Fiscal Home Rule for Tacoma: Revisited

Last month the City Council considered a draft Legislative Policy Statement for the City of Tacoma for 2015 through 2016. The document included some changes positioning the City in favor of fiscal home rule for cities. The proposal from staff drew a fair amount of Council comment, including concerns over implications of the position, and potential unintended consequences not yet explored. This week the Council is scheduled to adopt a resolution adopting the Policy Statement, which still includes support for fiscal home rule, but with some changes making the language a little less aggressive, and a little more open to collaboration.

When presenting the draft to Council at study session, staff described the original proposed changes as intended to start a conversation with the state over options for cities to have more control over revenue streams.

They definitely started the conversation for the Council - a conversation that will continue with a resolution on the agenda for this week's regular Council meeting adopting the legislative policy agenda. The draft attached to this week's agenda shows a few changes since last month's discussion.

The September draft included an offer to forgo some revenue from state shared funds in exchange for greater authority for cities in other areas.

... It has also become more difficult for the State to continue its historic role of providing shared revenue to local government. The combination of these challenges requires changes in the relationship between the State and cities.

The City believes the best way for both the State and local government to be able to address revenue needs and properly structure basic services to meet the unique needs of each city is to establish fiscal home rule as an option for the cities that are willing and able to utilize it. In return for being granted the increased flexibilitv to raise revenue and spend what is collected as local elected officials determine. a city would agree to forgo receiving any further shared operating budget revenue from the State. Transportation shared revenue and grant programs and capital budget member requests and grant programs are not included in the fiscal home rule equation.

The City supports establishment of fiscal home rule for cities in return for ending receipt of certain operating budget shared revenue.

The latest draft backs off a bit on the specifics, including dropping the explicit offer to forgo shared revenue.

... It has also become more difficult for the State to continue its historic role of providing shared revenue to local government. The combination of these challenges requires the exploration of changes in the relationship between the State and cities. These changes may include greater levels of fiscal home rule including removal of restrictions on local revenues, an end to all state shared revenue, restructuring of the distribution of State and local taxes, establishment of new taxing authority, or other ideas or some combination of ideas. 

The City supports fiscal home rule and will work with the State and other stakeholders to develop more sustainable funding to allow both levels of government to carry out their distinct service responsibilities.

We'll see where this goes...

Previously from Exit133: Fiscal Home Rule for Tacoma?/articles/view/fiscal-home-rule-for-tacoma