In response to an operating budget proposal by the Senate Ways and Means Committee Chair on March 24, the Association of Washington Business, Bellevue Chamber of Commerce, Seattle Metropolitan Chamber of Commerce, and Washington Roundtable issued this joint statement:

“Despite a decade of increasing state revenue, overspending by state officials has left us with a projected multi-billion dollar budget deficit over the next four years and today, rather than providing a plan to rein in spending, the Senate Ways and Means Committee Chair proposed increasing state spending by 9.1 percent, or an additional $6.5 billion, and rolling out a new slate of unpredictable taxes to the tune of $6.2 billion to $9.8 billion over the next two biennia that will have a real and lasting impact on the cost of living for all Washingtonians.

The state’s budget deficit is not due to a recession, as it was in 2009; it is also not due to declining revenues. It is because spending has eclipsed growing revenues and lawmakers spent the rainy-day fund and one-time monies and assumed more revenue than was forecast. Both Senate and House majority caucuses have recently rolled out tax proposals they hope to pass before sine die on April 27. The options range from the deeply troubling, to downright irresponsible.

Rather than do the real work of balancing the budget, officials have proposed new taxes that would generate between $13 billion and $17 billion for the state – representing by far the largest tax increases in state history and making everything from groceries to housing more expensive for all Washingtonians.

Our organizations have been vocal in our support for the approach outlined by Gov. Bob Ferguson last month, which focuses on identifying savings and efficiencies while protecting critical services. This is the same approach families and businesses take. His leadership in prioritizing responsible budgeting stands in stark contrast to the tax proposals put forward today.

Since 2000, Washington has seen the greatest amount of tax increases of any state in the nation, yet it still ranks 46th in public safety, and 47th in both affordability and fiscal stability. It already has the highest rate of new-business failures in the nation and has collapsed from the nation’s sixth best business tax climate in 2014 to the fifth worst.

Washington’s long-term economic health depends on responsible leadership and a sustainable budget—one that ensures state spending is sustainable, protects essential services, and keeps our state an attractive and affordable place to live and work. We urge House and Senate Democrats to go back to the drawing board and develop a solution that prioritizes fiscal discipline over harmful new taxes.”

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About Our Organizations
About the Seattle Metropolitan Chamber of Commerce
The Seattle Metropolitan (Seattle Metro) Chamber of Commerce is the regional business advocacy organization that engages the innovation and entrepreneurship of its 2,500 members to promote inclusive economic prosperity. Founded in 1882 by local business leaders, the Chamber today is an independent organization representing a regional workforce of approximately 750,000. For more information, visit seattlechamber.com.

About Washington Roundtable
Washington Roundtable is a nonprofit organization comprised of senior executives of major private sector employers in Washington state. Roundtable members work together to effect positive change on public policy issues that they believe are most important to supporting state economic vitality and fostering opportunity for all Washingtonians. For more information, visit waroundtable.com.

About the Association of Washington Business
Formed in 1904, the Association of Washington Business is Washington’s oldest and largest statewide business association representing all sectors of business. AWB serves as both the state’s chamber of commerce and the manufacturers association. While its membership includes major employers like Boeing and Microsoft, 90% of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit awb.org.

About the Bellevue Chamber
With hundreds of members representing tens of thousands of employees, the Bellevue Chamber is the relationship, policy, and business development hub for organizations throughout the Puget Sound region. We connect businesses with potential employees, sales opportunities, and social engagement, and provide our members access to industry experts and real-time information impacting our city and the Eastside. Learn more at bellevuechamber.org

In response to a revenue package put forward by Democratic leadership in the Washington State Senate on March 20, the Association of Washington Business, Bellevue Chamber of Commerce, Seattle Metropolitan Chamber of Commerce, and Washington Roundtable issued this joint statement:

“Today’s revenue proposal is disappointing and, unfortunately, not surprising. For months, our organizations have urged lawmakers to craft a sustainable budget that corrects a well-worn pattern of overspending.

However, it appears they are doing exactly what they have said they intended from the start: raise business taxes as high as they possibly can.

The fact that Senate Democrats released a revenue proposal before outlining how they intend to spend the money—and that House Democrats intend to do the same—makes it clear that raising taxes was the focus. It is the height of irresponsibility.

What makes these proposals particularly reckless is that lawmakers are knowingly taking these actions against a backdrop of national policy instability and global tensions. Chaos and uncertainty—the biggest threats to a healthy business climate—are plaguing the national economy. The possibility of a national recession and continued tariffs are threatening jobs while simultaneously increasing the cost of everyday goods. That state lawmakers are ignoring these realities, dismissing voter concerns about affordability, and disregarding employer warnings is alarming.

Let’s be clear—this budget shortfall is a self-inflicted crisis. State revenues are expected to continue growing over the next four years. The latest revenue forecast shows tax collections are expected to increase $4.5 billion this biennium, and another $5.5 billion in the following two years.

This is not a revenue problem; it is a spending problem. Over the last two budget cycles, state spending has grown 40%, far outpacing revenue growth. But, instead of taking corrective action, House and Senate Democrats are doubling down with tax increases.

We have been vocal in our support for the approach outlined by Gov. Bob Ferguson last month, which focuses on identifying savings and efficiencies while protecting critical services. This is the same approach families and businesses take. His leadership in prioritizing responsible budgeting stands in stark contrast to the tax proposals put forward today.

Washington’s long-term economic health depends on responsible leadership and a sustainable budget—one that ensures state spending is sustainable, protects essential services, and keeps our state an attractive and affordable place to live and work. We urge House and Senate Democrats to go back to the drawing board and develop a solution that prioritizes fiscal discipline over harmful new taxes.”

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About the Seattle Metropolitan Chamber of Commerce
The Seattle Metropolitan (Seattle Metro) Chamber of Commerce is the regional business advocacy organization that engages the innovation and entrepreneurship of its 2,500 members to promote inclusive economic prosperity. Founded in 1882 by local business leaders, the Chamber today is an independent organization representing a regional workforce of approximately 750,000. For more information, visit seattlechamber.com.

About Washington Roundtable
Washington Roundtable is a nonprofit organization comprised of senior executives of major private sector employers in Washington state. Roundtable members work together to effect positive change on public policy issues that they believe are most important to supporting state economic vitality and fostering opportunity for all Washingtonians. For more information, visit waroundtable.com.

About the Association of Washington Business
Formed in 1904, the Association of Washington Business is Washington’s oldest and largest statewide business association representing all sectors of business. AWB serves as both the state’s chamber of commerce and the manufacturers association. While its membership includes major employers like Boeing and Microsoft, 90% of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit awb.org.

About the Bellevue Chamber
With hundreds of members representing tens of thousands of employees, the Bellevue Chamber is the relationship, policy, and business development hub for organizations throughout the Puget Sound region. We connect businesses with potential employees, sales opportunities, and social engagement, and provide our members access to industry experts and real-time information impacting our city and the Eastside. Learn more at bellevuechamber.org.