that drastic of a proposed tax increase won’t sit well on this side of the state.

But we’re willing to give credit where it’s due, and at least Inslee came up with something. And it appears that it would satisfy the court’s mandate that it’s the state’s responsibility to pay for basic education for children, not that of the local school districts.

Many of the governor’s proposed taxes are recycled and refreshed increases that he has tried and failed with before. You’ll see familiar foes like a carbon tax and capital gains tax in his plan. In fact, those two taxes alone make up for more than 50 percent of his proposed revenue.

Inslee would give a big boost to what the state pays teachers. Local districts have long made up the difference between what the state offered and what its teachers needed to be paid with local levy money. In the McCleary decision, the Supreme Court says that burden lies with the state, instead.

The governor’s plan increases what the state pays a starting teacher by $19,000 a year. And while you’d think teachers would be rejoicing, most districts other than the very small ones would not see a huge increase because the districts have been supplementing state-funded salaries for years.

For someone to benefit, someone else has to suffer in Inslee’s plan.

Those selling assets will be hit with a new capital gains tax of 7.9 percent on $25,000 or higher gains. A new 1.5 percent to 2.5 percent business-and-occupation tax would impact those business that provide a service. Think lawyers, real estate agents, accountants and others.

Republicans were quick to react to the ambitious roster of taxes, saying, “The bottom line can’t be good for families and employers across Washington.”

We can’t say we’re thrilled with the idea, either.

But no other such detailed plan has been brought forth.

A legislative task force charged with coming up with a plan hasn’t produced one yet publicly. It’s expected just before the start of the session next month.

It will be interesting to see what the task force came up with and compare it with Inslee’s plan.

Because the state hasn’t produced and adopted a plan to meet the court’s demands, it is in contempt of the court and being fined $100,000 per day.

Right now, Inslee’s plan is the best we’ve got.

Let’s hope this finally pushes our state’s leaders in Olympia to come up with a better one.

This story was originally published December 28, 2016 at 4:46 AM with the headline "Inslee’s plan to fund McCleary likely DOA but challenges Legislature to act."