The capital gains tax, passed in 2021, added a 7 percent charge on profits of more than $250,000 from selling or exchanging assets like stocks, bonds, business interests, and more
Logan Washburn
The Center Square Washington
The state of Washington collected nearly $600 million more in capital gains tax than expected for its schools.
When legislators passed the state budget for 2023 to 2025, they planned to collect $248 million from the new capital gains tax, according to The Seattle Times. But by May 9, the state had collected $601 million more than expected, totaling $849 million.
“I don’t know why the state underestimated the revenue from this tax by so much,” said Liv Finne, director of the Center for Education at the Washington Policy Center. “Experience shows lawmakers often minimize the burden of any proposed tax.”
The capital gains tax, passed in 2021, added a 7% charge on profits of more than $250,000 from selling or exchanging assets like stocks, bonds, business interests, and more. The state Supreme Court ruled the tax constitutional in March.
The first $500 million collected from the tax will go to the state’s Education Legacy Trust Account, according to The Seattle Times. Funds beyond that will go to one-time school construction projects.
“We have very ambitious plans for our capital budget,” said Katy Payne, director of communications for the state Office of Superintendent of Public Instruction. “Additional capital gains revenue will make a big difference for our schools, particularly for districts in rural communities who face the biggest challenges in raising funds for school construction.”
In the 2017-18 school year, state data shows Washington public schools contained more than 192,000 staff and spent more than $13,000 per student for a year’s enrollment. In the 2022-23 school year, however, the state’s public schools contained more than 203,000 total staff, and spent more than $19,000 per student for a year’s enrollment.
More than 60 of the state’s superintendents made more than $250,000 in the 2021-22 school year, the highest-paid of which made more than $559,000.
“There are no accountability measures in state law which define whether schools are ‘fully funded,’” said Finne, who published some of these numbers with the WPC.
Since Washington had increased its education funding by June 2018, the state Supreme Court ruled in McCleary, et. al. v. The State of Washington that the state complied with an order to provide a “statutory program of basic education.”
This report was first published by The Center Square Washington.
Also read:
- Camas, Union senior stars ready for playoff push in their final high school basketball seasons
Ethan Harris and Brooklynn Haywood lead Camas and Union into the Class 4A bi-district playoffs with state tournament berths on the line. - Letter: ‘Are we being punked?’
Anna Miller questions the Clark County Council’s authority to pass a resolution on ICE and urges members to focus on core county responsibilities. - U.S. Ed Dept. investigates Puyallup wrestler’s sexual assault allegation by trans athlete
The U.S. Department of Education is investigating the Puyallup School District over its handling of a sexual assault allegation involving wrestler Kallie Keeler. - Letter: ‘People who have entered illegally must face the consequences of their actions’
Vancouver resident Debra Kalz argues the County Council should not pass immigration-related resolutions and says laws must be followed or changed through proper channels. - The Enspire Extravaganza: Advancing art and community engagement for a brighter future
Enspire Arts brings more than 150 local artists to the Joyce Garver Theater in Camas on Feb. 28, featuring student ambassadors and a world premiere by composer Nicole Buetti. - Opinion: IBR’s systematic disinformation campaign, its demise
Neighbors for a Better Crossing challenges IBR’s seismic claims and promotes a reuse-and-tunnel alternative they say would save billions at the I-5 crossing. - Letter: ‘Our forefathers warned us to assemble when government rules over We The People’
La Center resident Kimberlee Goheen Elbon criticizes the County Council’s handling of immigration-related meetings and urges residents to assemble and speak out.
wpDiscuz
