Washington Legislative Week in Review
May 31, 2011
May 31, 2011
The Washington State Legislature adjourned its special session sine die on Wednesday, March 25, at 10:26 p.m. House Bill 1087, the $32.2 billion state operating budget, passed the Senate 34-13 after the House approved it on a sharply partisan 54-42 vote.
Bank First Mortgage Income Tax Exemption
Before adjourning, the House also considered HB 2078, which would have eliminated the B&O tax deduction on interest earned on first mortgages and deeds of trust on residential properties for financial institutions that operate in more than 10 states. The estimated $100 million it would have generated would have been transferred to the Education Legacy Trust Account for K-3 class size reductions. After much floor debate—some of which was focused on the two-thirds majority needed for passage—the bill failed 52-42.
DFI Funds Sweep
As expected, the budget swept $9 million from the Financial Services Regulation Account. Two million dollars of the fund transfer took place in 2010 and an additional $7 million is slated for the 2011-13 budget. These funds have largely represented DFI income from lawsuits, not operating funds from the Division of Credit Unions.
Posted in Advocacy News.