The proposal would increase policy level spending by $2.4 billion near general fund-state plus opportunity pathways. Given those increases and the maintenance level costs (the costs of continuing current services), the summary estimates that there is a $5.1 billion problem for the biennium. (I-1351 class size reduction and I-732 COLAs are included in maintenance level.)
State officials say we actually gain more in state and local tax dollars than we give up through tax breaks. Still, since the tax break extension passed, Boeing’s headcount in the state has shrunk by 3,000 jobs. But, since the tax breaks were first created in 2003, the company has added more than 25,000 jobs in the state.
State lawmakers may increase the age when new public employees can retire with full pension benefits, and cap the amount of income used to calculate future public employees’ pension checks. The separate proposals are part of a push by some Republican lawmakers to reduce the state’s long-term public pension liabilities.