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Today's Headlines: WA Senate Dems float new taxes to balance cuts, ID House kills two more budgets

Senate Dems say mix of new taxes and spending cuts will balance WA's budget as deficit looms

Washington Senate Democratic leaders have come out with a package of taxes they say will help balance the next budget and rebalance the state tax structure.

At a press conference Thursday, Senator Noel Frame (D-Seattle) and Senate Majority Leader Jamie Pedersen announced what Democrats are calling a "financial intangibles tax."

That would be levied against people and companies whose stocks, bonds and mutual funds total more than $50 million.

"We’re going to use some of that revenue from those very wealthy people and businesses to reduce the sales tax that all eight million people in the state pay," Pedersen said.

"As cost of living is rising, Washington’s current regressive tax code puts an additional strain on households that are really struggling to meet their basic needs," Frame said. "And this proposal reduces that disproportionate impact on low- and middle-income households with a half-point sales tax reduction, going from 6.5% to 6%."

The Senate Democrats have also proposed giving counties more leeway to raise property taxes each year without a vote of the people.

State law allows a 1% hike a year without getting voter approval, with an option of asking for up to 6% with a vote.

The new proposal would allow annual percentage increases of inflation plus population growth without a vote. Local governments have the option to take a lower growth rate.

Pedersen said Senate Democrats expect to pair revenue raised by these taxes with spending cuts to balance the state’s next four-year budget.

House Democrats are expected to release their own tax proposal in the next few days.

Postal workers protest potential privatization

Postal workers rallied around the country yesterday to protest plans to privatize the U.S. Postal Service.

Members of the three unions that represent the agency’s employees gathered outside the Opportunity Post Office in Spokane Valley.

"We’re not here to roll over," Sarah Vazquez, one of the protest leaders, said. "We’re fighting back against what’s happening very publicly in the post office right now and the way certain things are playing out. We are not being silent.”

Vazquez, a member of the Inland Northwest chapter of the American Postal Workers Union, said people need to know that their mail service will become less frequent as a result of upcoming changes.

She said rural customers will notice that April 1 when the agency rolls out its "Local Truck Optimization Program."

"That means places like Inchelium, Hunters, Chelan, all these places out there are going to get one truck a day," she told SPR News. "These places that are used to getting two trucks a day, once in the morning, once at night, they’re not going to get that anymore. There will be one truck a day that leaves that post office.”

The postal unions have argued their 250-year-old agency can only be changed through acts of Congress.

They say the move would not save much, if any, taxpayer money, because the Postal Service is mostly funded through the sale of postage and services.

Idaho budget fight extends legislative session

Idaho House lawmakers killed another two budgets Thursday over spending concerns.

That ensures the legislature will not meet its target date to adjourn on Friday, March 21.

The trouble started with the budget covering the Idaho Department of Health and Welfare’s administrative arm.

It included $2.3 million in state funds for tech upgrades and 40 new vehicles. The division’s budget would still be cut by 2.1%.

That wasn’t enough for Rep. David Leavitt (R-Twin Falls).

"I will not vote for anything that creates more full-time positions, takes federal monies or increases the overall budget above the maintenance budget by 1.2%," Leavitt said.

The budget failed 30-40. A few minutes later, Rep. Rod Furniss (R-Rigby) presented the budget for IDHW’s behavioral health division. It would’ve added $5,000 in state funds and a 0.2% increase to the bottom line.

"I would hope that you could pass this budget and we could go home," Furniss said.

That line didn’t work. Even fewer people voted for it after no debate, failing 20-50.

Because these budgets only include new spending, lawmakers could adjourn without taking them up again.

Before it leaves town, the legislature still needs to adopt a K-12 education budget. That’s supposed to be set in committee Friday morning.

Zags beat fellow Bulldogs to advance in March Madness

It’s on to the second round of the NCAA basketball tournament for the Gonzaga men.

The Gonzaga Bulldogs raced to a big early lead and cruised to an 89-68 win over the University of Georgia Bulldogs in their first-round game in Wichita, Kansas.

"Gosh, it’s one of the greatest feelings you can have in the world to advance in this tournament, to get to enjoy another 48 hours with this group of mine. So, [I] couldn’t be happier," Gonzaga Coach Mark Few said.

Few has his team in its 26th consecutive national tournament.

The Bulldogs now face the number one seed in the Midwest Regional, the University of Houston Cougars, Saturday.

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Reporting by Doug Nadvornick and James Dawson.