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💰 Follow the Money

The $3.65 Billion Funding Loop

Who's Really Behind the WA Income Tax Push

Two nonprofit directors wrote an op-ed in The Olympian arguing Washington's income tax would solve homelessness and help working families. They forgot to mention their organizations belong to a coalition that received $3.65 billion in direct state payments.

$3.65B
State Payments to Coalition Members
From fiscal.wa.gov — last 3.5 years
80+
Organizations in BOTC Coalition
Unions, NGOs, government agencies
$527M
Housing Trust Fund — 2024 Budget
Secured with WLIHA lobbying
23%
Homeless Population Increase
King County 2022–2024 despite billions spent

The Data Doesn't Support Their Case

Washington has been running a taxpayer-funded housing experiment at scale for a decade. Here's what the data actually shows.

16,385
King County 2024 homeless count — up 23% in 2 years despite billions spent
King County 2024 Point-in-Time Count
+27.6%
WA overdose deaths in 2023 — while the national rate fell 3%
CDC / WA DOH
200,000+
Permanent Supportive Housing units built nationally since 2013. Street homelessness? Up ~25%.
HUD Annual Reports
$270K
Per unit — just to acquire buildings. King County's Health Through Housing spent $370M on 15 hotels (1,366 units) before a dollar of rehab or services.
King County Health Through Housing

🔬 What the Research Actually Says

The UCLA California Policy Lab found 78% of unsheltered homeless report mental health conditions and 50% suffer from a combination of physical illness, mental illness, and substance abuse — suggesting addiction and mental illness are a much bigger contributor to living on the street than lack of housing.

The Bottom Line on Housing First

By nearly every metric, the Housing First model has been a colossal failure and a mismanagement of taxpayer dollars. But the organizations asking for more money designed this approach. It failed by their own metrics. They have no financial incentive to see it succeed.

Who Wrote the Op-Ed?

Both authors run organizations with direct financial interests in passing the income tax.

Rachael Myers

Executive Director — WA Low Income Housing Alliance (WLIHA)

WLIHA lobbies the Legislature to increase the budget of the taxpayer-funded Housing Trust Fund. WLIHA helped secure $527M in the 2024 Capital Budget for the HTF.

State Commerce Dept administers the HTF and distributes grants. WLIHA's own members — Bellwether, Plymouth, DESC, Mercy Housing, YouthCare, HDC — are primary recipients of those grants.

Members pay dues to WLIHA → funds Myers's ~$136K salary.

2026 Priority: Pass income tax

Emma Scalzo

Executive Director — Balance Our Tax Code (BOTC)

BOTC's own footer: "PAID FOR BY BALANCE OUR TAX CODE" — a political expenditure campaign, not a charity.

From Scalzo's BOTC bio: she's ready to "play the world's tiniest violin for all Washington's billionaires."

She is the paid director of the income tax campaign and a lobbyist for BOTC.

Lobbyist & Campaign Director

How Taxpayer Money Funds Its Own Expansion

Follow the money in a circle.

1

WLIHA lobbies the Legislature

Push to increase the Housing Trust Fund budget

2

Legislature appropriates $527M

2024 Capital Budget for the Housing Trust Fund — secured with WLIHA lobbying

3

State Commerce Dept distributes grants

HTF funds flow to housing nonprofits across the state

4

WLIHA members receive the grants

Bellwether, Plymouth, DESC, Mercy Housing, YouthCare, HDC — the primary recipients

5

Members pay dues back to WLIHA

Funds Myers's ~$136K salary and WLIHA's lobbying operations

6

WLIHA's 2026 priority: pass the income tax

More tax revenue → bigger Housing Trust Fund → more grants → more dues → more lobbying

↩ BACK TO STEP 1 — THE LOOP REPEATS

🏛️ Government Agencies in the Loop

Among WLIHA's dues-paying members are government agencies: the City of Olympia, the City of Seattle's Office of Housing, the City of Everett, King County Housing Authority, and the Housing Authority of Okanogan County.

These are not private advocates. They are public agencies funded by taxpayer dollars — paying membership dues to a nonprofit lobbying organization whose explicit 2026 priority is passing new state taxes. Washington taxpayers are funding the campaign to raise their own taxes — with a nonprofit in the middle so nobody has to call it what it is.

BOTC Stopped Filing When It Mattered Most

WA law requires lobbying employers to file annual expense reports. BOTC stopped filing exactly when their income tax advocacy went into high gear.

YearPDC Lobbying Filing
2021$3,000
2022$11,200
2023$2,700
2024NO FILING ⚠️
2025NO FILING ⚠️

Source: WA Public Disclosure Commission (PDC)

$3.65 Billion in State Payments

BOTC represents 80+ organizations. According to the Washington State Open Checkbook (fiscal.wa.gov), identified member organizations received these direct state payments over the last 3.5 years.

OrganizationState Payments (3.5 yrs)
Community Health Plan of WA$3,582,390,846
Habitat for Humanity (WA chapters)$17,512,330
YWCA (WA chapters)$14,003,699
Front and Centered$5,807,828
YouthCare$5,443,550
Food Lifeline$4,809,287
OneAmerica$4,439,854
Building Changes$3,372,365
Northwest Harvest$2,474,070
Stand for Children$2,122,665
+ 8 more identified members~$9,000,000
CONFIRMED TOTAL$3,652,138,725

Source: fiscal.wa.gov — WA State Open Checkbook

🏥 The Anchor: Community Health Plan of Washington

A Medicaid managed care organization with $1.64B annual revenue — almost entirely Apple Health state/federal payments. CEO Leanne Berge: $1,021,846 compensation.

A BOTC member funded by taxpayer dollars, using taxpayer dollars to advocate for income tax revenue that will expand programs generating more revenue for themselves.

The Unions and Their War Chests

WEA (Teachers Union)
Funded from $6.5B/yr in taxpayer-provided teacher salaries. Spent $448K against I-2109.
SEIU 775
Employee wages funded from $1B+ state long-term care Medicaid budget. Spent $432K against I-2109.
WFSE (State Workers)
$3B+/yr state payroll. Spent $500K against I-2109.
Housing Trust Fund
$527M last biennium flowing to WLIHA's member nonprofits.
The Pattern

This coalition represents wealthy public unions and politically connected NGOs already taking enormous sums of money from taxpayers — and using it to push an unconstitutional income tax.

What They Spent Against I-2109

WFSE
$500K
WEA
$448K
SEIU 775
$432K

All three funded by taxpayer dollars — spent against taxpayer-backed initiatives

They're Not Fighting for Washington Families.

They're Defending Their Funding Model.

A coalition that received $3.65 billion in taxpayer money is lobbying for an income tax that would expand the very programs paying their salaries. Housing First failed by their own metrics. The money keeps flowing anyway. And they want more.

A very expensive, not-so-small violin.

Take Action at LetsGoWashington.com →

Based on research by Brian Heywood. All financial figures sourced from fiscal.wa.gov (WA State Open Checkbook), pdc.wa.gov (Public Disclosure Commission), King County reports, and public records. Original article: @bkheywood on X.