The below letter ran in this Sunday's joint Seattle Time/PI.

Invest the extra in a housing program
Chris McGann's Monday article, "State lawmakers to face surplus, urge to splurge," was an interesting look at the state's new fiscal outlook, but missed an important angle. Where did the money come from?

According to the Washington State Revenue Forecast Council, nearly 30 percent of the state's new revenue comes from real estate excise tax payments. The housing boom "accounts for well over half of the total change when the indirect impact of the strong housing market on spending on real estate related taxable sales is included" (W.S.R.F.C., September 2005). At the same time, more than 750,000 Washington households do not have a decent, safe and affordable place to live. It is only fair that the surplus (which was created by an unaffordable real estate market) go back to the people that the market has left behind.

The state should do the right thing with this money by investing in underfunded housing programs (such as the Housing Trust Fund, which is responsible for more than $420 million in new and improved housing since 1989). The rising land and construction prices that brought the state this surplus have a side effect -- many individuals and families cannot find a decent, safe and affordable place to live. The state has an opportunity, and a responsibility, to use some portion of this new money to help those that the market has left behind and make sure all Washingtonians have a place to call home.

Ben Gitenstein
State legislative chairman
Washington Low-Income
Housing Alliance