Tag: Steve Hobbs

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”

House Finance Committee Hears Testimony on Historic Capital Gains Tax Legislation

By Leo Brine

On Monday morning, the House Finance Committee took up Sen. June Robinson’s (D-38, Everett) historic capital gains tax legislation, which the Democratic-controlled Senate passed two weekends ago on March 6.

During the committee meeting, tech industry lobbyists and conservatives tried to slow the bill’s momentum. Tech lobbyists said the legislation, which calls for a 7 percent tax on capital gains of more than $250,000, would cause small tech startups to flee the state. Republicans chimed in, saying the tax wouldn’t merely drive away business, but it would drive away wealthy people and even the tech industry as a whole.

Specifically, the Washington Technology Industry Association (WTIA) testified that the tax will harm small tech-startups’ ability to recruit employees because stock options (which count as capital gains) would likely be taxed when the employee sells them.

According to the WTIA, stock options are a “primary compensation strategy” for startups. By offering stock options, startups can pay their employees lower salaries while allowing them to buy shares of their employer’s company at a low fixed price. Employees can then sell their shares when the company goes public or is bought out.

Molly Jones, vice president of government affairs for WTIA, implied that tech startups would pack up and head out of Washington if the tax passed. “We are concerned that passage of the capital gains tax will further drive founders, startups, jobs and future drivers of employment and economic growth out of our state,” she said. Her association polled startup members and found, she said somewhat obliquely, that 32 percent were “evaluating whether to relocate their headquarters.” She did say specifically that over 10 percent had already begun looking outside of Washington.

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Being fully independent means that we cover the stories we consider most interesting and newsworthy, based on our own news judgment and feedback from readers about what matters to them, not what advertisers or corporate funders want us to write about. It also means that we need your support. So if you get something out of this site, consider giving something back by kicking in a few dollars a month, or making a one-time contribution, to help us keep doing this work. If you prefer to Venmo or write a check, our Support page includes information about those options. Thank you for your ongoing readership and support.

Republicans piled on, saying the bill will drive the state’s wealthiest to uproot and live elsewhere. They also said the tax will eventually start to affect more than the minuscule 0.23 percent of Washington residents the Democrats estimate would be impacted by the tax.

Republicans also foreshadowed their strategy going forward if the Washington State Supreme Court eventually takes up the bill, by labeling it an unconstitutional “income tax” and comparing it to previously failed income and graduated income tax bills.

House Finance Committee Chair Rep. Noel Frame (D-36, Seattle), who told PubliCola last week that the bill is a priority, kept the discussion moving; 100 people signed up to testify, though only 28 spoke. Nearly 4,000 people signed their names into the legislative record, with more than half, 2,380, signing in support.

One Seattle tech worker, Kevin Litwack, who has received stock options in the past, contradicted the spokespeople for his industry by testifying in support of the bill. “Of course, the tech industry pays well,” he said, “but we don’t need a vast fortune.” Litwack said his peers who view taxes as an obstacle to amassing huge amounts of wealth may “take their money and run,” but “even more will come to replace them, drawn by the values of community and shared responsibility that our state embodies. We, not those purely chasing wealth, are the ones you should want here to build Washington’s future.”

None of the Democratic legislators on the committee spoke to the removal of an emergency clause from the bill that would have put the tax in place immediately and protected the bill from voter referendum. Moderate Sen. Steve Hobbs (D-44, Lake Stevens) sponsored and passed an amendment on the Senate side that removed the clause, irking progressives such as Seattle State Sen. Joe Nguyen (D-34, Seattle).

The bill will head to a finance committee executive session for a vote “soon,” Rep. Frame’s office told PubliCola. The Democrats have an 11-6 majority on the committee. From there it would go to the House floor, where the Democrats are also in control.