Republican Washington state Reps. Travis Couture, Jim Walsh and Matt Marshall issued a warning Friday after House Democrats advanced a controversial plan that redirects billions from the Law Enforcement Officers' and Firefighters' (LEOFF) Plan 1 pension surplus to help close a state budget gap and shift more than $500 million into a separate climate account, according to a news release from the lawmakers.
"When you strip away the legislative jargon, this is a $4 billion grab from the retirement security of our first responders," Couture, R-Allyn, said. "By scuttling over half a billion dollars into a climate account while ignoring our proposed affordability budget, the majority is choosing a shell game over the needs of working Washingtonians and retirees."
The bill's passage comes despite record state revenues and a tax increase passed during the previous session, the lawmakers noted.
Republican leaders say the maneuver sets a dangerous precedent for every other public pension fund in Washington.
"For years, raiding this pension was considered a 'third rail' because it's fiscally reckless and fundamentally wrong," said Walsh, R-Aberdeen. "Washington used to pride itself on well-funded pensions, but this move signals a shift toward the same mismanagement we see in states like Illinois or New York."
The legislation now heads to the Senate, where it is already scheduled for a public hearing.
"The majority has spent themselves into a hole and is now asking retired police and firefighters to dig them out," said Marshall, R-Eatonville. "Instead of prioritizing our paramount duties like education, they are dumping these funds into a climate program that already has its own revenue streams. This money should be off-limits, period."
The news release from the representatives highlighted four major “red flags”:
• The state is taking money meant for the retirement of police and firefighters to fix a budget hole.
• Over $500 million of the money is being shifted into the Climate Commitment Act (CCA) account.
• Using "one-time" pension money to cover ongoing, permanent state expenses.
• Preliminary research suggests no other state has attempted a raid of this scale, according to the release. This could trigger federal IRS violations, putting the tax-exempt status of the entire pension system at risk, the lawmakers claimed.
House Bill 2034 is now moving through the Senate. It is scheduled for a public hearing in the Senate Committee on Ways & Means on Feb. 26 at 1:30 p.m.
Those interested in weighing in can submit written testimony at https://tinyurl.com/354are5p or contact their lawmakers at https://app.leg.wa.gov/pbc/bill/2034.
