OLYMPIA, Wash. (AP) — Reluctant state lawmakers are outlining a plan to provide a $42 million bailout package for a Wenatchee-area agency that’s nearing default on the city’s arena.
Republican Rep. Mike Armstrong said Wednesday that he hopes the bill will be able to pass before a key bond payment is due next week. Lawmakers are returning to Olympia on Monday.
Some state leaders fear that a default will have a ripple effect on the state. The plan proposed by the state treasurer and sponsored by Armstrong would not use state money. It would make the bond payment by using part of a cash buffer in an account that collects local sales and use taxes. Jurisdictions in the Wenatchee area would pay it back over time, perhaps with an increase in the sales tax there.