Washington Policy Watch

News and perspective on public policy issues affecting Washington's economy and quality of life, brought to you by the Economic Opportunity Institute.

No monsters in the Social Security closet

Froma Harrop’s Sunday column in the Seattle P-I is a breath of fresh air.

The simple fact that Social Security is solvent through 2041 is lost on many who would rather ring false alarm bells to drum up support for privatization schemes – but not Harrop, who writes:

If politicians want to agonize over retiree benefits, they have their hands full with Medicare. Paying for that program will be a bear of a problem. But they should keep their paws off Social Security.

But here’s the really surprising news:

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Filed under: retirement security, , ,

More schools making full-day kindergarten happen

This fall, the Washington Legislature compromised on a supplemental state budget that begins catching up to the needs of teachers and children in Washington State.

The budget continues a 10-year phase-in of full-day kindergarten, while giving teachers half a percent salary increase (on top of their annual cost-of-living-adjustment) to make up for pay increases suspended in years past.

Points to legislators for avoiding a potentially ugly “teachers vs. kids” scenario. Our teachers deserve more than that, and so do our kids. But 10 years is still too long time to wait for the proven benefits of full-day-kindergarten.

It looks like the Tacoma and Gig Harbor school districts feel the same way. They’ve chosen not to wait on the state, and instead to use a combination of state money and dollars diverted from other programs to pay for all-day kindergarten for every child.

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Filed under: early learning, education, , , , ,

Minimum wage drumbeat growing louder

While Washington State’s workers enjoy a strong minimum wage indexed to inflation, working families in other states aren’t so lucky. But there are many movements are afoot to change that.

In Texas (at Baylor University), supporters say: “As Christians, we must do better than simply meeting the “minimum” requirements established by the federal government.”

In Tennessee, faith leaders are undertaking a 24-hour period of fasting, prayer and action, vowing to press their city council to include workers at the city’s public utility in a living wage ordinance.

In Georgia, over 100 members of the clergy demonstrated public support for House Bill 845, which will increase the state minimum wage for workers who are exempt from the federal minimum wage.

A state commission in New Jersey is urging lawmakers to raise the minimum wage to $8.25 an hour, which would be the highest in the nation.

In Kansas, which sports the dubious distinction of the lowest minimum wage in the nation ($2.65 an hour), lawmakers brought a minimum wage increase to a vote in the legislature. Though supporters lost this year, it seems likely the measure will be back for another vote next year.

In all, thirteen U.S. states have a minimum wage that is either the same or lower than federal standards. Another five have no minimum wage law at all.

Filed under: minimum wage, work and family, , , ,

Fairer taxes for Washington State

With the underlying framework of Washington’s tax system essentially unchanged since the 1930′s, it’s not a surprise that our state’s tax base is shrinking relative to the state’s economy. The state’s General Fund relies on three major sources of revenue: sales, business (B&O), and property taxes.

These taxes concentrate on parts of the economy that were very important back in the day (like land and purchases of goods), while leaving key components of the modern economy untouched (such as investment wealth and purchases of services).

By failing to capture revenue from a changing economy, we are starving our state of needed investments in education, transportation, and health. And the myriad of tax breaks, exemptions and deferrals (that once in place, are rarely – if ever – reviewed again) is compounding the problem.

Simply raising existing rates to fund new services only makes these problems with the tax structure worse and fuels voter discontent. And the old, shopworn argument about government waste don’t hold water here either.

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Filed under: tax and budget, , , , ,

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