Teresa Mosqueda, Ty Stober and Paul Dillon: Local leaders need new revenue tools to serve our communities

As municipal leaders, we were elected to respond to community needs and deliver the services our constituents rely on and deserve. We strive to create safe, economically vibrant communities where people have access to quality transportation and public spaces, and stable housing – places where they can find fulfillment and provide for their families. But that mandate is severely hampered by a tax code that places an artificial limit on our ability to respond to economic reality. Simply put, we do not have the resources to care for our residents in a way that reflects our values. It does not have to be this way.

Like cities and counties across the state, the jurisdictions we represent face deep budget deficits that will result in significant service reductions without action now by the state legislature. These are not one-time shortfalls; they are significant structural problems related to how we collect taxes and the limited tools we can leverage, and will only continue to worsen without state action.

Local governments in Washington are required by state law to rely on property taxes to fund services and infrastructure. For cities like Spokane and Vancouver, property taxes are around 30% of revenues. Counties like King County are allowed even fewer revenue options, and are forced to rely on property taxes for around 60% of their revenues.

When our current tax structure was put in place in 1930, property taxes were a reliable source of funding for our state. But the ability of property tax to support critical services was eroded in 2001 when a Tim Eyman-backed initiative was adopted by the State Legislature. It arbitrarily capped increases at 1% per year. High inflation, a rapidly growing population and increasing demands from our residents for services means that 1% does not cover expenses.

King County is facing a nearly $200 million gap over the current biennium. In Vancouver, it is $43 million. Spokane reluctantly raised its sales taxes as a short-term means to cover its deficit created by increased population and needs.

Our tax code requires local jurisdictions to repeatedly consider cutting parks and recreation programs; deferring water, sewer, and street maintenance; forgoing investments in affordable housing and human services; and ignoring the need for additional public safety resources to match our growing populations.

This year, following several years of hyperinflation, the situation has come to a head and our local governments will be forced to make the most serious cuts in services since the Great Recession. Unlike after a recession, however, the structural nature of our deficits means no amount of economic recovery will restore services. This prompted nearly 70 local elected leaders from across the state to send an open letter to state legislators asking for additional tools to fund essential services.

To avoid devastating cuts and continue to invest in the services and infrastructure that kids, families and seniors deserve, state lawmakers must reform the property tax code. This session, they can do that by creating new local revenue options and lifting the arbitrary 1% lid on local property tax revenues. But we should not have to rely so heavily on property taxes and sales taxes that impact low-income families the most. We need additional tools that are progressive, so that the tax burden is more equitably shared by the wealthiest Washingtonians and most profitable corporations.

It’s important to remember that these tools are optional. While we need the legislature to diversify revenue options for local jurisdictions and lift the property tax lid, it’s up to local elected governments to decide how to balance their budgets based on local circumstances. Even now, not all jurisdictions take the current 1% property tax increase each year. Providing more options gives flexibility to local governments to balance their revenues to meet the needs of their communities with tools that provide long-term stability.

From Spokane to Vancouver, King County and beyond, we believe that our neighbors deserve communities where they have what they need to thrive. Local elected officials are required to pass balanced budgets, moral documents that reflect local needs and values now and into the future. We want to be able to engage with our residents about a shared vision for our communities and then pass balanced budgets to meet their needs. Legislators, give us that opportunity.

Teresa Mosqueda, King County council member in District 8, is serving her eighth year in public office. This is her second year at the county; she previously served six years on Seattle City Council. She is chair of the Health, Housing and Human Services committee and chair of the regional Board of Health. Ty Stober is serving his 10th year on the Vancouver City Council. During his tenure he has focused on land use, transportation, homelessness and housing. Spokane City Councilman Paul Dillon is in his first term representing District 2. He serves as Council President Pro Tem and chair of the Finance and Administration Committee. In addition to his council duties, he is the Political Manager for Pro Choice Washington and previously was the vice president of public affairs for Planned Parenthood Greater Washington.