Legislative Updates for July
COVID impacts on tax revenues
Despite a sizable deficit in the general fund budget due to COVID impacts on tax revenues, it is not likely that the Governor will call a special session in 2020. The Governor’s current plan is to use all of the reserves and then address the remaining deficit in the 2021 session. He is hoping the federal government provides additional money as well. The Democrats control the House and Senate and have said they can’t address the deficit with only budget cuts and will also need new taxes.
Head tax proposals
Two of the taxes being discussed for the 2021 session are an expansion of the Seattle high-earners or “head” tax either statewide or within the Puget Sound and a capital gains tax. We will also see a carbon pricing scheme to fund transportation.
Washington state unemployment fund
With the huge number of unemployment claims, the state’s unemployment insurance fund will fall below a safe level as early as this fall. This fund is entirely supported by employer contributions and speculation is the employer UI taxes could triple without other solutions. This will be a major topic of discussion in the 2021 session and SMACNA will be involved.
The Alternative Public Works Contracting statute (RCW 39.10)
The Alternative Public Works Contracting statute (RCW 39.10) has to be reauthorized in 2021. We expect some changes to the statute and will be monitoring the issue carefully.
