Hawkins’ Workforce Housing Bill Sees Opposition from Washington’s Ports

Chelan Douglas Regional Port commissioners discussed state Senator Brad Hawkins' workforce housing bill during a recent meeting.

Senate Bill 5868 would allow workforce housing in the Chelan and Leavenworth areas to be paid for with state sales tax dollars that are sent back to the counties for economic development. While the state sales tax is 6.5%, it remits 0.9% of each county's share to go to projects for things like water, sewer and roadways.

Port CEO Jim Kuntz said the worry is that by allowing economic development money to go to workforce housing, the overall pot could get diluted so much that it's no longer effective.

"Originally, the target was hotel/motel tax receipts." Kuntz said, "My understand is there was too much push-back on that source of funds. So they decided they would go after sales tax funds."

Kuntz added that the tax dollars only generate about $2.5 million per year in Chelan County.

The legislation cleared the House of Representatives 68-28 on March 2nd with a slight revision. It will next head to the Senate, where it previously passed with the original language.

The Washington Public Ports Association recently testified against the bill.