Many Seattle voters are unaware that a special election is taking place next week (Tuesday, February 11 deadline to return your ballot if you lived in the city) where the progressives are seeking to increase taxes on Seattle employers to fund the expansion of yet another local housing bureaucracy – this time for the City of Seattle.

On the ballot will be Proposition 1A and Proposition 1B to determine how to fund the Seattle Social Housing Developer (SSHD). In 2023 voters approved the SSHD but did not establish a funding mechanism. “Social Housing” is a mixed use, government-owned housing that serves individuals earning 50% – 120% of Seattle-are median income (AMI). This currently equates to $52,700 to $126,480 in annual earnings.

Proposition 1A is supported by wealthy special interest groups (i.e. those who financially benefit from large housing bureaucracies). It seeks to increase the burdensome Jumpstart tax on companies who pay any employee above an arbitrary compensation figure to provide $50 million to the SSHD.

The current Seattle City Council, who were concerned the tax will force more employers to move their high-price talent elsewhere, placed Proposition 1B on the ballot as an alternative. It will take $10 million from current revenue (no new taxes) to fund the SSHD at a lower level.

Seattle voters are asked to decide two questions:

1. Should a funding source be established for social housing (“Should either of these measures be enacted into law?”)
2. How should it be funded (“Regardless of whether you voted yes or no above, if one of these measures is enacted, which one should it be?”)

(Please note, no matter if you voted “yes” or “no” on the first question, you should also answer the second question on funding source/amount.)

Here is a quick synopsis of the two measures.

Proposition 1A

• Increase taxes by $50 million a year.
• Tax on companies who employ individuals who earn more than a particular salary.
• Provide taxpayer-subsidized “social housing” for those with annual income up to $126,480 (i.e. 120% of Seattle AMI).
• Financially supported by wealthy progressives and those who benefit from large government housing efforts (such as Low Income Housing Institute and government employee unions).

Proposition 1B

• Takes $10 million a year from existing “Jumpstart” payroll tax.
• No more than 5% can be used for administrative costs.
• Jumpstart tax (tax on Seattle employers) was created in 2020 to fund such projects but this would be an additional or increased tax?
• Provide taxpayer-subsidized “social housing” for those with annual income up to $84,320 (i.e. 80% of AMI).
• Placed on ballot as an anti-tax alternative to Prop 1A by the current Seattle City Council and supported by the Seattle Metropolitan Chamber of Commerce and local employers.

Plainly stated. Proposition 1A is supported by those who ignore the disaster the region’s housing bureaucracy has created in Seattle. Record homelessness, the loss of more than 8,000 rental units since 2020, and one of the highest costs of housing in the country, are the results of previous big bureaucracy policies.

Why should voters support funding housing bureaucracies when their efforts have resulted in more people suffering on the streets and more people unable to afford to live in Seattle?

The alternative measure (Proposition 1B) seeks to reduce the cost of funding SSHD. Not only does it reduce the bloated budget from $50 million down to $10 million, but it also eliminates the eligibility of many wealthier people who can afford housing and limits administrative costs to just 5%. These additions ensure taxpayer money is not wasted further on bureaucratic greed.

This election will set a precedent for future housing efforts.  If voters support a funding source for SSHD and approve its extravagant $50 million budget (i.e. by voting “yes” on first question and then supporting Proposition 1A), the region’s housing bureaucracy will continue their same expensive and ineffective methods that has led to a 63% increase in homelessness.

Yet if the voters chose to vote “No” on the funding, and then select option 1B, it will be a strong message that taxpayers are fed up with broken promises and expensive, bad results  on the city’s homelessness issues.

Make sure your voice is heard. City of Seattle voters should have their ballots for this special election please contact King County Elections if your ballot is lost or if you have a question. Here is a list/map of ballot drop box locations.