Washington State PTA Opposes Initiative 2109

Washington State PTA, founded in 1905, is the oldest and largest volunteer child advocacy association in the state with a longstanding history of support for the health, safety, well-being, and education of children and youth. Washington State PTA has been advocating to amply fund public education since at least 1982.

Washinton State PTA opposes Initiative 2109, which would repeal the capital gains tax – a critical and significant source of revenue for education and school construction.

According to the Washington State Constitution, it is our state’s paramount duty to amply fund public education (1). In 2021 the Washington State Legislature approved a tax on capital gains from the sale of stocks, bonds, and other capital assets when the profit is over $250,000, excluding retirement accounts and primary residences, with the revenues from that tax going directly to support public education (2). The first $500 million collected each year, adjusted annually for inflation, must be deposited into the Education Legacy Trust Account, which can be used only to support public schools, early learning and childcare programs, and to expand access to public higher education. Any amounts collected above $500 million must be deposited in the Common School Construction Account (3) which has funded skill centers and increased the state share of school construction projects. The capital gains tax has been in place since January 1, 2022, and was upheld by the Washington State Supreme Court. In 2023, according to the Washington State Department of Revenue, the tax only affected 3,895 taxpayers (0.2% of all households), but raised $895 million in revenues, all of which benefit families with students in the continuum of public education, from early learning through higher education (4).

Over the last two legislative sessions, the Legislature has allocated money from the Education Legacy Trust Account (5) and the Common School Construction Account (6) to many education needs, including:

The early childhood education and assistance program, including funds for increasing the number of preschool slots, and for early childhood intervention and prevention services;
Closing the gap in funding for Special Education services;
Supporting access to Community and Technical Colleges and state universities, including funds for the College Bound Scholarship program;
Building, maintenance, and modernization of Skills Centers across the state;
Improving indoor air quality and energy efficiency;
Funding small rural district building needs through the Small District Modernization and Tribal Compact Grant program; and
Increasing the square foot allowance for the School Construction Assistance Program.

The money raised through the capital gains tax represents a significant portion of the funds allocated for these projects. Eliminating the capital gains tax, as proposed by Initiative 2109 (7), would necessitate cuts to many of the critical programs listed above, affecting almost every school district and student in the state.

Washington State PTA, through its member-adopted legislative platform, has consistently advocated for predictable, progressive, and sustainable revenue sources for funding public education and for programs that benefit children and youth (8). We oppose budget policies, deficit reduction efforts, and other legislative proposals that negatively impact funding for child-related programs (9). Because I-2109 would result in budget cuts that negatively affect children and families in Washington State, Washington State PTA:

Opposes Initiative 2109;
Joins the “No on I-2109″ coalition;
Encourages all local PTAs and Councils to oppose Initiative 2109, and educate their members;
And encourages all of our 83,000+ members to vote NO on Initiative 2109.

For additional information, see FAQs on Opposing Initiatives 2109 and 2117.

References:

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