A MOTION directing legislative department staff to prepare a report, in consultation with all councilmembers and the executive branch that provides strategies for how King County can engage stakeholders in a public process to determine how to use proceeds from Sound Transit 3 in the Puget Sound taxpayer accountability account.
That's the plan for tonight. And with that, unless there's any comments by members, we will move right on into agenda item number five, which is an initial introduction to the newly formed Puget Sound Taxpayer Accountability Account. I think we are going to have a number of conversations about this, but we're going to kick this off tonight with Jeff, mom of our council staff, who will provide us a briefing on the state law that created the account and on the motion that we may take up hopefully later this evening. So welcome, Jeff. Look forward to your briefing. Thank you, Madam Chair. Go ahead. For the record, Jeff. Council staff. And so tonight's briefing on the Puget Sound Taxpayer Accountability Account, you'll find it on pages three and four of your packet. The Washington state legislature created the account in 2015 when it passed the state's transportation revenue package, and the account is to be funded by a sales tax offset fee of 3.25% and all sound transit three construction projects. So transit three projects are exempt from sales tax and the offset fee is equal to about half of the state sales tax. So transit will pay this quarterly, this fee quarterly. That's not me. I left my cell phone in the car until the until they they pay a total of $518 million initially. You expecting that to happen in 2035? It's also important to note that these that these funds are subject to appropriation by the legislature so they don't automatically come to the county. But in whatever budget vehicle, the legislature has the appropriate the funds and from now until presumably 2035 and then I included a chart on page four of your packet. This is a this is the preliminary estimates of how when the funds will start flowing into which counties. And you know as any as any forecast this will be inaccurate. But I wanted to show how lumpy the distributions are. You'll see that early on. It's in the early years, it's less than $10 million a year that will be coming to King County. And in some years, it's as much as 44 million. So it's really it's a it's a volatile source. It's based on sound transit's construction schedule. So if there's any delays or issues with this schedule, then the the funding amounts change. And, you know, that's based on logistical issues and also the economics behind the revenue streams. So the use of the funds state the state law is fairly broad regarding the use of the funds. It says that counties may use the funds for educational services to improve education outcomes in early learning in K-12 and higher education, including but not limited to for youths that are low income, homeless or in foster care or other vulnerable populations. So those are all voluntary, are all allowable uses. It's not those aren't exclusive uses, but it's basically the legislature giving examples of things that they wish the funds to be spent on. There is no appropriation for the of these funds in the current state 17, 18 or 1719 biennial budget. And we are doing some more legal analysis to see, you know, if these funds can be spent on capital and operating or that those types of examples, the work is still very preliminary. So that's the the the account in a nutshell and happy to answer any questions. Any questions for staff about how this customer benefit manager. This one definitely will come down to King County, because I was concerned that you said there's nothing in the current state. Second, 2017 2019 budget that indicates this money is available. It's for education. Why is it going to come to King County and how much potentially is the amount that might be available for educational purposes? In total, Councilmember Gossett, it is estimated that King County will receive over the next 17 years $315 million for educational purposes. The funds are the 580 million that is total is split among the counties based on the population that in the county that lives within the sound transit service area. So 61% of the sound transit district lives within King County. So King County will receive 61% of the funds over the that. It is $517 million. 518 518 million total. For the three county area. Correct. And we have the potential of receiving 60% of that. And are they specific as to what we can use it for in terms of education? Because I'm trying to figure out, is it primarily for poor and disadvantaged youth or what? The way I read the state law is that it's very broad, is for educational services to improve educational outcomes. And then the law goes on to say, including but not limited to specific populations, foster youth, low income youth in others. Finally, you know, you just mentioned that that to answer the first part of your question about why it's not in the 1719 budget, I presume because the if you look at the chart on page four, the funding amount is is in it. Well, significant to my family, but it's insignificant in in if you look at the the overall amount, it's a little bit over $360,000 might wind up in the account. All right. Thank you, Madam Chair. Thank you. Any other questions? I understand, Madam Chair, if I may, this was not your first staff report. This is your second staff report. But you didn't get hazed for your first one. So consider yourself. Hays Jaffe did a great job. Thank you. That's the same thing as I understand it. Put it on the right. I can do better than that. But do you have anything council. Member have to give? I am a lot. Yeah. Okay. I think the only thing I would add, just following up on Councilmember Goss, it's the question. And the answer is, is that just to be very clear, as it says on the chart, these are estimated projects, distribution. These are projections we're projecting based on when sound transit spends money by implementing the transportation projects in 83. If those are, as you said, delayed for any reason in S2, we had a retrenchment where the number of projects was cut back. That would have if that had happened with this, we would see different numbers. So we can't really we can't plan on something. I think that relies on these being the exact numbers, but it does give you in order a sense of magnitude and of how it ramps up kind of gradually and then becomes a very significant resource in outer years, like in the late 2020s and and on. Yes. So it's an estimate. It's also true that if certain transit were to speed up implementation of its program, when it would come in sooner. That that is. Possible. Thank you. I just wanted to make sure we were considering. The full range of options. I admire your optimism. Thank you. I share it in some sense, but we like to keep expectations down. Okay. So. Okay. You wanted to talk a little bit, Jeff, I gather, about the motion as well. Or do you wanna do that when when you have it in front of us? I prefer to do that when you have a attorney. Thank you. I will. In the in the along the vein of of hazing. Jeff wrote me some really nice chair remarks here that now say thank you, Jeff, for your. Excellent staff are. Just happy to be here today. So if there are no more questions for Jeff, let's move on. Thank you for that report. Okay. As I said, unfortunately, we have to move around just a little bit because of some of the schedules. But we now will go to our panel and I want to invite them to come down at this time.