City Approves More One-Time Spending on Homelessness as Budget Cuts Loom

This story originally appeared on Seattle magazine’s website.

The Seattle City Council’s repeal of a controversial business “head tax” last week didn’t just eliminate future spending on solutions to the city’s homelessness crisis—it also killed funding for several ongoing programs that are currently being funded with one-time revenues, casting the future of existing homeless programs in doubt at a time when Mayor Jenny Durkan is asking for significant budget cuts in every city department.

Meanwhile, city funding for new housing projects, for which housing agencies compete through an annual process called a Notice of Funding Availability (NOFA), is shrinking this year from more than $100 million to $40 million, enough to fund only a handful of proposals submitted by housing providers this year. (That $40 million could end up being slightly higher if more money comes in from developer payments into the city’s incentive zoning fund, and if a transit-oriented development planned for Northgate, which accounts for $10 million, does not move forward, making that money available for bids.)

Council members, advocates, and homeless people themselves have repeatedly identified a lack of affordable housing as a key bottleneck that keeps people from moving off the streets or out of the shelter system; in a recent survey of 898 people experiencing homelessness in King County, 98 percent said they would move into safe and affordable housing if it was available.

The head tax, a $275-per-employee tax on businesses with more than $20 million in gross revenues, would have provided about $47.5 million in annual revenue for the city to spend on housing and services for people experiencing homelessness.

Although proponents pitched the head tax as a funding source for new programs, much of the money would have backfilled spending on existing projects, including the mayor’s new “bridge housing” initiative, which the city council approved on Monday. Without the head tax, the mayor and council will have to come up with tens of millions of dollars in cuts (or borrow the money from the city’s dwindling reserves) to keep those programs going.

The bridge housing program, which will pay for about 500 new and existing shelter beds and “tiny houses,” will be funded this year with $7.2 million in one-time funds from the sale of a piece of city-owned property in South Lake Union.

Ben Noble, director of the City Budget Office told the council last Wednesday, the city will need to come up with about $9.5 million a year to maintain the bridge housing program in 2019.

In addition to the 500 shelter beds, Durkan and the council will have to come up with funding this year for about $8 million in programs that the council only funded through the end of 2018, on the belief that by the time they began budget deliberations this year, a head tax or some other progressive revenue source would be available to pay for those programs in future years. And they will have to do so at a time when Mayor Durkan has asked for budget cuts of 2 to 5 percent from every city department in response to tepid revenue projections.

“Unless things change radically, I wouldn’t expect a major infusion of revenue,” Noble told council members last week. Noble said that if the city wants to continue funding Durkan’s bridge housing plan and all the other services that are currently being paid for with one-time funding, “it will be because they are prioritized above other things, and at the moment, above existing city services.”

On Monday, council member Teresa Mosqueda—one of two council members who voted against repealing the head tax—said the upcoming budget crunch highlights the need for a permanent, progressive revenue source to pay for services on an ongoing basis, “so that we don’t have to think about the heartbreaking reality when the money runs out at the end of this year.”

As those deliberations are going on, the city will be inviting housing providers to compete for a drastically reduced pool of funding to build affordable housing this year. Last year, the city granted about $101 million in funding for affordable housing projects through its competitive bidding process; this year, providers have submitted about $280 million in requests for just $40 million in available funding. (About $30 million in additional funds are already earmarked for specific projects). King County, which does its own funding process, has made just $7 million available this year for transit-oriented affordable housing projects across the county—down from about $18 million in 2017.

Miriam Roskin, deputy director at the Seattle Office of Housing, says the amount of money available through the NOFA process fluctuates from year to year depending on how much the city is taking in from sources like developer affordable-housing fees, payments from developers for permanent street closures, and federal funding.

Regardless of the reason, the reduction in available funds comes at a time when there is more need for affordable housing in the city than ever, and when other funding sources to build that housing appear on the verge of drying up.

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Morning Crank: Slipping and Sliding

1. With the loss of an estimated $47.5 million in annual revenues from the head tax, the city is in the unenviable position of not only figuring out how to pay for new housing and services that would have been funded by the tax, but funding ongoing commitments that would have been backfilled with head tax funding. In addition to about $15 million in programs that were funded during in the 201 8 budget using one-time funding sources (I’ve asked the city’s budget office for a complete list), there’s Mayor Jenny Durkan’s “bridge housing” program, which was originally supposed to have funded 500 new shelter and “tiny house” encampment slots this year. The bridge housing program, which the council’s finance committee approved on Wednesday, will be funded through 2018 by  about $5.5 million from the sale of a piece of city property in South Lake Union but will cost about $9.5 million a year starting in 2019, according to City Budget Office Director Ben Noble.

The latest version of the plan would pay for 475 shelter beds (down from 500), with 100 of those now officially “TBD,” with no provider or timeline identified.  The timeline for some of the new projects has slipped, too, from late July to November in the case of the controversial proposed “tiny house village” in South Lake Union, and from July to “TBD” in the case of the 100 shelter beds for which no provider is identified. (See below for a comparison between the mayor’s original proposal, announced May 30, and the plan as it stands this week.)

Mary’s Place, which the mayor’s office originally said would contribute 100 new beds by building out an upper floor of its North Seattle shelter, “had a change of situation because they bought a large facility in Burien that put them in a more difficult financial situation,” deputy mayor David Moseley told council members Wednesday, and has “offered us a different proposal that’s more of a diversion proposal,” one that would focus on prevention rather than shelter. “We’re working with them on that proposal,” Moseley continued. “At the same time, we’re working on backfilling those 100 shelter beds.”

HSD had previously denied that Mary’s Place was planning to substitute diversion for its 100 bed commitment. One day before Moseley told the council that Mary’s Place would no longer be able to contribute 100 of the new 500 shelter beds, I asked an HSD spokeswoman if Mary’s Place had proposed fulfilling its commitment through diversion rather than actual shelter beds, as I had heard. The spokeswoman told me that I was incorrect and that there had been no such proposal. Moseley’s comments Wednesday confirmed the existence of the proposal I had asked HSD about (and whose existence their spokeswoman denied) the previous day.

On Wednesday, I asked the spokeswoman for more details about the Mary’s Place beds and what will replace them. In response, she cut and pasted a section of Durkan’s Wednesday press release about the plan that did not include this information. I have followed up and will update this post if I get any more detailed information about how the city plans to replace those 100 beds.

Durkan has asked all city departments to come up with budget cuts of 2 to 5 percent for the 2019 budget cycle that begins this fall. Noble, the city’s budget director, told council members Wednesday that if the city wants to continue funding the new shelter beds after this year, “it will be because they are prioritized above other things, and at the moment, above existing city services. … This will be  a difficult fall with difficult decisions ahead.”

Bridge Housing plan, May 30, 2018

Bridge Housing Plan, June 13, 2018

2. A poll that apparently helped seal the fate of the head tax over the past weekend was reportedly conducted not by business interests, but by Bring Seattle Home, the SEIU-backed coalition that formed to oppose a potential referendum on the tax. The group’s latest expenditure report includes a $20,000 debt to EMC Research, a Seattle-based polling firm.

A spokesman for Bring Seattle Home didn’t return a call for comment. But the poll reportedly found that not only did voters oppose the head tax by wide margins (as previous polls had concluded), they had strong negative opinions of the city council, where the idea for the head tax originated. All seven of the council members who are elected by district are up for reelection next year, and although this poll didn’t ask respondents what they thought of their specific council representative, council members are well aware of this looming deadline. So far, none of the seven have filed their reelection paperwork with the city. Although Mayor Jenny Durkan supported and ultimately signed the “compromise” head tax bill that reduced the size of the head tax from $500 to $275 per employee for businesses with gross receipts above $20 million, poll respondents apparently blamed the council, not the mayor, for the tax, expressing much more favorable views of Durkan than council members.

3. On Thursday, with none of the angry public comments about “triplexes on every block” that often precede such decisions—even Marty Kaplan wasn’t there—the Seattle Planning Commission approved a letter endorsing key aspects of the city’s preferred plan to make it easier for single-family  homeowners to build backyard cottages and create living spaces in their basements. (This alternative is identified as option 2 in the environmental impact statement on the proposal, which the city was required to produce after Kaplan sued. The EIS confirms that backyard cottages promote equity and do not harm the environment.) The letter expresses the commission’s strong support for allowing both a basement apartment and a freestanding backyard unit (subject to the same lot coverage requirements that already exist); eliminating the requirement that homeowners add parking for their extra unit whether they will use it or not; and allowing up to 12 unrelated people to live on lots that have both a backyard cottage and a basement apartment.

The letter also urges the city not to force homeowners building a second additional unit to pay into the city’s mandatory housing affordability fund, a requirement supported by some opponents of backyard cottages, because the additional cost “could suppress production of these units and be counterproductive to the intent of the proposed legislation.” (The point of requiring developers to provide affordable housing is, in part, to offset the impacts of displacement and gentrification that can be side effects of large new developments in previously affordable neighborhoods; the planning commission’s point is that treating individual homeowners like massive developers discourages them from providing housing. It also implies that adding units for renters in single-family areas somehow contributes to gentrification and displacement, when it does the opposite.) The planning commission also recommended setting size limits for new houses to prevent the development of McMansions, and reducing development charges for accessory units, such as sewer hookup fees, and creating a sliding scale for some fees so that lower-income people could afford to build second units on their properties.

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Scratching Your Head Over Today’s Head Tax Defeat? Here Are Some Answers.

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After a raucous, nearly two-and-a-half-hour special council meeting that concluded in a 7-2 vote to repeal a $275-per-employee tax on high-grossing businesses (read my live blow-by-blow here), both proponents and opponents of the head tax were asking: What’s next?

Mayor Jenny Durkan and all nine members of the city council approved the head tax, which was supposed to be a “compromise” between the city and Amazon (the company that would be most impacted by the measure), without coming up with a Plan B, either failing to anticipate or underestimating business and public opposition to the proposal. Not only does the city have to go back to the drawing board, the drawing board is pretty much a blank slate: After meeting for five months, a task force appointed to come up with progressive tax options landed on the head tax as the only viable alternative to regressive taxes like sales and property taxes. Seattle leaders point to the need for “regional solutions” to homelessness, but the only regional solution that has been put forward so far is a countywide sales tax, which went nowhere after King County Executive Dow Constantine proposed it last year. Meanwhile, a countywide task force called One Table, which was supposed to recommend investments in regional homelessness solutions this spring, hasn’t met since April and has not scheduled another meeting after canceling the one planned for May.

So where does this leave Seattle? And what lessons should Seattleites take from the swift, overwhelming defeat of the head tax? Here are some opinionated FAQs about what just happened, who’s responsible, and what happens next.

Why did the council overturn the head tax by such an overwhelming margin after approving it unanimously just a few weeks ago?

Council members who have supported the head tax from the beginning, yet voted to repeal it today, gave a variety of reasons for switching their votes. Lisa Herbold, who co-chaired the progressive revenue task force and issued a blistering statement yesterday denouncing the Seattle Chamber of Commerce for its role in defeating the tax , said she is convinced that “the vast majority of Seattleites now believe that increased human suffering in our city is a result of government inefficiency.” Council member Rob Johnson told me yesterday that he was concerned that a referendum on the head tax could doom the Families, Education, Preschool, and Promise levy that is up for renewal in November. And council member Mike O’Brien echoed Herbold’s comments, saying he didn’t see a path forward “where, six months from now, eight months from now, we will have the revenue we need” because the head tax appears likely to lose if it goes to a vote in November.

Polling by head tax opponents, whose efforts were funded by Amazon, Starbucks, Vulcan, and represents of the hotel and grocery industries, has consistently shown that most Seattle residents currently oppose the head tax, but that isn’t the whole story. As several speakers (and council member Kshama Sawant) pointed out today, proponents could have put together a counter-campaign to make the case for the tax between now and a November vote on the referendum. (As someone shouted in council chambers, “That’s what campaigns are for!”) The problem was, no one wanted to. Council members have sounded increasingly resigned, in recent weeks, to the futility of trying to pass local funding for homelessness in the face of virulent neighborhood opposition on the one hand and energetic, well-funded business opposition on the other. As those two groups have coalesced in recent weeks (today, head tax opponents claimed to have gathered 45,000 signatures purely through “grassroots” efforts, a claim belied by the $276,000 the “No Tax On Jobs” campaign paid a Trump-affiliated signature-gathering firm called Morning In America last month), council members have increasingly expressed the view that most of the city is against them. Yesterday, O’Brien told me that it had become “increasingly clear” to him “that the public seems to be aligned with the business community, specifically the Chamber,” against the head tax. O’Brien, who has received dozens of harassing emails and was singled out for extra invective at a recent town hall in Ballard that devolved into a one-sided screaming match last month, said he currently plans to run again, but noted when we spoke yesterday that he has not yet filed his paperwork to do so.

Is this really all about Amazon? 

No, but you’d be forgiven for thinking it was. Council member Kshama Sawant, who exhorted her supporters to “Pack City Hall!” in a mass email yesterday, has consistently characterized the head tax as a “tax on Amazon” and Jeff Bezos, whom she described earlier today as “the enemy.” Demonizing individual corporations is rarely a path to building broad community coalitions, and that’s especially true when that corporation is Amazon, whose name many Seattleites (rightly or wrongly) consider synonymous with “jobs.” This is one reason head tax opponents were able to so easily spin the head tax as a “tax on jobs,” and to get ordinary citizens to gather signatures against a tax that would really only impact the city’s largest corporations.

But as council member Teresa Mosqueda, who voted with Sawant against repealing the tax, noted pointedly this afternoon, Amazon is only the most visible opponent (and target) of the tax, which would impact nearly 600 high-grossing companies in Seattle. Amazon’s estimated $20 million annual head tax payment may be budget dust to a multi-billion-dollar corporation, but other companies with slimmer profit margins, like Uwajimaya (which opposed the tax), would also be impacted, and tax proponents made a critical mistake in failing to address or at least consider their concerns.

This goes not just for Sawant and the socialist activists who support her, by the way, but Durkan and the rest of the city council. By focusing their efforts on getting Amazon to sign on to the tax (in a handshake deal that apparently wasn’t very solid to begin with), the council and mayor forfeited an opportunity to bring business (and the labor unions that opposed the tax) to the table to come up with a real compromise that would actually stick, instead of dissolving less than 48 hours after a deal was supposedly struck, as the head tax “compromise” did. The folks who held up a giant “TAX AMAZON” banner at today’s meeting may find this hard to believe, but the $15 minimum wage was not won solely by a movement of uncompromising socialists; it was the product of months of hard work and tough negotiations between unions, city leaders, and businesses. Ultimately, businesses and labor presented a united front in favor of a compromise version of the $15 minimum wage proposal, which defused opposition from both the right and left.

So all the head tax opponents who insisted today that they just want better solutions to homelessness than the head tax have an alternative in mind, right?

Not really. Head tax opponents, many of many of them wearing anti-tax T-shirts and holding “No Tax on Jobs” signs (according to the latest campaign filing, Morning In America spent $3,500 on T-shirts), demanded that the council be more transparent about how money for homeless services is spent, and have suggested that the city can find enough money in its current budget simply by spending money more “efficiently.” While they certainly have a point that the city could do a better job highlighting how it spends its resources (the Human Services Department’s “addressing homelessness” webpage hasn’t been updated since last year, and the department’s “performance dashboard” is down due to “technical difficulties,” according to a spokeswoman), it’s far from clear that the activists demanding “data” and “audits” would be satisfied with any amount of information about the city’s budget for homeless services unless it coincided with reductions in funding for those services. As for efficiencies, as Mosqueda and O’Brien both pointed out today, most of the growth in the city’s budget over the past several years has gone into utilities, police, and other services, not homelessness and housing. “My analysis is we absolutely need more resources,” O’Brien said today. “There is no way” for the city to pay for additional services for the 6,300 people living on Seattle’s streets with existing resources “without devastating cuts to other programs that we all rely on,” O’Brien said.

So … is the takeaway just that Seattle is screwed? 

Well… Kinda. After today’s meeting, I talked to proponents of the head tax who seemed bruised and demoralized by today’s decision, and understandably so—apart from the 2016 housing levy, which is focused more on housing construction than on shelter beds, housing vouchers, and other services that flow through HSD, the city has failed to pass new revenue since former mayor Ed Murray declared a homelessness state of emergency in 2015.

If I was an activist who worked on the head tax, I would turn my attention away from Amazon—which will never support any tax that impacts its bottom line—and toward business and labor groups that might be more amenable to a compromise. I would also start posing some hard questions about what happens next not just to the city council—which is an easy target, given their greater accessibility—but to the leaders who have stayed largely in the background as this fight has played out, namely Mayor Durkan and King County Executive Dow Constantine. Durkan brokered the deal with Amazon and acknowledged that she didn’t have a specific backup plan if the head tax failed—what’s her plan now that it has? And Constantine has been mostly absent on homelessness since the beginning of the year, when he convened the One Table regional task force (unless you count his statements denouncing Seattle’s head tax proposal). What are the county and city doing to redress the embarrassing failure of the head tax, and how will they ensure that the next tax proposal, if there is a next tax proposal, doesn’t meet a similar fate? These are questions advocates on both side of the head tax debate should be asking as they regroup, reflect, and prepare to rejoin the debate over solutions, which certainly won’t conclude with today’s head tax repeal.

Head Tax Heads for Repeal. What Happened, and What Happens Now?

The city council will hold a special meeting at noon tomorrow—just two days before the deadline for head tax opponents to turn in 17,000 signatures for a citywide referendum to overturn a tax on big businesses to help address Seattle’s growing homelessness crisis—to preemptively repeal the tax. The decision came just weeks after a bruising battle that resulted in the unanimous passage of a “compromise” head tax plan—$275, instead of the original $500—that was supported by all nine council members and signed by Mayor Jenny Durkan. Much like that proposal, today’s surprise repeal announcement emerged after a round of secret weekend negotiations, in which council members who supported the tax just weeks ago concluded that it was time to concede the fight. Polling on the referendum to repeal the tax reportedly spurred council members to reverse their support.

Earlier this afternoon, seven council members signed off on a statement from Mayor Jenny Durkan’s office supporting the repeal measure; only Teresa Mosqueda and Kshama Sawant, who denounced the “backroom legislation” during Monday’s full council meeting, did not signal their support for repealing the tax. The statement from the other seven council members said, in part:

“In recent months, we worked with a range of businesses, community groups, advocates, and working families to enact a bill that struck the right balance between meaningful progress on our affordability and homelessness crisis while protecting good, family-wage jobs. Over the last few weeks, these conversations and much public dialogue has continued.  It is clear that the ordinance will lead to a prolonged, expensive political fight over the next five months that will do nothing to tackle our urgent housing and homelessness crisis. These challenges can only be addressed together as a city, and as importantly, as a state and a region. 

“We heard you. This week, the City Council is moving forward with the consideration of legislation to repeal the current tax on large businesses to address the homelessness crisis.”

The $275-per-employee annual tax, which would have applied to the 585 highest-grossing businesses in Seattle,  would have funded $47 million a year in services, shelter, and housing for Seattle’s homeless population. Without the tax, hundreds of new apartments will not be built, hundreds of new shelter beds will not open up at night, and thousands of people who would have received rental assistance, case management, or mental health care through the levy proceeds will continue to go without those services.

Opposition to the tax came not just from the usual suspects in the business community—Amazon, which threatened to pull employees from the city over an earlier version of the tax, pledged tens of thousands of dollars to the repeal effort, as did Starbucks, Kroger, and representatives of the hotel and grocery industries—but from groups with names like Speak Out Seattle and Safe Seattle, whose members gathered signatures on their own time to repeal a tax on giant corporations. The tax, which was the product of five months of meetings by a 17-member task force, was chosen specifically because it would not directly impact ordinary citizens (unlike a property tax or sales tax), but enough ordinary citizens opposed it to convince at least some council members that their voices represented the majority of Seattle.

“I think it reflects majority sentiment,” council member Sally Bagshaw says. “I do, and I’m sad. … Everywhere I went, clearly businesses were unhappy, but half of labor was unhappy.  Neighborhoods and communities were saying, ‘We don’t see tents being moved off the street. We still see needles. We still see garbage. We’re not happy with this.'” Bagshaw did not mention polling on the head tax, nor did any of her colleagues.

Council member Rob Johnson, who was not directly involved in the weekend negotiations, says his primary concern in supporting a repeal of the head tax is the Families, Education, Preschool, and Promise (FEPP) levy, which funds pre-K through college education and is on the ballot in November. A referendum to repeal the head tax, he worried, might have put voters in an anti-tax mood and swept preschool funding away with it.

“As the person trying to get the [FEPP] levy across the finish line in November, I’m obviously excited about the opportunity to have a laser-like focus on that, as opposed to a potential referendum and the  [FEPP] levy at the same time,” Johnson says. “I signed on because I think it gives us a much clearer pathway for success in November.” The last time the families and education levy was on the ballot, in 2011, it passed by more than 63 percent.

Council member Mike O’Brien, who has been targeted with an outsized share of the criticism from activists who oppose spending more money on homelessness (including a “town hall” in Ballard that immediately devolved into a profane one-way screaming match), says it became “increasingly clear” over the past couple of months “that the public is aligned with the business community, specifically the Chamber,” which has run a well-funded campaign to reframe the employee hours tax, which would be paid by employers, as a “tax on jobs,” which would harm employees and the city as a whole.

In a statement, council member Lisa Herbold—who signed the joint statement supporting repeal—denounced the Seattle Metropolitan Chamber of Commerce, which she said “has convinced the vast majority of Seattleites 1) of the tired, old conservative trope that increased levels of human suffering we see in our city is caused by government inefficiency rather than by the Gilded Age level income inequality in Seattle and elsewhere, and 2) that leading first with a regional funding approach, reliant on higher property or sales taxes for all taxpayers, is preferable to resources from those most benefiting from income inequality in Seattle paying their fair share.” Asked why she issued such a scathing statement after signing off on the joint statement supporting repeal, Herbold said, “I’m acting based on what I’m hearing” about the lack of support for the tax, but “I don’t agree with” repealing the tax.

Had Durkan brought the Chamber into the head tax negotiations earlier this year, instead of focusing on getting Amazon to stand down, the campaign might have looked much different, or not existed in the first place. But as things played out, “don’t tax jobs” became a rallying cry for both businesses and, importantly, citizen activists, who also glommed on to the idea that the city could get by without additional revenues by auditing its homelessness programs  and “spending our existing dollars more efficiently.”

O’Brien says that with thousands of people sleeping outside and in shelters and transitional housing across Seattle and King County, “finding efficiencies” isn’t enough to make a dent in the crisis. “We absolutely need more funding for housing and  services. We would have to make devastating cuts to other programs that everyone cares about to fund what we need to do with existing resources, so that’s just not possible,” he says. With the head tax, which the task force chose after rejecting other options as impractical or open to legal challenge, off the table, “there’s nothing that stands out that’s remotely promising, and that’s discouraging.” A city income tax is locked up in court, sales and property taxes are regressive and unpopular, and other options—like a capital gains tax on wealthy individuals, or a tax on corporate profits—are prohibited by law. There really just aren’t many options that aren’t either political suicide or downright illegal.

For months, the mayor and council have talked about the need for “regional solutions” to homelessness—that is, a tax that would not be borne solely by Seattle. But the region has shown little interest, so far, in coming up with such solutions. Last year, King County Executive Dow Constantine proposed a countywide sales tax as a replacement for a Seattle-only property tax measure floated by then-mayor Ed Murray, but that proposal has not been seen or heard from since. Meanwhile, a regional task force called One Table, which was supposed to come up with recommendations for funding homelessness services earlier this year, has canceled several meetings and is reportedly stalled. Mayor Jenny Durkan opposed an earlier, larger version of the head tax and signed the council’s legislation for the “compromise” that will be repealed tomorrow, but has never come forward with an alternative proposal of her own, leaving the council in the driver’s seat on spending, for better or worse.

Mosqueda, one of the two council members who did not sign off on the statement advocating repeal, said today that the head tax the council approved was “the best idea at the time”—better, at least, than nothing, which is what the city is left with now. “I am happy to support an alternative strategy, but I need to know that there’s a proposal, so that folks have light at the end of the tunnel, so that there is housing on the horizon, so people can get off the streets and not continue to suffer and live outside.”

O’Brien expressed a sentiment that has been bubbling for weeks at city hall, on homelessness and other issues: “We need leadership from the mayor. We can’t say we’re not going to do anything. If there’s not a regional solution, we have to do something else. She’s been here six months now, and she needs to make this her top priority.” The mayor’s office did not respond to a request for further comment beyond the joint statement. But she did not present a plan to deal with the defeat of the head tax, which would have funded her proposal to add 1,000 new beds at shelters around the city, announced last week. “We’ll burn that bridge when we come to it,” Durkan joked at the time. And here we are.

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‘Homelessness Is Not a Choice’: The State of the Crisis in Seattle and King County

This story originally appeared at Seattle magazine.

Three years after the city of Seattle declared a homelessness state of emergency, the number of people experiencing homelessness in the region continues to increase.

This year’s one-night count of people experiencing homelessness in King County, conducted by the county’s homelessness response agency All Home, found 12,112 people living outdoors, in vehicles, and in shelters—a 4 percent increase over 2017.

At a press conference Thursday, All Home interim director Kira Zysltra attributed the rise in homelessness, which was slightly slower this year than in previous counts, to a growing lack of affordable housing in King County. “Homelessness is not a choice,” she said. “We are the fastest-growing big city in the country. … The economy is booming and rents are rising, [which] leads to more and more people falling into homelessness.”

The January 2018 count also showed sharp increases in the number of people living unsheltered on sidewalks, in parks, in sanctioned encampments, and in vehicles, as well as an increase in the number of single and chronically homeless individuals.

That number, according to the report, is “to be considered a minimum estimate” and undoubtedly represents an “undercount” of the true number of people experiencing homelessness at any one time.

Of those, 6,320 were living unsheltered (4,488 of them in Seattle), a 15 percent increase over 2017 in King County and a 17 percent increase in Seattle.

Mark Ellerbrook, manager of regional housing and community development with the King County Department of Community and Human Services, said around 30,000 people were homeless in King County at some point in 2018.

The one-night count also included a representative survey of people experiencing homelessness in King County, conducted after and separately from the count. According to All Home, 98 percent of the people surveyed said that they would accept safe, affordable housing (as opposed to overnight shelter) if it was offered.
According to Ellerbrook, the county faces a housing shortage of about 90,000 units affordable to people making less than half the area median income, which for a two-person household, would be $40,100. This shortage, he adds, has only grown since 2011, as the booming economy has led to rising rents across the county.

“We see the declining availability of affordable housing as a root cause of homelessness,” Ellerbrook said.

In fact, the overwhelming majority (80 percent) of survey respondents said access to affordable housing and rental assistance would help them escape homelessness, and 70 percent said that immediately prior to becoming homeless, they had owned or rented a home or lived with friends or family members.

Some other highlights from this year’s report:

• The number of people living in vehicles increased 46 percent in this year’s count, from 2,314 in 2017 to 3,372 this year. A very small portion of this increase could be attributed to a slight (7 percent, or 223-person) decrease in the number of people living on the streets, in abandoned buildings, or in tents.

People living in vehicles were less likely to have access to services, less likely to have criminal records, and more likely to report that police had asked them to move along—71 percent reported being told to leave, compared to 49 percent of people experiencing homelessness in general. They also seem far more likely to have become homeless because of job loss and evictions.

According to the report, “Compared to all other survey respondents, vehicle residents reported notably higher rates of attributing their homelessness to the loss of a job, eviction, or the dissolution of a relationship.”

• Although more people moved into permanent housing than in previous years—according to Zylstra, “we are seeing people, through our programs, housed faster and faster at higher and higher rates.” And although the number of people in families experiencing homeless and homeless veterans declined (by 7 percent and 31 percent, respectively), other types of homelessness increased, often dramatically. The number of people experiencing chronic homelessness—defined as persistent, ongoing homelessness combined with a disabling medical condition—climbed 28 percent between 2017 and 2018, for example.

Although the report offers no specific explanation for the sharp increase in chronic homelessness, the specific challenges facing people who live on the street for long periods suggest that lack of access to behavioral health care is a major issue. According to the report, 63 percent of chronically homeless people reported behavioral health and substance abuse issues, respectively, and more than half (52 percent) said they were homeless because of those issues, compared to 32 percent of those surveyed overall.

Jim Vollendroff, head of the Behavioral Health and Recovery Division at King County Public Health, said that the “vast majority of those entering our mental health services system right now are entering the system at the equivalent of someone who has cancer entering the system at stage 4.” Discharging those folks from the acute mental health care system without housing in place just compounds the problem, he said, because “shelter or homelessness…is not an environment for people to maintain recovery.”

• As in every previous survey, the vast majority of people living on the streets in King County reported being from the region—a fact that has never dispelled the persistent myth that people flock to Seattle from all over the country for free services.

About 83 percent of survey respondents said they lived in King County immediately prior to losing their housing, and another 11 percent lived in another county in Washington State. That leaves just 6 percent who lived in another state when they became homeless; the primary states from which people reported moving are California, Oregon, and Texas.

• Several reporters asked whether it wasn’t true that most unsheltered people remain homeless simply because they “refuse services” and don’t want to come inside. The survey found that, in fact, people listed lack of access to services as one of the primary barriers to finding permanent housing.

This year, the number of people who reported that they were receiving any services at all tripled over last year, to 18 percent, and 69 percent of respondents said they had experienced problems when trying to access services. These problems included not qualifying for the services they wanted (23 percent), lack of transportation (23 percent), not knowing where to go (23 percent), and never hearing back after applying for services (18 percent). These numbers, combined with the finding that virtually every person surveyed said they would accept safe, affordable housing, suggests that the problem of persistent homelessness is far more complicated than people refusing to accept the shelter and services they’re offered.

 

Morning Crank: “Why Is the Mayor Allowed To Dictate the Law?”

1. On Tuesday, May 15, the Consumer Protection Division of Attorney General Bob Ferguson’s found itself suddenly inundated with Consumer Protection Act complaints against the Seattle City Council, claiming that the council had violated citizens’ consumer rights by, among other things, allowing the city’s “public areas, streets, sidewalks, parks and cemeteries” to be “destroyed by unsanctioned homeless people and drug addicts.”  The written complaints—more than a dozen in one day—had a couple things in common. They all came from residents of Seattle’s Magnolia neighborhood. And they all used strikingly similar language, replicated here from one of the complaints, which I obtained through a public records request:

Dear Attorney General: I am writing to you because our public areas, streets, sidewalks, parks and cemeteries and currently being destroyed by unsanctioned homeless people and drug addicts. You cannot drive anywhere in Seattle and surrounding neighborhoods without seeing a homeless tent, evidence of where a homeless tent once was, trash and drug needles, bottles of urine, human feces, etc. in any open space around the city. The homeless are destroying public property by cutting down trees and shrubs to make their encampments. They are littering, urinating and depositing used needles around their encampments. They are harassing pedestrians for money. Often these camps are elaborate, built of shipping pallets, plywood, and other building materials stolen from neighbors or construction sites. Some are built using Yellow Bikes with tarps draped over them. RV’s equipped with generators and BBQ grills are being setup alongside public roads as if it were a camp ground! On occasion, they have stolen power from neighboring houses or businesses. This has gotten way out of control. These camps are dangerous to both the homeless and residents using the public spaces, as they are often setup right next to a busy road with trash and debris spilling into the road and sidewalk areas. Needles can be picked up by children or accidently stepped on by children or pets. The trash attracts rodents. The urine and human feces is a health concern. We report these encampments when they spring up, but we are told by the police that there is nothing that they can do ??? that they have been instructed by the Chief of Police and Mayor to not do anything unless a felony crime has taken place. Currently there are laws against camping along side public roadways and on sidewalks. There are laws against littering. There are laws against camping out of your vehicle along a public road. There are laws against public urination. There are laws against illegal drug use. There are laws against loitering. There are laws against illegal parking. There are laws against vagrancy. Why are the laws not being enforced? Why is the Mayor allowed to dictate the law? I see this no differently than if the Mayor asked the Chief of Police not to arrest her brother for drunk driving and felony hit and run. She should not be able to dictate which laws are enforced and which laws are overlooked. As Attorney General, I would like to know what you can do to ensure that these laws are enforced? Laws were created for the protection and safety of everyone in the community. The homeless is not a protective class. They should not be exempt from following the laws that we all must follow simply because of their income status. Please advise as to what can to be done to enforce our laws! Thank you.
Curious how so many people in Magnolia came to file essentially the same complaint (sometimes shortened or dolled up with a few personal details) at the exact same time, I checked out what seemed to me the most likely suspect: The Magnolia NextDoor page. (NextDoor is a semi-private social network for people who live in the same area of the city.) Sure enough, a little over a week ago, there it was: A post from a Magnolia resident, titled “Homeless Encampments – Letter to the Attorney General,” that encouraged people concerned about the issue of “tents that are springing up all over the city” to “file a complaint with the Attorney General” using his letter as a template.
The complaints are all listed as “closed” in the state’s consumer complaint database, and the division referred all the complaints back to the Seattle City Council “to process in accordance with your agency’s procedures.” The consumer protection division deals only with complaints against businesses, not government agencies or officials, and according to its website, “is authorized to bring legal action only in the name of the State of Washington, and is prohibited from serving as an attorney for individual consumers.”  You can almost hear the deep, bureaucratic sigh as another pile of frivolous complaints land on the AG’s virtual desk.

2. Tonight at 6, the Seattle LGBTQ Commission will host a screening of “Pinkwashing Exposed: Seattle Fights Back!,” a film that argues Israel has enlisted unwitting LGBTQ people in service to so-called “Israeli apartheid” by “promoting [Israel] as ‘gay friendly’ to divert attention from terrible human rights violations.” The term “Israeli apartheid,” which likens Israel’s control of the West Bank and its policies toward Palestinians to the racist policies of the former South African government, is common in far-left circles but is considered anti-Semitic by many Jews. On Wednesday, the Jewish Federation Seattle created a petition to stop the event, which the group says “promotes lies about Israel, alienates and discriminates against the tens of thousands of Jews and Israelis living here, and is likely at the very least to stir up increased anti-Semitism.” In 2006, a gunman went on an anti-Israel tirade while he shot six people, killing one, at the Jewish Federation’s headquarters in downtown Seattle.

According to the event page for the screening, which is being co-hosted by the Seattle Commission for People with Disabilities and socialist city council member Kshama Sawant the 10-member, city council-appointed commission is “standing in solidarity with Palestinians who face daily persecution from the occupying forces of the Israeli government. We are critiquing the Israeli governmental use of force, not individual Jewish people nor or we suggesting limiting human rights of Jewish people.”

But individual Jewish people in Seattle, and groups that work to combat anti-Semitism in the city, see the event differently. Maxima Patashnik, a spokeswoman for the Jewish Federation, says the documentary “presents a really one-sided view of the Israeli-Palestinian conflict, and is really a detriment to the LGBTQ activists in Israel who have worked hard to gain equality and human rights and lumps them in with this Israeli propaganda campaign.” She says that while the film (like the event itself) does include the perspectives of a handful of Jewish people, “The events in the film as they are presented are extremely exclusionary, unwelcoming, and alienating to the vast majority Jews and Israelis here in Seattle.”

Patashnik also questions whether a city-funded commission whose mission does not include weighing in on international affairs should be sponsoring an event at City Hall that promotes the idea that (according to the website for the film) “Israel is the country most famous for” pretending to be LGBTQ-friendly to cover up human rights violations. “If this film was just being sponsored by Queers Against Israeli Apartheid, they would be well within their rights to do that. Where it crosses the line is that this is city-sponsored,” she says.

In a statement, the Seattle LGBTQ Commission said it was “hosting the film screening as an opportunity to encourage learning and civil discourse” and notes that the film was “made by a Jewish filmmaker and features Jewish and Palestinian activists working together.” The panel discussing the film will also include a Jewish member, the commission says. (LGBTQ Commission co-chair Julia Ricciardi did not respond to a followup question about whether any of the commission members who signed off on the event are themselves Jewish.)

“The Seattle LGBTQ Commission is committed to highlighting and centering experiences of individuals who are often marginalized, underrepresented or erased from public discourse,” the statement continues. “This film screening is an opportunity to invite all individuals from the Seattle community to engage in learning and discussion around information that may not be widely known, as well as provide valuable space for people to engage in dialogue about governmental practices, whether those practices be local, federal, or international.”

Patashnik says the Jewish Federation does not have any plans to formally protest the event.

 

3. Earlier this month, a woman was the victim of a brutal rape by a stranger in the restroom of a car dealership in Ballard. (Most rapes occur in people’s homes and are committed by men who are known to their victims.) Much of the media, and certainly many members of the public, have fixated on the fact that the man was homeless, suggesting that women are at particular risk of being raped by homeless strangers in Seattle due to policies the city council has adopted. And over the last few weeks, they have expressed their feelings
Many of the emails were directed at District 6 council member Mike O’Brien, whose district includes Ballard, where the rape occurred. Some, by the standards of anti-homeless social media screeds, are fairly mundane—a woman claims that she and her children are now “forced to stay in our homes and no longer feel safe to interact in the community we once loved”—but others are darker.
You probably know where this is going.

“Hey Mike,” one man writes. “Heard one of you Ballard BUMS raped someone today? Care to comment? The blame for this is COMPLETELY on your head due to your coddling of the BUM herds in Ballard.

“I sincerely, SINCERELY, hope that your wife is the next rape victim. Please do the world in general a favor and kill yourself.”

Another letter, from a woman, says that if council members like the “unsafe dump” Seattle has turned into, they should invite “these people” into their homes, where “They can rape your friends and do drugs in your backyard.”

A letter from a couple suggests that council members may “wake up” once  “your mother, wife, daughter, son [is] the next victim brutally raped by some mentally deranged homeless person from God knows where!!! … It takes city workers days to clean up after these PIGS!!,” the letter continues. “That’s appreciation isn’t it??  Wake up!!!  Who is in charge here??  Seems like the homeless are.  If they don’t want help, screw them, lock them up.”

A real estate broker, who helpfully includes the name of her employer, her personal website, and the signature line, “Realtor since 1990. Real Property. Real Expertise,” suggests that council members should “make every square foot of the floor space in Your yard, Your home Your children’s rooms available for the outlaws you seem to care for so much. Between Yourselves and all Your staffers You can get a true taste of what the policies you have wrought mean.

The vagrants have No rules

They could …Rape and assault, immolate, stab, kidnap you and your neighbors.

And don’t call the police they shouldn’t respond, you have instructed them not to.

You have already given the vagrants all the permission they need to do all of the above.”

Finally, to end on a (slightly) lighter note, there is this slightly deranged email, with the subject line “Rape of Seattle,” from a man who believes that city council members are accompanied at all times by security details and never “openly walk on the street.”

“If indeed you were running a safe city, then why do you require personal security?,” the writer asks. “Seattle’s political women like you Jenny, Sally, Kshama, Lisa, Debora, Lorena, Teresa, should be able to walk or bike the streets you are responsible for. At least bring your vehicle in for work without security.”

City council members do not have security details, and can regularly be seen on buses, walking on city sidewalks, riding their bikes along Fourth Avenue, and even at the downtown YMCA.

If you enjoy the work I do here at The C Is for Crank, please consider becoming a sustaining supporter of the site or making a one-time contribution! For just $5, $10, or $20 a month (or whatever you can give), you can help keep this site going, and help me continue to dedicate the many hours it takes to bring you stories like this one every week. This site is funded entirely by contributions from readers, which pay for the time I put into reporting and writing for this blog and on social media, as well as reporting-related and office expenses. Thank you for reading, and I’m truly grateful for your support.

Six Things to Think About When Thinking About the Head Tax

This story originally appeared in the South Seattle Emerald.

Weeks of tense negotiations, heated yelling sessions, and a high-stakes game of chicken between the biggest employer in the city and the city council culminated in a unanimous city council vote to approve a $275-per-employee “head tax” on Monday afternoon. But what does the vote mean? Is Amazon’s threat to abandon the city off the table? And where does Seattle go from here?

We’ve put together a handy primer to answer these and other pressing questions about this latest effort to address the growing homelessness crisis in Seattle.

1. The $275-per-head tax the council passed Monday was not the tax a majority of the council wanted to pass. Last Friday, in fact, the council’s finance and neighborhoods committee (made up, on this occasion, of all nine council members) approved a much larger tax of $500 per employee, which would have raised around $75 million a year. That vote, however, was too narrow (at 5-4) to withstand a likely veto by Mayor Jenny Durkan, who offered up a $250 version of the tax as a counterproposal last week. The “compromise” most council members agreed to over the weekend raised the total size of the tax by just $25 per employee, enough for Durkan to cheerfully declare victory on Monday evening and for council members who wanted a larger tax, such as council member Mike O’Brien, to say that they had done everything they could.

2. The original $500 tax proposal didn’t come out of nowhere—it was recommended by the city’s Progressive Revenue Task Force, a group that was established after a group of council members failed to pass a smaller, but similar, business tax during the city council’s 2017 budget process. The task force was charged with coming up with a tax that would produce between $25 million and $75 million in revenues; they ended up proposing a $500-per-employee tax on businesses with more than $20 million in gross revenues after considering, and rejecting, lower tax levels that would apply to a larger number of businesses. By targeting the tax at businesses at the very top of the city’s revenue scale, the task force was attempting to respond to objections by smaller businesses (those with more than $5 million but less than $20 million in gross revenues) operate on narrow profit margins and shouldn’t really count as “big businesses.” The more businesses the task force exempted from the tax, the larger the tax had to be to yield the same revenues, which is how the task force arrived at $500

3. The head tax isn’t enough to address the problem. The tax, which sunsets after five years, would raise about $47 million a year for new housing, rental subsidies, and supportive services. Under the spending plan adopted by the council, that would be enough to build about 591 units of housing—288 for low-income people making between 30 and 60 percent of Seattle’s area median income and 303 permanent supportive housing units for formerly homeless people making between 0 and 30 percent of median.  The plan also includes rental subsidies to get homeless people into “immediate housing,” funding for a total of about 250 new shelter beds and authorized encampments, and more money for safe parking lots and sanitation stations.

A few hundred housing units is obviously far from adequate to house the more than 8,500 people who were homeless in Seattle at the beginning of 2017, when All Home did its most recent homeless census—a number that has likely only grown since then. In fact, a report commissioned by the Seattle Metropolitan Chamber of Commerce, by the consulting firm McKinsey & Co., concluded that the county needs an additional 14,000 units of affordable just to address the current needs of people experiencing homelessness in King County. Building that much housing and addressing the other needs of King County’s homeless population would cost the public and private sectors $410 million a year, the independent report concluded, and that’s only if the annual rate of people falling into homelessness does not increase. King County would need to spend between $164 million and $215 million a year to pay its “share” of that $410 million total.

Michael Maddux, a staffer for council member Teresa Mosqueda’s office, crunched the numbers in the report and determined that Seattle’s “share” of that countywide total would be somewhere between $59 million and $79 million. The $47 million in annual spending that the $275 head tax would provide falls short of the bottom end of that range.

4. The tax that passed Monday is just the beginning of the story. Although the national news crews packed up their cameras and left before the council could begin discussing how to spend the new revenues on Monday, the spending plan is in many ways more critical than the size of the tax. The plan Durkan proposed for her $250 tax would have focused the vast majority of its spending on emergency shelter, encampment removals, and other stopgap solutions, rather than housing, building just 250 units of new affordable housing over five years.

On Monday, the council approved a spending plan that took the opposite approach, emphasizing housing over temporary shelter. However, the real debate will come later this year, when Durkan proposes an implementation plan for the tax as part of the city’s annual budget process. (The spending plan adopted this week sets the council’s priorities, but is itself a nonbinding resolution.) That plan, and the budget process, will give proponents of the Durkan spending model another opportunity to attempt to recalibrate the spending balance in the tax proposal.

The city’s adopted Pathways Home plan, which directs the city to focus its homeless service spending on programs that get people off the streets and into “permanent housing” as quickly as possible, recommends that the city do the exact opposite of what Durkan recommended in her original spending plan. Last year, the city adopted a spending plan for homeless service providers that actually eliminated funding for a large number of basic shelter beds, on the grounds that those shelter providers failed to demonstrate that they could move their clients into permanent housing quickly. Pathways Home is controversial, in part, because it penalizes nonprofits that serve the hardest to house, but the “housing first” principles that underlie it are right in line with the McKinsey report that suggested a lack of housing is the fundamental problem underlying Seattle’s homelessness crisis.

5. Seattle has continued to insist that it won’t continue to “go it alone” on funding for homelessness, but King County has yet to step up and propose its own tax plan to supplement Seattle’s. Although Durkan announced Monday that King County will provide $5.7 million in one-time funding to help keep shelters and authorized encampments open in 2018, the county has been noticeably quiet about what it will do to fund housing and services on an ongoing basis. One Table,” a regional task force made up of elected officials, advocates, and business leaders from across King County, began meeting in January. So far, they have announced that Pearl Jam will hold two concerts in Seattle to raise at least $1 million for homelessness—and not much else. The group’s last two public meetings were canceled with minimal public notice, and the closest they have gotten to a set of recommendations is nine-page document, released quietly last month, that includes no cost estimates, no funding proposals, and no timeline for implementing any of the ideas on the list. That document no longer appears to be available on King County’s website.

6. Finally, the passage of the head tax is unlikely to end the vitriol that has accompanied the debate over homelessness in the past few months, exemplified by a recent town hall meeting at a church in Ballard where homeowners shouted down a panel of elected leaders and progressive revenue task force members with bellows of “BULLSHIT!” “FUCK YOU!” and “RESIGN NOW!”  The problem with any spending plan that fails to house enough people to make an appreciable dent in homelessness is that it leaves too many people on the streets, opening the city up to the predictable objection that “no matter how much money we give them, the problem keeps getting worse”  and the problem with any spending plan that takes a large number of people off the streets and stuffs them into new “tiny house” camps and shelters is that those people have nowhere to go and shelter becomes a way of warehousing people indefinitely.

Meanwhile, the problem with spending the amount that experts consider “enough” is that it tends to inspire fierce pushback from the business community. (According to Maddux’s report, a thorough response may require about $69 million per year from Seattle and $120 million from the rest of the county.)  Amazon threatened to stop construction on one of its downtown projects over the original $75 million head tax proposal, and said on Monday that the adopted $47 million tax “causes us to question our growth here” in Seattle. That kind of talk tends to send those who have benefited from the recent Amazon-fueled boom, such as homeowners who have seen the value of their properties skyrocket to an average of $820,000 over the last few years, into a tizzy. Amazon may not leave Seattle, or even slow its growth here—Fast Company, the business magazine, called the company’s latest statement “passive-aggressive and vaguely threatening”—but the possibility that the company, which just reported $1.6 billion in quarterly profits, might retaliate against the city remains a guillotine that the company is more than happy to hold over the heads of those who have benefited from its success.

Afternoon Crank: Competing for a Limited Number of Units

1. While the city of Seattle was debating over the merits of the head tax last week, the King County Auditor’s Office quietly released a report on the region’s response to homelessness that concluded, among other things, that “rapid rehousing”—which provides short-term rent vouchers to low-income households to find housing in the private market—isn’t working in King County. The city of Seattle’s adopted Pathways Home approach to homelessness suggests investing heavily in rapid rehousing, which assumes that formerly homeless people will be able to pay full market rent on a private apartment within just a few months of receiving their vouchers.

For this system to work, either: a) formerly homeless people must get jobs that pay enough to afford full market rent in Seattle, currently over* $1,600 for a one-bedroom apartment, before their three-to-12-month vouchers run out, or b) formerly homeless people must find housing that will still be affordable after they no longer have the subsidy. The problem, the King County report found, is that there are only about 470 private units available throughout the entire county, on average, that are affordable to people making just 30 percent of the area median income—and the competition for those units includes not just the hundreds of rapid rehousing clients who are currently looking for housing at any given time, but all the other low-income people seeking affordable housing in King County. Seattle’s Pathways Home plan would dramatically increase the number of rapid rehousing clients competing for those same several hundred units.

“Given market constraints, difficulties facilitating housing move-ins could limit rapid rehousing success,” the auditor’s report says. “As local funders increase their funding for RRH, it is possible that move-in rates will go down as more households compete for a limited number of units. Given the importance of client move-ins to later success, if this occurs additional funding spent on RRH may have diminishing benefits relative to its costs.” Additionally, the report notes that a proposed “housing resource center” to link landlords and low-income clients seeking housing with vouchers has not materialized since a consultant to the city of Seattle, Focus Strategies, recommended establishing such a center in 2016. In a tight housing market, with rents perpetually on the increase, landlords have little incentive to go out of their way to seek out low-income voucher recipients as potential renters.

2. Learn to trust the Crank: As I predicted when he initially announced his candidacy at the end of April, former King County Democrats chair Bailey Stober, who was ousted as both chair of the King County Democrats and spokesman for King County Assessor John Wilson after separate investigations concluded that he had engaged in unprofessional conduct as head of the Democrats by, among other things, bullying an employee, pressuring her to drink excessively, and calling her demeaning and sexist names, will not run for state legislature in the 47th District.

Fresh off his ouster from his $98,000-a-year job at King County, and with a $37,700 county payoff in hand, Stober told the Seattle Times‘ Jim Brunner that he planned to run for the state house seat currently held by Republican Mark Hargrove. Stober’s splashy “surprise” announcement (his word) came just days before a candidate with broad Democratic support, Debra Entenman, was planning to announce, a fact that was widely known in local Democratic Party circles. In a self-congratulatory Facebook announcement/press release, Stober said that he decided not to run after “conversations with friends, family, and supporters,” as well as “informal internal polling.” Stober went on to say that his “many supporters” had “weathered nasty phone calls and texts; awful online comments; and rude emails from those who opposed my candidacy. We chose not to respond in kind. They went low and my supporters went high.” In addition to routinely calling his employee a “bitch” “both verbally and in writing,” the official King County report found that Stober “made inappropriate and offensive statements about women,” “did state that Republicans could ‘suck his cock,'” and “more likely than not” referred to state Democratic Party chair Tina Podlodowski as “bitch, cunt, and ‘Waddles.'”

3. On Monday morning, Gov. Jay Inslee and Secretary of State Kim Wyman announced $1.2 million in funding for prepaid-postage ballots for the 2018 election. The only county that won’t receive state funding? King County, which funded postage-paid ballots for the 2018 elections, at a cost of $600,000, over Wyman’s objections last week. 

County council chairman Joe McDermott, a Democrat (the council is officially nonpartisan but includes de facto Democratic and Republican caucuses), says he was “really disappointed” that Inslee and Wyman decided to keep King County on the hook for paying for its own prepaid ballots, particularly given Wyman’s objection that the decision should be left up to the state legislature.

“She was against it before she was for it,” McDermott told me yesterday. Wyman’s office, McDermott says, “wasn’t working on the issue last year in the legislature, and yet all of a sudden she can find emergency money and appeal to the governor when King County takes the lead.”

In their announcement yesterday, Wyman and Inslee said they will “ask” the legislature to reimburse King County for the $600,000 it will spend on postage-paid ballots this year, but that funding is far from guaranteed. Still, McDermott says their decision to backfill funding for postage-paid ballots for Washington’s remaining 38 counties could set a precedent that will create pressure on legislators to take action next year. If the state believes it’s important to make it easier for people to vote in 2018, he says, “why would they argue that they’re not going to do it in the future? If it’s valuable this year, it should be valuable going forward.”

4. Dozens of waterfront condo owners spoke this afternoon against a proposed Local Improvement District, which has been in the works since the Greg Nickels administration, which many called an illegal tax on homeowners for the benefit of corporate landowners on the downtown waterfront. The one-time assessment, which homeowners could choose to pay over 20 years, is based on the increase in waterfront property values that the city anticipates will result from park and street improvements that the LID will pay for. Several homeowners who spoke this afternoon said they rarely or never visit the downtown waterfront despite living inside the LID assessment district, either because they live too far away (one condo owner said he lived on Fifth Avenue, and considered the hill leading down to the waterfront “too steep” to traverse) or because the waterfront is always clogged with tourists. Another, homeowner Jonathan Mark, said the city was failing to account for the decrease in property values that could result from “turning Alaskan Way into a freight highway.”

The median assessment on residential property owners, who own about 13 percent of the property that would be subject to the assessment, would be $2,379, according to the city’s Office of the Waterfront.

If you enjoy the work I do here at The C Is for Crank, please consider becoming a sustaining supporter of the site or making a one-time contribution! For just $5, $10, or $20 a month (or whatever you can give), you can help keep this site going, and help me continue to dedicate the many hours it takes to bring you stories like this one every week. This site is funded entirely by contributions from readers, which pay for the time I put into reporting and writing for this blog and on social media, as well as reporting-related and office expenses. Thank you for reading, and I’m truly grateful for your support.

Controversial Head Tax Passes After Weeks of Bruising Debate

After a weekend of negotiations between city council members and Mayor Jenny Durkan (and, according to council president Bruce Harrell, “conversations with Amazon, big business, small business, [and] homeless advocates”) the city council unanimously approved a new version of the controversial employee hours tax today, imposing a $275-per-employee tax on about 585 businesses with gross receipts of more than $20 million a year.  The $275 figure was a  “compromise” between the $500 tax passed out of committee last week by a slim majority of council members and the $250 tax proposed by Harrell and Durkan, which emphasized short-term shelter and garbage cleanup over permanent housing, and would have built just 250 new units of housing over five years. Durkan had threatened to veto the larger tax proposal, and as several council members noted on the dais this afternoon, the council majority was unable to convince one of their colleagues (such as council member Rob Johnson) to switch sides and give them a veto-proof majority. The $500 head tax proposal was the result of months of work by the city’s progressive revenue task force, which was appointed after a last year’s budget process and charged with coming up with a proposal to tax businesses to pay for homeless services and affordable housing. (Johnson, who was seen as a potential swing vote, cited the need for a process like the one the task force went through in voting against an early head tax proposal last year.) The task force issued their report in March.

The tax, which sunsets after five years (and which will no longer be replaced, as in previous versions of the legislation, with a business payroll tax), would raise about $47 million a year for new housing, rental subsidies, and supportive services. According to the spending plan the council also adopted this afternoon, that would be enough to build about 591 units of housing—288 for low-income people making between 30 and 60 percent of Seattle’s area median income and 303 permanent supportive housing units for formerly homeless people making between 0 and 30 percent of median. (The full spending plan is available here.) The plan also includes rental subsidies to get homeless people into “immediate housing,” funding for a total of about 250 new shelter beds and authorized encampments, more parking lots for people living in their cars, and sanitation facilities. The adopted spending plan, which allocates about two-thirds of the head tax revenues to housing, reverses the priorities in the spending plan proposed last week by Mayor Jenny Durkan and council president Bruce Harrell, which would have spent 70 percent of the revenues from the head tax in years 1 and 2 (and 60 percent in years 3 through 5) on short-term emergency shelter, garbage cleanup, and a new Navigation Team to coordinate the removal of unauthorized encampments and the people in them.

Prior to their vote for the tax, several council members expressed regret that they failed to come up with a compromise that could convince at least one of their colleagues to join them in a veto-proof majority in favor of a larger tax, such as the $350 compromise council member Lisa Herbold floated Friday. Council member Lorena Gonzalez, who was one of the co-chairs, along with Herbold, on the progressive revenue task force, said, “While I’m excited that we will be taking this vote… to reestablish a head tax… it’s regrettable that we were unable to find a path amongst our colleagues and with the mayor that they would be willing to support a higher taxation rate than $275.” Council member Mike O’Brien, who recently weathered hours of verbal abuse at an out-of-control forum on the head tax in Ballard, sounded grim as he conceded, “I’m settling for this level of service.”

Business leaders continued to grumble about the tax. The Downtown Seattle Association issued a statement decrying the tax as “bad economic policy [that] will negatively impact Seattle’s economy and city tax revenues,” and Amazon said in a statement that the “tax on jobs” makes the company “very apprehensive about the future created by the council’s hostile approach and rhetoric toward larger businesses, which forces us to question our growth here.”

The next battle for homeless advocates at city hall will be over the spending plan for the tax—a component of the plan that is in many ways more critical than the amount of money the tax produces. Durkan’s proposed spending plan, with its emphasis on emergency shelter, encampment removals, and tiny houses, would have largely backfilled spending on programs for which funding is about to run out (the plan contained a $15 million-$16 million annual line item to “continu[e] programs which had one-time funding in the 2018 budget, or insufficient funding, plus unspecified “new emergency, temporary, and enhanced shelters, navigation centers… and/or service and safe parking for vehicular living”), reducing the impact of the new revenues to whatever is left over once all the programs that are running out of money are funded. Although the council adopted the spending plan, that vote was narrow (5-4, along the same lines as Friday’s vote) and the actual implementation plan will have to be proposed by Durkan and adopted by the council as part of this year’s budget process.

Before the vote, council member Teresa Mosqueda said the new revenues from the head tax “are supposed to be in addition to” existing spending, not a replacement for it. Asked specifically about this concern at a press conference after the vote, Durkan pivoted to talking about the need to examine the council’s proposed spending plan itself, which she said would fund “a number of programs, such as shelter and supportive housing,” for which long-term funding is not secure. She did not answer the question about whether she would push for a spending plan that used new dollars to pay for existing funding commitments.

The insistence on funding existing shelter beds, from some of the four-member council minority as well as Mayor Durkan, is somewhat ironic. After all, it was the city council itself (with then-mayor Tim Burgess’ support) who adopted a spending plan for homeless service providers last year that eliminated funding for many basic shelters, on the grounds that they failed to demonstrate that they could move their clients into permanent housing quickly. The new standards for shelter providers, for example, withhold funding if those shelters fail to move 40 percent of their clients into housing within three months, a standard that few emergency shelters can meet, particularly those serving the clients who are hardest to house.

The emphasis in the Durkan/Harrell plan on funding shelters rather than housing also flies in the face of what virtually every expert, from the city’s homelessness consultant Barb Poppe to the city’s Human Services Department to a Seattle Metropolitan Chamber of Commerce-commissioned report to former All Home King County director Mark Putnam, which is that a solution to homelessness requires getting people into housing, not tents and “tiny houses” (which Putnam recently referred to as “glorified garden sheds.”) Asked why she supported a split that favored spending on shelters over housing, Durkan responded, “because I think the people of Seattle think that we’ve got to make a difference in homelessness tomorrow. We need to get  people off the streets and get them a safe place to live. None of this housing will come online for years.”

Mosqueda told me before the vote that she was “not interested” in a spending plan that funds temporary shelter “that evicts people in five years and fails to build the housing we need.” The problem in Seattle, Mosqueda argued, is not so much lack of mats on the floor as a lack of affordable housing, and providing more temporary shelter beds is only a “Band-Aid” that fails to address the larger affordability problem at the root of Seattle’s inability to move people from shelter to housing. In a memo released earlier today, Mosqueda staffer Michael Maddux wrote that in the Durkan/Harrell plan, “There does not seem to be increased capacity in funding to support short-term enhanced shelter, and with the draconian cuts to the housing component, no plan appears in place to provide permanent housing for people moved into the few new beds created (about 1,000) by the Mayor’s plan.”

One thing everyone on both sides agreed on is that homelessness is a regional, not a Seattle-only, problem. “Seattle can’t go it alone,” Durkan said during her press conference. “This is a regional crisis that demands a regional response.” That quote might have been lifted verbatim from any other number of press conferences by any number of Seattle officials, past or present. Seattle officials routinely implore “the region,” usually meaning King County, to step up and pay their fair share to address every challenging problem, whether it’s inadequate transit or inadequate funds for housing.  Whether that additional funding will materialize is uncertain. Durkan announced this morning that the state has come up with an additional $40 million for behavioral health services in 2018, and $18 million to $20 million a year after that, and that King County has said it will provide the city with $5.7 million to expand shelter and “safe alternatives for people living outdoors” in 2018. Little is currently known about what strings are attached to this funding or how it can be spent.

Beyond the $5.7 million announced this morning, the county has been parsimonious with its funding to address the crisis. (It did adopt a resolution today declaring May 14-20 “Affordable Housing Week” in King County,  “all county residents” are encouraged “to embrace affordable housing opportunities in their communities.”) Last week, King County Executive Dow Constantine suggested last week that the city needs to slow down and work on a regional approach through the massive “One Table” task force, which began meeting back in January. One Table was supposed to have finished up its meetings and announced its recommendations for a regional approach to addressing homelessness by now; instead, they have canceled their past two meetings and have been very quiet since April. One Table may ultimately come back with a recommendation for a countywide levy, or a sales tax to pay for housing and services (two of the only options available to local governments in Washington State), or it may not. Either way, Seattle is moving forward with what is at least an attempt to address the crisis of homelessness within its borders. Whether the scaled-back proposal adopted today makes a perceptible, measurable dent in homelessness, or whether it merely provides more fodder for anti-tax activists who insist that the city is wasting its money because the problem isn’t getting any better, will be clear soon enough.

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Employee Hours Tax Passes Over Durkan, Amazon Objections, But Veto Looms

This story originally appeared at Seattle magazine.

With the city council poised to pass a proposed $500-per-employee “head tax” on Seattle’s 600 largest businesses, and Mayor Jenny Durkan equally prepared to veto the proposal in its current form, the question now is: What’s next?

With council members heading into a weekend of negotiations, it’s possible that both sides could emerge on Monday with a compromise solution that splits the difference between the tax that passed on Friday and the “compromise” version that Durkan and council president Bruce Harrell support, which would cut the council’s proposal in half. However, if the two sides fail to reach a compromise, the larger version of the head tax will almost certainly pass on Monday by a 5-4 majority, which is one vote shy of the 6-3 margin supporters need to override a mayoral veto.

In a statement Friday afternoon, Durkan made it clear that she would veto the tax in its current form, but said she still held out hope that the council “will pass a bill that I can sign.” However, Durkan’s ally Harrell, also made it clear on Friday that he would not support a compromise floated by council member Lisa Herbold to lower the tax to $350 per employee, indicating that he and Durkan may not be open to a proposal that merely closes the gap between what Durkan and the council majority want. It’s possible, in other words, that when Durkan says “a bill that I can sign,” she merely means a bill that cuts the tax to $250 per employee—the amount Amazon, which has threatened to stop construction on its Seattle headquarters if the tax passes in its original form, has said they are willing to accept. Amazon contributed $350,000 to a pro-Durkan PAC in last year’s mayoral election.

A quick backgrounder on the tax: Last year, at the end of its annual budget process, the council formed a task force to come up with a progressive tax to pay for housing and services for Seattle’s homeless population. After several months of meetings, and numerous compromises in response to objections from small and low-margin businesses, the task force came up with a plan that would generate about $75 million a year—a $500-per-employee annual tax on businesses with gross revenues above $20 million, a threshold that excludes companies with high gross revenues but tight margins, such as restaurants. The proposal also came with a spending plan that emphasized long-term affordable housing over short-term emergency shelter services, and a provision that would convert the head tax into a business payroll tax starting in 2021, with no sunset date.

On Thursday night, Mayor Durkan released her own “compromise” head-tax proposal, which would cut the recommended head tax in half, to $250 per employee, ditch the provision transitioning the head tax into a business payroll tax, and sunset the whole thing in five years unless the council voted proactively to renew it. On Friday, Harrell introduced a proposal identical to the Durkan plan, along with a spending plan that emphasizes shelter over permanent housing and would pay for just 250 new rental units over five years. The Durkan/Harrell plan also includes a four percent wage increase for social service workers (many of whom make just over $15 an hour) and funding for a second Navigation Team to remove tent encampments and refer their residents to services.

When a council vote is 5 to 4 and a veto hangs in the balance, talk inevitably turns to “swing votes”—that is, who can be swayed to join the council majority to make the bill veto-proof?

Right now, it appears unlikely that anyone in the council’s four-person minority will budge over the weekend to support the full $500 tax, or even Lisa Herbold’s proffered $350 compromise, but a lot can change in the course of two days. So perhaps there will be a compromise that convinces one of the council members who opposes the larger tax to join the council majority. (The opposite scenario—that one of the five members who voted for the original $500 tax will join the four-member minority that wants to cut it in half—seems highly unlikely, since all five council members have consistently supported the proposal that came out of the task force, and since they stand to gain more, politically speaking, by forcing Durkan into a veto fight than by switching sides and handing the mayor a bloodless victory.)

However: If, as seems more likely as of Friday afternoon, the vote remains 5-4, the question becomes what will happen in the 30 days after Durkan vetoes it.

Judging from council members’ past positions and their comments Friday, the most likely “swing vote” when the decision comes down to passing something or doing nothing appears to be council member Rob Johnson, who seemed more tentative in his position than either Debora Juarez (“If we tax jobs to build houses and the jobs leave because of the tax, then no houses get built”) or Sally Bagshaw, who said virtually nothing at Friday’s meeting but is typically not the first council member to make dramatic vote switches.

Last year, when the council was debating whether to include the head tax in the budget, Johnson argued that proponents needed to come up with a more detailed spending plan to justify such a substantial tax. They did exactly that—and Johnson voted instead for a hastily sketched-out proposal that some council members didn’t see for the first time until this morning. On Friday, the most enthusiastic comment Johnson managed to muster about Durkan’s proposal was that it “allows for us to continue that pay-as-you-go process that has been a hallmark of most of the affordable housing investments that we’ve made as a city.”  If tax proponents are looking for a swing vote to help them override Durkan’s veto (and there is precedent for this kind of vote-switching), Johnson may be their best bet.

The council will be in discussions all this weekend, and will meet again on Monday morning to discuss the proposal (and any compromises reached over the next two days). A final vote on the head tax is scheduled for 2:00 Monday in council chambers.