Smaller counties to boost economic development with Hatfield proposal

OLYMPIA – With small populations, Washington’s rural counties can’t count on the increase to their sales tax revenues like their larger counterparts. Sen. Brian Hatfield, D-Raymond, aims to change that disparity with a new proposal designed to give an economic boost to 12 of Washington’s smaller counties. His proposal, Senate Bill 6476, was heard Tuesday in the Senate Committee on Agriculture & Rural Economic Development.

Hatfield, who also serves as Vice-Chair of the committee, noted that SB 6476 is designed to help smaller counties generate enough investment capital to plan long term funding for large economic development projects. Currently rural counties may receive .09 percent of the state’s sales tax for financing public facilities for street improvements, bridges, and utility systems.

“For places like Wahkiakum County in my district, as well as a number of counties in Eastern Washington, this will be a shot in the arm for rural economic development,” said Hatfield.

For larger counties this money is adequate for bonding, but in smaller counties the amount received from the state may not be. Hatfield’s proposal establishes population centered formulas for increasing the percentage for 12 of Washington’s 39 counties, and would also extend the economic development revenue stream from 25 to 35 years.

Ferry County Commissioner Mike Blankenship testified at the hearing, noting that in his county the .09 percent brings in roughly $40,000 annually, which strictly limits the size of the projects in which his county can invest. Hatfield’s bill would aim to provide the smallest counties between $200,000 and $250,000 annually. Julie Murray from the Washington Association of Counties said that SB 6476 would put the focus on counties with the least amount of resources for economic development, but have the greatest need for it.

In a show of swift support, Committee Chair Sen. Marilyn Rasmussen, D-Eatonville, called for a vote on the bill just following Tuesday’s hearing, and the committee voted to recommend passage of SB 6476 and referred it to the Senate Committee on Ways and Means.

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