OLYMPIA — The state Legislature is once again facing a budget shortfall, but unlike last year’s session, new taxes will be needed to close the funding gap, say two North Olympic Peninsula representatives.
During the 60-day session that begins today, the Legislature will have to close an estimated $2.6 billion deficit. This comes one year after an estimated $9 billion gap was closed through large spending cuts to state services.
Two of the three representatives could be reached for comment — Rep. Kevin Van De Wege, D-Sequim, and Sen. Jim Hargrove, D-Hoquiam — and both said the state is at the limit of what it can cut so new revenue sources need to be found.
House Majority Leader Lynn Kessler, D-Hoquiam, is the 24th Legislative District’s other representative.
New revenue could come from closing tax loopholes and from new taxes, Hargrove and Van De Wege said.
“We did $9 billion last year without looking at taxes,” Hargrove said.
Hargrove said that for him to support a new tax it could not be permanent.
“At some point, the economy will start to recover,” he said.
Van De Wege said he is proposing that the state tax oil imported into the state that is destined for locations in other states. Currently, only oil brought to Washington ports that will be used in the state is taxed when imported, he said.
That would raise less than $10 million, Van De Wege said.
Expanding the sales tax to such commodities as candy has also been proposed, he said, adding that he remains undecided.
Two-thirds needed
Before the Legislature can raise new sources of revenue, it will need support from two-thirds of the representatives due to Initiative 960, passed by state voters in 2007.
That is, unless the initiative is suspended.
Hargrove and Van De Wege both said they expect I-960 will need to be suspended to solve what Hargorve called a “once in a lifetime crisis.”
Other than the budget, Hargrove said the Senate Human Services and Corrections committee that he chairs will be discussing how to improve the state’s judicial system in response to the killing of six law enforcement officers last year.
Both legislators have pre-filed bills for this session.
For Hargrove, they are:
• Senate Bill 6236: This bill would create incentives for the state Department of Natural Resources to make long-term contracts for companies that use state lands to create biomass energy.
Van De Wege is the sponsor of its companion bill in the House of Representatives.
• Senate Bill 6235: This bill would declare jobs related to forest-products energy as “green jobs.”
• Senate Bill 6202: This bill would increase penalties for those convicted of a crime against a “vulnerable adult.”
Van De Wege’s bills are:
• House Bill 2546: This bill would require electrician apprentices not going through a union program to go through 48 hours of training a week to become state certified. Van De Wege said union programs already require the same amount of training.
• House Bill 2532: This bill would create a pilot program in Clallam County that will allow cluster developments water rights.
• House Bill 2481: This bill would create incentives for the state Department of Natural Resources to make long-term contracts for companies that use state lands to create biomass energy.
• House Bill 2468: This bill would prohibit the state Department of Ecology from metering wells that withdraw fewer than 5,000 gallons per day.
The state Legislature’s Web site did not list any pre-filed bills from Kessler as of Friday.
Van De Wege, who will be up for re-election this November, serves on four committees: Agriculture and Natural Resources, General Government Appropriations, Rules, and Technology, Energy and Communications.
Hargrove also serves on the Natural Resources Ocean & Recreation committee.
Kessler is on the House Rules and Ways and Means committees.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
