STATE GOVERNMENT
Hold Boeing accountable for state tax breaks (WSLC Leg. Update)
New bills would protect Washington jobs as Boeing cuts continue
However, instead of increasing employment in the state as our Legislature intended and the public expected, since that time Boeing has cut 12,259 jobs in Washington — almost 7,400 in the past year alone — with more cuts planned later this year. And yet the company continues to receive its full tax incentive.
Two new bills introduced last week in the Legislature are a clear indication of concern — from both sides of the political aisle — that the Washington’s aerospace tax preferences are failing to achieve their intended purpose and need to be amended.
HB 2146, sponsored by Rep. Richard DeBolt (R-Chehalis), and HB 2145, sponsored by Rep. Noel Frame (D-Seattle), have support from dozens of members of their respective caucuses. Both titled the Aerospace Tax Incentive Accountability Act, the bills would amend the aerospace tax incentives — which have already been amended several times since they were enacted in 2013 — to add job conditions resembling those required in other states in order for Boeing to receive tax incentives.
HB 2145 would reduce Boeing’s tax credit by half if the company’s employment in Washington drops below 70,000 jobs. The company gets no tax credit and pays the standard tax rate all other manufacturers pay if its employment drops below 67,500 jobs. Boeing currently employs 71,036 Washington workers, down from 83,295 in November 2013. Aerospace tax credits would remain in place if the job loss is due to a nationwide industry downturn.
HB 2146 would assess Boeing employment levels in 2024, the year the original aerospace tax incentive begins its extension. If Boeing’s average employment in Washington is less than 75,000 during the period of 2017-2024, the aerospace tax incentives would expire for all companies.
Although organized labor has concerns about some details, the Washington State Labor Council, AFL-CIO joins IAM 751 and SPEEA in strongly urging the House Finance Committee to consider these proposals and advance a solution that brings needed accountability to Washington’s aerospace tax preferences.
Today is ‘Keep Film in Washington’ Day
If you’re looking for an example of a model tax incentive that guarantees its recipients are accountable for creating jobs in the state, look no further than the Motion Picture Competitiveness Program. Filmmakers only receive its rebates after the production is completed and the jobs have been created. That’s a guaranteed return on the taxpayers’ investment. The program also encourages productions to maximize in-state spending because incentive funds are only allocated for expenditures made within the state.
HB 1527 and SB 5502 , sponsored by Rep. Marcus Riccelli (D-Spokane) and Sen. Randi Becker (R-Eatonville), would reinstate a relatively small tax incentive — $3.5 million per calendar year for the next 10 years — to encourage filmmaking in our state and attract a wide range of associated jobs and economic investment. Over the past three years, projects approved for funding assistance have spent money in every single legislative district in the state. But if legislators fail to act, this incentive will expire on June 30. Download a fact sheet on the Motion Picture Competitiveness Program for more information.
Delegates representing unions from across the state approved a 2016 Washington State Labor Council resolution supporting this important tax incentive and its renewal.
The latest on working-family legislation
Check out the latest status report on key working family bills at The Stand. It is not a comprehensive list of the bills upon which the Washington State Labor Council has taken a position. These updates are on bills previously described in this newsletter and at The Stand.
Also, there’s much more news from the State Legislature posted each week at The Stand. This past week, it included:
Transportation coalition decries Senate’s possible ST3 delays –On Monday, the Washington State Senate met to discuss measures that will delay the implementation of our region’s mass transit system, ignoring the will of the voters to expand and improve regional transportation options. The landmark voter approval of Sound Transit 3 last fall advanced the critical plans to expand light rail, commuter rail, and bus rapid transit connecting Tacoma, Everett, Seattle, Redmond, Bellevue, and Federal Way. Business and labor interests on the Transportation Choices Coalition decried Monday’s action by the Senate as a step backwards in addressing our region’s mobility needs. Read more.
Bill seeks prescription drug price transparency to manage costs –The true costs of prescription drugs are largely hidden, hard to understand, and nearly impossible to predict. That’s why prescription drug pricing transparency legislation has been proposed this year: to help lawmakers understand what is driving drug prices and address the root causes of rising healthcare costs. 2SHB 1541, sponsored by Rep. June Robinson (D-Everett) and 38 other state representatives, would improve regulation, transparency and accountability on prescription drug pricing. Read more.