Category: Equity

House Passes Capital Gains Tax with Rep. Frame’s Key Amendment

by Leo Brine

After a month of deliberations, the House finally passed capital gains tax legislation (SB 5096), including a pivotal amendment proposed by Finance Committee Chair Rep. Noel Frame (D-36, Seattle) that restored protections against a referendum—a public vote to invalidate a bill before it takes effect. Senators removed those provisions when they voted on the original bill in March. The bill now includes two sections that protect it from voter referendum; however, it no longer contains an emergency clause that would have caused the bill to go into effect right away.

Republicans say the capital gains tax is unconstitutional and want to make sure it stays vulnerable to a referendum, which is their safest option for defeating the tax. But the new language puts their hopes in jeopardy. Republicans proposed 19 amendments attempting to remove the protections, dragging the debate from Tuesday evening to Wednesday afternoon.

Even with the protections against referendum in the bill, the tax could still be vulnerable to a voter initiative—which Frame noted are a far more common way to challenge tax policy than referenda. An initiative is a way to repeal legislation, whereas a referendum cancels the legislation before it becomes law. For someone to propose an initiative, they would need to gather a number of signatures equal to 8 percent of the votes cast in the last gubernatorial election. That’s about 324,516 signatures. A referendum only requires half that number.

The capital gains tax imposes a 7 percent tax on financial gains from intangible financial assets, such as stocks and bonds, above $250,000. Frame said the bill will fix Washington’s upside-down tax code by making wealthy residents pay their fair share. Roughly 7,000 Washington taxpayers would pay the tax beginning in 2023.

Frame’s revised version of the bill says the tax “is necessary for the support of the state government and its existing institutions.” Under Article 2 of the state Constitution, this language protects the bill from a voter referendum.

House Finance Committee chair Rep. Frame’s revised version of the bill says the tax “is necessary for the support of the state government and its existing institutions.”

Frame said she added the section clarifying the necessity of the tax because “this is an important function of government that needs to be paid for. I think we’re pointing out that’s what we believe this is.”

When the House was debating the bill Tuesday night, Republicans proposed multiple amendments to remove the protective language. Some amendments they proposed struck the “necessary” section altogether. Others added new sections specifying there was no emergency clause in the bill. Rep. Ed Orcutt (R-20, Kalama) even proposed an amendment that would required the Secretary of State to place a referendum on the bill on the next state general election ballot. All of the amendments failed, but it was clear from the final tallies that some Democrats voted for them.

Frame also added a second, subtler protection against referendum to the bill. The revised bill would direct tax revenue into the Education Legacy Trust Account (ELTA) which helps fund public schools and childcare services in the state. Because the State uses the account to fulfill its obligation to fund public schools, the tax would be necessary to support government and its existing institutions, Frame said.

Frame defended the language in her revised bill, saying during the debate Tuesday night, “we have a paramount duty to invest in K-12 education and early learning and childcare, and this capital gains excise tax is intended to pay for that. That’s it.” Frame said the judiciary branch should determine whether or not there is an emergency clause in the bill, not the legislature.

“It’s not the language that matters, it’s where we’re making our investments—that’s what matters,” Frame said after the House passed her revised bill. “We believe the investments made in this bill are for the ongoing function of government. That’s what the lawyers will look at.”

Republicans tried passing amendments to direct the funds into accounts that do not support state institutions, but their efforts failed.

The House passed Frame’s bill 53-45 and sent it to the Senate.

Senate Majority Leader, Andy Billig (D-2, Spokane) said Wednesday that Senate Democrats would caucus to see if they had the votes to pass the House’s updated bill without making any changes. Otherwise, senators could propose amendments to strip the bill of its protective language. Senators from both sides of the aisle voted for Sen. Steve Hobbs’ (D-44, Everett) original amendment that got rid of the original bill’s emergency clause.

If the Senate passes the bill with the protective language intact, Republicans options to block the bill would be narrowed to filing a lawsuit or hoping for a voter initiative. Senate Republican Leader, John Braun (R-20, Centralia) said during a press conference on Wednesday, senate republicans will work to get rid of the protective. language in the bill. “The idea of limiting people’s right to a referendum is wrong,” Braun said.

Transit Advocates Push for Bigger Multimodal Investment from State

by Leo Brine

Transit advocates tolerated the House and Senate’s transportation committees’ underwhelming 2021-23 biennium budget announcement last month believing that legislators were cueing up a more multimodal approach in the pending transportation package. (The previous budget announcement was about funding earlier commitments made by previous legislative sessions.) However, the House Transportation committee unveiled an all-new 16-year transportation package (HB 1564) on Thursday that, once again, provides large sums of funding for highway expansion projects and road and highway maintenance while shortchanging transit.

Troubled by how few dollars the House allocated for multimodal and green initiatives when compared to the highway-related initiatives, advocates are now hoping for big changes before Democrats move the package to Governor Inslee’s desk.

The new transportation package, dubbed “Miles Ahead Washington,” allocates a total of $22.3 billion to funding transportation initiatives. Seventy percent of the funds ($15.7 billion) go to “highway-related initiatives,” including $6.1 billion for highway expansion projects and $4.6 billion for maintenance and repairs over the next 16 years. Meanwhile, the House allocates about 25 percent of the package, $5.5 billion, to multimodal projects, including investments in multimodal transport, bicycle and pedestrian improvements, safe routes to schools, and rural mobility transit grants.

Mobility rights activists say the new proposal is too similar to past transportation packages, with similar funding shortfalls. “We can’t support it because there’s not enough investment in transit service and in sidewalks and other kinds of pedestrian access,” Anna Zivarts, director of the Disability Mobility Initiative Program at Disability Rights Washington (DRW) said. “It makes it hard to get excited about something that we see as just so far from the unmet needs.”

Continue reading “Transit Advocates Push for Bigger Multimodal Investment from State”

Olympia Fizz: House Committee Passes Wealth Tax, House and Senate Take Action on Tenant Rights and Funding

1. After nearly two months of inaction, the House Finance committee passed the progressive wealth tax (HB 1406) out of committee Wednesday morning. The bill made it out of committee with no amendments, despite Republican efforts.

The wealth tax is arguably the most progressive piece of tax reform legislation this session; the House is taking the lead, while the Senate took the lead on the capital gains tax.

The wealth tax legislation would require anyone with more than $1 billion in intangible financial assets, such as stocks, bonds, or cash, to pay a one percent tax on their worldwide cumulative wealth. The Department of Revenue estimates the tax will affect 100 Washington state taxpayers and generate $5 billion per biennium.

Finance committee chair Rep. Noel Frame (D-36, Seattle) urged her colleagues to vote yes on the bill so the state could begin rebalancing Washington’s tax system, which, according to the progressive Institute on Taxation and Economic Policy, forces the lowest income Washingtonians to spend 18 percent of their income on taxes while the very wealthiest spend just 3 percent of their income on taxes.

“The Washington state wealth tax would take a giant step forward in trying to right that wrong by asking the wealthiest Washingtonians, including some of the wealthiest people in the world, to pay their fair share,” Rep. Frame said.

Members of the finance committee passed the bill 9-7 with Democratic senators April Berg (D-44, Mill Creek) and Larry Springer (D-45, Kirkland) along with all Republican committee members, voting no. PubliCola has reached out to both Berg and Springer for comment.

Patinkin Research Strategies found that 58 percent of Washingtonians support the tax and just 32 percent are opposed. (The pollster gets a B/C rating from 538.)

According to Frame, the legislature will direct revenue from the wealth tax into a dedicated Tax Justice and Equity fund, rather than into the state’s general fund as the bill originally specified. Legislators will use the Tax Justice and Equity fund to support an anti-displacement property tax exemption (HB 1494) that the finance committee also passed Wednesday.

The finance committee passed the wealth tax in their last regularly scheduled meeting of the session. April 2 will be the last day for finance bills to be read into the record on the house floor, leaving little time for the bill to be deliberated on in the Rules committee, which will take up the bill next. If Rules passes it out, the bill will go to the House floor where progressives hope to send it to the Senate.

2. The Legislature’s latest biennial budget proposals made two traditional foes, tenants and landlords, happy—with some footnotes.

In budgets released this week, legislators from the House and Senate allocated roughly $1 billion to new rental assistance and eviction protection programs. (The House allocates $1 billion, the Senate $850 million). The state will use the money to pay off rent debt accrued by tenants during the statewide eviction moratorium and fund legal counsel in eviction cases.

Continue reading “Olympia Fizz: House Committee Passes Wealth Tax, House and Senate Take Action on Tenant Rights and Funding”

State Transportation Budgets Reflect Bygone Era

 

by Leo Brine

The House and Senate Transportation committees unveiled their transportation budgets (HB 1135, SB 5165) for the 2021-23 biennium Tuesday. Or, more accurately, they unveiled the state’s incorrigible commitment to highway and road expansion. Climate and transit activists hope this is the last budget of a bygone era. While they are unsurprised that the two budgets continue prioritizing road expansions, advocates say the transportation revenue packages expected next week must move away from putting more cement on the ground and move the state’s transportation infrastructure toward sustainability, equity, and climate action.

Tuesday’s Senate and House transportation budgets will each follow the typical process: committee votes, floor votes, and then switching houses. Legislators from both houses will then decide which bill moves forward and will hammer out details in a conference committee.

The Senate’s proposed transportation budget allocates $11.7 billion for various transportation projects and the House allocates $10.7 billion. Both direct money to projects—mostly highway expansions—that were a part of 2015’s transportation package, Connecting Washington.

Funding allocated to construction projects dwarfs funding for expansion of public transit access and green initiatives. For example, the House proposal allocates $453 million to widen I-405 between Renton and Bellevue and more than half a billion to the Puget Sound Gateway project, a massive highway expansion and extension megaproject in Pierce County.

The Senate bill would cut $260 million from the multimodal transportation account to fund Connect Washington and ferry maintenance. The House’s cut to the multimodal account is not as dramatic as the Senate’s—just $50 million, to fund ferry maintenance.

“I think the bigger story is that this budget represents big decisions made in the past. As the legislature continues debating the next transportation package, we need to make sure that it’s oriented toward a sustainable and equitable future.”—Kelsey Mesher, advocacy director, Transportation Choices Coalition

“I think the bigger story is that this budget represents big decisions made in the past,” said Kelsey Mesher, advocacy director at the Transportation Choices Coalition. “As the legislature continues debating the next transportation package, we need to make sure that it’s oriented toward a sustainable and equitable future. And that will look really different, and that will focus on transit, access to transit, maintaining the system we already have, and mitigating harm.”

During the public hearing on the Senate transportation budget, Senate Transportation Chair Steve Hobbs (D-44, Issaquah) groused: “It wasn’t easy last year. Last year sucked, too. This year double sucked.” Hobbs said the priorities of the Transportation committee are “keeping the lights on” by maintaining roads and bridges, keeping ferries and buses operating and finishing Connecting Washington projects.

The transportation budgets are supported by the state’s gas tax, as well as state bonds and, this year, aid from federal pandemic relief funds, the American Rescue Plan Act. Washington’s gas consumption dropped during the pandemic and with it went a good chunk of revenue for the transportation budget. State projections show revenue for the 2019-21 biennium declining by $669 million, roughly 10 percent, and another $454 million in the 2021-23 biennium, about 6.5 percent. Over the next 10 years, transportation revenue is expected to decline by $1.9 billion. The state estimates it will be 10 years before gas consumption rates are back to their pre-pandemic levels.

Anna Zivarts, the director of disability and mobility initiatives at Disability Rights Washington, said the gas tax that props up the transportation budget is regressive. “We all know that the gas tax is at some point going to be an obsolete revenue stream,” she said. “The folks who can afford electric vehicles and not [have to] pay the gas tax are wealthier. And with the cost of living in a lot of communities being high, the people who have to commute further are lower-income” and are spending more on gas, thus contributing more to the system. Zivarts said while the tax is regressive, the state should use gas tax revenues to make the state’s transit infrastructure more equitable and environmentally sustainable.

Continue reading “State Transportation Budgets Reflect Bygone Era”

Democrats in Olympia Pursue Sweeping Agenda to Reverse Regressive Tax Structure

On the docket this year: A carbon tax, plus a wealth tax, changes to the estate tax, and a sweetened beverage tax.

by Leo Brine

Progressive legislators have been unleashing a slew of tax legislation this session, with bills like the capital gains tax (SB 5096) and the working families tax exemption (HB 1297) grabbing headlines after historic floor votes on both earlier month.

And they have more cued up. Legislators typically pass tax and revenue bills late in the session as a means of funding the budget, but this year Democrats have a much bigger agenda: They want to pass tax legislation that reforms how the budget is actually funded. They plan to create new taxes on carbon-dioxide emissions, extreme wealth, data collection, and more this year.

Ingeniously flipping the script on Republicans who say that sudden rosy revenue forecasts prove our tax system doesn’t need reform, progressives say the latest revenue forecast actually highlights the volatility of Washington’s current tax structure. In June, the state forecast a nearly $9 billion revenue shortfall. However, a sequence of higher forecasts based on an uptick in retail sales tax revenue between September and March nearly re-balanced the budget.

Ingeniously flipping the script on Republicans who say sudden rosy revenue forecasts prove our tax system doesn’t need reform, progressives say the budget turnaround is being funded on the backs of low-income residents who pay a disproportionate amount of their incomes in regressive sales taxes.

Seizing on the volatility argument, and noting that the turnaround is being funded largely on the backs of low-income residents who pay a disproportionate amount of their incomes in regressive sales taxes, Democrats are pushing a sweeping tax reform agenda.

At the March 17 revenue forecast meeting, House Appropriations Committee chair Rep. Timm Ormsby (D-3, Spokane) said the revenue increase was not a reason to change course on new progressive tax legislation. “I think we have to be quite concerned about ongoing stability of our revenue system. I think that today’s forecast and other economic news will affect our discussion, but I don’t see a wholesale change in discussion [around tax legislation] in the legislature,” he said.

Wealth Tax

One of the most daring pieces of progressive legislation is the wealth tax bill (HB 1406). Sponsored by House Finance Committee chair Rep. Noel Frame (D-36, Seattle), the bill proposes a 1 percent tax on worldwide “intangible financial assets of more than $1 billion.” Intangible assets include cash, stocks, bonds, pension funds and ownership in revenue-generating partnerships such as businesses. (In contrast, tangible and intangible personal property includes things like as homes, farm equipment and federal and state bonds.) The bill is currently in the house finance committee, where it is awaiting an executive session.

The Department of Revenue estimates the tax will generate an additional $2.5 billion in annual revenue for the state.

Rep. Frame surmises Bezos is already claiming residency in a different state.

One of the main critiques of the bill, along with other bills aimed at taxing the rich, is that people like Jeff Bezos or Bill Gates  could just leave the state and live elsewhere. Rep. Frame said she is not worried about this. Frame told GeekWire in February that based on the DOR revenue predictions, she believes Bezos is already claiming residency in a different state. As for Gates, whose father campaigned for an income tax a decade ago, Frame believes he is too invested in his home state to leave.

Carbon Tax

The legislature is working on several environmental bills this session, including two bills aimed at curbing carbon emissions and greenhouse gases. The Senate Ways and Means committee currently has SB 5126 scheduled for executive committee hearings, while SB 5373 remains in the Environment, Energy & Technology committee waiting for an executive session.

Continue reading “Democrats in Olympia Pursue Sweeping Agenda to Reverse Regressive Tax Structure”

Democrats in Olympia Pass Progressive Tax Credit for Low-Income Residents

Rep. My-Linh Thai (D-41, Bellevue), sponsor of Working Families Tax Exemption bill. Image via House Democrats.

by Leo Brine

Democrats continue to advance a slew of progressive bills this legislative session aimed, they say, at making Washington more equitable. While last week’s headlines dramatized the news that Senate Democrats passed a capital gains tax, a longstanding progressive agenda item,  House Democrats were busy ushering through a major lefty item as well, the Working Families Tax Exemption bill (WFTE). Like the capital gains tax, the WFTE legislation would alleviate the pressure the state’s regressive tax system puts on low-income Washingtonians. In this instance: by giving roughly 500,000 of Washington’s lowest-income residents a tax rebate ranging from $500 to $950.

Both bills are longstanding items on the progressive wish list. The WFTE has existed as a state-level benefit program since 2008, but it was never funded because of the recession that hit late that year. The successful House vote this past Tuesday, March 9,  backed the bill for the first time with dollars from the general fund. That money will be allocated when the house rolls out its budget later this month. The Department of Revenue estimates the program will cost roughly $18 million to administer during the 2021-2023 biennium and pay out $250 million to about 420,000 residents, according to a fiscal note from the Department of Revenue.

“There’s been a large effort from the community to show lawmakers how regressive our tax system is,” said Andy Nicholas, senior fellow at the Washington State Budget and Policy Center. Nicholas says awareness of how regressive Washington’s tax system is has grown over time and now politicians understand the effects of regressive taxes on many of Washington’s underserved communities.

Thai was elected to represent the 41 district in 2018 and became the first refugee in Washington’s history to serve in the house of representatives.

Rep. My-Linh Thai (D-41, Bellevue), the sponsor of the WFTE legislation, represents a former Republican stronghold that gradually shifted to swing turf in the 2000s, before eventually turning blue in the late 2010s.

Bellevue’s population continues to grow more diverse. According to the 2000 U.S. census, Bellevue was a largely white community: 74 percent of the city’s residents were white, with Asian Americans, the second-largest group, making up 17 percent of the population. As of 2018, however, Bellevue is 35 percent Asian Americans and white residents make up 49 percent of the population. Bellevue also has a large immigrant population, with 38 percent of the city’s residents being foreign-born.

Continue reading “Democrats in Olympia Pass Progressive Tax Credit for Low-Income Residents”

Guest Post: The Gas Tax is Regressive and Racist. Let’s End It.

Photo by Alexander Grishin via Pixabay.

By Anna Zivarts and Paulo Nunes-Ueno

Maybe we shouldn’t raise the gas tax. In fact, maybe it’s time to get rid of the gas tax altogether.

That might seem like a strange statement coming from advocates like us, who are firmly aligned with the pro-transit, pro-climate justice, pro-investments-in-equity corner of the political landscape. But as we look at the proposed transportation packages in the legislature this session, we are starting to believe that only a truly transformational approach to funding transportation will allow us to address the harm caused by our current system.

What’s wrong with the gas tax? Well, first of all, it’s regressive. You pay the same amount no matter what you can afford, and if you’re wealthy, you’re likely to own a more fuel-efficient vehicle. In fact, these days, you’re likely to own an electric vehicle and pay no gas tax at all. On top of that, as cities become more expensive, you’re more likely to have a long commute if you’re poor.

And the gas tax is receding: Over the last 20 years, gas consumption has not kept pace with population growth. Sooner or
later, this isn’t going to be a reliable revenue stream.

The gas tax is also restricted to funding highways, thanks to the 18th Amendment to the Washington State Constitution, which was enacted eight decades ago in 1944. Every other type of transportation infrastructure, from light rail lines to local bus service, must come from “unrestricted” sources such as car tabs and other vehicle fees—sources of revenue that, thanks to Tim Eyman, have been under constant threat for a generation.

The gas tax restrictions are redlining on wheels, funneling investments away from BIPOC neighborhoods because of the restrictions in where revenue can be spent

Currently, less than 4 percent of our transportation spending goes toward non-highway projects. In fact, in the last three state transportation packages, these non-highway investments have received a decreasing percentage of the total funding.

Which leads us to why the gas tax is racist. You’ve heard of redlining rules that kept banks from giving mortgages in Black or brown neighborhoods. The gas tax restrictions are redlining on wheels, funneling investments away from BIPOC neighborhoods because of the restrictions in where revenue can be spent. Instead of investing in reliable transit service that would benefit BIPOC communities where people are more likely to be transit-reliant, highway expansion funded by the gas tax directly contributes to increased pollution and negative health outcomes in these same communities.

Over the previous year, Front and Centered and Disability Rights Washington have been conducting listening sessions and interviews with our community members across Washington state, resulting in a report and transportation storymap. We’ve heard so many stories from our communities about how our current transportation system is failing us.

For example, Amanda, from Cowlitz County, shared, “I feel like as a senior in high school I should be able to walk to school on a sidewalk. I have to walk on the road with just a guardrail. It’s scary. I don’t want to get hit by a car on my way to school. This is the reality for other people of color.”

We know that what we are suggesting is a departure from the current transportation consensus, but as we’ve seen throughout the last year, sometimes we need to start thinking about how we can fully dismantle systems that perpetuate inequities.

Currently, the Washington State Department of Transportation (WSDOT) estimates they have less than half of what they need to keep the current highway system in good repair because our elected leaders would rather use gas tax revenue to build new highways and overpasses. With so much unfunded mitigation and basic preservation need, it is inexcusable to expand the system further.

The cost of preserving our highway system must include the costs of mitigating the harm it creates. But even though it’s possible to spend gas tax revenue for this purpose, the legislature has yet to invest the $3.1 billion estimated needed to build fish culverts, so salmon can get past highways. They have not even begun to talk about funding the $5.7 billion that WSDOT estimates is needed to repair the gaps and barriers created in the pedestrian network by the state highways that cut through our communities. For decades, our legislators have underfunded the preservation work needed to keep our highway and bridges from crumbling. And, given the health impacts of dirty air caused by highways and roads, WSDOT should pair road maintenance with air quality monitoring. Continue reading “Guest Post: The Gas Tax is Regressive and Racist. Let’s End It.”

What’s Next for Participatory Budgeting in Seattle

The Priorities for City Investments Identified by the Black Brilliance Research Project

By Paul Kiefer

After six months and a trio of lengthy reports to the Seattle City Council, the Black Brilliance Research Project (BBRP) has come to an end. The two researchers who led the project, Shaun Glaze and LéTania Severe, appeared before the council last Friday for their final presentation, which gave a few glimpses at what lies ahead: An ambitious effort to put a city-wide participatory budgeting process into motion by August.

Participatory budgeting is a form of direct democracy in which residents generate city spending proposals. When the council first embraced the idea last fall, the idea was that it would go hand-in-hand with divestment from policing and reinvestment in community-based public safety. The preliminary research would create a working definition of “community safety” and a blueprint for the participatory budgeting process itself, and Seattle residents would get the opportunity to suggest public safety investments—things like emergency housing for domestic violence victims and youth mentorship programs—for which they could vote later in the budget cycle.

Last fall, the council allocated $30 million to pay for participatory budgeting and the winning project proposals themselves; if successful, it will be among the largest participatory budgeting projects in the United States.

But while the BBRP team has spent the past six months conducting surveys, interviews and focus groups on a set of high-level priorities that will “guide” participatory budgeting, Glaze and Severe told the council that most of the legwork needed to get the program up and running still lies ahead—as do some steps that the researchers initially planned to tackle over the past six months.

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By March 16, council staff and the research leads—with some input from the city budget office and mayoral staff—are supposed to have hammered out the details of a spending plan for the participatory budgeting process. The money for that process will come out of the $30 million, and the final BBRP report also suggested setting aside 20 percent of the available funds to cover unexpected expenses. Whatever remains once the process comes to an end will be available to fund winning project proposals.

The proposed overhead would be significant: In addition to paying for promotional materials, translation, and software development, the researchers’ final report also outlined a plan to pay as many as 37 staffers to collect and review project proposals and encourage residents to participate, among other tasks.

Those new staffers would include the seven members of the “steering committee,” which Glaze and Severe said will create the rules for participatory budgeting, as well as 25 full-time members of five “work groups” and up to five full- or part-time city employees.

According to the BBRP proposal, seats on the steering committee would be year-long, and most members would receive a salary similar to a City of Seattle Strategic Advisor 2, in the range of $100,000 per year, based on a current listing for a strategic advisor position with the Office of Civil Rights, because of their roles as project managers.

But while the BBRP team has spent the past six months conducting surveys, interviews and focus groups on a set of high-level priorities that will “guide” participatory budgeting, Glaze and Severe told the council that most of the legwork needed to get the program up and running still lies ahead—as do some steps that the researchers initially planned to tackle over the past six months.

To choose the members of the steering committee, Glaze and Severe outlined a complex process in which a group of decision-makers will allot points to applicants based on their lived experiences; people with disabilities, Duwamish tribal members, trans or non-binary people, and Black women are among the groups who would receive points because the researchers have determined that their experience is vital to the success of the committee. Who the decision-makers would be, and how they will be chosen, is still unclear. After allocating points to applicants, the group of decision-makers would choose ten applicants from a pool of those who receive high enough scores at random, according to Glaze, to form a “jury” that would then choose the members of the steering committee from the remaining high-scoring applicants.

 

According to the BBRP’s report, applications for the positions will open in March. Excluding the city employees who will provide support for the process, the BBRP’s outline for a participatory budgeting process would require a staff nearly as large as Seattle’s Office of Civil Rights.

Once formed, the steering committee is supposed to create job descriptions for the full-time work group members. Members of the “accountability work group,” for instance, would “monitor and receive feedback” about the decisions made by the steering committee; a second group, called the “lived experience work group,” would “ensure the participatory budgeting process is aligned with the lived experiences of community members.” Continue reading “What’s Next for Participatory Budgeting in Seattle”

Taking on Insurance Companies, Lawmakers Seek Racial Equity Reforms

by Shauna Sowersby

Washington State lawmakers are considering a proposal to eliminate the use of credit history to increase insurance rates or to determine premiums when renewing personal insurance. 

SB 5010 is just one of the measures being considered as part of Gov. Jay Inslee’s “package of proposals that address systemic racism.” The bill seeks reforms to insurance policies such as auto coverage, homeowners insurance, and earthquake insurance.

Sen. Mona Das (D-47, Kent) is the prime sponsor of the bill. Last month, she testified to the Senate Committee on Business, Financial Services & Trade that low-income households, specifically in communities of color, are most likely to be negatively affected by credit scores. 

Additionally, the bill would help the people who have lost their jobs or had their businesses affected by the COVID-19 pandemic, Das explained. 

“Many of these folks will see credit scores go down as they struggle to pay their bills and manage their credit,” she told the committee. “To penalize folks with increased rates or restricted access to coverage just because their credit history suffered during this challenging time is inequitable, it’s unfair and really makes no sense.”

Studies from the Federal Trade Commission and the Consumer Federation of America, among others, have shown that people who live in communities of color and those living in low-income households are far more likely to pay higher insurance premiums, even if they have clean records. 

In addition, the CFA study showed that everything else being equal, “safe drivers with poor credit pay 79%, or $370, more on average than a driver with excellent credit,” statewide. 

“Black, brown and also poor white Washingtonians occupy the bottom rung of our economic hierarchy,” said former Seattle City Council candidate Shaun Scott, who testified on behalf of the Poverty Action Network. 

Continue reading “Taking on Insurance Companies, Lawmakers Seek Racial Equity Reforms”

Community Safety Research Effort Splinters, Leaving Future of $3 Million Project Unclear

Black Brilliance Research Project co-lead Shaun Glaze

By Paul Kiefer

Editor’s note: This post has been updated. See below for update.

On Monday afternoon, the Black Brilliance Research Project announced a split with King County Equity Now, the organization that the city selected last year to coordinate research that will lay the groundwork for a public safety-focused participatory budgeting process later this year. The Black Brilliance Research Project (BBRP) is the name of that research effort.

In a post published on Medium, Black Brilliance Research Project (BBRP) co-lead Shaun Glaze wrote that Freedom Project Washington, the nonprofit that serves as a “fiscal agent” for the $3 million contract, will now be responsible for coordinating the project, with the BBRP conducting research as a direct contractor to the Freedom Project. At the same time, King County Equity Now (KCEN), the group that’s contractually in charge of the research effort, announced its own new “community research panel” that it says will complete the research.

Under the terms of the Freedom Project’s contract with the city council, KCEN—as the lone sub-contractor to Freedom Project—is responsible for a list of deliverables, including three reports and presentations to the council. KCEN fielded its own team of researchers, including Glaze, but also contracted much of the research out to other nonprofits and community organizations.

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If you’re reading this, we know you’re someone who appreciates deeply sourced breaking news, features, and analysis—along with guest columns from local opinion leaders, ongoing coverage of the kind of stories that get short shrift in mainstream media, and informed, incisive opinion writing about issues that matter.

We know there are a lot of publications competing for your dollars and attention, but PubliCola truly is different. We cover Seattle and King County on a budget that is funded entirely by reader contributions—no ads, no paywalls, ever.

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Glaze told PubliCola on Monday night that research teams that previously contracted directly with KCEN will now contract directly with Freedom Project. However, Freedom Project’s role as a fiscal sponsor is strictly constrained by the terms of the contract. For example, the contract does not allow Freedom Project to add or remove subcontractors at will; any substantive changes to the contract must to be approved by the city council, which is likely to have some major questions about the project now that the BBRP and KCEN have said they are going their separate ways.

The BBRP is, in large part, Glaze’s brainchild; Glaze joined KCEN in June 2020 and, alongside co-lead LéTania Severe, assembled KCEN’s research team last fall. Glaze and Severe have also been the primary authors of the work plan and research progress reports submitted to the city council.

In the letter, Glaze wrote that the BBRP’s core staff lost confidence in KCEN’s leadership team after KCEN incorporated as a nonprofit at the end of 2020. “When KCEN represented a collective of Black community organizations, having KCEN facilitate the research made sense,” Glaze wrote. “However, once KCEN chose to incorporate, the community partnership dynamic changed, and this created obstacles and barriers to the research.”

Glaze’s letter claims that KCEN leadership locked researchers out of their email accounts and research databases, “[cut] off communication when requests for transparency and accountability were made,” delayed paying research staff and “dismiss[ed] the lived experiences of some Black community members, including Black people who live in but were not born in Seattle and trans and queer people.”

Of the eight research teams that previously sub-contracted with KCEN, two were notably absent from the signatories of Glaze’s letter: artist collective Wa Na Wari and South Seattle-based nonprofit East African Community Services. PubliCola has contacted East African Community Services and Wa Na Wari about the future of their involvement in the BBRP.

Meanwhile, in a community meeting Monday afternoon, KCEN’s leadership team announced the creation of a new “community research panel” that will “help steward research efforts moving forward,” producing its own report at some point in the coming year.

The council expects a final report on the findings of the BBRP by February 26. According to Glaze, the BBRP team expects to meet that deadline despite the shake-up. It remains unclear what will happen if the council ends up with two separate reports with conflicting recommendations.

Update on 2/11/2021:

The details of the split between KCEN and the core leadership of the BBRP are still difficult to track, but a representative from Freedom Project Washington says that their group will now directly oversee the research teams. (Previously, KCEN was responsible for supervising the work and budgets of the research teams.) In an email to PubliCola on Tuesday, Freedom Project spokeswoman Sauda Abdul-Mumin said the group will also take responsibility for the final research report to the council, which is due on February 26.

The contract for the work, which is held by the Freedom Project, makes King County Equity Now the only subcontractor on the project, and explicitly states that the Freedom Project, as the city contractor, “shall not assign or subcontract its obligations under this Agreement without the City’s written consent, which may be granted or withheld in the City’s sole discretion.” The city attorney’s office is advising the city council (which holds the contract) on what it needs to do to change the contract now, less than two weeks before the final report is due to the city.

Both Glaze, who spoke to PubliCola by text Monday night, and Abdul-Mumin said the re-shuffling of responsibilities won’t hinder the research project. “This change does not impact the contract schedule,” Abdul-Mumin said, “and we are still anticipating a final report and hearing to take place this month. Very little has changed in terms of the research facilitation. This transition occurred to safeguard the stewardship of public funds and remain aligned in our commitment toward making our communities safe for everyone, especially those who have for so long been targeted by systemic racism and oppression.”

Abdul-Mumin didn’t confirm whether KCEN’s own research team on KCEN’s subcontract) will remain involved in the project. However, in an email on Tuesday, KCEN’s press team wrote that the “nearly finalized” research project outlined in the city contract will remain “under KCEN’s Black research umbrella”; they did not clarify whether they intend to submit their own final research report to the council. Instead, the KCEN press team highlighted other advocacy efforts in which their organization is involved; some of those efforts, including calls for the city to set aside $1 billion for an anti-gentrification fund, appeared in past research reports KCEN submitted to the council.

KCEN’s press team also responded to the allegations that their leadership delayed payments to research staff, saying that the city didn’t provide “significant funding” until January. The press team also said that KCEN has paid a total of $1.8 million to the project’s research teams, including more than $1 million that KCEN raised from donors.

The payment schedule included in the city’s contract with Freedom Project Washington specified that the council would release the $3 million allotted to the project in four payments: a $250,000 payment after the council finalized its contract with Freedom Project; a $1 million payment after KCEN submitted a work plan and schedule; a $1.5 million payment after KCEN submitted its preliminary research findings; and a final $250,000 payment after the council received a final research report.

Financial records obtained by PubliCola show that Freedom Project Washington – which, until Monday, was solely responsible for distributing city dollars to its subcontractors and reporting their budgets to the council – show that the nonprofit submitted invoices for the first three payments in November, December and January. PubliCola has reached out to the Seattle City Auditor’s office, which is overseeing the contract’s payment schedule, to determine when Freedom Project received those three payments.

According to their contract with the council, Freedom Project cannot “transfer or reassign” any “essential” research staff without the “express written consent of the city”; Glaze and Severe, the project’s co-leads, qualify as essential staff, so their transfer from KCEN to Freedom Project will likely require city council approval.

Additional reporting by Erica C. Barnett