What's in your wallet?

Pocketbook issues slated for 2008 session

Today Washington families are experiencing economic stress on many fronts. Property taxes are on the rise for many middle class homeowners. Adjustable Rate Mortgages are resetting, doubling and even tripling mortgage payments, and in too many cases leading to foreclosures. And health care costs are skyrocketing.

This week, we will be addressing the issue of property taxes during a one-day special session. By continuing to restrict property tax growth to 1 percent per year, we can slow rising property tax rates for many taxpayers. By passing legislation that allows homeowners to defer payment on a portion of their property taxes, we can also help ensure that families aren’t taxed out of their homes.

The issue is urgently important to many middle-class homeowners, which is why we’re taking it up early. But it’s also just one part of the problem we face. The special session represents one step on a much longer journey to address the pocketbook issues affecting Washington families. Senate Democrats will pursue a broader, more substantive set of solutions during the 2008 legislative session.

Our other remedies for your ever-increasing property tax bill include proposals for:

Sen. Steve Hobbs, D-Lake Stevens, has proposed legislation to provide a one-time payment to property owners of an amount equal to 10 percent of property taxes levied on those households earning less than the median income state-wide. The median household income in 2007 is expected to be $60,000. It would be in effect for taxes levied in calendar year 2008, and the payment would be based on both state and local property taxes levied.

“Given our state’s tax structure, revenue sources to pay for government services is limited,” Hobbs said. “My proposal will provide short-term relief for working families, but we still need to look at long-term solutions.”

As envisioned by Sen. Mary Margaret Haugen, D-Camano Island, the first $50,000 of your home’s assessed value would be excluded from the calculation of your property tax. This homestead exemption would apply only to the state levy, so there would be no fiscal impact on local taxing districts.

"I recognize the need to reorganize our tax structure in a way that alleviates the burden to property owners," Haugen said. "I have pursued legislation to help remedy some of the problems with our current system, and I will continue to work to make property taxes as fair and equitable as I can."

In the first week of the 2008 session, Senate Democrats intend to pass legislation to allow the Insurance Commissioner to regulate and limit skyrocketing individual health insurance rates.

Senator Karen Keiser, D-Kent,  has looked at other states’ efforts to address problems in our health care system. One of these models is Healthy Wisconsin, which recently passed the Wisconsin State Senate.

Wisconsin's approach is of particular interest because an actuarial study found that the plan, if implemented, would save businesses and tax payers hundreds of millions per year. Savings were so substantial that the Wisconsin Senate included a rollback in property taxes in the package.

Keiser, who chairs the Senate Health & Long Term Care Committee, said that Washington's version might include:

• covering all state residents except those new to the state or those on a federal health care plan, such as Medicare or VA;
• requiring health plans or provider networks to bid on providing health care coverage in different counties around the state. The plan would also provide a fee-for-service option.
• creating large pools and competitive bids to generate enormous savings for most businesses and tax payers; and
• providing comprehensive coverage plus prevention and chronic care management services.

In addition, the 2008 Legislature will determine the administration and funding for the family leave bill approved in 2007 (Senate Bill 5659). This law allows qualified workers to take five weeks of paid leave, up to a maximum of $250 a week, for the birth or adoption of a child. The Family Leave Task Force will make recommendations to the Legislature before session starts.

Senate Democrats will also propose a housing security package to ban mortgage fraud, limit foreclosures and provide more affordable housing for more people.

We know that many families are struggling with the higher cost of living and greater uncertainty about where our economy is headed. This combination of rising costs and rising worry about the future has our full attention, and doing all we can to address it will be our top priority in 2008.