>> I THINK YOU ARE LIVE.
>>> GOOD MORNING EVERYONE.
WELCOME TO THE SELECT BUDGET
COMMITTEE.
IT IS APRIL 22, 2020.
THE MEETING WILL COME TO ORDER.
I AM TERESA MOSQUEDA, CHAIR OF
THE COMMITTEE . PLEASE CALL TO
ORDER.
>> GONZALEZ
>> HERE.
>> HERBOLD ?
>> HERE.
>> JUAREZ ?
>> HERE.
>> LEWIS ?
>> PRESENT.
>> MORALES ?
>> PRESENT.
>> PEDERSEN ?
>> HERE.
>> MORALES ?
>> HERE.
>>, CHAIR MOSQUEDA ?
>> HERE.
>>> THANK YOU FOR JOINING THE
SELECT COMMITTEE ON THE BUDGET.
I WANT TO UNDERSCORE THE
IMPORTANCE OF THIS CONVERSATION
AND THE DIALOGUE WE WILL HAVE
LATER TODAY THROUGH THE
MEETING.
WE KNOW THE CRISIS AND
RESULTING ECONOMIC CRISIS HAVE
PUT INTO SHARP FOCUS THE
INEQUITIES THAT HAVE BEEN
EXPERIENCED IN THE CITY BY PAST
AND CURRENT ECONOMIC DECISIONS
AND POLICIES. MANY ARE
SEARCHING FOR SOLUTIONS TO
PROVIDE RELIEF TO THOSE
SUFFERING INTO THE THOUSANDS
MORE IMPACTED BY THE RECESSION.
AS WE SEARCH FOR SOLUTIONS, THE
RECOVERY EFFORT MUST BE
CENTERED ON COMMUNITY SUFFERING
THE GREATEST HEALTH AND
ECONOMIC IMPACTS.
THAT INCLUDES WORKERS,
NONPROFITS AND SMALL AND MEDIUM-
SIZE BUSINESSES ALIKE.
THE IMPACT WILL BE HARSH IN THE
RECOVERY WILL BE LONG AS WE
WILL HEAR FROM DIRECTOR NOBLE
LATER TODAY.
MANY OF YOU MAY HAVE HEARD THE
NEWS ON NPR THIS MORNING WHICH
ARTICULATED THE FACT THAT WE
EXPECT THE RESURGENCE OF THE
VIRUS THIS WINTER TO BE EVEN
WORSE.
MORE PEOPLE INFECTED AND MORE
PEOPLE FALLING SICK AND MORE
DIRECTIVES TO STAY HOME AND
STAY HEALTHY. SO, THIS IS NOT
AN EXERCISE. THIS CRISIS
DEMANDS LEADERSHIP AND RESPONSE
AND I BELIEVE EVERYONE ON
COUNCIL AGREES ON THIS ONE
THING.
WE ARE FACING A RECESSION AT
THE SCALE THAT IS UNPRECEDENTED
SINCE THE GREAT DEPRESSION. WE
NEED TO ADDRESS THIS CRISIS
WITH URGENCY BEFORE THE ECONOMIC
PAIN INCREASES AND WE HAVE AN
UNMITIGATED PACE WE CANNOT
RECOVER FROM. NOT SURPRISINGLY,
WE ARE HEARING CALLS FOR
AUSTERITY BUDGETING AT THE
NATIONAL LEVEL AND AT STATES
AND CITIES AROUND THE COUNTRY.
CALLS TO RESPOND TO THE CRISIS
BY MAKING BUDGET CUTS OR
ENACTING SPENDING. AUSTERITY
BUDGETING IS THE WRONG APPROACH
IF HISTORY TELLS US ANYTHING
AND WILL PERHAPS PERPETUATE THE
CRISIS. THE QUESTION TODAY IS,
WHAT WILL THE IMPACT OF THE
RECESSION BE?
HOW WILL IT IMPACT THE BUDGET?
WHAT ARE THE OPTIONS TO HELP
THOSE WHO ARE HURTING?
>> THE FAMILIES WHO DEPEND ON
US AND THE WORKERS AND SMALL
AND MEDIUM BUSINESSES?
WE NEED TO MAKE SURE THIS
CRISIS DOES NOT EXACERBATE
THEIR EXISTING REALITY OF
SHRINKING INVESTMENTS THAT WILL
LEADS TO DECREASED ECONOMIC
GROWTH AND FURTHER HURT MORE
PEOPLE. WE WANT TO MAKE SURE
THAT MORE PEOPLE, SMALL
BUSINESSES AND WORKERS CAN
PARTICIPATE IN THE ECONOMY.
THAT IS THE OPPOSITE OF AN
AUSTERITY BUDGET. WHEN
CONSUMERS HAVE MORE MONEY AND
MORE BUSINESS, THEY CAN HIRE
MORE WORKERS AND MORE ACTIVITY
IS POSSIBLE.
BEFORE THE END OF THIS FIRST
QUARTER, WE BEGAN TO SEE THE
IMPACTS OF COVID ON OUR BUDGET.
WE KNOW WE HAVE TO REBUILD FROM
THE BOTTOM UP AND NOT THE TOP
DOWN.
SEATTLE SMALL BUSINESSES AND
WORKERS HAVE BEEN IMPACTED BY
SUDDEN JOB LOSS AND LOSS OF
EMPLOYER-SPONSORED HEALTH
COVERAGE AND OTHER FORMS OF
FINANCIAL DEVASTATION. MANY
WERE STRUGGLING TO MAKE ENDS
MEET PRIOR TO THE ONSET OF THE
AT PANDEMIC. PEOPLE HAVE BEEN
STRUGGLING TO PAY FOR HOUSING
AND PUT FOOD ON THE TABLE AND
MEET OTHER BASIC NEEDS.
KELCE COLLEAGUES, TODAY IS A
DAY TO BEGIN.
WE KNOW WE CANNOT AFFORD TO
PAVE PAST ROADS THAT HAVE LED
TO AUSTERITY BUDGETING. PAST
RECESSIONS HAVE SHOWN US THAT
MEASURES LIKE THROTTLING STATE
AND CITY BUDGETS HAVE LED TO
FEWER PEOPLE EARNING MONEY
ALONG WITH FEWER CUSTOMERS AND
MORE LAID-OFF WORKERS WHICH IN
TURN LEADS TO GREATER NEED FOR
SOCIAL SERVICES IN THE MOMENT
WHEN CITIES AND STATES ARE
CUTTING.
I WANT TO PUT THIS INTO
PERSPECTIVE. MANY OF US HAVE
ENGAGED IN ADVOCACY OR HAVE
SERVED IN ROLES AS ADVOCATES OR
AS NONPROFIT LEADERS. WITH MANY
WHO ARE STRUGGLING IN THE LAST
RECESSION, ONE STATE LEADER
TOLD ME A MONTH AGO AS THEY
CLOSE THE LEGISLATIVE SESSION
THAT IT WAS ONLY IN THIS LAST
LEGISLATIVE SESSION THAT THEY
FELT THAT THE BUDGET PLUG SOME
KEY BUDGET CUTS THAT WERE MADE
IN THE RECESSION 10 YEARS AGO.
WE CANNOT GO IN THIS DIRECTION
AGAIN.
AS WE WILL HEAR FROM THE
DIRECTOR, THE DEPRESSION IS
HITTING HARDER AND FASTER THAN
THE PAST RECESSION.
I BELIEVE BOLD INVESTMENT THAT
PUTS MONEY INTO THE POCKETS OF
WORKERS AND SMALL AND MEDIUM
BUSINESSES CAN STIMULATE
ECONOMIC GROWTH.
THIS IS THE CRUX OF THE
CONVERSATION.
ESSENTIAL THAT WE MAKE RIGHT
SIDE UP THE UPSIDE DOWN TAX CODE
SO BUSINESSES CAN HAVE THE
OPPORTUNITY SHARED BROADLY
RATHER THAN JUST AT THE TOP.
TODAY WE WILL HAVE A
CONVERSATION ABOUT THE BILLS IN
FRONT OF US THAT WILL HELP
INITIATE A CONVERSATION ABOUT
HOW TO POTENTIALLY RESPOND TO
THE CRISIS. WE KNEW THAT WE
NEEDED TO RESPOND TO THE CRISIS
AND IT IS UNDERSCORED BY THE
IMPACTS OF THE HEALTH CRISIS ON
OUR LOCAL ECONOMY.
I HAVE HAD MULTIPLE
CONVERSATIONS WITH THE SPONSORS
OF THIS LEGISLATION AND AGAIN I
WANT TO THANK THEM FOR PUTTING
FORWARD THE LEGISLATION.
THERE WILL BE AMPLE
OPPORTUNITIES FOR INTRODUCTORY
COMMENTS.
I HAVE TALKED TO COLLEAGUES TO
UNDERSCORE THIS IS WHAT THE
LEGISLATIVE PROCESS IS FOR.
THE BILL SPONSORS ARE AWARE OF
THE REALITY THESE BILLS MAY NOT
BE IN THIS FORM WHEN WE LEAVE,
BUT WE MUST HAVE A CONVERSATION
ABOUT INVESTMENT, OPPORTUNITY,
COMMUNITY WORKERS, SMALL
BUSINESSES AND THE NEED TO MAKE
SURE WE ARE NOT JUST SUSTAINING
OR SURVIVING IN THIS CRISIS BUT
THAT WE ARE ABLE TO THRIVE AS
WE GET TO THE END.
WHILE WE ARE REMOTE, THIS
PROCESS WILL AND BEGIN TODAY
WITH ROBUST ENGAGEMENT FROM ALL
COLLEAGUES.
ALL COMMUNITY MEMBERS WHO HAVE
CALLED IN AND INDIVIDUALS WHO
HAVE REACHED OUT TO OFFICES AND
HAVE HAD COLLECTIVE MEETINGS IN
THE COMMUNITY, WHICH I KNOW
THERE HAVE BEEN MANY. I WANT TO
THANK THE FOLKS IN THE CITY OF
SEATTLE.
THE IT TECHNOLOGY FOLKS AND THE
CENTRAL STAFF ARE MAKING THESE
IDEAS AND CONVERSATIONS POSSIBLE
. WE WILL HAVE A CHANCE TO HEAR
FROM THE PUBLIC IN JUST A
SECOND HERE WITH THEIR HIGH-
TECH OPPORTUNITY FOR US TO
ENGAGE IN PUBLIC COMMENT
REMOTELY. WE ALSO KNOW THAT AS
WE HAVE THESE CONVERSATIONS AND
WE HEAR THE REQUESTS FROM
COMMUNITY MEMBERS THAT OTHER
CITIES ARE ACTING. AUSTIN TEXAS
JUST RELEASED $50 MILLION IN
ASSISTANCE.
AS THE NEW YORK TIMEPIECE SAID
YESTERDAY IN THEIR OPINION
PIECE, THIS TERRIBLE SUFFERING
DEMANDS EXCEPTIONAL RESPONSE.
POLICIES THAT CONTROVERSY ALL
MONTH TO GO OUR COMMON SENSE
TODAY, OR OUGHT TO BE.
PARTS OF THE ECONOMY HAVE
CLOSED AND MANY FOLKS WHO HAD
JOBS AND ARE CONSIDERED
ESSENTIAL AND ARE MAKING
MINIMUM WAGE OR SUB MINIMUM
WAGE.
COLLEAGUES, THIS IS AN
OPPORTUNITY TO RIGHT SIZE OUR
RESPONSE TO THE ECONOMIC CRISIS
THAT IS PENDING.
THERE ARE SOME COMPONENTS THAT
WILL MAKE IT POSSIBLE FOR
FAMILIES AND SOME SMALL
BUSINESSES TO RECOVER, BUT IT
IS NOT ENOUGH.
MANY FAMILIES AND WORKERS NEED
LONGER ASSISTANCE AND SOME MAY
NOT MAKE IT LONG ENOUGH TO SEE
ZERO INTEREST LOANS BE AN
OPTION.
THE CRISIS IS ON US TO LISTEN
TO OUR COMMUNITY AND LISTEN TO
COLLEAGUES AND ADEQUATELY
RESPOND TO MAKE SURE WE ARE
SEEKING THOSE FEDERAL DOLLARS
AND WORKING WITH THE STATE AND
REGION TO RESPOND TO THE CRISIS
AND ACTING LOCALLY WITHIN OUR
CITY TO RESPOND TO THE HEALTH
CRISIS AND CREATE TRUE ECONOMI
RECOVERY.
I WANT TO THANK YOU FOR JOINING
US TODAY.
WE WILL INITIATE THE NEXT FEW
MINUTES TO ENGAGE IN A ROBUST
DISCUSSION WITH PUBLIC COMMENT.
BEFORE WE GET THERE, I WOULD
LIKE TO APPROVE THE AGENDA.
IF THERE IS NO BUDGET
OBJECTION, THE AGENDA WILL BE
ADOPTED.
>> HEARING NO OBJECTION, THE
AGENDA IS ADOPTED.
>> THERE HAVE BEEN A NUMBER OF
INDIVIDUALS WHO HAVE CALLED IN
FOR TODAY'S PUBLIC COMMENT AND
I WANT TO THANK THE FOLKS FOR
MY TEA TO MAKE THAT POSSIBLE.
WE HAVE OFFERED THE OPPORTUNITY
TO CALL IN AND CALL BACK.
A NUMBER OF PEOPLE HAVE
INITIATED THOSE CALLS THIS
MORNING STARTING JUST BEFORE
8:00 A.M..
I WANT TO THANK THE INDIVIDUALS
WHO HAVE CALLED IN.
MANY ARE SMALL BUSINESSES AND
MANY ARE WORKERS AND GROCERY
STORES.
WE WANT TO HAVE THEM AT THE
BEGINNING SO THAT NO ONE IS ON
HOLD FOR EXCESSIVELY LONG TIMES
. COLLEAGUES, WE WILL OFFER
EVERYONE THE CHANCE TO SPEAK
ONE MINUTE.
FOR THOSE ON THE PHONE, YOU
WILL HEAR A TIMER AT ABOUT 50
SECONDS.
AFTER YOUR ONE MINUTE IS
COMPLETE, THE LINE WILL CUT
OFF.
SO, PLEASE MONITOR YOUR TIME
WHEN YOU ARE ON THE PHONE.
IF YOU ARE INTERESTED IN
SPEAKING AND HAVE NOT SIGNED
UP, YOU CAN DO SO AT THE
COUNCIL'S WEBSITE WHICH IS
LINKED ON THE AGENDA.
IF YOU WOULD LIKE TO SPEAK,
PLEASE, AS WE UNMUTE YOUR
MICROPHONE, YOUR NAME WILL BE
CALLED. YOU WILL HEAR YOU HAVE
BEEN UNMUTE IT.
PLEASE USE THAT AS YOUR
OPPORTUNITY TO INTRODUCE
YOURSELF AND TO BEGIN SPEAKING.
MONITORYOUR TIME SO YOUR TIME
IS NOT CUT OFF AND YOU ARE ABLE
TO COMPLETE YOUR SENTENCES.
>>> DURING PUBLIC COMMENT THERE
WILL BE A 10 SECOND REMINDER OF
THE ONE MINUTE COMING UP FOR
COMPLETION.
>> ONCE YOU HAVE COMPLETED YOUR
PUBLIC COMMENT, WE WILL ASK YOU
TO DISCONNECT FROM THE LINE.
IF YOU PLAN TO CONTINUE
FOLLOWING THIS MEETING, DO
THROUGH -- DO IT THROUGH THE
SEATTLE CHANNEL OR OTHER ONLINE
COMMUNICATION.
WE THANK THE SEATTLE CHANNEL FOR
MAKING THIS PUBLIC AND FOR ALL
OF THE WORK YOU ARE DOING
DURING COVID AS WELL.
>>> WE ARE PILOTING THE PUBLIC
COMMENTS AND WE ASK EVERYONE TO
BE PATIENT AS WE OPERATE THIS
NEW SYSTEM AND NAVIGATE THROUGH
THE INEVITABLE GROWING PAINS.
AS WE MOVE FORWARD, WE WILL
LOOK FOR NEW WAYS TO FINE-TUNE
THE PROCESS AND HOPEFULLY ADD
NEW FEATURES LIKE RECORDING
YOUR TESTIMONY FOR THOSE WHO
NEED TO ATTEND TO THEIR SMALL
BUSINESS OR WORK WITH YOUR
ESSENTIAL WORKERS.
YOU ARE ABLE TO EMAIL OR CALL
AT ANY POINT.
OUR COUNCIL OFFICES ARE OPENING
WITH THE TREMENDOUS STAFF
MONITORING OUR PHONE LINES AND
EMAILS . WE INTEND TO HAVE
PUBLIC COMMENT REGULARLY AT
FUTURE MEETINGS BUT THE CITY
COUNCIL RESERVES THE RIGHT TO
INDOOR TURNER MATE ANY PUBLIC
COMMENTS IF IT IS UNSUITABLE OR
IF IT IS UNSUITABLE FOR THE
MEETINGS TO BE CONDUCTED. WE
ALSO WANT TO NOTE IT IS
NECESSARY FOR YOU TO PROVIDE
PUBLIC COMMENT SO WE CAN
CONDUCT PUBLIC BUSINESS IN
RESPONSE TO THE CONCERNS, IDEAS
AND ENCOURAGEMENT.
>>> COLLEAGUES, WE HAVE A
NUMBER OF PEOPLE SIGNED UP
TODAY.
WE HAVE OVER 60 PEOPLE SIGNED
UP TODAY.
SO, I WILL GET TO AS MANY
PEOPLE AS POSSIBLE.
WITH THAT, I WILL ASK FOR THREE
PEOPLE TO BE CALLED AT A TIME.
YOU WILL HEAR YOUR NAME AND BE
UNMUTE IT.
THE FIRST THREE ARE EMILY
McARTHUR, GAVE HEALY AND LUIS
CHERNOFF.
EMILY, YOU SHOULD BE UNMUTE IT.
PLEASE INTRODUCE YOURSELF.
>> THANK YOU.
MY NAME IS EMILY AND I'M A
DISTRICT 2 RENTER AND I'M PROUD
THAT MIKE COUNCILMEMBER IS
COSPONSORING.
BEFORE THE PANDEMIC HIT, THERE
WAS MASSIVE INEQUALITY IN THE
CITY.
75% OF AMERICANS HAD LESS THAN
$1000 IN SAVINGS.
WHILE MANY PEOPLE ARE FACING
LAYOFFS AND DANGEROUS WORKING
CONDITIONS FOR MINIMUM WAGE,
FACEBOOK ACCUMULATED $26
MILLION MORE MONEY FROM PROPERTY
PROFITING OFF OF THIS.
IT WILL BRUTALLY ESCALATE IF
YOU DO NOT ASK THE TAX PAYMENTS
ON BIG BUSINESS.
I WAS PLEASED IN THE
INTRODUCTORY REMARKS THAT IT
INDICATES THE SUPPORT FOR THE
NEED FOR PROGRESSIVE FUNDING.
THE SYSTEM HAS PUT PROFIT OVER
PEOPLE AND THERE ARE GAPING
HOLES IN THE UNIVERSAL SAFETY
NET.
YOU HAVE A CHOICE BEFORE YOU.
YOU CAN FOLLOW PEDERSEN'S PLAN
TO FORCE THE BILLIONAIRE CLASS.
THOUSANDS OF FAMILIES ARE
HANGING OFF THE CLIFF OF
HOMELESSNESS AND DESTITUTION
AND STARVATION. THE WORKING
CLASS PEOPLE WILL BE FORCED TO
STEP UP AND DO IT FOR YOU IF
YOU DIDN'T.
PEOPLE DID NOT PAY RENT APRIL 1
AND MAY 1 IS COMING UP QUICKLY.
THAT STIMULUS CHECK THAT ALEX
PEDERSEN THAT IT WAS ENOUGH IN
HIS OP-ED ONLY COVERS HALF OF
THE RENT IN THE CITY .
ORGANIZERS ARE GETTING
ORGANIZED AND RENTERS ARE
FIGHTING BACK.
THINGS LIKE RENT CANCELLATION
AND HAZARD PAY.
THE DEMAND FOR HOUSING GOES
BEYOND JUST THIS MONTH'S RENT.
>>> THANK YOU SO MUCH. I ALSO
WANT TO NOTE FOR FOLKS THAT WE
ARE ENGAGED IN A CONVERSATION
IN THE MOMENT WHERE MANY PEOPLE
ARE EXPERIENCING TRAUMA. AS WE
ENGAGE IN THIS CONVERSATION, I
RESPECT ASK EVERYONE TO HAVE
RESPECTFUL DIALOGUE AND I THINK
ALL THE PEOPLE WHO HAVE CALLED
IN. WE WILL TRY TO GET THROUGH
AS MANY AS POSSIBLE AND WE WILL
ALSO HAVE A PANEL OF PEOPLE
IMPACTED FROM THE GROCERY
SECTOR AND HEALTHCARE SECTORS
SPECIFICALLY IN NEXT WEEK'S
MEETING. SO, PLEASE, LET ME
KNOW IF YOU HAVE FOLLOW-UP
COMMENTS AFTERWARDS.
I APPRECIATE EVERYONE
RECOGNIZING THIS IS A MOMENT OF
CRISIS AND WE DON'T WANT TO
FURTHER ADD TO TRAUMA.
THAT IS WHY WE ARE USING
EXPEDIENCY TO GET TO AS MANY AS
POSSIBLE. LET'S GO TO GAVE
HEALY AND THEN TO ALICIA LEWIS.
>> THANK YOU. I AM AN
IMMIGRATION PARALEGAL WHO WAS
RECENTLY LAID OFF DUE TO THE
PANDEMIC. I'M ALSO A RENTER IN
DISTRICT 4 AND I VOLUNTEER WITH
THE TAX CAMPAIGN.
FOR THE UNEMPLOYED PEOPLE WHO
ARE LISTENING. TO RELY ON
POLITICIANS TO PASS THIS TAX ON
BIG BUSINESS.
IN 2017, A MAJORITY OF
COUNCILMEMBERS CAVED UNDER BIG
BUSINESS. IN THE TAX AMAZON
CAMPAIGN WE ARE PUTTING TWO
VOTERS.
GO TO TAX AMAZON.NET WHERE YOU
CAN JOIN THE THOUSANDS WHO HAVE
SIGNED THE PETITION AND
VOLUNTEER. I WANT TO THANK
COUNCILMEMBERS FOR YOUR
LEADERSHIP ON THIS TAX ON BIG
BUSINESS.
THE TAX OF A 1% PAYROLL TAX
WITH 2% CORPORATIONS AND
BUSINESSES AND NONPROFIT. THANK
YOU FOR THE APPEAL IN 2018 AND
FOR YOUR SUPPORT ON MONDAY.
AS YOU KNOW, THE BILL WILL BILL
UP TO 8000 AFFORDABLE HOMES AND
COUNTLESS JOBS.
I ALSO WANT TO THANK
COUNCILMEMBER PEDERSEN FOR HIS
OPINION PIECE IN THE SEATTLE
TIMES.
>> THANK YOU SO MUCH .
>> IT IS ABUNDANTLY CLEAR WITH
BIG BUSINESS AND WORKING PEOPLE.
>> THANK YOU SO MUCH, YOUR TIME
IS UP.
>> ALL RIGHT COUNCIL
COLLEAGUES, THE NEXT PERSON WE
HAVE ON OUR LIST IS LOUISE. ARE
YOU THERE?
>> [ SILENCE].
>> IF SHE CALLS, WE WILL GET
BACK TO HER.
ALICIA LEWIS FOLLOWED BY DAVID
GOSLING.
>> HELLO, MY NAME IS ALICIA
LEWIS AND I AM AN ACTIVIST WITH
THE TAX AMAZON MOVEMENT AND I
AM A RENTER IN ANDREW LEWIS'S
DISTRICT.
THIS PANDEMIC HAS CREATED A
CONTROVERSY FOR WORKING PEOPLE
. THERE'S A CRISIS IN SEATTLE
AND WORKING PEOPLE ARE FACING
UNEMPLOYMENT AND MOUNTING DEBT
WITH NO GUARANTEED HEALTHCARE.
MEANWHILE, IT IS WELL
DOCUMENTED THAT AMAZON'S
PROFITS HAVE BEEN SKYROCKETING
DURING THIS PANDEMIC.
AN ARTICLE REPORTS THAT AMAZON
IS MAKING $11,000 PER SECOND
OFF OF HOME DELIVERIES.
THE TOP 2% OF SEATTLE
CORPORATIONS HAVE THE MONEY TO
PAY A MODEST 1.3% TAX TO FUND
IMMEDIATE CORONAVIRUS RELEASED.
A MASSIVE EXPANSION OF
AFFORDABLE HOUSING IN ADDITION
TO 7000 GOOD UNION JOBS WHICH
IS DESPERATELY NEEDED AT THIS
MOMENT AND IT HAS BECOME MORE
CRUCIAL NOW THAN EVER.
I WANT TO HIGHLIGHT, AS OTHERS
HAVE SAID BECAUSE OF HOW
CRUCIAL THIS FINDING IS. WE ARE
PREPARING TO TAKE THIS TO THE
BALLOT IN NOVEMBER. AND IN THE
CONTEXT OF NET MEDICALLY
NECESSARY SOCIAL DISTANCING, WE
HAVE SHOWN DETERMINATION ALREADY
MOBILIZING CONSTITUENTS FOR
SAFE, SYSTEMIC ONLINE VOTING
FOR SEATTLE VOTERS. I HOPE YOU
WILL STAND WITH OUR MOVEMENT
AND PASS THIS LEGISLATION NOW.
BUT WORKING PEOPLE KNOW THERE
IS TOO MUCH AT STAKE AND PREPARE
TO CONTINUE THE FIGHT.
COUNCILMEMBER LEWIS , YOU WOULD
NOT HAVE WON THIS ELECTION WITH
THE STRONG SUPPORT OF HOTEL
WORKERS AND HOTEL WORKERS BADLY
NEED THIS TAX.
WELL OVER 90% OF THEM ARE
WITHOUT INCOME AT THIS TIME OF
THE PANDEMIC. I HOPE YOU WILL
STAND WITH THE UNION MEMBERS
WHO GOT YOU ELECTED.
THANK YOU.
>> DAVID GOSLING, AVA MINTZ AND
JORDAN QUINN.
>> MY NAME IS DAVID GOSLING.
I'M A SMALL BUSINESS OWNER IN
VANCOUVER, WASHINGTON. I AM
DEFINITELY A SUPPORTER OF THIS
RELIEF.
I HAVE SEEN A MASSIVE DECLINE
IN CUSTOMERS AND I HAVE ALSO
HAD SOME BIG CUSTOMERS BACK OUT
ON ME ON JOBS THAT WERE ALREADY
SCHEDULED. I DID APPLY FOR THE
COVID RELIEF TAX FOR SMALL
BUSINESSES BUT WAS DENIED DUE
TO THE FACT THAT IN THE AYES OF
THE BEHOLDER , I AM TOO SMALL
OF A BUSINESS FOR THEM TO WORRY
ABOUT.
SO, YOU KNOW, I WONDER WHY WE
ARE FUNDING THESE MAJOR
CORPORATONS AND GIVING THEM
BILLIONS OF DOLLARS. COMPANIES
THAT MADE $470 MILLION IN A
YEAR AND WE ARE GIVING THEM THE
MONEY INSTEAD OF GIVING IT TO
THE PEOPLE THAT NEED IT.
>> I FACE LOSING MY COMPANY AND
ALSO NOT BEING ABLE TO PAY MY
MORTGAGE AND POSSIBLY LOSING MY
HOME, WITH A FAMILY OF FIVE. I
HOPE THAT WE CAN GET THIS
SITUATION RESOLVED.
>> THANK YOU VERY MUCH FOR
CALLING IN.
>>> AVA MINTZ.
>> MY NAME IS EVA AND I AM A
RENTER IN DISTRICT 2 AND I HAVE
BEEN IN THE TAX AMAZON
CAMPAIGN.
I WANT TO THANK COUNCILMEMBER
MORALES FOR STEADY WITH OUR
EFFORT TO TAX AMAZON FOR
CORONAVIRUS RELIEF. I THINK IT
IS SHAMEFUL BUT NOT SHOCKING
THAT COUNCILMEMBER PEDERSEN IS
TEAMING UP WITH REAL ESTATE .
THE SEATTLE TIMES IS FULL OF
LIES. WE NEED TO BE CLEAR THAT
OUR AMAZON TAX LEGISLATION
CALLS ON BIG BUSINESS TO GIVE
UP 1% OR LESS OF THEIR INCOME
FROM THE COMMON GOOD. TO
CONTRAST, THE ECONOMIC
OPPORTUNITY INSTITUTE. A
HOUSEHOLD THAT EARNS $25,000 IN
SEATTLE PAYS OVER $4200 IN
STATE AND LOCAL TAXES EACH
YEAR.
THAT'S 30% OF THEIR INCOME.
ANYONE WHO OPPOSES THIS TAX OF
A 1% TAX SO WORKING PEOPLE CAN
SURVIVE. WE ARE NOT ALL IN THIS
TOGETHER AND WE NEED TO TAX BIG
BUSINESS AND NOT WORKING
PEOPLE.
>> THANK YOU VERY MUCH.
NEXT UP IS JORDAN QUINN.
>> YEAH, HI. I AM JORDAN. I AM
A RENTER IN DISTRICT 2 AND THAT
IS COUNCILMEMBER MORALES'S
DISTRICT.
I SUPPORT THE TAX.
WE CANNOT AFFORD RENT BEFORE WE
LOST OUR JOBS. TWO YEARS AGO
THE CITY COUNCIL UNANIMOUSLY
PASSED A SMALLER VERSION OF
THIS.
BUT THE COUNCILMEMBERS HER BOLD
AND WHEREAS ANN GONZALEZ VOTED
TO REPEAL THE TAX.
PARTIALLY TO SAVE JOBS. WHAT
DID AMAZON DO WHEN YOU REPEALED
IT?
THEY PULLED OUT OF THEIR
DOWNTOWN OFFICE PROJECT AND WE
LOST THE JOBS ANYWAY.
WE DIDN'T HAVE MONEY TO REBUILD
AFTER THAT.
WITH THIS TAX, WE GET JOBS OUT
OF IT AND WE COULD BUILD 10,000
NEW RENT-CONTROLLED HOMES THAT
PEOPLE COULD ACTUALLY AFFORD
AND NOT LUXURY APARTMENTS THAT
NO ONE CAN AFFORD.
WE SHOULD SIDE WITH RENTERS
THIS TIME AND NOT BIG BUSINESS.
>> WE WILL DEFINITELY THINK
THAT COUNCILMEMBER SHOULD VOTE
FOR THE TAX.
IF YOU DON'T.
>> THANK YOU VERY MUCH.
THE NEXT THREE PEOPLE ARE LOGAN
SWAN, SABRINA AND THE WAY THEY
AND MARK BRUNSON.
LOGAN?
>> HI AND THANK YOU.
MY NAME IS LOGAN SWAN AND I AM
A RANKING UNION MEMBER. I'M
CURRENTLY ON UNEMPLOYMENT
BECAUSE OF THE PANDEMIC.
I SUPPORT THE TAX AMAZON
LEGISLATION AND THE TAX INCOME
MOVEMENT. I THINK WE CAN
CONFIDENTLY SAY THOUSANDS OF
JOBS WILL BE CREATED THROUGH
THIS.
WE KNOW THAT EVERY 100 UNIT
BUILDING WILL SUPPORT 68
CONSTRUCTION JOBS. IN THE FIRST
FIVE YEARS OF IMPLEMENTATION,
ACCORDING TO THE SPREADSHEET.
WE WOULD BUILD 5600 UNITS AND
THE MATH OF THAT IS ALMOST 4000
JOBS SUPPORTED.
THEN ON THE GREEN NEW DEAL
INVESTMENT, THE STAFF IS
REPORTING THAT EVERYONE MILLION
DOLLARS IN REMODELING SUPPORTS
OVER FIVE CONSTRUCTION JOBS.
IN THE FIRST FIVE YEARS OF THE
INVESTMENT, THERE WOULD BE
ALMOST 3500 CONSTRUCTION JOBS
SUPPORTED.
THAT DOESN'T INCLUDE OTHER JOBS
CREATED WHICH WOULD BE
ARCHITECT OR ANYTHING ELSE THAT
GOES INTO IT.
>> THANK YOU VERY MUCH.
>> SABRINA FOLLOWED BY MARK
BRUNSON.
SABRINA, ARE YOU THERE?
>> [ SILENCE].
>> SABRINA, ARE YOU THERE?
>> WE WILL COME BACK TO YOU.
>> I'M HERE.
>> WE HAVE GOT YOU, GO AHEAD,
SABRINA.
>> I'M SORRY, I HAD MY PHONE ON
MUTE. CAN EVERYBODY HEAR ME?
>> YES WE CAN AND YOUR TIME IS
STARTING NOW.
>> GOOD MORNING.
SABRINA AND I AM ON BEHALF OF
THE TRIANGLE NEIGHBORHOOD
ASSOCIATION.
WE ARE HOME TO RESTAURANTS,
RETAILERS AND SMALL BUSINESSES.
AS YOU MENTIONED IN THE INTRO
PRIOR TO THE PANDEMIC,
BUSINESSES AND EMPLOYEES IN
DOWNTOWN WERE ALREADY
STRUGGLING WITH THE NEGATIVE
IMPACTS OF PUBLIC SAFETY ISSUES
, INCLUDING THE AFTERMATH OF
THE THIRD AVENUE SHOOTING A FEW
SHORT MONTHS AGO. THEY ARE NOW
FACING ADDITIONAL CHALLENGES
DUE TO COVID-19.
MANY COMPANIES HAVE HAD TO LAY
OFF STAFF.
SOME OF WHICH DON'T KNOW IF
THEY WILL GET BACK OR NOT. SOME
OF THESE BUSINESSES ARE NOT
EVEN SURE THEY WILL BE ABLE TO
REOPEN AFTER THE PANDEMIC IS
OVER.
SO, NOW IS THE TIME TO MAINTAIN
AND INCREASE JOBS AND NOT TAX
JOBS.
THE QUICKER WE ARE ABLE TO GET
OUR ECONOMY BACK UP AND
RUNNING, THAT IS GOING TO HELP
OVERALL BUDGET AND CREATE MORE
MONEY.
>> THANK YOU SABRINA, SORRY
YOUR TIME WAS CUT OFF.
MARK BRUNSON?
>> HI.
>> HI MARK.
>> HELLO, MY NAME IS MARK
BRUNSON, GOOD MORNING.
I'M A RENTER IN DISTRICT 3 AND
I'M CALLING IN SUPPORT OF THE
PAYROLL EXPENSE PACKAGE.
WE ARE IN THE MIDDLE OF A
CLIMATE CRISIS AND THE SEVERE
HOUSING SHORTAGE. THIS REQUIRES
MORE HOUSING PRODUCTION IN THE
CITY OF SEATTLE AND ESPECIALLY
MORE AFFORDABLE HOUSING.
WE NEED TO LOWER THE PRICES AND
REDUCE URBAN SPRAWL. MOST
IMPORTANTLY, WE NEED TO STOP
FORCING OUT LOW INCOME PEOPLE
WHO CAN LEAST AFFORD THE COST
OF CAR OWNERSHIP. WE LACK THE
TOOLS TO ADEQUATELY ADDRESS
THESE ISSUES.
PLEASE PASS THIS PACKAGE TO
FUND AFFORDABLE HOUSING IN
SEATTLE.
I WANT TO THANK THE
COUNCILMEMBERS PRESENT WHO
SUPPORT THE NEW DEAL AND I HOPE
YOU CAN PUT THE PLAN INTO
ACTION.
THANK YOU FROM HEARING FOR FOUR
HEARING FROM US TODAY.
>> THANK YOU VERY MUCH.
BEFORE WE GO TO THE NEXT FOLKS,
I WANT TO SEE IF LUIS JOINED
US.
I WILL GIVE ITA A SECOND TO
SEARCH FOR HER IN THE QUEUE.
AFTER THAT, BARBARA FINNEY,
ROSIE DANIELS AND JUST AND
FAIR.
IS LOUISE WITH US?
>> I DO NOT SEE LOUISE.
>> BARBARA YOU ARE NEXT.
BARBARA, ARE YOU AVAILABLE?
>> I'M JUST QUEUING HER UP
RIGHT NOW.
HOLD ON.
>> HELLO?
>> HELLO, PLEASE GO AHEAD.
>> MY NAME IS BARBARA FINNEY
AND I LIVE IN D-5 AND I'M A
CONSTITUENT OF COUNCILMEMBER
JUAREZ.
I AM SUPPORTING THE TAX AMAZON
MOVEMENT.
JEFF BEZOS HAS GROWN BY $24
MILLION DURING THIS PANDEMIC
ACCORDING TO THE ECONOMISTS.
THEY PLAN TO HIRE 100,000 MORE
WORKERS AND WE HAVE THE MOST
EXTREME REGRESSIVE TAX
STRUCTURE HERE.
SO, WE ARE A TAX HAVEN FOR
WEALTHY CORPORATIONS. THE
CORONA ECONOMIC COLLAPSE IS A
TRIPLE EMERGENCY OF PUBLIC,
HEALTH, HOUSING AND
UNEMPLOYMENT.
WE DESPERATELY NEED TAX
REVENUES FROM THE WEALTHIEST
BUSINESSES. COUNCILMEMBERS,
CHOOSE TO STAND IN SOLIDARITY
WITH THE MAJORITY OF THE PEOPLE
YOU REPRESENT.
THE UNEMPLOYED, PEOPLE LACKING
WEALTH, THE HOUSING INSECURE
AND THE ELDERLY.
SUPPORT THIS LEGISLATION FROM
COUNCILMEMBERS SAWANT AND
MORALES .
>> THANK YOU SO MUCH.
NEXT UP IS ROSIE DANIELS.
IS ROSIE DANIELS AVAILABLE?
>> [ SILENCE].
>> THE NEXT PERSON AFTER THAT
IS JUSTIN BAIRD.
OUR ROSIE OR JUSTIN AVAILABLE?
>> HELLO?
>> HI, IS THAT ROSIE?
>> YEAH. I DIDN'T DO ANYTHING,
BUT I GUESS IT WORKED OUT.
>> MY NAME IS ROSIE DANIELS AND
I AM A SEATTLE WORKER IN DEEP
THREE AND A MEMBER OF THE
AMAZON MOVEMENT. THE TAX AMAZON
MOVEMENT HAS MASSIVE SUPPORT
FROM THE SEATTLE COMMUNITY AND
THEY WILL BE WATCHING YOU AS
OU DECIDE HOW T
THIS.
I URGE COUNCILMEMBERS TO JOIN
WITH THE LONG LIST.
THE TRANSIT RIDER UNION AND THE
SUNRISE MOVEMENT AND THE
WORKING FAMILIES PARTY.
YOU A W 4121 AND CHAIR WHEEL
AND THE PEOPLE OF SEATTLE IN
SUPPORT OF THIS TAX. WE WANT
AND NEED IMMEDIATE ASSISTANCE.
WE HAVE WANTED AND HAVE NEEDED
PUBLIC HOUSING FOR UNION JOBS.
THIS TAX COULD SUPPORT THAT.
THIS CRISIS NEEDS LEADERSHIP
AND WE NEED OUR COUNCILMEMBERS
TO FIGHT WHAT WILL ACTUALLY
SUPPORT US VERSUS REAL ESTATE
LOBBY.
>> THANK YOU SO MUCH.
>> THE NEXT PERSON IS JUSTIN
BAIRD, YOU SHOULD BE UN-MUTED.
HI JUSTIN.
>> HI, MY NAME IS JUSTIN AND
I'M A SOFTWARE ENGINEER AND A
RENTER IN LAKE CITY DISTRICT 5,
COUNCILMEMBER JUAREZ'S
DISTRICT.
I AM IN SUPPORT OF THE TAX
AMAZON MOVEMENT.
WE NEED THE SUPPORT OF
COUNCILMEMBERS SAWANT AND
MORALES.
THERE HAS BEEN A HUGE WAVE OF
UNEMPLOYMENT THAT WE HAVE SEEN
AND WE HAVE TO BE HONEST ABOUT
WHERE THE RESOURCES ARE DUE
DEAL WITH THE CRISIS IN THIS
CITY. REGULAR WORKERS,
INCLUDING SOME OF MY FRIENDS
ARE MAKING GOFUNDME'S TO GET BY
. JEFF BEZOS HAS INCREASED BY
SEVERAL MILLION AND AT THE SAME
TIME NOT ADDRESSING THE CASES
OF COVID BREAKING OUT IN HIS
WAREHOUSES.
I WATCH THE CITY COUNCIL REPEAL
THE TAX AND I HAVE NEVER BEEN
MORE DISAPPOINTED IN LOCAL
GOVERNMENT.
I APPRECIATED THAT SOME COUNCIL
MEMBERS VOTED TO REPEAL AT THAT
TIME. I URGE HER TO CONTINUE
WITH THAT PROGRESSIVE VOTE THIS
TIME.
>> THANK YOU SO MUCH, JUSTIN.
>> ANNEXED THREE PEOPLE WILL BE
JIM SANDERS, THE REVEREND
ANGELA GANG AND KATHY YOSSI. AS
A REMINDER FOR FOLKS, WE ARE
GOING TO ADJUST TO THE TIMER.
YOU WILL HAVE A 52nd
OPPORTUNITY TO SPEAK AND THEN A
TIMER AT 50 SECONDS.
THAT WILL GIVE YOU 10 SECONDS
TO SUMMARIZE YOUR COMMENT. WE
HAVE BEEN CUTTING OFF COMMENT
AT ABOUT ONE MINUTE AND FIVE
SECONDS AND WE HOPE THAT
EVERYONE CAN WRAP UP THEIR
THOUGHTS AS THEY HEAR THAT
TIMER.
JIM SANDERS, GO AHEAD.
>> THANK YOU COUNCILMEMBER
MOSQUEDA.
MY NAME IS JIM SANDERS AND I'M
A UNION BUS DRIVER AND I AM
ACTIVE IN THE TAX AMAZON
MOVEMENT.
I HAVE TO SAY, AS SOMEONE WHO
IS WORKING ON THE FRONT LINES
OF THE COVID CRISIS AND WHO HAS
COWORKERS DYING OR ARE FACING
EXTREME ECONOMIC HARDSHIP. I'M
GETTING SICK AND TIRED OF THIS
ARGUING THAT THE CHAMBER OF
COMMERCE AND THE SEATTLE TIMES
EDITORIAL BOARD AND SHAMEFULLY
COUNCILMEMBER PEDERSEN IN A
RECENT OP-ED REGARDING WITH
THE TAX ON JOBS. THIS IS A NEW
LOW THAT YOU ARE USING THE
COVID-19 CRISIS AS AN EXCUSE TO
PARROT THE EXACT SAME BAD
ECONOMICS AND TACTICS THAT YOU
USED BEFORE THE PANDEMIC.
THE AMAZON TAX AND 2018 IN THE
FIGHT FOR MINIMUM WAGE.
SO DON'T BE FOOLED, WORKING
PEOPLE.
THIS TAX WILL CREATE THOUSANDS
OF JOBS AND CREATE ASSISTANCE
TO HELP PEOPLE GET OUT OF THIS
CRISIS.
IF WE WANT TO GET OUT OF THIS
RECESSION, THEY NEED TO PAY
THIS TAX.
>> THE REVEREND ANGELA GANG.
>> THANK YOU.
AS A SENIOR PASTOR AND BASE
LEADER WITH MY COMMUNITY, WE
SEE DEATH AND SUFFERING EVERY
DAY AND WE NEED THIS EMERGENCY
TAX AMAZON LEGISLATION TO STAND
WITH THE WORKING PEOPLE
CONSTITUENCY AND VOTE YES ON
THIS TAXATION FOR AFFORDABLE
THOUSAND HOUSING AND CREATING
JOBS. THIS PERK RISE OF
PROGRESSIVE TAX AMAZON AND TAX
THE LARGE COMPANIES THAT CAN
AFFORD IT.
WITH THE LEADERSHIP, THE TAX
WOULD RAISE A MUCH-NEEDED $500
MILLION PER YEAR BEGINNING IN
JUNE.
THIS COMMITTEE IS OF ALL FAITHS
AND WE DEPEND ON YOU TO DO SO.
THERE IS AN OPPORTUNITY TO USE
COURAGE AND DO GOOD. APPROVE,
PLEASE, THIS TRIPLE EMERGENCY
COVID-19 TAX AMAZON RELIEF.
THANK YOU TO COUNCILMEMBERS
SAWANT AND MORALES .
>>> THANK YOU SO MUCH.
KATHY YOSSI.
>> HELLO. GOOD MORNING.
I AM KATHY YOSSI, MEMBER OF SI
YOU 925. I WANT TO THANK TAMMY
MORALES AND KSHAMA SAWANT FOR
BRINGING THIS LEGISLATION
FORWARD AND I ASK YOU TO PASS
THE TAX AMAZON RELIEF WITHOUT
DELAY.
MANY HAVE LOST THEIR JOBS IN
THIS CRISIS.
IN MY NEIGHBORHOOD, THAT
INCLUDES TWO PRESCHOOL TEACHERS
, DOG WALKER, SELF-EMPLOYED
PLUMBER, A HOUSE PAPER PAGER, A
WINDOW WASHER AND A CHEF.
NAIL SALONS AND LANDSCAPERS ARE
OUT OF BUSINESS.
WE HAVE FAMILIES WHO MUST EAT.
UNLIKE AMAZON WHO HAS MADE HUGE
PROFITS OFF OF THIS CRISIS, WE
HAVE THE REGULAR ONGOING LIVING
EXPENSES WITH NO INCOME.
FEDERAL RELIEF SEEMS GOOD BUT
IT IS NOT ENOUGH AND NOT
FORTHCOMING FOR THE TINIEST
BUSINESSES AND MORE IS NEEDED.
THIS LEGISLATION COULD GET
100,000 --
>> THANK YOU SO MUCH KATHY.
THE NEXT THREE SPEAKERS WILL BE
MODI, CARLA AND STARLA HINSHAW.
>> MY NAME IS MODI KRAUTHAMMER.
THE COUNCIL IS NOT BEEN
TRANSPARENT WITH HOW AND WHERE
THE FUNDS ARE COMING FROM IN
THE FIRST YEAR.
THE OVERVIEW OF THE TEXT ARE
VAGUE. THIS IS NOT ENOUGH FOR
TRUE TRANSPARENCY.
I WOULD LIKE TO STAY FOR THE
RECORD THAT MOVING FUNDS LIKE
THIS IN THE FIRST YEAR MAY BE A
LEGAL AND AGAINST THE CITY'S
CHARTER. THE COUNCIL SHOULD
TABLE THIS PROPOSAL UNTIL IT IS
CERTAIN THAT MOVING THE FUNDS
DOES NOT BREAK THE LAW.
IF AND WHEN YOU DO MOVE FORWARD
WITH THIS PROPOSAL, I WOULD
LIKE TO ADD A CATEGORY.
WHILE GOVERNMENTS ARE EXEMPT,
THE CITY COUNCIL AND COUNCIL
CENTRAL STAFF SHOULD NOT BE
EXEMPT FROM THIS 1.3% TAX.
THOSE TWO COMBINED BUDGETS ARE
IN THE MILLIONS AND THEREFORE
IT SHOULD NOT BE A PROBLEM FOR
YOU TO USE 1.3% OF YOUR PAYROLL
BUDGETS TOWARD COMBATING
HOMELESNESS.
THEREFORE, DO NOT EXEMPT YOUR
BUDGET FROM THE TAX.
AS THE SAYING GOES, YOU SHOULD
BE WILLING TO EAT YOUR OWN DOG
FOOD.
THANK YOU.
>> THANK YOU SO MUCH.
I BELIEVE WE HAVE GONE THROUGH
20 MINUTES OF PUBLIC TESTIMONY.
TO GET AS MANY MORE INDIVIDUALS
TO SPEAK AS IS POSSIBLE, I
WOULD LIKE TO EXTEND THE PUBLIC
COMMENT PERIOD ANOTHER 20
MINUTES.
IF THERE IS NO OBJECTION,
PUBLIC COMMENTS WILL BE
EXTENDED 20 MINUTES AND AT THAT
TIME WE NEED TO MOVE INTO OUR
PRESENTERS.
HEARING NO OBJECTION, THE
PUBLIC COMMENT IS EXTENDED
ANOTHER 20 MINUTES.
THE NEXT PERSON IS CARLA
FOLLOWED BY SARAH.
CARLA, ARE YOU AVAILABLE.
>> YES.
MY NAME IS CARLA AND I LIVE IN
DISTRICT 2 REPRESENTED BY
COUNCILMEMBER MORALES.
AND I AM A SUPPORTER OF THE TAX
AMAZON MOVEMENT.
I'VE OWNED MY SMALL BUSINESS
CLOSE TO 16 YEARS AND I RELY ON
MY REVENUE TO PAY MY BILLS AND
FEED MY FAMILY. I
DO NOT KNOW IF I CAN EXPECT TO
RECEIVE HELP DURING THIS CRISIS
. THE SMALL BUSINESSES IN MY
COMMUNITY ARE SCARED AND IT'S
SOMETHING WE NEVER THOUGHT WE
WOULD SEE.
THE GOVERNMENT IS BAILING OUT
BIG BUSINESS AND THOSE WHO
DON'T NEED IT WHILE BUSINESSES
LIKE MINE ARE LEFT IN THE COLD
AND MANY OF US CANNOT APPLY. IN
SEATTLE WE HAVE BIG COMPANIES
LIKE AMAZON MAKING HUGE PROFITS
AND THE BIGGEST PROFIT OFF OF
THE PANDEMIC.
I BELIEVE IT IS LESS THAN 1% OF
THEIR INCOME AND IT IS A
NECESSITY. IT WOULD NOT ONLY
HELP THE MOST BONDABLE IN OUR
COMMUNITY BUT THE MONEY WOULD
BE USED TO CREATE JOBS WHICH IS
WHAT WE WILL NEED AS WE SEE THE
BIGGEST UNEMPLOYMENT NUMBERS OF
OUR LIFETIME.
>> THANK YOU SO MUCH.
THE NEXT PERSON IS GOING TO BE
RICHARD SWARTS FOLLOWED BY
CAMPBELL AND BRANDON. I WANT TO
CONFIRM THAT SARAH HINSHAW IS
NOT WITH US.
>> OKAY, RICHARD, PLEASE GO
AHEAD.
>> RICHARD SCHWARTZ. I HAVE
BECOME INCREASINGLY DISTURBED
IN RECENT YEARS BY THE TACTICS
THAT COUNCILMEMBER SAWANT HAS
PURSUED IN HER AGENDA SUCH AS
THE AMAZON TAX.
IT MIMICS THE MANY WAYS MR.
TRUMP'S BULLYING TACTICS.
TRYING TO KEEPING SUPPORTERS
RILED UP WITH PROVOCATIVE
DIALOGUE.
ENCOURAGING SUPPORTERS TO HAVE
DISRUPTIVE BEHAVIOR. TO
DISTRACT THE PUBLIC BY CREATING
BOGEYMAN VILLAINS.
HER RECENT EMAIL BLAST AND THE
SEATTLE TIMES HIT PIECES AND
BIG BUSINESSES TELLING LIES TO
THE COUNCIL.
RICH PEOPLE ARE EVIL. IN OTHER
WORDS YOU ARE CREATING DIVISIVE
NUMBERS IN THE CITY. THIS IS
NOT AN APPROACH THAT SHOULD BE
ENCOURAGED.
THERE ARE 750,000 PEOPLE IN THE
CITY AND LOUD AND INTIMIDATING
GROUP SHOULD NOT INTERRUPT
COUNCIL DELIBERATIONS.
>>> BRYNDEN MONTGOMERY.
>> THANK YOU.
MY NAME IS CAMPBELL TEBO AND
I'M HERE TO SPEAK ABOUT THE TAX
ON SOME OF THE WEALTHIEST 2% OF
BUSINESSES IN SEATTLE. I RENT
IN DISTRICT 3 AND I WANT TO
THANK COUNCILMEMBERS SAWANT AND
MORALES FOR SUPPORTING THIS.
I'M NOT ABLE TO WORK DUE TO
CORONA.
NORMALLY I EMPLOY UP TO 10
PEOPLE, MOSTLY IN THEIR 20s.
NONE OF US ARE REALLY ELIGIBLE
FOR UNEMPLOYMENT EXCEPT ONE OR
TWO OF US WHO ARE ARTISTS WITH
THE EXTENDED BENEFITS PACKAGE.
I'VE BEEN TRYING TO GET HOURS
AT THE WAREHOUSE OR WHEREVER WE
CAN.
I'M ALSO TRYING TO GET A SMALL
BUSINESS OFF THE GROUND IN
SOUTH SEATTLE WITH SHARED
STUDIOS.
I WILL BE OUT OF MONEY ONCE I
PAY MY BILLS AT THE BEGINNING
OF MAY. IN MY OPINION, IT IS
WISE TO PURSUE REVENUE FROM
LARGE BUSINESSES LIKE AMAZON
WHICH IS STERICALLY PAY THE
LEAST AMOUNT OF TAX.
THERE IS NO BETTER TIME TO ACT
AND NOW.
WE NEED TO TAX BUSINESSES AND
GET MONEY INTO THE HANDS OF
PEOPLE. THANK YOU.
>> THANK YOU VERY MUCH.
BRENDAN McGOVERN.
>> CAN YOU HEAR ME?
>> YES, PLEASE GO AHEAD.
>> MY NAME IS BRENDAN McGOVERN
AND I'M A RENTER DISTRICT FOR,
COUNCILMEMBER PEDERSEN'S
DISTRICT.
I WORK AS A TEACHER AND
SUBSTITUTE TEACHER FOR SEATTLE
PUBLIC SCHOOLS.
I AM NOT DOING SUBSTITUTE WORK
AT THIS TIME DUE TO THE SCHOOLS
BEING CLOSED AT THIS TIME OF
YEAR . I AM A MEMBER OF THE TAX
AMAZON MOVEMENT.
I SUPPORT COUNCILMEMBER SAWANT
AND MORALES'S LEGISLATION . I
AM APPALLED THAT REPRESENTATIVE
PEDERSEN IN OUR DISTRICT 4 HAS
PUBLISHED THE SHAMEFUL OPINIONS
IN THE SEATTLE TIMES . IF YOU
ARE TRULY SO CONCERNED ABOUT
BUSINESSES THAT ARE SUPPOSEDLY
FACING BANKRUPTCY OR PLEADING
JOBS, NAME THEM.
HE HASN'T NAMED A SINGLE
BUSINESS THAT WOULD SUPPOSEDLY
BE SUFFERING FROM THIS TAX
BECAUSE THEY ARE ALL EXTREMELY
PROFITABLE MULTIBILLION-DOLLAR
COMPANIES THAT COULD EASILY
AFFORD THIS.
>> THANK YOU VERY MUCH,
BRENDAN.
>> BEFORE WE GO TO THE NEXT
THREE PEOPLE, ONE OF THE
EARLIER SIGNERS IS ON THE LINE.
PLEASE GO AHEAD.
>> THANK YOU, CAN YOU HEAR ME?
>> YES, PLEASE GO AHEAD.
>> HELLO, MY NAME IS LOUISE
CHERNIN AND I HAD TROUBLE
GETTING THROUGH BEFORE.
I AM CEO OF THE WASHINGTON
STATE LB GTQ CHAMBER OF
COMMERCE REPRESENTING 1400
SMALL BUSINESSES.
THANK YOU COUNCILMEMBER
MOSQUEDA FOR THIS OPPORTUNITY.
BY NOW YOU HAVE RECEIVED A
LETTER SIGNED BY HUSBAND
HUNDREDS OF BUSINESS OWNERS AND
COMMUNITY AND BUSINESS LEADERS
IMPLORING YOU NOT TO ADOPT THIS
PAYROLL TAX PACKAGE. WHEN I
HEARD THIS WAS BEING
INTRODUCED, I DIDN'T BELIEVE
IT.
I CANNOT IMAGINE THAT IN THE
MIDST OF THE GREATEST HEALTH
AND ECONOMIC CRISIS THAT ANYONE
WOULD INTRODUCE A PAYROLL TAX
WHEN THERE WERE UNPRECEDENTED
LAYOFFS AND CLOSURES.
THE BILL TARGETS 800 BUSINESSES
THAT EMPLOY OVER 300,000
WORKERS.
THESE BUSINESSES NEED RESOURCES
TO RETAIN AND BRING BACK LAID-
OFF WORKERS.
MAKE NO MISTAKE, THIS IS NOT A
BILL ONLY TARGETING A FEW LARGE
BUSINESSES.
>> THANK YOU LOUISE.
>>> THE NEXT THREE PEOPLE WILL
BE MEGAN MURPHY FOLLOWED BY
VALENCIA WARNER AND DANIEL
CAVANAUGH.
MEGAN.
>> HI. THE LEGISLATION IS VITAL
. WE HAVE TO DECIDE AS THE
RESOURCES ARE BEING DIVIDED
UNEQUALLY. IT IS TIME TO SHARE
AND CHOOSE IF WE ARE GOING TO
WORSHIP THE THREE MARKET AND
ENABLE THE VERY FEW TO HAVE
ACCESS TO UNGODLY AMOUNTS OF
MONEY, OR IF WE ARE GOING TO
USE THE RESOURCES AND SHARE AND
ADJUST WAY AND MOVE TOWARD AN
ECONOMY WHERE LEGISLATION WILL
CREATE MANY JOBS.
IT IS GOOD LEGISLATION. BUT, I
DO APPRECIATE THE EDITORIALS
THAT DO SUPPORT THE
DISTRIBUTION OF WEALTH.
THANK YOU.
>> THANK YOU VERY MUCH.
>> VALENCIA WARNER.
>> HI, CAN YOU HEAR ME?
>> YES.
>> I AM A FAMILY PRACTICE
DOCTOR, VALENTINA WARNER AND I
WORK AT A COMMUNITY CLINIC IN
TAMMY MORALES 'S DISTRICT. I AM
SEEING FIRSTHAND THE
EXPERIENCES OF PEOPLE WHO ARE
NOT ABLE TO PARTICIPATE IN
WHATEVER BAILOUT HAS BEEN GIVEN
. I HAVE A PATIENT WHO IS A
HAIRDRESSER WHO HAS NO INCOME
AND HAS NOT BEEN ABLE TO
PARTICIPATE IN ANY SMALL
BUSINESS SUPPORT. SHE IS
TALKING ABOUT TAKING CLIENTS
PRIVATELY TO BE ABLE TO SUPPORT
HERSELF AND HER TWO CHILDREN.
IN FACT, OURSELVES, AS
HEALTHCARE PROVIDERS, ARE BEING
CUT.
THE CLINIC CUT OUR HOURS BY 20%
ACROSS THE BOARD FOR ALL
PROVIDERS BECAUSE OF THE
CUTBACKS ON THE ABILITY TO SEE
PATIENTS IN PERSON.
IT SEEMS INSANE TO DO THAT
DURING A HEALTHCARE CRISIS.
PEOPLE WITH LOAN DEBT ARE NOT
CAN BE ABLE TO PAY.
>> THANK YOU VERY MUCH,
VALENCIA.
DANIEL CAVANAUGH.
>> HELLO, MY NAME IS DAN AND I
AM NURSING STUDENT. A LOT OF
PEOPLE HAVE TALKED ABOUT HOW
THIS WILL CREATE HOUSING BY
TAXING BIG BUSINESS. ONE OF THE
BUSINESSES THAT WOULD BE
TARGETED WITH THIS TAX IS THE
LARGEST COMPANY IN THE U.S..
THE CEO MADE $19 MILLION.
$19 MILLION FOR ONE PERSON.
THAT IS JUST ONE EXAMPLE. BIG
BUSINESS CAN AFFORD TO PAY THIS
TAX. THE WHOLE LAST YEAR SHOWED
OVER 70% OF PEOPLE IN SEATTLE
SUPPORT TAXING BIG BUSINESS.
WE NEED TO CREATE THOUSANDS OF
JOBS BY BUILDING AFFORDABLE
HOUSING.
>> THANK YOU VERY MUCH DANIEL.
>> ALEXANDER FOLLOWED BY VIOLET
LAVONTE HE AND THEN JESSICA
SCOTT SLOW.
>> HELLO, MY NAME IS ALEX MANN
AND I LIVE IN DISTRICT TWO WITH
COUNCILMEMBER MORALES . I'M
HERE TO SUPPORT THE TAX AMAZON
INITIATIVE.
WE HAVE BEEN LIVING AT A TIME
OF MASSIVE INCOME INEQUALITY
WHERE JOBS AND PAY HAVE NOT
BEEN IN LINE WITH THE LIVING
COST OF SEATTLE. COVID HAS ONLY
MADE THIS ISSUE WORSE AND IT IS
COMPLETELY UNCONSCIONABLE THAT
A COMPANY AS LARGE AS AMAZON
CONTINUES TO MAKE PROFITS AND
HOARD THEIR WEALTH AND THEN
CONTINUE TO BUY STOCK OPTIONS
LIKE BOEING AND OTHER COMPANIES
HAVE BEEN DOING WHILE THE
COMMON MAN SUFFERS MORE AND
MORE.
IT IS THE RESPONSIBILITY OF THE
COUNCIL TO TAX THESE PEOPLE I
GET MONEY BACK INTO THE HANDS
OF THE WORKING PEOPLE. NOT SO
WE CAN JUST WEATHER THIS CRISIS
BUT CONTINUE TO THRIVE.
THANK YOU FOR YOUR TIME.
>>> THANK YOU.
VIOLET LAVONTE A. VIOLET?
>> HI. THANK YOU COUNCILMEMBER
MOSQUEDA . I AM ACTUALLY THE
DIRECTOR OF THE TENANT'S UNION
OF WASHINGTON AND I AM CALLING
ABOUT THIS LEGISLATION.
THERE HAVE BEEN MANY BAILOUTS
FOR THE RICH. THIS LEGISLATION
WOULD HELP THE WORKING POOR
COMMUNITIES OF COLOR. I AM A
COMMUNITY MEMBER AND WE ARE
SEEING THE DISPARITY OF BIG
BUSINESSES STILL GETTING AWAY
WITH NOT PAYING THEIR FAIR
SHARE OF TAXES.
THERE ARE SO MANY SMALL
BUSINESSES THAT WILL NOT GET
AFFECTED AND THIS IS ACTUALLY A
WIN-WIN FOR ALL OF US.
WE ARE SAYING TO BIG
BUSINESSES, MOSTLY AMAZON, PAY
YOUR FAIR SHARE. THANK YOU.
>> THANK YOU.
APPRECIATE IT.
>> JESSICA SCOTT SLOW.
>> HELLO, MY NAME IS JESSICA. I
LIVE IN DISTRICT 3 WITH
COUNCILMEMBER SAWANT . I AM A
RENTER AND I HAVE DONE SOME
WORK WITH THE TAX AMAZON
MOVEMENT. I WOULD ACTUALLY BE
WORKING AT A GROCERY STORE BUT
I AM OUT ON INJURY.
I'M ENCOURAGING COUNCILMEMBERS
TO VOTE IN FAVOR OF
COUNCILMEMBER SAWANT AND
MORALES' TAX AS IS.
THERE IS CURRENTLY LESS FOR THE
POOR AND MORE FOR THE RICH AND
THE MONEY IS WITH THE MAJOR
CORPORATIONS AND THE
BILLIONAIRES. WHETHER WE
BELIEVE IT IS A MORAL ISSUE OR
NOT, IT SEEMS LIKE A NO-BRAINER
THAT WE NEED TO GO WHERE THE
MONEY IS IN SUPPORT THIS TAX.
PLESE STAND WITH THE WORKING
PEOPLE AND SUPPORT WHAT I THINK
IS ACTUALLY A VERY MODEST TAX
ON BIG BUSINESS.
>> THANK YOU.
JUST TO CONFIRM JORDAN ROYER
AND LISA SANDOVAL, WE HAVE YOU
LISTED BUT DON'T SEE YOU PRESENT
. IF YOU ARE ON ZOOM, PLEASE
CALL IN SO YOU CAN SPEAK.
THE NEXT UP IS SUMMER STINSON.
>> HELLO, I AM SUMMER STINSON,
A HOMEOWNER IN D6 AND A BOARD
MEMBER OF THE ECONOMIC
OPPORTUNITY INSTITUTE.
>> AT THIS TIME, I STRONGLY
SUPPORT TAXING THE RICH IS 2%
OF MEGA BUSINESSES TO HELP OUR
VULNERABLE COMMUNITY AND CREATE
JOBS.
THIS CRISIS HAS HIT HOME AND
HOW WE LIVE IN AMERICA AND
SEATTLE.
THE GAPS BETWEEN THE HAVE AND
HAVE NOT IS BIGGER THAN EVER.
WORKERS ARE NEEDED AND CRUCIAL
BUT DON'T RECEIVE THE RESPECT,
SERVICES OR ECONOMIC PAY THEY
DESERVE. THIS TAX IS VERY MODEST
. VERY, VERY MODEST FOR A MEGA
CORPORATION.
IN ORDER TO HELP RIGHT OUR
UPSIDE DOWN TAX SYSTEM. WE LIVE
úIN THE MOST UPSIDE DOWN TAX
SYSTEM IN THE STATE WITH A CITY
AND THE STATE AND THE COUNTRY.
ALREADY WASHINGTON STATE GETS
MORE TAX BREAKS TO THOSE
MEGACORPORATIONS THAN ANY OTHER
STATE.
>> THANK YOU SUMMER. THE NEXT
THREE PEOPLE WILL BE CHRISTINA,
JEANETTE AND JOHN. CHRISTINA.
>> HELLO, MY NAME IS CHRISTINA
AND I'M A RENTER IN
COUNCILMEMBER SAWANT'S DISTRICT
AND I AM WITH THE MLK WORKING
FAMILIES COMMITTEE.
IT IS GREAT TO SEE SO MANY
PEOPLE COMING OUT IN SUPPORT ON
THIS CALL TODAY.
NOT LONG AGO I WAS PART OF A
COMMUNITY OF HOUSING ACTIVISTS.
YOU KNEW HOW DEEPLY THE
LEGISLATIVE LEGISLATION WAS
NEEDED AND THEN YOU RETRACTED
IT BECAUSE AMAZON THREW A FIT.
WITH THE CORONAVIRUS, THE
HOUSING CRISIS IS EVEN MORE DIRE
ESPECIALLY THOSE WHO WOULD'VE
BEEN SERVED BY THE TAX AND SOME
OF IT WAS PREVENTABLE.
THIS TIME AROUND, PLEASE DO NOT
PROTECT RICH, WHITE, BIG
BUSINESS CEOS. PASS THIS TAX TO
PROTECT THE LOW INCOME AND
WORKING-CLASS COMMUNITIES.
ESPECIALLY COMMUNITIES OF COLOR
, FOLKS AND OTHERS. THIS WILL
BE EXACERBATED IN THE AFTERMATH
OF COVID-19 AND WE NEED THE
PROTECTIONS NOW.
>> WE ALSO SEE SARAH, RYAN AND
ADDIE SMITH AS LISTED TO SPEAK
BUT THEY ARE NOT PRESENT.
IF YOU ARE ON ZOOM, PLEASE DIAL
IN.
THE NEX PERSON'S JEANETTE.
>> MY NAME IS JEANETTE.
I AM A RENTER IN DISTRICT 3 AND
A PROJECT MANAGER AND A
SUPPORTER OF THE TAX AMAZON
INITIATIVE.
I HAVE SEEN HOW 10% PLUS
INCREASES AND LACK OF AFFORDABLE
HOUSING HAVE TURNED PEOPLE TO
HOMELESSNESS. RENTERS STRUGGLE
TO EAT AND PAY RENT DURING THIS
PANDEMIC.
THE FREE SUPPLY AND DEMAND
MARKET IN SEATTLE IS
UNAFFORDABLE TO COMMON WORKERS.
EVEN OLDER BUILDINGS HAVE BEEN
FLIPPED BY INVESTORS AND HAVE
BECOME UNAFFORDABLE. WE NEED
AFFORDABLE HOUSING.
>> MY FRIEND IS A HAIR STYLIST
AND HAS NOT BEEN ABLE TO
RECEIVE ANY GRANTS FOR COVID-19.
SMALL BUSINESS OWNERS,
ESPECIALLY RESTAURANTS IN OUR
COMMUNITY HAVE BEEN SERVING
FOOD FOR FREE TO THOSE IN THE
COMMUNITY.
IF THEY CAN GIVE BIG DURING A
TIME WHEN THEY ARE LOSING THE
MOST, THE BIG CORPORATIONS CAN
AFFORD THIS.
>> THANK YOU SO MUCH. THE NEXT
THREE PEOPLE WILL BE THE LAST
THREE TO PEEP.
JOHN, MATTHEW AND DANIEL.
JOHN, ARE YOU AVAILABLE?
>> YES, CAN YOU HEAR ME?
>> YES, THANK YOU.
>> MY NAME IS JOHN SCANLON AND
I'M AN ATTORNEY THAT RENTAL
SMALL BUSINESS REPRESENTING
EMPLOYEES IN ADMINISTRATIVE
HEARINGS AND OTHERS IN THE
NINTH CIRCUIT. MY OFFICE IS IN
THE INTERNATIONAL DISTRIC.
BEFORE I WAS AN ATTORNEY, I WAS
A CITY EMPLOYEE WAS ACTIVE IN
INDUSTRIAL LOCAL 139.
I WANT TO SPEAK IN FAVOR OF THE
TASK BUT ONLY IF THERE IS TOTAL
TRANSPARENCY AND ACCOUNTABILITY
AND HOW THE MONEY IS SPENT.
I AM SKEPTICAL IF THIS WILL BE
DONE PROPERLY IF THE PAST
PROCEDURES AND LEGISLATION ARE
FOLLOWED. WE HEARD HOW THE
FUNDS WILL BE TARGETED TO SMALL
BUSINESS AS PART OF THE RELIEF,
BUT WE'VE ALSO HEARD HOW THE
MONEY WAS SPENT. MEANWHILE,
STATE GOVERNMENT HAS NOT BEEN
RECEPTIVE TO DISCLOSURE DURING
THE COVID CRISIS NOT CALLING IT
AN ESSENTIAL BUSINESS.
THIS GROUP NEEDS TO PUBLICIZE
HOW THE MONEY IS SPENT. PUBLIC
DISCLOSURE IS AN ESSENTIAL
BUSINESS AND TRANSPARENCY IS
ESSENTIAL. IF THIS TAX IS
PASSED,
>> THANK YOU.
MATTHEW SMITH.
>> HI, MY NAME IS MATT SMITH
AND I WORK FOR AMAZON IS A
CONTRACTED CARGO HANDLER.
I LIVE IN DISTRICT 2 AND I WANT
TO THANK CONGRESS
COUNCILMEMBERS SAWANT AND
MORALES . THEY HAVE SENT CARGO
HANDLERS HOME AND THEY ARE
GIVING US -- MEANWHILE I
CONTINUE TO PAY TAXES.
MEANWHILE, AMAZON IS MAKING
$11,000 PER SECOND DURING THIS
CRISIS. THEY ARE NOT USING THE
MONEY TO SUPPORT PEOPLE LIKE ME
WHO ARE WORKING FOR THEM AND
THEY ARE LEAVING US IN POVERTY.
JEFF BEZOS HAS INCREASED BY $24
BILLION SINCE THE CRISIS BEGAN.
WE NEED TO TAX OF AMAZON.
I STAND UP WITH COUNCILMEMBER
GONZALEZ INCLUDING POLITICIANS
LIKE COUNCILMEMBER SAWANT .
>> THANK YOU VERY MUCH.
DANIEL WANG.
>> HI. MY NAME IS DANIEL AND
I'M A STUDENT IN DISTRICT 4,
COUNCILMEMBER PEDERSEN'S
DISTRICT.
THE TAXES BAD ECONOMICS WITH
THE JOB CREATION. I MAY BE MORE
RECEPTIVE TO THIS LINE OF
THINKING IF AMAZON WERE
PROVIDING ADEQUATE WORKING
CONDITIONS AND PPE AND
COMPENSATION LIKE HAZARD PAY
AND PAID SICK LEAVE.
AMAZON IS PUNISHING WORKERS WHO
SPEAK OUT FOR MORE FAIR WORKING
CONDITIONS AND OFTEN FIRING
THEM.
WE SHOULD BE CONSIDERING
WHETHER OR NOT IT IS SAFE TO
WORK AND WHETHER OR NOT WORKERS
WILL BE COMPENSATED FAIRLY. I
HOPE THE COUNCIL WILL KEEP THIS
IN MIND AND MOVING FORWARD WILL
SUPPORT THIS ACT.
THANK YOU.
>>> COLLEAGUES, THAT IS THE
EXTENSION OF THE 20 MINUTE TIME
PERIOD. WE HAD TWO PEOPLE WHO
WERE NOT AVAILABLE. I WILL:
SARAH NELSON AND MARGARET KERRY
AND THEN WE WILL WRAP UP.
SARAH AND ELSA, GO AHEAD.
>> HELLO AND THANK YOU FOR
INCLUDING ME.
I'M GOING TO SCRAP MY
PREVIOUSLY PREPARED REMARKS TO
RESPOND TO PEOPLE THAT CLAIM TO
SUPPORT SMALL BUSINESSES.
SEATTLE IS AN ECOSYSTEM AND
WHILE IT MAY FEEL GOOD TO SAY
YOU ARE TAXING AMAZON AND OTHER
BIG BUSINESSES, THOSE BIG
BUSINESSES CONTRACT WITH
ELECTRICIANS AND TRACTORS AND
FLORISTS.
THEIR EMPLOYEES BUY, EAT AND
DRINK AT THE BUSINESSES THAT
MAKE SEATTLE SUCH A GREAT PLACE
TO LIVE. THE COUNCIL SHOULD BE
DOING EVERYTHING POSSIBLE TO
SUPPORT BUSINESSES OF ALL
SIZES.
AND THEY SHOULD FOCUS ON THE
RECOVERY SO PEOPLE STAY
EMPLOYED AND MOVE ON.
THAT'S IT.
>> THANK YOU SARAH.
>> MARGARET KERRY, THANK YOU
FOR CALLING IN.
>> THANK YOU.
MY NAME IS MARGARET KERRY AND I
AM A MEMBER OF THE MLK COUNTY
WORKING FAMILIES PARTY.
I WANT TO SPEAK IN SUPPORT OF
THE TAX PACKAGE THAT WOULD LEVY
A TAX ON BIG BUSINESSES. WE ARE
AT A DECISION POINT ON HOW WE
WILL, AS A COMMUNITY, ADDRESS
THIS MOMENT AS THOUSANDS ARE
LOSING THEIR JOBS, THEIR HEALTH
INSURANCE AND THEIR HOMES.
WILL WE COME TOGETHER AND
EVERYONE AY THEIR FAIR SHARE?
>> SEATTLE HAS ONE OF THE MOST
PROGRESSIVE TAX STRUCTURES IN
THE COUNTRY ACCORDING TO THE
ECONOMIC OPPORTUNITY.
HOUSEHOLDS PAY 11% AND STATE OR
LOCAL TAXES.
LOW INCOME FAMILIES PAY 15%.
THIS WILL PROVIDE NEEDED
ASSISTANCE THAT MANY IN SEATTLE
DESPERATELY NEED WHILE ASKING
SEATTLE'S LARGEST CORPORATIONS
TO JOIN AS NEIGHBORS TO PAY
THEIR FAIR SHARE.
THANK YOU.
>> THANK YOU MARGARET.
>> COUNCILMEMBERS, I APPRECIATE
YOUR ATTENTION TO THE PUBLIC
TESTIMONY AND I WANT TO THANK
THE COMMUNICATIONS STAFF IN THE
IT STAFF AND THE CLERK'S OFFICE
TO MAKE SURE THAT PUBLIC
COMMENT WAS POSSIBLE. THANK YOU
FOR TESTING THIS OUT AND WE
APPRECIATE YOUR FEEDBACK AS WE
LOOK TO IMPROVE PUBLIC TESTIMONY
AND ENGAGE IN OPPORTUNITIES AT
FUTURE MEETINGS.
FOR THE INDIVIDUALS NOT ABLE TO
SPEAK, WE WILL SEND AN EMAIL
INSTRUCTING INDIVIDUALS HOW TO
SEND PUBLIC COMMENT TO OUR
OFFICES SO WE DON'T MISS A BEAT
AND GETTING YOUR FEEDBACK.
ON TOP OF THAT, I WANT TO THANK
EVERYONE WHO DIALED IN. WE TRY
TO MAKE SURE PUBLIC COMMENT IS
AVAILABLE AT THESE MEETINGS AND
YOUR COMMENTS ARE IMPORTANT AND
THEY WILL HELP SHAPE FUTURE
LEGISLATION.
MOVING TO ITEM D, WILL THE
CLERK READ INTO THE RECORD,
ITEM NUMBER ONE UNDER ITEMS OF
BUSINESS?
>> AGENDA ITEM NUMBER ONE.
ECONOMIC REVENUE UPDATE.
>> THANK YOU SO MUCH. WITH US
WE HAVE DIRECTOR NOBLE ON THE
LINE. THANK YOU FOR BEING WITH
US STARTING AT 11:00.
WE APPRECIATE YOUR TIME. NEXT
IS A PRESENTATION THAT WILL
ALLOW US TO GO THROUGH THE
EXISTING BUDGETS. I'M SORRY,
THE EXISTING IMPACT OF THE
BUDGET DUE TO THE CORONAVIRUS
CRISIS. I AM GOING TO ALLOW
FOLKS TO -- I'M GOING TO ALLOW
FOR THE PRESENTERS TO GET
THROUGH THEIR ENTIRE
PRESENTATION FIRST AND THEN I
WILL GO THROUGH EACH
COUNCILMEMBER AND ASK IF THEY
HAVE ONE OR TWO QUESTIONS THAT
THEY ARTICULATE THOSE QUESTIONS
. WE WILL GET THROUGH THE
QUESTIONS AND ENSURE WE HEAR
THE ENTIRE PRESENTATION.
THERE WERE A NUMBER OF QUESTIONS
ANSWERED BY THE SUBSEQUENT
SLIDES.
I URGE FOLKS TO WRITE-DOWN YOUR
QUESTIONS AND THEN I WILL GO
THROUGH THE ORDER OF
COUNCILMEMBERS BY THE WAY WE
WERE CALLED INTO THE RECORD
TODAY.
YOU WILL HAVE A CHANCE TO ASK
YOUR QUESTIONS BEFORE WE MOVED
TO THIS AGENDA ITEM. WITH THAT
DIRECTOR NOBLE, I WILL TURN IT
OVER TO YOU. COUNCILMEMBER
COLLINS YOU SHOULD HAVE A LINK
IN THE AGENDA THAT HAS BEEN
SHARED BY THE OFFICE.
HE WILL SHARE BY ZOOM SO THE
PUBLIC CAN SEE IT ALONG WITH
COUNCILMEMBER COLLEAGUES.
THANK YOU FOR WALKING THROUGH
THE NUMBERS WITH HOW THE
ECONOMY AND THE BUDGET ARE
IMPACTED BY CORONAVIRUS ALONG
WITH PROJECTIONS YOU HAVE FOR
NEAR-TERM AND LONG-TERM REVENUE
DOWNTURNS SO THAT WE CAN BE
PREPARED AND RESPOND.
>> THANK YOU VERY MUCH FOR THE
OPPORTUNITY TO SPEAK TO YOU
TODAY AND PROVIDE THIS
INFORMATION.
I WILL MOVE QUICKLY HERE. I
WILL PUT MY PRESENTATION ON THE
SCREEN AND THEN WALK YOU
THROUGH IT.
YOU WILL SEE DATING I'M SORRY,
LET ME TRY TO GET IT HERE.
>> IT LOOKS LIKE IT IS WORKING.
>> EXCELLENT.
>> THANK YOU.
>> THIS IS A PRETTY TECHNICAL
PRESENTATION AND I WILL MOVE
THROUGH IT AND TAKE QUESTIONS
AT THE END.
THIS IS A TIME WHEN WE WOULD
NORMALLY BRING YOU A REVENUE
FORECAST UPDATE.
OBVIOUSLY, THE CIRCUMSTANCES
ARE UNUSUAL. NONETHELESS, THE
OVERALL PRESENTATION IS
CONSISTENT WITH THE WAY WE HAVE
PROVIDED THE INFORMATION
PREVIOUSLY.
THE REVENUE FORECAST IS
ULTIMATELY BUILT FROM
INFORMATION FROM A NATIONAL
FORECAST WHICH WE THEN PROJECT
ECONOMIC CONDITIONS.
>> MR. NOBLE?
>> YES?
>> I APOLOGIZE.
IT IS HARD TO HEAR YOU BECAUSE
OF STATIC. WOULD YOU ANGLE YOUR
CAMERA TOWARD YOUR FACE SO WE
CAN READ YOUR LIPS WHILE YOU DO
THE PRESENTATION.
THANK YOU SO MUCH.
>> YES, ABSOLUTELY. SO WE HAVE
A NATIONAL FORECAST THAT FEEDS
THE REGIONAL ECONOMIC MODEL
WHICH IN TURN IS THE BASIS FOR
THE ECONOMIC FORECAST FOR THE
CITY. I'M GOING TO START BY
GIVING INFORMATION ABOUT THE
NATIONAL FORECAST. ONE THING
THAT WILL BE UNUSUAL ABOUT THIS
PRESENTATION IS THAT WE USUALLY
PROVIDE A SINGLE FORECAST. THE
INFORMATION WE GET AT THE
NATIONAL LEVEL USUALLY HAS A
STRONG CONSENSUS FIGURE THAT IS
THE FORECAST.
THEY OFTEN ACKNOWLEDGE
UNCERTAINTY, BUT THEY HAVE SORT
OF AN AGREED-UPON EXPECTATION.
CURRENTLY, THINGS ARE SO
UNCERTAIN THAT THEY HAVE
DEVELOPED THREE SEPARATE
FORECASTS. THE BASELINE FORECAST
AND A PESSIMISTIC FORECAST AS
WELL AS AN OPTIMISTIC FORECAST.
WHAT IS UNUSUAL IS THE RELATIVE
PROBABILITY THEY HAVE ASSIGNED
TO THE BASELINE OF THE PACE
MYSTIC FORECAST IS ALMOST THE
SAME.
IN SOME WAYS IT EQUATES.
WE WON'T SPEND MUCH TIME
TALKING ABOUT THE OPTIMISTIC
FORECAST BECAUSE IT HAS BEEN
LARGELY SURPASSED BY EVENTS ON
THE GROUND.
THIS WAS DEVELOPED A LITTLE
WHILE AGO AND GIVEN THE RECENT
FILINGS FOR UNEMPLOYMENT, IT
APPEARS WE ARE NOT NEAR AN
OPTIMISTIC FORECAST AT THIS
POINT. WE WILL FOCUS ON THE
BASELINE AND UP AND PESSIMISTIC
FORECAST AND HOW THEY TRANSLATE
TO THE REGIONAL FORECAST. THESE
ARE BOTH FORECASTS THAT
ANTICIPATE A RECESSION AND A
RELATIVELY DEEP RECESSION AT
THAT.
THE KEY ASSUMPTION BEHIND THE
BASELINE AND THE PESSIMISTIC
FORECAST IS THAT BY THE
BEGINNING OF THE THIRD QUARTER,
BY THE BEGINNING OF JULY, THERE
WILL BE LOOSENING OF THE
CURRENT SOCIAL DISTANCING
STANDARDS AND RESTRICTIONS. THE
DIFFERENCE BETWEEN THE
FORECASTS HAS TO DO WITH THE
RATE OF RECOVERY. WELL, REALLY
TWO THINGS.
THE DEPTH OF THE IMPACT IN THE
RATE OF THE RECOVERY AFTERWARDS
. THE BASELINE SCENARIO WITH A
DEEP RECESSION. A GDP DROP OR
SIGNS OF THE U.S. ECONOMY
DROPPING BY MORE THAN 5% AND
UNEMPLOYMENT PEAKING AT MORE
THAN 10%. THE PESSIMISTIC
SCENARIO, WHICH IS ALMOST EQUAL
HAS A GDP DROP AND THE OVERALL
U.S. ECONOMY SHRINKING BY 15%
AND UNEMPLOYMENT PEAKING AT
NEARLY 22%.
TO PUT THAT INTO HISTORICAL
CONTEXT, THE DEPRESSION LEVEL
UNEMPLOYMENT RATES WERE AT 25%
OR SOMEWHAT HIGHER. WE ARE
TALKING ABOUT A DRAMATIC IMPACT
. I WILL MAKE A COUPLE OF MORE
COMMENTS WHEN WE MOVED TO THE
REGIONAL FORECAST.
IT IS IMPORTANT TO REALIZE THAT
ALL OF THESE SCENARIOS
ANTICIPATE THE FIRST ELEMENTS
OF THE STIMULUS THAT HAS BEEN
PROVIDED BY THE FEDERAL
GOVERNMENT AS WELL AS THE
MONETARY POLICIES ADOPTED BY
THE FEDERAL RESERVE. ADDITIONAL
STIMULUS INVESTMENTS MIGHT HELP
MITIGATE SOME OF THE IMPACTS
BUT THE OVERALL MESSAGE IS THAT
THE ECONOMIC IMPACTS ARE OF A
SCALE THAT CANNOT BE FULLY
MITIGATED BY STIMULUS OVERALL.
>> SO, MOVING TO TALK MORE
ABOUT HOW WE DEVELOP THE
REGIONAL FORECAST. I THOUGHT IT
WAS IMPORTANT TO GIVE YOU A
SENSE OF THAT GIVEN THE
IMPORTANCE OF THE FORECAST
HERE.
WE HAVE A MODEL THAT CAPTURES
THE OVERALL ECONOMIC ACTIVITY
FOR THE SEATTLE AREA.
WE HAVE LARGELY DEFINED THAT TO
BE KING AND SNOHOMISH COUNTIES
TOGETHER.
WE HAVE TAKEN INPUTS TO THIS
MODEL AND THE FORECAST YOU JUST
SAW AND THE FUNDAMENTALS THEY
SUGGEST. INCOME GROWTH,
UNEMPLOYMENT LEVELS, INFLATION.
THERE IS REGIONAL INFORMATION
WE FEED IN AS WELL.
UNEMPLOYMENT DATA, WE USE SOME
DATA FROM SDC I TO LOOK AT THE
METRIC FOR THE CONSTRUCTION
SECTOR.
THAT MODEL THEN KICKS OUT
ESTIMATES FOR OUR LOCAL ECONOMY
OF THINGS LIKE OVERALL
PRODUCTIVITY. A VERSION OF THE
GDP FOR THE REGIONAL ECONOMY.
PERSONAL INCOME AND EMPLOYMENT
LEVELS AND INFLATION AND THE
LIKE.
THEN WE TAKE THAT MODEL AND IN
TURN WE HAVE HISTORICAL DATA
ABOUT THE CORRELATION BETWEEN
THOSE KEY ELEMENTS OF THE LOCAL
ECONOMY AT A SECTOR LEVEL AND
THEN THOSE IMPACTS AND HOW THEY
DRIVE OUR ACTUAL REVENUES. YOU
WILL SEE THAT IN JUST A SECOND
HERE. FOR THE SAKE OF
DISCUSSION MOVING FORWARD, WE
HAVE CHARACTERIZED AND MAPS THE
BASELINE SCENARIO FORECAST AT
THE NATIONAL LEVEL TO WHAT WE
CALL A RAPID RECOVERY SCENARIO
AND THE PESSIMISTIC SCENARIO
WHICH IS A SLOW RECOVERY
SCENARIO AND YOU WILL HEAR THAT
LANGUAGE GOING FORWARD. I WANT
TO EMPHASIZE THE SLOW RECOVERY
IS BOTH A DEEPER RECESSION AND
A SLOWER RECOVERY. IT'S NOT
JUST THE BASIC RECOVERY, IT IS
ALSO THE IMPACTS THAT AGAIN YOU
WILL SEE THAT AS WE MOVE
THROUGH HERE. THIS NEXT SLIDE
HIGHLIGHTS GRAPHICALLY AND WITH
SOME BULLETS HOW THE NATIONAL
FORECAST TRANSLATES TO OUR
REGIONAL LEVEL.
I WANT TO TAKE A MOMENT TO
POINT OUT THAT I WILL TALK
ABOUT THIS WITH RAW STATISTICS.
WHAT IS DESCRIBED HERE IS A
TRUE ECONOMIC CRISIS WITH REAL
IMPACTS THROUGHOUT THIS REGION.
FOR THOSE WHO HAVE LOST THEIR
JOBS OR WILL LOSE THEIR JOBS OR
BASIC CUTS IN INCOME AND PAY
AND THE LIKE. SO THAT IS NOT
WASTED ON US, WE ARE WORKING IN
THE SPACE THAT WE WANT TO
ACKNOWLEDGE THAT AS WE MOVE
FORWARD. SO, THE DARKER RED
LINE AND THE GRAPHICS
CORRESPONDS TO THE MORE
PESSIMISTIC SLOW RECOVERY
SCENARIO.
THE ORANGE LINE IS THE MORE
RAPID RECOVERY AND THE LESS
DEEP RECESSION. THE GREAT IS TO
ESSENTIALLY TRACK WHAT WOULD
HAVE OTHERWISE BEEN.
SO, COUPLE OF THINGS TO NOTE.
ONE IS HOW LARGE THE IMPACTS ARE
IN BOTH SCENARIOS.
THERE IS A HIGH PROBABILITY OF
SLOWER RECOVERY.
THIS IS A CORE ELEMENT OF THE
OVERALL FORECAST. YOU CAN SEE
JOB LOSSES OF 170,000 AND
UNEMPLOYMENT PEAKING AT 18%. I
NEED TO MAKE A CORRECTION IN
THE TYPO ON THIS.
THE INCOME PER CAPITA WOULD
DROP BY 22 1/2% AND NOT 12 1/2%
AND THOSE ARE BIG ECONOMIC
IMPACTS.
I ALSO WANT TO HIGHLIGHT THE
LENGTH OF THE RECOVERY.
THIS IS NOT JUST A 2020
CHALLENGE. THE EXPECTATION IS
THAT IT WILL BE MULTIPLE YEARS
BEFORE WE GROW OUT OF THIS AND
THESE IMPACTS.
AGAIN, THE SLOW RECOVERY WELL
INTO 2024 BEFORE WE SEE A FULL
RECOVERY. TO GIVE YOU CONTEXT,
THE GREAT RECESSION JOB LOSS
WAS 100,000 JOBS WITH
UNEMPLOYMENT PEAKING AT AROUND
10%, LOCALLY. SO THE SEVERE
SCENARIO WITH THE SLOW RECOVERY
IS SUBSTANTIALLY MORE IMPACTFUL
THAN THE GREAT RECESSION OF
2008.
SO WITH SOME SCALE AND CONTEXT
OF WHAT WE ARE SEEING HERE.
MOVING FORWARD, I WANT TO
DESCRIBE TO YOU ONE OF THE
CHALLENGES IN THIS IS HOW MUCH
UNCERTAINTY WE ARE FACING.
A LOT OF THAT DERIVES FROM THE
LAG OR THE TIME BETWEEN WHEN
TAXES ARE ACCRUED AS BEING DUE
AND WHEN THEY ARE ACTUALLY
PAID.
SO, THIS GRAPHIC, THE BIGGEST
POINT ABOUT THIS IS THAT WE ARE
ONLY JUST NOW STARTING TO SEE
ACTUAL TAX RECEIPT DATA FROM
THE PERIOD OF THE CRISIS.
WHAT IS LISTED ON THIS TABLE
ARE THE FOUR LARGEST COMPONENTS
OF THE GENERAL FUND. PROPERTY
TAXES, BUSINESS OCCUPATION TAX,
SALES TAX AND UTILITY TAXES. I
HAVE ALSO INCLUDED REAL ESTATE
EXCISE TAX HERE FOR TWO
REASONS.
IT IS NOT TECHNICALLY IN THE
GENERAL FUND.
I INCLUDED IT BECAUSE ONE IT IS
A SUBSTANTIAL REVENUE SOURCE
AND SUPPORTING CAPITAL
PROJECTS.
SO, THE MAJOR MAINTENANCE AND
THE HEATING AND COOLING FOR THE
FACILITIES THAT WE USE TO
PROVIDE BASIC SERVICES LIKE
LIBRARIES AND COMMUNITY CENTERS.
IT IS AN IMPORTANT REVENUE
SOURCE.
IT WAS $100 MILLION IN REVENUE
IN 2019.
THE OTHER THING IS THAT IT
COMES IN MONTHLY WITH A
RELATIVELY SHORT LAG. IT IS ONE
OF FEW RESOURCES WHERE WE WILL
GET RELATIVELY TIMELY
INFORMATION AND IT MAY HELP
INFORM OUR SENSE OF WHERE THE
OVERALL ECONOMY IS.
MOVING BACK TO JUST REVIEW THIS
AND TO EMPHASIZE THE CHALLENGE
WE WILL HAVE RIGHT NOW IN TERMS
OF THE DATA WE HAVE AND ALSO
GOING FORWARD IN MEASURING AND
TRACKING WHERE WE ARE. PROPERTY
TAXES ARE PAID TWICE PER YEAR.
USUALLY IN APRIL AND OCTOBER.
THE APRIL DUE DATE HAS BEEN,
POSTPONED UNTIL JUNE TO PROVIDE
SOME RELIEF. IN GENERAL,
PROPERTY TAXES HAVE BEEN A
SOLID AND DEPENDABLE REVENUE
SOURCE, EVEN THROUGH RECESSION.
WE SAW A RELATIVELY SMALL
INCREASES IN DELINQUENCIES
DURING THE GREAT RECESSION. YOU
WILL SEE THE FORECAST IS NOT
ANTICIPATING A BIG DROP IN
PROPERTY TAXES, BUT CLEARLY
THIS IS AN ELEMENT OF CONCERN
GIVEN THE POTENTIALLY HISTORIC
LEVELS OF UNEMPLOYMENT AND
PEOPLE'S ABILITY TO MAKE THE
TAX PAYMENTS. THIS IS AN
OCCUPATION TAX THAT IS PAID FOR
THE MOST PART ON A QUARTERLY
BASIS.
THE TAXES ARE NOT DUE UNTIL A
MONTH AFTER THE END OF THE
QUARTER. SOME BUSINESS
OCCUPATION TAXES THROUGH MARCH
ARE NOT DUE UNTIL THE END OF
APRIL AND THEN IT TAKES TIME TO
COMPILE THE INFORMATION.
SO, THERE IS A THREE MONTH
DELAY FROM THE BEGINNING OF THE
QUARTER AND THEN ANOTHER MONTH
TO ACTUALLY GET THE INFORMATION
. SALES TAX COMES IN MORE
FREQUENTLY WITH A COMPARABLE
DELAY.
UTILITY TAX HAS A DELAY. WE ARE
CONSTANTLY IN A BACKWARD
LOOKING VIEW IN TERMS OF THE
INFORMATION WE ARE GATHERING.
WE ARE LOOKING TO FIND SOME
MEASURES THAT ARE MORE TIMELY
SO WE CAN KEEP TRACK. AGAIN, I
WANT TO EMPHASIZE WE DON'T HAVE
A LOT OF INFORMATION YET OR
WHAT THESE IMPACTS ARE GOING TO
BE.
WE WILL CONTINUE TO MONITOR
THIS GOING FORWARD.
>> THAT SAID, WE NEED A
FORECAST AND AS A BASIS FOR
ACTING NOW, WE NEED TO DEVELOP
THAT WITH THIS SLIM INFORMATION
. THE NEXT SLIDES ARE DESIGNED
TO HIGHLIGHT THE POTENTIAL
IMPACTS ON THESE KEY REVENUE
RESOURCES TO THE GENERAL FUND.
I'M TALKING ABOUT SALES TAX AND
B&O TAX. SALES TAX PROVIDES
MORE THAN $250 MILLION TO THE
CITY'S GENERAL FUND.
AGAIN, WHAT I'M EMPHASIZING
HERE IS THAT ALTHOUGH WE DON'T
HAVE INFORMATION REGARDING
ACTUAL DATA, WE KNOW THAT
COMPONENTS AND THERE IS EVERY
REASON TO ANTICIPATE
SIGNIFICANT IMPACTS.
I WANT TO HIGHLIGHT THE KEY
SECTORS THAT CONTRIBUTE TO THE
SALES TAX AND SO YOU CAN SEE
WHY WE ARE ANTICIPATING THE
IMPACT.
THIS WILL TAKE TIME TO
HIGHLIGHT THE COMPONENTS.
THE LARGEST SINGLE COMPONENT IS
THE BLUE SHADED AREA IN THIS
GRAPHIC. IT'S FROM WHOLESALE
AND RETAIL TRADE. THAT IS
INDIVIDUALS SHOPPING FOR
TAXABLE GOODS.
AND BUSINESSES PURCHASING GOODS
FROM ONE ANOTHER AS WELL. IN
THE CURRENT ENVIRONMENT, MUCH
OF THAT IS NOT HAPPENING.
THE GRAY SHARE IS THE OPPOSITE
IN THE CIRCLE DIAGRAM FOR
CONSTRUCTION.
IT HAD MADE UP 27% OF SALES TAX
AND A SIGNIFICANT COMPONENT.
CURRENTLY, THE RULES ARE BEING
MODIFIED AS WE SPEAK.
FOR SOME TIME, CONSTRUCTION WAS
NOT DESIGNATED AND IN SOCIAL
FUNCTION AND MANY JOBSITES WERE
CLOSED DOWN.
EVEN WHEN THE RESTRICTIONS ARE
LOOSENED, THERE IS QUESTION
WITH HOW MUCH RESUMES. HISTORY
SUGGESTS THAT MANY PROJECTS
WILL BE FOLLOWED THROUGH TO
COMPLETION BECAUSE THEY WILL OF
BEEN FINANCED AND THERE IS A
TIP TO COMPLETE TO PAY OFF
LOANS AND THE LIKE.
WHETHER NEW PROJECTS ARE
INITIATED WILL BE AN OPEN
QUESTION. WE EXPECT A FALL OFF
IN THE OVERALL LEVEL OF
CONSTRUCTION. IT HAS BEEN A
HUGE COMPONENT OF SALES TAX.
THE ORANGE PIECE OF THE PIE IS
FOOD-SERVICE ACCOMMODATION AND
RECREATION.
THAT IS LOCAL RESIDENTS EATING
OUT AND ENGAGING IN
ENTERTAINMENT.
ALSO, ALONG WITH THE COMPONENTS
OF THE BLUE PIECE OF THE CHART,
IT IS THE TOURISM INDUSTRY. WE
HAVE EVERY REASON TO THINK THAT
IT WILL BE DRAMATICALLY SMALLER
THAN IT HAS BEEN IN THE PAST.
IT HAS TRADITIONALLY BEEN
STRONGEST IN THE SUMMER. SALES
TAX WILL BE SIGNIFICANTLY
IMPACTED.
BUSINESS AND OCCUPATION TAX IN
TOTAL IS A COMPARABLE SHARE OF
THE REVENUE STREAM INTO THE
GENERAL FUND. WELL NORTH OF
$250 MILLION. WHICH YOU CAN SEE
IN LOOKING AT THE PIE CHART HERE
, THE B&O TAX IS MORE BROADLY
BASED.
IT IS NOT AS RELIANT ON ANY
SINGLE SECTOR OR GROUP OF
SECTORS. HOWEVER, IF YOU LOOK
AROUND AT THE CHART, YOU WILL
SEE THAT VIRTUALLY ALL OF THESE
SECTORS OF THE WHOLESALE AND
RETAIL TRADE AND CONSTRUCTION
THAT WE HAVE TALKED ABOUT.
ALSO PROFESSIONAL SERVICES.
DOCTORS AND DENTISTS AND THE
LIKE.
LAWYERS. ALL OF THESE
INDUSTRIES ARE IMPACTED. WE ARE
ANTICIPATING SMALLER IMPACTS ON
B&O BECAUSE IT ISN'T IMPACTED
BY THE SECTORS MOST TRUE
INFECTED BUT WE ARE EXPECTING
IMPACTS ON THE REVENUE AS WELL.
AGAIN, BOTH SALES AND B&O ARE
20% OF THE GENERAL FUND AND
OVER ALL WE ARE TALKING A
SIGNIFICANT SHARE OF THOSE
REVENUES.
>> THE NEXT SHOWS THAT IT
FOCUSES SPECIFICALLY ON REVENUE
. WE ARE NO LONGER TALKING
ABOUT THE BROADER ECONOMY.
THESE ARE THE GENERAL FUND
REVENUES.
REPORTED IN BILLIONS OF DOLLARS
AND WE REPRESENT THEM IN
MILLIONS TO MAKE THE CHART MORE
LEGIBLE.
AND AT LEAST TWO THINGS TO NOTE
. ONE IS THE DEPTH OF THE
DECREASE. THE MAGNITUDE OF THE
LOST REVENUES. WE WILL SHOW YOU
THOSE IN SPECIFIC IN JUST A
MOMENT. ALSO THE DURATION OF
WHAT WE ARE TALKING ABOUT.
AGAIN EMPHASIZING THIS IS JUST
NOT A 2020 ISSUE. WE WILL SEE
THE GRAY LINE ON THIS GRAPH IS
A TREND WE HAVE BEEN ON
OTHERWISE IN TERMS OF GROWTH
AND EXPENDITURES.
YOU CAN SEE THAT EVEN BY THE
END OF 2022, WE ARE ENGAGED IN
THE PROCESS OF REBALANCING THE
2020 BUDGET AND STARTING TO
REBUILD THE BIENNIAL PROPOSAL
FOR 21 AND 22. THERE ARE
SIGNIFICANT REVENUE IMPACTS 421
AND 22 AND AS WE BUILD THOSE
BUDGETS, WE WILL HAVE TO MAKE
ADJUSTMENTS IN THE LEVEL OF
SPENDING THE CITY UNDERTAKES
WITH ALL THINGS BEING EQUAL.
SO, WE WILL NOT BE BACK TO THE
LEVELS OF REVENUE THAT WE HAVE
OTHERWISE TAKEN IN FOR MULTIPLE
YEARS AFTER AS WELL. SO, THERE
WILL BE LARGE IMPACTS THAT
ENDURE FOR A LONG PERIOD OF
TIME.
>> NOW, WE GET TO THE ACTUAL
NUMBERS.
I'M GOING TO TAKE A MOMENT TO
DESCRIBE WHAT IS ON THIS CHART
SO YOU CAN SEE IT IN DETAIL.
ON THE LEFT SIDE IS A LIST OF
MAJOR REVENUE SOURCES.
PARTICULARLY INTO THE GENERAL
FUND WITH PROPERTY TAX AND
SALES TAX AND B&O TAX. WE HAVE
TALKED ABOUT IT TO SOME DEGREE.
YOU HAVE SEEN THE REVENUE
IMPACTS ARE SIGNIFICANT. THIS
IS REVENUE ASSOCIATED WITH
REVENUE FROM PARKING METERS.
THAT LEADS TO A GENERAL FUND
TOTAL. I WILL COME BACK AND
TALK ABOUT IT IN DETAIL THERE.
ALTHOUGH WE DON'T USUALLY
REPORT PROPRIETARY REVENUES
FROM SEATTLE PARKS AND
RECREATION BECAUSE THEY DON'T
TYPICALLY FLOW INTO THE GENERAL
FUND AND THEY ARE NOT USUALLY
PART OF THIS FORECAST.
THEY ALSO DON'T USUALLY CHANGE
VERY MUCH.
TYPICALLY THEY ARE STEADY
REVENUE SOURCES AND A CHANGE
BECAUSE OF THE OR RATE
INCREASES.
OBVIOUSLY, UNDER THE CURRENT
CONDITIONS THAT YOU CAN SEE IN
THESE FORECASTS, WE ARE
EXPECTING DRAMATIC IMPACTS ON
THOSE REVENUES WHICH SUPPORT
THE BASIC ACTIVITIES AND
SERVICES THAT ARE PROVIDED BY
THE SALES CENTER AND BY PARKS
AND RECREATION.
SO, I THINK WE NEED, IF HER
GOING TO MAINTAIN THESE
RESOURCES, TO MAKE UP FOR THE
SHORTFALLS BECAUSE THEY HAVE NO
WAY UNDER CURRENT CONDITIONS.
IT'S IMPORTANT TO HIGHLIGHT
THESE TO MAKE SURE WERE NOT
UNDERSTATING THE IMPACTS TO THE
BUDGET. AND GOING UP TO TALK
ABOUT THE SPECIFICS, THE FIRST
COLUMN OF NUMBERS IS THE TAX
THAT WE TOOK IN FOR 2019.
THE 2020 BUDGET IS THE BUDGET
TO WHICH WE ARE BALANCED. THE
2020 FIGURE REVISED IS THE
FORECAST WE PRESENT TO YOU NOW.
YOU CAN SEE THE CHANGE
HIGHLIGHTED IN RED BECAUSE
THESE WERE ALL DECREASES. THAT
WE HAVE THE FORECAST FOR 2021
AND 2022.
THE REFERENCE TO APRIL IS THAT
THIS IS THE APRIL FORECAST AND
WE WILL UPDATE THEM AGAIN WHEN
WE BRING YOU THE FORECAST IN
AUGUST AND SEPTEMBER TIMEFRAME.
NOTICE THAT I AM NOT
ANTICIPATING A SIGNIFICANT DROP
OFF IN PROPERTY TAXES, BUT WE
NEED TO MONITOR TO SEE IF THAT
ACTUALLY PREVAILS.
THIS DROP IS CONSISTENT WITH
INCREASES IN DELINQUENCY WE SAW
WITH THE GREAT RECESSION.
CONDITIONS MAY BE DIFFERENT AND
WE NEED TO WATCH THAT.
WE WILL GET SOME INFORMATION
FROM PAYMENTS AND ADDITIONAL
INFORMATION IN JUNE AND OCTOBER
IF THINGS STAY ON A NORMAL
SCHEDULE. SALES TAX WILL DROP
WITH 25% OF THAT REVENUE STREAM
AND MAYBE MORE. UTILITY TAXES
WITH SMALLER DECREASES RELATIVE
TO THE FORECAST. DEMAND FOR
UTILITIES HAS DECLINED, BUT NOT
AS SUBSTANTIALLY AS OVERALL
ECONOMY. I MENTIONED SIGNS AND
PARKING.
WE MADE THE CHOICE TO STOP
COLLECTING PARKING METER FEES
TO PROVIDE ACCESS TO PARKING
FOR ESSENTIAL WORKERS WHO DO
NOT FEEL SAFE ON THE TRANSIT
SYSTEM OR THE TRANSIT IS NO
LONGER AVAILABLE AS THE METRO
HAS DECREASED LEVELS OF SERVICE.
THE OVERALL TOTAL IN THIS
FORECAST, AND I SHOULD HAVE
SAID THIS IS THE SLOW RECOVERY.
THE MORE PESSIMISTIC FORECAST.
EVEN THOUGH THERE IS A
RELATIVELY HIGH PROBABILITY
ASIDE FROM UP BUDGETARY
PERSPECTIVE, WE THINK WE WILL
ULTIMATELY NEED TO DEVELOP A
PLAN THAT COULD HANDLE THIS
SITUATION AND WE WILL TALK MORE
ABOUT OUR WORK IN THAT AREA.
>> THE OVERALL IMPACT TO THE
GENERAL FUND OF $185 MILLION.
NOTE TOO THAT THE RELATIVELY
MODEST GROWTH INTO 2021. THIS
WILL BE A CHALLENGE FOR 2021. I
STRONGER REBOUND INTO 2022.
GIVEN HOW FAR WE HAVE FALLEN,
NOT AT THE LEVELS OF SPENDING
WE HAD PLANNED EVEN FOR THIS
YEAR.
>> SEATTLE CENTER, THERE
REVENUES RELY ON RENTAL
PAYMENTS FROM ARTS AND
ENTERTAINMENT FUNCTIONS ON
CAMPUS.
THEY ARE NOT EARNING THOSE
REVENUES NOW AND ARE UNABLE TO
MAKE THOSE RENTAL PAYMENTS.
THEY ALSO HAVE COMMERCIAL
ACTIVITY.
PARKS AND RECREATION, THIS IS A
FORECAST OF LOST FEE AND EVENT
REVENUE FOR THAT DEPARTMENT AS
WELL.
MOVING TO THE NEXT PAGE, THESE
REVENUES STREAMS DO NOT
TECHNICALLY FLOW TO THE GENERAL
FUND, HOWEVER, THEY DO SUPPORT
GENERAL GOVERNMENT ACTIVITIES
AND ARE POTENTIALLY IMPACTS WE
WILL NEED TO ADDRESS IN TERMS
OF REBALANCING THE 2020 BUDGET.
PROBABLY THE LARGEST SINGLE
PERCENTAGE IMPACT IS THE
ADMISSIONS TAX WHICH OBVIOUSLY
RELIES ON TICKETED EVENTS.
MOVIES, SPORTING EVENTS AND THE
SPACE NEEDLE AND A FEW OTHER KEY
ENTERTAINMENT ELEMENTS. THOSE
ARE DRIVERS AND WE ARE
ANTICIPATING A SIGNIFICANT DROP
THERE. THE FUND DOES HAVE A BIT
OF A RESERVE.
THE IMPACTS DON'T HAVE TO BE AS
DRAMATIC. WE WON'T TALK ABOUT
THAT TODAY BUT PROBABLY IN THE
COMING WEEKS.
SHORT-TERM RENTAL TAX AND THE
AIRBNB TAX, WE ANTICIPATE A
SIGNIFICANT DROP THERE.
THE SODA TAX AND SWEET BEVERAGE
TAX WITH AGAIN A ALMOST 50% DROP
WITHOUT THE DAYTIME WORKING
CROWD GOING OUT FOR MEALS AND
ORDERING SODA. A SIGNIFICANT
LOSS. AND REAL ESTATE EXCISE
TAX.
NOT PARTICULARLY THE GENERAL
FUND, BUT SUPPORTING THE
GENERAL FUND.
A SIGNIFICANT DECLINE WITH 40%
OF WHAT WOULD OTHERWISE HAVE
BEEN ANTICIPATED.
THE TRANSPORTATION DISTRICT IS
SALES TAX RELIANT.
THE SALES TAX THAT SUPPORTS THE
DISTRICT WILL HAVE SIGNIFICANT
IMPACTS.
COMMERCIAL PARKING TAX AND THE
SCHOOLS ON SCHOOL ZONE.
TRANSPORTATION ACTIVITIES WITH
SIGNIFICANT DECLINES. THOSE NON-
GENERAL FUND COMPONENTS WITH
ANOTHER $80 MILLION OF IMPACT
FOR A TOTAL OF NEARLY $300
MILLION IN A GENERAL FUND
RELATED REVENUES THAT WE DO NOT
EXPECT TO SEE THAT WE HAVE
BUILT THE BUDGET TOWARDS. WE
WILL OBVIOUSLY NEED TO ADDRESS
THAT TO REBALANCE THE 2020
BUDGET AND MAKE SIGNIFICANT
CHANGES IN PROJECTED SPENDING.
THAT SAID, WE HAVE A NUMBER OF
RESERVES AND FUND BALANCES TO
HELP MITIGATE THESE IMPACTS SO
IT DOESN'T HAVE TO BE A $300
MILLION REDUCTION IN SPENDING,
BUT WE WILL NEED A REDUCTION
STRATEGY. WE ARE WORKING ON
THAT NOW AND EXPECT TO BRING
BACK A FULL PLAN SHORTLY.
I WANT TO GIVE YOU A SENSE OF
THE RESOURCES WE ARE LOOKING AT
TO ACHIEVE THAT AND TO MITIGATE
THE IMPACTS OF REDUCED SPENDING
. THE CITY HAS TWO SIGNIFICANT
RESERVES TO THE GENERAL FUND.
THE RAINY DAY FUND WHICH IS
TECHNICALLY CALLED THE REVENUE
STABILIZATION ACCOUNT.
IT IS INTENDED SPECIFICALLY TO
ADDRESS REVENUE SHORT FALLS.
SO, THE EXACT SITUATION WE ARE
IN NOW. AND THE URGENCY FUND
HAS ALMOST $67 MILLION IN IT.
BETWEEN THE TWO, $125 MILLION.
THE EMERGENCY FUND IS FOCUSED
ON IT ADDITIONAL EXPENDITURES
AND I WILL TALK ABOUT THE
IMPACTS OF MEDICATION.
WE DO THINK THERE IS
FLEXIBILITY IN THE EMERGENCY
FUND TO ADDRESS THE REST
REVENUE SHORTFALLS AT THE
UNPRECEDENTED LEVEL WE ARE
EXPECTING NOW. WE DO HAVE A
LITTLE BIT OF GOOD NEWS, IF YOU
WILL.
WE FINISHED THE 2019 A GOOD
DEAL AHEAD OF WHERE WE EXPECTED
IN TERMS OF GENERAL FUND
RESOURCES. MORE THAN 18 1/2
MILLION DOLLARS THAT WE CAN
APPLY TO THE CURRENT SITUATION.
WE ARE ALSO TAKING A VERY, VERY
HARD LOOK AT THE QUEST TO CARRY
FORWARD UNSPENT RESOURCES FROM
2019.
I THINK THERE IS A REQUEST FOR
THEM TO COMPLETE WORK THEY HAD
NOT MANAGED TO COMPLETE IN 2019
. WE NEED TO HAVE A RENEWED
LOOK AT THOSE REQUESTS AND WE
WILL BRING SOMETHING FORWARD AT
SOME POINT.
IT WILL BE A RELATIVELY MODEST
NATURE. WE HAVE TAKEN STEPS TO
REDUCE 2020 SPENDING AND SO
THERE IS A HIRING FREEZE FOR
POSITIONS NOT RELATED TO COVID
RESPONSE. THERE IS A WAIVER TO
MAKE SURE WE HAVE THE
INDIVIDUALS WE NEED TO PROVIDE
ESSENTIAL SERVICES FOR ALL. WE
HAVE ALSO TAKEN STEPS TO LIMIT
THE DEPARTMENTS EXECUTING NEW
CONSULTING CONTRACTS BECAUSE
THEY ARE NOT COVID RELATED OR
PROVIDING AN ESSENTIAL SERVICE.
WE HAVE ASKED FOR PROPOSALS WE
ARE NOW REVIEWING ABOUT HOW TO
ELIMINATE OR AT LEAST CURTAIL
NONESSENTIAL SPENDING OVERALL.
THAT FOR THE REMAINDER OF THE
YEAR. THERE ARE OTHER FUND
BALANCES AND ONE-TIME RESOURCES
THAT I MENTIONED THAT GEAR OUT
FOR THE 2019 GENERAL FUND SIDE.
WE ALSO FINISHED TO THE GOOD ON
THE REAL ESTATE EXCISE TAX
SIDE.
THERE WAS A STATE LAW THAT WAS
GOING TO INCREASE THE REAL
ESTATE EXCISE TAX AT THE STATE
LEVEL.
THAT INCREASED AT THE BEGINNING
OF JANUARY AND THERE WAS AN
INCENTIVE FOR TRANSACTIONS TO
BE COMPLETED BEFORE THE YEAR
END.
THERE WAS A SIGNIFICANT BUMP IN
COMMERCIAL TRANSACTIONS THAT
LED US TO FINISH THE YEAR ABOUT
$20 MILLION AHEAD TO HELP
DEDICATE THE $35 MILLION PLUS
THAT WE NOW EXPECT NOT TO
RECEIVE IN 2020.
THAT IS JUST ONE EXAMPLE OF THE
FUND BALANCES WE ARE REVIEWING.
WE ARE ALSO LOOKING AT THE
POTENTIAL OF THE USE OF LEVY
FUNDS AND PARK DISTRICT FUNDS.
THEY ARE VOTER APPROVED FUNDS
AND PROPERTY TAX SOURCE REVENUES
. FOR THE PRESENTATION SO FAR,
WE EXPECTED TO BE RELATIVELY
LESS. THE LEVEES ARE GENERALLY
DESIGNED TO BE ADDED TO A
BASELINE PROVIDED FROM THE
GENERAL FUND. THE CHALLENGE NOW
IS OBVIOUSLY THAT THE GENERAL
FUND MAY NOT BE ABLE TO REACH
THAT BASE LEVEL OF SERVICE. SO,
REPRIORITIZING THE USE OF LEVY
FUNDS IS SOMETHING IT WILL MAKE
SENSE TO RECONSIDER. THERE ARE
PROVISIONS IN EACH OF THE LEVY
AUTHORIZATIONS TO HAVE AN
ECONOMIC SHOCK. CERTAINLY WE
DID NOT ANTICIPATE THIS
MAGNITUDE, BUT THERE WAS
FLEXIBILITY TO DEAL WITH
DIFFICULT SITUATIONS.
HAVING BEEN INFORMED FROM THE
EXPERIENCE OF THE GREAT
RECESSION. THERE IS AN
OPPORTUNITY TO TAKE ADVANTAGE
OF THAT FLEXIBILITY. THERE ARE
ALSO FEDERAL AND STATE
RESOURCES THAT I WANT TO
COMMENT ON. TO DATE WE'VE SPENT
ABOUT $50 MILLION ON COVID
RESPONSE.
NOT NECESSARILY INCLUDING
OVERTIME.
IT INCLUDES OVERTIME BUT NOT
REGULAR TIME FOR CITY
EMPLOYEES.
ALSO INCLUDES EXPENSES FOR
THINGS PURCHASED LIKE SHELTER
AND ASSISTANCE TO SMALL BUSINESS
AND RENTAL ASSISTANCE. ALSO
FOOD AND PROTECTIVE EQUIPMENT
FOR FIRST RESPONDERS AND THE
LIKE. GIVEN THE PROGRAMS THAT
WE HAVE STANDING AND THAT WE
ANTICIPATE STANDING UP, THE
TOTAL RESPONSE WILL BE AS MUCH
IS $100 MILLION.
THAT ASSUMES THAT BY SUMMER THE
SOCIAL DISTANCING AND SOME OF
THE RESPONSES WILL BE TAPERING
OFF.
SO, WE HAVE THOSE EXPENSES
WHICH ARE LARGELY -- WE BELIEVE
THAT $50 MILLION AND WHAT IS TO
COME CAN LARGELY BE ADDRESSED
FROM STATE AND FEDERAL
REIMBURSEMENT. SO, THE RISK TO
THE BUDGET IS MORE ON THE
REVENUE SIDE AND LESS ON THE
EXPENSE SIDE. WE HAVE RECEIVED
SOME MONIES AND HAVE PROVIDED
LEGISLATION TO ACCEPT FEDERAL
AND STATE MONEY WITH CONTINUING
WORK WITH THE OFFICE OF
GOVERNMENT RELATIONS TO HAVE
SOME INPUT AT THE FEDERAL AND
STATE LEVEL ABOUT THE RESOURCES
THAT ARE PROVIDED.
IN PARTICULAR THE FLEXIBILITY
THAT THOSE RESOURCES ARE
PROVIDED OR MADE AVAILABLE TO
THE CITY.
THE USE OF THE MONEY IS A KEY
COMPONENT FOR THE VALUE OF THAT
STATEMENT. AGAIN, WE ARE
WORKING ON A PACKAGE OF ACTIONS
THAT WILL REBALANCE 2020 AND AT
THE SAME TIME WE ARE BEGINNING
TO DEVELOP THE 2021 AND 2022
ANNUAL BUDGET. THAT'S THE
PRESENTATION AND I'M HAPPY TO
TAKE QUESTIONS AT THIS POINT.
>> THANK YOU DIRECTOR NOBLE. I
APPRECIATE THE WALK-THROUGH AND
THE SOBERING REALITY YOU HAVE
PAINTED NOT JUST IN THE NEAR-
TERM, BUT THE LONG TERM AS WE
CRAFT AN AUSTERITY REPORT
APPROACH AND A PLAN TO PLUG THE
HOLES YOU HAVE MENTIONED. ANY
LOCAL ACTION WILL NOT BE
SUFFICIENT GIVEN THE GAP. HOW
DO WE COMPLEMENT FEDERAL AND
STATE EFFORTS AS WELL?
AND TO BE AS PROACTIVE AS WE CAN
GIVEN THE REALITY WE FIND
OURSELVES IN AND HOW FAST THIS
RECESSION HAS SNUCK UP ON US
COMPARED TO THE PREVIOUS ONE.
THANK YOU FOR PAINTING THIS
PICTURE FOR US.
COLLEAGUES, I WILL TAKE
QUESTIONS IN THE ORDER IN WHICH
YOU ARE READ INTO ROLL CALL
TODAY.
AS A MEMBER, THAT IS
COUNCILMEMBER GONZALEZ, MORALE
IS, PEDERSEN, SAWANT . I
THOUGHT THAT WAS THE FAIREST
WAY TO TAKE QUESTIONS.
IF YOU HAVE ONE OR TWO
QUESTIONS, PUT THEM OUT FOR THE
DIRECTOR AND IF YOU DON'T HAVE
QUESTIONS, THAT'S FINE AS WELL.
WE WILL HAVE MORE OPPORTUNITIES
TO ENGAGE WITH THE DIRECTOR AND
HIS TEAM IN THE COMING WEEKS.
COUNCILMEMBER GONZALEZ, YOU ARE
FIRST.
>> I WANT TO SAY THANK YOU TO
THE THOROUGH PRESENTATION AND AS
CHAIR MOSQUEDA HAS ARTICULATED,
A SOBERING PRESENTATION ON THE
STATE OF THE FINANCIAL AFFAIRS
FOR THE CITY.
REALLY QUICKLY ON SLIDE 10, AND
THE GENERAL FUND REVENUE SLOW
RECOVERY SCENARIO, YOU GAVE US
THE SLOW GROWTH SCENARIO. ON
THE VERY BOTTOM IT TALKS ABOUT
HOW THE 2020 TOTALS DON'T
INCLUDE THE MERCER MEGA BLOCK
PROCEEDS.
COULD YOU TALK ABOUT THAT A
LITTLE MORE?
>> THE REASON WE EXCLUDED THOSE
WAS TO MAKE THE YEAR-TO-YEAR
COMPARISONS MORE INSIGHTFUL, IF
YOU WILL.
SO, THERE IS A TOTAL OF ABOUT
$80 MILLION TO BE PAID TO THE
CITY AND 2020 OR THE SALE OF
THE MERCER BLOCK.
AT THE MOMENT, THAT TRANSACTION
IS EXPECTED TO MOVE FORWARD AND
WE ARE FINALIZING THE
DEVELOPMENT. IF WE PUT THAT
TOTAL INTO 2020, IT WOULD HAVE
OVER EMPHASIZED THE GROWTH OF
2019 AND THE DECLINE INTO 2021.
IT IS ONE TIME AND DISTORTS THE
OVERALL PICTURE. WE THOUGHT
WITH YEAR-TO-YEAR COMPARISONS
EXCLUDE IT. MORE USEFUL TO
THE TRANSACTION IS ANTICIPATED
TO MOVE FORWARD. THE RESOURCES
HAD OTHER INTENDED PURPOSES BUT
THEY COULD BE AN ELEMENT OF
ADDRESSING THE SHORT PAUL WITH
THE POLICIES THAT YOU AND THE
MAYOR HAVE SET. IT HAS OCCURRED
TO ME AS A POTENTIAL RESOURCE
IN THIS OVERALL BIGGER PICTURE.
>> I APPRECIATE THAT.
I THINK IT IS IMPORTANT FOR
COLLEAGUES AND THE PUBLIC TO
UNDERSTAND THAT IS $80 MILLION
WORTH OF REVENUE THAT IS PART
OF THAT. I UNDERSTAND WHY IT
WAS NOT INCLUDED IN THE GENERAL
REVENUE SLOW RECOVERY CHART
BECAUSE IT SHOWS THE RECOVERY
TREND AS OPPOSED TO THE HARD
DOLLARS THAT WE EXPECT TO HAVE
IN THOSE PERSPECTIVE COLUMNS
AND SO I APPRECIATE THAT.
I DON'T HAVE OTHER QUESTIONS AT
THIS TIME, BUT I LOOK FORWARD
TO CONTINUING TO ENGAGE WITH
THE CITY BUDGET OFFICE AND WITH
THE MAYOR AND WITH ALL OF YOU
COLLEAGUES AS WE CONTINUE TO
DIGEST AND FURTHER ANALYZE THE
PRESENTATION AND THE DATA
PROVIDED. THANK YOU.
>> COUNCILMEMBER HERBOLD . ONE
OR TWO QUESTIONS FROM YOU.
>> THANK YOU, I THINK IT WILL
BE TWO QUESTIONS AND THE SECOND
IS A MULTIPART QUESTION.
THANK YOU FOR BEARING WITH ME.
>> ON SLIDE THREE, THE NATIONAL
PROJECTIONS FOR THE BASELINE
END OF THE RECESSION APPEARS TO
BE 2020 QUARTER 3. THE
EMPLOYMENT PEAKS A QUARTER LATER
. I WOULD LIKE TO UNDERSTAND
THAT, ESPECIALLY SINCE WE ARE
BASING LOCAL PROJECTIONS ON THE
NATIONAL PROJECTIONS. THEN,
SECONDLY, AS IT RELATES
SPECIFICALLY TO THE PROCESS WE
ARE GOING TO BE GOING THROUGH
IN IDENTIFYING REDUCTIONS. I
KNOW THAT THE BUDGET OFFICE
ASKED FOR POTENTIAL CUTS IN
MARCH. SO, THE BUDGET OFFICE
WILL BE RECEIVING THOSE
RECOMMENDATIONS FROM THE
DEPARTMENTS.
THEN, THE BUDGET OFFICE WILL
PROPOSE CUTS BASED ON WHAT THE
DEPARTMENTS SUBMITTED. I WOULD
BE INTERESTED TO KNOW WHEN YOU
ANTICIPATE DOING THAT?
>> AND 2, WHEN CAN THE COUNCIL
EXPECT THE SUPPLEMENTAL BUDGET
BILL?
AND THREE, CAN WE EXPECT THE
SAME TRANSPARENCY THAT WE
TYPICALLY HAVE DURING THE
BUDGET PROCESS WHERE WE CAN SEE
THE DEPARTMENTAL SUBMITTALS.
SORT OF WHAT THEY HAVE SAID.
WE CAN LIVE WITH THESE CUTS.
THEN, TO ALSO SEE WHAT THE
BUDGET OFFICE IS RECOMMENDING
TO THE MAYOR. THAT ADDS A LOT
OF VALUE TO THE COUNCIL'S
PROCESS TO KIND OF SEE THAT
BACK AND FORTH.
SO, THAT WOULD BE REALLY
HELPFUL AS WELL.
AND, I WOULD LIKE TO KNOW WHEN
WE CAN EXPECT THE SUPPLEMENTAL
BUDGET REPORT. THANK YOU.
>> TO ANSWER THE FIRST QUESTION.
>> TO ANSWER THAT. THE
RECESSION TYPICALLY ENDS.
>> IN ADDITION TO THE PROPOSALS
FROM DEPARTMENTS, WE ARE DOING
THAT NOW.
THEY ARE REACHING FOR
RECOMMENDATIONS AND I DON'T SEE
BARRIERS TO BEING TRANSPARENT
TO WHAT IS BEING PROPOSED AND
OUR WORK THROUGH THAT.
I AM GOING TO BE LESS THAN
COMMITTAL ON THE EXACT TIMING
OF A SUPPLEMENTAL.
ONLY BECAUSE THE SITUATION
CONTINUES TO EVOLVE.
WE WANT TO BRING CHANGES THAT
ARE AS INFORMED AS POSSIBLE.
THE STIMULUS 3 BILL INCLUDES A
CALCULATION AS MUCH AS $130
MILLION TO THE CITY.
THE RESTRICTIONS OR THE
GUIDANCE ON THE USE OF THAT
$130 MILLION HAS EVOLVED SOME
AND IS A POINT OF DIALOGUE
RIGHT NOW IN D.C. AND THAT'S A
BIG DIFFERENCE.
WE ARE EXPECTING THAT EVEN WITH
THAT MONEY, UNDER ALL
CIRCUMSTANCES THERE IS A LEVEL
OF REDUCTION THAT WILL NEED TO
OCCUR.
WE WILL BRING AN ADDITIONAL SET
OF RECOMMENDATIONS SAYING THAT
UNDER ANY SCENARIO THAT THERE
IS SOME SPINNING WE
REALISTICALLY WILL NOT BE ABLE
TO AFFORD. THERE HAVE BEEN
REQUESTS THAT WE WILL NEED TO
PROCESS AND WE WILL BRING YOU
THOSE AS WELL.
I EXPECT THAT IN THE NEXT
COUPLE OF MONTHS BUT I DON'T
HAVE A DATE BECAUSE THE
SITUATION IS FLUID, AS I JUST
DESCRIBED.
>> THANK YOU. COUNCILMEMBER
JUAREZ, DO YOU HAVE QUESTIONS?
>> SHE MAY BE ON MUTE.
>> HERE I AM, CAN YOU HEAR ME?
>> YES.
>> YOU CAUGHT ME OFF GUARD.
I DO.
FIRST OF ALL,, WOULD YOU MIND,
DR. NOBLE TO QUICKLY LOOK AT
SLIDE 10 AND 12.
MAINLY 12. MY MAIN CONCERN, OF
COURSE, AS CHAIR OF THE
METROPOLITAN PARK DISTRICT. IT
IS BULLET 6 UNDER LEVY FUNDS.
THIS IS GOING TO BE A QUESTION
THAT I AM SURE WILL COME UP
UNDER THE LOAN AGREEMENT AS WELL
. I HAVE CONCERNS ABOUT WHEN
YOU SAY THE PURSUIT OF
FLEXIBILITY UNDER LEGISLATION.
AS YOU KNOW, WE HAVE THE 2014
LEVY PARK FUND.
WHEN YOU SAY FLEXIBILITY, AS A
LAWYER, WHAT I THINK YOU ARE
SAYING IS WHETHER WE CAN USE
TAX MONEY FOR SPECIFIC PURPOSE
FOR THE PARKS FOR ANOTHER
PURPOSE HOPING IT WILL BE PAID
BACK. IS THAT WHAT YOU ARE
GETTING AT?
IS THERE WIGGLE MONTH WIGGLE
ROOM TO USE THE PARK LEVY FUNDS
TO REBALANCE THE BUDGET OR FOR
ANY OTHER PURPOSE?
>> THANK YOU FOR THE QUESTION.
AN OPPORTUNITY TO CLARIFY. THE
LEVEES WOULD ONLY BE USED FOR
THE OVERALL PURPOSES FOR WHICH
THEY WERE INTENDED.
THE PARK ISN'T TECHNICALLY A
LEVY, IT IS A SEPARATE TAXING
AUTHORITY BUT IT OPERATES NOT
UNLIKE ONE AND IT IS A VOTER
APPROVED TAX MEASURE.
PARK RESOURCES WOULD BE USED
FOR PARKS AND LIBRARY RESOURCES
WOULD BE USED FOR LIBRARIES.
THE QUESTION IS, IF THE BASE
LEVEL FOR FUNDING FOR WHICH THE
LEVEES ARE INTENDED TO BE
ADDITIVE ARE NO LONGER FEASIBLE
, WOULD IT MAKE SENSE
POTENTIALLY TO USE LEVY
RESOURCES TO SUPPORT BASIC
OPERATIONAL ACTIVITIES?
A TANGIBLE EXAMPLE. IF THERE
WERE CAPITAL PROJECTS THAT HAD
BEEN INTENDED TO BE COMPLETED
WITH LEVY RESOURCES AND THERE
ARE OPERATIONAL ACTIVITIES THAT
MAY BE CUT AND THERE ARE HIGHER
PRIORITY CAPITAL MEASURES,
THERE COULD BE A SHIFT IN THE
FUNDING AND THAT WAY. IT WOULD
BE PARKS TO PARKS, IF YOU WILL
OR TRANSPORTATION TO
TRANSPORTATION OR LIBRARY TO
LIBRARY.
NOT ACROSS.
I DON'T BELIEVE THAT WOULD BE
LEGAL GIVEN THE RESTRICTIONS.
>> CORRECT, THANK YOU.
>> THANK YOU COUNCILMEMBER
JUAREZ.
COUNCILMEMBER LEWIS ,
QUESTIONS FROM YOU?
>> THANK YOU MADAM CHAIR AND
DIRECTOR NOBLE, THANK YOU FOR
YOUR PRESENTATION.
IT TAKES ME ABACK A LITTLE BIT
TO THE UNIVERSITY OF WASHINGTON
STUDENT GOVERNMENT SESSION
SITTING THROUGH A COMMITTEE
MEETING THAT WAS MAKING SOME
REALLY SOBER FORECASTS. IT
WASN'T A GOOD FEELING THEN AND
IT IS NOT A GOOD FEELING NOW.
I APPRECIATE GETTING THE
ONBOARD INFORMATION EVEN THOUGH
IT IS BAD NEWS. WE ARE GETTING
IT EARLY AND I APPRECIATE THE
PRESENTATION. I JUST WANT TO
ASK A COUPLE OF QUESTIONS.
THE FIRST ONE IS RELATED TO
COMMENTS THAT A COUNCILMEMBER
MADE EARLIER.
THERE WAS QUESTION BY THE
EXECUTIVE TO GET DIRECTIVES OUT
TO DEPARTMENTS TO LOOK FOR WAYS
TO POTENTIALLY MITIGATE SOME OF
THE HARM BY LOOKING AT A
CITYWIDE HIRING FREEZE AND
LOOKING AT CERTAIN FUNDS THAT
COULD BE OFFSET. YOU HAVE ANY
ESTIMATE, AT THIS POINT, ON HOW
MUCH PROTECTIVE MEASURES LIKE
THAT, HOW MUCH OF A DIFFERENCE
IT WOULD MAKE IN THESE FORECASTS
FOR THE 2020 SPINNING?
IS IT TO'S STILL TOO
SPECULATIVE AND EARLY?
>> IT IS A COUPLE OF TENS OF
MILLIONS KIND OF FLAVOR, BUT
NOT DRAMATICALLY MORE THAN
THAT, NECESSARILY.
AGAIN, I WOULD WANT TO BRING
YOU A MORE COMPLETE AND FULL
PICTURE THAT WE ARE WORKING ON
NOW RATHER THAN PIECES OF
INFORMATION.
>> I APPRECIATE THAT.
THIS IS SORT OF RELATED TO
THAT.
THERE WERE CERTAIN BUDGET
COMMITMENTS PUT TOGETHER BY THE
COUNCIL AND PRIVIES OWED IN THE
LAST ELECTION.
ARE COMMITMENTS THAT THE
COUNCIL HAS MADE AND FUNDED
UNDER PRIVIES THOUGH AND NEED A
LITTLE BIT MORE LOOKING INTO IT.
ARE THOSE BEING CONSIDERED BY
THE EXECUTIVE AS THINGS THAT
ARE POTENTIALLY SUBJECT TO A
SAVINGS THE DEPARTMENT COULD
REALIZE? WHETHER THEY ARE
AFFORDED A DIFFERENT STATUS.
WHILE THEY ARE STILL IN THE
INVESTIGATORY PHASE OF LOOKING
INTO WHETHER BASED ON
INFORMATION THAT COMES BACK IN
THE PROCESS OF WANTING TO FUND
IT, ARE THOSE IN THE SAME BUCKET
AS LIKE A CONTRACTOR WHERE THE
DEPARTMENT WAS MAYBE GOING TO
HIRE THEM TO DO A PROJECT, BUT
IT WASN'T ESSENTIAL? I'M JUST
CURIOUS IF THERE ARE THINGS
SPECIFIC WITH COUNCIL PRIORITY
THAT MAY FIT INTO THIS.
I WANT TO MAKE SURE WE ARE
GOING FORWARD WITH THE
ASSUMPTION THOSE ARE BUDGETED
IN AND SHOULD BE THERE BARRING
SOME KIND OF DECISION FROM THE
COUNCIL? I JUST WANTED TO THROW
THAT OUT THERE AND ASK.
>> WHAT I WOULD SAY IS WE ARE
NOT TARGETING PROVISO RESOURCES
AS SOMETHING THAT WOULD BE CUT.
NOR, ARE WE NECESSARILY
EXEMPTING THEM FROM THE
DISCUSSION OF WHAT KIND OF
INVESTMENTS WE COULD
REALISTICALLY MAKE IN THE
CURRENT CONDITIONS AND WHAT WE
CAN'T.
>> WE WILL BE TRANSPARENT ABOUT
OUR PLANS AND THE OPPORTUNITY
DIALOGUE. AGAIN, I'M NOT TRYING
TO IN ANY WAY MINIMIZE OR
INDICATE WE ARE NOT INTERESTED
IN THE PRIORITIES YOU IDENTIFIED
. I DO WANT TO BE TRANSPARENT
THERE IS A LOT THAT WE HOPED TO
DO THAT WE WILL NOT BE ABLE TO
DO.
AND, WE ARE LOOKING AT IT FROM
AN OVERALL PERSPECTIVE AND
RECOGNIZING POLICY PRIORITIES
OF THE CITY'S ELECTIVE
LEADERSHIP OVERALL.
>> I APPRECIATE THAT, THANK YOU
.
>> THANK YOU COUNCILMEMBER
LEWIS . COUNCILMEMBER MORALES,
DO YOU HAVE QUESTIONS?
>> YES, THANK YOU.
I APPRECIATE THE INFORMATION
HERE. I DON'T THINK IT IS A
SURPRISE TO ANY OF US THAT WE
ARE FACING A SERIOUS RECESSION.
AND, THE BUDGET SHORTFALL IS
SOMETHING WE ARE INTERESTED IN
DEALING WITH. I AM CURIOUS ABOUT
-- I DO FEEL THAT DR. NOBLE
MADE A STRONG CASE AND I WANT
TO GIVE A POINT TO EXPLAIN THAT
. FOR EXAMPLE, SECTION 35 OF
RCW REQUIRES THAT OUR PENSION
FUNDS BE FUNDED SO WE MINIMIZE
THE RISK OF LOSSES. SO WE ARE
BENEFITING FROM INVESTING IN
SEVERAL INDEX FUNDS SO WE HAVE
STABILITY TO THE RETIREMENT.
SO, I AM CURIOUS WHY AS THE
STATE WE EXERCISE SO MUCH
CAUTION WITH OUR PENSION FUNDS
BUT WHEN IT COMES TO HOW WE
FUND THE SERVICES WE NEED IN
THE CITY TO PROTECT HEALTH AND
SAFETY OF 700,000 PEOPLE THAT
WE ARE SUPER RELIANT ON THREE
REVENUE SOURCES.
. YOU SAID SALES TAX, REVENUE
TAX AND PROPERTY TAX MAKING OF
THE GENERAL REVENUE.
IF YOU TAKE OUT THE ALL ELSE
CATEGORIES, I AM WONDERING WHY
WE ARE NOT ATTEMPTING TO
MINIMIZE OUR RISK TO THE CITY
BUDGET AND FIND A BETTER WAY TO
MANAGE THE THINGS WE KNOW WE
HAVE TO FUND IN THE CITY?
>> I CAN ONLY SAY THAT IT IS
AROUND THE TAXES NOW IN PLACE.
ON A BROADER LEVEL, WE ARE A
CREATURE OF THE STATE AND THE
TOOLS WE HAVE AVAILABLE ARE
LARGELY DEFINED UNDER STATE LAW
AND THE STATE CONSTITUTION.
BUT, IT IS CERTAINLY TRUE THAT
SOME OF THE LARGER STREAMS INTO
THE GENERAL FUND ARE HEAVILY
INFLUENCED BY ECONOMIC
CONDITIONS.
AT SOME LEVEL, LOCAL REVENUES
ARE INHERENTLY RELATED TO THE
ECONOMIC CONDITIONS.
WE ARE FORECASTING A
SIGNIFICANT DROP IN EMPLOYMENT
AND INCOME WHICH WILL IMPACT
ANY TAX SORES.
WE DO HAVE A RELATIVELY
DIVERSIFIED TAX BASE.
WE CAN'T GENERALLY HELP TO
MINIFY THOSE SWINGS.
>> COUNCILMEMBER PEDERSEN, DO
YOU HAVE ONE OR TWO QUESTIONS ?
>> THANK YOU CHAIRMAN AND THANK
YOU DR. NOBLE FOR BEING HERE
TODAY.
I WANT TO LOOK AT QUESTIONS
FROM COLLEAGUES.
THANK YOU FOR THE INFORMATION
ABOUT THE MERCER MAKE A BLOCK
AND ALSO THE QUESTION ABOUT
LEVY FUNDS HAS BEEN A CONCERN
OF MINE.
YOU AND I, DIRECTOR NOBLE WERE
BOTH HERE WHEN WE WERE WORKING
OUR WAY OUT OF THE GREAT
RECESSION. I KNOW ONE OF THE
THINGS THAT WE DID AT THAT TIME
WAS WE PROTECTED PUBLIC SAFETY
AND HUMAN SERVICES. IT WAS VERY
IPORTANT FOR THE COUNCIL AT
THAT TIME TO PROTECT OUR MOST
VULNERABLE POPULATIONS. HOW
WOULD YOU COMPARE THIS
SITUATION TODAY WITH THE
SITUATION OF THE GREAT RECESSION
IN TERMS OF WHAT YOU
POTENTIALLY RECOMMEND FOR THE
SUPPLEMENTAL BUDGET?
>> AGAIN, THE IMPACTS HERE ARE
LIKELY GOING TO BE LARGER THAN
DURING THE GREAT RECESSION. I
THINK -- I KNOW THE MAYOR SHARES
YOUR SENSE OF PRIORITY ABOUT
BASIC PUBLIC SAFETY AND SO TO
THE EXTENT FEASIBLE, WE WILL
RESERVE FUNDING IN THOSE AREAS,
BUT THERE MAY BE OPPORTUNITIES
FOR EFFICIENCIES AND IN SOME
WAYS LOWER DEMAND FOR THOSE
SERVICES.
>> AT THE SAME TIME, BEING
THOUGHTFUL ABOUT THE WAY
PRODUCTIONS ARE TAKEN SO THEY
DON'T HAVE SIGNIFICANT IMPACT
ON THE SERVICE PROVIDED IS
SOMETHING WE ARE LOOKING HARD
AT.
>> JUST TO CLARIFY, PRESERVING
THE HUMAN SERVICES INVESTMENT
THAT WE HAVE IS A PERSONAL
PRIORITY AS MINE, SO THANKS.
>> GIVEN HOW MUCH OF THE
COVERED RESPONSES CHARTING OUR
MOST VULNERABLE REVELATIONS, I
AM NOT ANTICIPATING SIGNIFICANT
REDUCTION.
THE OPPOSITE GIVEN THE
RESOURCES AVAILABLE TO THE
STATE AND FEDERAL GOVERNMENT
AND YOU ARE SEEING THAT ON THE
GROUND, SIGNIFICANT INVESTMENTS
FOR THOSE LIVING WITHOUT HOUSING
AND THEIR SPECIFIC NEEDS IN THE
CURRENT CRISIS.
>> THANKS.
>> THANK YOU.
COUNCILMEMBER SEWANT, DO YOU
HAVE QUESTIONS?
>> THANK YOU.
I DO NOT HAVE ONE OR TWO
QUESTIONS, BUT I WANT TO NOTE A
FEW THINGS I WANT TO AGREE WITH
FROM DOCTOR NOBLES
PRESENTATION, WHICH WAS
EXTREMELY WELL MADE.
AND THE ECONOMIC FORECAST AND
GENERALLY IS NOT CONTROVERSIAL,
AND WAS WELL LAID OUT, BUT
THERE ARE OTHERS BACK SPECS
THAT ARE NOT NEARLY ECONOMIC
EFFECT, OR NOT A NEUTRAL
FORECAST, BUT WHAT ACTUALLY
HAPPENED DEPEND ON POLICIES
THAT WILL BE PUT FORWARD BY THE
CITY'S GOVERNMENT IN THE COMING
MONTHS.
I WANT TO TO DRAW THOSE POINTS
OUT BECAUSE THEY ARE REALLY
RELEVANT TO THE MAJORITY WHO
ARE STRUGGLING AND RELEVANT FOR
THE TOPIC OF TODAY'S MEETING.
I APPRECIATE DOCTOR NOBLE, YOU
MENTIONING AND MAKING IT CLEAR
A POINT THAT PREVIOUS LEVELS OF
THE ECONOMY, YOU KNOW, THERE IS
NO ROOM FOR AN OPTIMIST
SCENARIO GIVEN WHERE THINGS ARE.
BUT I WOULD ALSO ADD TO ONE
POINT, JUST FROM AN ECONOMIC
STANDPOINT, THAT RESUMING
PANDEMIC ECONOMIC LEVELS IS NOT
A GIVEN BY ANY MEANS.
ALL OF THAT IS A LITTLE BIT
UNCERTAIN RIGHT NOW, AND IT
WILL BE A FUNCTION OF THE
PANDEMIC ITSELF, AND IF
EPIDEMIOLOGIST PROJECTIONS ARE
EXAMINED, IT WILL NOT BE A
STRAIGHTFORWARD RESUMING OF THE
ECONOMY WITHOUT SOME
CONSIDERABLE LOSS OF LIFE,
CERTAINLY WITH VACCINE
DEVELOPMENT.
I ASSUME THAT, BUT I ALSO WANT
TO ADD A CAUTION THAT FOR
EXAMPLE, IN SINGAPORE, THERE
HAS BEEN A RESURGENCE, SO WE
WANT TO BE CAUTIOUS IN WHAT WE
ARE PAINTING A PICTURE FOR THE
FUTURE.
ALSO, YOU MENTIONED THE
STIMULUS CHECKS ARE SIMPLY NOT
GOING TO BE ABLE TO COMPETE
WITH THE CRATERING OF THE
FINANCIAL SITUATION THAT TENS
OF MILLIONS AROUND THE COUNTRY
ARE FACING.
THAT IS A VERY IMPORTANT POINT
YOU MADE.
I WANTED TO UNDERSCORE THAT.
BY ALSO QUITTING PEOPLE WHO SAID
THE VERY TERM STIMULUS THAT IS
BEING USED BY U.S. CONGRESS IS
THAT CONGRESS DOES NOT
UNDERSTAND THE DOWNTURN.
IN 2008, WE WERE WORRIED ABOUT
THE CONSEQUENCES OF A CREDIT
FREEZE AND THEN IT WAS TALKED
DOWN, BUT THIS TIME IT IS
BOTTOM OUT AND THAT DOES NOT
ADEQUATELY TALKED ABOUT.
IF WORKERS DO NOT HAVE WAGES,
THEY CAN'T PAY AND THEY WILL BE
FINE WITH STIMULUS MONEY, BUT
THEIR BALANCE SHEET WILL BE
JOINT.
I WANTED TO ADD THAT QUOTE TO
UNDERSCORE THE POINT YOU MADE.
THE OTHER POINT THAT SHOULD BE
DRAWN OUT IN A TREMENDOUS WAY
IS ALSO THE NATURE OF THE CRISIS
THAT WASHINGTON STATE WILL FACE
IS NOT OF THE PANDEMIC, IT IS A
PRODUCT OF THE AGGRESSIVE NATURE
OF THE TAX SYSTEM.
THE DEPENDENCE ON SALES TAX,
WHICH IS THE MOST REGRESSIVE TAX
POLICY, IT IS HAVING A
TREMENDOUS IMPACT AND IT WILL
NOT BE REVIVED UNLESS PEOPLE
HAVE MONEY TO SPEND AND
OVERALL, THERE IS NOT GOING TO
BE A RECOVERY IF WE KEEP
RELYING ON AGGRESSIVE TAXES.
THAT IS A COLD HARD FACT.
WHETHER YOU LIKE IT OR NOT,
THEY NEED TO BE TAXED IF WE ARE
GOING TO RECOVER THE BUDGET
SHORTFALL AND EXPAND PUBLIC
REVENUES TO CREATE JOBS AND ALL
THAT.
THE LAST POINT IS ON THE LAST
SLIDE, WHERE YOU DISCUSSED THE
RESERVES FOR MAKING UP THE
SHORTFALL, I WANTED TO NOTE AN
IMPORTANT THING THAT DOES NOT
EXIST ON THAT SLIDE.
I'M NOT SHORTING YOU, BUT I
WANTED TO NOTE THIS IS WHERE
THE CITY COUNCIL DID ITS WORK,
AND THE OPPORTUNITY TO SHOW
COURAGE AND LEADERSHIP SENT
BECAUSE WHAT IS MISSING AND
THAT SLIDE IS AND A NEW
PROGRESSIVE REVENUES.
IF WE DO NOT TALK ABOUT THAT,
WE ARE NOT HAVING A SERIES OF
CONVERSATION AS A OFFICIALS.
WE SHOULD NOT PUT THIS BURDEN
ON ECONOMIST WHO ARE SERVING
THE CITY.
THAT BURDEN IS ON US TO ADD ONE
MORE THING THERE, WHICH IS THE
REVENUES.
THE OTHER POINT I WANTED TO
NOTE IS THAT LAST SLIDE, WHICH
IS IMPORTANT AND GOES TO YOUR
POINT THAT AUSTERITY BUDGET ARE
UNJUST IN GENERAL, BUT THEY ARE
NOT GOING TO WORK IN ADDRESSING
THE RECESSION, SO REDUCING 2020
FUNDING, I THINK THAT IS A VERY
GENERIC TITLE.
WHAT DOES IT ACTUALLY ENTAIL?
I AUSTERITY AND SOCIAL NEEDS,
ACTUALLY COPY EXCEPT THAT
BECAUSE THAT WILL BE AN EXAMPLE
OF AUSTERITY.
ALSO ONE SPECIFIC EXAMPLE TO
INCLUDE --
>> I'M SORRY, WE ARE GOING TO
NEED TO MOVE ON TO THE LAST
QUESTION.
>> I HAVE ONE LAST POINT.
THESE ARE IMPORTANT.
I WOULD APPRECIATE TIME TO MAKE
úTHESE POINTS BECAUSE THESE ARE
POINTS THAT ARE RELEVANT TO THE
ECONOMIC DISCUSSION AND FOR
WORKING PEOPLE.
JUST TO GIVE YOU AN EXAMPLE, IF
THERE IS A HIRING FREEZE AT THE
OFFICE OF LABOR STANDARDS, THIS
WOULD MEAN THAT ANY WORKER IN
THE CITY WHO FILES A COMPLAINT
WOULD NOT GET THEIR ISSUES
TAKEN UP IN A TIMELY MANNER.
THEY WILL GO ON A WAIT LIST AND
A MAKE IT HANDLED IN SIX
MONTHS.
WE ARE SEEING A RAMPING UP OF
THE NEED FOR OVERSIGHT FROM THE
CITY ON WAGE AND OTHER
DISCREPANCIES.
I WOULD JUST PUT A REAL CAUTION
OVER THERE THAT REDUCING 2020
SPENDING CANNOT MEAN AUSTERITY
IN ANY WAY.
>> THANK YOU.
COUNCILMEMBER STRAUSS, ONE OR
TWO QUESTIONS FOR YOU.
>> THANK YOU.
GOOD AFTERNOON. MY QUESTIONS
ARE ON SITES SEVEN AND FIVE.
FIRST QUESTION IS THE WHOLESALE
AND RETAIL TRADE MAKE UP 34% OF
OUR TAX REVENUE POSITION 2019.
LOOKING AT CONSTRUCTION AND
FOOD SERVICE INDUSTRY, FOOD-
SERVICE ACCOMMODATION
RECREATION, DO WE HAVE AN
UNDERSTANDING OF WHAT THE
WHOLESALE BREAKOUT INTO
CONSTRUCTION AND FOOD SERVICES?
MY QUESTION IS A RESTAURANT
THAT USES WHOLESALE, DO WE
UNDERSTAND WHAT THEIR IMPACT TO
OUR REVENUE SOURCES ARE ON BOTH
LEVELS?
>> I HAVE TO GET YOUR COMPLETE
ANSWER ON THAT ONE.
I WILL DIG FURTHER INTO HOW
MUCH INFORMATION WE HAVE IN THE
SUBCOMPONENTS OF THE WHOLESALE
SECTOR.
I WILL GET BACK TO YOU ON THAT.
>> THANK YOU.
JUST NOTE THAT WITH WHOLESALE
FOOD SERVICE AND CONSTRUCTION,
THAT MAKES UP 77% OF OUR
REVENUE SOURCES, WHICH IS
SIGNIFICANT.
AND THEN LOOKING AT CONSTRUCTION
BEING 7% OF OUR REVENUE
POSITION IN 2019, AUNT THEN
SIDING BACK TO SLIDE FIVE WITH
OUR DIFFERENT MODELS OF
RECOVERY, NOT CURRENTLY HAVING
A SYSTEM TO CREATE BUILDING
PERMITS FOR CONSTRUCTION TO
COME ONLINE AT THIS TIME FOR
THE CITY, DO WE HAVE AN
UNDERSTANDING OF WHAT THE
IMPACT WOULD BE ON OUR LONG-
TERM RECOVERY?
>> I DON'T BELIEVE THERE IS NO
PERMIT ACTIVITY.
I DO NOT HAVE A GOOD SENSE OF
HOW SERVICES ARE BEING PROVIDED
. I HAD MY ATTENTION ELSEWHERE.
I THINK IT IS A QUESTION OF OUR
ABILITY TO PERMIT AND MORE
ABOUT THE QUESTION OF WHETHER
THERE ARE CAPITAL RESOURCES
WILLING TO INVEST INTO
COMMERCIAL AND RESIDENTIAL
SECTORS GOING FORWARD.
THE HISTORY WILL SUGGEST THAT
PROJECTS THAT ARE UNDERWAY WILL
BE COMPLETED AND THERE ARE A
GOOD NUMBE OF THOSE, BUT THERE
IS A SENSE THAT I, THAT KIND OF
INSTRUCTION, THE COMMERCIAL AND
RESIDENTIAL SECTORS IS THEY
THAT THERE WILL BE A DEMAND FOR
THE BUILDING FLUX ONCE THEY ARE
COMPLETED.
WHERE THAT DEMAND WILL COME
FROM IS GOING TO BE THE
QUESTION GOING FORWARD.
AS SEWANT INDICATED , THE
SITUATION WE ARE IN, WE HAVE
TALKED ABOUT THE GREAT
RECESSION, BUT THIS IS NOT THE
GREAT RECESSION.
THAT ECONOMIC SHOCK IS ONE THAT
IS COMPLETELY DIFFERENT AND IT
IS ONE OF THE THINGS THAT HAS
MADE FORECASTING REALLY
CHALLENGING.
WE ARE NOT FORECASTING IN THE
SITUATION THAT WE UNDERSTOOD OR
HAVE EVER SEEN IT REALLY
BEFORE.
SO I THINK IT IS REALLY MORE A
QUESTION ABOUT ULTIMATELY WHERE
THE ECONOMY GOES.
>> VERY HELPFUL, THANK YOU.
>> I WANT TO THANK YOU ALL FOR
YOUR QUESTIONS AND I EXTENT A
REQUEST THAT IF YOU HAVE A
DIRECT QUESTION, IF YOU COULD
SEND THOSE TO KIERSTEN AND
MYSELF, I THINK WE WOULD BE
HAPPY TO WORK TO GET ALL THOSE
ADDITIONAL QUESTIONS ANSWERED.
THIS WILL NOT BE THE LAST SLIDE
, AND I APPRECIATE THE REQUEST
THAT WAS MADE OF COUNCILMEMBER
HERBOLD TO HAVE A ROBUST AND
FULLY ENGAGED COUNSEL AS WE
TALK ABOUT ANY SUPPLEMENTAL
DISCUSSIONS.
DOCTOR NOBLE, THANKS FOR
WATCHING WITH US.
THIS UNDERSCORES THE THREAT TO
OUR STATE THAT THIS IS NOT JUST
A PUBLIC HEALTH CRISIS, BUT IT
IS A CATASTROPHE.
NOT BECAUSE OF THE PANDEMIC, IT
IS CAPITALISM THAT HAS LET INTO
THE POSITION.
WE ARE VERY EXCITED TO WORK
WITH YOU.
I WISH IT WAS UNDER DIFFERENT
CIRCUMSTANCES AS WE CRAFT A
BUDGET, BUT WE I THINK ALREADY,
AND APPRECIATE ALL OF THE
EXTENSIONS YOU HAVE OFFERED TO
ENGAGE WITH YOU, AS YOU
CONSIDER THE FUTURE BUDGET.
DIRECTOR NOBLE, THANK YOU FOR
THAT, AND WE ARE GOING TO MOVE
ON TO ITEM NUMBER TWO.>> THANK
YOU.
>> THANK YOU.
CAN WE PLEASE READ ITEM 2 INTO
THE RECORD?
>> 119774, ESTABLISHING A FUND
FOR THE PROCEEDS GENERATED FROM
THE PAYROLL FUND TAX ORDINANCE,
WHICH IS 119772 TO FUND
IMMEDIATE CASH FOR LOW INCOME
HOUSEHOLDS IMPACTED THE CRISIS
IN 2020 AS THE DEVELOPMENT OF
SOCIAL HOUSING.
119772 RELATING TO TAXATION
EXCEPT TAX PERSON ENGAGING A
BUSINESS IN SEATTLE.
119773 RELATING TO THE
RESPONSES TO THE CIVIL
EMERGENCY ORDINANCE,
AUTHORIZING THE LOAN TO THE LOW
INCOME HOUSING FUND TO THE
GENERAL FUND AUTHORIZING LOAN,
HOUSING CONSENT IS TO THE
GENERAL FUND.
>> THANK YOU.
AS WE GET UP HERE, I WENT TO
NOTE THAT KIERSTEN IS THE
DIRECTOR OF CENTRAL STAFF AND
THEY WILL BE JOINING US AS
WELL.
AS THEY JOIN US, I WANT TO NOTE
FOR THE CLERK AND CENTRAL STAFF
WE ARE ONLY SEEING ABOUT HALF
OF THE PRESENTATION ON THE SLIDE
CASE THAT CAN BE ADJUSTED.
WE DO HAVE THREE PIECES OF
LEGISLATION I HAVE BEEN
INTRODUCED AND WE ARE
CONSIDERING THEM A PACKAGE.
A PAYROLL EXPENSE PACKAGE, AND
HE IS YOU HAVE HEARD, BOTH IN
RESPONSE TO THE CRISIS THAT HAS
BEEN CREATED BY COVID ON OUR
LOCAL ECONOMY AND ALSO IN
RECOGNITION OF THE FUNDING
DEFICIENCIES THAT WILL OCCUR, I
WILL HAVE OUR COSPONSORS OF THE
LEGISLATION MAKE SOME COMMENTS
HERE.
WHAT I WANT TO NOTE FOR OUR
COLLEAGUES REFERENCE IS THAT
THESE THREE PIECES OF
LEGISLATION ARE ROBUST AND
DENSE.
TODAY WE ARE GOING TO START WITH
THE SPENDING PLAN.
I THINK IT IS AN IMPORTANT WAY
TO COMPLEMENT THE CONVERSATION
WE JUST HAD WITH DOCTOR NOBLE
ABOUT THE POTENTIAL DEFICITS IN
REVENUE THAT WE ARE
EXPERIENCING, AND IN LIGHT OF
THE CONVERSATION AROUND
POSSIBLE CUTS FOR SUPPLEMENTAL
PACKAGE OR FUTURE BUDGET, IT IS
IMPORTANT TO TALK ABOUT WITH
THE CURRENT NEED IS CREATED BY
COVID AND WHAT THE FUTURE NEEDS
WILL BE GIVEN THE POTENTIAL
REVENUE DEFICIT WITH THE STATUS
QUO REVENUE STREAMS THAT WE
HAVE.
BEFORE WE TURN THAT OVER TO OUR
COLLEAGUES TO WALK THROUGH THE
PROPOSAL AS THEY HAVE INTRODUCED
, WE WILL MAKE SOME
INTRODUCTORY COMMENTS.
ON THAT I BELIEVE WE WILL HAVE
IT TIME TODAY, REALLY A CHANCE
TO GET INTO THE DETAILS ON THE
SPENDING PROPOSAL ITSELF AND
THEN WE WILL SPEND NEXT
WEDNESDAY, IF WE DON'T GET TO
IT TODAY, WE WILL SPEND NEXT
WEDNESDAY GOING INTO DEPTH ON
OUR FULL COMMITTEE PRESENTATION
ON THE TAX PROPOSAL AND
INTERFUND LOAN AGREEMENT.
I THINK THERE IS GOING TO BE A
ROBUST CONVERSATION AND I WANT
TO NOTE FOR FOLKS THAT WE ARE
GOING TO PAUSE AT THREE
DIFFERENT POINTS EVEN IN THIS
FIRST PART OF THE PRESENTATION
TO TAKE QUESTIONS FROM ALL OF
YOU.
THERE IS A SLIDE THAT YOU WILL
SEE THAT NOTES OUT THAT WE ARE
GOING TO HAVE AN OPPORTUNITY TO
PAUSE AT THREE DIFFERENT
PLACES, AN OVERVIEW OF THE BILL
ITSELF WITH THE SPENDING PLAN
ENTAILS IN TERMS OF TWO MAJOR
FUNDING COMPONENTS AND THEN THE
IMPLEMENTATION PLAN, SO I WILL
PAUSE AT THREE DIFFERENT PLACES
AND ASK IF THERE IS QUESTIONS.
I WILL ASK THE COSPONSORS TO
USE THEIR TIME TODAY FOR THE
INTRODUCTORY MARKS BECAUSE WE
PROBABLY WILL NOT DO THAT AT
THE NEXT MEETING, WE WILL DIVE
INTO THE LEGISLATION AS
INTRODUCED SO WE CAN GET INTO
IT.
AND I WILL MAKE SOME COMMENTS
AS WE GET STARTED AS WELL.
COUNCILMEMBER MORALES AND
COUNCILMEMBER SEWANT.
AS COSPONSORS OF THE
LEGISLATION, I WILL TURN IT TO
YOU FOR INTRODUCTORY
REMARKS.>> THANK YOU.
I AGREE THAT BECAUSE WE ARE
STARTING THE DISCUSSION, THIS
IS WHERE MYSELF AND
COUNCILMEMBER MORALES SHOULD
LAY OUT THE FRAMEWORK AND I
HAVE PREPARED COMMENTS AND I
WILL APPRECIATE THE TIME. I
WANT TO START BY SAYING GOOD
MORNING MEMBERS AND STAFF WHO
ARE LISTENING IN AND WATCHING
TODAY'S PROCEEDINGS ON OUR
AMAZON LEGISLATION AT THIS
HISTORIC MOMENT.
THANK YOU TO ALL THE STAFF WHO
HAVE HELPED.
THANK YOU COUNCILMEMBER MORALES
. I AM HAPPY TO FIGHT FOR THOSE
ALONGSIDE YOU AND YOUR OFFICE
IN THE COMMUNITY WE SHARE.
WE ARE HERE TO FIGHT TO PASS A
TOTALLY COMMON SENSE
LEGISLATION FOR URGENT FUNDING
BY TAXING JUST THE TOP 2% OF
THE LARGEST CORPORATIONS A ONE
POINT FIVE TAX RATE.
NONPROFIT, GROCERY STORES,
PUBLIC EMPLOYERS, AND BASICALLY
90% OF THE BUSINESSES BY
DEFINITION WILL NOT BE TAXED.
WORKERS WILL NOT BE TAXED.
THIS IS NOT A TAX ON JOBS AS
BIZ BUSINESS REPRESENTATIVES
LOVES TOSAY.
JUST BECAUSE THEY SAY IT 1
MILLION TIMES DOES NOT MAKE IT
TRUE.
THIS WILL NOT BE A TAX ON JOBS.
THE OWNERS OF THE CORPORATION
THAT ARE GOING TO BE TAXED WILL
PAY THIS.
THAT IS THOSE WHO ARE THE
WEALTHIEST AND THOSE WHO HAVE
ENORMOUS RESERVES.
WHEN THIS MODEST TAX IS PASSED
IN MAY, STARTING IN JUNE WE CAN
HAVE $200 MILLION TO GIVE UP TO
$500 OF MONTHLY TAX ASSISTANCE,
OF TWO 1000 HOUSEHOLDS WHO ARE
NEEDING THIS ASSISTANCE THE
MOST.
STARTING IN 2021, $500 MILLION
CAN BE AVAILABLE FOR SOCIAL
HOUSING AND THE GREEN NEW DEAL
OF THE BASE PROGRAMS, WHICH
WILL CREATE THOUSANDS OF UNION
JOBS IS A BURDEN TO PUBLIC
TESTIMONY.
WHEN OUR MOVEMENT FIRST STARTED
FORMULATING THE SPECIFICS OF
THE LEGISLATION WAY BACK IN
NOVEMBER, WE KNEW WE HAD TO
CONFRONT THE EMERGENCY IN
SEATTLE AND I AM NOT REFERRING
TO THE PANDEMIC, RATHER I AM
SPEAKING OF UNPRECEDENTED
AFFORDABLE HOUSING AND
HOMELESSNESS CRISIS THAT HAS
BEEN DEVASTATING WORKING
FAMILIES IN SEATTLE FOR YEARS
AND HAS BEEN GETTING WORSE.
THE EMERGENCY IS NOT
EXCLUSIVELY MY
CHARACTERIZATION.
FOUR AND HALF YEAR AGO, THE
KING COUNTY EXECUTIVE AND
SEATTLE MAYOR REPRESENTATIVES
OF CORPORATE ESTABLISHMENT THAT
I DO NOT REPRESENT DECLARED A
HOMELESS A STATE OF EMERGENCY.
THAT IS AN AGREED-UPON
STATEMENT..STATE OF EMERGENCY
CONTINUES TO THIS DAY IN
SEATTLE.
EVEN BEFORE THE CRISIS, SEATTLE
HAD THE THIRD HIGHEST NUMBER OF
PEOPLE EXPERIENCING
HOMELESSNESS IN THE COUNTRY.
THIS PAST JANUARY, THE McKENZIE
COMPANY REPORTED THAT THE
PRIVATE HOUSING MARKET HAS
UTTERLY FAILED US, AND THAT IN
ADDITION TO THE RISE IN RENT
FROM CORPORATE DEVELOPERS,
ALONG WITH THE WHOLLY INADEQUATE
SCALE OF NEW AFFORDABLE HOUSING
CONSTRUCTION, ALL OF THAT HAS
ADDED UP TO A LOSS OF MORE THAN
112,000 UNITS OF AFFORDABLE
HOUSING IN KING COUNTY.
THAT IS A LOSS OF 40% OF HOUSING
AFFORDABLE TO THOSE LIVING
BELOW 80% OF THE AREA OF NEED
INCOME FOR A FAMILY OF FOUR.
THIS IS SO STUNNING THAT IT
BEARS REPETITION. OVER THE LAST
DECADE, OUR REGION HAS SEEN THE
DESTRUCTION OF 40% OF OUR
AFFORDABLE HOUSING.
IN JANUARY, ALSO THE REPORT
ESTIMATED THE REGION NEEDED AT
THE TIME BETWEEN $450,000,001.1
BILLION EACH YEAR FOR THE NEXT
10 YEARS.
THAN THE CORONAVIRUS PANDEMIC
STRUCK.
WHAT WAS AN OVERWHELMING CRISIS
OF HOUSING AFFORDABILITY
TRANSFORMED OVERNIGHT INTO AN
ABSOLUTELY STAGGERING TRIPLE
EMERGENCY.
PUBLIC HEALTH EMERGENCY JOBS
AND INCOME EMERGENCY AND
HOUSING AFFORDABILITY. ASIDE
FROM THIS TRAGIC, ABSOLUTELY
TRAGIC LOSS OF LIFE, HUNDREDS
OF THOUSANDS OF WASHINGTON
WORKERS HAVE LOST THEIR JOBS
AND JUST THE LAST FOUR WEEKS,
624,000 WASHINGTONIANS,
INCLUDING MORE THAN 169,000 IN
KING COUNTY HAVE FILED FIRST-
TIME UNEMPLOYMENT CLAIMS AND WE
KNOW THAT IS AN UNDERESTIMATE
OF THE JOB LOSS BECAUSE IT
FAILS TO TAKE INTO ACCOUNT
COLONY WORKERS, WORKERS AND
FORMAL ECONOMIES, SELF-EMPLOYED
PEOPLE, PART TIME WORKERS AND
WORKERS WHO HAVE NOT YET FILED
CLAIMS.
AT THE SAME TIME, ESSENTIAL AND
FRONT-LINE WORKERS ARE RISKING
THEIR LIVES AND INDEED WE
LEARNED DAYS AGO FROM A METRO
BUS DRIVER WHO DIED FROM
CORONAVIRUS, THE SECOND BUS
DRIVER AND A REGION DIED.
I THINK ABOUT THESE SACRIFICES
THAT ORDINARY WORKING PEOPLE
HAVE MADE AND CONTINUE TO MAKE
EVERYDAY.
ONE SOME OF THE EMAILS COMING
IN FROM THE CORP.
INTEREST, PROTESTING OUR TAX
AMAZON LEGISLATION.
WORKERS HAVE GIVEN UP 100% OF
THEIR INCOMES IN MANY CASES.
THEY HAVE RISKED THEIR LIVES AND
ARE CONTINUING TO RISK THEIR
LIVES FOR OUR COMMUNITY.
THEY HAVE MADE COUNTLESS
SACRIFICES IN THE FACE OF THIS
PANDEMIC.
OUR LEGISLATION CALLS ON THE
BUSINESS TO DEVELOP A MEASLY 1%
OF THEIR INCOME FOR THE COMMON
GOOD.
IN FACT, THE TAX THAT WE HAVE
PROPOSED WOULD BE JUST 1% OF
THE CORPORATE PAYROLL, THE
LARGEST 2% IN OUR CITY, WHICH
MEANS THAT IS JUST A TAX ON THE
PAYROLL PORTION OF THE
COMPANY'S BUDGET.
UNLESS PAYROLL IS MORE THAN
THREE-QUARTER OF THE COMPANY'S
OVERALL BUDGET, THE OVERALL TAX
BURDEN, THE NEXT TAX BURDEN FOR
THE COMPANY IS LESS THEN 1% OF
THEIR BUDGET.
LIST AND 1%, COMPARE THAT TO
THE 70% TAX RATE THAT WORKING-
CLASS HOUSEHOLDS FACE, EVEN
HOUSEHOLDS MAKING $25,000 A
YEAR.
THAT IS WHY I AM STUNNED AND
DISGUSTED, THOUGH NOT SURPRISED
AT HOW BIG BUSINESS OWNERS ARE
PLAYING FOUL.
DENTAL TIMES HAS PUBLISHED NO
FEWER THAN FOUR HIT PIECES IN
THE PAST FOUR WEEKS.
FOR THESE BIG BUSINESS
REPRESENTATIVES, SACRIFICE IS
SOMETHING OTHER PEOPLE DO.
IN A SENSE THE PANDEMIC BEGAN,
WE HAVE HEARD FROM THE RICH WE
ARE IN THIS TOGETHER.
WE NEED UNITY.
BY THE TIME WORKERS ARE GIVING
THEIR ALL, THEIR INCOMES,
SAFETY AND SECURITY AND THEIR
LIVES AND AT A TIME WHEN SMALL
BUSINESSES ARE WIPED OUT OR
BARELY HANGING ON, THESE
EXECUTIVES AND MILLIONAIRES ARE
NOT EVEN WILLING TO PART WITH
THE TINY SLIVER OF THEIR
WEALTH.
CLEARLY THEY ARE NOT IN THIS
TOGETHER.
I WISH WE WERE, BUT WE ARE NOT.
OUR LEGISLATION CALLS ON THESE
MAJOR CORPORATIONS TO GIVE AT
1% OR LESS THAN 1% OF THEIR
MONEY TO ADDRESS THE EMERGENCY
AND THEY ARE REFUSING.
THIS IS BEYOND SHAMEFUL.
WE NEED TO REJECT THE
RIDICULOUS ARGUMENT THAT THESE
COMPANIES ARE SO FINANCIALLY
FRAGILE THAT A MODEST TAX OF 1%
WILL CAUSE THEM TO FREEZE IN
SEATTLE, INCURRING EXPENSES
ALONG THE WAY.
THIS IS JUST EXTORTION PURE AND
SIMPLE AND THE LOGICAL
EXTENSION OF THIS ARGUMENT IS
THAT WE CAN NEVER PASS ON THIS.
IT IS NEVER A GOOD TIME TO ASK
BIG COMPANIES TO TAKE ANY
SOCIAL RESPONSE ABILITY FOR
PAYING TAXES BECAUSE THEY ARE
LIKELY TO KEEL OVER AT ANY
MOMENT OR THEY WILL PICK UP AND
LEAVE IN AN ACT TO PUNISH
ORDINARY PEOPLE WHO HAVE THE
COURAGE TO FIGHT FOR THEIR
RIGHTS.
WE CANNOT ACCEPT THAT
EXTORTION, CERTAINLY NOT IN A
PANDEMIC.
THIS IS ALSO ABOUT, I'M SORRY,
I NEED TO FINISH MY COMMENT.>>
PLEASE WRAP UP THOUGH.
THANKS.
>> THIS IS ALSO ABOUT ECONOMICS.
BIG BUSINESS, SAYING THIS IS
NOT A GOOD TIME, THIS IS NOT
SUPPORTED BY ECONOMICS.
I WOULD SUGGEST THEY DO BASIC
ECONOMIC READING ON THE MEDIA.
HARVARD ECONOMIST HAS SAID THAT
WE MIGHT SEE THE MOTHER OF ALL
FINANCIAL CRISES GOING FORWARD,
EVEN THOUGH CORPORATE OPPONENTS
OF OUR AMAZON TEXT, THEY AGREED
THIS EMERGENCY BILL WILL LAST
WELL BEYOND 2020, AND UNTIL
THERE IS A UNIVERSAL TAXING
PROGRAM, WE WILL HAVE A PUBLIC
HEALTH EMERGENCY.
THE IS AND IS HAVE CLAIMED THAT
A TAX ON BIG BUSINESS WILL
CREATE JOBS IS BAD DURING AN
EMERGENCY. THEY SAY THEY CAN'T
BELIEVE WE ARE DOING THIS, BUT
THEY NEED TO STUDY HISTORY AND
PAY ATTENTION TO BASIC
ECONOMICS BECAUSE WHAT WE ARE
TRYING TO DO IS NOT ONLY SOCIAL
JUSTICE ORIENTED, BUT THIS IS
THE ONLY THING THAT IS GOING TO
HELP ECONOMIC RECOVERY.
THERE IS NO ECONOMIC RECOVERY
WITHOUT PROGRESSIVE REVENUES.
THIS IS CLASSIC 101.
IT IS NOT JUST BECAUSE I AM A
SOCIALIST.
I AM AN ECONOMIST.
THERE ARE OTHERS, BUT ALSO MANY
OTHER ECONOMIST WHO ARE SAYING
THAT WE NEED JOBS FOR PEOPLE AND
WE NEED MONEY IN THE POCKETS OF
WORKING PEOPLE AND THAT IS WHEN
LOCAL ECONOMIES WILL START
SURVIVING AND THRIVING.
WE HEARD FROM DAVID GOSLING
WITH THE PUBLIC COMMENT, WE
HEARD FROM CARLA WHO ARE BOTH
SUPPORTING THE TAX FOR THE SAME
REASON THAT SMALL BUSINESSES
WILL EXPERIENCE A REVIVAL IF
WORKING PEOPLE GET MONEY TO
SPEND IN THEIR LOCAL ECONOMIES.
AS A SOCIALIST, WE NEED TO BE
BEYOND THIS.
TODAY WE ARE ONLY TALKING ABOUT
CLASSIC VEGANISM.
THIS IS THE ONLY THING THAT
BROUGHT THE AMERICAN ECONOMY
OUT OF THE GREAT DEPRESSION,
BUT AT THAT TIME, IT TOOK THE
POLITICIANS AT LEAST THREE
YEARS TO LEARN THE LESSON AND
ACTUALLY CARRY OUT THE PUBLIC
SECTOR EXPANSION.
SO THE QUESTION FOR THIS
COUNSEL IS ARE WE READY TO
REPEAT THE FATAL MISTAKES OF
THE HOOVER ADMINISTRATION
THROUGH INACTION OR WILL BE
RECOGNIZED THE NEED TO BUILD
AFFORDABLE HOUSING RIGHT NOW IS
PART OF ADDRESSING THE COVERT
EMERGENCY. I ALSO HEARD FROM
PEOPLE THAT THIS IS NOT A CITY
ONLY CRISIS.
THIS IS A GLOBAL CRISIS.
WE HAVE TO START SOMEWHERE AND
WE CANNOT WAIT FOR THE
ADMINISTRATION TO ACT ON IT.
WE WENT TO WIDE.
WE HAVE TO START HERE.
THE LAST THING I WILL NOTE IS
THERE CLAIMS, FALSE CLAIMS THAT
THERE IS A NARROW STAKEHOLDER
GROUP THAT DEVELOPED THIS
LEGISLATION. THAT IS FALSE.
THESE ARE NOT RAPID FROM
SUPPORTERS, THESE ARE ORDINARY
WORK PEOPLE, UNION LEADERS,
NONUNIONIZED WORKERS, FAITH
LEADERS AND ACTIVISTS,
COMMUNITY MEMBERS, HOUSING
JUSTICE ADVOCATES.
IT IS PEOPLE OF COLOR.
THESE ARE THOUSANDS OF PEOPLE
WHO HAVE UNINVOLVED AND
HUNDREDS WHO WERE INVOLVED
DIRECTLY IN DRAFTING A
VEGETATION AND VOTING ON EVERY
ASPECT OF THE POLICY.
SO I WOULD URGE TO GIVE RESPECT
TO ORDINARY PEOPLE WHO GETTING
TOGETHER WITH A LOT OF COURAGE.
THE QUESTION IS WILL THE
COUNCIL SHOW THAT KIND OF
LEADERSHIP AND COURAGE AND NOT
ORDER THIS LEGISLATION DOWN.
TAKE ADVANTAGE OF THIS MOMENT
TO SHOW THEY STAND WITH
ORDINARY PEOPLE AND NOT WITH
THE GREED OF THE RICH.
THANKS.
>> COUNCILMEMBER MORALES, DO
YOU HAVE ANY COMMENTS YOU WOULD
LIKE TO INCLUDE FOR THE RECORD
,>> THANKS.
I KNOW THAT WE WILL HAVE A
ROBUST CONVERSATION OVER THE
NEXT FEW WEEKS, SO I APPRECIATE
YOUR ENGAGEMENT IN THIS
DISCUSSION.
WE ARE TWO MONTHS INTO A
PANDEMIC THAT HAS UPENDED OUR
LIVES AND WE ARE ALL CONCERNED
ABOUT THE FUTURE.
OUR FAMILY AND FRIENDS AND
NEIGHBORS HAVE BEEN LAID OFF OR
FURLOUGHED.
SOME HAVE EVEN HAD TO SAY
GOODBYE TO LOVED ONES, AND WE
ALL KNOW THAT THIS PUBLIC
HEALTH CRISIS IS HAVING A
GROSSLY DISPROPORTIONATE IMPACT
ON BLACK AND BROWN PEOPLE.
THOSE WHO CAN'T STAY HOME
BECAUSE THEY ARE ESSENTIAL WORK
PUTS THEM IN HARMS WAY.
SO WHILE THERE IS A GREAT DEAL
OF UNCERTAINTY ABOUT THIS
MOMENT, WHAT IS OBVIOUS IS THAT
AN ECONOMIC CRISIS IS NOT
LOOMING, IT IS HERE AND OUR
CURRENT SYSTEM OF TAXATION IS A
LARGE PART OF WHAT PUT US IN
THE POSITION OF NOT BEING
NIMBLE ENOUGH TO BE ABLE TO
RESPOND THICKLY TO THE CRISIS.
SO WE KNOW WE WILL BE GRAPPLING
WITH THE EFFECTS OF THIS CRISIS
FOR YEARS, AS DIRECTOR NOBLE
SAID TODAY, WE WILL BE IN THE
THICK OF IT FOR QUITE SOME TIME
AND THAT IS EXACTLY WHY WE HAVE
TO DO SOMETHING TO PROVIDE
SUPPORT TO OUR NEIGHBORS WHO
ARE SUFFERING.
I THINK THIS WILL BE A CHAPTER
OF OUR NATIONS HISTORY AND IT
WILL EITHER BE REMEMBERED AS A
MOMENT OF INGENUITY AND
COURAGE, OR AS A SERIES OF
FAILURES.
SO WE HAVE A CHOICE TO MAKE,
AND I DO WANT TO FULLY
ACKNOWLEDGE THAT WE NEED
MASSIVE FEDERAL ASSISTANCE TO
GET THROUGH THIS EMERGENCY, BUT
THE TRUTH IS THAT THE ONE TIME
CHECKS THE FEDS ARE SENDING
WILL NOT BEGIN TO HELP KEEP
FAMILIES AFLOAT, AND MEANWHILE
THE FINANCIAL SECTOR IN THIS
COUNTRY JUST GOT A $2 TRILLION
BAILOUT.
SO THE LEGISLATION THAT WE ARE
SPONSORING WILL ACCOMPLISH
THREE REALLY IMPORTANT GOALS.
IT WILL PROVIDE CASH ASSISTANCE
TO FAMILIES WHO ARE SUFFERING
AND WE KNOW THIS IS A CRITICAL
TOOL FOR LIMITING THE IMPACT OF
THE CRISIS.
UNTIL WE CAN BEGIN TO EMERGE
FROM THE STAY-AT-HOME ORDER.
WE CAN SUPPORT OUR CONSTITUENTS
WITH RESOURCES TO ADDRESS THEIR
IMMEDIATE NEEDS, ESPECIALLY
SINCE SO MANY HAVE BEEN LAID
OFF, AND THIS CAN PROVIDE A
BACKSTOP FOR THE FAMILIES WHOSE
BUDGETS ARE IN FREEFALL RIGHT
NOW.
AS A CITY, WE HAVE ALREADY
ACKNOWLEDGED THE NEED TO EXPAND
THE SAFETY NET.
THAT IS WHY WE HAVE BEEN
WRITING VOUCHERS, WE HAVE ALL
BEEN WORKING ON RENTER
PROTECTIONS AND EVICTION
PROTECTIONS, AND THIS PACKAGE
OF HILLS CAN HELP FAMILIES PAY
FOR THE BARE NECESSITIES THAT
CAN KEEP THEM GOING, WHETHER IT
IS GROCERIES OR DIAPERS OR
PRESCRIPTIONS.
THE SECOND THING THIS WILL DO
IS ADDRESS THE HOMELESSNESS AND
HOUSING EMERGENCY.
THE COVER ARTICLE OF THE
SEATTLE TIMES TODAY TELLS HOW
ONLY PEOPLE LEFT ON DOWNTOWN
STREETS, THE ONLY PEOPLE LEFT
OUR HOMELESS NEIGHBORS, AND
THEY ARE AT RISK OF EXPOSURE TO
COVID EVERY DAY BECAUSE THEY
LACK THE HOUSING AND HYGIENE
RESOURCES THEY NEED TO STAY
SAFE.
WE KNOW THAT OUR HOMELESS
RESPONSE NEEDS TO CHANGE FOR
THE SAFETY AND SECURITY OF OUR
UN-HOUSED NEIGHBORS.
WE ARE ALREADY STARTING TO
EXPERIENCE THE DEVASTATING
EFFECTS OF NOT HAVING PROPER
SHELTERING WITH INCREASED CASES
OF PEOPLE INFECTED WITH
CORONAVIRUS AND NOW ALSO
DEALING WITH THE NEED TO MANAGE
A HEPATITIS OUTBREAK IN
ADDITION TO THE GLOBAL PANDEMIC
. BUT WE ALSO KNOW THAT WE NEED
MASSIVE STRUCTURAL CHANGE ON
HOW WE FUND PUBLIC SERVICES
HERE IN SEATTLE.
WE NEED TO BUILD A MORE
RESILIENT ECONOMY SO THAT NEXT
TIME WE ARE CAUGHT FLAT FOOTED,
WE KNOW AS MANY FOLKS HAVE
ALREADY SAID THAT WE HAVE AN
UPSIDE DOWN TAX CODE IN THE TAX
SYSTEM IN THIS CITY AND STATE,
WHERE THOSE WITH THE LEAST PAY
THE MOST WHILE THE WEALTHIEST
IN OUR COMMUNITY GET A SPECIAL
DEAL.
AFTER HEARING MISTER NOBLES
ACCOUNT ON THE REVENUE
SHORTFALL WE ARE FACING, IT IS
CLEAR THAT IT THE LARGEST
CORPORATIONS IN THE CITY DO NOT
CONTRIBUTE, WE ARE LEAVING
MONEY ON THE TABLE THAT COULD
BE USED TO INVEST IN EXCELLENT
SERVICES IN THE CITY.
SO THE QUESTIONS I HAVE BEEN
ASKING MYSELF ARE WHO BENEFITS
IF WE DO THIS.
IT IS OUR CONSTITUENTS, LIKE
DEANDRE WHO WORRIES HIS KIDS
WILL GO TO BED HUNGRY, LIKE
JAMIL AND DISTRICT TO WHOSE
BUSINESS HAS NOT RECEIVED THEIR
GRANTS OR LOANS THAT ARE BEING
OFFERED TO SMALL BUSINESSES AND
CARLA WHOSE BUSINESS HERE IN
COLUMBIA CITY WE HEARD ABOUT
EARLIER THIS MORNING ALREADY
WHO DOES NOT QUALIFY FOR AN
APPOINTMENT INSURANCE BECAUSE
SHE IS A SMALL BUSINESS OWNER.
BUT I THINK AN EQUALLY
IMPORTANT QUESTION TO ASK IS
WHO BENEFITS IF WE DO NOT DO
THIS?
IT WILL BE POWERFUL SPECIAL
INTEREST WITH THE RESOURCES AND
INFLUENCE TO MANIPULATE OUR TAX
POLICY.
THEY WILL COME OUT AHEAD AND
AVOID PAYING THEIR FAIR SHARE.
THIS BILL REQUIRES 2% OF THE
WEALTHIEST CORPORATIONS IN OUR
CITY TO PAY.
TO PRESENT.
THAT IS ALL IT TAKES TO ALLOW
THE CITY TO CRAFT A SYSTEM THAT
CAN DELIVER THE RESOURCES TO
OUR COMMUNITIES THAT THEY NEED
TO WEATHER THE STORM THAT IS
COMING.
SO THE LAST THING I WILL SAY IS
THAT WE NEED TO PROVIDE LASTING
ECONOMIC SECURITY FOR OUR
NEIGHBORS.
WE CAN'T GO BACK TO WHAT WE HAD
BEFORE BECAUSE WHAT WE HAD
BEFORE WAS NOT SERVING THE MOST
VULNERABLE IN OUR COMMUNITY.
OUR SYSTEM HAS BEEN BASED ON
GIVING SOME FOLKS SHORTCUTS TO
WEALTH AND POWER AND WE HAVE TO
MOVE IN A DIFFERENT DIRECTION
WITH INVESTMENTS IN HOUSING AND
SERVICES AND DIVERSIFYING OUR
BUDGET OPTIONS.
THIS IS THE TIME TO TRANSFORM
HOW WE THINK ABOUT OURSELVES
AND OUR COMMUNITY AND HOW WE
REBUILD OUR COMMUNITIES SO IT
IS ROOTED AN OPPORTUNITY.
WE SHOULD LEARN AT LEAST ONE
THING FROM THE SACRIFICES THAT
WE ARE ALL MAKING DURING THIS
CRISIS AND THAT IS THAT THE
LEGACY OF THIS PANDEMIC SHOULD
BE THAT IT WAS BOTH A GREAT
LEVELER AND A COMMUNITY
BUILDER.
I AM URGING YOU COLLEAGUES TO
SUPPORT THIS INSULATION AND I
URGE THE MAYOR TO RECONSIDER
HER POSITION AND TO SIGN THESE
BILLS ONCE WE PASSED THEM.
THANK YOU.>> THANK YOU FOR YOUR
TRAJECTORY COMMENTS.
AGAIN, COLLEAGUES, WHEN WE HAVE
OUR CONVERSATION NEXT
WEDNESDAY, WE WILL DIVE TO THE
POLICIES THAT WE DO NOT GET THE
CHANCE TO DISCUSS TODAY.
WE DO HAVE WITH US DOCTOR
OLMSTEAD AND TRACY AND ALLIE
FROM CENTRAL STAFF AS WELL WHO
ARE PREPARED TO WALK AS THROUGH
THIS FIRST BILL AS REQUESTED ON
THIS PLAN.
COLLEAGUES, AS BUDGET CHAIR, I
AM ASKING IF YOU HAVE ANY
QUESTIONS ON EITHER OF THE
BILLS, THE ONES THAT WE COVERED
TODAY OR ONES WE WILL COVER
NEXT WEEK, I AM ASKING YOU SEND
AN EMAIL TO MY OFFICE BY FRIDAY
AT NOON SO WE CAN TRY AND GET
SOME OF THOSE QUESTIONS TEED UP
FOR NEXT WEDNESDAY.
AS THE BUDGET CHAIR, THERE IS
THREE PRINCIPLES I AM USING TO
GUIDE OUR CONVERSATION.
MY HOPE IS THAT WE CAN USE THESE
AS WE EVALUATE THE POLICY IN
FRONT OF US.
THE ABILITY TO TAKE IMMEDIATE
AND URGENT ACTION TO ADDRESS
THE ECONOMIC IMPACTS OF
BUSINESSES, WORKERS AND
FAMILIES AND THE CRISIS THEY
ARE FACING.
WE IDENTIFY SOMETHING IMPACTFUL
THAT THE SOLUTIONS THAT WE
DISCUSSED CAN BE SCALED TO THE
SIZE OF THE PROBLEM AND THAT IT
IS INCLUSIVE, NOTING THAT PAST
POLICIES HAVE LEFT THOUSANDS OF
WORKERS AND COMMUNITIES IN THE
MARGINS AND WE NEED TO BE
INCLUSIVE AS WE BOTH CREATE
POLICY AND INCLUSIVE IN
CREATING SOLUTIONS SO EVERYONE
BENEFITS.
I WOULD ALSO ENCOURAGE YOU TO
IDENTIFY QUESTIONS OR ISSUES
THAT YOU WOULD LIKE TO BRING TO
CENTRAL STAFF'S ATTENTION.
I KNOW THEY ARE EAGER TO ISSUE
IDENTIFICATION TOGETHER, AND SO
PLEASE AS WE ASK QUESTIONS OR
CHIME IN, PLEASE HIGHLIGHT SOME
THINGS THAT YOU ARE INTERESTED
IN GETTING FEEDBACK ON.
FOR EXAMPLE, I'M INTERESTED IN
MAKING SURE THAT HIS MASSIVE
SCANNING PROCESS ARE THE ONE
THAT WE ARE ASSESSING SO WE CAN
HAVE THOSE ENTITIES STEP UP AND
HAVE THE RESOURCES THAT WE NEED
TO RECOVER.
I AM INTERESTED IN EXPLORING
POSSIBLE EXEMPTIONS OR
DEFERRALS FOR CERTAIN
STRUGGLING INDUSTRIES.
I AM INTERESTED IN FRONTLOADING
FUNDING FOR FOOD SECURITIES
SUCH AS FOOD BANKS, LOCAL
GROCERY STORES, FARMERS MARKETS
TO MAKE SURE THERE IS FOOD
ASSISTANCE FOR THOSE ACROSS THE
REGION.
I'M INTERESTED IN SMALL
BUSINESS SUPPORT, WAGE
REPLACEMENT AND RENTAL
ASSISTANCE.
SIMPLY I AM INTERESTED IN THE
PROPOSALS AS WE HAVE DISCUSSED
THEM IN MORE DETAIL TO MAKE
SURE WE GET MONEY AND RELIEF TO
WORKERS AND FAMILIES TO PROMOTE
ECONOMIC RELIEF AND ENSURE
EVERYONE CAN PARTICIPATE IN THE
ECONOMY.
WE HAVE A ROBUST DISCUSSION
AHEAD OF US.
THIS IS JUST THE BEGINNING AND
I WILL NOTE OUR MEETING NEXT
WEEK, WE WILL HAVE PUBLIC
TESTIMONY, BUT WE WILL RESERVE
THE LARGE PORTION OF THE
MEETING TO GET INTO DETAILS ON
ANY BILLS WE DO NOT DISCUSS
TODAY.
WITH THAT, THANKS TO OUR
CENTRAL STAFF ARE GETTING IS
KICKED OFF.
THIS IS THE LEGISLATIVE
PROCESS, A TIME FOR US TO UNITE
DIFFERENCES WE HAVE AND
HOPEFULLY MAKE TOUGH AND SMART
POLICY CHOICES THAT TRULY HELP
EVERYONE.
I AM LOOKING FORWARD TO WORKING
WITH ALL OF YOU TO MAKE SURE WE
HAVE AN INCLUSIVE CONVERSATION
ABOUT POLICIES IN FRONT OF US
AND ANY OTHER STRATEGIES FOLKS
ARE INTERESTED IN HIGHLIGHTING.
I WILL TURN IT OVER TO YOU TO
MAKE INTRODUCTORY REMARKS AND
TURN IT OVER TO YOUR CENTRAL
STAFF.
THANK YOU FOR BEING WITH US ON
THE LINE.
YOU ARE ON MUTE.
>> THANK YOU MADAM CHAIR AND
MEMBERS OF THE COMMITTEE.
I AM KIERSTEN, DIRECTOR OF
COUNSEL CENTRAL STAFF AND I
WOULD LIKE TO SPEND TWO MINUTES
ON TWO ITEMS.
FIRST IS THE CONTEXT, OR HOW WE
GOT HERE, AND SECOND, THE ORDER
OF THE CENTRAL STAFF
HESITATION, IN THAT IT DIFFERS
FROM THE PUBLISHED AGENDA.
SO BY WAY OF CONTEXT, YOU MAY
RECALL THAT COUNCILMEMBERS
SEWANT AND MORALES HELD A PRESS
CONFERENCE IN FEBRUARY OF THIS
YEAR.
THE ANNUAL REVENUE GOAL FOR
THAT PROPOSAL, WHICH IS
REFERRED TO AS THE TAX ON
CORPORATE PAYROLLS WAS $300
MILLION ANNUALLY BEGINNING IN
2021.
SHORTLY AFTER THE PRESS
COVERAGE, THE MAYOR DECLARED A
CIVIL EMERGENCY RELATED TO THE
COVID 19 OUTBREAK ON MARCH 3,
AND ON MARCH 5, THE COUNCIL
MODIFIED THE MAYOR'S
PROCLAMATION RESOLUTION 31937.
COUNCILMEMBERS SEWANT AND
MORALES, IN RESPONSE TO THE
ECONOMIC IMPACTS OF THE CRISIS
REQUESTED THAT CENTRAL STAFF
AMEND THEIR ORIGINAL TAX
PROPOSAL.
THE NEW PAYROLL EXPENSE TAX
PROPOSAL WOULD RAISE AN
ADDITIONAL $200 MILLION PER YEAR
, BRINGING THE TOTAL ANNUAL
REVENUE TO 500 MILLION.
THIS NEW PACKAGE INCLUDES THREE
SEPARATE BUT INTERCONNECTED
BILLS AS SHOWN ON SLIDE ONE OF
THE POWERPOINT, INCLUDING THE
NAMES OF THE LEAD CENTRAL STAFF.
SO THE NORMAL ORDER OF CENTRAL
STAFF PRESENTATIONS AND
DISCUSSIONS WITH MANY OF YOU
HAVE FOLLOWED TODAY'S AGENDA.
WE WOULD HAVE FIRST DISCUSSED
THE TAX BILL THAT OUTLINES THE
REVENUE GOAL, THE TAX STRUCTURE
AND EXEMPTIONS.
SECONDLY, WE WOULD HAVE
DISCUSSED THE INTERFUND LOAN
BILL THAT SUPPORTS THE
BORROWING OF MONIES FROM
VARIOUS TARGETED CITY ACCOUNTS
TO FUND THE SPONSORS IMMEDIATE
SPENDING PRIORITIES.
THIRD, AND LAST, WE WOULD HAVE
DISCUSSED THE SPENDING PLAN
BILL THAT DESCRIBES TAX
REVENUES WOULD HE SPEND.
HOWEVER, AT THE REQUEST OF THE
CHAIR, WE ARE REVERSING THIS
ORDER TODAY.
CENTRAL STAFF WILL SPEAK FIRST
TO THE SPENDING PLAN BILL
FOLLOWED BY A DISCUSSION ON THE
TAX AND INTERFUND LOAN BILLS.
BEFORE MOVING TO THE SPENDING
PLAN DISCUSSION, THE GOAL IS TO
WITHHOLD QUESTIONS UNTIL THE
CONCLUSON OF EACH BILLS
PRESENTATION, AND I WOULD JUST
LIKE TO NOTE THAT CENTRAL STAFF
WILL ENDEAVOR TO ASK QUESTIONS
ABOUT WHAT EACH BILL DOES.
THAT IS TO ANSWER THE TECHNICAL
DETAILS OR QUESTIONS HERE
HOWEVER, CENTRAL STAFF WILL
LOOK TO THE BILLS SPONSORS TO
ANSWER QUESTIONS REGARDING THE
WHY OF EACH BILL AS THESE ARE
POLICY CHOICES.
SO WITH THAT, I WILL TURN IT
OVER TO TRACY AND ALLIE OF
COUNSEL CENTRAL STAFF.
THANKS.
>> GOOD MORNING.
>> AS DIRECTOR AND STAFF HAS
INDICATED, WE WILL PROVIDE A
SUMMARY OF THE PROPOSED
SPENDING PLAN LEGISLATION.
MOVING TO SLIDE THREE, OUR
PRESENTATION WILL COVER THE
FOLLOWING KEY ELEMENTS OF THAT
LEGISLATION.
THE EMERGENCY CASH ASSISTANCE,
SPENDING BY CATEGORY IN YEAR
2021 THROUGH 2025, AND THEN
LIMITATIONS.
THIS PRESENTATION WILL TRACK
WITH A MEMO THAT WAS EMAILED TO
YOU ON FRIDAY AS ATTACHED TO
TODAY'S AGENDA.
THIS DESCRIBES THE FIRST
CATEGORY OF SPENDING, WHICH IS
THE EMERGENCY CASH ASSISTANCE.
$200 MILLION WILL BE PROVIDED
IN 2020 TO ASSIST UP TO 100,000
LOW INCOME HOUSEHOLDS INCLUDING
SENIORS, IMMIGRANTS AND REFUGEES
, PEOPLE EXPERIENCING
HOMELESSNESS AND OTHERS
IMPACTED BY THE CRISIS.
THE CASH ASSISTANCE WILL BE
FUNDED WITHIN INTERFUND LOAN IN
2020 AND REPAID WITH REVENUES
FROM THE TAX AND CORPORATE
PAYROLL COLLECT DID IN 2022.
YOU WILL HEAR MORE ABOUT THESE
FUNDS WHEN THE BILLS ARE
DISCUSSED BY TOM NEXT WEEK.
PAYMENTS OF $500 PER MONTH OVER
A FOUR-MONTH PERIOD WILL BE
PROVIDED TO HOUSEHOLD FOR A
TOTAL OF $2000 PER HOUSEHOLD.
DISTRIBUTIONS OF FUNDS COULD BE
BASED ON THE MODEL THAT HAS
BEEN USED FOR THE EMERGENCY
GROCERY VOUCHER PROGRAM.
THE GOAL OF THIS PROGRAM WAS TO
GET THE DOLLARS OUT AS QUICKLY
AS POSSILE AND TO TARGET IT TO
THOSE MOST IN IMMEDIATE NEED,
INCLUDING FAMILIES WITH
CHILDREN AND IN PARTICULAR
IMMUNITIES OF COLOR WHO MAY NOT
HAVE READY ACCESS TO NORMAL
GOVERNMENT ASSISTANCE PROGRAMS.
THE FIRST $100 MILLION WILL BE
DISTRIBUTED TO LOW INCOME
HOUSEHOLDS AND AND ROLLED AND
EXISTING PROGRAMS OR STATE
ASSISTANCE PROGRAMS
ADMINISTERED BY THE CITY.
THESE PROGRAMS INCLUDE UTILITY
DISCOUNT PROGRAMS, EARLY
CHILDHOOD EDUCATION AND
ASSISTANCE PROGRAMS, CHILDCARE
ASSIST'S PROGRAMS, SEATTLE
PREACHED TO PROGRAM AND PATHWAY
TO SEATTLE PRESCHOOL PROGRAM.
THE REMAINING 100 MILLION WOULD
BE DISTRIBUTED TO THOSE
IMPACTED BY THE COVID 19 CRISIS
, BUT NOT ENROLLED IN THE
EXISTING STATE ASSISTANCE
PROGRAM.
THESE FUNDS WOULD BE
PRIORITIZED FOR LOW INCOME
HOUSEHOLDS WHO ARE UNEMPLOYED
OR HAVE WORK HOURS REDUCED,
SENIORS, IMMIGRANTS AND
REFUGEES, THOSE AT RISK OF
DEPORTATION, THOSE EXPERIENCING
HOMELESSNESS, THOSE WITH WHICH
BARRIERS, OR THOSE EXPERIENCING
DOMESTIC VIOLENCE.
THE LEGISLATION DIRECTS THE
EXECUTIVE TO DEVELOP
ELIGIBILITY CRITERIA FOR
DISTRIBUTING THE SECOND TRANCHE
OF HUNTING AND TO PROVIDE A
WRITTEN REPORT PRIOR TO
DISTRIBUTION.
ONCE DISTRIBUTION BEGINS, THE
EXECUTIVE WILL BE REQUIRED TO
GET MONTHLY REPORTS ON THE
ALLEGATIONS MADE.
ALLIE WILL GO OVER THE SPENDING
PLAN FOR 2021 TO 2025.
>> THANK YOU TRACY.
I MEANT GOOD AFTERNOON BEFORE.
THIS TABLE OUTLINES THE
PROPOSED SPENDING BY CATEGORY
FOR YEARS 2021 THROUGH 2025.
THE SPENDING PLAN ASSUMES THE
ANNUAL TAX REVENUE FOR 2020 IS
286 MILLION, ASSUMING A JUNE 1
EFFECTIVE DAY AND 500 MILLION
FOR 2021.
THEN INCREASES ANNUAL FOR
INFLATION ON ALL FUTURE YEARS.
PAYMENT OF TAXES OWED FOR 2020
AND 2021 WILL NOT BE REMITTED
UNTIL FEBRUARY 2022, BUT THOSE
PAYMENTS GET ACCRUED BACK TO
2021, THEREFORE THE SPENDING
FOR 2021 INCLUDES THE ESTIMATED
TAX REVENUE FOR BOTH YEARS.
IN 2021, ABOUT 205 MILLION
WOULD BE USED TO REPAY THE
INTEREST OWED ON THE INTERFUND
LOAN FOR EMERGENCY CASH
ASSISTANCE THAT TRACY JUST
DESCRIBED.
AFTER PAYING BACK THAT LOAD IN
2021 AND FOUR ALL FUTURE YEARS
AFTER FUNDING THE COST TO
IMPLEMENT AND ADMINISTER THE
PROGRAMS, 75% OF THE TAX
REVENUE WOULD BE USED TO
DEVELOP AND ACQUIRE AFFORDABLE
SOCIAL HOUSING AND TO PROVIDE
ONGOING OPERATING AND SERVICE
COST FOR PERMANENT SUPPORTIVE
HOUSING UNITS.
THE REMAINING 25% WOULD BE USED
TO SUPPORT IMPLEMENTATION OF
SELECT HOUSING RELATED
STRATEGIES IDENTIFIED IN
RESOLUTION 31895 RELATED TO
SEATTLE'S GREEN NEW DEAL.
I WILL NOTE ON THIS SLIDE AND
THE TITLE FOR THE INTERFUND
LOAN, IT IS INTENDED TO BE
ALONE.
SO MOVING TO THE NEXT SLIDE,
SLIDE SIX, I WILL GO INTO MORE
DETAIL ON THE PROPOSED SPENDING
FOR SOCIAL HOUSING INVESTMENTS
AND GREEN NEW DEAL
INVESTMENTS.>> SO SORRY, JUST A
QUICK REMINDER, I AM GOING TO
PAUSE AFTER EACH ONE OF THESE
BUCKETS SO THAT YOU CAN ASK
QUESTIONS SPECIFIC TO THE
BUCKETS.>> OKAY.
SO AS I JUST NOTED, 75% OR
ABOUT 1.9 BILLION WOULD BE USED
TO FUND THE ACQUISITION OF
ABOUT 5600 HOUSING UNITS,
AFFORDABLE TO HOUSEHOLDS
THROUGH INCOMES BETWEEN ZERO
AND 100% OF MEDIAN INCOME BY
THE END OF 2025.
THERE IS AN ERROR ON THE SLIDE
THAT SAYS IT WOULD SERVE
HOUSEHOLDS OF COMES 0 TO 84% IT
IS NOTED IN THE LEGISLATION
THAT IS MEANT TO BE 0 TO 100%
OF AMI INCOME.
THE UNIT ESTIMATES OF 5600 IS
BASED ON THE NUMBER OF
ASSUMPTIONS LISTED ON PAGE 4 OF
THE CENTRAL STAFF MEMO.
I WILL NOT GO INTO DETAILS NOW,
BUT IT IS WORTH NOTING THAT
DEPENDING ON WHAT ASSUMPTIONS
YOU USE THAT WOULD CHANGE THE
ESTIMATE COMING OUT OF THE
MODEL.
FOR THE ACTUAL NUMBER OF UNITS,
THEY WILL VARY SIGNIFICANTLY
DEPENDING ON THE TYPE OF UNITS,
LOCATION OF THE DEVELOPMENT,
CONSTRUCTION COST, ETC.
DETAILS ON THE SPECIFIC
INVESTMENTS WILL BE INCLUDED IN
THE IMPLEMENTATION PLAN THAT
TRACY WILL DESCRIBE AND THAT
COULD INCLUDE THINGS LIKE
SPECIFYING HOW THE INVESTMENTS
ARE BROKEN OUT BETWEEN
ACQUISITION OR BUILDING NEW
UNITS AS WELL AS TARGETING
SPECIFIC INCOME LEVELS.
THE PROPOSAL REQUIRES NEW
HOUSING WILL BE BUILT AND THE
PROJECTS INCLUDE PRIORITY
REQUIREMENTS, PREVAILING WAGES,
UTILIZATION AND OTHER LABOR
STANDARDS TO BE INCLUDED IN A
COMMUNITY WORKFORCE AGREEMENT.
DEPENDING ON THE RANGE OF LABOR
STANDARDS, THAT COULD ALSO
CHANGE THE ASSUMPTIONS AROUND
THE PER-UNIT COST ESTIMATES,
WHICH WOULD ALSO IMPACT THE
NUMBER OF UNITS WE WOULD
ESTIMATE COULD BE BUILT.
THAT IS A SUMMARY OF THE SOCIAL
HOUSING INVESTMENTS.
WOULD YOU LIKE ME TO PAUSE?
>> WHY DON'T YOU GO AHEAD,
SINCE WE SEEM TO BE GOING
RELATIVELY FAST THROUGH THIS
FIRST PORTION OF THE
PRESENTATION, GO AHEAD WITH THE
CASH ASSISTANCE, AND GREEN NEW
DEAL INVESTMENTS AND THEN WE
CAN SEE IF THERE IS QUESTIONS.
>> THANKS.
WE INTENTIONALLY TRY TO KEEP
OUR PRESENTATION BRIEF SO WE
HAVE TIME TO ANSWER SOME
QUESTIONS TODAY AND COLLECT
QUESTIONS THAT NEED TO BE
ADDRESSED IN THE FUTURE.
SO AFTER SPENDING ON SOCIAL
HOUSING, 25% OF REMAINING
FUNDING OR $640 MILLION A YEAR
2021 THROUGH 2025 WOULD BE USED
FOR INVESTMENTS IN HOUSING
THE GREEN NEW DEAL RESOLUTION.
FUNDING WOULD BE PRIORITIZED
FOR INVESTMENTS TO CONVERT
RESIDENTIAL HOUSING UNITS FROM
NATURAL GAS AND HEATING OIL TO
ELECTRIC.
WEATHERIZATION OF EXISTING
RESIDENTS WITH THE PRIORITY OR
MULTIFAMILY RENTAL HOUSING,
SOLAR INSTALLATIONS AND
INVESTING AND JOB TRAINING
PROGRAMS TO HELP WORKERS
TRANSITION FROM JOBS THAT ARE
DEPENDENT ON THE FOSSIL FUEL
INDUSTRY TO THE GREEN ECONOMY.
ULTIMATELY THE INVESTMENT
DECISIONS WILL BE DETAILED IN
THE IMPLEMENTATION PLAN WITH
INPUT AND RECOMMENDATIONS FROM
THE YET TO BE ESTABLISHED GREEN
NEW DEAL OVERSIGHT BOARD.
UNLESS THERE ARE QUESTIONS
HERE, TRACY WILL WALK THROUGH
THE OTHER PROVISIONS OF THE
LEGISLATION RELATED TO
IMPLEMENTATION.
>> LET'S DO IMPLEMENTATION AND
THEN WE WILL TAKE SOME
QUESTIONS.>> MOVING TO SLIDE
SEVEN.
THE EXECUTIVE IS DIRECTED TO
SUBMIT AN IMPLEMENTATION PLAN
TO THE COUNSEL FOR THE NEW TAX
THAT WOULD THE LEGISLATION
CURRENTLY SAYS IT WOULD BE
2020.
WE WILL NEED TO INSERT A
SPECIFIC DATE AND DEPENDING ON
WHEN IF THIS LEGISLATION IS
ADOPTED, WE MAY NEED TO DIG
ABOUT THE TIMING OF THAT PLAN
BASED ON THE BOARDS I WILL
DISCUSS,. THEY ARE ABLE TO BE
STIRRED UP SO THEY CAN PROVIDE
SOME INPUT BECAUSE THE PLAN THE
LEGISLATION DOES REQUIRE THE
EXECUTIVE WORK WITH THE SOCIAL
HOUSING BOARD AND THE GREEN NEW
DEAL OVERSIGHT BOARD TO DEVELOP
THAT IMPLEMENTATION PLAN.
THIS PLAN WOULD INCLUDE SPECIFIC
PROPOSAL FOR HOUSING SERVICES
AND GREEN NEW DEAL INVESTMENTS
FOR YEARS 2021 THROUGH 2025.
CONSISTENT WITH THOSE INCLUDED
IN THE LEGISLATION.
THE PROPOSED OUTCOMES FOR
FUNDED PROGRAM OUR SERVICE
WOULD BE INCLUDED IN THE PLAN,
HOW THE PROGRAMS OR SERVICES
WILL BE UNLIMITED, SUCH AS THE
PLANNING PROCESSES, PROPOSED
POLICIES FOR SERVICES THAT
PRIORITIZE INVESTMENTS AND
COMMUNITIES AND THOSE AT RISK
OF DISPLACEMENT.
SOCIAL HOUSING BOARD AND GREEN
NEW DEAL BOARD WILL
COORDINATING TO PROVIDE ONGOING
PROGRAM AND POLICY REVIEW
OVERSIGHT AND MONITORING OF
EXPENDITURES AND PERFORMANCE OF
THE PROGRAMS AND SERVICES
IMPLEMENT IT ALSO ANY NECESSARY
CHANGES TO THE CITIES HOUSING
FUNDING POLICIES, INCLUDING AN
ANNUAL REPORTING REQUIREMENT.
MOVING ONTO THE OVERSIGHT
BOARD, A NEW SOCIAL HOUSING
BOARD SUPPORTED BY THE OFFICE
OF HOUSING WOULD BE CREATED TO
GUIDE AND OVERSEE ALL HOUSING
RELATED SERVICES INVESTMENTS.
THIS WOULD BE A 23 MEMBER BOARD
INCLUDING THREE REPRESENTATIVES
FROM EACH COUNCIL DISTRICT +2
OR MORE ENGAGED MEMBERS.
MEMBERS OF THE BOARD WOULD
INCLUDE RENTERS AND HOMEOWNERS,
INDIVIDUALS FROM
UNDERREPRESENTED GROUPS AS WELL
AS INDIVIDUALS WITH HOUSING
DEVELOPMENT AND FINANCE
EXPERIENCE.
INITIAL MEMBERSHIP WOULD BE
ESTABLISHED THROUGH A COUNSEL
APPOINTING PROCESS.
BEFORE THE EXPIRATION OF THE
INITIAL APPOINTMENT, ESTIMATED
TO BE 22 THREE.
AN AMENDMENT WOULD OCCUR FOR
MEMBERS TO BE ELECTED BY THE
PEOPLE.
IF THE CHARTER IS NOT AMENDED,
THE COUNSL WOULD CONTINUE TO
APPOINT MEMBERS TO THE BOARD.
THIS BOARD WOULD DIVIDE ONGOING
MONITORING OF EXPENDITURES AND
MAKE A RECOMMENDATION ON ANY
FUTURE CHANGES TO THE PLAN OR
HOUSING FUNDING POLICIES,
CHANGES TO THE OFFICE OF
HOUSINGS ANNUAL FUNDING REQUEST
PROPOSALS AND CHANGES TO THE
ANNUAL HOUSING PRIORITIES
FUNDED WITH REVENUES FROM THE
TAX ON CORPORATE PAYROLL.
THE GREEN NEW DEAL OVER THE
BOARD ESTABLISH WOULD OVERSEE
THE PROPOSED INVESTMENTS IN THE
STRATEGIES.
IT WOULD ALSO BE REQUIRED TO
MEET ANNUALLY THE SOCIAL
HOUSING BOARD AND TO COORDINATE
THEIR ACTIVITIES AND TO MAKE
RECOMMENDATIONS TO THE CITY
COUNCIL AND THE MAYOR ON THE
NEW DEAL HOUSING RELATED
STRATEGIES AS WELL AS OTHER
FUNDING STRATEGIES.
AS IT RELATES TO
APPROPRIATIONS, THE LEGISLATION
INCLUDES A $200 MILLION
APPROPRIATION FOR CASH
ASSISTANCE THAT WILL TAKE PLACE
IN 2020.
IT DOES NOT IDENTIFY A SPECIFIC
CITY DEPARTMENT TO DIRECT THE
APPROPRIATION, SO WE WILL NEED
TO AMEND THE LEGISLATION PRIOR
TO ENACTMENT TO INCLUDE WHICH
DEPARTMENT THAT WOULD BE
TARGETED TO.
FINALLY, THE SPENDING PLAN
CESSATION IS PROPOSED TO
PROVIDE A RESPONSE TO THE
REPUBLIC NEEDS AND THE
HOMELESSNESS CIVIL EMERGENCY.
THEREFORE, IT WOULD BECOME
EFFECTIVE IMMEDIATELY IF PASSED
BY THREE QUARTERS OF THE
COUNCILMEMBERS AND SIGNED BY
THE MAYOR.
ALLIE AND I WOULD BE HAPPY TO
ANSWER QUESTIONS YOU HAVE ABOUT
THE LEGISLATION.
>> THANKS SO MUCH FOR YOUR TIME
AND YOUR PRESENTATION.
CAN WE GO BACK UP TO THE LIGHT
FIVE AND KEEP THAT ON THE
SCREEN FOR FOLKS TO TAKE A LOOK
AT.
COLLEAGUES, MY INTENT WAS TO
TAKE QUESTIONS FROM YOU ON THE
FOUR BUCKETS YOU SEE HERE.
THE FIRST REPAYMENT FOR
EMERGENCY ASSISTANCE BUCKETS,
THE SECOND, THE AFFORDABLE
HOUSING BUCKET AND SERVICES,
THE THIRD, THE GREEN NEW DEAL
IMPLEMENTATION AND THE START OF
THE ONGOING ADMINISTRATIVE
COST.
FEEL FREE TO ASK QUESTIONS
ABOUT ANY OF THOSE PAUSING. WE
APPRECIATE THAT, AND YOUR STAFF
MEMOS THAT YOU SENT OUT ON
FRIDAY EVENING AS WELL PICK A
LOT OF HARD WORK HAS GONE INTO
HELPING TO EXPLAIN THE
LEGISLATION IN FRONT OF US AND
THIS IS JUST THE ONE BILL ON
THE SPENDING PLAN.
COLLEAGUES, I WILL GO THROUGH
THE ORDER TO SEE IF ANYONE HAS
ANY QUESTIONS AND FEEL FREE TO
PASS IF YOU DO NOT.
GONZALEZ, DO YOU HAVE ANY
QUESTIONS?>> NO QUESTIONS AT
THIS POINT.>> COUNCILMEMBER
HERBOLD?
>> YOU MAY BE ON MUTE.
OKAY.
I WILL COME BACK TO HER.
COUNCILMEMBER JUAREZ , I
RECEIVED A NOTE THAT SHE DOES
NOT HAVE ANY QUESTIONS, BUT
PLEASE ME KNOW IF YOU DO HAVE
QUESTIONS LATER.
COUNCILMEMBER LEWIS.
>> THANK YOU.
JUST A BRIEF CLARIFICATION.
LOOKING AT THE $200 MILLION FOR
THE INTERFUND LOAN TO BE REPAID
IN 2021, IS THAT 205 MILLION
NUMBER INCLUSIVE OF INTEREST OR
IS THAT BEFORE INTEREST?
IF SO, HOW MUCH INTEREST WOULD
ACCRUE AND HOW DOES THAT FACTOR
INTO THE OVERALL LOAN TO BE
REPAID IN 2021?
>> THANK YOU.
SO THAT 205 MILLION DOES ASSUME
BOTH THE PRINCIPAL PAYING BACK
THE $200 MILLION VISIBLE PLUS
INTEREST.
THE EXACT INTEREST THAT WILL BE
OWED IS NOT CERTAIN RIGHT NOW,
SO WE WERE LOOKING ABOUT 1 1/2%
INTEREST, BUT WE ROUNDED UP A
BIT, SO THAT THERE IS ENOUGH
THERE TO BOTH REPAY THE
PRINCIPAL AND ANY INTEREST OWED,
SO WE DO NOT EXPECT MORE THAN
$205 MILLION TO REPAY BACK THAT
LOAN.
THE WAY THE LEGISLATION IS
STRUCTURED IS IF IT IS LESS
THAN 205 MILLION, ANYTHING LEFT
OVER WOULD BE SPLIT BETWEEN THE
GREEN NEW DEAL INVESTMENTS.
>> THANK YOU FOR CLARIFYING.
>> COUNCILMEMBER LEWIS, I DO
THINK THAT WE HAVE SOMEONE WHO
MIGHT NOT WANT TO BE AN MUTED.
IF THERE IS ANY OTHER
QUESTIONS, I WILL MOVE ON.
>> NO THANK YOU.
>> THANK YOU.
I WILL COME BACK TO THE BILL IF
THERE IS NOT ANY QUESTIONS.
LET ME GO TO THE NON-SPONSORS
FIRST AND I WILL COME BACK TO
YOU ALL.
COUNCILMEMBER PEDERSEN, ANY
QUESTIONS FROM YOU?
>> THANK YOU.
I DO NOT HAVE ANY QUESTIONS AT
THIS TIME.
I DO HAVE CONCERNS ABOUT THE
LEGISLATION, BUT I THOUGHT
ABOUT THOSE AT THE NEXT
COMMITTEE MEETING.
>> THAT SOUNDS FINE, THANK YOU.
COUNCILMEMBER STRAUSS, ANY
QUESTIONS?
>> NO QUESTIONS.
THANK YOU.
>> I HAVE A FEW QUESTIONS.
DID YOU HAVE ANY QUESTIONS THAT
YOU WOULD LIKE TO THROW IN
BEFORE ASK MINE?
>> I DO NOT, THANK YOU.
>> THANK YOU.
>> I WAS GOING TO SAY YOU
SHOULD GO AHEAD, AND THEN AFTER
YOU, I HAVE A COUPLE
QUESTIONS.>> OKAY, THANK YOU.
WE WILL COME BACK TO YOU.
I HAVE A QUESTION HERE ON THE
BREAKDOWN OF THE AMI AS IT
RELATES TO THE HOUSING FUNDING.
CAN YOU TALK ABOUT HOW THE AMI
BREAKDOWN COMPARES WITH THE NEED
BASED ON THE NUMBERS OF RENT
BURDENED HOUSEHOLDS?
>> SURE.
SO THE MOST RECENT INFORMATION
WE HAVE FROM THE AMERICAN
COMMUNITY SURVEY DATA FROM 2012
THROUGH 2016 SHOWS, SO THERE IS
A TOTAL OF ABOUT, I WANT TO SAY
67,000 RENTERS FROM 0 TO 100%,
OR OVER 100% WHO ARE RENT
BURDENED.
WHEN YOU LOOK AT WHERE THE
NUMBERS BREAKDOWN IN TERMS OF
AMI, BY THOSE WHO ARE MOST
SIGNIFICANTLY RENT BURDENED,
YOU SEE THAT FROM 0 TO 80% OF
AMI, WE HAVE 60,000 OF THOSE
67,000 PEOPLE WHO ARE RENT
BURDENED, AND THE REMAINING
NUMBER FROM 80% TO 100%, THAT
IS RIGHT, SO YOU ARE LOOKING AT
ABOUT 7000 FROM 80% AND ABOVE
WHO ARE RENT BURDENED, SO WHEN
YOU LOOK AT THE TOTAL
HOUSEHOLDS THAT ARE RENT
BURDENED, 67,000 APPROXIMATELY,
60,000 OF THOSE HOUSEHOLDS ARE
FROM 0 TO 80% OF AMI, AND
OBVIOUSLY, THAT LEAVES THE
REMAINDER OF ABOUT 7000 THAT
ARE FROM 80% OF AMI BELOW 100%
OF AMI.
WE HAVE A CHART WE CAN SEND YOU
THAT SHOWS THAT BREAKDOWN.
>> THANK YOU SO MUCH.
THAT WILL BE HELPFUL.
HAVING HAD YOU WALK ME THROUGH
HOUSING PROPOSALS IN THE PAST,
I HAVE A QUESTION ABOUT WHETHER
OR NOT THE SPENDING PLAN HERE
THAT ASSUMES SPENDING ON
HOUSING FROM 80 TO 100% AMI
INCLUDES THE CITY FROM
LEVERAGING OTHER SOURCES OF
HOUSING TO MAKE OUR DOLLARS GO
FURTHER.
>> TYPICALLY THE AVAILABLE
SOURCES OF TO LEVERAGE THE CITY
DOLLARS ARE THE TAX CREDIT
FUNDING AND HOUSING TRUST FUND
FUNDING AND THOSE ALL OUR
LIMITED TO A 280% OF AMI, AND
FRANKLY MOST OF THEM SKEWED
DOWN TOWARDS 60% AND LOWER, AND
THAT IS BECAUSE OF THE NEEDS
DATA THAT SHOWS THE GREATEST
NEED IS THAT THOSE LOWER
INCOMES.
SO GOING ABOUT 80% OF AMI, WE
WILL TAKE OURSELVES OUT OF THE
ABILITY TO LEVERAGE THE TAX
CREDIT PROGRAM BECAUSE THAT
WILL NOT ACCEPT ANY PROJECTS
THAT HAVE ANYTHING ABOUT 80% OF
EMI, AND ABOVE 80% FOR TAX
CREDIT PURPOSES WE ARE PROBABLY
GOING TO LOSE COMPETITION FOR
THOSE TAX CREDITS BECAUSE YOU
GET MORE POINTS FOR SERVING
PEOPLE AT LOWER INCOMES.>> IT
IS ALSO WORTH NOTING THAT IT IS
EXPRESSED IN THE CONSUMPTIONS
INCLUDED, BUT THERE ARE, WE
ASSUMED CONSERVATIVELY THAT IN
MOST CASES, THE CITY IS PAYING
THE FULL COST PER UNIT FOR
PERMANEN SUPPORTIVE HOUSING
UNITS AS WELL AS THOSE UNITS
SERVING HOUSEHOLDS BETWEEN 30
AND 100% OF AMI, AND THAT IS
FOR THE REASONS THAT TRACY JUST
EXPLAINED BECAUSE OF HOW THOSE
FUNDING SOURCES TYPICALLY
PRIORITIZE DEEPER LEVELS OF
AFFORDABILITY, BUT ALSO BECAUSE
THERE ARE LIMITATIONS TO HOW
MUCH, HOW MANY PROJECT CAN BE
LEVERAGED THROUGH THOSE FUNDING
SOURCES, SO FOR EXAMPLE
PERMANENT SUPPORTIVE HOUSING
UNITS ARE OFFERED LEVERAGED
å0%, WE THINK IT IS LIKELY THAT
THOSE RESOURCES ARE LIKELY TO
BE TAPPED OUT WITH OTHER
INVESTMENTS, THE HOUSING LEVEL
WE ASSUMED FOR ALL PERMANENT
SUPPORTIVE HOUSING UNITS THAT
THE CITY IS PAYING THE POLICE
UNIT COST, AND THEN WE ASSUME
THAT 80% OF ALL OTHER UNITS
FUNDED WOULD BE FULLY PAID FOR
BY THE CITY AND NOT LEVERAGED,
SO IT IS BOTH HOW THOSE
PROJECTS CAN COMPETE AND WHAT
WE ARE CONSERVATIVELY ASSUMING
WILL BE AVAILABLE, IF THOSE
ASSUMPTIONS ARE WRONG,
OBVIOUSLY THE UNIT COUNT
ESTIMATE WOULD CHANGE.
>> OKAY.
THANK YOU SO MUCH FOR THAT.
TRACY, I LOOK FOR TO THAT
CHART.
ALLIE, IF THAT INFORMATION IS
ALSO FOLDED INTO THE CHART YOU
SHARED, THAT WOULD BE HELPFUL.
WE ARE COMING UP ON OUR FREE
HOUR MARK HERE.
ON THE HOUSING OVERSIGHT BOARD,
CAN YOU TELL ME, HAS THERE BEEN
ANY SIMILAR OVERSIGHT BOARD
THAT HAS HELD ELECT TO
POSITIONS IN THE PAST.
IS THERE A PRECEDENT FOR THAT,
OR WOULD THIS BE A NEW
STRUCTURE?>> WE ARE NOT AWARE
OF ANOTHER CITY OVERSIGHT BOARD
THAT HAS BEEN ELECTED BY THE
PEOPLE
>> HISTORICALLY, THE LIBRARY
BOARD WAS ELECTED LIKE, 50
YEARS AGO.
I AM NOT COMPLETE BE SURE OF
THAT, BUT JUST THROWING THAT
OUT THERE.
>> THANK YOU.
>> I GUESS I WOULD FLAG THAT OR
CANCEL DENTAL STAFF, MAYBE LOOK
INTO WHY WE DO NOT DO THAT
ANYMORE, BUT I BELIEVE THE
LIBRARY BOARD USED TO BE
ELECTED, BUT ANYWAY.
>> THANK YOU SO MUCH.
AND THEN MY LAST QUESTION HERE,
ON THE CASH ASSISTANCE, CAN WE
ESTIMATE HOW MANY PEOPLE
QUALIFY FOR THE CITY PROGRAM
THAT WERE LOOKING FORWARD TO
GIVE CASH ASSISTANCE TO, AND I
GUESS GIVEN THE SCALE OF THE
NEED THAT WE HAVE SEEN, IF IT
IS LESS THEN 50 DOESN'T KEEP,
HOW ARE WE PRIORITIZING PEOPLE
TO SEND THAT CASH ASSISTANCE
TO, IS THERE THAT ARE ACTIVE IN
THE LEGISLATION ALREADY?>> THE
EXECUTIVE, SO WE HAD SOME
NUMBERS ON THE NUMBER OF
ENROLLEES, FOR EXAMPLE IN THE
UDP, I THINK THE CURRENT MEMBER
IS SOMEWHERE NORTH OF 32,000
PEOPLE.
I THINK THE FRESH BUCKS PROGRAM
HAS 6000 ENROLLEES, BUT WE
BELIEVE THERE ARE MANY PEOPLE
WHO WOULD BE ELIGIBLE.
WE DO NOT, SO THE BOTTOM LINE
IS THAT WE THINK THERE IS WAY
MORE FOLKS WHO WOULD BE
POTENTIALLY ELIGIBLE FOR THE
CASH ASSISTANCE THAN WHAT WE
WILL BE ABLE TO FUND WITH THE
$200 MILLION.
AND SOME THOUGHT WOULD PROBABLY
WANT TO BE GIVEN TO HOW DO YOU
BEST PRIORITIZE CASH ASSISTANCE.
AND AGAIN, WE USE THE EMERGENCY
GROCERY VOUCHER PROGRAM AS JUST
ONE POTENTIAL MODEL, BUT HOW
YOU MIGHT TARGET THOSE
RESOURCES.
ONE OTHER MODEL WE COULD LOOK
AT THAT WOULD HAVE PEOPLE
APPLYING AND GOING THROUGH THE
PROCESS OF THERE BEING SOME
ASSESSMENT IS THE RENTAL
ASSISTANCE PROGRAM THAT UNITED
WAY STOOD UP WHEN THEY HAVE THE
ONLINE APPLICATION PROCESS
FOLLOWED UP WITH CONNECTION TO
COMMUNITY-BASED ORGANIZATIONS
THAT HELP TO DETERMINE WHAT THE
NEED IS AND THEN DECIDE
ALLOCATION BASED ON THE.
THAT IS ANOTHER POTENTIAL
MODEL.
THAT IS ONE OF THE THINGS THAT
NEED TO BE CONSIDERED IS YOU
WANT TO PRIORITIZE TO FOLKS
WITH THE GREATEST NEED VERSUS
JUST TO THE PROGRAM WE JUST
SENT OUT THE TOOK TICKETS TO
PEOPLE WHO WERE ON THE LIST WHO
HAD GOTTEN FRESH BUCKS FOR
EXAMPLE AND SOME OF THE
CHILDCARE PROGRAMS WITHOUT
KNOWING WHERE THOSE FOLKS
REALLY IN NEED OF THAT GROCERY
ASSISTANCE.
AGAIN, THE IDEA OF THE MONEY TO
GET THE ATTENTION WAS TO TRY TO
GET THE MONEY OUT QUICKLY, BUT
IT DID NOT DO THAT.
IS THIS WHERE THE GREATEST NEED
IS.
>> I WOULD ADD, I THINK LIKE
WITH THE UTILITY DISCOUNT
PROGRAM, AS AN EXAMPLE, TRACY
MENTIONED, I THINK HER
ENROLLMENT IS SOMEWHERE ABOVE IT
33,000, BUT ELIGIBILITY,
HOUSEHOLDS THAT ARE ELIGIBLE IS
CLOSE TO 100,000, SO THERE IS
NO DOUBT THE MAGNITUDE OF THE
NEED, AND THE NUMBER OF
HOUSEHOLDS WHO MIGHT NEED THIS
CASH ASSISTANCE IS GREATER THAN
THE RESOURCES AVAILABLE, AND SO
WORKING WITH THE SPONSORS, WE
WERE TRYING TO COME UP WITH A
PROPOSAL THAT TRIES TO BALANCE
GETTING THE MONEY OUT QUICKLY
WITH TRYING TO FIGURE OUT A WAY
TO IDENTIFY THOSE MOST IN NEED,
SO THAT IS WHAT IS CURRENTLY IN
THE BILL AS DRAFTED, BUT WE
WILL CONTINUE TO WORK WITH
SPONSORS AND ALL OF YOU TO SEE
AS WE ARE WATCHING THE
EXECUTIVE IMPLEMENT OTHER
PROGRAMS AND OTHER AGENCIES AND
THOSE SORTS OF THINGS TO
PROVIDE ASSISTANCE TO
COMMUNITIES, IF THERE IS A
BETTER WAY, I BELIEVE I DO NOT
WANT TO SPEAK FOR THE SPONSORS,
BUT MY UNDERSTANDING WAS TO TRY
TO GET IT OUT QUICKLY, BUT ALSO
GET IT TO THE PEOPLE IN NEED
AND THERE IS SOMEWHAT OF A RUB
IN TERMS OF STANDING UP A
REALLY GREAT PERFECT PROGRAM
THAT ALWAYS PRIORITIZED THOSE
MOST IN NEED AND THAT WILL TAKE
MORE TIME.
>> WE APPRECIATE THE INTENT IN
THAT DIRECTION.
AS YOU LOOK AT THE VARIOUS
MODELS FOR GETTING CASH
ASSISTANCE AT THE DOOR, I HATE
TO SPRING THIS ON YOU, BUT I
WILL FLAG EARLY FOR CENTRAL
STAFF, I WOULD LOVE FOR US TO
DO A BOOK ANALYSIS OF HOW
AUSTIN TEXAS ALLOCATED THE 50
MILLION THAT THEY APPROPRIATED
FROM THE RAINY DAY FUND.
I THINK IT IS VERY SIMILAR IN
INTENT, WANTING TO GET CASH
ASSISTANCE AT THE DOOR TO THE
LOWEST INCOME FAMILIES AND ALSO
RECOGNIZING THERE IS A NUMBER
OF FOLKS WHO ARE NOT IN
EXISTING ASSISTANCE PROGRAMS
AND HOW THEY GOT THOSE DOLLARS
OUT THROUGH VARIOUS NONPROFITS,
SO THAT WOULD BE HELPFUL TO US
AS WE GET MODELS FOR
ALLOCATING.
I WILL TURN IT OVER TO
COUNCILMEMBER MORELLA'S.
THEY HAVE COMMENTS.
AND THEN WE ARE GETTING CLOSER.
>> AND I RESPONDED TO THIS
QUESTION ABOUT CASH ASSISTANCE.
IS THAT RIGHT?
>> ABSOLUTELY.
>> SO I APPRECIATE YOUR HELP
ALLIE AND TRACY, HELPING US
FIGURE OUT THIS CASH ASSISTANCE
PIECE.
YOU ARE RIGHT, THE INTENT WAS
TO TRY TO GET ASSISTANCE OUT TO
AS MANY PEOPLE AS WE CAN AS
QUICKLY AS POSSIBLE, AND WE DID
LOOK THROUGH THOSE CRITERIA,
WHO IS ALREADY ELIGIBLE FOR
SOME OF THE ASSISTANCE PROGRAMS
THAT WE HAVE IN THE CITY,
WHETHER IT IS GROCERY OR THE
UTILITY TO PROGRAM.
AND AS MOSQUEDA MENTIONED, I
HAVE BEEN TALKING WITH SOME OF
THE COUNCILMEMBERS AT AUSTIN
WHO HAVE BEEN ABLE TO SUPPORT
WITH THEIR CASH ASSISTANCE, UP
TO 60, THEY ARE ESTIMATING
60,000 HOUSEHOLDS IN THE CITY,
SO I THINK THE POINT HERE IS
THAT WE KNOW THE NEED IS THERE,
WE KNOW THAT WE HAVE THE
BEGINNINGS OF THE
INFRASTRUCTURE TO BE ABLE TO
MANAGE THIS, AND WE REALLY, AS
A CITY NEED TO THINK ABOUT HOW
WE BUILD OUT THIS
INFRASTRUCTURE BECAUSE AS WE
HAVE ALL BEEN TALKING ABOUT
TODAY, THIS CRISIS IS NOT GOING
AWAY ANYTIME SOON, AND IF WE DO
NOT HAVE THE INFRASTRUCTURE IN
PLACE NOW TO BE NIMBLE AND
BEING ABLE TO PROVIDE SUPPORT
TO OUR NEIGHBORS, IT IS TIME
FOR US TO FIGURE OUT HOW WE DO
THAT, SO MY HOPE IS THAT AS WE
WORK THROUGH THE RIGHT
MECHANISMS FOR DOING THIS THAT
WE ARE ABLE TO PUT IN PLACE AND
BUILD ON EXISTING
INFRASTRUCTURE SO THAT WHEN WE
HAVE TO DO THIS AGAIN, WE ARE
READY TO GO.
>> THANK YOU.
JUST A FEW POINTS BEFORE MY
QUESTION.
ONE IS YOU MENTIONED AUSTIN.
I HAVE NOT LOOKED AT THAT, BUT
IF I AM REMEMBERING CORRECTLY
FROM WHAT YOU SAID, IT IS $15
MILLION OF SOME SORT OF LOW
INCOME ASSISTANCE OR FOOD
ASSISTANCE, EVERY DOLLAR IS
IMPORTANT, BUT I WANTED TO
POINT OUT FROM A MATH
STANDPOINT, AUSTIN IS A
COMPARABLE CITY TO SEATTLE.
SIMILAR SIZE IN TERMS OF
POPULATION.
I WOULD SAY 15 MILLION, AS I
SAID, EVERY DOLLAR COUNTS, IT
IS A DROP IN THE BUCKET OF WHAT
WE NEED, SO I WOULD REALLY URGE
US TO LOOK AT THE LEGISLATION
IN FRONT OF US IN LIGHT OF THE
MAGNITUDE OF THE NEED IN OUR
SOCIETY, AND THAT WE PASS A TAX
THAT RAISES REVENUES WITH THE
NEED THAT OUR COMMUNITY MEMBERS
ARE EXPERIENCING.
AS FOR WHAT SHOULD BE FUNDED, I
THINK THE DISCUSSION HAS COME UP
. IT IS IMPORTANT AND I WELCOME
THAT.
I WOULD ASK WHY WE WENT IN THIS
DIRECTION AND I WOULD ALSO SAY
WE ARE SPOILED FOR CHOICE IS
BECAUSE SO MUCH OF OUR CITY IS
UNDERFUNDED OR NOT FUNDED AT
ALL.
WE ARE IN DEEPER CRISIS BECAUSE
OF THE PANDEMIC.
THERE IS A LOT OF DIRECTIONS WE
COULD GO INTO.
THE REASON WE WENT IN THE CASH
ASSISTANCE DIRECTION IS THE
REASONS I QUOTED AN ECONOMIST
TALKING ABOUT HOW PROVIDING
CASH ASSISTANCE IMMEDIATELY
WILL HAVE AN IMMEDIATELY IMPACT
ON THE ECONOMIC QUESTION.
OBVIOUSLY, NOT PRETENDING.
THIS IS A MATH QUESTION, NOT
PRETENDING THIS WILL BE ENOUGH,
BUT WE NEED EVERY DOLLAR
POSSIBLE GOING INTO THE POCKETS
OF THE ORDINARY PEOPLE WHO ARE
PACING THE CRISIS AND WHO WILL
IMMEDIATELY, YOU KNOW, IF THAT
IS DONE IN A BIG ENOUGH WAY,
THEN THAT IS WHEN THE ECONOMY
WILL EXPERIENCE A REVIVAL.
ON THE OTHER POINTS THAT HAVE
COME UP, IMPORTANT QUESTIONS
ABOUT WHICH SECTION OF OUR
COMMUNITY IN TERMS OF INCOME
LEVEL IS MOST IN NEED. TRACY IS
CORRECT THAT THE MOST NEED IN
TERMS OF MAGNITUDE AND
PROPORTION OF THE POPULATION IS
EXPERIENCED IN THE LOWEST
INCOME CATEGORY, WHICH IS NOT
SURPRISING, THIS IS THE MOST
VULNERABLE SECTION OF OUR
SOCIETY, AND THE INTENTION OF
COURSE IS TO PRIORITIZE THE
SUPPORTIVE HOUSING UNITS.
AS YOU CAN SEE, THE NUMBER WE
ARE LOOKING AT IS AROUND 5600.
THE IDEA THAT THE OFFICE OF
HOUSING SHOULD PRIORITIZE THE
NEEDIEST SUPPORTIVE HOUSING,
THAT IS THE INTENT, BUT I WOULD
ALSO NOTE IN ADDITION TO THAT,
THAT WHEN YOU LOOK AT THE
HUNDRED PERSON INCOME SECTION,
WE ARE ALSO AT THIS MOMENT NOW,
WHEN YOU LOOK AT THAT INCOME
CATEGORY, WE ARE TALKING ABOUT
TEACHERS, FIREFIGHTERS, CITY OF
SEATTLE EMPLOYEES, MANY OF WHOM
CAN'T AFFORD TO LIVE HERE OR
OUR RENT BURDENS, PAYING CLOSE
TO 50% OF THEIR INCOME
INTEREST.
WE ALSO HAVE TO ADDRESS
HOMELESSNESS, SO I WANTED YOU
TO MAKE SURE WE DO NOT LOSE
SIGHT OF THAT, AND THEN I WILL
END WITH A COUPLE OF QUESTIONS,
HOPING THAT STAFF WILL DRAW OUT
SOME OF THE THINGS I HAVE
RESEARCHED AND I WANTED TO
AGAIN EXPRESS HOW GRATEFUL I AM
TO ALL THE WORK THAT WAS DONE,
BUT ONE QUESTION IS AS FAR AS
THE HOUSING, THE MAGNITUDE THEY
ARE TALKING ABOUT IS 5600 UNITS.
HOW MUCH WILL BE ABLE TO
ADDRESS THE PROBLEM OF
HOMELESSNESS?
DO WE HAVE SOME IDEA OF THAT,
AND ALSO IF STAFF COULD GIVE
ESTIMATES ON THE JOBS THAT
COULD BE CREATED, AND THEN THE
NUMBER OF HOMES THAT COULD BE
IMPROVED FOR THE GREEN NEW DEAL
DOLLARS, STUFF LIKE THAT, I
THINK THAT WILL BE HELPFUL TO
THE DISCUSSION AS WELL.
>> SORRY, I WAS ON MUTE.
SO IN TERMS OF THE PERMANENT
SUPPORTIVE HOUSING UNITS.
I DO NOT HAVE THOSE NUMBERS IN
FRONT OF ME.
I DON'T KNOW IF YOU DO IN TERMS
OF THE ESTIMATES OF THE
MAGNITUDE OF THE PROBLEM AND
WHAT THIS WILL ADDRESS, BUT
THAT IS A BIG LEAD TO FOLLOW-UP
ON.>> YOU HAVE GOT PEOPLE, WELL
OVER 10,000 PEOPLE WHO ARE
EITHER HOMELESS OR ON THE STREET
, OR IN SHELTERS, SO ALL OF
THOSE FOLKS ARE IN NEED OF
HOUSING TODAY.
WE ARE WAITING FOR THE LATEST
NUMBERS FOR THIS YEAR, BUT THAT
IS A BALLPARK OF WHAT WE KNOW IS
THE NEED FOR THE POPULATION.
I THINK ALLIE, ARE WE NOT
PROPOSING THAT ONLY ABOUT 1400
SUPPORTIVE HOUSING UNITS WILL BE
BUILT IN THE FIRST FIVE YEARS?
>> YES.
ABOUT $84 MILLION TO SUPPORT
THE ONGOING OPERATION AND
SERVICE COST FOR THOSE UNITS.
>> THAT GIVES YOU A SENSE FOR
THOSE SPECIFIC UNITS HOW MUCH
OF THE NEED THEY CAN MEET JUST
ONE LET ME KNOW IN TERMS OF THE
OLD NUMBERS.
THE LATEST NUMBERS WE HAVE AN
HOMELESS.
WE HAVE GOTTEN A QUESTION ABOUT
JOB CREATION, OR IN MANY CASES,
IT IS SUPPORTING JOBS THAT
ALREADY EXIST.
THAT IS THE CASE FOR THE
CONSTRUCTION INDUSTRY THAT WE
WILL NOT HAVE LOST JOBS, BUT WE
CAN GET THAT INFORMATION TO YOU
IN TERMS OF THE JOBS FOR THE
HOUSING PRODUCTION AS WELL AS
THE JOBS RELATED TO THE
DEVELOPMENT OF PERMANENT
SUPPORTIVE HOUSING UNITS.
>> IN TERMS OF YOUR OTHER
QUESTION RELATED TO THE GREEN
NEW DEAL, INVESTMENT, AS AN
EXAMPLE, IF ALL OF THE MONEY
WAS USED TO INVEST IN THE
CONVERSION FROM OIL OR GAS HEAT
TO AN OBJECT HEAT SOURCE, WE
ESTIMATED THIS INVESTMENT COULD
CONVERT SOMEWHERE BETWEEN 35
AND 40,000 HOMES TO ELECTRIC
HEAT, THAT WOULD BE ASSUMING
ABOUT 16,000 PER UNIT COST AND
NOT HAVING ANY OTHER SOURCES OF
FUNDS TO DO THOSE CONVERSIONS.
SO THAT IS ONE WAY TO CONSIDER
THE IMPACT OF THAT INVESTMENT.
>> THANK YOU FOR THOSE
QUESTIONS.
AND FOR THE QUICK MATH THAT YOU
SHARED WITH US, WE LOOK FORWARD
TO ANY ADDITIONAL DETAILS YOU
ARE ABLE TO SHARE WITH US
BEFORE NEXT WEDNESDAY.
THE PRESIDENT HAS LAST WORD. MY
REFERENCE TO AUSTIN WAS USING
THE MODEL IN WHICH THEY WERE
CONSIDERING CUTTING THE FUNDING
TO COMMUNITY ORGANIZATIONS, SO
THANK YOU FOR LOOKING AT THAT
MODEL, NOT NECESSARILY THE
DOLLAR FIGURE.
COUNSEL GONZALEZ, PLEASE GO
AHEAD .
>> THANK YOU.
I AM SORRY THAT QUESTIONS CAME
TO MY MIND AS THE CONVERSATION
PROGRESSED. ACTUALLY, IF COUNSEL
STAFF CAN GO BACK TO THE
SPENDING PACKAGE SLIDE.
THANK YOU.
THANK YOU SO MUCH.
MY QUESTIONS ARE GOING TO FOCUS
ON THE DOLLARS PROPOSED FOR
2020 EXPENDITURES AS A RESULT
OF THE COVID 19 CRISIS. I WANT
TO FOCUS ON THE EMERGENCY CASH
ASSISTANCE PROPOSAL FOR 2020
AND THE PROPOSED SPENDING PLAN
ON THIS COUNSEL BILL.
A COUPLE OF QUICK QUESTIONS.
ON PAGE 2 OF YOUR MEMO, IT GOES
THROUGH DIFFERENT TYPES OF
INCOME REQUIREMENTS THAT COULD
QUALIFY, OR COULD BE QUALIFYING
CRITERIA FOR THOSE WHO MIGHT
WANT TO RECEIVE CASH
ASSISTANCE.
ONE OF THE BULLET POINTS, THE
THIRD ONE SAYS EARLY CHILDHOOD
EDUCATION AND ASSISTANCE PROGRAM
. BASED ON MY WORK AS THE CHAIR
OF THE COUNCIL'S EDUCATION
COMMITTEE, WE DO NOT CURRENTLY
AT THE CITY PROVIDE E CAP, AND
THAT IS A STATE RUN PROGRAM, SO
HOW DO WE PURPORT TO OR WHAT
DOES THE LEGISLATION PROPOSED
IN TERMS OF BEING ABLE TO
VERIFY THAT INFORMATION?
IS THERE GOING TO BE A DATA
SHARING AGREEMENT?
WHAT IS THE PLAN?
>> THANKS FOR THE QUESTION.
SO IT WAS BUILDING UP OF THE
GROCERY PROGRAM.
SO WHAT IS INCLUDED IN THAT
LIST ARE CITY PROGRAMS OR
PROGRAMS THAT THE CITY WORKS
WITH THE STATE TO ADMINISTER.
SO WE HAVE THAT INFORMATION, SO
THE GROCERY STORE VOUCHER
PROGRAM WAS ABLE TO DISTRIBUTE
FUNDS TO FAMILIES ENROLLED IN E
CAP THAT ARE BELOW 350% OF THE
FEDERAL POVERTY LINE.
SINCE THEY WERE ABLE TO
IDENTIFY THOSE HOUSEHOLD THAT
DATA IS AVAILABLE.
THOSE WERE MEANT TO BE
EXAMPLES, NOT NECESSARILY WITH
THE CHOICES WOULD BE, BUT THE
CITY PLAYS A ROLE IN
ADMINISTERING THAT PROGRAM.
OUR UNDERSTANDING AS WE HAVE
ACCESS TO THAT DATA.>> OKAY.
CAN YOU CONFIRM TWO
>> YES.
>> THE NEXT QUESTION IS WITH
REGARD TO THE SEATTLE PRESCHOOL
PROGRAM AND PATHWAY TO SEATTLE
PRESCHOOL PROGRAM.
SO IS PP PROGRAMS ARE
SPECIFICALLY DESIGNED TO BE
MIXED INCOME CLASSROOMS AND A
MIXED INCOME PROGRAM.
SO THE LAST LINE TALKS ABOUT
HOW FAMILIES WHO QUALIFIED FOR
TUITION ASSISTANCE COULD ALSO
QUALIFY FOR THE DIRECT
EMERGENCY CASH ASSISTANCE IS
AVAILABLE UNDER THIS BILL.
SO MY RECOLLECTION OF HOW THAT
PROGRAM IS STRUCTURED IS THAT
EVERY SINGLE PERSON WHO
PARTICIPATES IN SPP RECEIVES
SOME LEVEL OF TUITION ASSISTANCE
. WHAT LANGUAGE IN THIS CURRENT
PROPOSAL TAKES INTO ACCOUNT
THAT THERE IS A MIXED INCOME
REALITY AS IT RELATES TO OUR
SPP PARTICIPANTS?
>> CURRENTLY THAT LEGISLATION
AS DRAFTED DOES NOT HAVE THAT
LEVEL OF DETAIL EITHER IN
IDENTIFYING SPECIFIC PROGRAMS
THAT THEY WILL USE TO
DISTRIBUTE THE FUNDS, OR
SETTING THOSE THRESHOLDS FOR THE
FIRST VOUCHER PROGRAM, THEY DID
IDENTIFY FAMILIES ENROLLED IN A
SEATTLE PRESCHOOL PROGRAM, AND
PROVIDED US GROCERY STORE
VOUCHER ASSISTANCE TO THOSE
ENROLLED ARE AT OR BELOW 350%
OF THE FEDERAL POVERTY LINE, SO
YOU COULD LEAVE IT AS DRAFTED,
WHICH PROVIDES FLEXIBILITY TO
THE EXECUTIVE TO DETERMINE
THAT, BUT IT IS IMPORTANT THAT
IT IS MAKING SOME THRESHOLD TO
BE A LOW INCOME FAMILY OR THE
BILL COULD BE AMENDED TO
PROVIDE MORE SPECIFIC DETAILS
TO ENSURE THAT HOUSEHOLD SERVED
BY THIS CASH ASSISTANCE DON'T
EXCEED X PERCENT OF THE FEDERAL
POVERTY LINE OR WHICHEVER
POLICY CHOICE YOU WANTED TO
INCLUDE.>> ALLIE OR TRACY, MY
UNDERSTANDING ON THESE VARIOUS
PROGRAMS IS THAT THEY ALL HAVE
SLIGHTLY DIFFERENT MI
THRESHOLDS.
>> EXACTLY.
>> HAVE YOU ALL DONE A
COMPREHENSIVE CHART ON THE
BEARING AT MI THRESHOLDS FOR
EACH OF THESE SUGGESTED
PROGRAMS?
>> NOT A COMPREHENSIVE CHART.
IN THE MEMO, WE INCLUDED
EXAMPLES OF A COUPLE OF THE
PROGRAMS, WE CAN LOOK TO PUT
TOGETHER A BROADER COMPARISON
SO YOU SORT OF UNDERSTAND THE
DIFFERENCES OR SIMILARITIES
THAT MIGHT HELP INFORM A
DECISION IF YOU WANTED TO BE
MORE PRECISE OR SPECIFIC ABOUT
HOUSEHOLD, SO WE CAN WORK ON
PUTTING SOMETHING TOGETHER.
>> I THINK THAT WOULD BE A
HELPFUL PIECE OF INFORMATION.
ON PAGE 3, IT TALKS ABOUT HOW
THESE FUNDS, PREFERRING TO THE
HUNDRED MILLION DOLLARS
PROPOSED TO BE DISTRIBUTED TO
THOSE IMPACTED BY THE CRISIS
THAT ARE NOT ENROLLED IN AN
EXISTING ASSISTANCE PROGRAM
ADMINISTERED BY THE CITY, THE
MEMO GOES ON TO SAY THESE FUNDS
WOULD BE PRIORITIZED FOR LOW
INCOME HOUSEHOLDS, INCLUDING
BUT NOT LIMITED TO THOSE, AND
THEN HE GOES THROUGH A LIST, SO
THERE ARE BULLET POINTS THAT I
WANT MORE INFORMATION ABOUT.
THE FIRST IS IMMIGRANTS AND
REFUGEES AND THE SECOND IS AT
RISK OF DEPORTATION. I AM NOT
SURE IF THAT WAS INTENTIONAL TO
BUT THOSE INTO DIFFERENT BULLET
POINTS.
>> I DON'T THINK SO.
>> YES.
>> SO HERE IS MY QUESTION AS IT
RELATES TO IMMIGRANTS AND
REFUGEES THAT MAY BE AT RISK OF
DEPORTATION.
SO WHAT LANGUAGE IN THE
ORDINANCE ACCOUNT FOR OUR
POLICIES AT THE CITY ABOUT NOT
INQUIRING ABOUT AN INDIVIDUAL'S
IMMIGRATION STATUS, AND WHAT IN
THE ORDINANCE TALKS ABOUT
PRIVACY PROTECTIONS AND
CONCERNS AS IT RELATES TO
OBTAINING THE HIGHLY SENSITIVE
CONFIDENTIAL INFORMATION ABOUT
AN INDIVIDUAL IMMIGRATION
STATUS IN ORDER TO QUALIFY FOR
THIS TYPE OF CASH ASSISTANCE.
>> CURRENTLY THE LEGISLATION
DOES NOT CONTAIN THAT LANGUAGE.
THE LIST OF PRIORITY POPULATION
THAT COULD BE SERVED IS BASED
ON INPUT FROM THE BILL SPONSORS
. AT THE TIME OF DRAFTING, IT
WAS IN THE EARLY STAGES OF THE
PROGRAM, AND SO WE WERE
LOOKING, THEY HAD A FIRST-ROUND
USING EXISTING PROGRAMS AND A
SECOND ROUND THEY WERE
DEVELOPING, WHICH IS STILL A
WORK IN PROGRESS, BUT THEIR
PROCESS FOR WORKING WITH A
VARIETY OF COMMUNITIES WHO
MIGHT BE IN NEED IS WORKING
WITH COMMUNITY-BASED
ORGANIZATIONS, SO THIS LANGUAGE
COULD BE ADDED TO BE MORE
PRECISE.
THE INTENT WAS NOT TO, I
BELIEVE ANYWAY WAS NOT TO MAKE
PEOPLE DISCLOSE THEIR STATUS OR
IN ANY WAY, BUT TO WORK WITH
ORGANIZATIONS THAT TYPICALLY
SERVE THOSE POPULATIONS AND CAN
PROVIDE THAT CASH ASSISTANCE.
THE IDEA IS THAT THERE ARE
LIKELY PEOPLE WHO FOR A VARIETY
OF REASONS DO NOT ACCESS STATE
OR CITY ASSISTANCE PROGRAMS.
THEY ARE NOT COMFORTABLE OR
ELIGIBLE TO APPLY, SO JUST TRY
TO FLAG THE IDEA IS TO TRY TO
REACH PEOPLE WHO ARE NOT
ALREADY RECEIVING ASSISTANCE
THROUGH THE CITY, BUT WE CAN
WORK WITH YOU TO IDENTIFY WAYS
TO INCORPORATE LANGUAGE TO
ENSURE THOSE PRIVACY CONCERNS
AND THE LEGISLATION IS
CONSISTENT WITH CITY POLICY
ABOUT NOT INQUIRING.
>> CAN I QUICKLY RESPOND TO THE
QUESTION?
THANK YOU.
THANK YOU GONZALEZ FOR THAT
IMPORTANT QUESTION, AND I
WANTED TO ECHO WHAT ALLIE
DESCRIBED IN TERMS OF OUR
INTENT IS ACCURATE.
THE INTENT IS NOT IN ANY WAY TO
OPEN THE DOOR TO ANY KIND OF
VULNERABILITY TO AN ALREADY
HONORABLE SECTION OF OUR
COMMUNITY MEMBERS, BUT TO WORK
WITH YOU AND THE CHAIRMAN AND
OTHER COUNCILMEMBERS TO COME UP
WITH THE MOST SPECIFIC
LANGUAGE, SO I AM HAPPY YOU
BROUGHT THIS UP. I AM HAPPY TO
DISCUSS WITH YOU AND OTHER
COUNCILMEMBERS HOW TO MAKE SURE
THAT THIS IS IMPLEMENTED, AND
JUST SPECIFICALLY IN TERMS OF
WHAT ALLIE SAID, USING THE
HEALTH OF A COMMUNITY-BASED
ORGANIZATION THAT WILL ENSURE
CASH ASSISTANCE WILL REACH
THESE COMMUNITY MEMBERS BECAUSE
THEY ALSO ARE THE ONES MOST IN
NEED, BUT ALSO IN A WAY THAT
KEEPS THEM SAFE.
>> THANK YOU.
DO YOU HAVE ADDITIONAL
QUESTIONS?
>> I DO, SORRY.
SO I ALSO AM A LITTLE CONFUSED
BY WHAT IS BEING PROPOSED BEING
SPENT IN 2020 AND WHAT IS BEING
PROPOSED TO BE SPENT IN THE OUT
YEARS.
SO IN TERMS OF THE CASH
ASSISTANCE, IS THE PROPOSED
20/20 EXPENDITURE $100 MILLION?
>> IT IS A 200 MILLION
APPROPRIATION.
THE HOPE IS IT WOULD GO OUT IN
2020.>> THAT IS WHAT THIS CHART
SAYS.
THIS CHART SAYS 2021 AND 205.
SO THAT IS AN ADDITIONAL 205
MILLION.
THE SPENDING PLAN IS AND ACTUAL
SPENDING OF THE TAX REVENUE.
SO IN 2020, THE TAX GOES INTO
EFFECT IN 2020 AND RIGHT NOW IT
IS PROPOSED TO GO INTO EFFECT
JUNE 1. THOSE PAYMENTS WOULD
NOT ACTUALLY BE REMITTED UNTIL
FEBRUARY 2022.
THAT GETS ACCRUED BACK TO THE
2021 FOLKS, SO ESSENTIALLY YOU
CAN'T SPEND, THERE WILL NOT BE
ANY TAX REVENUE COLLECTED TO BE
SPENT IN 2020, SO THAT CASH
ASSISTANCE WOULD BE ABLE TO GO
OUT THE DOOR IN 2020 THROUGH
THE INTERFUND LOAN, THAT IS ONE
OF THE THREE PIECES OF
LEGISLATION THAT ARE PART OF
THE PACKAGE.
THE SPENDING OF THE ACTUAL TAX
REVENUE WOULD BE PAYING BACK
THAT LOAN, SO WE WERE BORROWING
AND 20/20 IN ORDER TO GET THE
MONEY OUT THE DOOR, AND THEN WE
WILL PAY IT BACK WHEN WE START
COLLECT THING, WHEN WE ACTUALLY
START RECEIVING PAYMENTS, AND
TOM A BE ABLE TO EXPLAIN THE
MORE PRECISELY OR ELOQUENTLY,
BUT IN GENERAL, THE WAY THAT
TAX COLLECTIONS WORK IT IS LIKE
OUR DNO TAXES, THE FINAL
QUARTER TAX PAYMENT FOR A YEAR
IS ACTUALLY PAID A COUPLE
MONTHS AFTER THE END OF THE
YEAR, SO FOR THE FOURTH QUARTER
OF 2020, THAT PAYMENT DOES NOT
COME IN THE DOOR UNTIL JANUARY
OR FEBRUARY OF THE NEXT YEAR,
BUT IT GETS ACCRUED BACK, SO IT
IS PART OF THE 2021 BUDGET AND
CLOSING OF THE BOOKS.
>> OKAY.
THAT IS HELPFUL.
THANK YOU FOR CLARIFYING.
I THINK THIS CHART IS A LITTLE
CONFUSING BECAUSE IT IS TRYING
TO SHOW TWO THINGS.
ONE, IT IS TRYING TO SHOW
EXPENDITURES AND TWO, HOW WE
BOOK THE DOLLARS, TO USE AN
ACCOUNTING TERM.
I AM NOT SURE IT IS APPROPRIATE
TO COMPLETE THOSE THINGS ON ONE
CHART, SO I THINK JUST FOR THE
INTEREST OF PUBLIC
TRANSPARENCY, AND SO THAT IT IS
EASIER FOR US AS COUNCILMEMBERS
TO FOLLOW ALONG AND HAVE A
CONVERSATION, I THINK IT WOULD
BE HELPFUL TO MAKE SURE THAT
THIS CHART IS RETOOLED IN A WAY
THAT SHOWS ACTUAL PROPOSED
EXPENDITURES FOR EACH OF THE
YEARS THAT THE TAX WOULD BE IN
PLACE, AND I RECOGNIZE YOU ALL
ARE OPERATING UNDER A 5 TO 6
YEAR PLAN HERE, IT LOOKS LIKE.
SO THIS CHART DOES NOT HAVE
ANYTHING FOR 2020, WHICH IS
MILLS TO THE PUBLIC AND TO US
THAT THERE ARE NO EXPENDITURES
IN 2020, BUT THERE ARE SOME
PROPOSED EXPENDITURES FOR 2020,
SO SETTING ASIDE THE ISSUE OF
HOW WE MOVE THESE BUCKETS OF
MONEY AROUND, WHAT IS THE
PROPOSED AMOUNT OF PROGRAMMATIC
ACTIVITY THAT IS BEING PROPOSED
TO BE FUNDED IN 2020 SHOULD
THIS TAX REVENUE PACKAGE BE
PASSED AND SIGNED BY THE MAYOR.
SO IF YOU ALL COULD SORT OF
WORK ON SOMETHING LIKE THAT,
THAT WOULD BE SUPER HELPFUL TO
ME.
AGAIN, FOR 2020,
>> SHOWING HOW TO SHOW THE
INTEREST PAYMENT THAT WOULD BE
PAID IN 2020.
, 2021, WE WILL WORK ON
CLARIFYING THAT.
THIS TAX IF PAST IS PROPOSED TO
UNDER EFFECT IN JUNE 1 OF 2020.
HOW SOON AFTER JUNE 1 OF 2020
CAN HOUSEHOLDS ANTICIPATE
RECEIVING A CASH ASSISTANCE
PAYMENT?>> I THINK THAT WILL BE
DEPENDENT ON HOW QUICKLY WE CAN
WORK WITH THE EXECUTIVE TO WORK
WITH A WAY TO DISTRIBUTE THE
CASH.
>> THAT WORK IS NOT YET BEEN
DONE?
>> NO.
>> I WANT TO REALLY ECHO THE
CHAIRMAN'S COMMENT ABOUT
LOOKING CLOSER AT THE AUSTIN
MODEL.
I THINK IT SMARTLY LOOKS AT A
MODEL THAT TALKS ABOUT THIS IN
WHAT IS THE URGENT NEED NOW.
IN THEIR MODEL, THEY TALK ABOUT
HOW 50% OF THE $50 MILLION WILL
GO TO IMPROVING FOOD ACCESS,
PROVIDING RENTAL OR MORTGAGE
ASSISTANCE ASSISTANCE OF
MEDICAL EXPENSES, PURCHASE OF
DIAPERS, BABY FORMULA, OTHER
CHILDCARE ASSISTANCE, DOMESTIC
VIOLENCE AND CASE MANAGEMENT
AND OTHER DIRECTOR LEASE THAT
HELP PEOPLE AND FAMILIES
MEETING BASIC NEEDS INCLUDING
HYGIENE AND OTHER HARDSHIPS.
THEY HAVE CREATED AN OPPORTUNITY
FOR THE REST OF THE DOLLARS TO
BE AVAILABLE FOR CASH ASSISTANCE
TO THOSE PARTICULAR FAMILIES
THAT MEET CERTAIN CRITERIA
INCLUDING FAMILIES THAT HAVE AN
INCOME AT OR BELOW 200% OF THE
FEDERAL POVERTY INCOME.
HOUSEHOLDS THAT HAVE
EXPERIENCED A HARDSHIP RELATED
TO COVID-19 AND THAT ALSO
INCLUDED A CATCHALL CATEGORY
FOR FOLKS WHO WOULD BE
INELIGIBLE FOR OTHER FORMS OF
SIGNIFICANT GOVERNMENT RELIEF
SUCH AS THE CARE COP. I THINK
WHAT THINGS SEEMS TO BE
MOTIVATING THE MODEL IS THAT WE
ARE ABLE TO PROVIDE SAFELY CASH
ASSISTANT AND OTHER RELIEF TO
FOLKS WHO HAVE A SENSITIVE
IMMIGRATION STATUS OR ARE
UNCOMFORTABLE DISCLOSING THEIR
PRIVATE, PERSONAL INFORMATION
AND SECONDLY REALLY MAKE SURE
WHATEVER THE SPENDING PLAN IS,
WE ARE USING THE LIMITED DOLLARS
THAT IT IT IS BEING
COMPLEMENTARY IN EXTENDING THE
LIFE OF WHAT OTHER BENEFITS
MIGHT BE GETTING ACCESSED BY
INDIVIDUALS.
I'M NOT SURE THIS SPENDING PLAN
AS PROPOSED CURRENTLY
ACCOMPLISHES THAT.
>> THANK YOU COUNCIL PRESIDENT.
>> I JUST WANT TO ADD A POINT,
I THINK IT'S IMPORTANT.
>> THAT WE ARE GOING TO WRAP
UP.
BE BRIEF PLEASE.
>> I AM VERY OPEN TO TALKING TO
CITY COUNCILMEMBERS ON SPECIFIC
THINGS THAT THEY WOULD LIKE TO
SEE FUNDED, I AM ALL FOR THE
SPECIFICS ABOUT HOW THIS MONEY
GOES TO HOUSEHOLDS AND MORTGAGE
FUNDS.
I DO WANT TO RACE, THE REASON
LOOKING AT THE AUSTIN PROGRAM,
I DID NOT KNOW ABOUT IT.
I LOOK AT OFF-LINE AS WELL.
THE REASON IT HAS BEEN FUNDED
THIS WAY AND STRUCTURED THIS
WAY TO AUGMENT EXISTING
PROGRAMS IS BECAUSE IT IS SO
SMALL.
IS A $15 MILLION PROGRAM.
IS DOING THE BARE MINIMUM.
I AM ALL FOR THAT BUT THE WORD
SMART WAS USED AND I DON'T
THINK IT'S SMART TO LIMIT
OURSELVES TO THAT.
WE WILL NEED TO DO SOMETHING ON
THE SCALE OF WHAT WE ARE
TALKING ABOUT, $500 MILLION.
IF WE WANTED TO HAVE A MORE
DETAILED STRUCTURE AS BEING
DISCUSSED I AM ALL FOR THAT.
I WANTED TO MAKE THE POINT THAT
THE SMART THING TO DO IS TO USE
A BARE MINIMUM REVENUE RAISING
MECHANISM.
>> THANK YOU COUNCIL MEMBER
SAWANT.
I WANT TO REITERATE THE POINT I
MADE EARLIER.
I THINK IT'S THE POINT MADE
EARLIER.
WE ARE TALKING ABOUT LOOKING AT
THE MODEL, IT'S ABOUT THE MODEL
GETTING TO FIND OUT.
IT'S NOT ABOUT THE DOLLAR
AMOUNT.
IT IS IMPORTANT THAT WE BUILD
OFF OF THE PROPOSAL THAT HAS
BEEN PROVIDED HERE AND PULL IN
WHERE POSSIBLE, SCENARIOS SO
THAT WE ARE NOT UNINTENTIONALLY
EXCLUDING CERTAIN POPULATIONS
ARE AS YOU TALKED ABOUT, AND
INTENTIONALLY PUTTING THOSE WHO
AT EXTREME RISK BECAUSE OF
THEIR STATUS ENDANGER.
WE ARE ALL ON THE SAME PAGE,
WE'RE JUST TRYING TO LOOK AT
VARIOUS MODELS TO GET FUNDING
OUT.
TRACY AND ALLIE, AS A LOOK AT
ITEM, PAGE NUMBER FOUR.
I WANT TO UNDERSCORE THE
COUNCIL PRESIDENT'S REQUEST
THAT THAT CONCEPT ALSO GET
FOLDED INTO THE CHART YOU
PROVIDED ON SLIDE FIVE.
I SAW YOU NOT ALONG AND I THINK
YOU ARE ALREADY THINKING OF
STRATEGIES TO HIGHLIGHT THAT.
THIS HAS BEEN A HELPFUL
CONVERSATION.
WE HAVE GONE A FULL THREE HOURS
BECAUSE HE STARTED ABOUT FIVE
MINUTES LATE.
I AM VERY APPRECIATIVE OF THE
SPONSORS FOR WALKING THROUGH
THE INTENT OF THE LEGISLATION
AT THE BEGINNING OF THE
MEETING, THE PUBLIC COMMENT
MADE AVAILABLE BY I.T.
AND COMEDIC ASIAN STAFF AND
CENTRAL STAFF IN THE CLERK'S
OFFICE, IT'S BEEN VERY HELPFUL
FOR UNDERSTANDING HOW WE ARE
JUXTAPOSING THE POTENTIAL
THREAT TO OUR EXISTING REVENUE
STREAM WITH WHAT WE IDEALLY
WOULD LIKE TO SEE SHORT UP FOR
WORKING FAMILIES.
I WANT TO THANK ALL OF YOU FOR
YOUR ROBUST PARTICIPATION, AS I
NOTED BEFORE WE WILL HAVE
PUBLIC TESTIMONY, WILL HAVE A
SMALL COMMUNITY PANEL AND WE
WILL HAVE AN OPPORTUNITY FOR A
ONE-HOUR DISCUSSION ON EACH OF
THE BILLS AS HAS BEEN NOTED
EARLIER.
THAT WOULD BE THE INTERFUND
LOAN AGREEMENT AND THE PROPOSAL
FOR GENERATING REVENUE.
WITH THAT, THANK YOU FOR YOUR
ROBUST ENGAGEMENT.
WE HAVE REACHED THE END OF OUR
AGENDA FOR OUR NEXT MEETING IS
WEDNESDAY, APRIL 29 AT 10 AM.
IF THERE ARE NO FURTHER
QUESTIONS?
WE ARE ADJOURNED.
THANK YOU AGAIN FOR EVERYBODY
FOR YOUR ROBUST PARTICIPATION,
HOW ME TIMES OF I SAID THAT?
THANK YOU.