Category: Economy

Business, Economy, Elections, homelessness, legislature, Morning Fizz, Police, State of Washington, Taxes

Ballot Measure Would Reinstate Sweeps, Harrell Joins Mayor’s Race, and Republicans Hedge Bets on Capital Gains
The look on mayoral candidate Bruce Harrell’s face when KOMO TV’s Jonathan Choe asked how he felt about Black-on-Asian crime, given that “you’re biracial, your mother is Japanese American and your dad’s Black”

1. After months of will-he-won’t-he speculation, three-term former city council member Bruce Harrell announced Tuesday that he’s running for mayor. As a well-known political figure who will likely have support from the Seattle business community, Harrell joins the ranks of instant frontrunners in the race, which also includes current city council president Lorena González, Chief Seattle Club director Colleen Echohawk, South East Effective Development director Lance Randall, and city council aide Andrew Grant Houston.

At a press conference outside Garfield High School, his alma mater, Harrell said he would seek public-private partnerships to fund investments in solutions to homelessness, clean up city parks where unsheltered people have taken long-term refuge during the pandemic, and work to “reimagine” the city’s police force rather than defunding it.

In a conversation with Fizz after the announcement, Harrell said the biggest problem at city hall, Harrell said, is a “lack of relationships”—between the mayor and council, the council and departments, and with outside organizations like Seattle Public Schools.

True to his past campaigns (in addition to serving three terms on the council, Harrell ran for mayor in 2013, receiving 15 percent of the primary vote), Harrell focused on style, more than policy, in our conversation. “Quite honestly, I am attracted to a situation that requires rebuilding,” Harrell said. “It’s sort of easy to hop into a leadership position when an organization is going smoothly and is high-performing. It’s a different skill set for someone to consciously jump into a situation that is plagued with dysfunction, and that doesn’t bother me.”

But he did have a few specific policy prescriptions. He said he would work to revitalize neighborhoods including, but not limited to, downtown, by promoting not just brick and mortar businesses but partnerships between small businesses (particularly women- and minority-owned) and larger ones—a kind of “business-to-business on steroids” approach to saving local businesses. “The first thing we must learn how to do is recycle our money within the economy by making sure the relationship between small businesses and big business is intact,” Harrell said.

He also said he would propose divvying up $10 million between the seven council districts so that the council member from each geographic area could determine, through conversations in that community, what local priorities should be funded. Asked how this would differ from the ongoing participatory budgeting process, which is supposed to determine how the city will spend $30 million set aside for alternatives to policing last year, Harrell said, “I think participatory budgeting is a step in the right direction, but what it still doesn’t do, I think, is have each council member directly accountable to their particular constituents in their community.”

Harrell, who grew up in the Central District and often talks about his deep roots in Seattle, provided more details about his platform in an “open letter” Tuesday morning.

2. Another former city council member, Tim Burgess, is preparing to propose a ballot measure that would change Seattle’s constitution (known as the city charter) by directing the city’s Human Services Department to fund mental health and substance abuse disorder treatment, expand access to shelter, and “collaboratively work with other City departments to ensure that City parks, playgrounds, sports fields, public spaces and sidewalks and streets (“public spaces”) remain open and clear of unauthorized encampments.”

The proposal would mandate (but not fund) new shelter and services and reinstate sweeps, including the removal of encampments that pose a “public health or safety risk,” a term that is not defined and would be subject to interpretation.

The proposal does not appear to include a funding plan.

The charter amendment would require HSD to create a plan to provide services to people living unsheltered (along with individual written “service plans” for every person living unsheltered in the city) and would “require the cleaning and removal of unauthorized encampments in public spaces as these services are available.” In addition, any encampment that poses “a public health or safety risk may be immediately removed,” the proposed amendment says.

In plain language, the proposal would mandate (but not fund) new shelter and services and reinstate sweeps, including the removal of encampments that pose a “public health or safety risk,” a term that is not defined and would be subject to interpretation.

It also directs HSD to work with prosecutors, police, and public defenders to create new “diversion” programs for people who commit non-violent offenses; these programs would include unspecificed “treatment programs as an alternative to incarceration.”

Burgess did not respond to a request for comment.

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To place a charter amendment on the ballot, proponents must get signatures from as many registered voters as 15 percent of the turnout in the most recent mayoral election, or about 33,000 people. After that, the city council can choose to enact the amendment, put it on the ballot, or add their own alternative to the mix. This last scenario played out in 2014, when the council proposed an alternative to a preschool initiative that opponents said gave too much power to unions. The council’s winning alternative was sponsored by Tim Burgess.

3. Despite claiming the Democrats’ capital gains tax legislation (SB-5096) would put an unconstitutional law in place, Republicans are worried that if it passes, taking the law to the Supreme Court will backfire and open the door for an income tax.

Luckily for the Republicans, moderate Democratic Senator Steve Hobbs (D-44, Lake Stevens) added an amendment to the capital gains tax during  the Senate vote that stripped the bill of its emergency clause and took out language saying that the revenue from the legislation is tied to government functions. Legislation with an emergency clause, or legislation that includes language saying it’s necessary to support the functioning of state government, can’t be overturned by voter referendum. The removal of both sections clearly signals that opponents prefer to leave the bill open to a statewide referendum, rather than battling over its legality in court. Continue reading “Ballot Measure Would Reinstate Sweeps, Harrell Joins Mayor’s Race, and Republicans Hedge Bets on Capital Gains” →

Arts, Economy, land use, Maybe Metropolis, neighborhoods

Maybe Metropolis: Seven Must Dos for Seattle’s Recovery

Public right-of-way isn’t just for cars anymore.

by Josh Feit

In a recent opinion column for the Seattle Times, Seattle Metro Chamber of Commerce President and CEO Rachel Smith and Downtown Seattle Association President and CEO Jon Scholes published “7 ‘must dos’ for downtown Seattle’s recovery,” a prescription for renewing downtown after the pandemic. Their list is premised on the idea that, “Every great city has a great downtown. Downtowns are the heartbeat of a region.” In other words, downtowns make the city go.

I like a lit-up downtown as much as anyone, but their column represents pre-pandemic thinking. The focus on “saving downtown” that’s emerging right now (most recently as a nascent local campaign issue) is a revamped version of a bygone Seattle policy agenda dressed up as urbanism; while it appears to be about bright lights and big cities, following this fussy narrative will simply drag us right back to where we’ve always been stuck: In a mindset that promotes suburban seclusion within the city itself.

There are certainly some important ideas on Smith and Scholes’ list, especially their calls for a robust transit system and for keeping shovels in motion on major infrastructure projects (which repeats the mass transit shoutout). Additionally, two of their seven agenda items, which I see as intertwined—activating public space and making it easier for entrepreneurs to set up shop—are also smart.

But these concepts are more urgent and relevant in the rest of the city; promoting them as downtown ideas runs the risk of reiterating and re-instituting a false dichotomy that has set Seattle off course for decades: The old-fashioned idea that downtown, not the rest of the city, is the only place for growth and energy.

The post-pandemic focus for making Seattle vital again should be on harnessing the new neighborhood energy—not sending it back downtown.

What we’ve actually learned during the past year not spending much time downtown is this: neighborhoods are the magic quadrants of cities. I don’t mean this in the trite, anti-downtown tribalist way of the old neighborhood movement, which saw every public-private partnership as some elitist conspiracy to crush the Wedgwood Community Council and rob the city of its authenticity. What I mean—as I’ve documented before—is that the past year has energized business districts outside the city center and alerted us to a new Seattle model. The post-pandemic focus for making Seattle vital again should be on harnessing the new neighborhood energy—not sending it back downtown.

Our past strategy of channeling city action to core neighborhoods such as downtown and Capitol Hill has prevented density in other sectors of the city, which has led to a housing shortage, and thus untenable housing prices. It also makes for dull neighborhoods.

The good news is: There are signs we’re moving in a new direction. Talk of sticking with outdoor street dining is already afoot. And just look at one of the key items on the DSA/Chamber list: “Completion of major infrastructure projects.” This item (unwittingly?) pinpoints where the real focus already is and should be.

Their first example? Light rail expansion. Well, light rail already exists downtown. The bulk of the expansion is coming to the non-downtown neighborhoods. Starting this year, that means the University District, Roosevelt, and Northgate. In 2023, that means Judkins Park (perhaps the most underrated and overlooked transformative capital project in the city!) After that, it means four stations from SoDo out to West Seattle and nine stations from the International District out to Ballard.

Continue reading “Maybe Metropolis: Seven Must Dos for Seattle’s Recovery” →

Arts, Business, City Council, Economy, Maybe Metropolis, Mayor Durkan, Transit, Urbanism

Maybe Metropolis: Night Vision

by Josh Feit

Mayor Jenny Durkan’s proposed 2021 budget eliminated a position that the city’s cultural community believes is essential, particularly as the COVID-19 crisis is strangling city nightlife: The Nightlife Business Advocate, also known as the Night Mayor. Fortunately, city council member Andrew Lewis took quick action to restore the position last month, getting four more council members—a majority—to sign on as cosponsors to his budget amendment.

The $155,000 save is on track to be part of  next week’s budget deal. I point out Lewis’ pivotal role because he’s the youngest council member (he just turned 31 this week), and still values nightlife as an attribute of city life. “It’s always bothered me that nightlife is seen as something that needs to be managed,” Lewis told me. “I think it’s something that needs to be cultivated.”

That’s essentially what the position, a formal liaison between nightlife businesses and city regulators, was created to do: Nightlife Advocate Scott Plusquellec helps music venues navigate the city’s complex licensing and permitting bureaucracy as well as helping with state regulators such as the Washington State Liquor and Cannabis Board. (Plusquellec was a legislative staffer in Olympia before coming to work at the city.)

The position was created in 2015 and housed in the Office of Economic Development’s Office of Film + Music under the office’s then-director Kate Becker. A veteran of Seattle’s music scene (and its storied battles against things like the Teen Dance Ordinance), Becker was both a founding member of all-ages venue the Vera Project and the Seattle Music Commission. When Becker left in early 2019 to take a job with King County Executive Dow Constantine as the County’s first Creative Economy Strategist, Plusquellec lost his high-level ally.

Becker was never replaced. After Becker left, Plusquellec reportedly had to write up a memo explaining his position to Mayor Durkan’s new OED director Bobby Lee, who started heading up the department in the summer of 2019. Judging from the mayor’s proposed cut, the new regime was not convinced.

Continue reading “Maybe Metropolis: Night Vision” →

City Council, Economy, Equity, homelessness, housing, human services, Mayor Durkan

Compromise City Budget Avoids Major Cuts, Including to Police Department

By Erica C. Barnett

The cessation of open warfare between Mayor Jenny Durkan and the city council over the 2021 budget doesn’t make for the most dramatic headlines (see above), but the detente between the two feuding branches could mean a budget compromise that won’t end in another spate of open warfare.

The council’s budget proposal makes dramatic cuts to Durkan’s proposal to designate $100 million in funding “for BIPOC communities,” fulfills the city’s 2019 promise to invest proceeds from the the sale of publicly owned land in South Lake Union into housing and anti-displacement programs, and cuts the size of the police department by about 20 percent, with a commitment to spend the savings from those reductions on community safety projects through a participatory budgeting process, which the budget also funds.

On Monday, Durkan issued a statement praising the council’s budget for “continuing that historic $100 million for communities through slightly different community-led processes.” This was a departure from Durkan’s previous position on the council’s spending priorities. Last month, a mayoral spokeswoman responded to questions about the racial equity implications of Durkan’s $100 million plan by suggesting that the council’s own spending proposals, including plans for COVID relief, participatory budgeting, and police department cuts, had not gone through a proper vetting to see if they truly benefited Black, Indigenous, and People of Color communities.

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During a press conference on Tuesday, I asked about this seeming contradiction. Durkan responded that while she hasn’t read all of the council’s budget amendments, “my read on it is that they are also committing $100 million to community investments, and I am really heartened that they have followed my lead to do so.” Durkan said she was “disappointed” that the council wasn’t spending even more on BIPOC added, given a new revenue forecast that adds more than $32 million to the 2021 budget.

“I’m very hopeful that when we come out of this, and when there’s a final budget, that we actually have a path forward that makes real on the commitment that we will invest generational investments in the city of Seattle” over the next 10 years, she said.

The council’s proposal is still a recessionary budget. Instead of massive spending increases, it reprioritizes limited dollars, in ways that advocates for sweeping, immediate change may find frustrating. But it also puts significant leverage in the hands of the community groups leading the process of participatory budgeting, and promises significant funding for that process.

“They are also committing $100 million to community investments, and I am really heartened that they have followed my lead to do so.” — Mayor Jenny Durkan, referring to the city council

In reporting on the council’s previous budget discussions, I’ve talked about many individual, one-off budget changes council members are proposing—from an analysis of “transportation impact fees” levied on new housing to funding for energy efficiency audits to the restoration of the city’s nightlife advisor position. This post will look at a few high-takes, big-ticket spending areas, including investment in community-led alternatives to police,

Major cuts to the mayor’s Equitable Communities Initiative

As I mentioned, the council’s budget chops $70 million from the mayor’s $100 million fund to pay for future investments in BIPOC communities. That money would be redistributed as follows:

• Durkan’s budget “abandoned”—and yes, that’s the technical term—$30 million that she promised last year for affordable housing and efforts to prevent displacement in gentrifying areas. The money came from the sale of the Mercer Megablock project, and was key to getting anti-displacement groups like Puget Sound Sage not to protest the sale. The council’s budget restores this money to its original purpose.

• The Human Services Department would get $10 million to distribute to community organizations “to increase public safety through technical support, capacity building, and expansion of capacity.” The council allocated this money in 2020, but the city didn’t spend it, and Durkan zeroed it out in her proposed budget.

• Another $18 million would go toward the participatory budgeting project that the council began funding in 2020, which I’ll discuss separately in a minute.

• The remaining $12 million or so would replenish the city’s emergency reserve fund, which Durkan’s budget almost zeroed out (see graph above); restore funding for a restorative pilot program in schools; and restore funding for community-based alternatives to policing, among other smaller-ticket items.

As for the $30 million that remains out of the mayor’s initial $100 million: That money would still get allocated, through a process that would still include the mayor-appointed Equitable Communities task force, but only after the city council approves the spending plan.

Participatory budgeting

A total of $30 million, including the aforementioned $18 million, would fund community safety projects chosen through a participatory budgeting process; these projects would replace some functions (such as responding to crisis calls) that are currently performed by SPD. Continue reading “Compromise City Budget Avoids Major Cuts, Including to Police Department” →

City Council, Economy, King County, Mayor Durkan, Morning Fizz, Transit, Transportation

Morning Fizz: Some Good Budget News, a Durkan Departure, and Putting Fare Evasion in Context

1. Last month, Sound Transit CEO Peter Rogoff scoffed at the suggestion that the regional transit agency should stop sending riders to court over unpaid fines for fare evasion, arguing that efforts by King County Metro to offer alternative dispute resolution options have been a failure. “Within King County, some 90 percent of [alternative resolution participants] never show up for their appointment and then nothing becomes of those cases, which is to say that there is no consequence for persistent violators in that circumstance,” Rogoff said.

Rogoff’s number is correct—of the 4,039 fare violations Metro recorded in 2019, 403 were resolved (meaning that the person either paid a fine directly to Metro, added money to their ORCA card in lieu of a fine, or used another alternative resolution route), according to Metro’s latest fare violation report, issued last April. However, that statement is missing some important context about the mission and purpose of transit. And it ignores the fact that a 10 percent resolution rate actually represents a significant improvement over the previous resolution rate of just 3 percent under the previous, punitive system, in which all unpaid fines went to court and collections.

Fare enforcement has been a contentious issue for Sound Transit, where failure to provide proof of payment to fare inspection officers can result in a $124 fine plus late fees, damage to credit, and even misdemeanor charges if a rider fails to pay their fine. The agency has agreed to make some changes to its policies, including new uniforms, clearer signage, additional warnings, and lower fines.

But they have resisted adopting alternative resolution options for people who can’t pay, arguing that this concession would reduce revenues as people realized there was no real penalty for nonpayment, raising costs to taxpayers and potentially impacting future capital projects or service. (For perspective, fare evasion cost Sound Transit, on net, around $550,000 last year.)

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This ad-free website is supported ENTIRELY by generous contributions from readers. At a time when real local news is more threatened than ever by declining revenues and the growing spread of misinformation, PublICola is a trusted source of breaking news, commentary, and deep dives on issues that matter.

If you enjoy the work we do here at PubliCola, please help us KEEP IT GOING by donating a few bucks a month or making a one-time donation via PayPal, Venmo (Erica-Barnett-7) or by check at P.O. Box 14328, Seattle, WA 98104. We’re truly grateful for your support.

The debate over fare evasion is really about the purpose of transit and the mission of transit agencies.

Metro spokesman Jeff Switzer says the agency’s fare enforcement policy isn’t primarily about fare revenue at all. In taking fare enforcement out of the court system and offering alternatives to fines, “Our goal was to decriminalize fare evasion and work to get fare resources into riders’ hands,” while “reducing and minimizing harm to people and not involving law enforcement,” he said. This goal is reflected in Metro’s fare enforcement mission statement: “to help minimize King County Metro Fare Enforcement Program’s contribution to negative outcomes for some of King County Metro’s most vulnerable riders.”

“Our goal was to decriminalize fare evasion and work to get fare resources into riders’ hands,” while “reducing and minimizing harm to people and not involving law enforcement.” — Metro spokesman Jeff Switzer

But even Sound Transit’s more conventional fare enforcement mission—”to understand the impacts of our current program and develop recommendations that provide an equitable and customer-focused experience, including safety for all riders and integrity of decision making, while ensuring strong financial stewardship of taxpayer dollars—is still compatible with adopting a more lenient fare enforcement policy. That’s because in reality, few riders on either system actually fail to pay their fare.

Historically, Metro has set a fare evasion target of no more than 5 percent; in 2019, actual fare evasion on routes where Metro deploys fare enforcement officers averaged 4 percent, down from 5 percent the previous year. If the argument for sending people to court for failure to pay a $3 fare rests on the argument that not doing so will lead to rampant fare evasion, Metro’s example is showing that, so far at least, this worst-case scenario has not come to pass.

2. The city council and Mayor Jenny Durkan got some good budget news for once on Monday, when the city budget office issued a new revenue forecast for 2020 and 2021 that adds $36 million to the city’s general fund in 2020 and $32.5 million in 2021. The CBO attributed the new, higher projections to increased sales and business and occupation (B&O) taxes between July and September, “driven by significant improvement in the national and regional economic forecasts, particularly employment, personal income and personal outlays.” Continue reading “Morning Fizz: Some Good Budget News, a Durkan Departure, and Putting Fare Evasion in Context” →

Affordability, Business, City Hall, Economy, Mayor Durkan, State of Washington

Guest Editorial: Seattle’s Restaurants Can’t Wait for COVID Relief
Photo by Belinda Fewings on Unsplash

By Debra Russell and Jessica Tousignant

The lockdown was a necessary step in the fight against the coronavirus pandemic, but we couldn’t predict what it would mean for businesses. Restaurant owners didn’t know what to expect.

We were so grateful when Seattleites stepped up and supported us by ordering food for takeout. You were patient and generous as we built an entirely new business model. It was a bumpy transition, but you reminded us that we’re all in this together. Even now, your takeout orders are keeping many of us afloat.

But we can’t forget that our members who are hanging on are the lucky ones. One of the most frustrating aspects of the current economic downturn is that we don’t have enough data to understand exactly how bad things really are. It’s unclear how many neighborhood businesses have closed permanently since March.

The clearest overview of the economic impact on businesses nationwide arrived in a recent report from Yelp, which showed that of all the businesses that closed since March , about 61 percent have now closed permanently. That’s 97,966 businesses wiped out nationwide. Due to the customer-driven nature of Yelp’s reporting, this almost certainly represents an undercount—and in Washington, the numbers are likely even worse.

When ordinary people don’t have enough money to spend at local businesses, those businesses don’t make enough money to stay open.

The Yelp data confirms what we have suspected to be true: We’ve already lost half the businesses that had to temporarily close for lockdown, and the rest are imperiled. A majority of Seattle’s neighborhood restaurants will likely close by the end of the year.

Let’s be clear: this isn’t on our customers. They’ve done more than their part to keep us afloat. But the people and organizations who are supposed to use their resources and visibility to stand up for and protect small business have been entirely absent.

Local leaders claimed we should wait for the federal government to lead the way in the economic response to the pandemic. But the US Senate adjourned for vacation until September 8 without any agreement on a new stimulus plan. Since the additional $600-per-week unemployment benefits written into the last stimulus package were allowed to expire, some of our members report business has dropped by as much as 25 percent. When ordinary people don’t have enough money to spend at local businesses, those businesses don’t make enough money to stay open.

For years, powerful business interests like chambers of commerce, the Washington Hospitality Association, and others have used small businesses as a political football. Today, small businesses are shuttering around Seattle, people are losing their jobs, and these same organizations have quietly looked the other way.

The federal government told states and cities that they’re on their own, and local leaders have failed to step up to fill the void. Mayor Jenny Durkan, for instance, vetoed the expenditure of emergency funds—as though this economic collapse isn’t the biggest emergency most Seattleites have ever seen. (The city council subsequently overturned that veto, but Durkan’s budget would reallocate the money for other purposes.)

Continue reading “Guest Editorial: Seattle’s Restaurants Can’t Wait for COVID Relief” →