Ed Orcutt — Representative Orcutt is referenced twice for having previously mentioned JLARC’s drafting guide, and then he speaks to clarify his broader point about tax incentives: they are not always intended to increase participation or activity, but sometimes are designed to prevent a decline.
Dr. Reich — Welcomed to present the Economic Revenue and Forecast Council update.
Dave Wright — Identified himself as the executive director of the ERFC and began the forecast presentation.
Janice Zahn — Representative Janice Zahn introduced herself as the new committee member from the 41st Legislative District, representing Bellevue, Mercer Island, Sammamish, Newcastle, and Beaux Arts Village, and said she is excited to join the Finance Committee from Capital Budget. The introduction was briefly reiterated and acknowledged.
Janice Zahn — Representative Zahn is referenced as the source of an earlier question that prompted follow-up discussion, including comments about retail sales tax sensitivity and the impact on high-income earners.
Alex Ramel — Asked whether tax savings from the Tacoma LNG facility are passed on to consumers through the Utilities Transportation Commission.
Cyndy Jacobsen — Representative Jacobsen asked whether the original law or preference had an objective, noting that it dates to 1975 and was amended in 2019 with language about helping smaller beneficiaries. Representative Zahn then continued the discussion by asking whether data exists on beneficiary group sizes over time, whether larger beneficiaries have recovered to pre-COVID levels while smaller beneficiaries remain in decline, and what performance metrics should be used to evaluate the program, referencing the 2020 COVID period as a key turning point.
Cyndy Jacobsen — Asked for clarification about what revenue is used in the percentage-of-revenue metric.
Cyndy Jacobsen — Representative Zahn is called on for questions and immediately asks whether the $100,000 threshold is comparable to other states, raising the issue of whether it should be adjusted for inflation or cost escalation.
Sharon Santos — Representative Santos questioned whether the number of large beneficiaries had increased and asked to revisit the slide, then continued the same line of inquiry by referencing the trend in beneficiary counts and the decline in small beneficiaries. He followed up by challenging the witness’s statement about inferring legislative intent, asking whether the need to infer meant the legislature had not explicitly stated its intent, and noting that the legislature was aware of preferences in 2019.
Sharon Santos — Noted a bill on the intro sheet and asked for clarification about what a multipurpose senior activity center is.
Sharon Santos — Representative Santos is called on and begins expressing concern about the report.
Sharon Santos — Representative Santos questions whether there is a clear cause-and-effect relationship between the policy or tax preference and increased convention center attendance, and asks how the performance metrics will be evaluated to ensure they align with the policy objective.
Sharon Santos — Referenced as the source of related questions about modeling income growth and budget sensitivity.
Joshua Penner — Representative Penner is introduced as having a question and being next to speak, then follows up by asking about cohort tracking and whether it can show small beneficiaries becoming large beneficiaries over time.
Ed Orcutt — Representative Orcutt was discussed in connection with JLARC work on performance metrics and the lack of legislative intent and direction. The discussion continued with a note that JLARC guidance has been shared with staff to inform bill drafting.