Today Gov. Inslee released his proposal to increase education spending in the 2017–19 biennial budget. Some of this proposed spending is related to the McCleary decision. According to the governor’s policy brief, the proposal “includes the final steps of addressing teacher compensation and ending the decades-long overreliance on local levies for basic education.” It throws in other stuff too; altogether, spending would increase by $3.851 billion.

The proposal would increase near general fund–state plus opportunity pathways (NGFS+) spending by:

• $2.413 billion for competitive wages for teachers and school staff. The proposal would create a new salary allocation model that focuses more on professional development milestones than degrees earned. (The McCleary deadline is Sept. 2018. It appears that the governor is proposing complying with the compensation requirements a year early.)
• $332.9 million for teacher training.
• $139.1 million to increase state-funded health benefits.
• $50.0 million for teacher mentoring.
• $23.3 million for other teacher and staff support and training.
• $485.1 million to complete the K–3 class size reduction that the Legislature has committed to complete for the next school year.
• $325.2 million for school counselors, nurses, psychologists, social workers, and family engagement coordinators.
• $49.6 million for the Learning Assistance Program.
• $6.9 million in other services for students to help close the opportunity gap.
• $26.1 million for programs that engage students, including career and technical funding.

The November budget outlook estimates that the Legislature will have $41.978 billion in resources for 2017–19, an increase of $2.815 billion over 2015–17. Nevertheless, Gov. Inslee also proposes increasing taxes by $4.4 billion over the biennium. According to the revenue fact sheet,

The vast majority of that will go toward ensuring sustainable full funding for education, significantly expanding community services for mental and behavioral health services, and supporting investments in homelessness, public health and other key priorities.

The Legislature has seen these tax proposals before, and some have previously been rejected by voters. The proposal would increase revenues by:

• $2.276 billion from increasing the B&O rate on services to 2.5 percent (from 1.5 percent).
• $1.069 billion from implementing a carbon tax.
• $821 million from implementing a capital gains tax.
• $91 million from applying the sales tax to vehicle trade-ins valued over $10,000.
• $59 million from applying the real estate excise tax to certain foreclosure sales.
• $57 million from applying the sales tax to bottled water.
• $52 million from applying the use tax to extracted fuel.
• $49 million from changing the nonresident sales tax exemption to a refund program.
• $12 million from extending economic nexus to retailing B&O activities.

The proposal would also reduce revenues by:

• $92 million from increasing the small business B&O tax credit threshold.
• $30 million from high-technology R&D tax incentives.
• $16 million from increasing the smoking age to 21.

The proposal also includes a version of the levy swap. [Update 12/14/16: According to the News Tribune, the state property tax would not increase, so this isn't really a swap.] Every school district would get more state money and local property tax levies would be reduced by a total of $250 million per year, and “more than three-fourths of households and businesses statewide would get a property tax cut.”

Finally, even given the additional revenues the state is already expecting and the newly proposed $4.4 billion, Gov. Inslee says that “it will be necessary to once again tap reserves.”

Stay tuned for tomorrow, when Gov. Inslee is expected to release his full 2017–19 budget proposal.