Latest news with #JoeFitzgibbon
Yahoo
01-06-2025
- Business
- Yahoo
School and Medicaid funding worries linger post-session for WA lawmakers
House Majority Leader Joe Fitzgibbon, D-West Seattle, on TVW's Inside Olympia. (Photo courtesy of TVW) This article was first published by TVW. The ink is hardly dry on Washington's new budget and already legislative leaders are anticipating more fiscal uncertainty. Democrats are focused on threats to health care access if Congress slashes Medicaid funding, while Republicans are warning of renewed legal jeopardy in education funding. In post-session interviews on TVW's Inside Olympia, House Majority Leader Joe Fitzgibbon, D-West Seattle, warned that a U.S. House-passed budget legislation — if enacted — could force Washington into a special session to make emergency Medicaid adjustments. 'I'm very concerned about the prospects that Republicans in Congress are going to cut Medicaid at a level that's going to lead to a whole lot of people losing health care around the country,' Fitzgibbon said. 'We're not able to insulate ourselves from that entirely.' He said proposed reductions to federal reimbursement rates, particularly for hospitals and nursing homes, would force tough decisions. 'We would have to come back in special session and we'd have to kick a lot of people off health care and close a lot of hospitals and nursing homes.' Senate Republican Leader John Braun, R-Centralia, disputed that framing. 'I think there's a lot of fearmongering out there,' he said, adding that the U.S. House plan is 'much more favorable for Washington than what many people thought.' Braun pointed to proposed eligibility checks, work requirements, and reforms to prevent dual-state enrollment. 'These are things that will not only save the federal government money,' he said. 'They'll save the state government money and allow us to deliver services more equitably to the people that really need it.' The two party leaders also offered starkly contrasting assessments of whether the new state budget could reignite a constitutional challenge like the 2012 McCleary decision, which mandated that Washington fully fund basic education. Fitzgibbon defended the budget's approach, saying the state continues to increase total and per-student K–12 funding. 'I don't think that we are relying on local levies to make up the difference in what basic education costs,' he said. 'Those are enrichment levies to cover additional programs.' He argued that voters had already approved the levy increases and said the budget includes additional money for levy equalization, more formally known as Local Effort Assistance, or LEA, which provides extra state support to property-poor districts. 'That should very much keep the scales balanced between the property-rich districts and the property-poor districts,' he said. Braun disagreed sharply, warning that the Legislature's move to increase local levy caps could trigger another legal challenge. 'I don't think there's any question. I think you'll have that lawsuit—if you don't have it already—you'll have it before the end of the year,' he said. 'You can't go to a school district across our state and say, 'Can you show me any definitive way that you're not using levies for basic education?' They'll say, 'No way, I can't. We're using it for basic education.'' Outside groups are warning of persistent discrepancies among districts. According to a March 2024 report by the Washington State School Directors' Association, wealthier school districts consistently raise significantly more revenue through local property tax levies, allowing them to offer expanded programs and staff. Lower-income districts often struggle to generate comparable funds, creating disparities in educational access and quality. Though Washington law imposes a 'levy lid' to limit how much local districts can raise, the system still allows for wide funding gaps. The League of Education Voters, in a summer 2024 analysis, concluded that the state's LEA funding is 'inadequate' to fully offset these disparities. The report found that districts are increasingly using levies to fund what many parents and educators view as core services—including special education, student mental health, and additional classroom staff—undermining the notion that the state is fully funding a 'basic education.' The result is what the League called 'a patchwork system where access to a constitutionally guaranteed education can depend on a student's ZIP code.' Braun echoed that view, saying, 'It's undeniably inequitable. This will result in less money per student in some districts and more in others—and that's exactly what McCleary said we could not do.' Fitzgibbon acknowledged the concern but said it can be addressed legislatively. 'The increase in levy equalization, which was not included in that bill, but is included in the budget, is something I have every expectation we'll be able to put into statute.'
Geek Wire
07-05-2025
- Automotive
- Geek Wire
Lawmaker behind controversial ‘Tesla tax' explains why Washington is targeting EV credits
Sustainability: News about the rapidly growing climate tech sector and other areas of innovation to protect our planet. SEE MORE The Tesla store at Bellevue Square in Bellevue, Wash. (GeekWire File Photo / Kurt Schlosser) Critics of a Washington tax that would largely impact Tesla accuse the state's Democratic lawmakers of taking punitive action against Elon Musk, dubbing it the 'Tesla tax.' The state leader behind the controversial legislation says that's patently false. 'That's not what this bill is about,' said House Majority Leader Joe Fitzgibbon in an interview with GeekWire. House Bill 2077, which lawmakers passed and now awaits action by Gov. Bob Ferguson, would tax the electric vehicle credits that are issued for free to automakers for EV sales — but only once they hit a threshold that just Tesla has reached so far. House Majority Leader Joe Fitzgibbon, D-West Seattle. (Washington Democratic Caucus Photo) Washington and 10 other states (plus Washington, D.C.) have adopted California's regulations requiring that all new car sales are zero-emissions vehicles (ZEVs) by 2035. As part of that program, credits are issued to clean car automakers, and can be sold to competitors that don't hit annual EV sales targets. The rules require that 35% of model year 2026 cars are zero emission, and ramp up each year. Fitzgibbon said that HB 2077, which lawmakers approved last month, is a reasonable way for successful electric automakers to support EV adoption by helping fund the installation of charging infrastructure. Supporters also like the potential for job creation. No other states have pursued similar legislation. Opponents argue it undermines the intent of the California rules — called the Advanced Clean Cars II program — by penalizing EV makers earning the credits, and some allege an anti-Musk bias. The Tesla and SpaceX chief has led the Trump administration's divisive Department of Government Efficiency. 'What Washington is proposing to do here is make it significantly harder to get more electric vehicles on the road,' said Craig Segall, an independent consultant. Segall, previously a deputy executive officer of the California Air Resources Board who oversaw the EV credit rules, called the tax 'vindictive.' Cash for credits Nationally, the credits have been a massive, sustaining windfall for Tesla. Given that it only produces clean vehicles, Tesla can sell all of its credits, or hold them until demand rises. The automaker has earned an estimated $10.7 billion over the past decade by selling its credits, according to an analysis by POLITICO's E&E News. That revenue stream represented one third of Tesla's profits over that time. 'This is a company that's doing very well as a result of this program,' said Fitzgibbon, who represents West Seattle. State estimates project the proposed bill could generate nearly $78 million during the 2025-2027 biennium and more than double that amount in the future. The bill earmarks 70% of the revenue for the general fund — which had a gaping hole that Fitzgibbon, the lead budget writer for the House of Representatives, needed to fill. The remainder of the tax would go into the Electric Vehicle Incentive Account, which helps pay for EV infrastructure. Beginning in July 2027, all of the tax would fund climate-related measures. 'Washingtonians would be better served and would have an easier time accessing electric vehicles if we invest in charging infrastructure and in incentives, than having 100% of these dollars go to Tesla's bottom line,' Fitzgibbon said. Other details of the proposed law: HB 2077 creates a 2% tax if an automaker sells its EV credits to other companies, and a 10% tax on credits that are banked for future use. Credits began being issued for 2023 model year vehicles, but the tax applies to 2024 model year vehicles and beyond. The tax only applies to manufacturers that sell or bank more than 25,000 worth of credits for a model year. In 2023, the most current numbers available in Washington, Tesla netted more than 106,000 credits. Volkswagen and Ford came second and third, with each receiving more than 13,000 credits. To calculate the state's potential revenue from the tax, officials estimated the credits will be worth about $6,000 each for model year 2026 vehicles. A Tesla on the highway. (GeekWire File Photo / Kurt Schlosser) Question of impact One of the worries for Segall, formerly of the California Air Resources Board, is that the move to tax the credits will further threaten the zero-emission vehicle efforts in Washington and beyond. Republicans in Congress voted last week to rescind California's ability to set stricter vehicle emission standards, which is the foundation of the program mandating EV sales. But the Senate parliamentarian and the Government Accountability Office, two nonpartisan government agencies, have determined the lawmakers lack the authority to scuttle the effort. Segall remains concerned, saying a tax could drive up the price of the credits, making it harder for other automakers to comply with the rules, and stoking calls to roll back the targets. He argued the tax would create a disincentive for EV manufacturers to sell cars in Washington. 'It makes no sense as a revenue measure, not really. It makes no environmental policy sense,' he said. 'They know how to do good policy, and this sure isn't that.' Fitzgibbon rejected that assessment. 'When you have one manufacturer that is responsible for so much of that market, they're able to act as a monopoly,' he said. 'And the goal of the [zero emission vehicle] program was never to reward a monopoly.' Fitzgibbon introduced the bill last month, late in the year's legislative session. The measure received only one public hearing. Multiple unions, organizations supporting poverty and family interests, and a liberal-leaning policy group testified in favor of the bill. Opposition came from Tesla, anti-tax representatives, a conservative-leaning think tank and a young Republicans group. Rivian, the Alliance for Automotive Innovation and the Natural Resources Defense Council raised concerns without formally taking a side. No other environmental groups weighed in. Fitzgibbon asserted that Congress and some auto industry members have long wanted to unravel the California rules — regardless of a tax. He maintained HB 2077 will help Washington achieve its climate goals. 'I am as focused on greenhouse gas reduction and fighting climate change as anybody in the Legislature,' he said, 'and I would not have proposed this bill if I thought it would take us a single step backwards in the fight against climate change.' RELATED:
Yahoo
04-05-2025
- Automotive
- Yahoo
Lawmakers pass controversial bill that could cost Tesla billions: 'Abusive'
The Washington state legislature passed a bill recently that would allow the state to tax Tesla for the electric vehicle emissions credits it sells to other manufacturers in the state. According to King 5 in Seattle, Washington, lawmakers passed a bill on April 27 that requires any manufacturer selling zero-emission vehicle (or ZEV) credits to pay a tax on that sale. Currently, Tesla is the only car manufacturer that sells those credits to other companies. In states like California, Washington, and 16 others, car manufacturers must ensure that a percentage of their vehicles are zero-emission when driven, either from electricity or hydrogen fuel. If a manufacturer can't deliver that percentage of ZEVs, they can purchase ZEV credits from manufacturers that are delivering a higher percentage. So, a company like Tesla can sell those credits to a company like Ford or General Motors to ensure that they make their quota of EVs delivered, even if they're not meeting the actual percentage. And because Tesla is the only EV manufacturer doing this, it's raking in money from the program. Tesla has earned $10.7 billion from the ZEV credit program, according to Politico estimates cited by King 5, and it accounted for 43% of the company's profits in 2024. "We never intended for this program to be a source of windfall profits for one manufacturer," said Rep. Joe Fitzgibbon (D-Seattle), who was the bill's primary sponsor. The bill would charge 2% of the sale price of each credit sold, and 10% of the average price of a credit for each credit banked. Overall, the program is estimated to generate $77.9 million in its first year and $202.9 million between 2027 and 2029. At this time, the law only impacts Tesla. Before the bill passed, an editorial in the Wall Street Journal suggested the proposal was "abusive lawmaking," per Teslarati. However, if other companies enter the ZEV credit sale market, they would be impacted as well. Nonetheless, the bill faced pushback from Tesla, which saw a 71% decline in net income in Q1 of 2025, as a growing number of automakers are introducing EV offerings to the market for consumers seeking more eco-friendly vehicles — also known for saving drivers money on fuel and maintenance compared to gas-powered vehicles. A number of consumers also view CEO Elon Musk unfavorably due to his increased political involvement and approach as a special adviser in the U.S. federal government. What do you think of Tesla and Elon Musk? Elon is the man Love the company; hate the CEO I'm not a fan of either I don't have an opinion Click your choice to see results and speak your mind. A Tesla representative urged lawmakers to "put the bill down," per King 5. Tesla lobbyist Jeff Gombosky said the bill would cause the credits to be worth less while also expressing concerns about the precedent the law would set for other states taking part in the program. Despite the pushback, the bill will land on Gov. Bob Ferguson's desk, where he has 20 days to sign it into law or veto it. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Sign in to access your portfolio
Yahoo
28-04-2025
- Business
- Yahoo
WA's 2025 legislative session has adjourned. Here are some defining moments
Sunday marked the final day of Washington state's 2025 legislative session, an occasion known as Sine Die. Much has happened in the 105 days since the session started Jan. 13. Tears were shed, brawls were fought. Descriptors for this year's proceedings have ranged from 'really hard' to 'grueling.' 'Certainly today, it feels like the toughest one that I've been through,' House Majority Leader Joe Fitzgibbon, a West Seattle Democrat, said at a Sunday evening press conference. 'But I'm sure every session to come will have its own challenges, too.' Earlier this year, then-Attorney General Bob Ferguson traded in his old title for a new one: governor. Washington said goodbye to longtime Gov. Jay Inslee. And residents got a glimpse of how the state could fare under the second administration of President Donald Trump. The Capitol saw policy squabbles and budget quarrels, thousands-deep protests and unexpected deaths. Washington lawmakers received a stormy revenue forecast in March, unwelcome news at a time when the state is facing a budget gap estimated between $7.5 billion and $16 billion, depending on the source. But it remains to be seen whether a special session will need to be called. Ferguson has kept mum about whether he'd approve lawmakers' final operating-budget offering; Democrats also passed capital and transportation budgets, too. In a lengthy statement Sunday, the governor thanked lawmakers for their hard work this session. 'I look forward to carefully reviewing the budgets line by line over the next few weeks,' he said. 'When that review is complete, I will share my thoughts with the public in greater detail.' Here are some of the highlights — and lowlights — of the regular session. Some of the biggest fights of the 2025 session centered around housing. Among the most hotly debated bills: one that would cap rent hikes. House Bill 1217 would limit annual rent increases to 7% plus inflation or 10%, whichever is lower, and up to 5% for manufactured homes. Another bill that divided lawmakers would allow striking workers to receive unemployment insurance benefits for up to six weeks. Democrats also pursued the closure of the residential habilitation center Rainier School for people with developmental and intellectual disabilities, located in Buckley in Pierce County. One short-lived, but quite controversial, proposal would have created a redesign committee charged with overseeing a makeover for the state flag. Democrats broadcast a slew of revenue options this year. Republicans, naturally, objected — and Ferguson also poo-pooed the suggested mountain of taxes as being far too high, citing looming federal threats to funding, programs and jobs. The majority party this session gave the green light to a 6-cent increase on the state's gas tax to help address the transportation budget's own multi-billion-dollar deficit. Tesla would get hit with a new tax under one House proposal. Democrats also attempted to tax the state's wealthiest residents, a concept that Ferguson has said he'd be open to discussing with a $100 million figure. The bill cleared the Senate but stalled out in the House. Republicans pushed back against Democrats' efforts to lift the 1% annual property-tax growth cap. They also slammed a proposed 50% increase on the price of state-park Discover passes and other taxes on 'joy.' Ferguson hasn't said which taxes he would support. Republicans registered outrage after House Democrats tweaked the rules on floor debate, accusing majority-party leadership of 'censoring' dissent. Democrats, incidentally, said the rule changes would help focus debate and end redundant filibustering. One explosive moment occurred in the House days before the end of session. State Rep. Jeremie Dufault, a Selah Republican, was prohibited from returning to the House chamber following an outburst that interrupted proceedings on the so-called parental bill of rights. (He was still allowed to participate virtually.) Ferguson also ruffled feathers after suggesting that most state workers should take furloughs one day per month over two years to assist with the state's budget problem. As the state scrambled to fix its own budget woes, the Trump administration took a chainsaw to federal funding, programs and jobs. Shortly after assuming office as attorney general, Democrat Nick Brown came out swinging against the Trump administration. Months into Trump's second term, Washington state has led or participated in several lawsuits against the federal government. Litigation topics have included alleged unconstitutional federal executive orders, including attempts to end birthright citizenship and restrict mail-in voting. U.S. Sen. Patty Murray, a Washington Democrat, has led a one-woman charge to warn against perceived ills emanating from the White House. And earlier this spring, House Speaker Laurie Jinkins said that if federal Medicaid funding were ever yanked, 'there is not a state in this country that can backfill that in any way, shape or form.' Ferguson has also directed state lawmakers to brace for additional federal hostility. State Superintendent Chris Reykdal, himself a former Democratic state lawmaker, doubled down on the state's position concerning the ability of transgender athletes to play in girls' sports and undocumented-student protections. The Washington Legislature mourned the lives of multiple state leaders. State Sen. Bill Ramos, an Issaquah Democrat, died unexpectedly April 19 while on a trail run near his home in Issaquah. Ramos' Senate colleagues commemorated him Sunday as someone who made Washington better. Former longtime Speaker of the House Frank Chopp, a Seattle Democrat, died last month from cardiac arrest at age 71. Ferguson described him as 'a force in Washington politics.' Days before Chopp's passing, former Republican Secretary of State Ralph Munro died at 81. Democratic Secretary of State Steve Hobbs said his predecessor had 'embodied the drive and attitude of a true statesman.' After lawmakers released the final operating budget on Saturday, Sen. Chris Gildon, the upper chamber's Republican budget lead, was called away because his wife of more than 31 years, Autumn, was discovered unresponsive at her workplace. She died of unknown causes. 'Legislators are people first, and at a time like this, our families are more important,' Senate Minority Leader John Braun of Centralia said in an emailed statement. 'We hold Chris and his family in our hearts and pray that they will find comfort and peace.'
Axios
15-04-2025
- Business
- Axios
Washington lawmakers clash over rent cap proposal
A showdown is shaping up in Washington's Legislature over how much to let landlords raise rents, after the state House and Senate passed substantially different versions of a rent cap bill. Why it matters: The legislation has advanced further in Olympia this year than ever before — but the dispute over how high to set the annual rent cap could doom its chances. Catch up quick: As passed by the state House in March, House Bill 1217 would prevent landlords from raising rent on existing tenants by more than 7% per year. Landlords could reset rent at any level once a tenant moves out, and apartments that are less than 12 years old would be exempt from the cap. Yes, but: The measure was amended on the Senate floor last week to allow annual rent increases of up to 10% plus the rate of inflation. That goes too far for many House members, who don't plan to approve the changes made by the Senate, House Majority Leader Joe Fitzgibbon (D-Seattle) told Axios. A small group of lawmakers will now meet to try to hammer out a compromise between the two chambers, both of which are controlled by Democrats, state Rep. Strom Peterson (D-Edmonds), who chairs the House Housing Committee, told Axios. What they're saying: Peterson said in years when inflation is high, the Senate changes would allow landlords to impose "15% or 18% rent increases" — more than double what would be allowed under the House plan. "Our members generally but not uniformly do not believe 10% plus inflation is a strong enough protection," Fitzgibbon told Axios. The other side: State Sen. Sharon Shewmake (D-Bellingham), who sponsored the amendment to increase the cap, said on the Senate floor that she thinks a 7% cap is a "dangerous and risky policy" that could lead to lower housing supply and hurt the rental market. She cited Stanford research that found some San Francisco landlords took units off the market after the city expanded rent control in 1994. Between the lines: Another point of contention is an amendment by the Senate to exempt many single-family homes from the rent-hike limits. "There are a lot of renters in single-family homes, and we think they deserve the predictability of a rent cap, just like people living in apartments," Fitzgibbon said. State Sen. Marko Liias (D-Edmonds), who sponsored the amendment, said on the Senate floor that he wants to ensure that landlords keep houses large enough for families on the rental market.
