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Home My WebLink AboutCOW - Handouts - HB 2948KeyHighlightsofHB2948—Authorizinga.25PercentPayrolllaxinKingCountyforAffordableHousing!Homelessness/BehavioralHealthHerearesomeofthemajorhighlightsofthenewbitt,HB2948,whichisanupdatedversionofSHB2907andwillbeheardThursdayat3:30p.m.inHouseFinance.(NOTE:Acompanionbitt,SB6692sponsoredbySen.KarenKeiser,D-DesMoines/33tdDist.,cameouttodayaswett):HouseBill2948(SenateBitt6692):•AuthorizesKingCountytoimposea.25of1%taxonpayrollexpensesofmostemployers(exceptionsforgrocers,liquorbusinesses,smallbusinesseswithfewerthan50emptoyees,cancerresearchcenters)basedonemployeeswhose“compensation”is$150,000ayear+•.10of1%taxwittgooffthetopto‘participatingcities”whicharecitiesover60,000populationthathavevotedtoparticipate(Section8).Thefundswiltbedistributedtotheparticipatingcitiesproportionattowheretherevenueisgenerated;•Theremainingfundingfromthe.25of1%witlbedistributedasfottows(Section9):o1/1000thof1percentdepositedintoaPayrollTaxOversightAccountusedbythestatefortechnicalassistance,audits,etc;o20%ofthefundingfromthe.25of1%wittbedistributeddirectlytothetargestcities(thoseover60,000)inKingCountythathavepassedaresolutionsupportingtheCounty’scottectionofthetax;o10%ofthefundingwittbesetasideforgrantstosmatlercitiesinKingCounty;o60%ofthefundingwillbesetasideforaffordablehousinganddistributedtothesubregionswitharequirementthat50%beusedtowardhousingserving0-30%AMI•Seattlesubregionwoutdreceive45%ofthefunding•TheNorth/EastandSouth(includesRenton)sub-regionswittreceive27.5%eacho10%ofthefundingwitIbesetasideforbehavioralheatth•TherewillbeanAdvisoryCommitteethatmakesrecommendationsonexpendituresandtheImptementation/SpendingPtan.Itwittincludeone(1)cityrepresentativeandone(1)stateofficialfromeachofthethreesub-regions;•Thereisnon-supptantlanguage-thosereceivingfundsmaynotsupplant,forasix-yearperiod,whatwasbeingspentasof2018.Aftersixyears,supptantingwoutdbepossibleifapprovedbyasuper-majorityoftheAdvisoryCommitteeestabtishedinSec.10;•TheeligibteusesofthefundsaredefinedinSection7-affordabtehousing,supportivehousing,hometessness,behavioralheatth-retatedfacitities,andpublicsafetytohetpaddressbehavioratheatthneedsofpersonsfrequenttyinvolvedinthecriminatjusticesystem.Thepublicsafety/behavioralhealthfundsmaynotcomprisemorethan25%ofoverallspendingbyaparticipatingcity.WhatthebitIdoesnotinclude-andotherkeyquestions•Thebittdoesnotinctudepre-emptionlanguagearoundcities’abititytoimplementbusinesstaxes.However,webetievethatpre-emptioncouldbepartofthefinalbitl.Ifso,ittiketywouldbeaprovisionprohibitingcitiesfromimposingmorethanoneofthesethreebusinesstaxesatthesametime:B&0ongrossreceipts;HeadTax;PayrollTax;•Thebiltdoesnotinctudeaneffectivedateforimptementationofthetax-wehaverecommendedJan.1,2021toprovidetimeforoutreach/educationtobusinesses;•ThebiltdoesnotincludeexpticitlanguageforSKHHP,ARCH,andRHA-wethinkitshoutd;•Thebitldoesnotcurrentlyattowhousing/homelessfundstobeusedforcteanupofencampments-wethinkitshoutd;•Thebittisestimatedtoraiseabout$150mittion/yearbutourrepeatedattemptstogetdetailedimpactinformationforbusinesses,variouscities,etc.,hasnotbeensuccessfut. DRAFTDRAFTDRAFTDRAFTDRAFTDRAFTCityofRentonListingofKeyProjects&AreasofNeedPotentialCountywideTransitBallotMeasureExpandingServiceHoursItisRenton’sunderstandingthatifacountywidetransitmeasuregoestotheballotinAugust2020,akeycomponentwillinvolvetheexpansionofservicehours.EnhancementsthatarevitaltoRentonstartingin2021are:•Route105—RentonHighlandstoDowntownCivicCore-Changefrequencyfrom30-minuteheadwaysto15-minuteheadwaysandextendservicelaterintheevening;•Route148—FairwoodCenter,BensonHilltoSouthRentonPark&RideandDowntownCivicCore-Changefrequencyfrom30-minuteheadwaysto15-minuteheadwaysandexpandhoursofservice;•ConnectingRapidRideILineTerminustoTheLanding:ProvideMetroservicetoconvenientlyconnectILineriders(beginningin2023)whoterminateatthedowntownRentonTransitCenterwithdestinationsinandnearTheLanding;SpeedandReliabilityAsweunderstandit,anothermajorcategoryofacountywideballotmeasurewouldbea“speedandreliability”buckettoenhancelocalserviceandinfrastructuretobettercapitalizeonandconnectwithMetroservice.SomekeyprojectsforRentoninclude:•RainierAvenueBusAccessTransit(BAT)lanes:ExtendfromSouth3tdStreettoSouth2dStreet•SR900fromSouth129thStreetto1-5:WhilethisstreetisoutsideincorporatedRenton,improvementscouldprovidesignificanttime-savingsforRoute101andRoute102riderswhoexperiencelongdelaysatthislocation.Improvementscouldincludeatransit-onlylaneestablishedbyreconfiguringtheexistingtrafficlanesandshoulders.•Exploreintra-citycirculatorsintwokeyareas:1)TheValley,TukwilaSounderStation,hospitals,anddowntowncore;and2)TheSouthRentonTransitCenter,TheLanding,and405/44thtoconnectmajoremployment,retail,andofficehubs.•South3tdStreet/South2I,dStreetTransitandPedestrianCorridors:WorkwithMetroondedicatedtransitandpedestriancorridorsdowntown.•South7thStreetpathwayconnectionsandTheRentonConnector:South7thneedstobeconnectedbetweenLindandRainier.TheConnectorhasmostlydesignfundsthusfar.•PotentialSouthportTransitCentertohelppeopleconnectwithRapidRidesandprovideabusconnectinglocationtofuturewater-taxiserviceenvisionedbySouthport. InnovationAsweunderstandit,thispartoftheballotmeasurewouldinvolve‘first-mile/last-mile”connectionsthatcanbeinnovativelyphasedinwithpublic-privatesectorpartnerships.AfewkeyonesforRenton:•“VIA”Service:ExtendtheexistingVIAPilotonRainierAvenueandinTukwilatoincludeRentonridershipareas;•CommunityConnections:ExpandpilotprograminRentontocoverareassuchasSunsetArea;•TDM:StepupeffortstoworkwithmajoremployersinKingCountybothpublicandprivatetomarketandexpandtransportationdemandmanagement(TDM).Longer-TermneedsThefollowingarelongertermsneedsthatmaygobeyondthisparticularballotmeasureServiceenhancements•Route240RapidRide:ImplementthelinebetweenRentonandBellevueviatheSunsetArea;•UpgradeRoutes105/106(RentonHighlandstoSeattleviatheDowntownCivicCore)toaRapidRideRoute;SpeedandReliability•ConstructBATlanesonSECartRoadfrom108thAvenueSEtoTalbotRoad;•IntersectionimprovementsatSouth129thStreetandSR900;•HOVdirectaccessrampfrom1-5toBuswaystartingatSpokaneStreet. HB2948PrioriflesUnderstandImpactonLocalBusinessCommunities•Citiestakegreatcareindevelopinglocalpoliciesthatfosterandsupporttheirbusinesscommunity.Toincreasecomfortlevelwiththisproposal,aclearerunderstandingofwhichbusinessesareimpacted/wheretheyarelocated/whatbusinesssectorneedstobeprovided.Whilecitieshavecontinuedtoaskforthisinformation,ithasnotbeenprovided.•InordertoensurethatanypayrolltaximplementationallowsforoutreachtoandeducationofbusinessesthroughoutKingCounty,theimplementationdateofanynewtaxinthebillshouldbeJan.1,2021.EnsuringInvestmentsAreEquitable/MeetingtheNeedsoftheCountyMuchprogressmadeinthisarea;belowaresomerefinedasksbasedonthecurrentbilldraft.•Thebillprovidesa.1of1%directdistributionto“participatingcities”over60,000,distributedbasedontheamountofrevenuegeneratedinthejurisdictions.oRatherthandefining“participatingcities”asa60,000-populationthreshold;itshouldbedefinedbyathresholdamountofmoney/percentageoffundsgeneratedwithinthecounty.oThe20%directlydistributedtocitieswithapopulationover60,000wouldremaininplace(onedirectdistributionbasedonwhererevenuegenerated;aseconddirectdistributionbasedonpopulation).oLackofclarityaroundwhathappensifacityteaches60,000populationmid-waythroughthetimethatthetaxisimposed.•Thehousingfundinginthebillisdistributedasfollowing:27.5%totheSouth,27.5%totheNE,45%toSeattle.oRatherthandistributingthefundingasapercentageofthefunding;itshouldbedistributedby#ofunits.27.5%ofthenumberofunitsbuiltinthesouth,27.5ofthenumberofunitsintheNE,45%oftheunitsbuiltinSeattle.Or,basedonpropertyvalues.Thisaccountsforthedifferenceinthecostofland/constructionineachsubregion.oWewouldliketoseestronglanguageinthebilltoensurethatthereisastrongroleforARegionalCoalitionforHousing(ARCH),theSouthKingHousingandHomelessnessPartnership(SKHHP),andtheRentonHousingAuthorityintheutilizationoffundsintheNorth/EastandSouthsub-regions. •Therequirementthat50%ofaffordablehousingfundsbeallocatedto0-30%AMIbracketshouldbeacumulativerequirementforallfundsasreflectedinpreviousdrafts,ratherthanarequirementimposedoneachjurisdiction.•Thestatehasaskedcitiestodevelophousingactionplans/strategies.Thefundinggeneratedinthisproposalneedstobeflexibleenoughtoallowtheseplansandstrategiestobeimplemented.Somefundingshouldgotojurisdictionstoimplementtheseplans.•Cleanupofhomelessencampmentsshouldbeaddedasoneoftheusesofthedirectdistributionfundsthatcitiesreceive.Accountability&Oversight•Cityrepresentationontheadvisorycommittee.Weappreciatethisbeingadded.•Developmentofaninvestmentplanoutliningwhatmoneyisgoingtowhichentity.Weappreciatethisbeingadded.oThereshouldbesometypeofconfirmationthattheinvestmentplanwillbeamandatoryreferraltotheregionalpolicycommitteepriortoapproval.•Thereshouldbeanannualorbiannualreportingrequirementonthefundingbeingspent.WeappreciatethisbeingaddedNopreemption/Needtobeabletoaddressothercommunityneeds•Itisunprecedentedforacountytobegrantedbusinesstaxauthority.Traditionallycitieshaveretainedthisauthoritytoprovideurbanserviceswithinurbanareas.Thisshouldbeacknowledged.•TheCountyshouldhavetocomplywiththesamelimitationsascitiesontheadministrationofbusinesstaxestoeaseimpactonbusinesscommunity.oUtilizeFileLocalforadministrationoCapontheamountallocatedtoadministrationWeappreciatethisbeingadded.•It’simperativethatcitiescontinuetohavetheauthoritytoimposeheadtax,squarefootagetax,B&O,andotherbusinesstaxauthorityinordertomeetothercommunityneeds(transportation,publicsafety,etc.).oOptionstoconsider:•Anyonebusinessshouldnothavetopaymorethanonetypeofbusinesstaxwithinajurisdiction,definedaseitherapayrolltax,B&Otaxongrossreceipts,orheadtax •Thepreemptionittime-limited•Theamountofpreemptiononajurisdictionisperhapsdependentonwhetherornotthejurisdictionreceivesadirectdistribution..HB2948shouldbean“eitheror”toHE1590.Notan“and.”