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I asked for an armed escort because it was dark outside after I bought the eggs.

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I thought these are so valuable.

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You must have some big burly guy who's going to escort me to my car.

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Welcome to County Connection, the official podcast of the Washington

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State Association of Counties, where we dive into the legislative issues

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shaping the future of our communities from budgets to public safety,

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infrastructure to elections will break down what's happening in Olympia

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and how it impacts counties from across the evergreen state.

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Stay informed, stay engaged and join us as we amplify the voice

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of Washington's 39 counties.

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Welcome, everybody, to episode five of the County Connection.

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I'm Paul Jewell, the government relations director here at the Washington

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State Association of Counties and your host for better or for worse today

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and every day on the County Connection.

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This is our fifth episode.

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We are one day away from the fiscal cutoff here in Olympia,

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and I have a special guest with me and we're going to talk taxes.

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And that's Candice Bach with the Association of Washington Cities.

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Candice, how are you doing?

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I'm doing well, Paul.

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Thanks for having me on the counties podcast.

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Yeah, well, you know, you're the first city person that we've had

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on the county podcast.

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We've brought some guests in from other places, some former employees

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and some agency folks, but you are the first non-county person.

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So hopefully this works out well and I'm honored or I maybe you won't have me back.

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We'll see. I was just going to say hopefully it'll work out well

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and we'll have you back, you know, 10 or 15 times.

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But, you know, counties and cities are partners on a lot of things.

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You and I certainly work together quite a bit, especially this year

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since roles have changed here at WSAC.

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You and I have gotten to know each other quite a bit.

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And I'm not afraid to admit you've saved my bacon a few times as I've been.

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That's what partners are for.

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Well, I really do appreciate it.

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I'm into a bunch of policy areas that I have never worked in before.

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And truth be told, I've blown it a couple of times.

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And you've been there to kind of watch my back and pick up the pieces,

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which I really appreciate.

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So thank you for that.

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And thanks for joining us today to talk about everyone's favorite subject,

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which is property taxes.

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Yeah. Oh my gosh. People love property taxes.

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They're always asking for more property taxes.

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Higher property taxes.

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It's always it comes up no matter what it does.

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It I know I can just be walking down the street and they'll be

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aren't you that county's guy?

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Hey, how do I get to pay higher property taxes?

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Yeah, exactly.

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Yeah, you know, my taxes aren't high enough.

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I just really think I should be paying more.

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Well, that's not true.

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And but it is something that you and I need to talk about

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because we just had a meeting today with a broad coalition

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that we've been working with for a while.

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And we've been working on this issue for many years.

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And that's the one percent property tax growth limit

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for both cities and counties and other taxing districts

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here in Washington state.

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What are we trying to do?

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You know, we being both the city's association and the county's association

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have been trying to increase that growth limit from one percent

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up to just a modest three percent for 20 years or more.

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Now feels that long, doesn't it?

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It is. We have been saying it's been a generation,

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which makes me feel particularly old since I remember when it was six percent.

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You don't look old at all.

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Thank you, Paul. You're welcome.

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But it's been a challenge for 20 years or better.

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And when we talk to our cities and I know it's true for counties as well,

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they're saying there's a structural deficit and we can't keep going

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the way we've been going.

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We are we are literally doing much more with much less.

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And something's got to change.

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So so let's talk about how we got here first, because I want to dive into that.

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And then I want to talk about why it's important that we try to

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what you characterize as fix this, because I think a lot of people

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would not characterize this this, meaning the limit being broken

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versus kind of what you're talking about, which was

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I think you described it as a structural deficit.

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So I want to get into that.

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But how did we get here to begin with? Because cities and counties

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didn't used to have these limitations, right?

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We used to have authority, I think, up to to grow the property tax rate

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up to six percent annually not that long ago.

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So how did we end up in this situation?

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Yeah, you know, I think we did have that that growth limit up to six percent.

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And that was up until the late 90s.

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It was what 2001, I want to say, when

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there was a voter initiative and put forward to to cap that growth rate.

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And obviously, voters don't like paying property tax.

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So that's pretty popular to to be told that you could really reduce that growth rate.

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One percent seemed to be picked arbitrarily just to make sure

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that it was a really significant limit. Just a low number.

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Yeah, just a low number.

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And, you know, after I think, gosh, I want to say like five, six years of court battles.

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The initiative was actually overturned as unconstitutional.

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But then the legislature came back and in a one day special session

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enacted it. And so here we are.

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So even though the courts said that the initiative from 2001, which, by the way,

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was initiative 747 for you history buffs out there who want to look up the history

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of initiatives, which I know you're listening after because it was it was in 2007.

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So it's about six years of court battles.

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They the Supreme Court finally ruled it was unconstitutional.

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But the legislature then came back and put it back in place.

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Why did they do that?

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You know, gosh, I can actually remember some of it.

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I wasn't in this role then, but I was working for a city at the time.

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And, you know, I think it was a couple of things.

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They were certainly feeling like, well, this must have been the will of the voters.

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And there was also some concern about bank capacity.

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And if you didn't put it into place again, that that six percent that we had the

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ability to increase by had been would have been banked for those seven years.

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Oh, seven years. That's 42 percent.

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That is fast, Paul. You are good with math in your head.

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That is not my skill set.

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Back in the fourth grade, we had these flashcards and multiplication tables.

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I think we called them times tables back then.

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Oh, yeah.

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But I'm much more sophisticated now as an adult.

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I call them multiplication tables.

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Well, yeah, that's impressive.

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You still did it in your head.

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So, yeah, there was a concern that, well, we would go crazy and just increase things by 42 percent.

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Just jacking way up.

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Yeah.

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And so they needed to act on that emergency basis with a special session.

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So that one percent limitation was put back in place by the legislature.

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That would have been under the Gregoire administration.

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That was so long ago that I wasn't even in county government.

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And I've been in county government for nearly 20 years.

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I was still in private business then.

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That was a big change, right?

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From six percent to one percent.

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Now, that's not the only thing that we can increase property taxes by annually, though, right?

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There's also another factor called, isn't it called new construction that we also add to our property tax rolls?

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Yeah, I guess super confusing, I know.

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But when there's new construction, you apply the rate to that new construction in its first year.

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Okay.

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And so you get the benefit of the new construction and then it rolls into the overall assessed value for future calculations.

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Now, when we talk about one percent growth, is it one percent growth on the value of the property in a district?

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So, for instance, say, you know, the assessor goes out and let's make it really simple.

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They say that all of the property in Thurston County is worth, you know, combined a thousand dollars.

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Is it a one percent growth in that property valuation or is it a one percent growth rate annually in the amount of revenue that they collect?

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It's so confusing, but you're right.

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It's not on the growth of the assessed value.

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It's not on an individual's tax bill.

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It's a one percent cap on the growth of the revenue that a city or a county or another special purpose district can collect.

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So it's the entire.

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So if let's use that same example.

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I'm I've got a thousand dollars worth of property tax value in my district.

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Maybe there's a big project and it raises that tax value by 10 percent.

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So now I've got a thousand one hundred dollars in total tax value.

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And if I tax that at, say, five percent, I'm going to get 50 bucks a year off of that.

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Right. Well, actually, I'm going to get fifty five bucks a year or so off of that eleven hundred dollars in total taxes.

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But that one percent gets applied to that.

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It gets applied to the fifty five dollars, not the eleven hundred.

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Correct. And as an individual taxpayer, should I expect that my tax bill is only going to be limited to a growth rate of one percent every year?

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Or is that not part of this discussion?

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I know the individual tax bill.

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So many things go into that.

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What is your assessed value?

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What's your neighbor's assessed value?

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How did that change?

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What is what else got added to the assessor assessed roles, the assessed value in the whole jurisdiction?

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So a lot goes into what an individual pays.

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The one percent cap is just on the amount of revenue that the city or the county can collect.

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OK, OK. Sounds super confusing.

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It is. And I know people get really confused about it, which makes it really hard to kind of talk about changing property tax codes or property tax growth rates.

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And people kind of understanding what the impacts are.

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Right. And I think that's why we run into some of these well resistance essentially, you know, about even kind of addressing these issues or even talking about them in the legislature,

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which is probably why the cities and the counties of board and working on this issue for 20 years.

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Yeah. You know, we've taken kind of a myth busting approach to some of our communications this year.

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One of the things that gets talked about and it's a myth is that going from a one percent cap to a three percent cap triples somebody's property taxes.

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It does not because that's not how it's calculated.

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So if my property tax bill is one hundred dollars this year under one percent cap, it'd be one hundred and one dollars next year.

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Well, sure, because we just established it's limited to the one percent growth rate is limited to the amount that the jurisdiction can collect.

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Yeah. So if you went from one to from a one percent growth rate to a three percent growth rate, there's absolutely no possibility with triple.

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Yeah, you're not going from one hundred dollars to three hundred dollars.

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You're going from one hundred dollars to one hundred and three dollars versus one hundred and one dollars.

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So it's a two dollar break.

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Okay. That's I think that's helpful context to put it in.

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Now, you talked a minute ago about the reason that cities and counties were interested in addressing this issue was to attack a structural deficit.

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Can you explain what you meant by that?

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Yeah, we like to use that term because if you're one of your major sources of revenue and for cities, property tax makes up about 20,

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22 percent a quarter, say, of the typical revenue a city collects.

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And I know that's different for counties.

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Yeah, for counties, it's about half.

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Yeah, it's actually a little over 50 percent.

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It's our major source of revenue.

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Yeah. And cities, as we've talked before, we've got a few more revenue tools.

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So it's still a huge which we're super jealous of.

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I know. Can we borrow some of those revenue tools every day?

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Can we just borrow them for six months a year, like right around Christmas time and, you know, things like that?

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Or maybe April and October.

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How's that sound? Yeah, we'll talk about that more.

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You'll think about it. I have a feeling you're not going to think very hard about that.

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Maybe not. I forgot the question now.

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That's a trick I play. All of the people that I interviewed.

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Structural deficit. I'm back.

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So if your revenues, though, and major sources of revenues are capped at one percent growth

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and your expenses are not capped and are going up by at least inflation,

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but probably even higher than that because the things cities and counties buy

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typically have a higher inflation rate than the typical household basket of goods.

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So you've got a structural deficit.

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Although eggs have been going crazy lately.

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Well, that's true. Almost just like concrete.

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Yeah. Well, yeah, that's the kind of thing that you're talking about concrete asphalt,

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you know, great big equipment to do different projects and get work done.

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Healthcare benefits for our staff are.

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And insurance has been going through the roof lately, too, right?

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Double-digit increases year over year.

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Yeah. So our basket of goods in the city and county government world are increasing significantly more than one percent.

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So you do that for 20 plus years. You've got a structural deficit.

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You know, that's really interesting. And that is a really good description of the structural deficit.

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I mean, what you're basically saying is our expenses are just going up at higher rates

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than we're able to keep up with as far as our revenue when you're especially for counties and for cities.

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You said it was like 22 percent revenue for counties.

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It's more than 50 percent. If that if those are some of your biggest sources of revenue

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and you're limited in that growth rate to one percent, but your expenses are going up even even two percent

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a year and we know it's been higher than that, especially recently with just pure inflation.

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At some point, you're going to have a major crash because that revenue line versus your expense line,

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the gap is getting bigger and bigger and it's not in a good way.

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Right. The expenses are growing much faster than the revenues.

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They are. And I think when I talk to our city officials, I'm always so impressed.

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And I'm guessing it's the same with your county elected folks.

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They do an amazing job of band aiding over that structural deficit.

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And what choice do they have?

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They don't have any choice and they've made it work and they've been making it work for 20 years

231
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and they have been doing more with less, not keeping up, but somehow keeping it together.

232
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But that is it's frame.

233
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It's coming apart. Right.

234
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There is this tipping point and it feels like we are really reaching that tipping point.

235
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Well, I'd like to dive into that because that's really interesting.

236
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But, you know, you kind of said something that struck me.

237
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But before we get there, just a few statistical things that I did a little research on.

238
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Washington State as a state, when you compare tax burden to income, has been falling significantly,

239
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actually, over the years, including since this particular initiative was passed

240
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and then reinstated by the legislature.

241
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So as a state, you know, people complain about taxes, which I don't blame them.

242
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I complain about taxes, too.

243
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I don't blame them for paying taxes either.

244
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But the data shows, the math shows that as a percentage of personal income,

245
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we actually have been decreasing year over year over year.

246
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We're like 31st in the nation.

247
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Oh, that's very interesting because that's not what you hear in the rhetoric.

248
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No, it certainly isn't.

249
00:14:58,380 --> 00:15:01,380
But in some ways, that's something to be proud of, too, right?

250
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I mean, the more personal income people have, the more they have the ability to make decisions with their money,

251
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which is a little ironic that that's actually what's happening in, you know,

252
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a state that is as liberal and as blue as Washington State is.

253
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You would think that just kind of when you look at the hard definition of what these different,

254
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you know, conservative versus liberal ideologies are,

255
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you'd think we would have actually a higher tax burden in Washington.

256
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But it's but that's not the case, which is interesting.

257
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Also, as we've done some research here with the counties and we've noticed that since initiative 747

258
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and then the reenactment by the legislature of the 1% limit has been in place,

259
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the rate at which people pay for their property taxes has also been falling precipitously year over year over year.

260
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Yeah, that rate is a part of that confusion, too, I think, over our tax system in this state

261
00:15:51,780 --> 00:15:56,780
or how the property tax works, because I always like to think of it as a teeter totter.

262
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If assessed value is going up, the rate is going down because you've got to keep that balance of the cap on growth of the revenue.

263
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Right. The property tax values are just going up at a much higher pace than the 1% growth keeps up with.

264
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And so every year that actually goes down.

265
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So people as a percentage of value not only are that is their personal income higher than it used to be

266
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and what they retain in in tax burden is is better than it has been and it gets better every single year.

267
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But what they pay as a percentage of property value continues to drop every single year,

268
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even though we still are allowed to grow at a 1% rate, which again just shows you that what you're saying about the structural deficit is is correct.

269
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So in that context, why shouldn't we just believe it when people say, well, Candace, that was the point, right?

270
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You said that cities have made it work.

271
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You I certainly said the same thing about counties.

272
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We've made it work.

273
00:16:58,980 --> 00:17:01,880
You know, how do you respond to well, exactly.

274
00:17:01,880 --> 00:17:04,180
That's exactly what we wanted as taxpayers.

275
00:17:04,180 --> 00:17:05,780
That's exactly the point.

276
00:17:05,780 --> 00:17:09,980
And why should we do it any different now that you've proven that you can get the job done with less?

277
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You know, it's a good question.

278
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It's a valid question.

279
00:17:12,180 --> 00:17:19,580
But I think what we know and certainly what our city elected officials know is they don't have community members coming to them asking them to do less.

280
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They're being asked to do more.

281
00:17:22,080 --> 00:17:28,680
You know, the the cost of maintaining streets is going up and that's just to maintain them, not even improve them.

282
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Same with providing amenities like parks.

283
00:17:31,780 --> 00:17:37,280
And then I think both cities and counties are being asked to do more in the area of human services for sure.

284
00:17:37,280 --> 00:17:42,380
And particularly counties, but but even more so cities than we ever have in the past.

285
00:17:42,380 --> 00:17:49,680
Right. And then affordable housing is also being more and more pushed to local governments to take responsibility there.

286
00:17:49,680 --> 00:17:51,980
So we're doing different kinds of things.

287
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We're being asked by our community members to do different kinds of things, more of those kinds of things.

288
00:17:56,780 --> 00:18:02,180
And they're not able to keep it all together and patch it all together with the revenue that they've got.

289
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So the community keeps, you know, and rightfully so, they've got expectations about the level of service that they want.

290
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The thing that comes with that is having to find a way to pay for it.

291
00:18:11,380 --> 00:18:18,680
Well, with a growing population and more people located in the same area, your problems just get bigger exponentially, right?

292
00:18:18,680 --> 00:18:26,280
They just flat do. You've got to have better transportation systems to manage heavier loads, which costs more money.

293
00:18:26,280 --> 00:18:30,280
People want transit. That costs money to transit doesn't pay for itself.

294
00:18:30,280 --> 00:18:34,180
I don't think in any instance we've ever seen transit pay for itself.

295
00:18:34,180 --> 00:18:39,780
You know, if you want a city pool or you want, you know, some like you said, nice parks, those things cost money.

296
00:18:39,780 --> 00:18:43,780
And for counties and for cities, you know, policing is not the same as it used to be.

297
00:18:43,780 --> 00:18:47,780
It's very different and a lot more cost a lot more costly than it ever was.

298
00:18:47,780 --> 00:18:51,780
And I think what's really interesting that a lot of people also don't think about is, you know,

299
00:18:51,780 --> 00:19:02,280
a lot of the infrastructure that we rely on today for government services and even for transportation was built in the 1930s, the 1940s, the 1950s.

300
00:19:02,280 --> 00:19:06,580
And that stuff's wearing out. Yeah. I mean, you look at the state of bridges. Exactly.

301
00:19:06,580 --> 00:19:13,780
Across our state. It's not great. And those are really expensive things to upgrade, to fix, to replace. Right.

302
00:19:13,780 --> 00:19:19,980
And we're not doing a good job of always being able to maintain things because of that structural deficit.

303
00:19:19,980 --> 00:19:24,680
So then you've got to talk about replacement costs. Yeah. Cities and counties.

304
00:19:24,680 --> 00:19:28,180
Well, I shouldn't speak for cities since you're here, but I'll try anyways. No, I'm just kidding.

305
00:19:28,180 --> 00:19:34,380
But I know counties have made a lot of cutbacks in maintenance over the years because that's what you have to do when you don't have the revenue.

306
00:19:34,380 --> 00:19:37,180
Yeah. The first thing you do is defer maintenance. Right. Right.

307
00:19:37,180 --> 00:19:43,180
Well, either or you try to do it more efficiently. And there have been tools that have been created to do things a lot more efficiently.

308
00:19:43,180 --> 00:19:50,380
I mean, just the advent of technology has made administrative work a lot easier and a lot faster.

309
00:19:50,380 --> 00:19:53,480
You know, communication with constituents a lot easier and a lot faster.

310
00:19:53,480 --> 00:19:58,080
We're not we're not putting mail on the back of wagons or horses anymore. Right.

311
00:19:58,080 --> 00:20:01,980
We could just zip it via email. So a lot of that has changed.

312
00:20:01,980 --> 00:20:05,980
But at the same time, we're just not keeping up with the costs.

313
00:20:05,980 --> 00:20:10,980
The pace is just a bit of it's almost kind of a breakneck speed in some ways.

314
00:20:10,980 --> 00:20:14,080
And that structural deficit just keeps getting worse and worse and worse.

315
00:20:14,080 --> 00:20:18,580
How are things going with the legislature when when you're having this conversation?

316
00:20:18,580 --> 00:20:24,780
Yeah, I think it's it's going better than it has maybe, you know,

317
00:20:24,780 --> 00:20:29,980
even 10 years ago when we were trying to have this conversation and counties were really leading on that conversation.

318
00:20:29,980 --> 00:20:36,180
Then there's I believe a greater understanding of how that structural deficit is having this impact.

319
00:20:36,180 --> 00:20:44,680
And of course, the state has the same challenge. You know, they lifted the cap for themselves to respond to the McCleary decision.

320
00:20:44,680 --> 00:20:48,080
Yeah, that was what six or seven years ago. Yeah.

321
00:20:48,080 --> 00:20:50,880
Was it longer than that? I don't remember. I don't remember either.

322
00:20:50,880 --> 00:20:53,780
It all blends together. Like it was definitely pre pandemic.

323
00:20:53,780 --> 00:20:58,480
It was pre pandemic. Yeah. So it was before 2019.

324
00:20:58,480 --> 00:21:00,580
But so they you know, they had the McCleary decision.

325
00:21:00,580 --> 00:21:09,680
They had to find a way to fund education. And so they lifted that cap for the state's share of the property tax.

326
00:21:09,680 --> 00:21:11,880
That cap is now back in place for the state.

327
00:21:11,880 --> 00:21:17,380
And again, we're hearing about the struggles they have in funding basic education, something we all value.

328
00:21:17,380 --> 00:21:23,780
Well, not just basic education, but I mean, a 12 billion dollar deficit projected over the next budget cycle. Right.

329
00:21:23,780 --> 00:21:24,980
Yeah, it's significant.

330
00:21:24,980 --> 00:21:31,380
So I think it just points to the fact that this one percent cap was always going to create a problem for government,

331
00:21:31,380 --> 00:21:37,680
no matter whether or not it's, you know, the smallest city or this, you know, a big county or the state.

332
00:21:37,680 --> 00:21:41,480
We've all got the same problem. And over the last year or two,

333
00:21:41,480 --> 00:21:49,680
I feel like it's finally really resonating with the legislature and certain legislators in particular that we've got we've got to take some action.

334
00:21:49,680 --> 00:21:56,280
I also think the messaging about trusting city elected officials, county elected officials to make good decisions.

335
00:21:56,280 --> 00:22:00,280
So what we're asking is not to increase the property tax.

336
00:22:00,280 --> 00:22:07,680
We're asking them to give cities and counties and other special purpose districts that local flexibility to do it if it's right for them.

337
00:22:07,680 --> 00:22:15,980
Right. And trust those elected officials to be accountable to their citizens, their their residents to make those decisions.

338
00:22:15,980 --> 00:22:22,180
You know, it's interesting the points you just made when you think about how this could be affecting the state.

339
00:22:22,180 --> 00:22:27,280
It's never going to affect them at the same level that it's affecting cities, the people you work for.

340
00:22:27,280 --> 00:22:31,980
It's never going to affect them at the same level that it affects counties, the folks that I work for.

341
00:22:31,980 --> 00:22:34,980
But it still is an important piece. And they're starting to feel that pressure.

342
00:22:34,980 --> 00:22:40,280
But it's only 10 percent of their revenue, 22 percent of yours, over 50 percent of ours.

343
00:22:40,280 --> 00:22:43,980
Obviously, we have a little higher sense of urgency than they do.

344
00:22:43,980 --> 00:22:48,980
But it's interesting that they're starting to now feel the pinch so many years down the road.

345
00:22:48,980 --> 00:22:57,180
And hopefully that's that's, you know, hopefully that's driving them to listen a little bit more to some of the some of the cries for help, I guess,

346
00:22:57,180 --> 00:23:01,380
for lack of a better term, that they're hearing from some of their city and county partners.

347
00:23:01,380 --> 00:23:04,480
I had a conversation the other day with a legislator.

348
00:23:04,480 --> 00:23:08,880
You talk about the trust issue and I was talking about this very issue with them.

349
00:23:08,880 --> 00:23:18,280
And, you know, they just said, you know, look, we we just don't think, you know, you guys can be, you know, we we if we're going to give you this authority,

350
00:23:18,280 --> 00:23:21,480
we want to tell you how to spend it. We want to make sure you're spending it right.

351
00:23:21,480 --> 00:23:27,880
And I said, you know, I appreciate that X, Y, Z legislator, because I'm not going to use any any any names.

352
00:23:27,880 --> 00:23:38,180
But, you know, you trust the counties to run the entire court system for the state of Washington and the cities and the counties.

353
00:23:38,180 --> 00:23:46,080
Basically, we implement and enforce every law that you pass locally and we do it pretty well.

354
00:23:46,080 --> 00:23:48,280
I think we can figure this part out, don't you think?

355
00:23:48,280 --> 00:23:56,180
And how did that go? Well, they gave me a strange look like they actually did give me a look like, huh, I don't think I ever thought of it that way before.

356
00:23:56,180 --> 00:24:06,180
Yeah, I was testifying yesterday on a different kind of local option bill and mention this accountability issue and and and used a line something like,

357
00:24:06,180 --> 00:24:16,580
you know, our our city elected officials are accountable to their residents at the ballot box and at the grocery store and in the church pew and on the soccer field and at the gym.

358
00:24:16,580 --> 00:24:24,080
Because trust me, I've been that elected official and I've been at the gym and they expect you to stop what you're doing and talk.

359
00:24:24,080 --> 00:24:28,580
Absolutely. And so they're going to they're going to hear about it.

360
00:24:28,580 --> 00:24:40,380
And that is where we want the decision to be made at the local level where somebody can have direct input in to what their city council member, their county council members thinking.

361
00:24:40,380 --> 00:24:44,980
So, yeah, you can trust those elected officials to make these decisions.

362
00:24:44,980 --> 00:24:48,580
They're making pretty big and complicated decisions already on a regular basis.

363
00:24:48,580 --> 00:24:57,580
Yeah. You know, the other big issue or one of there's a lot of big issues this year, but another really big issue that's taken up a lot of air time in the legislature is public safety this year.

364
00:24:57,580 --> 00:24:59,880
Right. And it has been for a few years.

365
00:24:59,880 --> 00:25:01,980
There's been a lot of controversial things over the years.

366
00:25:01,980 --> 00:25:04,180
Last year, we had the initiatives around police pursuits.

367
00:25:04,180 --> 00:25:11,080
Right. And other things and they've been talking about policing and, you know, both for juveniles and adults.

368
00:25:11,080 --> 00:25:21,280
And we've been talking about, you know, all of that related to substance issues and behavioral health issues and homelessness issues because it's all encompassing.

369
00:25:21,280 --> 00:25:34,980
And we've been talking about that for a while, but there does seem to be a real desire by the legislature this year, some of it being driven by Governor Ferguson's demand for one hundred million dollars for new law enforcement across the board.

370
00:25:34,980 --> 00:25:42,180
But I think other legislators are hearing it, too, that, you know, communities want more law enforcement.

371
00:25:42,180 --> 00:25:45,080
They want more investment in public safety.

372
00:25:45,080 --> 00:26:00,180
And I think it's ironic that we're talking about funding for local governments and whether or not the state will support funding improvements for local governments, because public safety is really what local governments do for the most part.

373
00:26:00,180 --> 00:26:03,480
Don't you agree? It is a big part of the city budget.

374
00:26:03,480 --> 00:26:06,580
And I know it's a big part of counties budgets for cities.

375
00:26:06,580 --> 00:26:12,980
You know, on average, it's about 40 percent of our budget between public safety, criminal justice expenses.

376
00:26:12,980 --> 00:26:15,280
Yeah, for us, it's about 70 to 80 percent.

377
00:26:15,280 --> 00:26:21,580
Yeah, with the district and Superior Court systems and public defenders and everything else that goes and the jails.

378
00:26:21,580 --> 00:26:35,180
It adds up. But I think legislators, particularly those who are campaigning this past campaign season and our city council members, your folks, they're hearing about their residents concern about public safety.

379
00:26:35,180 --> 00:26:45,980
And for cities, we identified that as a priority going into this legislative session that we needed more help from the state to fund public safety needs.

380
00:26:45,980 --> 00:27:00,480
And that's everything from new officers to more public defenders and prosecutors in jail, but also diversion programs and therapeutic courts and kind of and behavioral health corresponders.

381
00:27:00,480 --> 00:27:06,280
So that public safety category has sort of a whole spectrum of things in it.

382
00:27:06,280 --> 00:27:12,880
So we've been really hoping to see this the state, the legislature provide more support for public safety.

383
00:27:12,880 --> 00:27:19,480
Well, yeah, I think the connection that needs to be made here is if they want to do that, right, it's going to be delivered at the local level.

384
00:27:19,480 --> 00:27:23,880
And if you want more investment in public safety, it's going to come from cities and counties.

385
00:27:23,880 --> 00:27:27,680
And so you need to provide cities and counties with more resources, period.

386
00:27:27,680 --> 00:27:34,580
That's the only way it's going to happen unless the state suddenly is going to start paying for these things, which they traditionally haven't ever done.

387
00:27:34,580 --> 00:27:42,980
I mean, they do have their you know, they've got the state patrol and obviously they've got the state courts through the Court of Appeals and and and the Supreme Court.

388
00:27:42,980 --> 00:27:48,880
And they do provide funding for prosecutors and for judges at the county, at the county level, not at the city.

389
00:27:48,880 --> 00:27:51,580
No, that's true. But they only provide for half of that funding.

390
00:27:51,580 --> 00:28:00,680
We have to pick up the other half. So but I guess my point is, is those services that they want and that their constituents are telling them they want are delivered by us.

391
00:28:00,680 --> 00:28:03,380
And we can't do it unless we have more resources.

392
00:28:03,380 --> 00:28:10,280
Yeah, I think we're really asking the legislature this year to be a partner and invest more local tools are great.

393
00:28:10,280 --> 00:28:14,280
But we'd also like to see some other direct investment.

394
00:28:14,280 --> 00:28:17,180
What that ends up looking like. It's hard to say at this point.

395
00:28:17,180 --> 00:28:23,280
We've talked about the importance of ongoing sustainable funding and grants are great.

396
00:28:23,280 --> 00:28:31,580
We all like grant funding, but particularly when you're investing in public safety and ongoing service with staff that you're hiring,

397
00:28:31,580 --> 00:28:38,480
whether that's a law enforcement officer, a public defender, you've got to know how you're going to pay for them, not just this year or next year, but three and four years from now.

398
00:28:38,480 --> 00:28:46,180
Right. You need ongoing revenue, but it can't it can't be an ongoing static revenue because the expenses related to that personnel

399
00:28:46,180 --> 00:28:48,580
and providing that service are always going to go up.

400
00:28:48,580 --> 00:28:54,280
You know, it's interesting that that, you know, we've got a law in place in Washington that, you know,

401
00:28:54,280 --> 00:28:58,480
keeps property taxes at the local level at one percent a year.

402
00:28:58,480 --> 00:29:06,780
Right. For a growth rate. If I had a job where I was only getting a one percent per year growth rate in my salary, I'd go probably find a new job.

403
00:29:06,780 --> 00:29:14,180
Yeah. You know, it's one of the talking points that I've used with the legislature is police officer salaries have gone up about 20 percent in the last five years.

404
00:29:14,180 --> 00:29:16,280
I was going to say just in the last couple of years. Yeah.

405
00:29:16,280 --> 00:29:23,080
And I mean, we've got to pay those first responders what it takes to keep them on the street.

406
00:29:23,080 --> 00:29:29,480
So not begrudging them that. But that's the reality is that cost has been going up and it's been going up pretty significantly.

407
00:29:29,480 --> 00:29:38,980
Absolutely. And every other represented group that works for city and county, you know, city and county governments, they know what their what their personal income costs.

408
00:29:38,980 --> 00:29:43,580
They know what the price of eggs are, you know, is doing. They know what the price of gasoline is doing.

409
00:29:43,580 --> 00:29:46,280
They know what the economy is doing and what the inflation rates are.

410
00:29:46,280 --> 00:29:49,080
And when they come to the bargaining table, that's the data they use.

411
00:29:49,080 --> 00:29:52,280
They don't say, oh, city, county, we understand your revenue.

412
00:29:52,280 --> 00:29:53,480
You're capped at one percent.

413
00:29:53,480 --> 00:29:55,180
Capped at one percent. Right.

414
00:29:55,180 --> 00:29:57,280
No, they say, look, this is what we deserve.

415
00:29:57,280 --> 00:30:02,680
This is what we need to survive. This is what we need to just maintain a level or grow a little bit.

416
00:30:02,680 --> 00:30:05,580
And you can't begrudge them for doing that.

417
00:30:05,580 --> 00:30:07,980
But at the same time, what do we get the resources to keep up?

418
00:30:07,980 --> 00:30:16,980
Yeah. So this has been great and we're not going to do this all day because, you know, people get bored when they talk about taxes.

419
00:30:16,980 --> 00:30:22,980
Who wants to talk about taxes all day? Besides you and me, of course, we could probably do this for a few more hours.

420
00:30:22,980 --> 00:30:27,980
But let's bottom line this, because I know you've done some research on this and you shared it with legislators.

421
00:30:27,980 --> 00:30:35,780
If we went from a one percent property tax increase to a three percent property tax increase on an annual basis, what does that mean to the average homeowner?

422
00:30:35,780 --> 00:30:38,680
You know, we did this math for just cities.

423
00:30:38,680 --> 00:30:42,080
So I want to make sure that there's no confusion there.

424
00:30:42,080 --> 00:30:46,680
It's just like the city share of a property tax for the average homeowner.

425
00:30:46,680 --> 00:30:51,280
It's it's about less than twenty dollars a year difference.

426
00:30:51,280 --> 00:30:54,780
You know, obviously lots of caveats there. You add it onto your house.

427
00:30:54,780 --> 00:30:56,780
Maybe that's not the case.

428
00:30:56,780 --> 00:31:00,980
If you're in an area where the average home price is a million dollars.

429
00:31:00,980 --> 00:31:02,780
Right. Maybe it's a little bit different.

430
00:31:02,780 --> 00:31:06,980
But again, it's in that kind of scale of twenty dollars a year.

431
00:31:06,980 --> 00:31:09,980
So it's it's not a tripling.

432
00:31:09,980 --> 00:31:13,380
It actually may not be as dramatic an increase as it sounds like.

433
00:31:13,380 --> 00:31:18,880
So we did the same research recently and we looked at both the county road fund and the county general fund.

434
00:31:18,880 --> 00:31:27,880
So for folks who may not know the two besides the state schools, which is the largest portion, individual portion of property taxes that you pay,

435
00:31:27,880 --> 00:31:33,980
you either pay into the county road fund and general fund if you're in an unincorporated area or you pay into the city's

436
00:31:33,980 --> 00:31:40,680
basically general fund and the county general fund if you're in an incorporated area, meaning you're inside of a city.

437
00:31:40,680 --> 00:31:44,480
So we just looked at the general fund and the road fund for counties.

438
00:31:44,480 --> 00:31:49,380
So for unincorporated residents and we found similar results, it was in one of our counties,

439
00:31:49,380 --> 00:31:57,780
it was barely over ten dollars is what someone would pay combined for both of those funds up to a maximum of thirty

440
00:31:57,780 --> 00:32:01,480
eight dollars in King County, the single largest and most expensive county in Washington.

441
00:32:01,480 --> 00:32:05,480
Right. So it was anywhere between ten dollars and thirty eight dollars.

442
00:32:05,480 --> 00:32:10,380
And many of them were right in that and right under twenty dollars annually.

443
00:32:10,380 --> 00:32:14,880
That would be this difference right from a one percent to a three percent.

444
00:32:14,880 --> 00:32:23,080
So it's nowhere near the tripling that sometimes you hear in the rhetoric when people are opposed to making a change like this.

445
00:32:23,080 --> 00:32:26,880
Yeah. And I understand we were joking about this a little bit earlier.

446
00:32:26,880 --> 00:32:29,580
People don't want to don't like to pay taxes. I don't want to pay taxes.

447
00:32:29,580 --> 00:32:32,780
No. And it's I hate taxes.

448
00:32:32,780 --> 00:32:38,880
It's true. We just are talking about, you know, paying a fair share to get the services that everybody wants.

449
00:32:38,880 --> 00:32:42,580
And I think we're really empathetic to folks that are struggling.

450
00:32:42,580 --> 00:32:45,380
Price of eggs keeps coming up.

451
00:32:45,380 --> 00:32:48,180
Have you seen the price? I'm telling you.

452
00:32:48,180 --> 00:32:50,580
So I have to quick little story.

453
00:32:50,580 --> 00:32:54,280
I went to the grocery store and I don't buy eggs very often.

454
00:32:54,280 --> 00:32:58,780
I will be I will freely admit my wife buys most of the eggs at our house.

455
00:32:58,780 --> 00:33:05,580
But I had gone to Ellensburg for the weekend and I decided to stop at the store and get some eggs.

456
00:33:05,580 --> 00:33:14,080
And I was shocked when I went to the cooler and I saw a dozen eggs at seven ninety nine.

457
00:33:14,080 --> 00:33:21,680
And I almost I almost put them back. I thought I am not I don't make enough money to pay seven ninety nine for a dozen eggs.

458
00:33:21,680 --> 00:33:24,780
We're I we're definitely having less eggs in my house as well.

459
00:33:24,780 --> 00:33:29,580
But I asked for an armed escort because it was dark outside after I bought the eggs.

460
00:33:29,580 --> 00:33:34,980
I thought these are so valuable. You must have some big burly guy who's going to escort me to my car.

461
00:33:34,980 --> 00:33:45,380
But I think, you know, we are empathetic and so are the county council members and city council members making these decisions about the impacts on the taxpayers.

462
00:33:45,380 --> 00:33:49,480
So they're going to take that into account when they're making these decisions.

463
00:33:49,480 --> 00:33:52,680
We're just asking for the ability to let them make the decision.

464
00:33:52,680 --> 00:33:56,180
Yeah, I'm with you. I think that's the right thing to do.

465
00:33:56,180 --> 00:33:59,180
They're the ones who have to answer to their constituents.

466
00:33:59,180 --> 00:34:05,080
And like we said, literally for these local elected officials, it's in the line at the grocery store with those eggs.

467
00:34:05,080 --> 00:34:08,480
Yeah, with those eggs. It's in the church pew.

468
00:34:08,480 --> 00:34:10,480
It's on the soccer field. It's in the gym.

469
00:34:10,480 --> 00:34:13,580
It's, you know, it's on the sidewalk as you're walking down the street.

470
00:34:13,580 --> 00:34:18,580
People know who you are and they're you know, if they have a strong opinion on it, they're going to definitely let you know.

471
00:34:18,580 --> 00:34:20,780
I don't want to pay taxes either. I hate taxes.

472
00:34:20,780 --> 00:34:26,280
I hate taxes. April 15th is like the worst day of the year for me.

473
00:34:26,280 --> 00:34:30,880
But I do want emergency responders to come if I need them.

474
00:34:30,880 --> 00:34:33,180
Right. I do want safe roads.

475
00:34:33,180 --> 00:34:37,380
I don't want the bridge to fall when I'm crossing the river.

476
00:34:37,380 --> 00:34:41,180
Right. I want to make sure that my kids have good schools.

477
00:34:41,180 --> 00:34:45,880
Okay, my kids are out of school, but I wanted them to make I wanted to make sure they had good schools.

478
00:34:45,880 --> 00:34:50,680
And I certainly want my grandkids whenever they get here to have good schools as well.

479
00:34:50,680 --> 00:34:58,180
So, I mean, I get it. I mean, I totally empathize with people, but you can't have one without, you know, some reasonableness on the other.

480
00:34:58,180 --> 00:35:04,080
This isn't going to get easier. No, the longer you wait to make these changes that deficit is going to be harder.

481
00:35:04,080 --> 00:35:07,180
Yeah. Yeah. Well, Candace, it's been great talking to you.

482
00:35:07,180 --> 00:35:14,580
It's probably a good place to end it before we geek out too much and nerd out too much on property taxes or eggs.

483
00:35:14,580 --> 00:35:16,880
Yeah.

484
00:35:16,880 --> 00:35:20,780
Paul, thanks for having me. It's been really nice to be on the County's podcast.

485
00:35:20,780 --> 00:35:24,480
Well, yeah, I hope you'll come back. And when you do, maybe I'll make you some eggs.

486
00:35:24,480 --> 00:35:26,580
You know, maybe it'll be a luxury meal at that point.

487
00:35:26,580 --> 00:35:29,280
I hate pretty fancy.

488
00:35:29,280 --> 00:35:32,680
All right. Take care till then.

489
00:35:32,680 --> 00:35:34,780
Thanks for tuning in to County Connection.

490
00:35:34,780 --> 00:35:41,580
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491
00:35:41,580 --> 00:35:47,580
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492
00:35:47,580 --> 00:36:15,580
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