2014/12/24 Council Agenda Packet

• crit _ tea Strong Cities ova, � ` Great State_ Maintain Et Restore Shared Revenue r Maintain Shared Revenue AWC Position Restore Local Liquor State collected revenues distributed to local Maintaining shared revenues and opposing any Revenue Sharing governments are the product of decades of past further cuts remains a key priority for cities and decisions. Without the promise of this revenue, towns. We are to working with the state and Liquor revenues have been shared with cities and cities would have sought local options and exploring ways to ensure that this funding remains counties for over 70 years because the impacts authorities. Instead, cities have come to rely on available. AWC will continue to seek restoration of alcohol consumption increase public safety these state funds. of diverted liquor taxes and removal of the cap on and health costs at the local level. When voters liquor profits. approved liquor privatization through Initiative • For the 2013-15 biennium, cities receive more 1183, they also approved increased revenue for local than $150 million in liquor revenue, Streamlined governments to fund public safety. This promise Sales Tax (SST) mitigation, municipal criminal of enhanced public safety funding has not been justice, and city-county assistance. Local government revenue capped; honored. state gets windfall from privatization •The Legislature took over$130 million of shared Cities and counties receive two types of liquor revenues over the last two biennia to help 5 year estimated liquor revenue distributions: revenue: liquor profits and liquor taxes. balance their general fund budget. State fiscal years 2013-2017 • Liquor board profits are revenues from license •Majority of the funding came from the local 4-$197.6M fees and permits. Historically, the profits were share of liquor revenue. ,.. shared: 50% to the state, 40% to cities, and 10% •Smaller cuts were made to SST Mitigation, to counties. Legislation enacted in 2012 capped local liquor profits at 2011 dollar amounts, and, Municipal Criminal Justice, and City-County -$1 y 7.6M if not remedied, cities and counties will receive Assistance (6050) accounts. $49.4 million annually in future years. The revenue local government share will no longer grow, diverted and any additional profits generated by liquor $641.4M from locals $321.8M to state privatization will go to the state general fund. Projected state Projected city Et • Liquor excise taxes come from a state tax to distributions county distributions consumers and restaurant licensees. Revenues from the basic rates of 15% for consumers and 10% for restaurants are shared: 65% to the state, 28%to cities, and 7% to counties. On the last day of the 2012 legislative session, Legislators AWC Contacts approved ESHB 2823, which permanently redirected $10 million annually of the local Victoria Lincoln, victoriat@awcnet.org government share - essentially negating Serena Dolly, serenad@awcnet.org the $10 million for public safety that the w initiative provided. V U-1 O 11/10/14 November 2014 Association of Washington Cities • 1076 Franklin St SE, Olympia, WA 98501 • awcnet.org • 360.753.4137 • 1.800.562.0149