Tag: economic recovery

Mayor’s 2020 Budget Would Reallocate JumpStart, Uber Taxes to Pay for BIPOC Investments To Be Determined by New Task Force

Screen shot from internal City of Seattle presentation obtained by PubliCola.

UPDATE: Mayor Jenny Durkan’s office has confirmed that the mayor plans to use both JumpStart (payroll) tax revenues, which are currently earmarked for housing, people experiencing homelessness, and small businesses, and money from the Transportation Network Companies (Uber/Lyft) tax to help pay for her $100 million “new investment” in BIPOC communities. The details of that spending would be hammered out by a task force whose members Durkan will announce next week. (More information in original story, below.)

The TNC tax is currently earmarked for affordable housing near transit and the Center City Streetcar. Using TNC revenues to get to the $100 million goal could mean abandoning the troubled downtown streetcar project.

Earlier this year, the city council passed the JumpStart tax—a graduated payroll tax on high-income workers’ earnings. Durkan, who opposed the tax, nonetheless only vetoed the council’s JumpStart spending plan, letting the tax itself become law without her signature. (The council overrode the veto).

It was an odd move that many observers questioned at the time. However, if Durkan was planning to use the tax revenues to pay for her July commitment, which she made at the height of clashes between protesters and Seattle police, the mayor’s decision to preserve the tax but try to undo the spending plan makes sense. 

But it will have consequences. Under the council’s plan, payroll tax revenues would be used in the short term to fund rent relief, non-congregate shelter beds, immigrant and refugee relief programs,grocery vouchers, and direct assistance to child care centers and other small businesses. In the long term, the tax is supposed to provide $214 million a year for low-income and affordable housing, equitable development, small business support, and Green New Deal projects.

Council member Teresa Mosqueda, who proposed the JumpStart plan, told PubliCola, “JumpStart funding for 2021 was supposed to lessen the austerity cuts that were expected to core government services, much of which serves BIPOC communities. We cannot take expected JumpStart revenue to make good on a promise [Durkan] couldn’t keep.”

The council, which is just coming off a bruising battle over the 2020 rebalancing package, will have to decide now whether they want to fight Durkan’s plan to allocate $100 million to a list of projects that won’t be determined until her task force comes up with spending priorities; or to give in and abandon some or all of the JumpStart spending plan they adopted in July.

If they fight, the mayor will be able to accuse the council of “not listening to community” because their spending plan didn’t involve the kind of lengthy community process Durkan has proposed. If they don’t, community groups that worked to secure the funding in that plan, including groups that advocated for months for the Green New Deal spending plan, could lose out.

Overall, according to PubliCola’s reporting, Durkan’s budget plan would require between 75 and 80 outright layoffs, representing about $7 million in city spending. The mayor will present her budget to the council next Tuesday at 1pm.

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Original story follows.

As PubliCola reported yesterday, in advance of today’s announcement, Mayor Jenny Durkan is convening a new “Equitable Investment Task Force” as part of a “Reimagining Seattle” process that will begin discussions to “realign” the city’s spending  for a post-COVID recovery. The mayor’s announcement, made in an op/ed in the South Seattle Emerald, does not provide many details about her “Equitable Communities Initiative” or the makeup of the task force, but does indicate that this will be a multi-year process, starting with the 2021 budget she’ll propose next Tuesday and continuing with an already planned supplemental budget next spring.

As we noted on Twitter yesterday, PubliCola has obtained additional details that shed more light on the mayor’s plans, which also involve numerous internal “work groups” (distinct from the external task force) and more than 30 city staff, most of them from the city budget office or the mayor’s office.

In an internal PowerPoint presentation titled “Reimagining Seattle As We Know It,” Durkan’s office laid out a plan that that includes new internal city of Seattle “work groups” and an Equitable Investment Task Force with various committees and a paid facilitator, which will “interface” with, and get technical assistance from, the city by way of the new work groups. The mayor’s office will serve as the liaison between all these different groups, and a still-to-be-hired Director of Re=covery and Equitable Investment will head up the whole effort.

The mayor has been criticized in the past for appointing task forces to discuss urgent problems in the past instead of taking quick and decisive action. Past task forces have included groups that discussed homelessness (One Table), zoning in industrial areas (the Industrial and Maritime Strategy Council), and business (the Small Business Advisory Council), among others.

This purpose of this task force is, in part, to discuss how to spend the $100 million the mayor has pledged in “new spending” on BIPOC communities in her 2021 budget, which her office will present to the city council on Tuesday.

One likely source of these revenues will be the JumpStart tax, which is intended to help individuals and businesses recover from the COVID-related economic downturn next year, to cover some of the $100 million. Earlier this year, Durkan vetoed the spending plan for the tax, but not the tax plan itself (the council overrode the veto).

Council member Teresa Mosqueda, who proposed the JumpStart plan, told PubliCola, “JumpStart funding for 2021 was supposed to lessen the austerity cuts that were expected to core government services, much of which serves BIPOC communities. We cannot take expected JumpStart revenue to make good on a promise [Durkan] couldn’t keep.”

According to the city’s internal presentation, the task force—whose members the mayor’s office has not yet identified—will have four co-chairs, and the whole effort will be headed up by the mayor’s new Director of Recovery and Equitable Investment, who has not been hired yet (the job posting went up in early September). PubliCola hears it’s been a challenge to find someone to fill the cabinet-level position, which has a pay range of $120,000 to $180,000.