OLYMPIA – A bill that would increase funding for economic development projects and keep the decision making local was introduced last week by Sen. Jim Hargrove, D-Hoquiam.
“This would allow us to spread these kinds of projects out and, most important, let the locals decide if they’ll get the most bang for their buck in pursuing them,” Hargrove said.
Hargrove, along with Reps. Lynn Kessler, D-Hoquiam, and Kevin Van De Wege, D-Sequim, represents the 24th District, which covers Clallam and Jefferson counties and one third of Grays Harbor County.
Senate Bill 5557, would increase the sales tax credit for the state’s 32 rural counties by 0.06 percent, from 0.08 percent to 1.4 percent.
The tax is credited against the state’s 6.5 percent sales tax, so the tax rate won’t increase.
SB 5557 received a first reading on Wednesday and was referred to the Senate Economic Development, Trade and Management Committee.
“This is less than one half a percent of what we are spending on school construction.
“If there’s no jobs for those students when they graduate, then what are we training them for?” Hargrove said.
The bill is worded so that it will be local decisions on how to spend the money on economic development, whether it is water lines or a new building. or a stadium.
“I can’t support a bill saying, ‘Here’s money for the Sonics,’ but I can support a bill that allows that to be a local decision,” Hargrove said.
What about the eternal debate over whether building public restrooms constitutes “economic development”?
Hargrove said the bill contains “fairly flexible definitions” regarding what projects would be eligible.
Some concerns were raised about the money being used for some retail projects but he hates to predispose definitions because each community’s economic situation is different, he said.
The bill is an extension of an economic development program begun by Hargrove.
In 1997, the Legislature passed Senate Bill 5740, sponsored by Hargrove, that allowed “distressed” counties to impose a 0.04 percent sales tax on all retail sales in the county to finance public facilities.
In 1998, House Bill 2260 doubled that to 0.08 percent and replaced the term “distressed” with “rural.”
Then in 2004, Senate Bill 6113 clarified that the funds must be used for economic development purposes, which facilitate the creation or retention of businesses and jobs.
Hargrove also submitted Senate Bill 5563 last week, which is known as “the Marty Smith bill.”
SB 5563 would allow a mental health case worker conducting a home visit where there’s a history of violence to request a second case worker to come along.
“It seemed perfectly reasonable,” Hargrove said.
The bill is scheduled for a public hearing Friday before the Senate Human Services and Corrections Committee.
The bill is named for the late Marty Smith of Bremerton. He was stabbed to death by a mental health patient off his medications in November 2005 while on a home visit.
